Over the last week there has been a growing chorus of voices, particularly among certain US senators and congressmen, claiming cryptocurrency is being used to fund terrorism, supporting the likes of the Hamas organization and other terrorist groups. They are now calling for investigations into USDT issuer Tether and exchanges like Binance US.
While we support investigating such allegations, it's equally important to for the industry to immediately shut down any attempts by established anti politicians to fabricate, or exaggerate the claims.
The allegations against Tether and Binance US stem from a Wall Street Journal report that claims these crypto entities facilitated transactions involving individuals and entities subject to U.S. sanctions. The report further suggests that Tether used U.S. bank accounts for potentially suspicious transactions.
If There's Proof, It's Been Hard To Find...
Blockchain analysis company Elliptic says it has found no evidence to support the claims of The Wall Street Journal. They argue that the data has been misinterpreted.
Binance and Tether are so sure the story is wrong that they are urging the U.S. government to verify the facts, saying the Wall Street Journal's report contained misleading statements. Both have unequivocally stated they operate under a strict zero tolerance policy when it comes to providing services to anyone linked to terrorism.
If Shady Journalists and Politicians are Successful in Linking Crypto to Terrorism, We Could See A New Level Of Government Aggression.
The allegations that organizations like Hamas used crypto assets to raise funds before attacks in October have far-reaching implications. They not only affect the cryptocurrency sector but also muddy the waters when it comes to regulatory clarity for the crypto ecosystem in the United States.
No surprise, it's the usual crew of tech-illiterate politicians, the ones we've seen having over-emotional meltdowns during various capitol hill hearings on crypto, who are pushing this narrative now.
Led by Senators Elizabeth Warren and Sherrod Brown, the senators recently told the press they've written to the White House demanded answers about the role of cryptocurrencies in recent events, specifically attacks against Israel. They've also questioned the White House about its plans to prevent the use of cryptocurrencies for terrorist financing.
What they're doing is obvious - making sure they can still say 'We never claimed crypto was being used to fund terrorism' - and instead they just 'asked what we can do to prevent that from happening' - fully aware that this advances a misconception that crypto is key to shutting down terrorism financing, all while lacking any supporting evidence.
What's ironic in all of this, is that traditional banks have had a long history of being caught, knowingly or unknowingly, moving funds for everything from terrorists to cartels.
Where are those bankers today? Still fully operational and controlling billions.
ING helped Iran move billions while under sanctions, they paid $619 million in fines. Standard & Charterer's also paid fines of $340 million after hiding being caught hiding records of Iranian clients transactions. Or HSBC who basically became the official bank of Mexican drug cartels - leading to a fine of 1.9 BILLION.
In Closing...
Instead of rushing to judgment, it's crucial to conduct thorough investigations and present concrete evidence The truth is, if there is any crypto being used to fund terrorists, there's no signs any company has helped them, and the amount must be so small that it isn't enough for researchers to spot on the blockchain.
Therefore, we must openly refuse to accept more blame than banks whos violations involved MUCH larger amounts.
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Author: Jules Laurent
Euro Newsroom |
The SEC's legal battle against Ripple involved coming after them on 2 fronts - first was their claim the company illegally profited by selling an unlicensed security (XRP Tokens) violating the Securities Act of 1933. The second targeted the company's co-founders Christian Larsen and Bradley Garlinghouse, saying they were the ones who made the decisions at the company, so they were charged with "aiding and abettting”.
Today, the SEC's targeting of Larsen and Garlinghouse has officially come to an end as District Judge Analisa Torres announced that the US securities regulator notified the court that it would not continue in the case and has issued a “voluntary dismissal”.
Ripple's lead lawyer Stuart Alderoty shared the news first saying;
"The SEC made a serious mistake going after Brad & Chris personally – and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC.
That’s 3 consecutive wins for Ripple including the July 13 decision ruling that as a matter of law XRP is NOT a security, the Oct 3 decision denying the SEC’s bid for an interlocutory appeal, and now this." on X.
Current CEO Brad Garlinghouse responded saying;
"In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a decade.
The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses. How many millions of taxpayer $ were wasted?! Feels good to finally be vindicated."
FTX a Massive Blemish On An Already Troubled SEC...
