Jim Rickards, an economist and author of the best-selling book ‘Currency Wars,’ has issued an alert about the possible collapse of the global clearance system. In a recent interview, Rickards noted that Euroclear, a settlement service, holds 0 billion in Russian assets. He further explained that Euroclear could face lawsuits if Western countries seize these […]
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Western Banks Face Major Asset Seizure in Russia Amid Gazprom Subsidiary Dispute
In a significant move against western banks, a St Petersburg court has seized over 3 million of assets from Unicredit, Deutsche Bank, and Commerzbank, following a dispute with a subsidiary of Gazprom. This seizure, one of the largest since Moscow’s invasion of Ukraine, includes 4 million of Unicredit’s assets, equivalent to about 4.5% of its […]
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Indian National Pleads Guilty in Case Involving ‘Largest Single Cryptocurrency and Cash Seizure in DEA History’
An Indian national has pleaded guilty in a case involving “the largest single cryptocurrency and cash seizure” in the U.S. Drug Enforcement Administration (DEA) history. The defendant “is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world,” the U.S. Department of Justice (DOJ) described.
This Case Involves Largest Single Cryptocurrency and Cash Seizure in DEA History, Says DOJ
The U.S. Department of Justice (DOJ) announced Friday that a 40-year-old Indian national, Banmeet Singh, has pleaded guilty to “running a dark web narcotics conspiracy.” Specifically, he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. The announcement details:
According to the DEA, this case involves the largest single cryptocurrency and cash seizure in DEA history; the defendant has forfeited cryptocurrency accounts that ultimately became worth 0 million.
According to court documents, Singh created vendor marketing sites on dark web marketplaces to sell controlled substances. Customers paid with cryptocurrency, and Singh personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services.
The DOJ explained that from at least mid-2012 through July 2017, Singh controlled at least eight distribution cells in various U.S. states. “Individuals in those distribution cells received drug shipments from overseas and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland and the U.S. Virgin Islands,” the Justice Department noted.
Singh was arrested in London in April 2019 and the government secured his extradition to the U.S. last year. DEA Special Agent in Charge Orville O. Greene commented:
Banmeet Singh is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world.
What do you think about this case? Let us know in the comments section below.
Balaji Srinivasan Equates Bitcoin ETF Move to Reversal of FDR’s Historic Gold Seizure
The sanctioning of U.S. spot bitcoin exchange-traded funds (ETFs) heralds a transformative shift from a century-long dominance of centralized monetary systems to the emerging realm of decentralized finance, as opined by Balaji Srinivasan, a distinguished figure in technology and the crypto industry. Srinivasan equates this shift to a reversal of the historical Executive Order 6102, which confiscated gold from U.S. citizens. He views the emergence of crypto assets like bitcoin as a pivotal moment, transferring power from central bodies back to individuals.
Srinivasan Believes Bitcoin ETF Approval Reflects Major Financial Paradigm Shift
In 1935, under President Franklin D. Roosevelt, the U.S. government orchestrated a substantial gold confiscation, reinforcing state-centric financial control. In a recent X post, Srinivasan points out this incident as a landmark in the chronicle of centralized financial dominion. He observes that the endorsement of the spot bitcoin ETF is a radical divergence from this age-old centralized fiscal regime, paving the way for decentralized digital currencies.
Srinivasan states:
Since FDR’s seizure of gold, our lives have revolved around the centralized state rather than the decentralized market. The state has had control for so long we’ve forgotten what freedom is like. But now gold is slipping out of their hands, and back into yours. And history is running in reverse.
Srinivasan also emphasizes the role of technological advancements in this shift. Unlike the previous century where technologies like mass media favored centralization, today’s innovations — personal computers, end-to-end encryption, mobile technology, and notably cryptocurrencies — champion decentralization. This technological transformation plays a crucial role in redistributing financial authority from central institutions to individual entities and decentralized systems.
“Thus, top talent isn’t being pulled into a government Brain Trust,” Srinivasan asserts. “It’s being brain drained *out* of the U.S. establishment. And as a consequence, the epic legal battles are, on balance, going our way.”
