Crypto Guides, Knowledge & Insights

Latest Update: Do Kwon's Maximum Sentence in the US Exceeds 100 Years

Do Kwon, the CEO of Terraform, an open-source software development company, was captured in Montenegro and is facing eight felony counts, including investor fraud, securities fraud, mail fraud, and commodity fraud. US and South Korean officials have attempted to transfer him to their respective countries for prosecution.The Disparity In The Maximum Jail Sentence　　According to Chinese crypto journalist Colin Wu, there is a significant disparity in the maximum jail sentence between the United States and South Korea. Wu stated, “When the punishments for the numerous offenses that Kwon must face in the United States are put together, Kwons maximum penalty in the United States can be more than 100 years, whereas the maximum sentence in Korea is only about 40 years.”Sam Bankman-Frieds Comparable Punishment　　Former FTX CEO Sam Bankman-Fried could face a comparable, if not harsher, punishment. Sam is accused of up to 13 separate crimes, and if convicted of all of them, he could face a sentence of more than a century in jail. Sam recently pleaded not guilty to a number of fraud accusations leveled against him in court.Do Kwons Defense Attorney　　Does Kwon have his own defense attorney？ Kwons counsel had earlier claimed in his clients defense that his business

2023-04-05Deep Dive

FTX EU LTD Begins Fund Return Process, Subject to Anti-Money Laundering Checks

The Cyprus Securities and Exchange Commission (CySEC) has issued a statement in response to the recent announcement by FTX EU LTD, the Cypriot unit of the failed cryptocurrency exchange FTX, regarding the return of funds to its customers. FTX EU LTD, previously known as K-DNA Financial Services LTD, stated that it has initiated a process to allow customers to request their final balances and withdraw their fiat funds from the companys segregated client accounts.Withdrawal Process and Anti-Money Laundering Checks　　Customers who wish to withdraw their funds from FTX EU LTD will need to verify their balances and submit withdrawal requests through a dedicated website, ftxeurope.eu, according to the exchanges announcement. However, the withdrawals will be subject to standard anti-money laundering and know-your-customer checks, and there may be delays if account details have not been properly verified.CySEC Chairman Approves FTX EUs Move　　CySEC head George Theocharides has authorized FTX EU LTDs relocation, verifying earlier claims that CySEC had allowed the debut of FTXs new website. CySEC, according to Theocharides, is taking measures to safeguard the interests of FTX EU owners and is working closely with the parent companys liquidators in the United States under Chapter 11.　　“After months of uncertainty and concern for investors,

2023-04-05Deep Dive

Chinese Central Banker Urges Enhanced Regulation for Cryptocurrency Risks

A senior official from the Peoples Bank of China (PBOC), Xuan Changneng, has cautioned regulators to carefully consider the risks and fraud associated with cryptocurrencies and their potential impact on bank failures when formulating regulatory frameworks. Speaking at the Boao Forum, Changneng referenced the recent collapses of two crypto-friendly banks in the United States, Signature Bank, and Silvergate Bank, as examples of the potential risks involved in providing services to cryptocurrency customers. He emphasized that regulators should respect established rules while innovating regulations to ensure that financial stability is not compromised.Need for Upgraded Regulation Philosophy, Technology, and Capability　　Changneng stressed that the regulation philosophy, technology, and capability of regulators need to be upgraded to ensure that financial innovation does not come at the cost of financial stability. While acknowledging the need for room for innovation, he highlighted the importance of verifying and confirming the applicability of new technologies to various financial models and products, rather than simply accepting or approving them. This implies a cautious approach toward embracing new technologies in the financial sector to prevent potential risks and failures.Importance of Chinese Governments Participation in International Cooperation　　Liao Min, Chinas Vice Minister of Finance and Deputy Director of the Office of the

2023-04-05Deep Dive

Paxful Shuts Down Crypto Exchange; CEO Says “Not Sure If It Will Come Back”