The SEC's 'crack down' on crypto has targeted companies like Coinbase, Binance and Ripple - but where are the investors accusing these companies of wrongdoing? Who did Coinbase, Binance, or Ripple scam? You would think reddit and other crypto related forums would be full of these complaints, but when searching for terms that should lead to them, nothing is found.
While the SEC was busy targeting these companies, FTX was actively misusing users funds and behaving suspiciously fearless of being caught. Ironically, it was one of the people under SEC investigation who brought the FTX issue to light - Binance CEO 'CZ'.
This means if CZ had not exposed Sam Bankman-Fried, FTX would still be freely spending their users funds, while their top 2 competitors faced SEC harassment - suspicious to say the least.
It makes you wonder - could SEC deliberately be hiding corruption by appearing ignorant and disorganized?
The Strangest Contradiction...
The most alarming and confusing factor in the SEC's current actions has to be the fact that the SEC evaluated Coinbase just a couple years ago, when they approved the company to go public and sale shares of their stock. This process involves a deep evaluation of the business, and obviously, if a business's main source of income was unlawful, they would not have been approved.
But they were approved. Coinbase even passed a phase where the SEC asked questions about any parts of the business they wanted clarification on, Coinbase answered them, and they were approved.
Nothing has changed since Coinbase was worthy of SEC approval. There's no new leadership at the SEC since they deemed Coinbase's business legitimate just two years ago, Coinbase isn't offering anything now that they were not then. But seemingly out of nowhere, suddenly Coinbase is operating outside of the law.
So SEC saying; just because they approved a company seeking approval to go public and sell share shares on the stock market, it does not mean that company is legitimate - no one has been able to make sense of why the SEC is now undermining themselves in such an extreme way.
Next For Ripple...
While the charges against company founders are dropped, the case against the company itself is still considered ongoing. While the SEC lost on their first attempt, the last statement from them was that they are appealing that decision.
But some say dropping the charges against the founders is a sign they may do the same with the charges against the company - because if the company is guilty, those running it would be as well - it would be odd to drop one and not the other.
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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News
In a significant stride towards sustainability, Bitcoin mining has witnessed a remarkable transformation. A recent study from the University of Cambridge reveals that the energy efficiency of Bitcoin mining has soared to be "20 times greater" than figures from 2015.
But what does "energy efficiency" mean in this context? Simply put, it's the ability to achieve the same output using less electricity. When applied to the realm of mining, there have been notable advancements in devices operating on the Proof of Work (PoW) algorithm. These devices can now mine more Bitcoins while consuming equal or even lesser energy.
In his presentation at the World Digital Mining Summit 2023, Alexander Neumüller, an esteemed researcher at the Center for Alternative Finance (CCAF), attributes this efficiency leap to technological innovations in the mining sector. These advancements have not only reduced electricity consumption but also bolstered the processing power of the Bitcoin network.
Highlighting the magnitude of this progress, Neumüller emphasized an astounding "20-fold increase" in Bitcoin mining's energy efficiency over the past eight years.
Historically, Bitcoin mining has been criticized for its hefty energy consumption, which many environmentalists claim leads to increased pollution. However, with the dual approach of enhancing energy efficiency and integrating renewable energy sources, the cryptocurrency industry is making strides towards a greener future.
Story Published Sept 10
Update Added Sept 16: Jump to update
In a shocking turn of events, Vitalik Buterin's official Twitter account was compromised by hackers on Saturday, September 9, 2023. The breach led to a loss of nearly $700,000 in cryptocurrencies, highlighting the vulnerabilities even high-profile figures face in the digital realm.
The Deceptive Tweet
The hackers, with just a single tweet, managed to deceive a significant number of Buterin's followers. The tweet announced a purported free NFT giveaway from Consensys, a renowned blockchain technology company.
Many followers, seeing the tweet from the official account of Ethereum's creator, were lured into a trap. The link provided in the tweet redirected users to a malicious website designed to exploit their trust.
This type of scam, known as a 'drainer' tricks users into connecting their cryptocurrency wallets to a seemingly legitimate website. Once connected, the hacker can then transfer all assets from the victim's wallet to their own.
High-Value NFTs Stolen
In addition to the stolen cryptocurrencies, the hackers made away with two high-value 'Crypto Punks' NFTs. These digital collectibles have gained immense popularity and value in recent years.
