The bankruptcy proceedings of Bittrex Inc. involved a legal dispute over claims filed by Azim Ghader, who sought recovery for lost profits and damages after his cryptocurrency was frozen on the Bittrex exchange in 2017. The United States Bankruptcy Court for the District of Delaware found that Bittrex had complied with legal requirements and upheld […]
Bitcoin News
Ripple Exec Chris Larsen’s XRP Accounts Illicitly Accessed, Crypto Exchanges Freeze Assets
On Wednesday, Chris Larsen, the co-founder and executive chairman of Ripple, publicly revealed that several of his personal xrp accounts had been illicitly accessed. Larsen explained that the team successfully persuaded crypto exchanges to promptly freeze the affected addresses.
2.5 Million Transferred From Chris Larsen’s Accounts
In the realm of social media, specifically within the X community, there is a growing fervor surrounding a substantial transfer of XRP from Chris Larsen’s XRP accounts. The initial revelation came from onchain analyst Zachxbt, who swiftly shared the information, stating, “It appears Ripple was hacked for ~213M XRP (2.5M).” This development ignited a wave of intense speculation and discussion across various social media platforms.
Larsen addressed the situation on X and said that his personal xrp accounts were affected. “Yesterday, there was unauthorized access to a few of my personal XRP accounts (not Ripple) – we were quickly able to catch the problem and notify exchanges to freeze the affected addresses,” Larsen said. “Law enforcement is already involved,” the Ripple executive added.
XRP initially dropped 5% on the news against the U.S. dollar and 24-hour statistics as of 10:40 p.m. Eastern Time, show XRP is down 3.5%. Of course, many speculators are wondering what happened with Larsen’s account and how the actors were able to access 213 million XRP from his stash. As of right now, it is a compelling mystery until more answers come out.
What do you think about the Ripple exec’s xrp stash being pilfered? Let us know what you think about this subject in the comments section below.
Bank Of England Reconsiders: Potential Freeze On CBDC Launch Raises Concerns
On January 25, the Bank of England (BoE) and HM Treasury published a response to the Consultation Paper regarding a ‘digital pound’ issued in February of 2023. The consultation paper sought the public’s feedback on introducing a UK central bank digital currency (CDBC).
Is The UK Ready To Introduce Their CBDC?
The BoE and HM Treasury consider that introducing a CBDC could provide people with an “additional choice of safe payment that is fit for the future,” unlock development opportunities for businesses, and make day-to-day payments more “convenient” while reducing costs for those who accept them.
The consultation response highlighted that the consultation marked the beginning of the design phase of the digital pound project and, according to the BoE and HM Treasury, the developing process of a CBDC and its platform will present lasting benefits for the digital economy of the country, regardless of the decision that is ultimately taken.
The consultation collected over 50,000 responses from the public, including individuals, businesses, and academia. The feedback illustrated some general concerns the respondents had regarding the digital pound.
Due to these concerns, the response by the BoE and UK Treasury determined that “it is too early” to decide whether to introduce a digital pound, as the feedback makes clear “that legislation introduced by the Government for a digital pound would need to provide protections to guarantee users’ privacy and control of their money.”
Respondents Concern Over A Digital Pound
The feedback received from the respondents brought forward two key concerns: privacy and the possibility of cash being replaced.
The response clarified that a digital pound would not replace cash, any existing form of money, or payment like debit and credit cards. However, it would complement physical money and other payment methods “as a new form of digital money for use by households and businesses for their everyday payment needs.”
To guarantee this, the response explained that “the Government has legislated to safeguard access to cash, ensuring that it would remain available even if a digital pound were launched.”
Regarding user privacy, the response acknowledged the importance of ensuring trust in a CBDC issued by the central bank is essential. Therefore, to guarantee that privacy is a core design feature of a digital pound, the following measures were made: the BoE and HM Treasury won’t have access to users’ data.
The BoE committed to exploring technological options to prevent the bank from accessing users’ data through its core infrastructure, and the BoE and UK Treasury would not program the digital pound.
The BoE and HM Treasury assured their commitment “to maintaining an open and collaborative approach throughout this design phase” by increasing both organization’s engagement with experts from the industry, civil society, academics, and technical specialists.
Lastly, the response confirms that experiments will be undertaken with companies “to test how a digital pound could work in the real world.”
