According to a press release from the U.S. Department of Justice, Alexander Vinnik, a former operator of the BTC-e exchange, has admitted to a conspiracy to launder money. This admission of guilt comes over six years following his arrest in Greece on July 25, 2017. BTC-e’s Vinnik Pleads Guilty to Money Laundering The Department of […]
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Bitcoin.com Addresses Charges Against Early Investor and Founder Roger Ver
On April 30, 2024, the U.S. Department of Justice (DOJ) detained Roger Ver, a trailblazing investor in bitcoin, on accusations of tax evasion and submitting fraudulent tax returns. The following update is accompanied by a statement from Bitcoin.com regarding the allegations against the company’s founder. Bitcoin Investor Roger Ver Charged With Tax Evasion According to […]
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‘Globalist Power Is No Longer a Moral Authority’: Amir Taaki Responds to Samourai Charges
In an era increasingly defined by surveillance and oversight, Amir Taaki stands out as a key figure in the Bitcoin movement, sounding a clarion call for crypto awareness following the indictment of Samourai Wallet. Taaki’s latest initiative, “Darkfi,” seeks to pioneer a completely anonymous platform for collaborative fundraising and distribution, posing a challenge to existing […]
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DOJ Counters Motion to Dismiss Charges Against Tornado Cash Developer
In a notable development, the U.S. Department of Justice (DOJ) has countered a motion to dismiss the criminal charges against Roman Semenov, a developer of the cryptocurrency mixing service Tornado Cash, highlighting the alleged strength of its case in a recent court submission. Prosecutors Assert Strong Evidence Is Coming in Tornado Cash Laundering Case The […]
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Bitcoin Fee Shock: Network Charges Double Amidst Excitement Of $70,000 BTC
Bitcoin transaction fees have experienced an unprecedented surge, doubling in just one week, as the market rallies towards the coveted ,000 mark. This surge cannot be solely attributed to the upward trajectory of Bitcoin’s price but is significantly influenced by the sudden rise in Ordinals transactions.
Ordinals: A Driving Force Behind Fee Escalation
Amidst the fervor of Bitcoin’s price rally, Ordinals transactions have emerged as a driving force behind the surge in transaction fees. Our in-depth analysis reveals that Ordinals, which started the week with approximately 48,000 daily inscriptions, witnessed an extraordinary surge, surpassing 93,000 by March 8th.
This surge in daily inscriptions has not only contributed to a substantial increase in fees, with the daily average fee standing at around eight BTC but has also added a staggering .8 million to the total network fees for the week.
Bitcoin Fees Break Records, Reflecting Market Dynamism
Bitcoin’s fee trend for the week has been nothing short of dynamic. While the initial daily fees stood at around 46 BTC, the momentum gained pace around March 5th, surging to an impressive 103 BTC. Towards the end of the week, the daily fee decreased slightly to around 40.7 BTC.
Despite the decline, the overall trend indicates a significant increase in daily fees compared to the preceding week, showcasing the dynamism and resilience of the Bitcoin market.
Bitcoin’s Ascent Towards K And Its Ripple Effect
As Bitcoin teeters on the edge of the ,000 price range, the cryptocurrency market is on the brink of a potential breakthrough. At the time of reporting, Bitcoin was trading at about ,950, marking a 10% increase in the last seven days.
A Closer Look At Bitcoin’s Fee Surge
Examining data provided by IntoTheBlock, it becomes evident that Bitcoin’s recent fee surge is not merely a consequence of its price rise. The notable increase in transaction fees, doubling compared to the previous week, is closely tied to the upward movement in the price of BTC.
Bitcoin fees more than doubled this week, with Ordinals-related transactions hitting a monthly high. pic.twitter.com/YXh9oMMYSK
— IntoTheBlock (@intotheblock) March 9, 2024
This movement has propelled transaction volumes to their highest levels in months, with NewsBTC’s analysis revealing a staggering volume surpassing 0 billion on March 5th and 6th, a level not witnessed since November 2022.
Ordinals’ Remarkable Contribution To Bitcoin Fees
NewsBTC’s detailed evaluation of Ordinals transactions over the past week sheds light on the remarkable contribution of this sector to Bitcoin’s escalating fees. With daily inscriptions skyrocketing and daily fees averaging around eight BTC, Ordinals has made a significant impact on the cryptocurrency landscape, contributing over 0 million in fees to date.
