Two citizens, Chan Wing-yan and Herbert Lee Sun-him, have filed the first civil lawsuit against the cryptocurrency platform JPEX, seeking to recover approximately 240,000 units of tether, worth about HK.85 million. This marks the first civil lawsuit since the alleged fraud was uncovered nine months ago. The plaintiffs allege unauthorized transfers of their funds shortly […]
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FTX Co-Founder Sam Bankman-Fried’s Civil Liability Released In Settlement With Investors
According to a recent Bloomberg report, a group of investors and customers of cryptocurrency exchange FTX have agreed to drop their claims against co-founder Sam Bankman-Fried.
In exchange, Bankman-Fried has agreed to cooperate with the plaintiffs in the ongoing lawsuits against other defendants related to the collapse of FTX.
Sam Bankman-Fried And Insiders Settle
Per the report, if approved by a judge, this agreement would release Bankman-Fried from civil liability just weeks after being sentenced to 25 years in prison for fraud stemming from allegations of stealing billions of dollars from FTX.
The settlement, filed in federal court in Miami, stipulates that the plaintiffs in the multi-district litigation will resolve all current and future claims against Bankman-Fried.
Other FTX insiders, including former executives Gary Wang, Caroline Ellison, and Nishad Singh, who testified against Bankman-Fried, were also sued by investors. However, they have agreed to settle and have already started providing information to support the plaintiff’s case, as stated in the court filing.
Notably, this leaves the high-profile celebrities, sports stars, and social media influencers who promoted FTX to investors and customers as the remaining defendants.
As part of the settlement agreement, Bankman-Fried has committed to assisting the plaintiffs’ lawyers in pursuing the remaining FTX endorsers. Additionally, he will provide all nonprivileged documents related to his assets and his investment in artificial intelligence start-up Anthropic.
Bankman-Fried will also submit an affidavit certifying his net worth as negative and share documents about other defendants involved in the expansive civil litigation.
The list of defendants in the consolidated FTX lawsuits is extensive, with financiers and celebrity endorsers such as Tom Brady, Shaquille O’Neal, and Gisele Bundchen accused of promoting “unregistered securities” and luring investors into a Ponzi scheme.
Bankman-Fried’s agreement includes providing any relevant information about venture capital firms that invested in FTX and accountants and lawyers who worked with the exchange.
If successful, the plaintiffs could potentially win substantial amounts in damages. According to court filings, the settlements with the promoters involved in the agreement are estimated to be valued at around .3 million.
FTX Scandal Update
Bankman-Fried’s spokesperson, Mark Botnick, stated that his client is determined to make amends. Botnick emphasized that since the collapse of FTX, Bankman-Fried has focused solely on returning the estate’s assets to customers and ensuring they are made whole at current prices.
Botnick expressed Bankman-Fried’s commitment to continue working with Adam Moskowitz and his team, representing the plaintiffs, to achieve this goal.
In their request for the judge’s approval of the settlement, the plaintiffs’ attorneys acknowledged the uncertainty and litigation risks associated with pursuing Bankman-Fried. They concluded that Bankman-Fried’s cooperation would be “valuable” in the remaining legal proceedings.
Bankman-Fried, who was found guilty at trial late last year and sentenced in late March, is currently in custody at the Metropolitan Detention Center in Brooklyn, New York, before being transferred to the prison where he will serve his term. He intends to appeal both his sentence and conviction.
Featured image from Reuters, chart from TradingView.com
Australian Regulator Initiates Civil Proceedings Against Three Cryptocurrency Investment Firms
The Australian Securities Regulator has launched civil proceedings against three cryptocurrency firms. These firms are accused of convincing investors to purchase investment packages using self-regulated superannuation funds. The regulator stated that appointing a receiver is the best way to protect investors’ assets, which are at risk of being depleted. Protecting Investors’ Assets The Australian Securities […]
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Terraform Labs and Former CEO Do Kwon Found Liable for Civil Fraud by Jury
On Friday, Zack Guzmán, founder of Coinage Media, announced that Terraform Labs’ co-founder Do Kwon and his startup were deemed responsible for fraudulent activities in its legal battle against the U.S. Securities and Exchange Commission (SEC). The lawsuit spanned approximately two weeks. The trial culminated in the jury’s decision in a federal courtroom subsequent to […]
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Economist Peter Schiff Says Gold Price Not Rising Fast Enough, Condemns Civil Ruling Against Donald Trump
Peter Schiff, a U.S. economist and gold advocate, has attributed the lacklustre performance of gold mining companies to the rising inflation rate, which contrasts with a largely static gold price. Schiff maintains that the U.S. inflation rate would have been even higher if the U.S. Federal Reserve had not increased interest rates. The economist also […]
Bitcoin News
Amid Rising ‘National Divorce’ Talks, Exploring the Potential Impact on US Dollar in Hypothetical Second Civil War
In the wake of Texas Governor Greg Abbott’s latest declaration, emphasizing Texas’ inherent constitutional right to defend itself and pointing to the Biden administration’s lack of enforcement of federal immigration statutes, the rhetoric around a potential “national divorce” or “civil war” has gained momentum on social platforms. This leads us to explore a theoretical situation in which the United States faces a second Civil War, focusing on the ramifications for the U.S. dollar.
