David Kagel, a disbarred California attorney, pleaded guilty to orchestrating a cryptocurrency Ponzi scheme that defrauded victims of over .5 million. Kagel, 85, promised high returns through artificial intelligence trading bots and falsely claimed to hold million in bitcoin to secure investments. He used his attorney position to instill trust, providing fake letters on […]
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Pro-Ripple Lawyer Tags Poor XRP Price Performance As Unnatural, Rally Imminent?
XRP’s price action for the last three years has been majorly disappointing, with the crypto yet to turn positive for its holders. Notably, XRP’s price action for the past three months has been brutal and needs to catch up when compared to other large cryptos.
Despite this underwhelming price movement, many analysts haven’t stopped predicting a potential rally for XRP in the coming months. Particularly, attorney Bill Morgan, who is known for his bullish stance on XRP, recently took to social media to share his take on the asset’s lackluster performance, calling it “unnatural.”
Pro-XRP Lawyer Calls The Decline ‘Unnatural’
Morgan’s recent observation on XRP goes along with the wider thought among investors. According to him, XRP’s performance over the past 90 days has been so unnatural, raising the question of how this poor performance came to be. This observation came as a reply to a chart shared by another investor comparing crypto gains.
At least XRP isn’t last. The question is why has the performance over 90 days been so poor. It is unnatural. https://t.co/hsvBBhUBJQ
— bill morgan (@Belisarius2020) February 13, 2024
According to the data, XRP is currently on a 17.8% decline in the past 90 days. However, other top cryptocurrencies like Bitcoin, Chainlink, BNB, and Ethereum have performed 30% gains in the same timeframe amidst wider crypto market rallies. The insights made by Morgan have not only shed light on the underperformance of XRP but have also sparked discussions among supporters.
This says it all…. pic.twitter.com/nLHxbawqDz
— MerlinR₳s (@MerlinRas21) February 13, 2024
The general consensus has been of an unnatural price action. The unnatural in this case has mostly been caused by the legal tussle between the SEC and XRP’s payment company, Ripple, which has lingered for the past three years. Although Ripple has made major headways against the SEC in the past year, the recent price action indicates that XRP is yet to garner support from institutional and large investors.
Reversal Into A Rally?
The XRP community remains optimistic about the digital asset’s future. Many long-term XRP holders, often called “XRP Army” members, believe the lackluster price action is temporary and that XRP will rebound significantly in the coming months.
According to Crypto Rover, a crypto YouTuber, XRP is on the verge of breaking out of a triangular price action to the upside. His XRP/USD price chart indicates the formation of lower highs and higher lows for the past three years and is now at a squeeze. Morgan also relayed optimism to the analysis, stating “Now or never!”
It has been 3 years now…
But I do believe the breakout can be massive! pic.twitter.com/lUZNTvzQNc
— Crypto Rover (@rovercrc) February 12, 2024
At the time of writing, XRP is trading at .54, down by 3.50% in the past seven days. Crypto analyst Dark Defender forecasted a .66 price point and beyond in the coming months. Talks continue to linger around the potential of a spot XRP ETF.
Now or never!
https://t.co/rxPTBpdFSf
— bill morgan (@Belisarius2020) February 12, 2024
Featured image from Adobe Stock, chart from TradingView
Pro-Crypto Lawyer John Deaton Enters Senate Race to Challenge Elizabeth Warren
Cryptocurrency advocate John Deaton has formally announced his candidacy for the Senate in Massachusetts, setting his sights on unseating the current Democratic Senator Elizabeth Warren from her position. “I’m excited for the opportunity to fight for change, and for the people of Massachusetts in the United States Senate,” Deaton wrote on Tuesday. Deaton vs. Warren: […]
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Lawyer Says FTX Has Abandoned Revival Efforts, Judge Certifies Controversial Reimbursement Plan
The collapsed cryptocurrency exchange FTX will not be proceeding with efforts to resume operations because none of the prospective suitors has pledged to invest the needed capital, the company’s attorney has said. A U.S. Bankruptcy Court judge has said FTX’s proposal to reimburse users based on November 2022 is the correct interpretation of the law.