The stolen NFTs were priced at a staggering 153.62 ETH (approximately USD 250,000) and 58.18 ETH (USD 95,000) respectively.
We finally have a response from Vitalik, apparent a sim swap was the method used.
While the hacker is blame,, at least a little of the blame must go to T-Mobile whos employees should be properly trained to spot a scam that is several years old.
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In the world of cryptocurrency, Cardano stands as a unique venture with far-reaching implications beyond profit. This blockchain-based platform, backed by meticulous academic research, has cultivated a robust community that has grown over time.
Cardano has suffered increasing volatility in recent months as ADA investors sought for signals of the rollout of its delayed Vasil upgrade, making a Cardano price projection for the cryptocurrency more challenging than it may have otherwise been, especially in light of a market rebound in early 2023.
If you’re an investor or trader looking for price predictions for the upcoming years, you’re at the right place. Remember that this is not financial advice and the prices of Cardano can quickly change to unprecedented levels, so take all crypto advice with a grain of salt.
Cardano (ADA): The Basics
Cardano, often dubbed as the third-generation blockchain, embodies a decentralized proof-of-stake (PoS) network. At its heart lies ADA, the cryptocurrency of Cardano, paying homage to Augusta Ada King, Countess of Lovelace—a pioneering figure in the realm of computing. This digital currency is an integral part of Cardano's PoS consensus mechanism, rewarding participants in the form of ADA for their contributions to the blockchain.
What Is the Process of Cardano Staking Pools?
Central to Cardano's architecture is the Proof-of-Stake (PoS) consensus algorithm, a departure from the energy-intensive PoW approach. PoS introduces the concept of staking, where individuals commit their coins to become validators, ensuring the network's integrity.
This process unfolds through stake pool operators and owners. Stake pools, akin to trusted nodes, validate transactions, while individuals can either establish their own pools or participate in existing ones. The symbiotic relationship between stake pool owners and operators underscores the intricate dance of responsibility and contribution.
2023 Price Prediction for Cardano
With 2023 ushering in a market resurgence, ADA has experienced heightened volatility. This phenomenon can be attributed to the anticipation surrounding the delayed Vasil upgrade. However, within this narrative, three pivotal factors demand attention in predicting Cardano's price trajectory.
Market dynamics: The third quarter of 2023 holds immense significance. ADA's ability to maintain its current support level in the midst of market shifts will offer insights into its resilience. A market downturn, coupled with the SEC designating ADA as a security, has generated apprehension. The lingering SEC v. Ripple case, laden with uncertainty, could potentially dissuade new investors.
Interest rate impact: The resurgence of interest rate hikes can cast shadows on ADA's price outlook. As interest rates rise, consumer spending contracts, subsequently impacting financial markets. The correlation between interest rate hikes and ADA's value underscores the nuanced interplay between market dynamics and economic forces.
Global acceptance: While challenges within the US regulatory landscape persist, global acceptance of cryptocurrencies continues to burgeon. Nations like the United Arab Emirates, the UK, and Hong Kong are embracing cryptocurrencies. Cardano's potential integration of "RealFi," aimed at bringing decentralized finance to the tangible world, presents opportunities for broader adoption and price growth.
2024 ADA Price Prediction
The legal battle between XRP and the SEC showcases that coins can appreciate even amidst regulatory turmoil. However, the outcome of ongoing SEC battles holds sway over the entire Crypto sphere. Amidst global debates on decentralization, the resilience of ADA is poised to be tested.
Optimism prevails as the world embraces crypto, yet the US regulatory stance looms as a potential damper. A forecasted ADA cost of $0.95 by 2024 is underscored by potential highs of $1.55 and lows of $0.35; a spectrum of possibilities underlined by regulatory shifts and market sentiment.
2025 Price Prediction for Cardano
By 2025, the Cardano ecosystem might be flourishing. Cardano has so far drawn criticism for having fewer dApps and TVL than Ethereum and for having a network that has developed significantly more slowly.
Cardano is less interoperable than Ethereum by design, which has stifled its development thus far. Longer term, however, this might be advantageous for users because Cardano is built to be decentralized, scalable, and safe.