How a Second U.S. Civil War Could Reshape the Dollar’s Value
The discussion of a potential second Civil War has intensified following a statement from Texas Governor Greg Abbott, asserting that the federal government is neglecting its responsibilities to secure the border. “The federal government has broken the compact between the United States and the States,” Abbott explained in the letter published on Jan. 24. “The Executive Branch of the United States has a constitutional duty to enforce federal laws protecting States, including immigration laws on the books right now. President Biden has refused to enforce those laws and has even violated them. The result is that he has smashed records for illegal immigration.”
Incredible how 4 years of Biden’s governance has resulted in two new wars and the groundwork for a civil war. https://t.co/qSXl22AhE9
— Carl Benjamin (@Sargon_of_Akkad) January 25, 2024
This statement came on the heels of persistent disagreements between the Texas state authorities and the Biden administration over immigration enforcement. Following the statement, a coalition of 25 U.S. governors rallied behind Texas, in opposition to the federal government. This development has sparked extensive discussions across social media platforms, with terms like “civil war” and “national divorce” becoming trending topics on X. A civil war, in reality, would profoundly affect the U.S. dollar. Initially, it might trigger a decline in trust in the fiat currency.
Civil War shouldn’t be trending. Revolution should be.
— DR. ETIQUETTE
(@DrEtiquette) January 26, 2024
The value of a currency is heavily dependent on the political stability of its issuing country, and a civil war could severely weaken the global standing of the dollar. Although the exact consequences of a second civil war in the U.S. are uncertain, historical insights from the nation’s first civil war and conflicts in other countries provide some context to this hypothetical situation. For example, Lawrence W. Reed, a member of the Foundation for Economic Education (FEE), has detailed the economic consequences of the Civil War spanning 1861 to 1865 in a thorough account. Reed notes in his editorial that a free-for-all of federal spending continued well after the Civil War.
Reed writes:
For half a century from 1865 until World War I, the federal government ran an almost unbroken string of budget surpluses. Today, it produces trillion-dollar deficits without batting an eye, and the President demands trillions more in spending and debt.
Reed highlights that the Civil War basically led to “disastrous hyperinflation in the Confederacy and considerable currency depreciation of paper greenbacks in the North as well.” In another scholarly study, Roger L. Ransom of the University of California explains that with the onset of the war, the North effectively turned into a currency-producing powerhouse, issuing double the amount of currency compared to the South. Concurrently, the federal government accumulated billions in debt for the first time in history.
Should a civil war recur, leading to an expansion in currency issuance, the influx of dollars in the economy, not matched by an increase in goods and services, would devalue the dollar. Beyond the inflationary challenges confronting the greenback, variations in regional currencies could emerge. In such a civil war context, various U.S. regions might adopt their own currencies or monetary systems, adding complexity to the economic environment and reducing the prominence of the current U.S. dollar as the standard national currency.
Refuge in Borderless Assets
A potential second civil war in the U.S. might significantly benefit borderless assets and herald a global shift towards alternative assets. Approximately 65 countries anchor their currencies to the U.S. dollar, and it serves as the official currency of exchange in five U.S. territories and 11 foreign countries. Consequently, any disturbances to the U.S. dollar could create a global ripple effect, prompting individuals worldwide to seek refuge in alternative forms of economic value. In the event of instability in the U.S. dollar, alternative assets like gold, various foreign currencies, and cryptocurrencies might find increased favor as people look for stability beyond the American currency.
It is important to understand that these potential consequences are speculative, drawing from historical patterns and economic principles. The real effects of a second U.S. civil war would hinge on the particularities of the conflict, how the international community responds, and the actions of global financial institutions and governments. Yet, despite the conjectural nature of this scenario, the existing political divide in the U.S. is remarkably deep. Presently, Americans find themselves more ideologically polarized than they have been in over twenty years.
