Crypto Inside

2023-10-30 10:16:23 Binance And Tether Now Face Legal Scrutiny In The US

United States lawmakers are intensifying legal pressure on cryptocurrency giants Binance and Tether, calling upon the Department of Justice to explore potential criminal charges. During a hearing, Lummis emphasized the need to regulate “unregulated, centralized” foreign crypto firms that contribute to “significant terrorism financing.” In the letter, the lawmakers urged the Department of Justice to act swiftly against Binance and Tether, particularly in light of recent terrorist attacks in Israel.

The letter requested Attorney General Merrick Garland to make a charging decision regarding Binance’s level of culpability and to expedite investigations into illicit activities involving Tether. Both Binance and Tether are prominent figures in the cryptocurrency and blockchain space. The legal situation escalated when the Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US, its global counterpart Binance, and founder Changpeng “CZ” Zhao, alleging unregistered securities platform operations. Tether achieved a legal victory on August 4 when a class action suit concerning its USDT stablecoin was dismissed. The case, initiated in December 2021, had raised concerns about USDT’s backing based on findings from the New York Attorney General (NYAG) and the Commodities Futures Trading Commission (CFTC), as well as Tether’s varying statements about its reserve makeup. Ochish/sharhlash

2023-10-27 19:19:54 ​ Will cryptocurrencies be blocked in US banks due to attempts by regulators to prevent infection?

For the first time, US regulators have issued a joint warning to banks about the risks associated with crypto caused by the massive bankruptcies of several large crypto companies.

Raising concerns about the place of cryptocurrencies in the banking sector, three US regulators — the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) — released a joint statement on the risks of cryptocurrencies for banking organizations.

Notably, they noted that,

“The events of the last year were accompanied by significant volatility and the identification of vulnerabilities in the crypto asset sector. These developments highlight a number of key risks associated with crypto assets and participants in the crypto asset sector that banking institutions should be aware of.”

The fear here is that those risks associated with cryptocurrencies that cannot be controlled or mitigated could be transferred to the banking sector. As such, the statement says that there is currently an increased focus on the crypto sector, with regulators stating that:

“Agencies monitor banking organizations that may be exposed to risks associated with the crypto-asset sector, and carefully consider any offers of banking organizations to participate in activities related to crypto-assets.” Ochish/sharhlash

2023-10-24 16:20:18 FinCEN Targets Crypto Mixers Over Laundering and National Security Concerns

FinCEN’s goal is to mandate financial institutions to report transactions involving international CVC mixing services, which the agency identifies as an “acute money laundering and national security risk.” Notable bitcoin (BTC) and ethereum (ETH) mixing services using Coinjoin enable users to combine their transactions, thereby masking the origins and endpoints of funds. Andrea Gacki, the director of FinCEN, remarked that virtual currency mixing services empower the “ransomware ecosystem, rogue state actors.

Treasury Department’s classifications of multiple cryptocurrency mixing services in the past year, such as Tornado Cash and Blender.io, the new regulations were proposed. It’s alleged that these platforms aided in laundering millions from hacks linked to countries like North Korea. However, advocates of privacy assert that clampdowns on mixers negatively affect ordinary users dependent on them. Coin Center, a nonprofit emphasizing cryptocurrency policy matters, lodged a complaint against the Treasury Department concerning the Tornado Cash prohibition in October 2022, claiming it surpasses the Treasury’s statutory authority. Coinjoin transactions conceal user identities by merging funds from varied origins. Ochish/sharhlash

2023-10-22 14:56:13 Ethereum co-founder Joseph Lubin faces lawsuit over Consensys stock value

Ethereum co-founder Joseph Lubin is facing a lawsuit from more than two dozen former Consensys employees, accusing him, Consensys and other parties of maneuvering valuable assets out of its Swiss holding company. The complaint was filed in New York state court on Thursday. It claims assets — including its web3 wallet MetaMask, partly developed by some of the plaintiffs — were transferred out of Consensys AG, leaving them with worthless shares.

