Ukrainian authorities have dismantled a criminal ring defrauding citizens across Ukraine, Moldova, Kazakhstan, and the European Union through deceptive call centers promising lucrative cryptocurrency investments. The National Police of Ukraine detained 14 suspects, including the alleged organizers, and seized 12 luxury cars, 136 units of computer equipment, 951 SIM cards, 455 starter packs, and significant […]
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Ukrainian Police Collaborate With Europol to Apprehend Alleged Cryptojacking Mastermind
The Ukrainian police, in collaboration with Europol, recently apprehended the alleged mastermind behind a cryptojacking scheme. According to a statement released by Europol, the arrest underscores why the private sector should collaborate with law enforcement.
Law Enforcement and Private Sector Collaboration
The Ukrainian police recently arrested a 29-year-old man accused of masterminding a complex cryptojacking scheme. The unnamed man, who was apprehended in Mykolaiv, is believed to have mined cryptocurrencies worth over million using illegally accessed cloud resources.
According to a statement released via European Police (Europol), the alleged cryptojacker’s arrest followed months of collaboration between Ukrainian law enforcement, Europol and an unidentified cloud services provider. The statement said the arrest underscores why the private sector should collaborate with law enforcement.
Explaining how the probe, which saw law enforcement agents comb three properties associated with the cryptojacker, unfolded, Europol said:
“A cloud provider approached Europol back in January 2023 with information regarding compromised cloud user accounts of theirs. Europol shared this information with the Ukrainian authorities, who subsequently opened an investigation.”
On the day of the arrest, the European Cybercrime Centre (EC3) of the law enforcement agency set up a command post to support the National Police of Ukraine.
Meanwhile, in the statement, Europol shared some anti-cryptojacking tips that cloud service providers can use to stop criminals from illegally accessing cloud computing infrastructure. One way cloud providers can do this is by having strong access controls in place.
Cloud service providers can also block cryptojackers by regularly monitoring cloud environments for suspicious activities and keeping cloud resources updated, the statement added.
What are your thoughts on this story? Let us know what you think in the comments section below.
Bankman-Fried’s Legal Team Cries Foul Over Ukrainian Customer Testimony
Attorneys for Sam Bankman-Fried have written a letter to the judge, requesting the court block a government witness, a Ukrainian customer who “lost a substantial portion” of his life savings due to the FTX collapse. Bankman-Fried’s lawyers believe the witness’s testimony about hardships faced due to the Russian invasion of Ukraine would be irrelevant to the charges and highly prejudicial, as it would appeal unfairly to the jury’s sympathies.
Bankman-Fried’s Attorneys Oppose Ukrainian Witness Testimony in FTX Legal Battle
On Oct. 2, 2023, the law firm Cohen & Gresser submitted a letter to the judge presiding over the criminal case against the former FTX boss Sam Bankman-Fried. The government wants to allow a customer witness from Ukraine to testify remotely and detail how he “lost a substantial portion” of his life savings due to FTX’s demise. The lawyers insist allowing the Ukrainian witness to testify remotely would violate Bankman-Fried’s Sixth Amendment right to confront witnesses against him.
The lawyers further added that a customer from a country under a foreign invasion should be excluded. “The proposed testimony that is unique to this witness would apparently reference hardships and individual circumstances created by the Russian invasion of Ukraine,” Bankman-Fried’s lawyer Mark Cohen wrote. The attorney added:
Such testimony would be irrelevant to the charged crimes and would serve only to elicit the jury’s sympathy and outrage.
In another letter, Cohen argues against customer witnesses and investor testimony. The lawyer calls the request premature because the court should not rule on the admissibility of testimony in the abstract without knowing the specific statements at issue. The letter further notes that customer testimony about their subjective understanding of FTX’s custody of assets is irrelevant and investor testimony about materiality is improper.
“The government seemingly wants evidence regarding how customers (and other putative victims) understood the relationship they chose to enter with FTX to be admissible only if offered by the government but excluded if offered by the defense,” Cohen contends. The lawyer’s letter adds:
Having previously argued that it is irrelevant whether customers were ‘negligent, gullible, or insufficiently vigilant,’ the government now insists that testimony that customers’ beliefs and their understanding – whether correct or incorrect – of alleged statements by Mr. Bankman-Fried is ‘directly relevant’ to a critical issue. The Government cannot have it both ways.