Srinivasan reflects on the legal conflicts and the changing dynamics within institutions, pointing to a steady move toward decentralization. The ratification of the spot bitcoin ETF, decided by a narrow 3-2 vote, exemplifies this evolution. It represents a legal recognition of the escalating impact and legitimacy of decentralized finance, signifying a significant shift in the institutional viewpoint towards cryptocurrencies.
At the heart of Srinivasan’s argument is the notion of liberty. He contends that Bitcoin and similar technologies symbolize more than mere financial instruments; they are part of a larger crusade for global freedom. The apprehension of traditional establishments, he notes, stems not just from the challenge of regulating a novel monetary system, but from the fear of losing grip over a worldwide framework that is increasingly eluding their regulatory purview.
What do you think about Srinivasan’s point of view? Share your thoughts and opinions about this subject in the comments section below.
DOJ Eyes Seizure of Ex-FTX Chief’s Two Luxury Jets in Ongoing Criminal Probe
In the ongoing criminal case against Sam Bankman-Fried, federal prosecutors have unveiled a forfeiture bill, indicating the Department of Justice’s (DOJ) intent to commandeer two luxury jets belonging to the ex-FTX chief. Specifically, the DOJ has its sights set on a Bombardier Global 5000 BD-700-1A11 and an Embraer Legacy 135BJ.
Prosecutors Set Sights on Seizing Bankman-Fried’s Luxury Aircraft
On the evening of October 4, the DOJ detailed its plans to seize these high-end aircraft from Bankman-Fried, co-founder and former CEO of FTX. The court order highlighted that these jets are implicated in multiple charges, specifically counts 1-4 and 7, of the federal indictment.
In addition to the Bombardier and Embraer jets, the DOJ is also keen on acquiring their associated maintenance and engine logs. This development comes on the heels of earlier reports, post-FTX’s downfall, which suggested that Bankman-Fried’s personal aircraft had made multiple trips between the Bahamas and Argentina.
Contradicting these claims, Bankman-Fried had asserted he never left the Bahamas. Adding another layer to the narrative, there were whispers that FTX’s private jets were repurposed to ferry Amazon packages to top-tier FTX personnel, given Amazon’s refusal to deliver to the Bahamas. In a related twist, Ryan Salame, FTX’s former co-CEO, reportedly had to part with his private jet as a bargaining chip in his plea negotiations.
What do you think about Sam Bankman-Fried losing his jets to forfeiture? Share your thoughts and opinions about this subject in the comments section below.
Latam Insights: Bitcoin Farm Found at Venezuelan Jail, Bill Protecting Crypto From Seizure Advances in Brazil
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: a Bitcoin mining farm is discovered during a raid on a Venezuelan jail, a bill that protects crypto from seizure advances in Brazil, and the Chilean police find a Bitcoin farm during a drug raid.
Bitcoin Farm Found in Venezuelan Jail
A Bitcoin mining farm was dismantled during a mega raid on the Venezuelan penitentiary center of Tocoron, located in the Aragua state. The raid, which involved the participation of more than 11,000 officers, found an undisclosed number of Bitcoin miners inside a makeshift mining farm, which was allegedly operated by the gang that held control of the national jail, called “Aragua’s Train.”
During the raid, the police also found drugs, rifles and ammo, C4 explosives, and more eccentric elements, like a disco where events were held, a swimming pool, a baseball stadium, and even a zoo.
Authorities have not issued statements on how long the mining farm operated inside the jail or if they had seized the funds that were obtained by the operation of this farm. Nonetheless, after the raid, the Tocoron Penitentiary will be closed, with more than 1,600 inmates being transferred to other jails in Venezuela.
Bill Protecting Crypto From Seizure Advances in Brazil
A bill that protects digital assets from creditor seizures is advancing in the deputy chamber of the Brazilian Congress. The bill, which also forbids the confiscation of salaries, pensions, and money in savings accounts in amounts of up to 40 minimum wages, was modified by Deputy Fernando Marangoni, who called to include cryptocurrency as part of its scope.
However, the final modification included the term “digital assets” instead of “cryptocurrency,” and will have to be reviewed by the Constitution, Justice, and Citizenship Commission of the Deputy Chamber.
