Singapore’s national goalkeeper, Hassan Sunny, has been appointed as the Chief Security Officer and spokesperson for HTX Global and TRON. The announcement was first made by Justin Sun on social media. Drawing parallels between Sunny’s role on the football field and his new position, Sun expressed confidence that just as Sunny defends the goal line […]
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Australian Police Officer in Court for Stealing Nearly 82 BTC From Seized Drug Trafficker’s Wallet
An Australian police officer recently appeared in a Melbourne court where he faced charges of stealing 81.616 bitcoins from a crypto wallet seized from drug traffickers. After initially blaming the drug traffickers,’ the Australian Federal Police later reopened the case after an expert found evidence linking the theft to a former police officer. The accused […]
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Binance Welcomes Back Steve Christie as Deputy Chief Compliance Officer
Binance has welcomed back Steve Christie, its former Senior Vice President of Compliance, as Deputy Chief Compliance Officer.
Binance Bolsters Compliance Team, Welcoming Steve Christie Back to Leadership Role
Cryptocurrency exchange Binance has announced the return of Steve Christie, its former Senior Vice President of Compliance, to the fold. Christie is stepping into the role of Deputy Chief Compliance Officer (DCCO), filling the gap left by Kristen Hecht, Binance’s previous Deputy Chief Compliance and Global Money Laundering Reporting Officer.
“I am impressed by what Binance has accomplished on the compliance front since I stepped away momentarily,” Christie remarked. “I always believed that no other crypto exchange dedicates as much effort in compliance as Binance… The team is even stronger today, and I am supported by a robust team with quality talent.”
Under the leadership of Noah Perlman, Binance’s Chief Compliance Officer, Christie will work to enhance the exchange’s global compliance program further. This involves close collaboration with regulators, industry bodies, and Binance’s business leaders to advance the company’s efforts and commitment to best practices in regulatory compliance.
Perlman expressed his enthusiasm for Christie’s return, highlighting his deep compliance expertise and familiarity with Binance’s operations. “When Steve first joined Binance in 2022, the compliance team underwent fast growth and made tremendous efforts and investments to strengthen and mature its compliance culture and program, which Steve helped lead. Compliance is always evolving and maturing, and he has helped Binance meet new changes and challenges, making compliance a business enabler and driver of sustainable industry growth,” Perlman said.
Binance ended its announcement by reiterating a commitment to “achieving the highest standards of regulatory compliance.”
Do you think this will help Binance in the eyes of regulators? Share your thoughts and opinions about this subject in the comments section below.
Former Terraform Labs Financial Officer Has Been Extradited to South Korea — Montenegro Police
Montenegro recently extradited the former Terraform Labs financial officer Han Chang-joon to South Korea where he faces fraud-related charges. According to the Montenegro police, the decision to extradite Han was made by the country’s Justice Ministry.
Han Faces Criminal Charges in South Korea
Han Chang-joon, the former financial officer of Terraform Labs, has been extradited to South Korea, the Montenegro police have said. The extradition comes almost a year after he and Terraform Labs co-founder Do Kwon were arrested while attempting to flee the country.
According to the police, the decision to transfer Han into South Korean custody was made by the Montenegro Justice Ministry. As previously reported by Bitcoin.com News, Han and Do Kwon were arrested after authorities found them in possession of counterfeit identity documents.
They were subsequently sentenced to four months in jail for the offence. Do Kwon later appealed the verdict, but a superior court reportedly rejected his appeal in November 2023.
Explaining the government’s decision to extradite the financial officer, the Montenegro police said:
Han [was extradited to allow South Korean authorities to initiate] criminal proceedings for several criminal offences related to fraud in financial investment services, investments and the capital market, which is punishable by life imprisonment in South Korea.
However, concerning the extradition of Do Kwon, who is wanted by both South Korean and U.S. authorities, the Terraform Labs co-founder’s lawyer said they were waiting for the court to make a ruling on another appeal.