Founder and CEO of Paxful, Ray Youssef, announced on the companys official website that they will be suspending their peer-to-peer cryptocurrency exchange. Paxful is known to be one of the largest P2P crypto exchanges worldwide in terms of trading volume. Youssef cited regulatory challenges in the industry and the departure of key staff members as the reasons behind the decision.　　Here is some Paxfuls information at WikiBIT: 　　　　　　Paxful Suspends Trading Operations　　According to Ray Youssef, the CEO and founder of Paxful, the company will be suspending its marketplace operations due to the departure of key staff members and regulatory challenges in the industry. Despite this, Youssef assures customers that their funds are safe, and they can still withdraw using their Paxful Wallet, which will continue to function normally. Paxful is also offering easy migration options for non-US customers, including Noones, a new P2P exchange for the Global South, and Bitnob, which connects African citizens with Bitcoin.　　In regard to the service suspension, Youssef emphasized that safeguarding customer funds is his top priority, and the Paxful Wallet will remain available for customers to retrieve their funds.　　Growing Crypto Crackdowns　　Paxfuls decision to suspend its operations has raised concerns about the increasing scrutiny of cryptocurrency businesses by

2023-04-05Deep Dive

Coin ATM Radar Reports Decrease in Global Crypto ATM Numbers

Coin ATM Radar, a gathering website for automated teller machines (ATMs) that accept cryptocurrencies, reports a recent decline in the number of crypto ATMs globally. Over 3,600 crypto ATMs went inactive in March alone, a decline of 13.91% in the total number of crypto ATMs since the end of 2022. By the end of 2022, 39,179 crypto ATMs were operational worldwide.　　The decrease in crypto ATMs has been happening in stages; the first notable loss was 399 crypto ATMs going inactive in September 2022. The second major loss occurred in January when 1,587 cryptocurrency ATMs stopped working. In February, there was a less pronounced drop, with 275 Bitcoin ATMs coming inactive.　　The General Bytes hack, which occurred on March 17 and 18, resulting in a loss of more than $1.5 million in Bitcoin, corresponded with the months largest decline. According to statistics, there are 33,728 crypto ATMs in operation worldwide as of April 1, 2023.　　Globally, General Bytes machines make up the highest percentage of crypto ATMs—28.5% of all machines—while Bitaccess devices take up 20.2% of the market. Globally, Genesis Coin ATMs make up 17% of the market, while Coincloud units make up 12.7%.　　The United States has the most Bitcoin ATMs in the

2023-04-04Deep Dive

Twitter introduces new monthly verification fees for Nigerian businesses and individuals

By: Damian Okonkwo　　Twitter - the social media giant, which was acquired by Elon Musk in 2022, now requires businesses to pay N460,500 per month to retain their verification status on the platform. Added to this, there is also an additional monthly fee of N23,030 for each affiliated individual or business to get verified on the platform.　　The move is part of a wider push by Musk to recoup the $44 billion he invested in acquiring Twitter. The company has already rolled out Twitter Blue for individuals, and now the verified badge for businesses is globally available as well. The gold badge distinguishes businesses on the platform, and organizations that sign up for Verified Organizations will have full control of vetting and verifying the accounts theyre affiliated with.　　Twitters Chief Executive, Elon Musk, praised the new verification plan, saying it would help to eliminate impersonation on the platform.　　“This is important to establish whether someone belongs to an organization or not to avoid impersonation,” Musk tweeted.　　Hence, it stands very important for all businesses, non-profit bodies, governments, and multilateral organizations worldwide to join the waitlist to get verified. However, it is still unclear whether other countries will be given the same pricing as Nigeria also

2023-04-03Deep Dive

Bittrex Pulls Out of US Market, Cites Regulatory Environment

The Seattle-based cryptocurrency exchange Bittrex has decided to freely dissolve and shut down its US activities. The decision has been explained by the companys unclear legal climate. Users of the exchange will be able to withdraw their money, and Bittrex has encouraged them to do so within 30 days. Customers have until April 30, 2023, to move all verified money before the platforms selling closes on April 14, 2023.Regulations have been mentioned as a significant worry　　Ritchie Lai, co-founder, and CEO of Bittrex claim that the regulatory environment, which has grown increasingly ambiguous and implemented without adequate debate or input, was the driving factor behind the decision to shut down US activities. Due to the unequal competing environment created as a consequence, Bittrex can no longer operate profitably in the present political and financial climate. Lai claimed that it is no longer possible to operate in the US.Background to Bittrexs decision to close down its US business　　Earlier this year, the New York Department of Financial Services (NYDFS) refused to grant Bittrex a BitLicense. This was due to flaws in its anti-money laundering (AML) rules and compliance program, as well as supervision and controls over the launch of its coin and goods.　　Following