The development of "RealFi" is Cardano's stated goal, according to research firm Input Output Hong Kong. Since many of the individuals who may most benefit from DeFi are now unable to access it, the term "RealFi" refers to bringing DeFi to the actual world. With Cardano, value transfers across borders will be seamless and inexpensive.
The 2025 ADA price will probably reflect the success of the deployment. As a result, at the end of 2025, our ADA price prediction pegs the price at $2.80. Depending on how the ecosystem develops and how the recent SEC claims turn out, people also anticipate potential highs of $3.50 and lows of $2.10 in 2025.
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Guest Author: David Lim
There's a real danger living in a country where tech-illiterate elderly politicians create policy.
Biden looks ridiculous talking about this elderly-brained fantasy of raising $3.5 billion by taxing crypto miners.
"One new proposal in this year’s Budget, the Digital Asset Mining Energy (DAME) excise tax, is an example of the President’s commitment to addressing both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of current practices for mining crypto assets (crypto mining, for short"). After a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in crypto mining."
Occasionally there's moments with some of our older politicians where I'm reminded just how bad it is - of course I don't expect them to understand crypto, but the not grasping that this business can operate anywhere means he doesn't understand the basics of the internet.
The press release goes on to gloat that it will "raise $3.5 billion in revenue over 10 years".
Another Way To See This: LEAVE The US, Increase Profits by $3.5 Billion Over 10 Years..
I can only imagine Biden thinks these companies will 'have to stay where the mines are - you can't take a mine with you' - this is actually slightly less stupid than believing you can tell a relatively small industry "you'll make $3.65 billion more if you leave the US" and think they will stay.
This exposes another cause for concern - no advisor told him miners can set up operations anywhere in the world where there's internet access and electricity? If one country imposes heavy taxes or regulations, miners can easily relocate to a more favorable jurisdiction.
Once the global tech leader, America has become the grumpy, confused old man yelling "get off my lawn" while the house next door is having a BBQ and invited over the entire neighborhood.
Because that's what is happening - countries with younger leaders, who aren't afraid of technology are actively competing to bring in the companies the US is scaring away.
Some mining companies bring in a substantial amount of money, and the administration seems oblivious to the fact that their proposal is one that simply delivers this money to other countries - and the $3.5 billion someone misled the President in to believing just isn't coming. I'd be shocked if 10% of that is collected.
These blunders in policy decisions, especially in areas as dynamic as cryptocurrency, can have long-lasting implications for a country's economic and technological future.
Ironically, Bad For The Environment As Well...
Politicians are satisfied if they do something that gives the 'appearance' of helping the environment. When the United States increased emissions standards in the 90s and early 2000s, many of its factories closed, and their workers lost their jobs. But the companies that owned those factories still needed to make whatever product they sold, so the factories simply popped back up in places like China - where there were virtually no environmental regulations at all.
The end result was the same product, more pollution then ever before when manufacturing it, and the finished product now needed to be shipped to the United States to sell.
Only since 2021's crypto ban in China has the US been the leading country for crypto mining, which was also an environmental success, thanks to states like Texas and Florida Chinese mining companies, previously running on coal fueled power plants, were now in the US and primarily powered by natural gas.
Sure, crypto has had its ups and downs - but none of crypto's downs came close to the 'dot com bubble' bursting which wiped out $7.5 TRILLION from the market, and people's retirements. The market cap for all crypto was about 30% of that at it's high.
While thousands of companies went under, it left the United States with Google, Microsoft, Apple, Intel, Cisco, Adobe, which have since made up for the losses of every failed tech startup and then some.
Strange how no one is saying 'we should have banned American's from investing in tech startups' even with losses that dwarf any failed crypto.
I'm located in Silicon Valley, and similar mistakes are driving companies away from here already.. Tesla's moving to Texas, and we're already seeing when a big name tech company needs more office space, they're not building it in California. This is because the workers with the skills they need are turning down offers to work here, and taking jobs with lower pay in other states - because once you factor in rent prices and taxes, they have more money left over even with a smaller paycheck in another state.
While California's Mismanagement Pushes Companies to Other States, Biden's Plan Brags that No State Will be Able to Escape a Federal Nation-Wide Tax...
The tech industry, crypto included, has shown they're willing to pay taxes when the tax rates are reasonable and fall somewhere near the average for other businesses. But adding an additional 30% to a company's already largest expense (electricity) will make it hard to resist when smarter countries call offering tax breaks.