What do you think about the civil war discussions happening in America right now? Share your thoughts and opinions about this subject in the comments section below.
CFTC Files Civil Enforcement Action Against Bogus Crypto Exchange Debiex
The U.S. commodities regulator revealed on Jan. 19 that it had filed a civil enforcement action against a bogus digital asset exchange platform. According to the Commission, Debiex customers were not aware that the entire set-up was a clever scam designed to dupe prospective investors.
Romance Scam Tactics
The Commodities Futures Trading Commission (CFTC) announced on Jan. 19 that it had filed a civil suit against Debiex, a bogus crypto exchange platform it accuses of fraudulently misappropriating .3 million in customer funds. The CFTC alleges that the exchange’s representatives used romance scam tactics to fleece millions from the five unnamed prospective investors.
The Commission also identified Zhāng Chéng Yáng as a relief defendant because he is suspected of enabling Debiex’s fraudulent acts at least once. Commenting on the Commission’s move to file a civil enforcement action against the defendants, the CFTC’s Director of Enforcement Ian McGinley, said:
“This case is an example of the Division of Enforcement’s core mission—bringing justice for victims, rooting out misconduct, and holding accountable those who violate the anti-fraud provisions of the CEA.”
Fake Websites and Money Mules
In its statement, the Commodities Futures Trading Commission (CFTC) explained how Debiex perpetrated the scam from March 2022 to the present. The elaborate scam included websites that mimic legitimate trading platforms, fake customer service, and money mules. Using these tools masterminds of the scheme were able to convince victims that Debiex was a bona fide crypto exchange, the CFTC added.
However, according to the Commission, Debiex customers were not aware that the entire set-up was a clever scam designed to dupe prospective investors.
The Commission in the meantime urged prospective investors to avoid falling victim to similar scams by always verifying a company’s registration with the CFTC before committing funds.
What are your thoughts on this story? Let us know what you think in the comments section below.
UK Online Safety Bill to Become Law Amidst Heavy Criticism From Civil Liberties Organizations
The U.K. Online Safety Bill, a piece of legislation that seeks to make the country “the safest place in the world to be online,” has been signed by both houses of parliament and will become law soon. Several civil liberties organizations and activists have criticized it due to its possible effects on online privacy and encryption.
U.K. Online Safety Bill Ready to Become Law
The U.K. Online Safety Bill, a piece of legislation that seeks to improve the safety levels of children and adults online, has been passed by both houses of the parliament and is ready to become law. In a press release, the U.K. government stated that the law will make the country “the safest place in the world to be online,” establishing new rules that messaging and social media platforms now have to comply with.
The bill, which takes a “zero-tolerance approach to protecting children and makes sure social media platforms are held responsible for the content they host” by establishing penalties of up to £18 million (.16 million) or 10% of their global annual revenue, has been praised as a milestone by government officials.
Technology Secretary Michelle Donelan stated:
The Online Safety Bill is a game-changing piece of legislation. Today, this government is taking an enormous step forward in our mission to make the U.K. the safest place in the world to be online.
New Criticism
Civil liberties organizations and freedom advocates had criticized the bill before, stating that it posed challenges to platforms affected by the so-called spy clause, which allows Ofcom, the U.K. telecom regulator, to scan the private messages of their users.
The Electronic Frontier Foundation (EFF) stated that, with these new measures, “lawmakers will damage the security people need to protect themselves from harassers, data thieves, authoritarian governments, and others” while doing it in the name of online safety.
Encryption could also be affected, even as Stephen Parkinson, the Parliamentary Under-Secretary of State for Arts and Heritage, stated that it would not be “technically feasible” to go around it. However, Donelan declared on September 7 that the conversation around encryption “could take place” if social media platforms cannot meet the requirements in the bill.
On the encryption issue, the EFF explained that “neither the government’s private statements to tech companies nor its weak public assurances are enough to protect the human rights of British people or internet users around the world.”
What do you think about the U.K. Online Safety Bill? Tell us in the comments section below.
Hackers Breach Johannesburgs Civil Website Demanding BTC Ransom
n Hackers breach Johannesburgs online govt services and are demanding ransom in BTCn
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Australian Civil Servant Caught Mining Crypto With Government Hardware
n nn nn The Australian Federal Police AFP has charged a government employee alleged to have misused government IT infrastructure for personal cryptomining operations, per a press release.In the release, the AFP states that the unnamed 33-year-old man is an IT contractor with the Australian government, who took advantage of his access to manipulate programs to use the processing power of the agencys computer network for cryptocurrency mining.For his effort, the rep
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