The letter urges the denial of the government’s motion as premature and unfounded. It argues the defense should be permitted to cross-examine any witnesses allowed to give these categories of testimony. “At a minimum, if the court permits the government to elicit testimony of customers’ personal understandings and beliefs, the defense must be allowed to probe the nature, basis, and factual accuracy of those views,” Cohen concludes.
What do you think about the letters Sam Bankman-Fried’s lawyers wrote concerning specific witnesses? Share your thoughts and opinions about this subject in the comments section below.
Ukrainian Startup Promin Aerospace to Send Historical NFTs Into Space
Promin Aerospace is a Ukrainian rocketry startup with backing from Google among others. The company is working with the Meta History Museum to launch into space a collection of artworks about the war with Russia in the form of NFTs (non-fungible tokens). The team recently joined the Bitcoin.com News Podcast to talk about the historical initiative, the ground breaking technology behind it and even what would it take to store the entire bitcoin blockchain in space.
Promin Aerospace is the world’s primary developer and manufacturer of advanced autophagic rocket propulsion. They’re bringing an entirely new type of rocket propulsion system to the market that will make it possible to create rockets that are at least 2 times more efficient than the current state-of-the-art. The company has received .5M of pre-orders for future products and services and has a team of 11 continuously working in their R&D facilities in Dnipro, Ukraine to upgrade the core technology.
Misha Rudominski, Co-founder & CEO at Promin Aerospace. Previously he with a team won an all-Canadian team competition by Space & Satellite Professionals International to create a communication system between Mars and Earth.
Lisa Bordun, Head of Legal at Promin. Law geek with specialization in space, MBA with two degrees in law (Ukraine, USA).
The Meta History NFT museum was created to commemorate the history of the current events in Ukraine, preserve the truth, and collect donations for humanitarian aid. Follow the latest developments from the charity NFT platform on Twitter.
The Bitcoin.com News podcast features interviews with the most interesting leaders, founders and investors in the world of Cryptocurrency, Decentralized Finance (DeFi), NFTs and the Metaverse. Follow us on iTunes, Spotify and Google Play.
This is a sponsored podcast. Learn how to reach our audience here. Read disclaimer below.
Binance to Restrict Ukrainian Hryvnia Operations Via 2 Payment Providers
Crypto exchange Binance will stop processing transactions with Ukrainian hryvnia through two payment platforms later in March. The move follows an earlier suspension of deposits and withdrawals using bank cards in the national currency of Ukraine.
Ukrainian Users Lose More Fiat Options to Trade on Cryptocurrency Exchange Binance
The world’s leading digital asset exchange in terms of trading volume, Binance, said on Monday that Ukrainian hryvnia purchases through the digital wallets Settlepay and Advcash will be unavailable, starting from March 21.
“Settlepay withdrawals are currently open and you can withdraw fiat currency to your wallet, the withdrawal fee is 0%,” the platform noted in an announcement to its Ukrainian users published on Telegram and Twitter.
Fiat deposits and withdrawals via bank cards and other payment services have been suspended throughout Ukraine, the exchange reminded. The measures are related to restrictions imposed by the National Bank of Ukraine, its representatives explained earlier in March.
Besides Binance, a leading Ukrainian crypto exchange, Kuna, also acknowledged the interruptions. Its founder Michael Chobanian commented that these could be linked to efforts by the government in Kyiv against money laundering and tax evasion through online gambling sites.
“This decision is related to the fight against the illegal gambling business, and unfortunately, it also affected cryptocurrency exchanges,” Binance confirmed in its latest statement.
The global crypto company also informed Ukrainian traders that they can sell hryvnia in spot pairs or convert it to any asset free of commission. It further suggested that they use its peer-to-peer platform to exchange crypto and fiat money directly with other Binance users.