The launch of the CBDC will be decided after the design phase culminates around 2025. If the decision to build a digital pound is taken, its introduction will come only after both Houses of Parliament have passed the relevant legislation.
Canadian Court Declares Freeze on Crypto Donations During ‘Freedom Convoy’ Protests Unconstitutional
In a judicial rebuke, the Federal Court of Canada ruled that the Trudeau government’s decision to freeze cryptocurrencies during the 2022 “Freedom Convoy” protests was unconstitutional.
Trudeau Government’s Emergency Powers Challenged: Court Rules Crypto Freeze Unlawful
In a ruling on Jan. 23, the Federal Court of Canada deemed the Trudeau government’s use of the Emergencies Act to freeze funds and cryptocurrencies during the ‘Freedom Convoy’ protests in 2022 as unconstitutional. Justice Richard Mosley concluded that invoking the Emergencies Act was not justified as there was no national emergency.
The controversial move by Prime Minister Justin Trudeau’s government in February 2022 aimed to curb financial support for truckers protesting Covid-19 vaccination mandates. It marked the first time the law was used to freeze financial assets, including cryptocurrencies.
The Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and various groups contested the government’s decision, arguing it was unnecessary and a violation of constitutional rights. The court’s decision validates their stance, asserting that the government could have used other means rather than resorting to the Emergencies Act, a measure deemed an overreach.
Protesters in the ‘Freedom Convoy’ had blocked streets in Ottawa, opposing mandates for truck drivers crossing the Canada-United States border to be vaccinated against Covid-19. The government had labeled the protests as an illegal occupation, necessitating the use of the Emergencies Act.
This ruling has implications for the use of crypto assets in political protests. Digital assets played a part in funding the trucker protests, with estimates of millions received in cryptocurrencies.
In February 2022, Gofundme froze over million in donations for the protests. The fundraising subsequently shifted to Tallycoin, a bitcoin-based crowdfunding platform, where the Honkhonk Hodl group garnered over 22 bitcoin, valued at approximately 5,000 at that time. The Christian crowdfunding site Givesendgo also emerged as a key platform, raising over million, including unknown amounts in crypto. Canadian authorities later froze bank accounts linked to Givesendgo donations.
Following the court’s decision, the CCLA said in a released statement:
The CCLA stood up to the government’s use of the Emergencies Act and challenged the government in court. The Federal Court’s decision sets a clear and critical precedent for every future government.
Finance Minister Chrystia Freeland announced the government’s intention to appeal the ruling.
What do you think will be the repercussions of this ruling? Share your thoughts and opinions about this subject in the comments section below.
Seychelles-Based Crypto Exchange MEXC Rejects ‘Baseless’ User Asset Freeze Claims
The Seychelles crypto exchange MEXC has rejected claims it is unilaterally freezing users’ accounts or “wiping” out their profits. The MEXC team said it opposes ongoing attempts to defame its name and may resort to taking legal action.
Baseless Claims
The Seychelles-based cryptocurrency exchange, MEXC, has described allegations that it is unilaterally freezing users’ accounts as “baseless claims” being propagated by “individuals with ulterior motives.” In a statement, the MEXC team said it vehemently opposes attempts to defame it or disseminate false narratives and may institute legal proceedings against those behind the rumors.
The crypto exchange’s strong rebuttal of claims followed several media reports of disgruntled users, some of whom have accused MEXC of “wiping” out profits as well as the relevant trade history. One of the affected users claimed to have lost access to 92,000 in USDT stablecoins when the crypto exchange allegedly froze his account.
Sharing his ordeal on X (formerly Twitter), the user, who uses the name Vida, said subsequent attempts to recover the funds were frustrated by MEXC’s support team, which cited “abnormal trading activities” in the user’s account or associated accounts.
Users Urged to Refrain From Spreading False Information
However, in the crypto exchange’s Dec. 24th rebuttal of the claims, the MEXC team said it is still committed to users’ welfare. It also warned users to avoid spreading fake news about the crypto exchange.
“Since its establishment, MEXC has consistently upheld ‘Customer First,’ as its guiding principle. We are committed to safeguarding the interests of users and cultivating project partners. We sincerely appreciate the trust and support that our users have consistently placed in us. We encourage everyone not to blindly believe rumors and refrain from spreading false information,” the crypto exchange said.