None of FTX’s Suitors Wants to Put in the Required Capital
An attorney for the collapsed cryptocurrency exchange FTX reportedly told a bankruptcy court that the company has abandoned efforts to resume operations because none of the prospective investors is willing to put in the required capital to make this happen. According to Andy Dietderich, the attorney who represented FTX in the bankruptcy court, the exchange’s unsuccessful negotiations with possible suitors showed that jailed founder Sam Bankman Fried (SBF) never intended for FTX to operate as a viable business.
Dietderich argued that the costs and risks associated with reviving FTX far outweighed any benefit that comes with any such revival of the crypto exchange.
“FTX was an irresponsible sham created by a convicted felon. The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left in a dumpster were simply too high,” Dietderich said on Jan.31.
FTX’s Controversial Reimbursement Proposal
Rather than restarting the business, FTX will now focus on generating revenue from the sale of its assets. The funds raised will be used to reimburse FTX users whose assets were locked in when the crypto exchange filed for bankruptcy in late 2022. At the time of FTX’s sudden collapse, the USD value of many crypto assets, including Bitcoin (BTC), was at its lowest in that year. However, just over a year after FTX’s collapse, the prices of most crypto assets hit their highest in nearly two years, with BTC having grown by 160% in 2023 alone.
Despite Bitcoin’s rise from just under ,000 in November 2022 to ,000 by Jan. 31, 2023, the collapsed cryptocurrency firm’s rescue team has proposed to base the reimbursements on November 2022 prices. This decision has angered users who feel short-changed.
However, U.S. Bankruptcy Judge John Dorsey dismissed the users’ complaints in his ruling. He suggested that FTX had correctly interpreted the bankruptcy law, which clearly states that debts should be repaid based on their value at the time of a bankruptcy filing.
What are your thoughts on this story? Let us know what you think in the comments section below.
Onecoin Lawyer Mark Scott Sentenced to 10 Years for Money Laundering
Mark Scott, a lawyer entangled in the infamous Onecoin cryptocurrency fraud, was sentenced to 10 years in prison by the U.S. District Court. The sentencing comes after a 2019 conviction.
Onecoin Lawyer Mark Scott Receives Decade-Long Prison Sentence
Mark Scott, a lawyer associated with the infamous crypto firm, was sentenced to a decade in prison. Scott faced charges of bank fraud and money laundering in connection to the Onecoin scheme. This sentencing, handed down by U.S. District Judge Edgardo Ramos on Jan. 25, follows his November 2019 conviction on two felony counts.
According to Inner City Press, which reported live from the courtroom, the sentencing revealed details of Scott’s attempts to manage his assets following the conviction. Notably, he sold a Porsche for 0,000 and transferred 0,000 to an account in the Cayman Islands. These actions were brought up by the Assistant U.S. attorney as efforts to protect assets from forfeiture, which were meant to compensate Onecoin victims.
The prosecution pushed for a minimum 17-year sentence, due to Scott’s conscious involvement in laundering millions for Onecoin. Scott’s defense argued for leniency, citing his lack of prior knowledge about Onecoin’s fraudulent nature and presenting a plea for a five-year sentence, comparable to the sentencing of other defendants in the case, like Irina Dilkinska.
Judge Ramos, acknowledging the gravity of the offense and its impact on Onecoin victims, imposed a 10-year sentence, a compromise between the prosecution’s and defense’s recommendations. Before the sentencing, Scott expressed sympathy for the victims of Onecoin’s scheme, a sentiment noted by the court but insufficient to significantly mitigate his sentence.
The Onecoin saga continues to unravel, with significant figures like Onecoin co-founder Ruja Ignatova, often referred to as the “Cryptoqueen” still at large and others, including Sebastian Greenwood, already sentenced for their roles in the fraudulent operation.
