New York Attorney General Letitia James has secured a billion settlement with bankrupt cryptocurrency firms Genesis Global Capital, Genesis Asia Pacific, and Genesis Global Holdco. The settlement, which requires bankruptcy court approval, will establish a victims’ fund to compensate over 29,000 New Yorkers who invested more than .1 billion through the Gemini Earn program. […]
Bitcoin News
Venezuelan Attorney General Alleges Exxonmobil Financed Opposition to Essequibo’s Ballot With Cryptocurrency
Tarek William Saab, the Venezuelan attorney general, stated that Exxonmobil, a U.S.-based oil and gas company, used intermediaries and cryptocurrency to finance actions against the ballot where Venezuelans were consulted about their position on the ongoing Essequibo claim. Fourteen arrest warrants were issued for individuals who allegedly conspired against the country.
Exxonmobil Used Cryptocurrency in Conspiracy to Fuel Opposition to Venezuela’s Essequibo Claim
The Venezuelan government uncovered a plot that involves money laundering, cryptocurrency, and a conspiracy to influence the recent ballot to define Venezuela’s actions regarding the Essequibo claim. Tarek William Saab, the Venezuelan attorney general, stated that Exxonmobil, one of the biggest oil and gas companies, had used national and international intermediaries to this end, who received financing indirectly from the company.
Saab stated:
After several investigative procedures, a series of financing moves were identified from the money laundering of international organizations and foreign companies such as Exxonmobil.
The Essequibo referendum, held on December 3, saw the participation of more than 10 million Venezuelans who supported the country’s claims on the Guyana-administered zone.
Saab revealed the funds that served for this campaign were introduced to the country by using large sums of cash and cryptocurrency (specifically USDT, a dollar-pegged stablecoin) by Damian Merlo, a U.S. national linked to former U.S. President Donald Trump and the Salvadoran president Nayib Bukele. Savoi Jandon Wright, another U.S. national already in the custody of Venezuelan authorities, was in charge of these operations.
Fourteen arrest warrants were issued for these actions, involving opposition politicians outside the country, including former interim President of Venezuela Juan Guaido and former Hugo Chavez supporters Andres Izarra and Rafael Ramirez.
Exxonmobil CEO Darren Woods denied allegations that the company was financing Guyana’s actions in the Essequibo dispute. In a recent interview, Woods declared:
We are limiting our role to the area of our expertise, which is basically helping them (Guyana) to responsibly develop their resources.
This would be the second scandal involving cryptocurrency in Venezuela this year. In March, the head of the Venezuelan cryptocurrency watchdog Sunacrip, Joselit Ramirez, and other government officials, were arrested on corruption charges regarding the use of crypto to broker oil deals while sidestepping U.S. sanctions.
What do you think about Exxonmobil’s alleged cryptocurrency usage to finance the opposition in the recent Essequibo claim ballot in Venezuela? Tell us in the comments section.
Shiba Inu Open Interest Falls Behind General Crypto Market, What This Means For Price
The entire crypto market has seen a steady increase in open interest (OI) over the last few months. But the Shiba Inu open interest seems to not have followed this trend as much as others. While there has been a huge jump in the open interest of the largest cryptocurrencies in the industry, Shiba Inu’s rise has remained relatively muted, with implications for the altcoin’s price.
Shiba Inu Open Interest Trajectory
The Shiba Inu open interest initially started pumping back in August when the current bull run began. However, in the following months, the open interest has been considerably lower, happening at a time when open interest across other top cryptocurrencies is seeing large spikes.
Shiba Inu’s open interest crossed million back in August but has had a hard time returning to this level, data from Coinglass shows. The open interest has since dropped and continues to range just below the million level. Now, while this is not out of character for the altcoin, it is a deviation when it comes to following Bitcoin’s trends.
Dogecoin, SHIB’s foremost competitor, has followed the trajectory of Bitcoin, with the open interest staying low through the months of October and then exploding in the month of November. To put this in perspective, the Dogecoin open interest dropped as low as 6 million in October before exploding as high as 0 million in November.