It’s been 4 hours now and I’m still unable to withdraw any of my KAS, and that is after splitting my larger withdrawal request into smaller ones as the large one was cancelled for no apparent reason, all still processing without an ETA.
I’m at a loss as to what I should do.
— Nadav (@Eros280400) December 24, 2023
In another post on X, the MEXC team disavowed an account purporting to be that of its CEO and told users to verify news about it through official social media channels. Despite the crypto exchange’s assurances, some users continued to report unsuccessful withdrawal requests
What are your thoughts on this story? Let us know what you think in the comments section below.
Tether Freezes $225 Million in USDT After DOJ Investigation, Calling It ‘Largest-Ever Freeze of USDT’
Tether has announced the “largest-ever freeze of USDT in history.” In collaboration with crypto exchange Okx, Tether froze 5 million in USDT following an investigation by the U.S. Department of Justice (DOJ). The tokens were allegedly linked to an international human trafficking syndicate in Southeast Asia responsible for a global “pig butchering” crypto scam.
5M in USDT Frozen by Tether
Leading stablecoin issuer Tether and crypto exchange Okx announced Monday that they have collaborated with the U.S. Department of Justice (DOJ) “in an investigation that led to Tether proactively and voluntarily freezing approximately 225 million in USDT tokens in external self-custodied wallets.” The wallets are “linked to an international human trafficking syndicate in Southeast Asia responsible for a global ‘pig butchering’ romance scam,” the crypto companies detailed, adding:
The joint investigation was conducted using tools from blockchain analysis firm Chainalysis, and the action by Tether represents the largest-ever freeze of USDT in history.
After months of investigation, Tether, Okx, and law enforcement agencies, including the U.S. DOJ, identified the locations of the illicit funds, the announcement explains, noting: “These actions prompted the initiation of a freeze request by the United States Secret Service and a voluntary freeze by Tether.”
According to an analysis by Lookonchain, Tether froze 37 wallets linked to a human trafficking group on Monday. These wallets had been moving USDT to crypto exchange Okx.
Tether froze ~225M $USDT (37 wallets) linked to a human trafficking group 1 hour ago.
These wallets had been moving $USDT before being frozen, with most of the $USDT being transferred to #OKX.
Check frozen TX here.https://t.co/TlfFJvpgiW pic.twitter.com/vEMTd3YzBq
— Lookonchain (@lookonchain) November 20, 2023
Tether claimed: “The frozen wallets are on the secondary market and are not associated with Tether’s customers.” The crypto firm emphasized: “To the extent lawful wallets were captured by this operation, Tether will work quickly with law enforcement and the owners of those wallets to unfreeze them, as appropriate.” In October, Tether froze 32 addresses linked to suspicious operations in Israel and Ukraine.
Pig butchering crypto scams have been on the rise globally. The Federal Bureau of Investigation (FBI) has repeatedly warned about these scams. In August last year, U.S. authorities said that this type of scam is becoming alarmingly popular. In April this year, the U.S. Department of Justice seized cryptocurrency worth 2 million in a pig butchering scam crackdown. Last week, the Internal Revenue Service (IRS) warned that U.S. taxpayers are currently the most targeted population for pig butchering schemes.
What do you think about Tether freezing 225 million USDT allegedly involved in “pig butchering” crypto scams? Let us know in the comments section below.
Israel Police Freeze Crypto Accounts at Binance Allegedly Used by Hamas
The Israel Police have frozen crypto accounts held at Binance allegedly used by Hamas to collect crypto donations as tensions between Israel and Hamas escalate. In addition, the Israel Police have frozen a Hamas-linked account at Barclays Bank.
Hamas-Linked Crypto Accounts at Binance Frozen
The Israel Police’s official account on social media platform X announced on Tuesday that cryptocurrency accounts associated with Hamas held at Binance have been frozen. The Palestinian militant organization is currently at war with Israel. The announcement details:
The Israel Police’s Cyber Unit, in collaboration with the Ministry of Defense, the Israel Security Agency, and other national intelligence agencies, has successfully frozen cryptocurrency accounts used by Hamas for fundraising their activities.
