2023-09-21T20:14:04ZSam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at court as lawyers push to persuade the judge overseeing his fraud case not to jail him ahead of trial, at a courthouse in New York, U.S., August 11, 2023. REUTERS/Eduardo Munoz/File PhotoA U.S. appeals court on Thursday upheld a judge's decision to jail former cryptocurrency billionaire Sam Bankman-Fried ahead of his Oct. 3 trial on fraud charges stemming from the November 2022 collapse of his now-bankrupt FTX exchange.The decision was issued by the 2nd U.S. Circuit Court of Appeals in Manhattan.U.S. District Judge Lewis Kaplan had revoked Bankman-Fried's $250 million bail on Aug. 11, finding probable cause to believe that the defendant had tampered with witnesses.This included his sharing the personal writings of Caroline Ellison, the former chief executive of his Alameda Research hedge fund, with a New York Times reporter.Ellison has pleaded guilty to fraud and is expected to testify against Bankman-Fried, a former romantic partner. In her writings, she described feeling "unhappy and overwhelmed" with her job and "hurt/rejected" from a breakup with Bankman-Fried.A lawyer for Bankman-Fried told the appeals court on Sept. 19 that Kaplan failed to credit the defendant for exercising his First Amendment constitutional right to speak with the press and try to restore his reputation.The appeals court appeared skeptical. One judge said the First Amendment did not protect witness tampering, while another said publicly humiliating someone by releasing personal details could be viewed as an attempt to influence their testimony.But the judges appeared slightly more open to Bankman-Fried's argument that a lack of internet access at Brooklyn's Metropolitan Detention Center was impeding his preparation for trial in the complicated case.Danielle Sassoon, a prosecutor, said her office had taken "extraordinary measures" to help Bankman-Fried prepare for trial, and that before being locked up he spent seven months with internet access at his parents' home in Palo Alto, California."If it is true that he has intimidated witnesses, at a certain point, he makes his own bed, he sleeps in it," Circuit Judge William Nardini said.Bankman-Fried faces seven charges of fraud and conspiracy stemming from the collapse of FTX, the now-bankrupt crypto exchange he founded.Prosecutors accused him of looting billions of dollars in FTX customer funds to plug losses at Alameda, buy luxury real estate and donate to U.S. political campaigns.Bankman-Fried has pleaded not guilty, while acknowledging risk management failures.

The tool will monitor crypto wallets and alert the Indian Ministry of Home Affairs about irregular transactions, according to a report.

In a recent development, pro-XRP legal experts Bill Morgan and John Deaton have taken a swipe at the US Securities and Exchange Commission’s (SEC) Chair Gary Gensler following his recent comments, which show his stance on the Ripple Case. Ripple Case: Gensler a “Megalomaniac” In a tweet shared on his X (formerly Twitter) platform, Deaton criticized Gensler’s supposed disregard for the court, including the Supreme Court. He says people like Gensler “are inherently arrogant” and think “they are above the law.” He further labeled the SEC Chair a “real life example of a megalomaniac.” His tweet was in response to an interview where Gensler was quizzed as to whether or not anything “any court” will say will change his perception of the crypto space and, by extension, cryptocurrencies. Instead of answering the question, Gensler seemed to deflect and stated that he wished a court could say something to speed up compliance in the industry. His comments about the court come at a time when the SEC is involved in an ongoing legal battle against Ripple, a case that could determine whether crypto tokens are indeed securities. Going by this, it would seem that Gensler is hell-bent on getting a court decision that will support his notion that cryptocurrencies are securities and should be guided by the securities laws rather than being guided by the court on whether or not cryptocurrencies fall under the SEC’s purview in the first place.  Meanwhile, Bill Morgan further dissected Gensler’s comments. He stated that Gensler meant that he wished the Commission had “won the part of the Ripple case that matters most” and that since they didn’t, he is hoping that an Appeal court can reverse Judge Analisa Torres’ ruling.  He joked that Genlser would be hoping this happens so they can have their own party in New York, most likely in reference to Ripple’s announcement that it would have a party in New York on September 29 to celebrate its victory against the SEC.  Securities Laws Should Apply To Crypto Industry In that same interview, Gensler mentioned that securities laws should apply to “crypto security tokens.” According to him, there is nothing “incompatible” between those tokens and the securities laws, suggesting that there is no reason why they shouldn’t be tagged as securities. He further stated that investors have much to gain from these tokens being regulated by the securities laws, including the fact they will be protected from fraud and manipulation. He alluded to the fact that many, hoping for a better future, have lost their money to crypto investments.  The SEC and Gensler hope to use the Ripple case to prove that crypto tokens are indeed securities and should be guided by the securities laws. Their interlocutory appeal against Judge Torres’ ruling is focused on the Judge’s decision on Ripple’s programmatic sales and other distributions, as she stated that they didn’t constitute investment contracts. If the appeal goes in the SEC’s favor, the Commission will gain momentum to forge ahead in its enforcement actions. It will also provide a leeway for it to enforce actions against all crypto exchanges for operating as unregistered securities exchanges, just like it already did with Binance and Coinbase.