One final thing to consider - there's a number of publicly traded crypto mining companies in the US, I wonder how investors would react if they were invested in a company that began paying this new tax, while competing companies that relocated were obviously benefiting from it when comparing earnings reports. Would we see share holders demanding companies free themselves of this optional 30% increase in expenses?
Asking to remain unnamed 'because this could still be anyone from some 17-year-old who got lucky, to a group of military-grade hackers from a rogue nation' one of the co-creators of one of the major mining pools involved shared this breakdown of what's been happening behind scenes over the last few days following the massive hack of DeFi platform Curve.
On Sunday, August 6, the deadline expired for what would be most hackers' dream come true - an offer to return 90% of the stolen funds and keep the remaining 10% of the approximately $62 million stolen, without repercussions.
However, things didn't go as straightforward as one might expect...
I assumed we would either see those terms being met, or none of it returned. Why give some back if it's not enough to stop a global manhunt where you are the target? Especially when the offer includes keeping a few million.
But that's what happened, as most of the funds were returned, but they remain target of an investigation that just went in to overdrive, first by re-allocating some of the funds they were prepared to let the hacker keep, now going towards the bounty offered for information that leads to his location.
Starting August 5th, the individual or group responsible for the Curve protocol hack began transferring funds back to one of the impacted pools, Alchemix Finance. This saw a return of $22 million, divided into 7,258 ethers (ETH) and 4,821 alETH.
Moreover, another operation enabled Metronome to recover $13 million, adding another layer of complexity to the unfolding events.
The JPEG'd pool, having experienced a full return of their stolen assets amounting to $11.5 million (5,495.4 Wrapped Ethers or WETH), announced they would not pursue legal action. Instead, they labeled this a “white hat ransom” and agreed to the initial offer, rewarding the hacker with the promised 10%.
That left roughly $18 million still missing - so as the hacker's offer expired, Curve announced a public reward of $1.8 million (10% of the total value) for information leading to the recovery of the remaining funds.
If the hacker told any friends, he better hope they like him more than a $1.8 million payout...
Anything being returned is a sign that whoever these hackers are, they're probably not working for their home government, and without that level of protection, they may discover things are a lot harder than expected for internationally wanted criminals with $2 million rewards attached to them - spending any of that stolen crypto may bring them more paranoia than enjoyment.
But Curve says there's still one way they would be willing to take their search off the table - if the hacker decides to return the full amount - the 'keep 10%' part is no longer a part of the deal.
Curve's primary focus has now shifted from trying to resolve the situation, to hunting down and "relentlessly pursuing" the individual or group responsible until they are apprehended.
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Author: Jules Laurent
Euro Newsroom |
US Prosecutors Seek to Put Sam Bankman-Fried in Jail Before His Trial:
US prosecutors are seeking to detain Sam Bankman-Fried before his trial. He's currently released under an agreement to remain in his parent's Palo Alto home until trial.
Decentralized Cloud Platform Aethir Closes Pre-A Funding Round at $150M Valuation:
Aethir, a decentralized cloud infrastructure platform, has successfully closed its Pre-A funding round, reaching a valuation of $150 million. A sign major investment is returning to blockchain startups.
Singapore High Court says Crypto is Should be Considered Property:
In a landmark decision, the Singapore High Court has recognized crypto as legal property. This ruling provides protection to cryptocurrency holders and could influence how other nations regulate
cryptocurrency.
Bitcoin might just soar to a whopping $120k by 2024's finale. That's what the big brains at Standard Chartered Bank are saying. Those outside of the UK may not understand exactly who that is - this bank is massive here, with 85,000+ employees and locations across the country.
They reckon Bitcoin's price rises, miners will be stashing away more than they're selling. Throw in all the new instructional investment coming in - and you end up with a lot of buyers fighting over a very small, and shrinking supply of BTC being sold.
Back in April, the same bank forecasted Bitcoin could hit $100k by 2024, thinking we were out of the dreary 'crypto winter'. But now, the bank's head of crypto research, Geoff Kendrick, says there's a chance it could go beyond that.