However, the Shiba Inu open interest has struggled, maintaining a low peak of million in November with a small rise to million in December. This is in stark contrast to the open interest of Bitcoin and Dogecoin which have seen a flurry of activities as prices have recovered.
SHIB OI Deviates From Price
Another way that Shiba Inu has deviated from the rest of the crypto market is the fact that the price does not move directly proportional to the open interest. While the likes of Bitcoin and Dogecoin have shown prices moving upward as open interest has soared, SHIB’s price has remained fairly high while the open interest has remained fairly low.
This suggests that a rise in open interest is not actually one of the major factors pushing the SHIB price. So unlike others, a crash in open interest will likely not translate into a crash in price. However, Shiba Inu continues to trail the Bitcoin recovery closely, so a decline in the BTC price could sorely affect the SHIB price.
BIS General Manager Agustin Carstens Touts Tokenization as Part of the Future Financial System
Agustin Carstens, general manager of the Bank for International Settlements (BIS), has discussed tokenization’s significance in modernizing the current siloed financial system. Carstens stated that only through tokenization can the world move to a more interconnected and programmable financial system, where several central bank digital currencies (CBDCs) will be transacted seamlessly.
BIS Head Agustin Carstens Talks Tokenization as Origin of an International Unified Ledger
Agustin Carstens, general manager of the Bank for International Settlements (BIS), referred to the significance of tokenization as a key tech for building an interconnected financial system using central bank digital currency (CBDC). In a keynote speech at the CBDC & Future Monetary System Seminar in Seoul, Carstens explained how tokenization would allow the modernization of the current siloed financial system.
He stated:
Tokenization is a means of recording money and assets in a digital form on a programmable ledger. In practical terms, this means that users could transfer assets directly through programming instructions, rather than through intermediaries such as account managers who act on behalf of the user.
For Carstens, the tokenization of money and other assets and its integration on top of a “unified ledger” will help the current financial system to evolve, allowing a two-tiered currency system composed of wholesale tokenized CBDC and tokenized deposits to be implemented in several countries.
Carstens Blasts Outdated Regulatory Frameworks
According to Carstens, the technology necessary for this change is already here. Nonetheless, the regulations of each jurisdiction are hindering the advancements in this regard.
On this, Carstens declared:
The real challenge is to work out the legal and regulatory frameworks, the governance and the communication protocols needed for such a network of networks to operate. In short, we need to build the digital infrastructure.
However, he doesn’t think this will happen overnight and that every jurisdiction out there will join a hypothetical unified ledger. Nonetheless, the construction of protocols that allow interconnecting these systems can also help to achieve the desired interoperation goal.
He concluded that “the future monetary system needs wholesale central bank money at its core, complemented by tokenized commercial bank money and potentially other tokenized assets.”
Carstens has been a fervent proponent of CBDCs, stating before that their issuance would be the only way of “providing money in a form that meets the public’s needs and expectations.”
What do you think about Agustin Carstens’ thoughts on tokenization and CBDCs? Tell us in the comments section below.
Gemini, Genesis, DCG Face $1B Fraud Lawsuit by NY Attorney General; Gemini Says It’s the ‘Victim’ in Scandal
New York Attorney General Letitia James filed a lawsuit against crypto companies Gemini Trust Company, Genesis Global Capital, and its parent company Digital Currency Group (DCG) for allegedly defrauding over 230,000 investors out of more than billion. The lawsuit claims the companies lied about the risks of their lending program and tried to conceal over .1 billion in losses from investors.
Letitia James’ Crypto Fraud Lawsuit Seeks Over Billion in Losses
The latest lawsuit from Letitia James centers around the investment program called “Gemini Earn” which was launched in February 2021 as a partnership between Gemini and Genesis. Gemini operates a crypto exchange and ostensibly touted Genesis as a trusted lending partner for the Gemini Earn program. The program allowed investors to earn interest by lending their crypto assets to Genesis.
However, the attorney general’s investigation found that Gemini misrepresented the risks of lending through Genesis and continued promoting the Earn program as “safe and secure” even after revising Genesis’ credit rating to junk status internally. The lawsuit states that Genesis tried to hide massive losses exceeding .1 billion from soured loans after the collapse of Three Arrows Capital (3AC) in June 2022.