The Bombardier Global 5000, and Sam Bankman-Fried.Insider; ANGELA WEISS/AFP via Getty ImagesFTX loaned $28 million to a private jet company to finance its purchase of two jets, a court filing says.One of them has been in government custody since February, while the FTX Debtors claimed ownership of the planes in August.The jet company owner repaid $11 million and is "one of the largest Bahamian victims of SBF's cryptocurrency fraud."Sam Bankman-Fried's FTX loaned $28.4 million to a Bahamian aircraft company to buy two private jets, according to a motion filed Thursday in the Delaware Bankruptcy Court.The aircraft are a Bombardier Global 5000 and an Embraer ERJ-135BJ Legacy 600, which the lawsuit says cost $15.9 million and $12.5 million, respectively.The former is one of the biggest purpose-built private jets on the market and can be fitted with luxuries like a movie theater and a bedroom. The Embraer is the business version of the popular ERJ-135 commercial plane.The Bahamian company, Island Air Capital, is seeking relief from an automatic stay which prevents it from operating or selling the jets, following months of discussions with the FTX Debtors and the government.Alternatively, it asks for liens or protection based on what it says are the millions of dollars it has spent improving and maintaining the planes.In the court document, IAC says it owns the two planes and they are operated by Trans Island Airways. Paul Aranha, the CEO of TIA, is the beneficial owner of IAC.Around the same time as the interest-free loan, the court filing says FTX Ventures also signed a term sheet to invest $17 million in TIA, which meant it was poised to become a joint owner of the aviation company.The Bombardier Global 5000, in the Trans Island Airways livery.InsiderPhotos sent to Insider by a former TIA employee, who asked to remain anonymous for privacy reasons, show the Global painted in TIA's blue and white livery. It has since been painted white, per a listing for the plane which also shows its luxurious interior.Two people familiar with the situation told Insider that the Bombardier and Embraer jets were registered under the tail numbers C6-SPR and C6-BDE. They were delivered to TIA in March and August of last year, per the court documents.One of the people, who has direct knowledge of the jets, told Insider that Bankman-Fried never flew on either plane, but he did make numerous other journeys with TIA.TIA's Embraer Legacy 135.InsiderFTX filed for bankruptcy in November 2022 after Bankman-Fried resigned as CEO. He has pleaded not guilty to seven charges including wire fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.The crypto exchange imploded after a CoinDesk report prompted concerns over its viability and customers rushed to withdraw their deposits, but — partially due to FTX executives' lavish spending — it couldn't cover demand.Thursday's court filing says IAC received the loan after a "handshake deal" between Aranha and Bankman-Fried. It adds that Aranha repaid the loan into an FTX customer account, to the tune of more than $11 million."Based on information and belief, Mr. Aranha is one of the largest Bahamian victims of SBF's cryptocurrency fraud," the filing says.Following FTX's implosion, Aranha tried to sell the Global to help repay the loan because there was no business case to keep it, per the filing. The court document says IAC received multiple offers over $15 million, before the US Marshals Service seized it in February. The Global has been parked at Bradley International Airport in Connecticut since late January.The court filing says that the FTX Debtors, who are handling the bankruptcy case to repay customers, have held multiple discussions with Aranha since last December.It adds that Aranha and IAC requested a three-way settlement conference with the government and the FTX Debtors "given the ever-increasing costs associated with the aircraft," but the debtors ignored the request.It wasn't until August 7 that the FTX Debtors claimed ownership of the planes, the filing says. Insider previously reached out to the Debtors' spokespeople about the Bombardier and Global in mid-July, and they declined to comment. They also declined to comment Friday.A spokesperson for Sam Bankman-Fried declined to comment.This is not the first time FTX Debtors have tried to get back assets.In September, it started looking into getting millions back in sponsorships it paid out for celebrities like Shaquille O'Neal, Stephen Curry, and Naomi Osaka.And on Monday, it accused Bankman-Fried's parents of siphoning millions of dollars from the company.Read the original article on Business Insider

Hong Kong influencer Joseph Lam has disassociated himself with the crypto platform JPEX, denying any allegation in the unfolding investigation of the exchange. Lam held a press conference yesterday (Friday), revealing that he had not only closed his own company but also terminated the rental contract for his office. Lam's abrupt severance of his connection with JPEX comes in the wake of his arrest earlier this week, along with 10 others, all linked to an alleged conspiracy to defraud investors. The case in question involves a staggering HK$1.37 billion, making it the largest of its kind in the city. JPEX Exchange SagaLam, who was released on bail without any formal charges, had been wearing multiple hats as an insurance agent and a former barrister, but it was his involvement in an over-the-counter (OTC) crypto exchange store that brought him into the JPEX fold. In July, Lam had taken to social media to announce his application for partnership with JPEX, confirming his status as a partner to Ming Pao, a local news outlet that uncovered his promotional activities for the crypto platform.However, during his recent press conference, Lam did not disclose the extent of his involvement with JPEX, refusing to provide any details beyond announcing his cessation of operations with the platform and the closure of his company. Lam, known for his substantial Instagram following, was apprehended by Hong Kong authorities on Monday. His arrest is closely linked to the suspension of trading activities on JPEX. Regulators allege that JPEX had been operating in the country without the necessary license, leading to a series of legal actions.Hong Kong's Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM— Crypto University (@TheCryptoU) September 18, 2023In the aftermath of the arrests, Hong Kong police have taken measures to freeze assets amounting to over HK$60 million that are linked to the suspects. JPEX’ legal challenges escalated when the exchange took drastic measures in response to a crackdown by authorities. In its latest move, JPEX has filed for the deregistration of its Australian entity, JP-EX Crypto Asset Platform PTY LTD (JPEX). JPEX Faces Heightened Regulatory ScrutinyThe unraveling of JPEX's troubles began with a warning issued by Hong Kong's Securities and Futures Commission (SFC). The SFC revealed that JPEX had falsely claimed to have applied for a license with the regulator, casting doubts on the legitimacy of the exchange's operations. Furthermore, the SFC alleged that JPEX's other license claims were also false, sparking concerns among investors.The unfolding saga began when JPEX confirmed the suspension of all its trading activities, citing a series of challenges it faced in the wake of negative news and perceived unfair treatment by relevant institutions in Hong Kong. In a blog post, the exchange stated that "our partnered third-party market makers have maliciously frozen funds" and that these market makers were demanding more information for negotiation, thereby restricting the exchange's liquidity and significantly increasing its daily operating costs. This article was written by Jared Kirui at www.financemagnates.com.