What are your thoughts on this story? Let us know what you think in the comments section below.
We Neither Bank Justin Sun nor Finance Hamas — Circle Chief Strategy Officer
USDC stablecoin issuer Circle neither “finances Hamas” nor does it bank Tron blockchain founder Justin Sun, the fintech firm’s chief strategy officer has asserted. Although Circle had past business dealings with Sun, this ended in February 2023 when it terminated his accounts and those of affiliated companies.
Circle Subject to ‘Multiple Regulatory Regimes’
Circle, the issuer of the USDC stablecoin, has rejected allegations that it finances Hamas directly or indirectly, nor does it bank Tron blockchain founder Justin Sun. In a fiery open letter, Circle’s Chief Strategy Officer (CSO) Dante Disparte said his organization is “subject to multiple regulatory regimes” and the applicable anti-money laundering and terror funding laws.
In his formal letter addressed to U.S Senators Sherrod Brown and Elizabeth Warren, Disparte suggested that Circle felt obligated to respond to a Nov. 9 letter sent to the two politicians by the Campaign for Accountability. The letter reportedly detailed Circle’s close ties with Sun and Tron’s alleged financing of Hamas, Hezbollah, and the Palestinian Islamic Jihad.
In his pushback against Campaign for Accountability’s “false claims,” the Circle CSO referenced his organization’s long history in combating illicit finance activities as well as its partnership with law enforcement agencies. Disparte also addressed claims that the USDC stablecoin was among million in digital currencies that had been marked for seizure by Israeli law enforcement.
“Most importantly, public blockchain ledgers show that of the million in digital assets wallets identified by the Israeli government, only 0 was transferred in USDC among those wallets, and none of that was acquired from Circle,” Disparte said.
Regarding Circle’s relationship with Justin Sun, the CSO acknowledged that Circle had past dealings but suggested that this was above board because the U.S. government “has not specifically designated Sun or his entities as Specially Designated Nationals.” However, Disparte said Circle stopped dealing with Sun sometime in February 2023 when it terminated his accounts.
Disparte ends the letter by reiterating that his organization is willing to collaborate with the two Senators on ways to strengthen regulation in the digital assets space.
What are your thoughts on this story? Let us know what you think in the comments section below.
Binance Compliance Officer Under Scrutiny For FTX, Gemini, And Sex Trafficker Associations
In a recent investigative report by the media outlet Unlimited Hangout, serious allegations were made against Noah Perlman, the chief compliance officer of Binance.
The report highlights Perlman’s alleged ties to the collapse of FTX, the troubled Gemini exchange owned by the Winklevoss twins, and even convicted and deceased sex trafficker Jeffrey Epstein.
If the allegations made by the media outlet prove true, and Perlman is investigated by US authorities, Binance could find itself embroiled in another executive scandal following the departure of former CEO Changpeng Zhao (CZ).
Associations With Epstein And Alleged Fraud
Unlimited Hangout alleges that Perlman’s father, Itzhak Perlman, a renowned violinist, had flown on multiple occasions on a plane owned by Jeffrey Epstein. Itzhak Perlman also reportedly accompanied Epstein to Michigan’s Interlochen Center for the Arts, where Epstein later built a lodge for him, which was later described as a “lair to target girls.”
While Noah Perlman served as a federal prosecutor for the Department of Justice’s Special Coordinator for Crimes against Children, these family connections to Epstein raise questions about his associations.
After leaving the Department of Justice, Perlman joined Gemini, the cryptocurrency exchange owned by the Winklevoss Twins, as the chief compliance officer. Although Perlman had left Gemini months before the New York Attorney General filed a lawsuit against the exchange, he had been allegedly “heavily involved” in Gemini’s Earn program, which became the focus of the alleged .1 billion fraud.
As reported by NewsBTC, the lawsuit alleges that certain individuals knew that the program’s partner, Genesis, was financially unstable and withdrew their funds before its collapse.
