Category: bitcoin

Bitcoin’s move may have been exacerbated by a large bitcoin holder, or “whale,” who transferred more than 4,000 bitcoin to the Bitfinex exchange late Monday night. Data from CryptoQuant shows a spike in that exchange’s reserves — which typically signals a boost in selling activity — that coincides with the sudden drop in bitcoin price late Monday night. Stocks tied to the performance of bitcoin were dragged down but traded off their lows to end the day.

Although Wen was living in a flat above a Chinese restaurant in Leeds when she became involved in the criminal activity, her new lifestyle saw her move into a six-bedroom house in north London in 2017 which was rented for more than $21,000 per month. She posed as an employee of an international jewelry business and moved her son to the UK to attend private school, the Crown Prosecution Service (CPS) said. That same year, Wen tried to buy a string of expensive houses in London, but struggled to pass money-laundering checks and her claims she had earned millions legitimately mining Bitcoin were not believed. She later travelled abroad, buying jewelry worth tens of thousands of pounds in Zurich, and purchasing properties in Dubai in 2019.

Another suspect is thought to be behind the fraud but they remain at large. The Met said it carried out a large scale investigation as part of the case – searching several addresses, reviewing 48 electronic devices, and examining thousands of digital files including many which were translated from Mandarin. The CPS has obtained a freezing order from the High Court, while it carries out a civil recovery investigation that could lead to the forfeiture of the Bitcoin. The value of the Bitcoin was worth around $2.5 billion at the time of initial estimates — but due to the fluctuation in the currency’s value, it has since increased to around $4.3 billion.

The Nigerian government has accused Binance of exacerbating the country’s foreign exchange challenges through rate manipulation for profit. The authorities have also accused the crypto exchange of illegal operations and have restricted access to the company’s website. There are also reports that Nigeria sought a $10 billion penalty from Binance for processing around $26 billion in untraceable funds in the country. […] The reason why and how Nigeria’s economic crisis is linked with Binance is yet to be found out. Binance is hoping to resolve the matter soon, according to CoinDesk. The report notes that Nigeria is experiencing its worst economic crisis in recent years due to inflation and the devaluation of their currency, the naira.

Harrison, who at the time was a freelance television presenter engaged in unpaid football commentary, said he had been approached and offered the HyperVerse work by a friend of a friend. He said he was new to the industry and had been open to picking up more work and experience as a corporate “presenter.” “I was told I was acting out a role to represent the business and many people do this,” Harrison said. He said he trusted his agent and accepted that. After reading through the scripts he said he was initially suspicious about the company he was hired to represent because he was unfamiliar with the crypto industry, but said he had been reassured by his agent that the company was legitimate. He said he had also done some of his own online research into the organization and found articles about the Australian blockchain entrepreneur and HyperTech chairman Sam Lee. “I went away and I actually looked at the company because I was concerned that it could be a scam,” Harrison said. “So I looked online a bit and everything seemed OK, so I rolled with it.” The HyperVerse crypto scheme was promoted by Lee and his business partner Ryan Xu, both of which were founders of the collapsed Australian bitcoin company Blockchain Global. “Blockchain Global owes creditors $58 million and its liquidator has referred Xu and Lee to the Australian Securities and Investments Commission for alleged possible breaches of the Corporations Act,” reports The Guardian. “Asic has said it does not intend to take action at this time.”

Rodney Burton, known as “Bitcoin Rodney,” was arrested and charged in the U.S on Monday for his alleged role in promoting the HyperVerse crypto scheme. The IRS alleges Burton was “part of a network that made ‘fraudulent’ presentations claiming high returns for investors based on crypto-mining operations that did not exist,” reports The Guardian.

Worldcoin pulled in $100 million from investors last year through a token sale that valued the company at around $3 billion, according to a report by The Information from March 2022. That fundraising effort came before a bruising period for crypto in which flagship tokens like bitcoin and ether cratered in price and high-profile companies including Bankman-Fried’s FTX collapsed. “It’s a bear market, a crypto winter. It’s remarkable for a project in this space to get this amount of investment,” one of the FT’s sources told the publication.