Bitcoin Swindler Faces Justice: Victim-Led Investigation Halts Global Crypto Scam  Bitcoinist

FTX founder and onetime CEO Sam Bankman-Fried will stand trial in just under two weeks to defend himself against allegations he deliberately committed fraud and conspired to defraud crypto investors and customers in FTX and Alameda Research. CoinDesk spoke to several legal experts about how the case may proceed.

Hungarian authorities have seized cryptocurrency worth over $1 million from a criminal organization in a value-added tax (VAT) fraud case. The authorities raided 28 locations, arrested three suspects, and seized various assets tied to the group. The seized cryptocurrencies were transferred to the wallet controlled by the Hungarian tax authority. Crypto Seized in Tax Fraud Case The National Tax and Customs Administration of Hungary (NAV) announced Wednesday that it has seized cryptocurrency from a criminal organization that evaded paying three billion Hungarian forints ($8.2 million) in value-added tax (VAT). NAV commandos, the Merkur Deployment Unit, and the investigators of the Western Transdanubian Criminal Directorate simultaneously raided 28 locations, arrested the suspects, and seized their illegally acquired assets and cryptocurrency worth nearly 420 million forints ($1.15 million). Without providing specific details, the NAV stated that the seized cryptocurrencies were transferred to a specially created crypto wallet that it controls. The tax authority explained that members of the criminal organization acquired smartphones, tablets, solar panels, and other electronic devices from several countries in the European Union. They avoided paying VAT after importing the products by setting up shell companies that changed every couple of months, the NAV described, adding that this allowed the fraudsters to sell electronic devices to various wholesalers and resellers at favorable prices. “By selling information communication devices imported from the EU through a fictitious invoicing chain, more than HUF 3 billion in VAT was saved,” the Hungarian tax authority stated (translated by Google). The NAV added that some of the criminal proceeds were used to invest in cryptocurrency. In addition to cryptocurrency, solar panels, associated inverters, cars, cash, real estate, and bank accounts worth more than half a billion forints were seized. According to the NAV, three members of the criminal organization have been taken into custody. What do you think about the Hungarian tax authority seizing cryptocurrency in this tax fraud case? Let us know in the comments section below.

The city of Hong Kong is facing what is reportedly its “largest-ever fraud case” as the number of victims in the JPEX saga continues to rise, with local police making more arrests in connection with the case.  The JPEX Case According to a report by Hong Kong Free Press (HFRP), 2,086 persons have been identified so far as victims of the crypto exchange JPEX’s fraudulent actions. The police are also said to have arrested three more people who are suspected of being conspirators in the financial fraud, which has caused investors to lose over $166 million. One of those arrested is former lawyer and crypto influencer Joseph Lam, who happens to have close ties with the crypto exchange. These arrests bring the total number of arrests to 11, and the investigation is said to be ongoing, with more arrests expected to be made.  The JPEX saga began when Hong Kong’s financial regulator, The Securities and Futures Commission (SFC), released a statement on September 13 warning investors that JPEX wasn’t licensed to operate a virtual asset trading platform (VATP) in the city. It also mentioned that there was no pending application by the exchange to operate in Hong Kong. This warning was released in rebuttal of the exchange’s representation on its website that it is “a licensed and recognized platform to facilitate the trading of digital asset and virtual currency.” JPEX also claimed on its website that it was licensed by certain regulators abroad, which is apparently a lie.  In its statement, the SFC mentioned that it had received complaints from retail investors of their inability to withdraw their assets from their JPEX accounts or them discovering that their account balance had been “reduced or altered.” Following this, a user on the X (formerly Twitter) platform noted that the crypto exchange had hiked its withdrawal fee to $999, probably in a bid to dissuade users from withdrawing their assets, as it also capped the maximum withdrawal limit at $1,000. Meanwhile, on September 17, JPEX released a statement where it blamed the liquidity crunch it was facing on its partnered third-party market makers who had “maliciously frozen funds.” These market makers had apparently done this because of the regulatory scrutiny and negative news that the exchange was facing.  JPEX Not Backing Down In a statement released on September 21, JPEX seemed to suggest that there was little or nothing the authorities could do against it as its team members are “in unknown places around the world.” According to the exchange, it has never operated a “physical corporate structure” as it is an “obstacle to promoting cryptocurrency globally.” The crypto exchange also alluded to the SFC’s unfair treatment as it stated that the Commission had treated it “with vague guidelines and unfounded charges.” It noted that the SFC had also instructed telecommunications providers to block users’ access to the platform. As a result of these “unfair bureaucratic practices,” the exchange has decided to transform into a DAO in the hopes that this will help it get “out of trouble and get back on track as soon as possible.” According to the statement, JPEX “will continue to operate unswervingly” no matter what happens. The exchange’s website is still operational at the time of writing.

Crypto vs. SEC: XRP Lawyer Accuses SEC of Fraud Amid Cryptocurrency Regulation Battle  Coinpedia Fintech News

