Crypto Guides, Knowledge & Insights

New Charges Filed Against Sam Bankman-Fried, Former FTX CEO, in Multi-Billion Dollar Fraud Case

Sam Bankman-Fried, the co-founder of FTX, was charged with four new counts in a fresh indictment released on February 22, 2023. Operating an illegal money transfer company and plotting to conduct bank theft are among the accusations. A federal grand jury in Manhattan accused Bankman-Fried 72 days ago on eight separate counts, including the plot to conduct wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit stocks fraud, and conspiracy to commit money laundering.　　New Charges Of FTX Founder Involved Of Plundering Customer Accounts　　According to the new charge, Bankman-Fried took advantage of FTX customers confidence and plundered customer accounts, using billions of dollars in misappropriated funds for different purposes. Bankman-Fried is also accused of influencing the operations of bitcoin businesses he established and managed, including FTX.com and Alameda Research. According to the charge, Bankman-Fried committed a multibillion-dollar scam using a number of systems and methods that enabled him to access and take FTX client assets without being detected.　　Bankman-Fried is also accused of cheating clients through the acquisition and selling of swaps, making illegal political donations, and scamming the Federal Election Commission.　　FTX Founders Deception Charges Raise Ethics Concerns in Bitcoin Industry　　Bankman-claimed Frieds actions raise significant worries about the bitcoin

2023-02-24Deep Dive

Bitcoin Price To Suffer? IMF Issues Crypto Action Plan

The global digital asset is facing more selling pressure as financial regulators continue to scrutinize it. The overall market capitalization has decreased by 1.39% in the past day. Despite this, the International Monetary Fund (IMF) has released a nine-point action plan for countries to manage crypto assets.　　Bitcoin Price To Take A Hit？　　According to reports, the IMF has recommended that countries should not consider digital assets like Bitcoin (BTC) as legal tender. Despite this advice, El Salvador, which has already declared Bitcoin as legal tender, plans to establish a “Bitcoin Embassy” in the United States to promote the adoption of digital assets.　　The IMFs executive board discussed a paper called “Elements of Effective Policies for Digital Assets,” which provided guidance to member countries on the issue.　　The IMF stated that in light of the many failures of digital assets, exchanges, and firms in recent years, taking action to address this issue has become a major concern for them. They recommend implementing policies that prioritize protecting monetary sovereignty and stability, which includes avoiding granting crypto assets legal tender status.　　IMF Going Against Crypto？　　In 2021, the IMF cautioned El Salvador when it declared Bitcoin as its official currency, and later, the Central African Republic followed suit.　　Meanwhile,

2023-02-24Deep Dive

The Freezing of Binance Accounts: An Urgent Need for Risk Management and Market Regulation

Recently, news of Binance freezing user accounts rapidly spread on Twitter, with many users stating they had been impacted. According to WikiBIT‘s investigation, an Australian user named ’illiquidity providooor‘ tweeted at 7:56 pm last night that his Binance account had been frozen. The tweet gained 1.5M engagements and 305 replies. Later, another Twitter user called ’BitRun tweeted at 11:52 pm last night that Binance had frozen their customers accounts for over a month without any explanation. The amount involved reached up to 180,000 U$. The tweet has already gained 91.8K engagements in a short period of time, with even more comments under it showing the multitude of victims.　　Many Binance users don‘t know why their accounts were unexpectedly frozen, and Binance has not responded positively. Were the users wrong, or was it Binance’s fault？ However, before February 24th, many users had already complained on Twitter about their Binance accounts being frozen without reason. A Twitter user called ‘cici’ tweeted on February 20th that his account was frozen, but Binance did not respond at all. The user even received threats to return the USDT by transferring it to a separate party. Failure to do so would lead to permanent account freezing. How

