India’s Enforcement Directorate (ED) has conducted searches that uncovered a Ponzi scheme involving cryptocurrency operations and HR Crypto Coin, leading to significant asset seizures and freezing. The coins were part of the scheme, luring people to invest with promises of a 15% annual interest rate and offering 30% direct referral income for introducing new customers. […]
Bitcoin News
New York Cracks Down on Crypto Pyramid Schemes Targeting Immigrants
New York Attorney General Letitia James has sued Novatechfx, AWS Mining, and their founders for orchestrating crypto pyramid schemes that defrauded over 11,000 New Yorkers out of more than a billion dollars in cryptocurrency. These companies targeted vulnerable immigrant communities, particularly Haitians, with false promises of high returns. NYAG Letitia James Takes Action Against Crypto […]
Bitcoin News
Latam Insights: Venezuela Seizes Over 11,000 Bitcoin Miners, Paraguay Cracks Down on Illegal Bitcoin Mining
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Venezuela seizes over 11,000 bitcoin miners to save energy, Paraguay cracks down on illegal bitcoin mining, and Brazil aims to finalize crypto regulations this year. Venezuelan Authorities Announce Bitcoin Mining Ban, Confiscate Over […]
Bitcoin News
Paraguay Cracks Down on Illegal Bitcoin Mining: Over 550 Miners Seized
Paraguayan authorities have intensified their efforts to fight illegal bitcoin mining, using innovative techniques including artificial intelligence (AI) and its distribution systems to detect these activities. In less than a week, two new illegal bitcoin mining operations have been closed with over 550 miners seized, causing undetermined damages to the National Power Administration (ANDE). Paraguay […]
Bitcoin News
India Cracks Down on Offshore Crypto Exchanges — Blocks Binance, 8 Other Platforms
The Indian government has directed the Ministry of Electronics and Information Technology to bar access to offshore cryptocurrency exchanges deemed illegal within the country. The nine affected crypto platforms include Binance, Kucoin, Huobi, Kraken, and Bitfinex. The Ministry of Finance also revealed that 31 crypto service providers have registered with the country’s Financial Intelligence Unit to date.
India Blocks 9 Offshore Crypto Platforms
India’s Ministry of Finance announced Thursday that the Financial Intelligence Unit India (FIU IND) has issued “compliance Show Cause Notices” to nine offshore crypto service providers. The Indian government brought crypto service providers into the ambit of the country’s Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework in March, under the provisions of the Prevention of Money Laundering (PML) Act.
The nine crypto service providers that were sent notices are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. The Indian Ministry of Finance stated:
Director FIU IND has written to Secretary, Ministry of Electronics and Information Technology, to block the URLs of said entities that are operating illegally without complying with the provisions of the PML Act in India.
All crypto service providers operating in India are required to register with the FIU IND as a reporting entity and comply with the rules set forth by the Prevention of Money Laundering Act 2002. “The obligation is activity-based and is not contingent on physical presence in India,” the finance ministry emphasized.
The Ministry of Finance further shared that 31 crypto service providers have registered with the FIU IND to date. Earlier this month, the Indian government provided Parliament with the list of 28 crypto service providers that are registered with the Financial Intelligence Unit, including Coindcx, Unocoin, Giottus, Bitbns, Zebpay, Wazirx, Coinswitch, Mudrex, Buyucoin, Pyor, Valr, and Bytex.
What do you think about India blocking access to offshore cryptocurrency trading platforms? Let us know in the comments section below.
China’s State Administration of Foreign Exchange Cracks Down on $2.2 Billion Crypto Exchange Ring
The Chinese State Administration of Foreign Exchange (SAFE) has cracked down on an underground bank that used crypto to offer illegal exchange services. The operation, which had over 1,000 bank accounts and a presence in 17 provinces, moved over 15.8 billion yuan (.2 billion) to purchase crypto on exchanges overseas and provide yuan exchanging services.
Chinese State Administration of Foreign Exchange Discovers Ring Using Crypto to Circumvent Exchange Controls
The Chinese government has cracked down on an underground bank that used crypto to provide yuan exchange services to Chinese nationals. According to a post published in Wechat by the State Administration of Foreign Exchange (SAFE), the Qingdao police managed to identify more than 1,000 accounts belonging to a Chinese national identified as Jin, that served as funneling accounts for the exchange business of 15.8 billion yuan (.2 billion).
The exchange business had a presence in 17 provinces of the country, with more than 20 million transactions related to this ring. The accounts were connected to Li, a textile worker who acted as a broker for the purchase and sale of virtual currencies. The report reinforced that managing and exchanging cryptocurrency is illegal in China.