“These cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and it was middle-class investors who suffered as a result,” James declared. “Hardworking New Yorkers and investors around the country lost more than a billion dollars because they were fed blatant lies that their money would be safe and grow if they invested it in Gemini Earn.”
The alleged fraud impacted over 230,000 investors globally, including at least 29,000 New York residents. The lawsuit highlights reported victims like a retired 73-year-old grandmother who lost her entire 9,000 life savings invested in Gemini Earn. Another New Yorker allegedly lost ,500, nearly all his savings, after believing Gemini’s claims that the program was lower risk than other crypto lending options.
NY AG James is seeking to permanently ban the companies from offering securities or commodities in New York again. The lawsuit also aims to secure restitution for defrauded investors and disgorge any profits earned through the alleged fraud. The lawsuit represents the latest action James and her office have taken to crack down on the crypto industry amid growing concerns over consumer protection and potential misconduct. Earlier this year, she announced legislation to increase regulation of crypto assets in New York.
Her office has also obtained multiple settlements from unregistered cryptocurrency companies like Coinex and Coin Cafe. The attorney general contends that the alleged Gemini fraud points to ongoing risks posed by under-regulation in the cryptocurrency sector. Gemini responded to the lawsuit on the social media platform X.
“The NY AG’s lawsuit confirms what we’ve been saying all along — that Gemini, Earn users, and other creditors were the victims of a massive fraud and systematically ‘lied to’ by these parties about ‘Genesis’s financial condition,’” Gemini said. “With that said, we wholly disagree with the NY AG’s decision to also sue Gemini. Blaming a victim for being defrauded and lied to makes no sense and we look forward to defending ourselves against this inconsistent position.”
What do you think about Letitia James’ latest lawsuit against the three crypto giants? Share your thoughts and opinions about this subject in the comments section below.
UN Secretary General Antonio Guterres Calls for Reform of ‘Outdated, Dysfunctional, and Unfair’ Global Financial Architecture
Antonio Guterres, Secretary General of the United Nations (U.N.), has noted changes that need to happen with today’s financial institutions to fit into the current multilateral world. During the recent BRICS leaders summit, Guterres said that the current “outdated, dysfunctional, and unfair” financial system needs to be reformed, including Bretton Woods institutions.
UN Secretary General Antonio Guterres: We Must Urgently Reinvigorate Multilateralism
Antonio Guterres, Secretary General of the United Nations (U.N.), has called to embrace cooperation and multilateralism, explaining that there was “no choice” as the world becomes more multipolar. At the recent BRICS leaders summit in Johannesburg, Guterres stated that multipolarity was not guaranteed to achieve peace and that more should be done to grow a “global community.”
Guterres blasted the global establishment, stating:
As the global community moves towards multipolarity, we desperately need a strengthened and reformed multilateral architecture based on the U.N. Charter and international law.
Furthermore, Guterres acknowledged current institutions were outdated and answered to a deprecated world configuration, calling for reforms that would “reflect today’s power and economic realities, and not the power and economic realities of the post-Second World War.”
“This is particularly true of the Security Council of the United Nations and the Bretton Woods institutions,” Guterres specified, including the International Monetary Fund and the World Bank in his call for reform.
The U.N. Security Council has been widely criticized as small and ineffective by several scholars consulted by the Carnegie Endowment for International Peace.
Financial System Reform
Guterres reinforced the need to reform the current financial system as part of what he called “priorities for action and justice.” Nonetheless, he recognized that this is unlikely to happen quickly in today’s geopolitical situation.
Guterres stated:
Redesigning today’s outdated, dysfunctional, and unfair global financial architecture is necessary, but I know it won’t happen overnight. Yet we can – and must – take practical action now.
The BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa, has been moving to create a new alternative financial architecture away from Western traditional power centers and the influence of the U.S. dollar. The BRICS “Johannesburg II Declaration” stressed the need to transact in national currencies and called for the consideration of “the issue of local currencies, payment instruments and platforms” for the next summit that will be held in Kazan.
What do you think about Guterres’ criticism of current financial institutions? Tell us in the comments section below.