Featured image from Karolina Grabowska/Pexels, chart from TradingView
SEC Charges Shapeshift With Regulatory Violations, Sparking Debate on Crypto Regulation
The U.S. Securities and Exchange Commission (SEC) has leveled charges against Shapeshift AG, accusing the company of operating without proper registration. This case has ignited a broader conversation on the regulatory framework for crypto assets, with SEC Commissioners Hester Peirce and Mark Uyeda voicing their dissent and concerns about the SEC’s current approach toward crypto […]
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DOJ Charges Belarusian National With Money Laundering Conspiracy and Operating Unlicensed Crypto Exchange
The United States Department of Justice (DOJ) has charged the Belarus national Aliaksandr Klimenka with money laundering conspiracy and the operation of an unlicensed money services business. Most of these criminal activities were perpetrated via BTC-e’s servers in the U.S. which were “leased to and maintained by Klimenka and Soft-FX.” According to the DOJ, Klimenka faces a maximum jail sentence of 25 years.
Anonymized Trade of Bitcoin
On Feb. 1, the DOJ announced that it had brought charges against Belarus national Aliaksandr Klimenka. The charges include money laundering conspiracy and the operation of an unlicensed money services business. Klimenka’s unlicensed crypto platform, BTC-e, allegedly facilitated a highly anonymized trade of bitcoin, according to an indictment unsealed on Jan. 30.
The DOJ further alleges that BTC-e helped facilitate transactions for criminals and received criminal proceeds. These illicit activities included computer intrusions, hacking incidents, ransomware scams, and identity theft schemes.
Most of these criminal activities were perpetrated via BTC-e’s servers in the U.S., which were “leased to and maintained by Klimenka and Soft-FX.” In the indictment, the DOJ contends that BTC-e had neither the required money services business registration nor an anti-money laundering program.
“Despite doing substantial business in the United States, BTC-e allegedly was not registered as a money services business with the U.S. Department of Treasury, had no anti-money laundering process, no system for appropriate ‘know your customer’ or ‘KYC’ verification, and no anti-money laundering program as required by federal law,” the DOJ said in a statement.
According to an indictment, Aliaksandr Klimenka, a Belarusian national, was arrested in Latvia on Dec. 21, 2023. Subsequently, he was extradited to the United States and made his initial court appearance on Jan. 31. As per the indictment, Klimenka faces a maximum jail sentence of 25 years if convicted.
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DOJ Charges Trio Behind $400 Million SIM Swap Attack on FTX
The United States Department of Justice has charged three individuals accused of masterminding the SIM-swapping attack that siphoned over 0 million from FTX. The indictment of the trio appears to undercut claims that incarcerated FTX founder Sam Bankman-Fried was the mastermind behind the hack.
FTX’s Lax Security
The U.S. Department of Justice (DOJ) has leveled charges against three individuals allegedly involved in a SIM-swapping gang responsible for siphoning 0 million from the cryptocurrency exchange FTX. The heist occurred immediately after FTX filed for bankruptcy. According to an indictment filed in a Washington court, the trio illicitly obtained information on 50 victims.
The accused — Robert Powell, Emily Hernandez, and Carter Rohn — then exploited this stolen information to deceive mobile phone companies. By doing so, they managed to reroute the victims’ phone numbers to a dummy device. The indictment of the trio meanwhile appears to undercut claims that incarcerated FTX founder Sam Bankman-Fried was the mastermind behind the hack.
Described as a type of account takeover fraud that generally targets a weakness in two-factor authentication and two-step verification, SIM-swapping attacks have been on the rise.
In a recent report, cybersecurity firm Stroz Friedberg Digital Forensics highlights a concerning trend — an increase in SIM-swapping attacks across diverse industries. Notably, these attacks have of late seemingly targeted cryptocurrency and crypto-adjacent companies
According to the Bloomberg report, the trio targeted FTX users and other crypto entities for two years because they had lax security. While the Department of Justice (DOJ) has not explicitly named FTX as the affected crypto exchange, two insiders reportedly confirmed that it corresponds to the “victim company 1” mentioned in the indictment.
Meanwhile, for perpetrating this attack, Powell, Hernandez, and Rohn have been charged with fraud and identity theft.
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SEC Charges American Bitcoin Academy Founder With Fraud That Cost Students $1.2 Million
The U.S. Securities and Exchange Commission (SEC) has charged the founder of American Bitcoin Academy, accusing him of running an online fraudulent crypto scheme that cost students .2 million. The defendant “falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed.”