2023-02-24Deep Dive

Bank of Israel Introduces A Framework To Oversee Stablecoins

The Bank of Israel is exploring the issue of digital assets and their impact on the areas it oversees, including maintaining financial stability, managing monetary policy, and regulating payment systems. The increasing interest in digital assets and the associated risks have prompted the Bank to establish a committee headed by Deputy Governor Andrew Abir to examine the issue from various perspectives, including prudential, regulatory, technological, monetary, and legal.Regulating Stablecoin Activity in Israel　　One of the key areas the committee has focused on is the regulation of stablecoin activity in Israel. A stablecoin is a digital asset that is designed to maintain its value by pegging it to the value of another asset. The issuer of the stablecoin operates a mechanism that ensures the stability of the coins value. Unlike other digital assets, stablecoins have the potential to be used not only as an investment asset but also as a means of payment.　　The Bank of Israel is responsible for regulating and supervising means of payment, and the principles document developed by the committee outlines the regulation of stablecoin activity in Israel. The aim of this regulation is to allow stablecoin activity while managing the inherent risks associated with using them and adjusting

2023-02-24Deep Dive

eToro Updates Its eToro Money Crypto Wallet Services

The services provided by the eToro Money digital wallet will alter on March 26, 2023. These adjustments will have an effect on the crypto token exchange service as well as the support for specific eToro cryptocurrencies.eToro Money Discontinues Cryptocurrency Exchange Service for Wallet Users　　The cryptocurrency exchange service will be discontinued for eToro Money crypto wallet users. This implies that users of crypto assets in the Wallet will no longer be able to exchange them for other crypto assets. As a consequence, any digital asset transfer should be handled previous to the adjustments taking effect.　　Furthermore, the eToro Money Crypto Wallet will no longer accept the following eToro cryptocurrencies as of March 26, 2023: AUDX, CADX, CHFX, CNYX, EURX, GBPX, GLDX, HKDX, JPYX, NZDX, PLNX, RUBX, SGDX, SLVX, TRYX, USDEX, and ZARX.　　If a person has any of the above coins in their eToro Money Crypto Wallet, they can change them to one of the Wallets approved crypto assets.　　If a user does not change the tokens by March 25, 2023, at 23:59 GMT, they will be immediately refunded the USD worth of their eToro crypto tokens at the rate accessible to eToro at the time of closing. Within seven working days, the refund

2023-02-24Deep Dive

XRP Lawsuit Settlement Incoming? Lawyer Drops Scenario

There is a lot of anticipation surrounding the upcoming Summary Judgment in the SEC Vs Ripple Lawsuit, which has been ongoing for a long time. One area of speculation pertains to the resolution of the XRP lawsuit.　　Ripple To Settle XRP Lawsuit　　John Deaton, an Amicus Curiae in the XRP lawsuit, provided insights on the potential settlement of the case. He suggested that if the US SEC acknowledges in writing that the ongoing and future sales of Ripples XRP are not securities and that secondary market sales by individuals, including exchanges, will not be treated as securities, the lawyers would advise their clients to settle.　　The Ripple defendants could have chosen to settle earlier, but they decided to bring the case to court. However, XRP holders lawyer, John Deaton, believes that Ripple will not settle because they are fighting for clear crypto regulations.　　Deaton also advised that Ripple CEO Brad Garlinghouse and the Ripple Board, who act as fiduciaries to shareholders, should settle in the given scenario. If Ripple fails to settle and loses the case, the company could be in litigation for a decade.　　US SEC To Settle？　　A settlement cannot be appealed in court and can prevent a ruling from becoming precedent if the

2023-02-23Deep Dive

The Forsage Founders Are Facing Charges In A $340 Million DeFi Cryptocurrency Fraud

A federal grand jury in the District of Oregon charged four creators of Forsage, a cryptocurrency investment platform, for their alleged involvement in a worldwide Ponzi and pyramid scam that collected roughly $340 million from victim investors. The creators are Russian citizens Vladimir Okhotnikov, alias Lado, Olena Oblamska, aka Lola Ferrari, Mikhail Sergeev, aka Mike Mooney, aka Gleb, aka Gleb Million, and Sergey Maslakov. The accused reportedly used social media to push Forsage as a valid and profitable business chance, promoting it as a decentralized matrix project built on network marketing and “smart contracts” on the blockchain.Accused use smart contracts for Ponzi pyramid scam　　According to court papers, the accused programmed and implemented smart contracts on the Ethereum, Binance Smart Chain, and Tron blockchains to organize their joint Ponzi pyramid scam. According to an analysis of the computer code underlying Forsages smart contracts, when an investor invested in Forsage by purchasing a “slot” in a Forsage smart contract, the smart contract automatically diverted the investors funds to other Forsage investors, such that earlier investors were paid with funds from later investors.　　Through Forsages website and various social media platforms, the defendants fraudulently advertised Forsage to the public as a valid, low-risk, and