In a scathing critique of the crypto industry, former Chief of the US Securities and Exchange Commission (SEC) Office of Internet Enforcement, John Reed Stark, has raised serious concerns about the viability and promises of digital collectibles, particularly non-fungible tokens (NFTs).  Stark compares the meteoric rise and subsequent fall of NFTs to the infamous fad of pet rocks in the 1970s. Drawing attention to a new study’s findings, he asserts that most NFT collections have rapidly lost value, leaving investors with little to show for their purchases.  Stark argues that fractionalized links to the metadata of JPEG files, which form the basis of NFTs, are essentially a con game. He claims that the NFT marketplace is inorganic and “rigged,” with rampant market manipulation and fraud being tolerated and allegedly encouraged.  Stark criticizes venture capitalists and Wall Street profiteers for capitalizing on the dreams of decentralization, financial inclusion, and instant wealth promised by NFTs while retail buyers suffer significant losses. Former SEC Official Warns Of Crypto And NFT Pitfalls According to Stark, cryptocurrency fails to fulfill several key roles that proponents often attribute to it. First, he argues that crypto cannot be considered a reliable investment due to the lack of regulatory oversight, transparency, consumer protections, and market manipulation prevalent in the industry.  Second, he contends that crypto’s extreme price volatility, high fees, burdensome tax implications, and infinite risks prevent it from functioning effectively as a currency.  Additionally, he asserts that crypto lacks utility and intrinsic value, making it an unsuitable store of value. Lastly, Stark criticizes that crypto can serve as a financial panacea for the unbanked, arguing that it perpetuates predatory inclusion and affinity fraud. Stark challenges the notion that blockchain technology is the revolutionary solution it is often hailed to be. While acknowledging some potential applications in specific contexts, he asserts that blockchain remains a “limited” and “inefficient append-only ledger” with numerous security issues.  He warns against falling prey to misguided groupthink and crypto-sophistry, highlighting that most current blockchain projects are private and do not deliver on the promises of decentralization and transformative technological advancements. Stark further argues that crypto presents a significant risk of affinity fraud, particularly for disadvantaged and disaffected communities. Despite claims that crypto can help bridge the financial inclusion gap, he asserts that it exacerbates existing inequalities and carries significant risks and drawbacks.  Stark remarks paint a grim picture of the cryptocurrency industry, asserting that grift, deception, and fraud are deeply ingrained within its ecosystem. However, according to many, Crypto and blockchain technology offer financial inclusion, innovation, and decentralized ownership opportunities.  As the industry matures and regulatory frameworks continue to take shape, it is crucial to embrace the potential benefits while remaining vigilant about addressing risks.  Featured image from iStock, chart from TradingView.com

Bankman-Fried, the Founder of FTX, has faced another legal setback as an appeals court rejected his attempt to secure pre-trial release ahead of his upcoming trial scheduled for October 3rd. This decision comes after a series of legal challenges and controversy surrounding the crypto entrepreneur.Bankman-Fried Faces Legal Setback as Trial ApproachesIn August, Bankman-Fried's release on bond was revoked by a judge who ruled that he had allegedly attempted to tamper with witnesses in his ongoing legal case. Earlier this month, his request to overturn this decision was also denied, and yesterday, an appeals court upheld that denial.The appeals court stated their decision: "We reject [Bankman-Fried’s] contention that the district court failed to consider a less restrictive alternative to detention. The record shows that the district court considered all of the relevant factors, including the Defendant-Appellant’s course of conduct over the time that had required the district court to repeatedly tighten the conditions of release."Despite objections from Bankman-Fried's counsel, Judge Kaplan ruled in favor of incarceration. U.S. prosecutors advocated for Bankman-Fried to be held at Putnam jail, citing better access to internet facilities necessary for trial preparation.Bankman-Fried faces charges of fraud and conspiracy in connection with the operation and subsequent collapse of his cryptocurrency exchange. He has consistently pleaded not guilty to all seven charges brought against him. This recent court ruling marks the second setback for Bankman-Fried on the same day. Judge Lewis Kaplan, overseeing the criminal case, granted prosecutors' motions to block every one of Bankman-Fried's proposed expert witnesses.While the defense team may attempt to reintroduce some of these witnesses, they will face additional hurdles, and the U.S. Department of Justice retains the right to object to their inclusion.The upcoming trial of Bankman-Fried in a federal courtroom in Manhattan is expected to draw significant attention within the cryptocurrency community and the broader financial industry. Legal experts and observers will closely monitor the proceedings as they unfold. Bankman-Fried's legal battle is seen as a significant test case for the regulation and oversight of the cryptocurrency industry, as authorities seek to address potential misconduct and fraud within this rapidly evolving sector.Bankman-Fried Jailed Ahead of Trial amid Witness Tampering AllegationsFinance Magnates reported in August that Bankman-Fried has been sent to jail by Judge Lewis Kaplan ahead of his criminal trial set for October 2, 2023. This decision comes following allegations of witness tampering brought forth by U.S. prosecutors. Bankman-Fried was initially released on a $250 million bond in December after being extradited to the United States in connection with the collapse of FTX and its affiliates.The witness tampering allegations stem from Bankman-Fried sharing personal details of Caroline Ellison, a former ally and romantic partner, with the New York Times. Ellison, the former CEO of FTX's sister trading firm Alameda Research, has pleaded guilty to criminal charges and is cooperating with prosecutors. She is expected to be a key witness in Bankman-Fried's trial. This article was written by Tareq Sikder at www.financemagnates.com.

The troubles of the crypto exchange JPEX can be sensed from its latest move to deregister its local entity in Australia. According to a Cointelegraph report, Jieyi Chen, a Director of JP-EX Crypto Asset Platform PTY LTD (JPEX), has already filed a deregistration application with the Australian financial regulator.Although there is no official confirmation, the deregistration application reportedly claims that all members of the entity agreed to the move as the company is no longer conducting any business. Further, it highlighted that the Aussie entity has less than AU$1,000 in assets with no liabilities.A Troubled Crypto ExchangeThe problems at JPEX started last week with a warning from Hong Kong’s Securities and Futures Commission (SFC), highlighting that the exchange falsely claimed to have applied for a license with the regulator. It also alleged that the other license claims by the exchange are also false.The financial market regulator in Hong Kong is working with the local police to crack down on allegedly shady operations of the crypto exchange. The HK police made multiple arrests, including influencers Joseph Lam Chok and Chan Wing-yee, for promoting the exchange.Largest Financial Fraud in Hong KongThe alleged JPEX fiasco is supposedly the largest case of financial fraud in the autonomous Chinese administrative region. The Hong Kong police are said to have received complaints from 1,641 investors until earlier this week, involving nearly HK$1.2 billion ($128 billion) in assets. To prevent customer withdrawals after the fiasco, JPEX increased its withdrawal fees to 999 USDT, in contrast to its previously offered 30 percent yield on stablecoins.Meanwhile, the HK police have asked internet providers within its jurisdiction to block access to JPEX.“The telecommunications service providers in the Hong Kong region, at the request of the SFC, have unreasonably blocked our mobile application and official website,” JPEX noted in an official blog post, calling the move a “prejudice and unfair treatment towards our platform.” The exchange has urged users to use virtual private networks (VPNs) to access its platform. This article was written by Arnab Shome at www.financemagnates.com.