Lubin allegedly arranged to move the assets to a new U.S.-based company, CSI, in 2020, so it could solicit outside investment, with the help of Consensys General Counsel Matt Corva, enabling Lubin to replace the plaintiffs with Wall Street investors. Lubin also brought in investment bank JPMorgan, who, in exchange for its own blockchain business, Quorum, received 10% of CSI, according to the complaint. Corva, JPMorgan and Umar Farooq, Global Head of Blockchain at JPMorgan, are also listed as defendants. When Lubin established Consensys in 2014, many employees accepted lower salaries with the understanding they would receive company equity, according to the suit. Lubin reportedly dedicated 30% of the company to employee stock, with the suing party holding about 9% of that portion. Ochish/sharhlash

2023-10-18 21:46:06 Bitcoin could 'easily' reach $15 trillion market cap, says Anthony Scaramucci

Anthony Scaramucci, founder and managing partner at SkyBridge Capital, continues to be bullish on bitcoin. He now thinks bitcoin could increase by a whopping 2,662% from its current market capitalization of around $543 billion. "I think bitcoin could easily be a $15 trillion asset," Scaramucci said on the OPTO — Invest in Innovation podcast last week. Bitcoin "in many ways is more valuable than gold" and could become a store of value, Scaramucci said, adding that because of those reasons, "we own a lot of bitcoin here."

While Scaramucci, a former White House communications director under Donald Trump's presidency, is bullish on bitcoin, he doesn't think it will become the universal standard of money as some bitcoin maximalists want it to become, at least in his lifetime. Still, "some weird things could happen where you could see nations that are hostile to the U.S. trading with bitcoin or trading with a gold-backed denominated something or other, away from the U.S. dollar because of the way the U.S. has used the dollar in terms of asserting its geopolitical will on others," Scaramucci said. Scaramucci's estimation of the bitcoin market cap implies a price of over $700,000 per bitcoin, given its fixed supply of 21 million coins. The current price of bitcoin is around $27,860. Ochish/sharhlash

2023-10-16 22:24:33 CGI Federal and Partners Pioneering Metaverse Integration for the U.S. Marine Corps

CGI Federal has successfully concluded a real-time pilot within a planetary-scale Metaverse environment, in collaboration with the U.S. Marine Corps, marking a significant milestone in the convergence of digital technology and military operations. The pilot, executed in partnership with Microsoft and Battle Road Digital, involved the integration of the Marine Corps Platform Integration Center’s (MCPIC) logistics and asset management systems with digital twin technology.

Horace Blackman, Senior Vice President of Defense, Intelligence, and Space at CGI, announced this achievement and highlighted its profound implications. He underscored the pilot’s potential to revolutionize the way defense units conduct training, devise strategies, and position themselves for future challenges. Blackman went on to emphasize that these capabilities could serve as a benchmark for various federal agencies seeking to enhance their operational efficiency. the U.S. Marine Corps witnessed a notable enhancement in their capabilities. This included improved visualization, real-time monitoring, simulation, and predictive analytics. Ochish/sharhlash

2023-10-15 00:15:41 CertiK Lays Off: Cuts 15% Workforce Amid Blockchain Challenges!

CertiK lays off about 15% of its staff, resulting in the layoff of a portion of its employees. Co-founder and CEO Ronghui Gu addressed the developments in an email statement, citing the rationale behind the decision as being in response to evolving market dynamics. The restructuring initiative was implemented with the aim of better aligning the company’s workforce with its long-term strategic objectives. CertiK’s unwavering focus on achieving long-term sustainability and resilience in the face of industry shifts.

