The Justice Department has designated Forensic Risk Alliance (FRA) as the external monitor for Binance Holdings Ltd. This decision comes in the wake of Binance’s acknowledgment of breaching U.S. anti-money laundering regulations and sanctions. Bloomberg’s Ava Benny-Morison and Chris Strohm were the first to report this development. Known for its expertise in fraud investigations and […]
Bitcoin News
Legal Action Forces US Energy Department to Suspend Crypto Mining Investigation
Following legal action initiated by Riot Platforms and the Texas Blockchain Council against the U.S. Department of Energy (DOE), the department’s statistical branch, the Energy Information Administration (EIA), has put a temporary hold on its bitcoin mining survey and quarantined the data gathered to date. DOE Puts Bitcoin Mining Inquiry on Hold Amid Legal Challenges […]
Bitcoin News
US Defense Department Urged to Integrate Bitcoin to Maintain Superpower Status
A U.S. Space Force major has urged the Department of Defense to integrate Bitcoin as an “offset” strategy. Emphasizing that “Integration of this technology could revolutionize national defense strategies in cyberspace,” he stressed: “Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations.”
‘Bitcoin Represents Not Just a Financial Innovation but a Paradigm Change in Cybersecurity’
Major Jason Lowery wrote an open letter to the Defense Innovation Board on Dec. 2 regarding “the national strategic importance of Bitcoin,” he described on Linkedin. Lowery is an astronautical engineer serving in the U.S. Space Force, the newest branch of the U.S. Armed Forces. The Defense Innovation Board provides independent recommendations to Department of Defense (DOD) leaders on emerging technologies and innovative approaches that the DOD should adopt to ensure U.S. technological and military dominance.
“During my studies at the Department of the Air Force’s Air Command and Staff College, we were introduced to the concept of an ‘offset’ as a strategy that leverages technological advancements to counterbalance or negate an adversary’s traditional military strengths or numerical superiority,” Lowery explained in his letter. “I contend that reusable proof-of-work [PoW] networks like Bitcoin represent an offset strategy for the 21st century.”
He claimed that it’s a misconception that Bitcoin’s use is “limited to protecting financial information rather than practically all forms of data, messages, or command signals,” noting: “As a result, this misconception underplays the technology’s broad strategic significance for cybersecurity, and consequently, national security.” He wrote:
Bitcoin represents not just a financial innovation but a paradigm change in cybersecurity, aligning perfectly with the concept of a strategic offset.
After explaining his thesis, Lowery stated: “Proof-of-work technologies, as exemplified by Bitcoin, have the potential to significantly reshape our understanding of warfare in the cyber domain.”
He continued, “Considering their proven impact, it’s advisable for the Department of Defense to begin formally investigating the cyber security applications of these technologies,” emphasizing: “Integration of this technology could revolutionize national defense strategies in cyberspace and lead to a major shift in how to handle cyber conflicts.”
In conclusion, Lowery stated: “I strongly recommend that the Defense Innovation Board advise the Office of the Secretary of Defense to prioritize the investigation of the national strategic importance of proof-of-work protocols like Bitcoin.” He described:
Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations, especially in an increasingly digital and interconnected world plagued by cybersecurity vulnerabilities.
While many in the crypto community commend Lowery for taking the initiative, some pointed out that this thesis is inaccurate. “Lowery spins a nice narrative, unfortunately it’s nonsense,” said Bitcoin proponent Jameson Lopp, citing his own analysis that highlighted key points of disagreement. Peter McCormack also noted, “His thesis is wrong,” referencing Matthew Pines, director at cybersecurity firm Sentinelone, who explained in a series of posts on X: “Cybersecurity is about ensuring the Confidentiality, Integrity & Availability of networks and data. There is no magic bullet that comes from PoW, which is a consensus mechanism.”
Do you think the Department of Defense will heed Lowery’s advice and integrate Bitcoin? Let us know in the comments section below.
Binance Faces $4 Billion Demand From US Justice Department to Settle Criminal Case: Report
Cryptocurrency exchange Binance is reportedly facing a billion demand from the U.S. Department of Justice (DOJ) in order to settle a criminal case. The Justice Department has been investigating Binance on allegations related to money laundering, bank fraud, and sanctions violations.