2023-04-03Deep Dive

Musk Moves To Terminate The $258 Billion Lawsuit Concerning Dogecoin

A $258 billion conspiracy complaint against Elon Musk and his electric vehicle manufacturer Tesla accuses Musk of operating a pyramid scam to promote the cryptocurrency Dogecoin. Musks attorneys, however, have requested a US court to reject the lawsuit, claiming that it is based on Musks “innocent and frequently silly tweets” about Dogecoin and is therefore a “fanciful work of fiction.”The Investors Claims　　Investors in Dogecoin charge Musk of purposefully inflating the price of the cryptocurrency by more than 36,000% over the course of two years before allowing it to collapse, making billions of dollars in profit at the cost of other Dogecoin holders even though Musk was aware that the token lacked inherent worth. Investors also cited Musks performance on NBCs “Saturday Night Live” during which, while taking the role of a fictional financial expert, he labeled Dogecoin “a hustle.”Musks Defense　　The financiers, according to Musks legal team, never described how they meant to scam anyone or what dangers Musk hid. Additionally, they claimed that his claims, such as “Dogecoin Rulz” and “no highs, no lows, only Doge,” were too nebulous to serve as evidence of deception. There is nothing illegal about posting encouragement for or amusing images of a genuine coin

2023-04-03Deep Dive

Kraken Moves To Become A Registered Restricted Dealer In Canada

San Francisco-based cryptocurrency exchange Kraken has filed a pre-registration undertaking with a Canadian provincial regulator as it works towards becoming a regulated provider in the country.　　To continue operating while their application is being processed, cryptocurrency platforms must give their primary regulator a pre-registration undertaking. By making these commitments, Kraken acknowledges that its platform is bound by terms and conditions that address investor protection issues.　　If a cryptocurrency trading platform is unable to file an undertaking or does not adhere to its requirements, CSA members may seek legal action.Kraken Prioritizes Compliance　　Kraken, which recently settled with US regulators for listing digital assets that should be registered as securities, filed the undertaking with the Ontario Securities Commission to qualify as a registered Restricted Dealer across Canada.　　“Canada as a geography is critical to our mission to empower people with new ways to connect and transact. Trading platforms that prioritize compliance and secure trading experiences will have more success advocating for crypto‘s economic benefits and transformative potential for crypto traders and investors,” said David Ripley, Kraken’s Chief Operating Officer and incoming CEO.　　“As we forge this new regulatory path, we‘ll continue engaging with our local regulators to enhance our understanding of crypto’s economic benefits and transformative potential.

2023-03-31Deep Dive

Justin Sun’s Huobi Exchange Partners Gala Games For L1 and Web3 Development

Huobi Global, a cryptocurrency exchange backed by Justin Sun, the founder of Tron, has announced a strategic partnership with Gala Games, a blockchain-based gaming platform that allows players to earn cryptocurrency while playing. The collaboration aims to focus on investment and listing of top Web3 projects, developing the Web ecosystem, and building communities.　　　　　　Huobi Global Partners Gala Games　　In an official blog post on March 31, Huobi Global announced its strategic partnership with the blockchain-based play-to-earn gaming platform, Gala Games. As part of the collaboration, the companies will work together in investment and listing of top projects in the Gala ecosystem, as well as in ecosystem building, co-branding, project development, and community building.　　Gala Games offers developers the ability to create play-to-earn crypto and non-fungible token (NFT) games, allowing players to buy and sell in-game items that developers cannot modify or delete without player consent.　　This partnership is expected to help Huobi accelerate its Web3 goals by integrating with the Gala Layer-1 blockchain, which will improve the underlying on-chain technology.　　According to Jason “BitBender” Brink, who serves as the president of blockchain at Gala Games, the integration of the companys layer 1 blockchain with popular exchanges such as Huobi is vital for achieving the mass

2023-03-31Deep Dive

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