Per the report, Perlman held the position of chief operating officer at the time, raising suspicions about his role in the alleged misconduct.
Troubled Bank’s Links To Binance Officer And FTX
Perlman’s involvement with Farmington State Bank, later renamed Moonstone, adds another layer of complexity to the alleged wrongdoing cited by Unlimited Hangout.
According to the report, in 2019, Perlman was listed as a director of FBH Corp., the entity that took over the rural bank. Moonstone Bank later garnered attention when Alameda Research, linked to FTX, acquired an .5 million stake.
Sam Bankman-Fried, the former chief of FTX, also reportedly invested million in the bank. However, Moonstone Bank faced regulatory challenges, with the Federal Reserve initiating an enforcement action against it shortly before the Bank of Eastern Oregon acquired its deposits and assets.
Overall, Perlman is at the center of serious allegations concerning his alleged connections with Jeffrey Epstein, the failed Earn program at Gemini, and Moonstone Bank.
However, it is important to note that these allegations have not been substantiated by any investigations or official connections made by US authorities or other global agencies.
The claims and allegations put forth by media news outlets require further response from Binance’s executives and investigation by relevant authorities.
There has been no official statement from Perlman regarding these allegations. It remains to be seen how the exchange and Perlman himself will address these claims and provide clarity on the matter.
Featured image from Shutterstock, chart from TradingView.com
Client Demand and ‘Negative Events’ Pushing Tradfi Institutions Towards Crypto — Bitrue Chief Strategy Officer
Growing client demand for cryptocurrencies and the belief that they represent a new asset class help to explain traditional financial institutions’ newfound interest in digital assets, the chief strategy officer at Bitrue has said. The collapse of FTX and Terra Luna in 2022 and the resulting bear market may have helped to remove barriers to entry. The entrance and presence of “tradfi” (traditional finance) institutions in the crypto market will also likely lead to the “establishment of industry standards,” according to the executive.
Removal of Cost to Entry
After spending years attacking and maligning digital assets, an increasing number of traditional finance (tradfi) institutions are seeking exposure to crypto assets, Robert Quartly-Janeiro, the chief strategy officer (CSO) at crypto exchange Bitrue, has asserted. He said client demand for cryptocurrencies as well as the growing belief that these represent a new asset class are some of the reasons why tradfi institutions have seemingly had this change of heart.
Quartly-Janeiro, who has served as a visiting fellow at The London School of Economics, also told Bitcoin.com News that the changed circumstances which followed the collapse of FTX could be another key influencing factor.
“The negative events that occurred during that time [between 2021 and 2023] — such as FTX, Luna, and others — and the subsequent bear market removed some of the barriers regarding the cost of entry and acquisition. This created an opportunity for these institutions to enter the market, leveraging their brand equity and financial capabilities,” Quartly-Janeiro explained.
Risks and Benefits
While the prospect of traditional financial institutions entering the crypto market is sometimes a contentious topic, the Bitrue CSO said he can see both benefits and risks. Some of the benefits include increased trade volume, expanded consumer choice, and enhanced professionalism. The entrance and presence of tradfi institutions in the crypto market will also likely lead to the “establishment of industry standards.”
However, when it comes to the risks, Quartly-Janeiro suggested that different players in the crypto market may have different views on this. For instance, some crypto entities may see the increased competition from well-capitalized legacy financial institutions as a threat to their business models. Still, some see the “risk of spillovers in areas like stablecoins that are linked to real-world assets and currencies.”
For traditional financial institutions seeking to enter the crypto market, Quartly-Janeiro suggested joint ventures or outright acquisition of existing crypto entities. This, he said, may be a better alternative to building everything from scratch. As for decentralized finance (defi) projects that are eager to partner with tradfi, the Bitrue CSO said gaining deep knowledge of both the defi and traditional financial worlds could prove to be useful.
What are your thoughts on this story? Let us know what you think in the comments section below.