US DOJ Wants Billion From Binance
The U.S. Department of Justice (DOJ) is reportedly seeking more than billion from Binance Holdings Ltd. as part of a proposed settlement to conclude its multiyear investigation into the crypto exchange and its CEO Changpeng Zhao (CZ), Bloomberg reported Monday, citing people familiar with the matter.
The Justice Department has been investigating Binance on allegations related to money laundering, bank fraud, and sanctions violations, the news outlet conveyed, adding that negotiations between Binance and the DOJ include CZ potentially facing criminal charges in the U.S. According to the publication, an announcement could come as soon as the end of this month and Binance is expected to pay more than billion.
The settlement aims to find a middle ground to allow Binance to continue operations and avoid a potential collapse that could devastate crypto markets and cryptocurrency holders, according to three people familiar with the matter. Another person pointed out that the largest crypto exchange is seeking to minimize its exposure in any settlement, including pushing for a deferred prosecution agreement.
If a deferred prosecution agreement is reached between Binance and the DOJ, the Justice Department would initiate a criminal complaint against the cryptocurrency exchange, the publication detailed. However, the U.S. would not pursue prosecution provided the company adheres to agreed conditions, typically involving a significant penalty payment and a detailed admission of wrongdoing. A monitoring process would be established to oversee the crypto firm’s compliance.
Binance has faced legal and regulatory hurdles from various U.S. agencies, as well as heightened scrutiny from lawmakers. In June, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Zhao. The Commodity Futures Trading Commission (CFTC) also sued Binance and Zhao in March. The world’s largest crypto exchange is seeking to dismiss both the SEC and the CFTC complaints. Last month, two U.S. lawmakers asked the DOJ to consider filing criminal charges against Binance, alleging that the crypto exchange’s platforms were used to fund Hamas and “have a history of allowing illegal activity to occur.”
What do you think about the DOJ seeking more than billion from Binance to end its criminal investigation? Let us know in the comments section below.
AVAX Price Boost Could Be From This Department, But Its TVL Sings A Different Tune
Surging to a notable six-month peak of in the previous week, Avalanche (AVAX) has attracted substantial investor attention, prompting an exploration of the fundamental drivers behind this impressive upward price movement.
Some analysis have singled out the resurgence of GameFi within the Avalanche ecosystem as a pivotal catalyst potentially fueling additional gains in AVAX.
Specifically, on Monday, AVAX revisited the threshold, marking a significant milestone as this price level hadn’t been seen since April 2023.
The GameFi Surge On Avalanche: Unveiling Growth Potential
The GameFi revival as a major growth catalyst suggests that the intersection of decentralized finance and gaming applications within the Avalanche network holds considerable promise.
As the market absorbs this resurgence, questions naturally arise about the sustainability of the bullish momentum and the underlying factors contributing to the recent breakout in AVAX’s price.
In light of these developments, a deeper analysis is warranted to understand the potential extent to which the bulls can propel this rally and the broader implications of the GameFi revival within the context of the Avalanche ecosystem.
As optimism permeated the cryptocurrency sector, the prosperity of ecosystems experienced a widespread upswing across diverse networks.
Avalanche (AVAX) seamlessly joined this trend, affirming its participation in the prevailing positive sentiment within the crypto space. This collective ascent underscored the buoyancy of various networks, including AVAX, as they navigated the evolving landscape of the digital asset market.
Meanwhile, TraderJoe, a prominent decentralized exchange (DEX) on the Avalanche network, has witnessed an impressive growth, marked by a significant surge in trading volume and fees collected over a specific period.
Watching @TraderJoe_xyz as a dual play both on Avalanche and Arbitrum.
– Trading volume +112%
– Fees +146%
– Supply-side fees rose to 8,000
– Trading Volume by chain: 74% Avalanche/ 25% ArbitrumTrader Joe enjoys the volume from both narratives. pic.twitter.com/0BkP3zzU7V
— Emperor Osmo (@Flowslikeosmo) November 13, 2023
The trading volume experienced an increase of more than 100%, indicating a substantial uptick in user activity on the platform. Simultaneously, fees generated from trading activity soared by an impressive 146%, reaching a substantial sum of nearly 0,000.
At the time of writing, AVAX was trading at .03, down 6.5% in the last 24 hours, and tallied a solid 32.4% in the last seven days, data from Coingecko shows.