Coinex Settles With NY Attorney General, Pays $1.7M in Penalties; Announces Exit from US Market
According to a press release issued on June 15 by the Office of the New York State Attorney General, the cryptocurrency exchange Coinex has reached a settlement with Letitia James, the chief law enforcement officer. The attorney general stated that Coinex will pay .7 million in penalties and refunds and is barred from operating its platform in the state.
Crypto Exchange Coinex Settles Legal Battle With NY Attorney General
In late February 2023, Letitia James, the attorney general (AG) of New York, filed a lawsuit against Coinex, a cryptocurrency exchange. The allegations included the offering of unregistered securities and operating an unregistered exchange. As per the initial complaint, the AG’s Office discovered that unregistered securities were obtainable from Coinex in New York.
A little over three months later, Coinex has reached a settlement with the AG, agreeing to pay .7 million in penalties and refunds. Consequently, the exchange is now prohibited from operating in New York, and Coinex has expressed its plans to withdraw from the entire United States. James emphasized that the primary objective of the AG’s Office is to safeguard investors in New York, and she hopes that this settlement serves as a valuable lesson.
“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” James said. “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”
In a parallel fashion in March, the AG’s Office filed a lawsuit against Kucoin, adopting a similar approach. Notably, the state’s chief law enforcement officer classified ethereum (ETH) as an unregistered security in that particular case. Furthermore, in May, the AG Office successfully obtained .3 million from Coin Cafe, a crypto firm based in Brooklyn, for its deceptive practices towards investors.
The crackdown led by James and her office has coincided with the heightened enforcement efforts initiated by the U.S. Securities and Exchange Commission (SEC) during the same period.
What do you think about the settlement between Coinex and the New York attorney general? Share your thoughts and opinions about this subject in the comments section below.
Solana’s Crypto and Web3 Smartphone ‘Saga’ Available to the General Public on May 8
Solana’s cryptocurrency and Web3 smartphone, Saga, will be available for purchase on Monday, May 8, 2023. Crafted by OSOM, the Android smartphone is designed specifically for Web3 applications and enables users to self-custody crypto assets using its Seed Vault feature.
Solana Smartphone Saga Ready for the Masses
Solana Labs, Inc., the company behind the Solana blockchain ecosystem, announced that the Saga smartphone will be available for purchase on May 8, with pre-orders shipping on April 20. As stated by Solana Mobile’s Twitter account, the team aims to “modernize how people interact with their digital assets for enhanced usability and increased security.” The smartphone comes with several pre-installed decentralized applications (dapps) and runs on the Android 13 operating system.
The phone includes a Seed Vault for securely storing crypto assets and offers 512 GB of storage. Its 6.67-inch OLED display pairs with a fingerprint scanner for extra security. The device charges using a USB-C cable and features a 50MP and 12MP ultrawide dual-camera system. The Seed Vault ensures protection of private keys through secure hardware and AES encryption, the device’s specifications note.
Powered by the “Solana Mobile Stack,” the ,000 Web3 smartphone also boasts a Solana Dapp Store that currently hosts 16 dapps covering NFTs, DAOs, staking, and more. Solana’s Saga is not the first crypto-centric phone; past examples include HTC’s Exodus, Samsung Galaxy S10’s crypto-integrated native apps, and Siren Labs’ 9 Finney blockchain smartphone.
Though both the Exodus and Finney concepts failed to gain traction, Samsung still offers the Samsung Blockchain Keystore SDK for Android systems. The Cupertino-based privacy-first tech company OSOM crafted the Solana Saga phone. Founded by ex-Essential employee Jason Keats, OSOM recently closed a Series A funding round partnering with Solana Mobile, raising million on September 9, 2022, according to Pitchbook data.
What are your thoughts on the new Solana Saga phone? Share your opinions in the comments section below.
Crypto Exchanges Must Share User Data With Russia, Prosecutor General Demands
Digital asset exchanges must be obliged to provide user information to Russia’s law enforcement agencies, the country’s Prosecutor General has insisted. The circulation of cryptocurrencies in the Russian Federation needs to be regulated to counter money laundering, the official added.