Xu Xiao, an inspector at the Qingdao Branch of the State Administration of Foreign Exchange, described how this process was carried out. He stated:
Underground banks purchase virtual currencies and then sell the virtual currencies through overseas trading platforms to obtain the foreign currency they need. This process completes the conversion of yuan and foreign currencies, which constitutes the illegal act of buying and selling foreign exchange.
Also, this kind of exchange must be carried out at state-designated places. SAFE authorities warned against being involved in this kind of illegal trade, even when the exchange rates and “convenience” incentivize this route over conducting legal exchanges.
Huang Hui, Deputy Director of SAFE’s Management and Inspection Department, remarked that it will continue to work with other state institutions to crack down on illegal exchange businesses such as underground banks, and facilitate the usage of legal channels for these operations.
What do you think about SAFE’s recent crackdown? Tell us in the comments section below.
Ethereum Price Cracks Above $2,000 As BlackRock Eyes ETH ETF
Move over Bitcoin ETF, it is time for Ethereum to take the center stage.
trillion asset manager BlackRock has revealed its intention to to launch a spot Ethereum ETF, and it already sent the price per ETH above ,000.
Ethereum ETF News From BlackRock Prompts Break Above ,000
Ethereum sentiment has recently been in the gutter, but breaking news today has instantly revived the top altcoin and caused its price to surge higher.
That news was none other than BlackRock announcing its intention to file for a spot ETH Exchange-Traded Fund (ETF). BlackRock’s Bitcoin ETF application has been driving increased interest and speculation in BTC.
Bitcoin’s price has climbed over 100% in 2023, but Ether has since lagged behind. All that could be changing now that ETHUSD broke above ,000 and is now closing in on breaking up out of an ascending triangle pattern.
ETH Breakout Could Change Momentum Long-Term
If the bullish news backdrop and possible ascending triangle pattern weren’t enough positive signs for Ethereum, the top altcoin by market cap has also crossed bullish on the monthly LMACD.
The LMACD is the logarithmic version of the Moving Average Convergence Divergence indicator, used to measure market momentum. With this significant momentum shift possibly brewing, the price per ETH could shoot much higher.
Immediately short-term targets of the ascending triangle could see Ether revisiting all-time highs soon enough. However, longer-term targets are closer to ,000 per coin.
While this might have seemed out of reach in the past, the capital inflows a spot ETH ETF could bring into the market would range from billions to potentially trillions over time.
US Treasury Cracks Down: Sanctions Crypto Money Launderer Tied To Russian Elite
In a significant move to combat sanctions evasion and illicit financial activities, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Ekaterina Zhdanova, a Russian national allegedly involved in laundering and transferring funds using crypto on behalf of Russian elites.
According to the announcement, the action aligns with the G7’s commitment to closing loopholes that allow Russian state actors, oligarchs, and proxies to exploit virtual currency to circumvent international sanctions.
Crypto Money Laundering Exposed
Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson emphasized the alleged role played by key facilitators like Zhdanova in aiding Russian elites, ransomware groups, and other illicit actors in evading US and international sanctions through the abuse of cryptocurrencies.
Nelson stated that the Treasury remains steadfast in its efforts to safeguard the global financial system against such exploitation and other risks within the crypto ecosystem.
Allegedly, Zhdanova’s involvement in obfuscating the source of wealth for a Russian client, enabling the transfer of over .3 million into Western Europe via fraudulent investment accounts and real estate purchases, drew OFAC’s attention.
Zhdanova’s services provided sanctioned Russian individuals access to Western financial markets that would otherwise be restricted due to US and international prohibitions.
The US Treasury Department alleges that such illicit financial activities enable the evasion of multilateral sanctions and undermine efforts to hold Russia accountable for its unprovoked war and aggression.
Utilizing cryptocurrencies as a facilitator of large cross-border transactions, Zhdanova relied on entities lacking Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) controls, including the OFAC-designated Russian cryptocurrency exchange, Garantex Europe OU.
Zhdanova employed various methods to transfer funds internationally, including cash transactions and leveraging connections with other money laundering associates and organizations.
Additionally, she utilized traditional businesses, such as a luxury watch company with global offices, to maintain access to the international financial system.
Furthermore, it is alleged that Zhdanova conducted crypto exchange transfers on behalf of oligarchs who relocated internationally, facilitating the movement of over 0 million to the United Arab Emirates.
Unveiling The Scheme
Zhdanova also provided a tax residency service in the UAE to Russian clients, potentially participating in identity obfuscation. This service offered clients a UAE tax residency, identification card, and bank account, with payments made in cash or virtual currency, subsequently transferred to foreign bank accounts at the client’s discretion.