This surge in supply-side fees underscores the increasing utilization of the TraderJoe platform within the Avalanche network. The distribution of trading activity reveals that a substantial majority, accounting for 74%, occurred on the Avalanche chain, emphasizing the platform’s popularity within the Avalanche network. The remaining 25% of trading took place on Arbitrum [ARB].
Avalanche Network Activity Tells A Different Story
As this developed, another interesting aspect has been observed in the network: In the last quarter, activity on the Avalanche network experienced a downturn, witnessing a decline in both transaction volume and active addresses on the prominent “C-Chain” compared to the preceding quarter of 2023.
Source: Nansen
Data sourced from DeFi Llama indicates a nearly 30% slump in Avalanche’s total value locked (TVL) during Q3, plummeting from 6 million to 2 million. Although there has been a subsequent 10% rebound in TVL to 4 million, daily transactions continue to linger at a lower figure, standing at 232,000.
AVAX Price In Peril?
Nansen’s data reveals that daily active users reached a peak of 86,000 in Q3, showcasing a decrease from the previous quarter’s 117,000. The daily active transactions also saw a drop, ranging from 136,000 to 504,000, a significant shift from the previous range of 200,000 to 550,000. Notably, on October 15, this metric hit a low of 110,000.
While these metrics don’t bode well for the immediate past, whether this decline imperils AVAX’s price trajectory remains a complex question. The broader market sentiment and the network’s adaptability to emerging trends, especially in the dynamic realm of decentralized finance, will likely play pivotal roles in determining the future of AVAX’s price.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
US Justice Department Seizes Cryptocurrency Worth $112 Million in ‘Pig Butchering’ Crackdown
The U.S. Department of Justice (DOJ) says it has seized cryptocurrency worth over 2 million linked to fraudulent investment schemes known as “pig butchering.” According to court documents, the seized crypto accounts were allegedly “used to launder proceeds of various cryptocurrency confidence scams,” the Justice Department said.
2 Million in Crypto Seized by DOJ
The U.S. Department of Justice (DOJ) announced Monday that it has seized cryptocurrency worth more than 2 million “linked to cryptocurrency investment scams.” Noting that the Federal Bureau of Investigation (FBI) Phoenix Division is investigating this case, the announcement details:
Seizure warrants for six virtual currency accounts were authorized by judges in the District of Arizona, the Central District of California, and the District of Idaho.
“According to court documents, the virtual currency accounts were allegedly used to launder proceeds of various cryptocurrency confidence scams,” the DOJ said.
The announcement describes “pig butchering” schemes where scammers often target victims through “social networking and online communications platforms, dating websites, and phone calls and text messages that are meant to appear to have been misdialed.” After gaining the trust of their victims, scammers introduce the idea of cryptocurrency trading and persuade them to invest in crypto schemes where the funds are redirected to accounts controlled by them.
Victims may see apparent gains and even withdraw some money to build trust. However, after making a large investment, they can’t withdraw their funds. Scammers may request more money for taxes or fees, promising access to the account. The scam continues until the victim’s savings are depleted.
The Federal Bureau of Investigation (FBI)’s Internet Crimes Complaint Center (IC3) recently revealed that investment fraud accounted for the highest losses of any scam, totaling .31 billion. The agency noted that cryptocurrency investment fraud rose 183% from 7 million in 2021 to .57 billion in 2022.
What do you think about the DOJ seizing crypto in a pig butchering scam crackdown? Let us know in the comments section below.
Report: Chipper Cash Lays Off More Workers — Crypto Department Still Operational, Says CEO
The Nigerian fintech, Chipper Cash, recently said it has let go of more employees and that this step has been taken to help the firm contain its operating costs. Although no figure of the number of axed workers was given, one report estimated this to be around 100, or 12.5% of Chipper Cash’s entire workforce. Chipper Cash CEO Ham Serunjogi has dismissed reports that the fintech has shut down its crypto department.
The Deteriorating Macroeconomic Climate
The Nigerian fintech, Chipper Cash, recently confirmed it had laid off a second batch of employees as part of measures aimed at containing the company’s operating costs. Although no figure has been provided, one report estimated the cuts to be around 100 people, or 12.5% of Chipper Cash’s entire workforce.