Onecoin, founded in 2014 by Ignatova, was promoted as a cryptocurrency token but lacked a genuine blockchain, functioning instead as a multi-level marketing scheme. It lured investors with the promise of substantial returns, only to pay older investors with funds from new ones, a classic hallmark of a Ponzi scheme.
Do you agree with the sentencing by the U.S. District Judge? Share your thoughts and opinions about this subject in the comments section below.
Prohibition of Cash Withdrawals From VASPs Operated Accounts May Contradict Central Bank’s Cashless Policy — Nigerian Lawyer
Nigerian fintech lawyer Senator Ihenyen said the new central bank guidelines which bar the withdrawal of cash from accounts operated by virtual asset service providers (VASPs) seem “reasonable and understandable.” The lawyer however believes an “outright” prohibition of cash withdrawals from VASPs operated accounts may “be in conflict with the CBN’s own cashless policy.”
‘Fraudulent Leakages’
Nigerian fintech lawyer Senator Ihenyen has said that the new Central Bank of Nigeria (CBN) guidelines prohibiting cash withdrawals from bank accounts operated by virtual asset service providers may at first glance seem “reasonable and understandable.” Citing the central bank’s past circulars, Ihenyen suggested that the prohibition may be consistent with the CBN’s goal of combating the use of cash in funding criminal activities, as well as containing the high cost of handling cash.
The lawyer also highlighted the impact of cash transactions on monetary policy, as well as the effect of “fraudulent leakages” that crypto-to-fiat cash withdrawals may have on the financial system, as other possible reasons why the CBN has included the prohibition in the new guidelines.
As reported by Bitcoin.com News, the CBN has now lifted the prohibition which barred financial institutions from dealing with crypto entities. In its Dec. 22 circular, the Nigerian central bank suggested that the prohibition issued on Feb. 5, 2021, did not adhere to the Financial Action Task Force (FATF) recommendation 15 which calls for the regulation of VASPs to “prevent misuse of virtual assets for ML/TF/PF.”
Nevertheless, the latest CBN circular still stipulates that banks and other financial institutions are still “prohibited from holding, trading and/or transacting in virtual currencies on their own account.” This is in addition to the cash withdrawal prohibition.
CBN Cashless Policy
However, Ihenyen believes that the central bank should also consider its existing policy and other factors if it is genuinely interested in ensuring the soundness and safety of the financial system.
“An outright elimination of cash withdrawals from all accounts operated by VASPs may in fact be in conflict with the CBN’s own cashless policy. Under the cashless policy, cash withdrawal limits, not cash withdrawal prohibition, were introduced. In fact, the CBN cashless policy does not prohibit cash withdrawals above the stipulated limits,” Ihenyen told Bitcoin.com News.
The lawyer added that if these limits are exceeded, the cashless policy recommends imposing a cash handling fee. This policy applies to all accounts, including those operated by VASPs. However, government revenue-generation accounts, primary mortgage institutions, microfinance banks, and embassies are exempt from this policy.
Alternatively, VASPs may be required to hold all customer funds for transfers in a designated customer account, according to Ihenyen. Under this arrangement, customer funds will be domiciled with any deposit money bank in Nigeria.
This separation of the customer account from other accounts operated by the VASPs makes it easier for the VASP operator, the financial, and the CBN to manage the cash withdrawal limits regime.
Commenting on the importance of having engagements, the lawyer said:
“No doubt, as financial innovations evolve, regulation will gradually come along. With continual stakeholder engagements involving regulators, innovators, and users, I believe that the consumer—and Nigeria generally—will be the greatest winner.”
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What are your thoughts on this story? Let us know what you think in the comments section below.
Lawyer Says Senator Elizabeth Warren Conspires With SEC Chair Gary Gensler, Violating Her Oath
Lawyer John Deaton claimed U.S. Senator Elizabeth Warren has violated her oath as a member of the Senate Banking Committee. Deaton alleges that Warren, tasked with overseeing the U.S. Securities and Exchange Commission (SEC), “conspired” with close friend and SEC Chair Gary Gensler, providing him with pre-arranged questions and suggested answers for a Senate hearing.