Why's that? Well, Kendrick explains, with every Bitcoin they mine being more valuable, miners can sell fewer of them and still keep the cash flowing in. This means less Bitcoin in the market, pushing the price even higher. Simple supply and demand.
Bitcoin's had a strong year, rocketing up 80%...
But at the current price of $30k and change, we're till a far cry from the record $69k it hit last November.
2022 was rough, with heaps of dollars wiped off the sector as central banks got tough with interest rates and big crypto names like FTX exchange crashed and burned. But surprisingly, this year's failure of some old-school banks has actually helped crypto bounce back.
The More Bitcoin is Worth, the Less Miners Sell to Cover Costs...
The bank thinks the predicted price hike is because Bitcoin miners, who create about 900 new Bitcoins a day globally, might soon need to sell less of their stash to cover their costs - mostly the electricity needed to power their monster network of mining rigs..
According to Kendrick, miners are currently selling most of their newly minted coins. But if the price reaches $50k, they'd probably only need to sell 20-30%. So instead 900 new bitcoins hitting the market daily, only 180 to 270 would.
"Over a year, that's like reducing the number of coins miners sell from 328,500 to somewhere between 65,700 and 98,550 - meaning about 250k less Bitcoins flooding the market each year," Kendrick explains.
250,000 Less Bitcoins For Sale Means Buyers Will Have Convince Others to Sell - That Means Offering More Money...
And in another twist, come next spring, the total number of Bitcoins that can be mined each day is set to halve. It's part of Bitcoin's in-built design to limit the supply and keep its appeal.
But let's not forget that Bitcoin has a history of wild price guesses. Back in November 2020, a Citi analyst said Bitcoin could climb as high as $318k by the end of 2022. It ended up closing that year down about 65% at $16,500. So take all these predictions with a pinch of salt.
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FTX may be making headlines again soon, and finally not for more details on their spectacular fall from grace, actually, the total opposite - their potential resurrection!
In April we broke the story of an FTX relaunch even being a possibility, when our source inside the new FTX team told us they were considering two options - to pay back what they can and then close for good, or, the more intriguing option, re-open FTX for trading.
At that time they had just begun researching sentiment among former users, asking if all their funds had been returned to them, and knowing Sam Bankman-Fried was gone for good, would they consider trading at FTX again?
Then, if they determined enough users would return, they would still need to convince their larger backers, some of whom are owed millions, to go awhile longer or accept a smaller payment at first. However, if they support FTX's re-opening they could get 100% of their money back in the long run, because FTX would once again be generating profits.
That's Where We Left Off, And We Now Have An Update...
According to our source, re-launching the exchange is now their 'official' goal, as they've been instructed to begin preparing as if it is happening for sure — an order that comes directly from new CEO John Ray.
"I'll word it like this: it's not 100%, but it just went from a 50/50 chance to probably a 90% chance of FTX re-launching" our insider explained, but they still have some challenges ahead "Right now we're legally a bankrupt company, so we don't have the freedom to just do something we want to, there's additional oversight, and a process where we propose something and get approval to do it first."
When asked if they believed they would receive that approval, they told us "I think John (CEO) wants to make sure the proposal leaves no reason to say no. They'll want to see a company that fixed everything that went wrong under Sam, and see we've taken steps that would make a repeat impossible." I asked how close they were to being able to make those claims, and was told, "We can say all that now and it would be completely true" Reminding him I still needed an answer to the question, they added, "oh, yeah - yes" (they think the re-launch would be approved).
New Revelations...
This next part is a big deal - while I personally didn't have funds on FTX when it shut down, a lot of people did. Since then, the media's coverage of the situation would probably give people the impression that most of what they stored on FTX is gone.
But when I asked what kind of responses they received from former FTX users when mentioning a possible re-launch, I got a surprising answer "First, they say F-off and they would never use a platform that basically stole from them. Fair enough. But then you ask, what if they didn't take anything from them? What if it opened and all the funds they left there were still there?"
'Are you saying this is what would actually happen?' I asked "I'm not in accounting, so I can't say this is the case with 100% of accounts, but one thing you'll probably be hearing if FTX re-launches or when Sam's case goes to trial - he didn't really mess with the FTX US funds".
This Wasn't a Total Surprise To Hear - It May Be Sam Bankman-Fried's Secret Weapon...