According to a Techcrunch report, the fintech’s firm latest retrenchment exercise has impacted all areas, from human resources to the research and legal departments. Commenting on the fintech’s axing of talented employees less than three months after it laid off the first group, Chipper Cash CEO Ham Serunjogi detailed the circumstances that prompted the company to let go of some of its talent.
“The last two years were a period of rapid growth and scaling for us as a business and, to reflect this, our global headcount grew by around 250 people. However, given the macroeconomic climate, we are narrowing our current focus to core markets and products – concentrating our efforts where we know we can thrive,” Serunjogi reportedly said.
The CEO added that with the unfavorable circumstances that have now prevailed for more than one year, Chipper Cash can only operate effectively with a smaller team.
Meanwhile, the same report quotes Serunjogi denying reports that Chipper Cash has shut down its crypto department. According to the CEO, the fintech startup’s crypto trading platform is one of the largest in Africa and one of its “fastest growing products,” hence Chipper Cash will “continue to invest in the product.”
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What are your thoughts on this story? Let us know what you think in the comments section below.
How Litecoin (LTC) Outperforms Other Top Cryptocurrencies In This Department
Litecoin (LTC) seemingly hit a speed bump that caused its bullish run to slow down a bit after it rallied all the way up to the zone on December 5.
The following day, the cryptocurrency closed the trading session with a trading price below the marker before reclaiming said territory on December 7.
Since then, the altcoin has been on a downward trend although it is already showing signs of recovery. In fact, at the time of this writing, according to tracking from Coingecko, Litecoin is changing hands at .18.
LTC only managed to go up by 3% during the last 24 hours but it is still enjoying an increase of 36.3% in its value over the last 30 days.
Moreover, the asset, despite its recent price dump, has once again managed to outperform other major cryptocurrencies in other departments.
Litecoin Surpasses Ethereum, Dogecoin, XRP In Transactions
The 13th largest digital currency with a total market cap of .60 billion recently emerged as one of the top choices among cryptocurrencies used as a mode of payment for Bitpay.
Specifically, Litecoin accounted for 27.64% of the overall tally of transactions that were being processed by the company’s platform.
Although it failed to supplant Bitcoin in this category after the maiden crypto appeared to have been utilized as payment for 41.62% of Bitpay’s total transactions, LTC still beat the likes of Ethereum (ETH), XRP and Dogecoin (DOGE).
In addition, the altcoin also proved to be profitable for its miners as data shared by CryptoCompare revealed Litecoin mining had an extremely high profitability rate of 58%.
Along this line, its network hash rate also spiked by 3.05% during the last 30 days – a development that suggests that the asset’s blockchain remains strong and healthy.
A Bearish Outlook Looms For Litecoin
After a bear market-defying performance, LTC seems to be headed on a decline that might cause it to lose the gains it had when it increased its price by more than 33% after November 23.
The cryptocurrency experienced rejection when it tested the resistance region of .45 as its Relative Strength Index (RSI), which now stands at 38.40, has fallen below the 50-neutral score.
The current state of the above-mentioned technical indicator coupled with its Chaikin Money Flow (CMF) which was below zero (-0.06) at the time of this writing indicates the momentum now belongs to sellers.
With that being said, Litecoin appears to be headed for another bearish trajectory and if left to deal with the possibility of a decline all the way down to .40.
LTC total market cap at .6 billion on the daily chart | Featured image – The News Wheel, Chart: TradingView.com
NewsBTC
FTX Legal Department Jumps Ship, Binance Deal Fizzles Out
The FTX drama continues as the deal with its competitor Binance falls apart. According to several reports, employees at the platform are fleeing amid growing concerns about a massive billion hole on the company’s balance sheet.
A report from Semafor indicates that FTX’s legal and compliance staff left en masse as the company announced its deal with Binance. The report cites people familiar with the matter speculating on the company’s hurdles to completing any agreement without a legal staff.
FTX’s Team Goes Silence, Employees Keep Faith In CEO
Across social media, users began reporting that websites related to FTX and its trading arm Alameda were close. In addition, top executives went silent, seemingly escaping from what appears as the collapse of another major crypto institution.
FTX’s insolvency caught institutions and big players by surprise. The company saw many top representatives quitting their positions over the past months as U.S. regulators launched an investigation against the trading venue and its founder Sam Bankman-Fried.
Still, a large portion of crypto investors and employees remain in disbelief. The exchange halted new withdrawal requests on Tuesday. However, it continues to see deposits.