‘Elizabeth Warren Violated Her Oath’
John Deaton, a well-known lawyer in the crypto community, slammed U.S. Senator Elizabeth Warren (D-MA) on social media platform X on Saturday, accusing her of violating her oath as a senator overseeing the U.S. Securities and Exchange Commission (SEC).
Deaton’s post was in response to a shared Fox News video clip that presented evidence suggesting that Senator Warren coached SEC Chair Gary Gensler in preparation for a 2021 Senate hearing. Emails obtained from Warren’s office by the Heritage Foundation Oversight Project revealed that her economic advisor sent Gensler a list of questions the senator planned to ask the SEC chair, along with suggested answers for him. “Let me know if you’re okay with the questions as currently written,” the advisor asked Gensler. In a follow-up letter, Warren’s advisor further asked: “Let me know if it’s looking like the chair has any issues with the framing of the questions … definitely don’t want to put him in a tough spot.” During the hearing, Warren asked almost verbatim from the email.
“As a senator, sitting on the Banking Committee, Elizabeth Warren violated her oath,” Deaton alleged, elaborating:
Her job is to provide and engage in actual oversight of the SEC. Instead, she conspired with her close friend Gary Gensler, not only giving him the exact questions she would ask before a hearing, but also the suggested answers to those same questions.
“That isn’t oversight — it’s fraudulent, coached testimony before Congress. She literally said that she didn’t want to place Gensler in a tough spot. Are you f’ing kidding me?” the lawyer exclaimed. “Her job is to place the chairman of the SEC in a tough spot — asking hard-hitting or ‘tough’ questions.”
Noting that Warren is “the single biggest critic of Bitcoin and crypto in the U.S. Congress,” Deaton emphasized that the Massachusetts senator sits on the Senate Banking Committee overseeing the SEC, and yet “she hasn’t asked the SEC or Gensler about [Sam Bankman-Fried] SBF’s multiple meetings with Gensler and the SEC. She hasn’t questioned why or how Gensler missed SBF’s Fraud, considering his up and close meetings with SBF.”
The lawyer further raised questions about Gensler’s numerous meetings with SBF, contrasting them with the lack of engagement with Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal, “despite Coinbase begging for meetings and being the largest exchange in America and also a U.S. publicly traded company.” Deaton opined:
Warren preaches against crypto every chance she can, but doesn’t ask why Gensler missed FTX, Celsius Network, Luna/UST, etc.? Why not? She found time to help kill a couple banks that worked with crypto companies. Why not focus on the source of the problem: actual fraud?
“Is she not asking certain questions because of her own ties to SBF’s parents? SBF’s father — Joe Bankman wrote Warren’s tax plan in 2016. We know without a doubt that he helped SBF create all those shell companies to avoid taxes. SBF’s mother runs a PAC [Political Action Committee] to help Democrats, like Warren, get elected,” he concluded.
Do you agree with lawyer John Deaton that Senator Elizabeth Warren has violated her oath and conspired with SEC Chair Gary Gensler? Let us know in the comments section below.
Pro-XRP Lawyer Deaton Picks His Top 10 Cryptos For The Year Ahead
In a recent post on X (formerly Twitter), noted XRP advocate and lawyer John Deaton shared his top 10 cryptocurrency picks for the next 12 months. His selection includes a mix of well-established and emerging digital currencies.
He stated, “If you had to pick only 10 tokens to own for the next 12 months (as a trade) what are they? Here’s mine: BTC, XRP, ETH, QNT, RNDR, SOL, KAS, AVAX, HBAR, CSPR. What am I missing?”