Back at the beginning of the year when FBI agents brought Sam back to the US where he was arraigned and pled 'not guilty' to the charges against him it seemed like the response from the crypto community was 'he's a liar and that won't work once he has a trial'.
But that made no sense to me. Sam's parents are both literally famous lawyers and Stanford Law School professors - Sam takes their advice. So why would they advise him to fight the charges against him when shortly before his arrest he appeared on various podcasts admitting to misusing user funds - his point at the time was 'I wasn't stealing user funds, I just got confused, used funds that belonged to my users, and lost some of it.'.
I could only come up with one theory that made sense, and published 'The Twisted Way Sam May Be Found INNOENT' which goes in to more detail, but basically the only way someone who already admitted so much on video could go to trial and stay out of prison is if he only misused funds belonging to non-US citizens, and only did that while at his company headquarters, which is also outside of the US, in the Bahamas.
What does the US justice department do when laws are broken in another country and none of the victims are American? Absolutely nothing.
Users finding out all the crypto they left on FTX is still there would be great news, which I said in our conversation, but as we suspected, they warned that non-US may have some bad news coming soon. "It's the funds from FTX's international platforms that Sam really screwed with." our source said "We're (his team) not involved with any of the international stuff, but several times I've had to talk with some of the guys that are. For the first few months they always sounded stressed out and exhausted, they were cleaning up one hell of a mess."
But recently, even the team cleaning up the worst of it started to sound less miserable. "Last couple of times I talked to them, they seemed way more chill. Remember Bitcoin was at like $20k when FTX shut down, FTX is holding a lot of BTC and other coins that have gained almost $2 BILLION since trading stopped." I didn't really think of that until now, but it makes sense. "Yep, so that instantly becomes funds we can use towards making users whole, if the market continues this way, there's a chance FTX won't owe anyone anything".
That really would be a great ending to an otherwise miserable story, if HODLing pays the rest of FTX's debts.
In Closing...
In a remarkable turn of events, Bitcoin suddenly went on the move, and smashed through the $30,000 barrier. This comes as traditional banking institutions that have dabbled or shown curiosity in crypto realm begin to make actual moves in to the space.
This breakthrough is being hailed as a positive omen by investors and pundits alike, who are speculating that this could be the starting gun for a new Bitcoin rally.
BlackRock's Bitcoin ETF Proposal: A Potential Game Changer on the Horizon?
In related news, BlackRock, the world's most substantial asset manager, has been making waves with its proposal for a Bitcoin Exchange-Traded Fund (ETF). If given the green light, this could be a watershed moment for the cryptocurrency industry, potentially paving the way for more institutional investors to join the party. The proposal has ignited a flurry of speculation and debate within the financial community, with all eyes now on the regulatory authorities and their impending decision.
Bitcoin's Price Rally Levels Off - Just A Breather, Not a Full Stop..
Bitcoin is holding above the $30k mark so far, and that's about all it has done in the last 24hours. But analysts overwhelmingly believe this is a pause rather than the end of the upward trend. While the digital currency has seen some turbulence in recent days, many are viewing these dips as attractive opportunities to buy.
The overall sentiment remains bullish, with experts suggesting that the current market conditions could be the precursor to further gains in the near future.
Next Rally in Sight? Major Bank Forecasts a MASSIVE Multi-Trillion Market Shift Towards Crypto...
Adding fuel to the crypto fire, a major bank has dropped the bombshell that a market shift to the tune of $15 trillion could be on its way to Bitcoin and other leading cryptocurrencies such as Ethereum, BNB, XRP, Cardano, Dogecoin, Tron, Solana, and Polygon. This forecast underscores the growing acceptance of digital currencies as a bona fide asset class and their potential to revolutionise the global financial landscape.
Japanese banking giant Nomura's digital asset subsidary Laser Digital says a survey of professional investors managing almost $5 trillion show 96% want to invest in crypto.
In closing
As major financial institutions showing increasing interest in the crypto space is brining immediate demand, and adding overall legitimacy to Bitcoin's public image. On both fronts there's still a lot of room to grow - the rally has just begun.
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Global Crypto Press was the first crypto news outlet to cover this story back in February when all we had was a single inside source. Three months later, our source's information seems to have been 100% accurate, as the 'rumors' from then are now part of official statements made by the government of Hong Kong.