According to Wu Blockchain, FTX employees have their tokens stuck on the platform:
Several FTX employees told us that their coins cannot be withdrawn in FTX, and have no idea of the relationship between Alameda and FTX, some employees even continue to buying FTT in these days because the trust of company. They felt that the SBF needed to explain.
FTX Fails To Warn Users
At the time of writing, FTX’s website issues no warning about the current situation. This situation could jeopardize new users or users making deposits.
Not even that, there is no warning or news any where on the site about no withdrawal, or about potential acquisition.
Called this out right away and its still going.
It’s fucking criminal.
If you don’t follow news, you might just think coins are down bad.
— Adam Cochran (adamscochran.eth) (@adamscochran) November 9, 2022
Merely days before the drama, FTX’s official Twitter handle posted videos about the several offices in construction across the world. The crypto company would inaugurate offices in Tokyo, Miami, the Bahamas, and other locations.
More room for builders ready soon at @FTX_Official Bahamas HQ pic.twitter.com/mP2chek0NJ
— Claire Watanabe (@claire_FTX) November 6, 2022
Conversely, Bankman-Fried constantly tweeted about his weekly FTT purchases, the exchange’s native token. In hindsight, the posts seem like a marketing stunt to lure retail investors into purchasing the token and preventing the subsequent fallout.
FTT has been one of the most affected tokens in the crypto market. Binance’s CEO compared the token with Terra’s failed cryptocurrency LUNA. At the time of writing, FTT’s price trades at .2 with massive losses across the board.
Justice Department AG Claims US Gov, IRS Has Tools To Track Bitcoin Users
The United States has just revealed a seizure of over million in Bitcoin said to be meant for financing terrorist organizations over social media. Coinciding with the case, the Justice Department issued a deterrent to those that seek to use cryptocurrencies as part of criminal operations.
The Justice Department assistant attorney general has warned that the US government, notably the IRS, has developed tools to track blockchain transactions and tie it to their source.
Over Million in Bitcoin Seized in Social Media Terror Fundraising Scheme, Ties to Hamas, Al Qaeda, and ISIS
Today, the United States government revealed the results of a multi-agency sting, related to cryptocurrencies like Bitcoin being used to fund terrorist organizations.
Nearly million in Bitcoin and “other cryptocurrencies” were seized from over 300 wallets suspected of ties to the case.
According to the report, a website and several Facebook Pages allegedly involved with the terrorist organizations were also seized. These sites and pages were used to raise funds that would directly be used to support evil organizations like Hamas, Al Qaeda and ISIS, John Demers, the assistant attorney general for the Justice Department’s National Security Division said.
Related Reading | Former DoJ Prosecutor Turned Crypto VC: Bitcoin Helped Fight Crime
“By raising cryptocurrency on social media, these terrorists tried to bring terrorist financing into the current age. But these actions show that law enforcement remains a step ahead of them,” Demers said on behalf of several agencies on a call with reporters.
But how were these highly coordinated agencies so easily able to stay, as Demers says, ” a step ahead?”
Justice Department: The US Has Tools To Track Blockchain Transactions Back to Crypto Holders
The assistant Justice Department AG claims that the United States government in partnership with the Internal Revenue Service has developed tools to track blockchain transactions back to the source user. Or so they say.
Proof, however, is provided with the fact that over 300 wallet addresses were somehow identified as being tied to the crimes. The US government also blacklisted these names, so that the individuals would have trouble trying to cash out cryptocurrencies on an exchange and send funds to their financial institution.
But the idea that the US government has tools to track blockchain transactions goes beyond criminal activity with motive. Crypto investors and traders that misreported tax withholdings may have some explaining to do soon if the IRS decides to put these tools to the test.
Related Reading | Wealth and Tax Advisor Says IRS May Be Targeting Bitcoin Traders, Not Investors
And they likely will. The IRS had been considering contracting Coinbase, Chainalysis, and other blockchain analysis firms, and have either since developed tools of their own or licensed some from any of these firms.
The IRS also this year added a question on US tax returns, specifically asking individuals if they hold virtual currencies like Bitcoin or other crypto. Those who check the box yes, could end up having their blockchain transactions looked into.
However, any crypto holders that check the box no, but did hold crypto, will have a lot more trouble on their hands, according to this latest discovery.