Cryptocurrencies have provided a lifeline for many Ukrainians and their country amid an ongoing war with Russia. A recent blockchain intelligence report revealed that the invaded nation has raised over 2 million to fund its military and relief efforts through crypto donations which, according to Chobanian, will be affected by the government-imposed Hryvnia restrictions.
Do you think the restrictions on Hryvnia transactions on crypto exchanges will be lifted soon? Tell us in the comments section below.
Crypto Exchanges Binance and Kuna Suspend Card Transactions in Ukrainian Hryvnia
Major cryptocurrency exchanges operating in Ukraine have temporarily suspended operations with hryvnia bank cards. The measure stems from restrictions imposed by the country’s central bank, Binance and Kuna indicated in comments for crypto media.
Ukrainians Unable to Trade Crypto Assets Using Cards in National Currency
The world’s largest crypto exchange, Binance, and a leading Ukrainian exchange, Kuna, have announced temporary suspensions of operations with bank cards in Ukrainian hryvnia. Both trading platforms confirmed about the problems with such transactions.
The limited processing of deposits and withdrawals in the national currency results from restrictions imposed by the National Bank of Ukraine (NBU), representatives of Binance told the crypto news outlet Forklog. The exchange has advised traders to use its peer-to-peer marketplace.
“Currently, fiat channels, namely input and withdrawal through a bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine,” the trading platform stated in a Telegram post on Thursday, quoted by Bits.media.
“Regarding the hryvnia card and input/output to the exchange. Yes, it doesn’t work … In brief, we are looking for ways out of the situation, under the threat of stopping the entire Ukrainian crypto/card UAH market,” Kuna founder Michael Chobanian said in his Telegram channel.
On Friday, Chobanian suggested that the difficulties with non-cash hryvnia transactions are potentially related to efforts undertaken by Ukrainian authorities against money laundering and tax evasion through online gambling sites.
He was referring to a recent statement by a Ukrainian lawmaker who claimed that this kind of turnover amounts to 54 billion hryvnia (almost .5 billion) annually. The deputy, Oleksiy Zhmerenetsky, later confirmed he sees a link between the two.
Hryvnia Restrictions for Exchanges Likely to Affect Crypto Donations for War-Torn Ukraine
The issues with depositing and withdrawing hryvnia on crypto exchanges started in September, last year, and since the end of December the restrictions introduced by the central bank have become tougher, Chobanian explained. He further elaborated:
The NBU banned P2P and A2C transactions for financial companies, and since all crypto exchanges work through them, as a result, everything is gone for them.
Chobanian believes that the restrictions bring reputational damage to Ukraine, a leader in crypto adoption in the region and beyond. He thinks the situation will also affect the activities of small and medium-size companies as well as cryptocurrency donations.
Recent reports by blockchain intelligence firms Elliptic and Chainalysis revealed that, since the start of the Russian invasion in late February, 2022, Ukraine has raised over 2 million in crypto for defense and humanitarian efforts, million of which has been received by government-provided addresses.
At the end of April, the National Bank of Ukraine imposed a monthly limit on transactions for the purchase of cryptocurrencies of 100,000 hryvnia per person (,400 at the time, around ,700 now). The monetary authority is yet to comment on the consequences of its restrictions for the country’s crypto market.
Do you think Ukrainian authorities will lift the restrictions for hryvnia transactions with crypto exchanges in the future? Share your thoughts on the subject in the comments section below.
Stellar (XLM) Poised To Rally? Ukrainian Bank Reveals Successful E-Money Pilot
The Stellar (XLM) price remains in a long-term downtrend. After seeing an all-time high of nearly .81 on May 10, 2021, XLM’s price has fallen massively. Currently, XLM is 90.6% down from its ATH. Since October 2021, Stellar has also been in a descending trend channel.
At press time, XLM was trading at .0822. Thus, the price is showing initial signs of strength and could make a first attempt to break through the upper line of the trend channel at .10. What would probably be needed is a clear move that catapults the XLM price toward the next important resistance level at around .13.
Should this succeed, the XLM bulls could target the next resistance zone around .23.
Bullish News Pushing Stellar Out Of The Bearish Trend?