Notably, Zhdanova’s services extended to individuals associated with the notorious Russian Ryuk ransomware group. Zhdanova allegedly laundered approximately .3 million in suspected victim payments for a Ryuk ransomware affiliate, which has targeted numerous victims worldwide, including the United States, particularly in the healthcare sector.
As a consequence of this action, all US persons must report any property or interests in property belonging to Zhdanova or any entities directly or indirectly owned by her. Transactions involving such property are generally prohibited unless authorized by OFAC.
Featured image from Shutterstock, chart from TradingView.com
CFTC Cracks Down on 3 Defi Platforms for Offering Illegal Derivatives
The U.S. Commodity Futures Trading Commission (CFTC) has issued orders against the operators of three decentralized finance (defi) protocols. The regulator accused them of committing various violations of commodity laws including illegal trading of digital asset derivatives.
U.S. Commodities Regulator Settles Charges Against Defi Protocols Opyn, Zeroex, Deridex
The CFTC has taken action regarding three Delaware-registered companies doing business in the defi space — California-based Opyn and Zeroex as well as Deridex which is based in North Carolina. The Commission said it had issued orders filing and settling charges against them.
According to the announcement published on Thursday, Deridex and Opyn have been charged with failing to register as a swap execution facility (SEF) or designated contract market (DCM) and failing to register as a futures commission merchant (FCM).
The two entities also failed to adopt a customer identification program, as required of FCMs, while together with Zeroex, they were also charged with illegally offering leveraged and margined retail commodity transactions in digital assets.
The regulatory body explained that the crypto firms operated blockchain-based protocols and smart contracts, that the CFTC says functioned similarly to trading platforms, and “purported to offer users the ability to engage in transactions in a decentralized environment.”
The orders issued by the Commission require that Opyn, Zeroex, and Deridex pay civil monetary penalties of 0,000, 0,000, and 0,000, respectively. They are also expected to cease and desist from violating the Commodity Exchange Act (CEA) and CFTC regulations. Commenting on the charges, Director of Enforcement Ian McGinley was quoted as stating:
Somewhere along the way, defi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts. They do not.
While recognizing the novel and complex nature of defi, the CFTC executive also emphasized that his department “will continue to evolve with it and aggressively pursue those who operate unregistered platforms that allow U.S. persons to trade digital asset derivatives.”
Besides detailing each case in its press release, the CFTC also acknowledged the defi firms’ “substantial cooperation” with its investigation that resulted in reduced penalties. The measures come amid an ongoing crackdown on the crypto sector in the U.S. in which the commodities regulator has been involved alongside the Securities and Exchange Commission (SEC). The CFTC made it clear that the probe is part of its continued “enforcement focus” in the defi space.
What are your thoughts on the charges against the three defi platforms? Let us know in the comments section below.
Bali Government Cracks Down on Crypto Payments by Foreign Tourists
The government of Bali, Indonesia, is cracking down on the use of cryptocurrency as a means of payment by foreign tourists. “Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions,” said the governor of Bali.
Strict Penalties Imposed for Foreign Tourists Using Crypto in Bali, Warns Governor
The Bali provincial government is cracking down on the use of cryptocurrency as a means of payment by foreign tourists in hotels, restaurants, shopping centers, and various other establishments, according to a report from the Antara Indonesian News Agency.
Bali Governor Wayan Koster said at the Bali tourism development press conference Sunday:
Foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment, and violate other provisions will be dealt with firmly.
“Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises, and other tough sanctions,” the governor detailed.
Koster clarified that the ban on using cryptocurrencies or any currencies other than the Indonesian rupiah as a payment method is in accordance with Law No. 7 of 2011 on Currency. Under this law, individuals who use currencies other than the rupiah may face penalties of up to one year of imprisonment and a maximum fine of Rp200 million (US,300).
The governor further explained that individuals engaged in foreign exchange business activities without proper authorization from Bank Indonesia, the country’s central bank, may face penalties ranging from a minimum of one year to a maximum of five years of imprisonment. Additionally, they may be subject to a minimum fine of Rp50 million (US,300) and a maximum fine of Rp22 billion (US.4 million).
In addition, Bank Indonesia Regulation No. 17/3/PBI/2015 establishes the requirement for the use of the Indonesian rupiah within the Indonesian territory. Koster stressed:
Violations will be subject to administrative sanctions in the form of written reprimands, obligations to pay fines, and prohibitions from payment transactions.
While crypto’s use as a payment instrument is prohibited, Trisno Nugroho, head of Bank Indonesia’s Bali province representative office, clarified that crypto as an asset is allowed.
What do you think about the Bali provincial government cracking down on payments using cryptocurrencies by foreign tourists? Let us know in the comments section below.