2023-02-23Deep Dive

CoinEx Faces A Lawsuit From NY For Not Registering As A Crypto Exchange

NEW YORK, Feb 22 (Reuters) - The U.S. New York Attorney General Letitia James accused CoinEx, a Hong Kong-based bitcoin exchange, of operating unlawfully in New York without appropriate licensing. James submitted documents in a Manhattan court charging CoinEx of participating in repetitive and relentless deceptive practices, in violation of the Martin Act, a strong state statute designed to fight financial fraud.　　Before purchasing and selling coins, CoinEx was charged with neglecting to register as a commodity broker-dealer, securities broker, or securities dealer. James also claimed that the business misrepresented itself as a worldwide cryptocurrency exchange without state authorization and refused to cooperate with a demand for evidence about its digital asset trading activities.　　In reaction to the case, James stated that the days of cryptocurrency businesses behaving as if the regulations did not pertain to them are over. Her legal action wants compensation as well as a prohibition on New York residents using CoinExs mobile app, website, and services.　　CoinEx, also known as Vino Global Ltd, was established in 2017 and has yet to reply to queries for remarks on the issue. However, the business will have to defend itself in court against the allegations.　　This action comes on the heels of a

2023-02-23Deep Dive

Tencent Announces Web3 Strategic Partnership With Ankr, Avalanche, Scroll, Sui

Tencent Cloud, a subsidiary of Tencent, has announced its commitment to supporting the development of the Web3 ecosystem and the global Web3 community. The cloud service provider has teamed up with several cryptocurrency platforms, such as Ankr, Avalanche, Scroll, and Sui, to enhance the Web3 ecosystem. In an official statement released on February 22, Tencent Cloud unveiled its plans to release a full suite of blockchain API services, as well as its Metaverse-in-a-Box products, to support the development of the Web3 ecosystem. Additionally, Tencent Cloud will offer technical assistance to Web3 developers.　　Tencent Cloud has also formed partnerships with several Web3 companies. One of these partnerships is with Ankr, and the two companies have signed a Memorandum of Understanding (MoU) to develop a range of blockchain API services. Additionally, Tencent Cloud has partnered with Avalanche, a platform for smart contracts, and with Scroll, a fully EVM-compatible zk-Rollup builder that has been made open-source. Finally, Tencent Cloud has also formed a partnership with Sui, a Layer-1 blockchain that offers high-performing games.　　Poshu Yeung, who serves as senior vice president at Tencent Cloud, commented on the partnerships, stating that the company is excited about the future of Web3. Yeung believes that Web3 will usher

2023-02-22Deep Dive

Coinbase Suffers A Quarterly Loss As The Crypto Winter Reduces Trading Volume

Coinbase Global Inc, a large cryptocurrency exchange, posted a deficit in the fiscal fourth quarter. The firm was under pressure due to an industry-wide decline caused by a slew of high-profile bankruptcies. For the last year, the digital assets market has been plagued by a pessimistic attitude. The largest hit to the industry, though, was the November bankruptcy of Sam Bankman-main Frieds crypto exchange FTX.Coinbases Trade Volume Plummets in Q4 Amid Market Slump, CEO Expects Regulatory Benefits　　Owing to the market slump, Coinbases trade volume declined dramatically in the fourth quarter, falling to $145 billion from $547 billion the previous year. Retail dealers also reduced their trading volume by roughly 89% to $20 billion. According to Chief Executive Brian Armstrong, in a call with analysts, this slump has resulted in heightened regulatory scrutiny, which would eventually benefit Coinbase.　　There was one bright light for Coinbase. Subscription and services income increased by nearly 33% to $282.8 million in the fourth quarter, owing to significant interest rate increases. According to Refinitiv data, the business predicted subscription and services revenue in the first quarter of $300 million to $325 million, which is higher than Wall Street projections of $285.7 million.Stocks Surge After Strong Earnings Report

2023-02-22Deep Dive

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