A potential catalyst for a breakout out of the bearish trend was provided yesterday by the Stellar Foundation. It shared in a tweet that TASCOMBANK, one of Ukraine’s oldest commercial banks, published the results of its e-money pilot project on the Stellar network.
Remarkably, TASCOMBANK is one of the leading Ukrainian commercial banks, which is regarded as a system bank. It operates in many areas of banking, including consumer and corporate lending, factoring, e-commerce, and trade finance.
The report on the project, which was launched in December 2021, informs the National Bank of Ukraine and the Ministry of Digital Transformation about the benefits of issuing e-money on the Stellar blockchain, highlighting the advantages.
Transparency, accountability, and low transaction costs were among the many cited benefits of blockchain in a report by @tascombank.
During their Pilot, one of Ukraine's oldest banks cited the future of e-currency on Stellar as "promising"https://t.co/SSGkUdONNi
— Stellar (@StellarOrg) January 12, 2023
As stated in a Stellar Foundation blog post, TASCOMBANK praises the blockchain’s transparency, security, and confidentiality of customer data, low transaction costs, instant payment functionality, and high throughput “at each stage of development, from conducting operations to testing”
The goal of the project was to test the issuance of e-money, focusing on peer-to-peer and merchant payments, as well as payroll. Sergii Kholod, First Deputy Chairman of the Board of TASCOMBANK, commented:
As part of a pilot project we explored a new way of issuing and managing electronic money which could be a new generation means of payment for the citizens and organizations of Ukraine, their employees and clients, government institutions, and international organizations.
Speaking about the pilot project, Oleksii Shaban, Deputy Governor of the National Bank of Ukraine, said that there are “still many hypotheses” that need to be investigated in the pilot project. However, he expressed that the pilot results are an important basis for use at commercial and central banks.
Oleksandr Bornyakov, the Deputy Minister of Digital Transformation of Ukraine, also revealed that his ministry and TASCOMBANK are currently examining “the approaches to further rollout of blockchain-based payment instruments.”
Ukrainian Defense Efforts Bolstered By Crypto Donations
The use of cryptocurrency by Ukrainians is an effort to fight back against Russian troops positioned in their country. A blockchain analytics firm Elliptic revealed that Ukrainian crowdfunding had increased 900% since 2021, with most donations coming from within Ukraine itself rather than externally like before when it was funded mainly by other countries or organizations who saw what they called “a crisis.”
Related Reading | Ukraine Adopts New Law To Legalize Bitcoin And Other Cryptocurrencies
These groups have seen a significant rise in cryptocurrency funding thanks to Bitcoin. As a result, digital currency is becoming an alternative channel for donors, despite restrictions imposed by traditional financial systems.
Bitcoin allows people worldwide to make connections and create change that lasts far beyond anyone’s donations – crypto contributions can now harness this power.
In 2021, non-government organizations and volunteer groups received more than 0,000 worth of Bitcoin as crowdfunding. This marked a 900% increase from 2020.
Bitcoin is trading between ,000 to ,000 since yesterday | Source: BTC/USD on Tradingview.com
Since the Ukrainian military was effectively crumbling against the Russian invasion, many citizens have taken up arms to fight. They are called “volunteer groups.” They get funding from private donations.
Ukrainian Fundraising Campaigns Receive Crypto Funding
In the modern era, cryptocurrencies are becoming more popular as funding for fundraising campaigns. Elliptic’s study shows that digital currency users can contribute to these types of organizations and receive payment from them more effortlessly than ever before without having any interference or problems with cross-border payments, which makes it very attractive, among other things too.
With the potential of their payments being denied, private donors have turned away from bank wires and app payment systems in favor of Bitcoin. Some fundraising campaigns have had accounts closed before due to financial institution restrictions on certain funds raised through that particular means. Relatively new to this type of donation process. Still, it’s becoming more popular among those seeking alternative ways to donate money.
Related Reading | Solana’s Outlook Bullish Post Phantom’s Fundraising Round
Elliptic has revealed that one of the organizations they’ve uncovered thus far, Come Back Alive– a group that received nearly 0,000 in funding recently from September to December last year–provides support primarily for Ukraine’s army.