Analysis Of The Pro-XRP Lawyer’s Picks
Bitcoin (BTC): Deaton likely selected Bitcoin due to the potential imminent approval of a spot Bitcoin ETF in the United States. Bloomberg Intelligence analysts anticipate that the US Securities and Exchange Commission (SEC) might approve multiple spot Bitcoin ETF by January 10, 2024, a move that could significantly impact Bitcoin’s value
XRP: Deaton’s choice of XRP is consistent with his role as a strong supporter and legal advocate for the XRP community. XRP’s status as a regulatory-defined token in the United States with high utility adds to its appeal. Currently, XRP is consolidating after being rejected at the 0.618 Fibonacci retracement level at .7492.
Ethereum (ETH): Despite the harsh criticism of Ethereum’s founder, Deaton has included ETH in his list. This might be due to its position as the second-largest cryptocurrency by market cap. Also, BlackRock and several other financial giants have recently applied for a Spot Ethereum ETF, adding to the potential bullish trajectory of ETH in the next 12 months.
Quant (QNT): The QNT token of Quant Network has found itself in a downtrend channel since late January this year, down approximately 35% from its year-to-date high. With the current price of .74, QNT is 78% below its all-time high of 8.38 on November 21, 2023. Nevertheless, Quant can boast partnerships with major financial institutions, including the Bank for International Settlements (BIS), Bank of England, Bank of Canada, MasterCard, Amazon, and Barclays, to develop and test use cases for central bank digital currencies (CBDCs).
Render Network (RNDR): The RDNR token is currently up 725% since the beginning of the year. Render Network provides a decentralized GPU rendering platform, allowing artists to scale GPU rendering work on-demand to high-performance GPU nodes. Notably, the RDNR price has also profited from the AI narrative.
Solana: SOL has been one of the other big winners this year, up nearly 600% at the current price since it went below at the end of last year. Solana is currently seen as the potential biggest challenger to Ethereum as a layer-1 blockchain, which is why Deaton may have ranked SOL on his list.
Kaspa (KAS): Kaspa has gained attention due to its positioning as a highly scalable Layer-1 blockchain, with a focus on fast confirmations and high throughput. Its underlying technology, GhostDAG/PHANTOM protocol, aims to balance security, scalability, and decentralization. The KAS token’s impressive performance, with an over 2,600 % increase year-to-date, makes it a notable inclusion.
Avalanche (AVAX): Avalanche’s AVAX token might be included due to its recent gains of almost 130% since mid-October. Deaton may have chosen AVAX because of Avalanche’s involvement in the Monetary Authority of Singapore’s tokenization initiative, Project Guardian, as well as its partnership with Amazon Web Services and Deloitte, all of which are potential catalysts for price appreciation.
Hedera (HBAR): Hedera Hashgraph has gained prominence by becoming part of FedNow, the US Federal Reserve’s instant payments platform. This development led to a significant surge in the price of Hedera’s HBAR token.
Casper (CSPR): Casper’s inclusion may be due to its position as one of the fastest-growing blockchain projects, with a focus on solving the blockchain trilemma of scalability, security, and decentralization.
Remarkably, Deaton’s selections reflect a balance between established market leaders like Bitcoin and Ethereum, and emerging, high-potential projects like Kaspa and Casper. This blend indicates a strategic approach to cryptocurrency investment, recognizing both stability and innovation within the digital asset space.
SEC Wants $770 Million From Ripple — Lawyer Says SEC Is ‘Pissed and Embarrassed’
The U.S. Securities and Exchange Commission (SEC) reportedly wants Ripple to pay a 0 million penalty for violating securities laws. Crypto lawyer John Deaton explained that the securities regulator is “pissed and embarrassed” after it lost several legal battles against the crypto firm.
SEC Wants 0M From Ripple
Crypto lawyer John Deaton detailed on social media platform X Wednesday that the U.S. Securities and Exchange Commission (SEC) is demanding a 0 million penalty from Ripple for violating securities laws.
The SEC is pursuing this penalty after losing several legal battles against Ripple. Last week, the regulator dropped charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Earlier this month, District Judge Analisa Torres rejected the agency’s bid to appeal her ruling regarding XRP. Deaton opined:
The SEC is pissed and embarrassed and wants 0M worth of flesh.