Chilean Police Find Bitcoin Farm During Drug Operation
The Chilean Intelligence Police found a Bitcoin mining operation during a drug raid in southern Santiago. During Operation “Lucerna,” the police found 36 kilograms of cannabis, ecstasy, and ketamine pills. But they also stumbled upon a room with 19 Bitcoin miners, of which only 10 were active.
Eduardo Gatica, head of the Anti-Narcotics Brigade, stated this operation was directed to terminate a series of violent crimes linked to a drug trafficking ring. He stated:
It is the first time that drug trafficking has been so directly linked to cryptocurrency virtual data mining. It had not happened before in the country.
Gatica stated that cryptocurrency mining allowed these groups to launder assets, turning dirty money into clean money ready to be introduced in the market.
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What do you think about this week’s Latam Insights report? Tell us in the comment section below.
Lawyer Seeks Reopening of Onecoin Case in Bulgaria, Seizure of Assets
A lawyer representing Onecoin victims has urged Bulgarian authorities to reopen an investigation into the crypto pyramid scheme and seize assets to compensate his clients. The attorney is asking officials in Sofia to take into account developments he considers related to the case, including the recent murder of a Bulgarian crime figure in South Africa.
Attorney Hopes New Bulgarian Chief Prosecutor Takes on Onecoin Investigation
Dr. Jonathan Levy, a legal representative for people affected by Onecoin from several countries, has filed a new request that Bulgaria’s acting top prosecutor reopens an investigation into the multi-billion dollar crypto Ponzi scheme and seize associated assets for restitution of the victims.
In a letter to the Bulgarian Ministry of Justice, Levy is turning attention to recent events that he believes are connected to the case. These include the murder of Bulgarian organized crime figure Krasimir Kamenov in South Africa, linked to the recently fired chief public prosecutor of Bulgaria, Ivan Geshev, and the fugitive founder of Onecoin, Ruja Ignatova.
Geshev was removed from office by Bulgaria’s Supreme Judicial Council earlier in June and replaced by Borislav Sarafov as Acting Prosecutor General. In December 2021, Levy filed a petition with the Bulgarian Constitutional Ombudsman, accusing Geshev of protecting Onecoin which allegedly continued to operate through affiliated entities in Bulgaria.
The U.K. lawyer now insists that Onecoin must be shut down, the responsible persons arrested and their assets seized. In support of his latest request, Levy presents a sworn declaration by Onecoin’s former Compliance Officer Duncan Arthur, a citizen of the Republic of Ireland and the Republic of South Africa, which details the scam’s contacts in Africa.
Kamenov, who was assassinated in Cape Town in late May, along with his wife and two other victims, has been accused of involvement in the murder of a top police official in Sofia and connected to the disappearance of Ruja Ignatova and a reported 230,000 BTC in her possession.
Cryptoqueen’s Whereabouts and Fate Still Unknown
According to an article published in February by the Bulgarian website Bureau for Investigative Reporting and Data (Bird.bg), the “missing Cryptoqueen” was killed in Greece, in November 2018, a year after she boarded a plane bound for Athens. The report claims the conclusion is based on evidence obtained during the investigation into last year’s murder of the ex-head of a criminal police department in the Bulgarian capital.
Both may have been murdered by a crime group associated with Kamenov, according to the information. However, Jonathan Levy requested an investigation suggesting Ignatova’s death may have been faked by the criminal organization. “Geshev then belatedly sought Kamenov’s arrest but not before Geshev claimed he had narrowly escaped a bomb plot,” the attorney noted.
“I am requesting the Acting Chief Prosecutor review this new material and our previous requests and take action now against the Onecoin organized crime gang in Bulgaria and the former Chief Prosecutor Geshev who we accuse of deliberate nonfeasance. And in particular seize the assets of the OneCoin gang for the benefit and restitution of victims,” Levy wrote to the Bulgarian Justice Ministry.
Launched in 2014 as a multi-level marketing (MLM) network based on a non-existent cryptocurrency, Onecoin is believed to have defrauded more than 3 million investors globally of over billion. Its mastermind, Bulgarian-born German national Ruja Ignatova, was last seen on Oct. 25, 2017, at the airport in Athens, and is still wanted by Interpol, Europol, and the U.S. Federal Bureau of Investigation (FBI).