Cybersecurity organizations have been receiving funding via cryptocurrencies for years now. One such organization is the Ukrainian Cyber Alliance. The group primarily carries out cyber operations against Russia-based hackers and propaganda disseminators. The organization get help from its supporters worldwide through Bitcoin donations or Litecoin mining ventures. They’ve received almost 0 thousand in Bitcoin and other cryptocurrencies to fund their operations against Russia last year.
10,000 Russian Troops Massacred Near Border With Ukraine
The recent increase in military deployment near the border between Russia and Ukraine has residents on edge. Russia had stationed more than 10 thousand troops near eastern Donbas since last year when the conflict began following the Maidan revolution. To date, more than 6000 people, including soldiers, have died due to violence. Both sides blame each other for these deaths.
Featured image from Pixabay, chart from Tradingview.com
Ukrainian Local Bank To Launch Bitcoin Trading Feature In The Latter Part Of July
With the progress on crypto-related legislation from the Ukrainian Government, Bitcoin trading is about to experience a greater move. An important local e-bank, Monobank, plans to launch a BTC debit card to facilitate Bitcoin trading.
Related Reading | ‘Bitcoin King’ Arrested For Allegedly Embezzling 0 Million
Monobank is a Ukrainian online banking application. According to Oleg Gorokhovsky, the Co-Founder of Monobank, the e-bank has finished its pilot integration with a platform based on cryptocurrency trading.
Gorokhovsky made this announcement on Monday. Furthermore, he revealed that through this new integration, Monobank users could purchase and sell BTC using a debit card.
Gorokhovsky said that Monobank plans on releasing the new product this month. All that is left for its final move is approval from the National Bank of Ukraine.
After its launch in 2017, Monobank is operating with the license of Universal Bank. A former central bank chief and ex-deputy prime minister of Ukraine, Sergey Tigipko owns Universal Bank.
From a report in August 2020, Monobank already has a user base that is more than 2.5 million customers. Gorokhovsky had already revealed that Monobank gets an average addition of three persons per minute.
According to the video from Mikhail Rogalsky, the co-founder of Monobank, a total of UAH 244 billion have replenished Monobank cards. It also indicated that over 500 thousand users for the branded service-moneybox from the time of its launch.
Authorities Show Confidence In Bitcoin
Gorokhovsky, also a former deputy board chairman at PrivatBank, earlier in the year revealed his confidence in Bitcoin.
Bitcoin is struggling to break the k mark as the bulls try to take control over the market | Source: BTCUSD on TradingView.com
Gorokhovsky mentioned in his February Facebook post that Bitcoin has come to stay. He said that his proof and conviction came from Tesla’s purchase of .5 billion BTC.
Furthermore, he revealed his considerable personal stake in BTC. He also made a prediction of BTC hitting 0,000 by 2022.
From their own angle, the Ukrainian authorities are consistently dashing out series of cryptocurrency-related bills. Last Wednesday, the deputy minister of the Ministry of Digital Transformation, Oleksandr Boyakov, announced the recommendation of the authority.
He said that what is needed is the adoption of an upgraded bill in the second reading for the legislative. The drafted bill is “On the Virtual Assets.”
Ukraine’s Plans For Launching A Central Bank Digital Currency
The Ukrainian parliament on Wednesday passed a new law that will regulate payment processes and methods. The new legislation also concerns the regulations for the country’s Central Bank Digital Currency (CBDC).
Related Reading | Aave To Introduce Permissioned Deployment for Institutions Later In July
From the legislation, non-bank payment services were allowed to issue e-money and payment cards. Before now, it’s only the banks that can make such issuance to the public.
The legislation also gave the Ukrainian bank the sole authority of issuing the digital currency of the National Bank of Ukraine.
There will also be more transparency in the payment processes and methods. This will enable customers to get more information for every transaction they consummate.
Featured image from Pixabay, chart from TradingView.com
Bittrex Exchange Denies It Sought to Collaborate With Ukrainian Government
n Bittrex has denied claims that it reached out to the Ukrainian government to cooperate on developing the cryptocurrency industry theren
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