The cryptocurrency sector is sometimes fraught with upheaval, yet maybe no digital asset exemplifies resilience more than Bitcoin. Bitcoin has encountered various hurdles throughout its existence, ranging from regulatory scrutiny to market crashes, yet it has continually survived these storms and emerged stronger. In this article, we look at recent events that put Bitcoin to the test and extract useful lessons for investors, enthusiasts, and the broader financial industry.A Brief History of BitcoinBitcoin, created in 2008 in a whitepaper by an unnamed entity known as Satoshi Nakamoto, was launched to the world as the first decentralized cryptocurrency in 2009. Many people were captivated by its revolutionary use of blockchain technology and the promise of a borderless, censorship-resistant, and decentralized money.Bitcoin's price has fluctuated dramatically throughout the years, owing to market sentiment, technological advancements, and macroeconomic considerations. It has gone through several market cycles, each with its own set of obstacles and possibilities.Recent Events Put Resilience to the TestRegulatory DifficultiesGovernments and regulatory agencies around the world have been debating how to classify and regulate cryptocurrencies in recent years. Increased inspection was prompted by concerns about money laundering, fraud, and consumer protection. Because Bitcoin is the most prominent cryptocurrency, it has found itself at the center of these debates.Learning ExperienceBitcoin's decentralized nature and broad user base have made it resistant to regulatory scrutiny. The lessons presented center on the significance of compliance, openness, and interaction with regulatory bodies. Long-term sustainability requires collaboration between the cryptocurrency sector and policymakers.Volatility and Market CorrectionsThe price of Bitcoin has seen tremendous swings, with high volatility becoming a defining feature. Market corrections, in which prices fall after making significant advances, have occurred several times. These occurrences can upset investor confidence and put long-term investors to the test.Lesson LearnedBitcoin's resiliency in the face of volatility emphasizes the significance of maintaining a long-term view. Investors who survived previous price declines frequently benefited from later price recovery. Risk management and diversification are critical techniques for handling the price volatility of Bitcoin.Security BreachWhile Bitcoin's blockchain technology is extremely secure, third-party services such as exchanges and wallets have been subject to security breaches and hacks. Large amounts of Bitcoin have been stolen as a result of these instances.Protecting Bitcoin holdings necessitates a proactive approach to security. It is critical to use secure wallets, hardware wallets, and follow best practices for protecting private keys. It is also critical to exercise caution while selecting cryptocurrency service providers.Macro Events and Economic UncertaintyBitcoin has acquired popularity as a digital gold store, particularly during times of economic uncertainty. Events like as the COVID-19 epidemic and inflation fears have added to Bitcoin's allure as a hedge against traditional financial insecurity.Lesson Learned: Bitcoin's resiliency in the face of macroeconomic events highlights the currency's potential position in diversified investment portfolios. While its connection with traditional assets is still being debated, its lack of correlation during crises shows its significance as a potential hedge.Technological AdvancementsThe underlying technology of Bitcoin has evolved over time. Scalability difficulties have been addressed by innovations such as the Lightning Network, which has improved transaction efficiency. These advancements demonstrate Bitcoin's versatility and dedication to continuous progress.The willingness of Bitcoin to adapt and embrace technological innovations is critical to its continued relevance. To address scalability, security, and usability issues, the cryptocurrency sector must stay agile and responsive.Growing Institutional InterestInstitutional investors and corporations are beginning to see Bitcoin as a viable asset class. Companies such as Tesla and Square have devoted considerable amounts of their treasuries to Bitcoin, indicating the currency's rising acceptance in mainstream banking.The acceptance of Bitcoin by institutions demonstrates its development as an asset. Institutional participation can help to stabilize and liquidate the market. Investors should keep an eye on institutional developments because they have the potential to greatly influence Bitcoin's direction.Why Decentralization Matters: Crypto Companies Consider Leaving the US Amid Regulatory CrackdownIn response to increasing regulatory scrutiny in the United States, particularly on cryptocurrency exchanges, many American crypto companies are exploring international expansion or even relocating their operations abroad. This shift comes as the U.S. has become one of the most stringent cryptocurrency regulators globally, with several recent enforcement actions by the SEC and other agencies.6 key points on this evolving landscape:Regulatory crackdown: Recent law enforcement actions and regulatory crackdowns have made the U.S. a challenging environment for crypto companies. The SEC filed a lawsuit against Coinbase, alleging that it marketed securities without proper registration. Binance, an international crypto exchange, was also sued by the SEC, leading to its founder being banned from the U.S. securities market.Changing industry sentiment: The crypto industry, once seen as a decentralized system beyond government control, has increasingly sought legitimacy through cooperation with regulators. However, these efforts have often failed to meet regulators' expectations.International expansion: Many American crypto firms are considering expanding into international markets or relocating entirely. Locations such as the Cayman Islands, London, Bermuda, Hong Kong, and Dubai are being explored.Mining companies flocking to the U.S.: In contrast, companies specializing in Bitcoin mining, which requires significant energy resources, are attracted to the U.S. due to its access to cheap electricity.Ongoing tensions and Coinbase’s role: Tensions between the crypto industry and U.S. regulators have been escalating since Gary Gensler, a crypto critic, became SEC Chairman. Disagreements over classifying cryptocurrencies as securities and disclosure requirements have fueled this tension. Coinbase, the largest U.S. crypto company, has been at the center of the regulatory debate. Despite its efforts to cooperate with regulators, it has repeatedly faced challenges from federal regulators. Coinbase has started expanding its international presence, opening an exchange in Bermuda. This move allows foreign users to engage in high-risk trades prohibited in the U.S.Startup opportunity: Smaller crypto startups find international relocation more appealing, offering flexibility and a potentially friendlier regulatory environment.While the crypto industry continues to navigate regulatory challenges, it remains to be seen how companies will balance their global ambitions with the evolving regulatory landscape in the United States.Environmental ConcernsThe energy usage and carbon footprint of Bitcoin have been debated and criticized. Concerns about its environmental impact have sparked debate over the long-term viability of its mining operations.The response of Bitcoin to environmental concerns will be critical to its long-term existence. These concerns can be addressed through innovations in energy-efficient mining and increased utilization of renewable energy sources. Bitcoin's future depends on sustainability and responsible mining operations.Bitcoin's Future: A Resilient Journey ContinuesBitcoin's tenacity in the face of a slew of problems indicates both its continuing popularity and the strength of decentralized digital assets. While it may encounter new challenges in the future, the lessons acquired from its previous experiences can help investors and the greater cryptocurrency sector.As Bitcoin progresses, it will very certainly remain a symbol of innovation, decentralization, and financial sovereignty. Its tenacity in the face of hardship demonstrates the power of blockchain technology and decentralized currencies to reshape the financial world. As they negotiate the ever-changing world of Bitcoin and cryptocurrencies, investors and fans alike must be cautious, adaptive, and knowledgeable. This article was written by Pedro Ferreira at www.financemagnates.com.