SEC Charges Former US Correctional Officer With Fraudulent Crypto Token Sale
The U.S. Securities and Exchange Commission said on Aug. 23 that it had charged a former New Jersey correctional officer “with fraudulently raising funds through the unregistered offering of the blazar token.” The Commission said the correctional officer’s scam was primarily targeted at law enforcement agents and first responders.
Replacing the State Pension System With Blazar Token
The U.S. Securities and Exchange Commission (SEC) announced on Aug. 23 that it has charged John DeSalvo, a former New Jersey correctional officer, “with fraudulently raising funds through the unregistered offering of the blazar token.” The SEC alleged that by selling the now-defunct token, DeSalvo was able to raise 0,000 from approximately 220 investors.
As explained in a statement released by the SEC, the former correctional officer primarily targeted law enforcement agents and first responders. In addition to falsely claiming that the token was registered with the SEC, DeSalvo told investors that the blazar coin “would replace existing state pension systems.” To further entice his victims, DeSalvo is said to have promised guaranteed high returns to investors who agreed to buy the token via an “automatic” deduction from their salary.
However, instead of using the capital raised to prop up the project, the former correctional officer allegedly misappropriated the funds. He also transferred some of the funds to crypto wallets that he controlled.
Criminals Duping Victims With Scams ‘in Shiny Wrappers’
Commenting on the Commission’s decision to charge the former correctional officer, Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, decried how DeSalvo used his past status as a government employee to dupe investors.
“What’s particularly offensive about this case is that DeSalvo used his status as a former corrections officer to gain the trust of fellow law enforcement personnel, a number of whom invested their savings with him. I am proud that the SEC is able to deliver some measure of justice to those brave first responders who DeSalvo victimized by holding him accountable for his appalling conduct,” Grewal said.
David Hirsch, another member of the SEC’s Division of Enforcement, said the former correctional officer’s fraudulent activities showed that investors are still vulnerable to scams especially when they appear “in shiny new wrappers.”
Meanwhile, in addition to fleecing investors with the blazar token, DeSalvo is also accused of misappropriating ,000 out of the ,000 that he raised from participants of another investment venture. The remaining ,000 was lost in speculative investments, the SEC said.
What are your thoughts on this story? Let us know what you think in the comments section below.
Betrayal In Blue: Former NJ Officer Charged With Crypto Fraud
In a major development, the US Securities and Exchange Commission (SEC) has charged former New Jersey State Correctional Police Officer, John A. DeSalvo, for allegedly orchestrating a fraudulent crypto fraud scheme that specifically targeted law enforcement personnel.
DeSalvo stands accused of raising funds through the unregistered offering of the Blazar Token, a crypto asset he created, which eventually collapsed in May 2022.
The SEC’s complaint further alleges misappropriation of investor funds, including diverting substantial amounts to his crypto asset wallets and using them for personal expenses, such as a bathroom renovation.
Crypto Scam Targeting Cops?
According to the SEC, DeSalvo managed to raise a minimum of 0,000 from around 220 investors between the launch of the Blazar Token in November 2021 and its subsequent collapse.
The complaint reveals that DeSalvo made “false claims” to investors, stating that the Blazar Token was registered with the SEC and that it would replace existing state pension systems. He further “deceived” investors by falsely assuring them that automatic payroll deductions would facilitate their investment and guarantee extraordinary returns.
Ultimately, DeSalvo allegedly misused and misappropriated the funds entrusted to him. Notably, the SEC’s complaint highlights DeSalvo’s deliberate targeting of fellow law enforcement and first responders in his fraudulent schemes.
In addition to the Blazar Token scheme, the SEC’s complaint also exposes an earlier fraud initiated by DeSalvo. Beginning in late January 2021, he allegedly solicited investors, primarily through social media, for an investment venture that involved trading stocks, options, and crypto asset securities.