The CEO’s statement underscored CertiK’s unwavering focus on achieving long-term sustainability and resilience in the face of industry shifts. By realigning its team structure, CertiK lays off aims to position itself strategically within the rapidly evolving blockchain landscape, effectively positioning the company to leverage emerging opportunities and meet the evolving demands of the market. CertiK remains committed to upholding its standards of excellence and innovation in the field of blockchain security. The company’s leadership has expressed optimism regarding the future trajectory of CertiK lays off, emphasizing its dedication to advancing the development and implementation of cutting-edge security solutions within the blockchain ecosystem. Ochish/sharhlash

2023-10-13 01:22:15 CleanSpark Bitcoin Miners Get 20% Enhanced Mining Efficiency

CleanSpark, a leading player in the cryptocurrency mining sector, has made a significant move by acquiring 4.4 exahashes per second (EH/s) of the state-of-the-art Antminer S21 Bitcoin mining machines. CleanSpark’s CEO, Zach Bradford, expressed enthusiasm for the integration of these machines into their mining operations. He emphasized that this move aligns with their commitment to using the most efficient mining technology, which will not only enhance their mining capacity but also reduce energy costs per bitcoin mined.

The Antminer S21 boasts an impressive efficiency rating, consuming just 17.5 joules per terahash (J/TH). This remarkable efficiency outperforms the previous industry leader, the XP, by nearly 20%. The arrival of CleanSpark Bitcoin miners, scheduled for January 2024, is expected to further reduce CleanSpark’s power consumption per bitcoin mined, thereby boosting their profit margins. This acquisition underscores CleanSpark’s commitment to staying at the forefront of the cryptocurrency mining industry and capitalizing on technological advancements for the benefit of both the company and its investors. With these CleanSpark Bitcoin miners, the company anticipates not only increasing its mining capacity but also securing strong bitcoin production at sustainable margins, primarily funded through operating cashflows. Ochish/sharhlash

2023-10-10 23:05:31 Australian Authorities Seize Crypto Worth $1.5 Million From Alleged Drug Dealer

A South Australian resident have been accused of trafficking illicit drugs on the dark web and using crypto for money laundering. South Australian police have arrested an individual charged with drug trafficking and money laundering involving crypto on the dark web. An investigation carried out by the South Australian police, which began earlier in 2023, led to the seizures, along with the arrest of a 25-year-old man from Adelaide Hills, whose identity was not revealed, suspected of illicit drug trafficking on the dark web.

According to the Australian Broadcasting Corporation, the police alleged that the accused used different profiles on the dark web to market various illicit drugs. Superintendent Rice also said that nitazene, which he described as a “highly toxic drug,” was among the drugs seized by the police. According to the detective, nitazene, with an estimated weight of five kilograms, was Australia’s largest seizure to date. There were previous cases of protonitazene suspected to have caused overdoses and played a role in the death of a young man. However, Superintendent Rice noted that the dark web drug dealer was not connected to the death. The accused, who is currently in custody, is set to appear in court at a later date. Meanwhile, there have been several instances of crypto used for criminal activities on the dark web. Ochish/sharhlash

2023-10-09 13:03:29 El Salvador’s first volcano-powered Bitcoin mining project goes live

El Salvador marks the launch of Lava Pool today, the country’s first Bitcoin mining pool powered by renewable geothermal energy. The venture, a collaboration between energy company Volcano Energy and tech corporation Luxor Technology, is the country’s first attempt to harness the abundance of renewable geothermal energy for crypto mining. According to the press release, the Lava Pool will be maintained by Volcano Energy, a public-private partnership that has pledged to commit 23% of its net income to the Salvadoran government.

The pool is set to benefit from Luxor’s Hashrate Forward Marketplace, which offers hedging strategies to protect against market volatility—a mechanism already adopted by leading players in the Bitcoin mining market. Volcano Energy’s CSO, Gerson Martinez, highlighted the importance of this project, stating that it is a vivid manifestation of El Salvador’s pioneering role in the Bitcoin ecosystem. The move emphasizes the country’s ongoing efforts to merge Bitcoin into its energy infrastructure—a strategy that could significantly bolster the economics of new energy projects, particularly in remote areas, providing immediate revenue and offering flexible load management capabilities to support the grid during periods of high demand or stress. Ochish/sharhlash