For those just joining the story here, the important thing to know is that in 2021 China implemented a crypto trading and mining ban and ejected any company that existed for those purposes. China went from the country with the most mining power, to completely off of the top 10 list, with small countries like Malaysia and Iran now outperforming them.
You may wonder - why is that surprising? If they banned trading and mining, isn't it predictable that a sudden drop in mining hashpower coming out of China would follow?
It's a fair question, and most people did predict the effect of a Chinese ban on crypto... at least once among the 6 times they 'banned' crypto before this, just to have its popularity continue to grow.
But the 2021 ban was unlike any of their previous attempts, it was backed with enforcement as businesses that continued to leave their bitcoin miners running found themselves being raided, and their hardware seized. Now, with the choice to risk being next or relocate, companies either moved to other countries or simply sold their mining hardware to a company that was.
This is how the situation remained, until now.
Hong Kong is a unique situation, once fully independent of China, they are now officially 'part of China' - but unlike any other area of the country they maintain the ability to pass their own laws and remain economically independent from the federal government.
It's with these additional freedoms that Hong Kong has just announced they will begin issuing permits to crypto based businesses beginning June 1st.
- Secondly, increased innovation in the crypto space. China is known for its technological prowess, and if Chinese companies are allowed to operate in the crypto space, it could lead to new technological advancements and applications for blockchain technology.
Unfortunately, Chinese technological advances are often the result of stolen data as the nation infamously targets tech companies around the globe with the intent of recreating propritaty tech.
- Third likely impact we'll see is this decision influencing other countries' policies towards crypto. If China, once a staunch opponent of cryptocurrencies, reverses this to allow them it could encourage other countries that have been hesitant about cryptocurrencies to reconsider as well.
I can't think of any examples of countries willingly staying out of a market both the US and China are in.
...we're hearing that Hong Kong leaders are NOT being met with disapproval from China's leadership in Beijing "there's nothing to indicate mainland officials don't want this to happen, and I believe we're well beyond the point where they would make their stance known" our source explained.
Beijing quietly allowing this to happen may be thanks to some of China's wealthiest business leaders, who have been complaining to officials about being restricted from a market with huge growth potential..."
At the time we published that article Hong Kong was still several steps away from this becoming a reality, now they're on the final step having announced their intention to issue permits for crypto companies to operate there starting June 1st.
It's a situation where approval from the ruling Communist Party will come in the form of silence. Hong Kong is providing a way for the ruling party to reverse their 2021 crypto ban without the President or other high ranking party leaders having to acknowledge it.
Considering we're just 3 days away from Hong Kong officially open to issue permits for crypto companies to provide their services to citizens, we believe if Beijing disapproved they would have made that clear by now.
In our opinion, this is actually going to happen.
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Author: Adam Lee
Asia News Desk
Breaking Crypto News
We're learning of this only because PayPal's required quarterly report has now been filed with the SEC, from there you'll have to go 16 pages in before it's even mentioned.
It's rare for a company spend over $300+ million on anything without letting the public/and press know about it - but when PayPal decided to load up on crypto they clearly also decided it would be smarter to stay quiet while doing it.
Why So Secretive?
My guess is; they didn't want prices to go higher... yet.
They did their buying over a 3 month period, and if news got out that the worlds biggest online finance company was spending so much on crypto, other companies may follow. It doesn't help them if prices go up while they're still buying.
While the report does not give the number of Bitcoins PayPal holds, it does give their total USD value of $499 million. This is based on Bitcoin's total value at the end of March, so doing the math and assuming they were paying slightly under market value by doing large OTC trades, we're estimating PayPal holds somewhere around 17,500 BTC.
They also spent another $110 million on Ethereum, and another $19 million on all other cryptocurrencies.
So Far in 2023 PayPal's Added Another $339 Million In Crypto - Bringing Total Near $1B...
PayPal began 2023 already owning over $600 million worth of cryptocurrency, but after the last 3 months of aggressive buying, they're almost able to join the small group of companies and individuals holding over a billion worth of crypto.
However, breaking $1 billion total is now within reach, and can be done without PayPal having to buy more.
We estimate Bitcoin trading around $35k and ETH holding over $2k would be enough to put PayPal's total into the 10-digits.
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Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News