Joseph Lam addresses the media over his involvement in cryptocurrency platform JPEX, which is at the centre of city’s largest alleged scam of its kind.

Here's Where Grassroots Crypto Adoption Is Highest Of 154 countries analyzed by blockchain data platform Chainalysis, India ranks the highest in grassroots crypto adoption by far. While countries with higher purchasing power would naturally score better when looking at transaction volumes, according to Chainalysis experts, the index measures where "average, everyday people are embracing crypto the most." However, this result has to be taken with a grain of salt and can't be seen as indicative of a rise in the importance of cryptocurrencies in general. As Statista's Florian Zandt shows in the chart below, based on Chainalysis's Global Crypto Adoption Index, only three countries score higher than 0.5 out of 1.0. You will find more infographics at Statista Apart from India, residents of Nigeria and Vietnam are most likely to utilize cryptocurrencies, while the United States and Ukraine rank fourth and fifth with scores of 0.37 and 0.22, respectively. Of the countries with the highest marks on the index, nine out of the top 20 are in Asia, three in Latin America and two in Africa. The Chainalysis Crypto Adoption Index rates countries based on a variety of factors. It looks at trade values on centralized exchanges and services, peer-to-peer trade volume and DeFi protocol cryptocurrency and retail values. The results are all weighted by purchasing power parity per capita, transformed into sub-indices, the mean of which is then used to calculate a country's final rank and score. This serves as anecdotal evidence to the claim that cryptocurrency is seen by many as a financial equalizer for the un- or underbanked in so-called developing countries, even though crypto scams, hacks and fraud are widespread and substantial improvements to the living conditions connected to crypto in the respective countries have yet to materialize in a measurable way. What does indeed materialize is that crypto can effectively circumvent government restrictions. While China and Russia have each put out a ban on crypto payments and trading, the countries rank 11th and 13th, respectively, ahead of countries like the United Kingdom. Tyler Durden Sat, 09/23/2023 - 07:35

A crypto investor has lost $4.46 million worth of assets to a USDT Approval mining scam. According to a report from the blockchain security platform Scam Sniffer, this crypto scam occurred a minute after the investor withdrew 4.46 million USDT from the Kraken exchange.  Using data from Etherscan, Scam Sniffer also detected that the scammers targeted their victims with a fake wallet address that was manipulated to look like it was from the Coinone cryptocurrency mining exchange. Meanwhile, Peckshield, another blockchain security firm, has provided more insight into this recent crypto scam. Peckshield reports that the scammers have already swapped all USDT tokens for the DAI stablecoin via the Tokenlon decentralized exchange.  Thereafter, these bad actors proceeded to split the loot, sending a little over 1 million DAI to four separate wallet addresses. Over $337 Million Lost To USDT Approval Mining Scams – Dune Analytics According to a report from Dune Analytics, USDT approval mining scams are developing into a crypto pandemic, introducing more people to the crypto space than even credible crypto businesses. Related Reading: TikTok Faces Challenge As Elon Musk Crypto Scams Multiply Similar to most scams, USDT approval mining scams usually begin with the bad actors sending an “innocuous” message to their targets either via email or other online platforms.  Following a response to this message, these scammers will now attempt to build a relationship with their target victims as they gradually introduce them to a “flashy lifestyle” funded by crypto assets.  Sometimes, they may dedicate months to these efforts of building trust before finally prompting their victims to invest in a fraudulent cryptocurrency scheme.  Based on more information from this report, scammers have now stolen over $337.08 million from 21,953 victims through USDT approval mining scams, averaging $21,953 per victim. The report states that the first recorded transaction involving this type of scam occurred on September 23, 2021. From then till now, Dune Analytics states that there have been 49,427 USDT approval mining scam transactions with an average of $6,820 stolen per transaction.  Crypto Scams Still a Growing Menace In other news, crypto scams, in general, still remain a major issue for all investors and enthusiasts alike. Just recently, Billionaire entrepreneur Mark Cuban lost about $870,000 worth of assets after unknowingly engaging with a phishing link.  Related Reading: Thailand Authorities Bust $27 Million Crypto Scam, Over 3,200 Victims Affected Back in August, the CEO of Binance, Changpeng “CZ” Zhao, had also posted on X, alerting crypto users to the increasing intelligence of scammers in the crypto community. The Binance Boss spoke on a specific type of scam known as zero-transfer phishing attacks, advising users on the best methods of prevention and asset recovery.