According to South Africa’s Daily Maverick newspaper, Kamenov may have had information about her. The publication also revealed that around 2018, Ignatova’s brother and Onecoin co-founder, Konstantin, posted photos on his Instagram showing he had visited Cape Town. He was arrested in Los Angeles the following year and pleaded guilty to Onecoin-related charges while seeking witness protection in the United States. Ruja’s business partner, U.K. and Swedish national Sebastian Greenwood, also pleaded guilty in December 2022.
Do you think investigators will get to the bottom of the Onecoin case? Share your thoughts on the subject in the comments section below.
Seoul Court Greenlights Seizure of Do Kwon’s Assets Worth $176 Million
According to a local report, South Korean prosecutors have been given the green light by the Criminal Division of the Seoul Southern District Court to seize assets owned by Do Kwon, the co-founder and former CEO of Terraform Labs. The report discloses that a total of 233.3 billion won (6 million) worth of assets have been frozen, which includes imported vehicles, bank deposits, and cryptocurrency accounts held at a digital currency exchange.
Seoul Court Gives Nod to Seize 6 Million in Assets Owned by Do Kwon
After reports surfaced claiming that Do Kwon, the co-founder and former CEO of Terraform Labs, had 0 million stashed away in a Swiss bank account, a new report by regional news outlet Hankyung reveals that South Korean prosecutors have taken action by freezing Kwon’s assets. The report states that Kwon’s assets are valued at approximately 233.3 billion won (6 million). The 12th Criminal Division of the Seoul Southern District Court has given the green light for the asset forfeiture to proceed.
Among the mentioned possessions are bank accounts, cryptocurrencies kept on an exchange, and imported automobiles. Kwon additionally possesses a mixed residential and commercial apartment known as the “Galleria Foret,” as well as an officetel in Nonhyeon-dong. As per the court directive, the aforementioned items, along with the shares held with Mirae Asset Securities, won stored in Woori Bank, and unnamed exchange-held cryptocurrencies, are prohibited from being sold.
In the report, it is highlighted that Shin Hyun-Seong, also known as Daniel Shin, along with a handful of Terraform Labs employees, has been indicted on charges of fraud and violations of the Capital Markets Act. Coinciding with the seizure of Kwon’s assets on May 9, 2023, an ethereum (ETH) account affiliated with Terraform Labs transferred CVX tokens worth .7 million to an undisclosed destination. Notably, this movement of 1.8 million CVX occurred after a span of 277 days, precisely on the one-year anniversary of the Terra ecosystem’s collapse.
Kwon and his accomplice Han Chang-Joon were apprehended by Montenegro law enforcement officials as they were about to board a private jet headed for Dubai. Kwon is currently facing extradition requests from both South Korean and U.S. authorities.
Considering the substantial value of frozen assets and the legal actions against Do Kwon, what are your thoughts on the potential consequences for the former Terraform Labs CEO? Share your thoughts and opinions in the comments section below.
JPMorgan Chase Assumes Control of First Republic Bank Following Seizure by California Regulators
On May 1, 2023, the California Department of Financial Protection and Innovation (DFPI) seized First Republic Bank, placing it into Federal Deposit Insurance Corporation (FDIC) receivership. According to reports, this move came after the bank’s financial troubles made it insolvent and unable to meet its obligations. Following the seizure, JPMorgan Chase submitted the winning bid to assume control of First Republic Bank’s deposits, including uninsured deposits.
California Regulator Seizes First Republic, JPMorgan Takes Over Bank’s Assets
From the first week of March, four major banks — Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank — have failed. The failures of the latter three banks are said to be the largest in American history, since the collapse of Washington Mutual (Wamu) in 2008.
Last week, all eyes were on First Republic Bank as it made a last-ditch effort to receive assistance from the private sector. This came after customers withdrew 0 billion from the bank last month, which led to concerns over the bank’s solvency. On Monday, May 1, the California Department of Financial Protection and Innovation (DFPI) announced that it had seized First Republic Bank and placed it under the control of the Federal Deposit Insurance Corporation (FDIC).