According to a separate announcement in Hebrew as translated by Google, the Israel Police’s cyber unit, Lahav 433, has frozen cryptocurrency accounts “which were used by Hamas to collect donations on social networks.” The police explained that following the outbreak of the war, Hamas launched an online fundraising campaign, asking the public to deposit cryptocurrencies into its accounts. The announcement continues:
The officers of the Cyber Unit of the Police and the National Headquarters for Economic Warfare acted immediately to locate the accounts and freeze them, with the help of the crypto exchange Binance, in order to transfer the funds to the state treasury.
Moreover, the Israel Police stated that it has also frozen a bank account at Barclays Bank used by Hamas. “The Police Cyber Unit worked in coordination with the British police and managed to freeze an additional account at the British ‘Barclays’ bank, the details of which were published by Hamas for the purpose of depositing donation funds,” Tuesday’s announcement notes. “The Israel Police, Ministry of Defense, and other partners will continue the fight against terrorist financing and targeting the strategic financial assets of terrorist organizations.”
What do you think about the Israel Police freezing crypto accounts at Binance as tensions between Israel and Hamas escalate? Let us know in the comments section below.
South Korea Seeks to Freeze North’s Crypto Assets Under New Law
The government in Seoul intends to submit new legislation tailored to facilitate the tracking and freezing of crypto used to fund the weapons programs of North Korea. A bill has been drafted after extended consultations between ministries with the aim to make South Korean sanctions more effective and improve the country’s cybersecurity.
South Korean Government Takes Aim at DPRK’s Stolen Digital Assets
A bill that will allow the Republic of Korea to better track and freeze assets obtained through crypto theft by the Democratic People’s Republic of Korea (DPRK) is expected to be submitted by the government in Seoul, the Korea Joongang Daily reported.
The legislation was initially announced by the South’s National Intelligence Service (NIS) in November but President Yoon Suk Yeol sent it back for revision, demanding “practical measures to bolster national security,” the publication noted, quoting sources familiar with the matter.
The draft law has been revised during months-long consultations between different ministries “to add teeth to the South’s existing sanctions” and reflect the president’s call for an urgent repair of the country’s cybersecurity framework, the newspaper revealed on Monday.
Citing an “administration insider,” Joongang wrote that the latest version of the bill features measures to “track and neutralize virtual coins and other cryptocurrency assets stolen by the North through hacking,” which were not in the original bill.
The regime in Pyongyang has been accused by the South Korean intelligence of acquiring 1.7 trillion Korean won (.28 billion) worth of bitcoin (BTC) and ethereum (ETH) in such attacks in 2022. And according to blockchain forensics firm Chainalysis, North Korean hackers have stolen more than billion over the past five years.
Independent sanctions monitors reporting to the U.N. have found that hacking groups working for North Korea have continued to attack companies in the crypto space this year while its government proceeds with the development of its nuclear and weapons programs.
Besides the new bill, the South Korean president’s administration also plans to set up a national committee that will deal with cybersecurity issues. Subordinated to the president, it will be headed by the chief of the National Security Office and include as a member the director of NIS.
Do you think South Korea will manage to deal with the North’s crypto hacking attempts? Share your thoughts on the subject in the comments section below.
A Comprehensive Look at the New Paypal Stablecoin, Its Control Dynamics, and ‘Freeze’ Option Trending on Social Media
At the time of writing, the official Paypal stablecoin PYUSD smart contract has been unveiled, and as it stands, the maximum aggregate supply amounts to 26,905,005.66 PYUSD. In spite of the existence of more than 26 million Paypal stablecoins, the contract continues to retain a substantial 92.91% of this supply. Concurrently, the Paxos Treasury wields control over 7.08% of all the PYUSD in circulation.
Paypal’s PYUSD: Unpacking the Smart Contract, ‘Freeze’ Function, and What It Means for Centralized Stablecoins
Over a day has passed since Paypal and Paxos announced the new stablecoin PYUSD and unveiled the official Github code repository and smart contract address. Before the smart contract’s publication, several bogus PYUSD tokens were created and introduced to decentralized exchange (dex) platforms. Currently, the token contract reveals roughly 26,905,005.66 PYUSD in circulation across eight wallets.
The leading two holders possess 99.99% of the supply, indicating that PYUSD exists but has not yet been distributed. The initial mint occurred on August 3, 2023, five days prior, and PYUSD has experienced a total of 175 transfers, presumably internal tests. One topic of conversation is Paypal’s contract containing a “freeze” option, which has become a trending subject on social media platforms such as X (formerly Twitter).