“What people need to understand is that the penalty phase is like a second case requiring more depositions, interrogatories, requests for production of documents, emails, bank statements, contracts, ODL [on-demand liquidity] transactions, etc.,” he explained. “I don’t expect a final judgment, issued by Judge Torres, until late summer, at the earliest. It literally could take a full year before an appeal is filed in this case.”
The lawyer cited the case of LBRY, a blockchain-based file-sharing and payment network, in which the SEC initially sought million from the company. He pointed out: “It took eight months of additional litigation before the judge ultimately issued a fine of 0K.”
Deaton also anticipates that the outcome of the SEC’s lawsuit against cryptocurrency exchange Coinbase (Nasdaq: COIN) will impact the final amount that Ripple will have to pay the regulatory body. He believes that if Coinbase wins its motion-to-dismiss (MTD) the SEC’s lawsuit, then “the SEC will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple.” However, he predicts “no settlement” if Coinbase loses its MTD.
Noting that the “oral argument on the Coinbase motion” is scheduled for Jan. 17, 2024, he said: “A ruling is likely 60-120 days later.” The lawyer emphasized:
Until then I think Ripple will spend tens of millions of dollars in legal fees fighting to greatly reduce the 0M.
Deaton further stated that he believes Ripple will be successful in drastically reducing the 0 million penalty figure. “This isn’t a fraud case,” he stressed. “The goal is to reach an appropriate fine against Ripple for engaging in transactions that qualified as the sale of unregistered securities, but sold in the context of a new asset that other federal agencies declared ‘virtual currencies.’”
What do you think about the SEC wanting 0 million from Ripple? Let us know in the comments section below.
SEC Demands $700 Million Settlement From Ripple, Pro-XRP Lawyer Reveals Next Steps
The US Securities and Exchange Securities Commission (SEC) and Ripple Labs are expected to proceed to finalize a settlement following the official dismissal of the former’s claims against Ripple’s CEO Brad Garlinghouse and its co-founder Chris Larsen. In line with that, pro-XRP legal expert John Deaton has revealed how the settlement will play out.
A Settlement Isn’t Going To Be Straightforward
In a post shared on his X (formerly Twitter) platform, Deaton mentioned that he doesn’t believe “there has been a single serious conversation regarding settlement” between the SEC and Ripple alongside its executives. He said that the Commission is “pissed and embarrassed and wants 0M” as a fine for Ripple’s violation of securities laws.
He further noted that the penalty phase isn’t as straightforward as some may think, as it is “like a second case” but one that requires more depositions, interrogatories, requests for the production of documents, emails, bank statements, contracts, and ODL transactions.
The process is also made more difficult as while the SEC is insistent on a 0 million fine, Ripple wants to “drastically reduce” the figure, as Deaton stated. To achieve this, Ripple will be looking to exclude the ODL transactions, which the SEC may claim are under institutional sales that violated securities laws.
Deaton also alluded to the SEC’s case against the decentralized content-sharing platform LBRY, which took “eight months of additional litigation” before the Judge ordered that the platform pay a fine of 1,614 to the Commission. That case was also not straightforward as both parties had to file multiple briefs again, and depositions were taken.
How The SEC’s Case Against Ripple Could Play Out
As to when a final judgment could come from Judge Analisa Torres, Deaton doesn’t foresee one until late summer “at the earliest.” With that in mind, he mentioned that it could take a full year before the SEC (or even Ripple) gets the chance to file an appeal in this case.
The lawyer once again mentioned the role that Coinbase’s Motion To Dismiss (MTD) could play in this case and a potential settlement. He said that the SEC “will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple” if Judge Failla grants the motion.
However, a settlement is unlikely if the crypto exchange were to lose its MTD. Coinbase is asking the judge to dismiss the SEC’s case against it, arguing that the Commission doesn’t have jurisdiction over its activities. Hearing of Coinbase’s oral argument is slated for January 17, 2024, with a ruling likely to come within 60 to 120 days after.