Cryptocurrency Exchanges Have to Report to Russian Authorities, Chief Prosecutor Says
Crypto service providers should be required to register in Russia and exchanges obliged to share information about their users with Russian security services, according to the head of the nation’s Prosecutor General’s Office, Igor Krasnov.
He also believes that merely granting cryptocurrencies property status under Russian law is not sufficient to fight the legalization of criminal proceeds. Krasnov urged for their regulation in order to address the challenges posed by their use for illicit purposes.
Quoted by the “Financial Security” magazine published by Russia’s financial watchdog, Rosfinmonitoring, the top prosecutor further explained that the difficult geopolitical situation increases the risks of exploiting vulnerabilities associated with digital assets.
Igor Krasnov also called for adding cryptocurrencies to the Russian criminal law, including recognizing that they can be the subject of crime and encroachment as well as establishing procedures for their seizure, storage, and confiscation by the state.
Crypto assets and related transactions are yet to be comprehensively regulated in Russia where lawmakers and other officials are still considering their approach. Most government institutions favor a restrictive regime preventing their free circulation while legalizing some activities such as mining as well as payments in cross-border settlements and trading under special legal regimes.
A bill on crypto mining is still under review in the State Duma, the lower house of Russian parliament. Reports revealed last month that lawmakers are considering introducing criminal liability for miners evading taxation and failing to report their digital asset holdings to the government.
The proposal, originating from the finance ministry, provoked a reaction from the Russian crypto industry association which asked for clarification and warned that Russia may lag behind other countries if Moscow maintains its tough stance on crypto regulations.
Do you think Russia will oblige cryptocurrency exchanges to register and provide user data to law enforcement authorities? Tell us in the comments section below.
National Exchanges Reportedly Pause Operations in Venezuela, as Attorney General Confirms Crypto Watchdog Sunacrip Involvement in Oil Sale Schemes
National cryptocurrency exchanges have paused their activities in Venezuela according to reports, as the anti-corruption probe on national crypto watchdog Sunacrip and unlawful oil sales continues in the country. Tarek William Saab, attorney general, confirmed the involvement of the institution in a parallel scheme that involved the sale of Venezuelan oil to third parties, mentioning Sunacrip as part of the criminal structure.
National Exchanges Pause Operations in Venezuela
The “Crypto-PDVSA” anti-corruption probe, named after the state-owned oil company, is still investigating the involvement of Sunacrip, the Venezuelan crypto watchdog, in the illegal sale of oil to third parties.
According to recent reports, the probe has resulted in the pause of all trading activity of national cryptocurrency exchanges, with no date for resuming operations announced.
Ana Ojeda, a Venezuelan cryptocurrency lawyer, also known as “Criptolawyer” on Twitter, stated:
Venezuelan exchanges close operations by orders of Sunacrip. Supposedly temporary measures while the institution is restructured.
Ojeda also confirmed that registered miners from all over the country were forced to pause their operations while the probe continues, stating that “digital miners from all over the country, registered with the agency, have also been turned off.”
Cryptobuyer, one of the main exchanges in the country, issued a press release in which it stated that it would be pausing its activities according to orders issued by Sunacrip, but hours later, it issued yet another release that denied this, stating that it was reporting about a temporal stop in its own operations.
Attorney General Confirms Sunacrip’s Involvement in Oil Sale Scheme
Tarek William Saab, attorney general of Venezuela, officially confirmed the involvement of Sunacrip in parallel operations that successfully allowed the sale of oil to third parties. In a press conference offered on March 25, Saab explained, in part, how this corruption scheme operated. He declared that PDVSA officials used their influence to execute oil sales that were parallel to the ones executed by the state-owned oil company.
After these operations, Sunacrip did not deliver the proceeds of the sale of this oil to PDVSA. Saab said the money was used to buy cryptocurrency assets and injected into other activities in order to launder it. However, Saab did not say whether cryptocurrencies were used as a payment method for the illegally sold crude.
There are currently 11 people apprehended in relation to these crimes, including former Sunacrip head Joselit Ramirez.
What do you think about the pause of trading activities of cryptocurrency exchanges in Venezuela and the Crypto-PDVSA probe? Tell us in the comment section below.