Within weeks of raising ,000 from 17 investors, DeSalvo reportedly lost a significant portion of the funds through speculative investments and misappropriated the rest. He proceeded to inform investors that poor market conditions led to the complete devaluation of the securities.
SEC Accuses Former Officer Of Exploiting Trust
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, condemned DeSalvo’s actions, stating:
We allege that DeSalvo orchestrated several fraudulent investment schemes that targeted law enforcement personnel and promised astronomical returns, including one involving a crypto asset security that would somehow replace traditional state pension systems. Rather than producing any returns or revolutionary technology, he instead misappropriated and misused investor money.
Grewal further emphasized the breach of trust perpetrated by DeSalvo, who “exploited” his former position as a corrections officer to gain the confidence of fellow law enforcement professionals, many of whom invested their “hard-earned” savings with him.
The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges DeSalvo with violating antifraud and offering registration provisions of the securities laws. The SEC seeks injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and imposition of civil penalties.
Simultaneously, the U.S. Attorney’s Office for the District of New Jersey has announced criminal charges against DeSalvo, further underscoring the severity of the allegations and the commitment to holding him accountable for his actions.
At the time of writing, Bitcoin (BTC) maintains its upward trajectory in price, currently trading at ,700, reflecting a notable increase of over 3% within the past 24 hours.
Featured image from iStock, chart from TradingView.com
Ripple’s Chief Legal Officer Breaks Down Ruling in SEC Lawsuit — Says ‘As a Matter of Law, XRP Is Not a Security’
Ripple Labs’ chief legal officer has broken down Thursday’s ruling on the U.S. Securities and Exchange Commission (SEC) v. Ripple case. Emphasizing that the landmark ruling is “a huge win” for the crypto firm, he stressed that “as a matter of law – XRP is not a security.” In addition, he noted that crypto sales on exchanges are also not securities.
Ripple Lawyer on SEC v Ripple Case Ruling
Ripple Labs’ chief legal officer, Stuart Alderoty, explained the ruling in the U.S. Securities and Exchange Commission (SEC) v. Ripple case in a series of tweets on Thursday. The lawyer wrote:
A huge win today — as a matter of law — XRP is not a security. Also a matter of law — sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions — to developers, to charities, to employees are not securities.
“The only thing the court found constitutes an investment contract is past direct XRP sales to institutional clients. There will be further court proceedings only on these institutional sales per the court’s order,” Alderoty added. The Ripple chief legal officer stressed:
The judge’s decision affirms so much of what this industry is fighting for, and shows that the SEC does not have unbounded jurisdiction over crypto … Maybe we can now start a rational conversation about crypto regulation in this country.
In a statement to Fox Business regarding the ruling, the SEC wrote: “We are pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances. The court agreed with the SEC that the Howey test governs the securities analysis of crypto transactions and rejected Ripple’s made-up test as to what constitutes an investment contract, instead emphasizing that Howey and subsequent cases have held that a variety of tangible and intangible assets can serve as the subject of an investment contract. Further, the court rejected Ripple’s fair notice argument, noting that the Howey test is clear and that claiming ignorance is not a defense to violating the securities laws. We’ll continue to review the decision.”
Many people slammed the statement by the SEC regarding the ruling. Paradigm’s chief legal officer, Katie Biber, tweeted: “SEC statement on Ripple has vibes of young campaign hack spinning on bad facts, vs powerful government agency expected to tell the truth. Do better.”
Alderoty concurred with Biber, tweeting in response: “Could not agree more with Katie Biber. Pathetic ‘statement’ coming from the SEC today. Take the loss. You earned it.”
Congressman Tom Emmer (R-MN), who has been a vocal advocate for clear crypto regulations, tweeted Thursday following the ruling:
The Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of. Now, let’s make it law.
What do you think about the explanation by Ripple’s chief legal officer, Stuart Alderoty, regarding the court ruling on the SEC v. Ripple lawsuit? Let us know in the comments section below.