The smart contract features freeze and seizure (wipe) capabilities. The “freeze” function permits an appointed asset protection role to freeze a specific address; upon freezing, the address cannot transfer or receive tokens according to checks in transfer-related functions. The “unfreeze” function enables an assigned asset protection role to unfreeze a particular address, lifting any freeze-imposed limitations.
A designated asset protection role can utilize the “wipeFrozenAddress” function to clear the balance of a frozen address, effectively confiscating its tokens. The tokens are deducted from the total supply while setting the frozen address balance to zero. Although freezing features are currently under discussion, other well-known stablecoins like USDT, USDC, and USDP also possess address-freezing capabilities.
Many dollar-pegged token providers argue that these functionalities assist in regulatory compliance management or responding to suspicious activities. Additionally, the PYUSD contract employs an outdated Solidity version 0.4.24. Like most popular stablecoin assets presently, PYUSD’s contract can raise or lower the total token supply. Moreover, the PYUSD contract owner can also pause/unpause it, blocking transfers and approvals during a halted state.
The PYUSD smart contract shares similarities with today’s notable centralized stablecoin assets in terms of control and minting capabilities. It shouldn’t be confused with decentralized stablecoin assets or censorship-resistant cryptocurrencies like bitcoin (BTC). Paypal enjoys a substantial position in the financial world, and while PYUSD doesn’t pose a significant threat to decentralized and permissionless crypto assets, it could challenge centralized and regulated stablecoins.
How do you perceive the introduction of Paypal’s PYUSD and its unique ‘freeze’ option? Share your thoughts and opinions about this subject in the comments section below.
Warnings of Regulatory ‘Siege,’ Binance US Asset Freeze Averted, Schiff Says Fed Destroyed US Banking System, and More — Week in Review
Red tape and confusion has been the theme in crypto news as of late, with cryptocurrency firms scrambling to stay compliant with regulators like the U.S. Securities and Exchange Commission (SEC), with little to no definite regulatory clarity made available to them thus far. In the wake of lawsuits being launched by the SEC against massive exchanges like Binance and Coinbase, a former SEC official has warned of regulatory “siege” against crypto platforms, a judge has blocked efforts by the regulator to freeze Binance US’ assets, and economist Peter Schiff has said the Fed destroyed the U.S. banking system. This and more, just below, in the Bitcoin.com News Week in Review.
Founder of SEC Office of Internet Enforcement Warns of Upcoming Regulatory Siege: ‘Get Out of Crypto Platforms Now’
John Reed Stark, founder and former chief of the Office of Internet Enforcement of the U.S. Securities and Exchange Commission (SEC), has warned about a new regulatory “siege” against crypto platforms. Stark believes that “crypto trading platforms are high-risk, perilous, and inherently unsafe” and recommends investors exit all crypto exchanges.
Judge Postpones Asset Freeze as Binance US and SEC Agree to Work on Deal
A judge in Washington decided to give Binance US and the Securities and Exchange Commission (SEC) time to work out a deal to avoid the freezing of the exchange’s assets after the SEC sought a temporary restraining order. The two sides have since reached an agreement.
Economist Peter Schiff Says the Fed Destroyed US Banking System — ‘It’s Insolvent’
Economist Peter Schiff says the U.S. banking system is insolvent. He stressed that the Federal Reserve destroyed the U.S. banking system, citing near-zero interest rates at banks while “the Fed funds rate is 5.25% and the real inflation rate is much higher.” Schiff previously warned that the U.S. banking system is on the verge of a “much bigger collapse than 2008.”
Coinbase CEO Brian Armstrong: The SEC Told Us ‘Everything Other Than Bitcoin Is a Security’
Brian Armstrong, CEO of Coinbase, the largest U.S.-based cryptocurrency exchange, explained how negotiations reached a standstill with the U.S. Securities and Exchange Commission (SEC). In a recent interview with the Wall Street Journal, Armstrong detailed the changes in how the SEC approached securities regulation and how the exchange has tried to work with regulators since day one.
What are your thoughts on the current legal chaos in the crypto realm? Is this the beginnings of a path to mainstream adoption for bitcoin, or does it fly in the face of the very reason the protocol was invented? Be sure to share your perspective in the comments.