About 2,000 investors lost money on the JPEX platform which was advertised on Hong Kong's metro.

Satyasundar Barik delves into how a man fashioned his life through a ₹1,000-crore multi-level marketing group built using cryptocurrency and a ‘foreign hand’, until the Odisha police caught up

Since we're all a mixed bag, what matters is what you do with everything that comes in your particular bag.

Here's Where Grassroots Crypto Adoption Is Highest Of 154 countries analyzed by blockchain data platform Chainalysis, India ranks the highest in grassroots crypto adoption by far. While countries with higher purchasing power would naturally score better when looking at transaction volumes, according to Chainalysis experts, the index measures where "average, everyday people are embracing crypto the most." However, this result has to be taken with a grain of salt and can't be seen as indicative of a rise in the importance of cryptocurrencies in general. As Statista's Florian Zandt shows in the chart below, based on Chainalysis's Global Crypto Adoption Index, only three countries score higher than 0.5 out of 1.0. You will find more infographics at Statista Apart from India, residents of Nigeria and Vietnam are most likely to utilize cryptocurrencies, while the United States and Ukraine rank fourth and fifth with scores of 0.37 and 0.22, respectively. Of the countries with the highest marks on the index, nine out of the top 20 are in Asia, three in Latin America and two in Africa. The Chainalysis Crypto Adoption Index rates countries based on a variety of factors. It looks at trade values on centralized exchanges and services, peer-to-peer trade volume and DeFi protocol cryptocurrency and retail values. The results are all weighted by purchasing power parity per capita, transformed into sub-indices, the mean of which is then used to calculate a country's final rank and score. This serves as anecdotal evidence to the claim that cryptocurrency is seen by many as a financial equalizer for the un- or underbanked in so-called developing countries, even though crypto scams, hacks and fraud are widespread and substantial improvements to the living conditions connected to crypto in the respective countries have yet to materialize in a measurable way. What does indeed materialize is that crypto can effectively circumvent government restrictions. While China and Russia have each put out a ban on crypto payments and trading, the countries rank 11th and 13th, respectively, ahead of countries like the United Kingdom. Tyler Durden Sat, 09/23/2023 - 07:35

2023-09-21T20:14:04ZSam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at court as lawyers push to persuade the judge overseeing his fraud case not to jail him ahead of trial, at a courthouse in New York, U.S., August 11, 2023. REUTERS/Eduardo Munoz/File PhotoA U.S. appeals court on Thursday upheld a judge's decision to jail former cryptocurrency billionaire Sam Bankman-Fried ahead of his Oct. 3 trial on fraud charges stemming from the November 2022 collapse of his now-bankrupt FTX exchange.The decision was issued by the 2nd U.S. Circuit Court of Appeals in Manhattan.U.S. District Judge Lewis Kaplan had revoked Bankman-Fried's $250 million bail on Aug. 11, finding probable cause to believe that the defendant had tampered with witnesses.This included his sharing the personal writings of Caroline Ellison, the former chief executive of his Alameda Research hedge fund, with a New York Times reporter.Ellison has pleaded guilty to fraud and is expected to testify against Bankman-Fried, a former romantic partner. In her writings, she described feeling "unhappy and overwhelmed" with her job and "hurt/rejected" from a breakup with Bankman-Fried.A lawyer for Bankman-Fried told the appeals court on Sept. 19 that Kaplan failed to credit the defendant for exercising his First Amendment constitutional right to speak with the press and try to restore his reputation.The appeals court appeared skeptical. One judge said the First Amendment did not protect witness tampering, while another said publicly humiliating someone by releasing personal details could be viewed as an attempt to influence their testimony.But the judges appeared slightly more open to Bankman-Fried's argument that a lack of internet access at Brooklyn's Metropolitan Detention Center was impeding his preparation for trial in the complicated case.Danielle Sassoon, a prosecutor, said her office had taken "extraordinary measures" to help Bankman-Fried prepare for trial, and that before being locked up he spent seven months with internet access at his parents' home in Palo Alto, California."If it is true that he has intimidated witnesses, at a certain point, he makes his own bed, he sleeps in it," Circuit Judge William Nardini said.Bankman-Fried faces seven charges of fraud and conspiracy stemming from the collapse of FTX, the now-bankrupt crypto exchange he founded.Prosecutors accused him of looting billions of dollars in FTX customer funds to plug losses at Alameda, buy luxury real estate and donate to U.S. political campaigns.Bankman-Fried has pleaded not guilty, while acknowledging risk management failures.