“The DFPI took action pursuant to California Financial Code section 592, subdivisions (b) and (c), specifically ‘conducting its business in an unsafe or unsound manner’ and being in a ‘condition that … is unsafe or unsound’ to transact banking business,” the California regulator detailed. In addition, the financial regulator announced that JPMorgan Chase, a banking giant, has been awarded the bid for First Republic Bank following its placement into receivership under the Federal Deposit Insurance Corporation (FDIC).
On Monday, JPMorgan Chase announced in a press release that it had taken over First Republic Bank. The bank highlighted its “significant strength and execution capabilities” and stated that it was committed to supporting the U.S. financial system. As part of the purchase, JPMorgan Chase has assumed responsibility for all deposits, including those that were uninsured. The move is expected to bring stability and assurance to customers who had deposits with First Republic Bank. JPMorgan Chase has also revealed that the bank will be operated by Marianne Lake and Jennifer Piepszak, two of its community banking executives.
Since the fall of Wamu, the collapse of First Republic Bank is now the second-largest bank failure in the United States. In terms of the size of insolvency, it is followed by the collapses of Silicon Valley Bank and Signature Bank. On Monday, JPMorgan Chase announced that it would be hosting a conference to discuss the transaction at 8:30 a.m. Eastern Time. The takeover by JPMorgan Chase is expected to bring about changes in the banking landscape, given that it is the largest bank in the United States.
What do you think the collapse of several major banks, including First Republic Bank, means for the future of the U.S. financial system? Share your thoughts in the comments section below.
LEO Token Pumps Post Bitfinex Bitcoin Seizure, But Why?
Bitfinex LEO Token has been rallying in the past week, as U.S. authorities allegedly captured the bad actors that took over 100,000 BTC from the platform back in 2016. LEO was created as a utility token as part of a mechanism to compensate the victims of the attack and repaid them for their losses.
Related Reading | Meet The Two Alleged Bitfinex Hackers: Ilya Lichtenstein and Heather Morgan
As of press time, the LEO Token trades at with a 2.4% profit in the last day. On a 30-day basis, the token rallied from a low at .50 and reached a high of almost as the news about the capture of Ilya Lichtenstein and Heather Morgan, the alleged hackers, became known.
LEO with significant gains on the 4-hour chart. Source: LEOUSDT Tradingview
There has been a lot of speculation around whether U.S. authorities will return the stolen funds to Bitfinex. The funds are current value at over billion and could fuel LEO’s burning mechanism, according to a recent report from Arcane Research.
As explained on the LEO Token Whitepaper, iFinex, the parent company behind the crypto exchange, buys back the token on a monthly basis and proceeds to “burn them” by removing them from the market. The company acquires a portion of the token equal to a minimum of 27% of the consolidated gross revenues of iFinex, the document claims.
In addition, the LEO Token can be burned if the funds seized in 2015 to their partner Crypto Capital, a payment processor, are returned. These were subject to a “partial government seizure” and Bitfinex has been working to release them since 2018.
The other scenario to fuel an LEO Token burn is the crypto exchange recovers the Bitcoin stolen from them in the 2016 hack. At least 80% of the recovered funds will be used to repurchase and burn LEO within the subsequent 18 months from the date of the recovery, as the Whitepaper claims.
Will LEO Token Continue To Record Profits?
The market seems to be pricing-in this scenario and expecting more appreciation as a massive LEO Token burn could lead to a supply shock. However, traders must consider that iFinex and Bitfinex will attempt to prevent any sudden spike in the price of LEO.
This period offers protection from sudden market spikes and will result in a VWAP. For example, a partial recovery of 60,000 BTC at the current market price (1 BTC = approximately ,000), would bring in 0m. After deducting m (for the current outstanding RRTs), 0m would remain. Assuming that 0m was recovered net funds, iFinex would use at least 80% (i.e., at least 6m) to burn LEO tokens.
Related Reading | Bitcoin Stolen From Bitfinex Hack Moved For The First Time In Five Years
As Arcane Research noted, this buyback scenario was highly unexpected by market participants. As seen in the chart below, the LEO token saw a 57% discount to the BTC stolen funds back in October 2021, but now premiums have returned noting the sentiment shift amongst traders.
Source: Arcane Research
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