Despite Bittrex’s impending exit from the U.S., the SEC sued it in mid-April on allegations it operated a national securities exchange, broker and clearing agency. The SEC also sued former Bittrex CEO Bill Shihara and Bittrex Global. Bittrex Global CEO Oliver Linch said last month that the exchange intended to fight these charges in court, but a bankruptcy proceeding may make this more difficult.

In an earlier CoinDesk article, an executive at Luxor Technologies, a full-stack Bitcoin mining pool, blamed the rising fees on the adoption of the new BRC-20 token standard, a new way to “inscribe” additional data during transactions.

But meanwhile, an anonymous reader shared another report from Mashable about Binance:

Bloomberg reported that the crypto exchange (currently the world’s largest) is facing a U.S. Department of Justice probe over possibly allowing Russians to move money in a way that would violate U.S. sanctions… It’s worth noting that no formal accusation has been made against Binance, as this is just a probe. It may be some time before accusations manifest — if they manifest at all. In 2021, Binance was under a similar investigation related to possible money laundering.
But another Reuters article adds that Bloomberg’s sources “also said that Binance is discussing the possibility of settling with the Department of Justice regarding previous allegations that the exchange was also used to move money to circumvent U.S. sanctions against Iran.”
And elsewhere, Reuters reports:
Israel has seized around 190 crypto accounts at crypto exchange Binance since 2021 , including two it said were linked to Islamic State and dozens of others it said were owned by Palestinian firms connected to the Islamist Hamas group, documents released by the country’s counter-terror authorities show…
In a blog post after its publication, Binance said that Reuters was “deliberately leaving out critical facts.” The exchange has been “working closely with international counter-terrorism authorities” on the seizures, Binance said. “With regard to the specific organizations mentioned in the article, it’s important to clarify that bad actors don’t register accounts under the names of their criminal enterprises,” it said…
Under Israeli law, the country’s defense minister can order the seizure and confiscation of assets that the ministry deems related to terrorism… The seizures by Israel’s National Bureau for Counter Terror Financing highlight how governments are targeting crypto companies in their efforts to prevent illegal activity. Binance, founded in 2017 by CEO Changpeng Zhao, says on its website it reviews information requests from governments and law enforcement agencies on a case-by-case basis, disclosing information as legally required.

Binance has also said it checks users for connections to terrorism and has “continued to invest tremendous resources to enhance its compliance program,” it told U.S. senators in March in response to their requests for information on Binance’s regulatory compliance and finances.

Crypto mining has “negative spillovers on the environment,” the White House continued, and the pollution it generates “falls disproportionately on low-income neighborhoods and communities of color.” It added that the operations’ “often volatile power consumption ” can raise electricity prices for the people around them and cause service interruptions. Further, local power companies are taking a risk if they decide to upgrade their equipment to make their service more stable, since miners can easily move away to another location, even abroad. As Yahoo News noted, there are other industries, such as steel manufacturing, that also use large amounts of electricity but aren’t taxed for their energy consumption. In its post, the administration said that cryptomining “does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity.”

Critics believe that the government made this proposal to go after and harm an industry it doesn’t support. A Forbes report also suggested that DAME may not be the best solution for the issue, and that taxing the industry’s greenhouse gas emissions might be a better alternative. That could encourage mining firms not just to minimize energy use, but also to find cleaner sources of power. It might be difficult to convince the administration to go down that route, though: In its blog post, it said that the “environmental impacts of cryptomining exist even when miners use existing clean power.” Apparently, mining operations in communities with hydropower have been observed to reduce the amount of clean power available for use by others. That leads to higher prices and to even higher consumption of electricity from non-clean sources. “If the proposal ever becomes a law, the government would impose the excise tax in phases,” adds Engadget. “It would start by adding a 10 percent tax on miners’ electricity use in the first year, 20 percent in the second and then 30 percent from the third year onwards.”

The events surrounding Thodex had created a stir in Turkey where crypto has been used as a hedge against inflation. Ozer’s brother, sister and four other senior employees were jailed, and at least 83 people were detained as part of the investigation.

Coinbase described the investigation as “cursory,” and said the Wells notice provided relatively little information about potential violations. “Although we don’t take this development lightly, we are very confident in the way we run our business — the same business we presented to the SEC in order for us to become a public company in 2021,” Coinbase Chief Legal Officer Paul Grewal said in a blog post. The company said that until the resolution of any legal processes, the exchange’s offerings would continue to operate as usual.