In a recent development, pro-XRP legal experts Bill Morgan and John Deaton have taken a swipe at the US Securities and Exchange Commission’s (SEC) Chair Gary Gensler following his recent comments, which show his stance on the Ripple Case. Ripple Case: Gensler a “Megalomaniac” In a tweet shared on his X (formerly Twitter) platform, Deaton criticized Gensler’s supposed disregard for the court, including the Supreme Court. He says people like Gensler “are inherently arrogant” and think “they are above the law.” He further labeled the SEC Chair a “real life example of a megalomaniac.” His tweet was in response to an interview where Gensler was quizzed as to whether or not anything “any court” will say will change his perception of the crypto space and, by extension, cryptocurrencies. Instead of answering the question, Gensler seemed to deflect and stated that he wished a court could say something to speed up compliance in the industry. His comments about the court come at a time when the SEC is involved in an ongoing legal battle against Ripple, a case that could determine whether crypto tokens are indeed securities. Going by this, it would seem that Gensler is hell-bent on getting a court decision that will support his notion that cryptocurrencies are securities and should be guided by the securities laws rather than being guided by the court on whether or not cryptocurrencies fall under the SEC’s purview in the first place.  Meanwhile, Bill Morgan further dissected Gensler’s comments. He stated that Gensler meant that he wished the Commission had “won the part of the Ripple case that matters most” and that since they didn’t, he is hoping that an Appeal court can reverse Judge Analisa Torres’ ruling.  He joked that Genlser would be hoping this happens so they can have their own party in New York, most likely in reference to Ripple’s announcement that it would have a party in New York on September 29 to celebrate its victory against the SEC.  Securities Laws Should Apply To Crypto Industry In that same interview, Gensler mentioned that securities laws should apply to “crypto security tokens.” According to him, there is nothing “incompatible” between those tokens and the securities laws, suggesting that there is no reason why they shouldn’t be tagged as securities. He further stated that investors have much to gain from these tokens being regulated by the securities laws, including the fact they will be protected from fraud and manipulation. He alluded to the fact that many, hoping for a better future, have lost their money to crypto investments.  The SEC and Gensler hope to use the Ripple case to prove that crypto tokens are indeed securities and should be guided by the securities laws. Their interlocutory appeal against Judge Torres’ ruling is focused on the Judge’s decision on Ripple’s programmatic sales and other distributions, as she stated that they didn’t constitute investment contracts. If the appeal goes in the SEC’s favor, the Commission will gain momentum to forge ahead in its enforcement actions. It will also provide a leeway for it to enforce actions against all crypto exchanges for operating as unregistered securities exchanges, just like it already did with Binance and Coinbase.

The tool will monitor crypto wallets and alert the Indian Ministry of Home Affairs about irregular transactions, according to a report.

The Bombardier Global 5000, and Sam Bankman-Fried.Insider; ANGELA WEISS/AFP via Getty ImagesFTX loaned $28 million to a private jet company to finance its purchase of two jets, a court filing says.One of them has been in government custody since February, while the FTX Debtors claimed ownership of the planes in August.The jet company owner repaid $11 million and is "one of the largest Bahamian victims of SBF's cryptocurrency fraud."Sam Bankman-Fried's FTX loaned $28.4 million to a Bahamian aircraft company to buy two private jets, according to a motion filed Thursday in the Delaware Bankruptcy Court.The aircraft are a Bombardier Global 5000 and an Embraer ERJ-135BJ Legacy 600, which the lawsuit says cost $15.9 million and $12.5 million, respectively.The former is one of the biggest purpose-built private jets on the market and can be fitted with luxuries like a movie theater and a bedroom. The Embraer is the business version of the popular ERJ-135 commercial plane.The Bahamian company, Island Air Capital, is seeking relief from an automatic stay which prevents it from operating or selling the jets, following months of discussions with the FTX Debtors and the government.Alternatively, it asks for liens or protection based on what it says are the millions of dollars it has spent improving and maintaining the planes.In the court document, IAC says it owns the two planes and they are operated by Trans Island Airways. Paul Aranha, the CEO of TIA, is the beneficial owner of IAC.Around the same time as the interest-free loan, the court filing says FTX Ventures also signed a term sheet to invest $17 million in TIA, which meant it was poised to become a joint owner of the aviation company.The Bombardier Global 5000, in the Trans Island Airways livery.InsiderPhotos sent to Insider by a former TIA employee, who asked to remain anonymous for privacy reasons, show the Global painted in TIA's blue and white livery. It has since been painted white, per a listing for the plane which also shows its luxurious interior.Two people familiar with the situation told Insider that the Bombardier and Embraer jets were registered under the tail numbers C6-SPR and C6-BDE. They were delivered to TIA in March and August of last year, per the court documents.One of the people, who has direct knowledge of the jets, told Insider that Bankman-Fried never flew on either plane, but he did make numerous other journeys with TIA.TIA's Embraer Legacy 135.InsiderFTX filed for bankruptcy in November 2022 after Bankman-Fried resigned as CEO. He has pleaded not guilty to seven charges including wire fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.The crypto exchange imploded after a CoinDesk report prompted concerns over its viability and customers rushed to withdraw their deposits, but — partially due to FTX executives' lavish spending — it couldn't cover demand.Thursday's court filing says IAC received the loan after a "handshake deal" between Aranha and Bankman-Fried. It adds that Aranha repaid the loan into an FTX customer account, to the tune of more than $11 million."Based on information and belief, Mr. Aranha is one of the largest Bahamian victims of SBF's cryptocurrency fraud," the filing says.Following FTX's implosion, Aranha tried to sell the Global to help repay the loan because there was no business case to keep it, per the filing. The court document says IAC received multiple offers over $15 million, before the US Marshals Service seized it in February. The Global has been parked at Bradley International Airport in Connecticut since late January.The court filing says that the FTX Debtors, who are handling the bankruptcy case to repay customers, have held multiple discussions with Aranha since last December.It adds that Aranha and IAC requested a three-way settlement conference with the government and the FTX Debtors "given the ever-increasing costs associated with the aircraft," but the debtors ignored the request.It wasn't until August 7 that the FTX Debtors claimed ownership of the planes, the filing says. Insider previously reached out to the Debtors' spokespeople about the Bombardier and Global in mid-July, and they declined to comment. They also declined to comment Friday.A spokesperson for Sam Bankman-Fried declined to comment.This is not the first time FTX Debtors have tried to get back assets.In September, it started looking into getting millions back in sponsorships it paid out for celebrities like Shaquille O'Neal, Stephen Curry, and Naomi Osaka.And on Monday, it accused Bankman-Fried's parents of siphoning millions of dollars from the company.Read the original article on Business Insider