SEC Charges Founder of Online Crypto Fraud
The U.S. Securities and Exchange Commission (SEC) announced Friday that it has charged the founder of American Bitcoin Academy “with fraud targeting students.” Brian Sewell and his company, Rockwell Capital Management, agreed to settle fraud charges in connection with a scheme, the regulator said, adding:
The SEC alleges that the fraudulent scheme cost 15 students .2 million.
The SEC alleges that, between early 2018 and mid-2019, Sewell encouraged hundreds of his online students to invest in the Rockwell Fund, a hedge fund he promised to launch. He claimed the fund would use advanced technologies like AI and crypto-asset trading strategies to generate returns for investors.
The securities watchdog further alleges that Sewell, who formerly resided in Utah before moving to Puerto Rico, received .2 million from 15 students for the Rockwell Fund. However, he never launched the fund or implemented the promised trading strategies. Instead, he held onto the invested money in bitcoin, which he claimed was stolen when his digital wallet was hacked.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented: “We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund.” The SEC official stressed:
Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed.
The SEC’s complaint charges the defendants with violating antifraud provisions of the federal securities laws. The defendants have agreed to settle the charges and have consented to injunctive relief without admitting or denying the allegations in the complaint. “Defendant Rockwell Capital Management also agreed to pay disgorgement and prejudgment interest totaling ,602,089 and Defendant Sewell agreed to a civil penalty of 3,229. The settlement is subject to court approval,” the SEC detailed.
What do you think about the SEC charging the founder of American Bitcoin Academy? Let us know in the comments section below.
Bulgarian Prosecutors Drop Charges Against Crypto Lender Nexo — ‘No Evidence of Criminal Activity’
The prosecutor’s office for Sofia, the capital city of Bulgaria, has dropped criminal proceedings against crypto lender Nexo. “The team of supervising prosecutors came to the conclusion that there was no evidence of committed crimes,” the authorities stated, adding that crypto assets are currently not financial instruments and their trading is not subject to regulation in the country.
Crypto Trading Not Subject to Regulation in Bulgaria
The Prosecutor’s Office of the Republic of Bulgaria announced Friday that the Sofia City Prosecutor’s Office has terminated criminal proceedings against Nexo. Pre-trial proceedings against the crypto lender commenced on Sept. 29 last year, with law enforcement officials reportedly probing the company for alleged money laundering and sanctions violations.
“There is no evidence of criminal activity” regarding the carrying out of banking activity without a corresponding permit, the announcement details, as translated by Google. “Also, no evidence of money laundering was collected against the defendants, and no evidence of tax crimes or computer fraud was collected.” The prosecutor’s office stated:
On the basis of the established factual situation, the team of supervising prosecutors came to the conclusion that there was no evidence of committed crimes.
The case lists K. Kanchev, A. Trenchev, K. Metodiev, and T. Nikolov as defendants, alleging that they were involved in an organized criminal group formed for profit between 2018 and January 2023. Kanchev and Trenchev also faced charges of conducting banking transactions without proper authorization. The transactions involved lending and deposit activities in U.S. dollars, British pounds, and euros through the Nexo online platform.
The investigation included witness interviews, analyses of payment account movements, complex forensic and evaluation reports, and various investigative actions such as searches and seizures. Despite permission to spend 0,000 on an expert, supervising prosecutors considered it unnecessary.
The regulatory status of cryptocurrencies in Bulgaria also significantly influenced the prosecutors’ decision. Noting that Bulgaria lacks a specific legal framework for services involving crypto assets, the prosecutor’s office stated that activities conducted by Nexo are not regulated, and there is no requirement for permits, registration, or licensing.
“It can be concluded that the products offered by Nexo are not financial instruments. The provision of services to clients in relation to these products does not fall within the scope of investment services,” the prosecutor’s office detailed, elaborating:
Given that crypto assets are not currently financial instruments, their trading is also not subject to regulation.
Virtual currency is not recognized as a legal means of payment in Bulgaria, and its activities are not classified under Article 4 of the Law on Payment Services and Payment Systems, the prosecutor’s office clarified, noting: “The supervising prosecutors came to the conclusion that no crime had been committed and terminated the criminal proceedings.”
What do you think about Bulgarian prosecutors dropping criminal charges against crypto lender Nexo? Let us know in the comments section below.