Newsfeed

Ryan Salame, the former co-chief executive of FTX Digital Markets, has agreed to transfer his $5.9 million property in the Bahamas as part of a plea agreement in a criminal case. This agreement was detailed in a motion filed with the United States Bankruptcy Court for the District of Delaware by FTX Trading Ltd and affiliated debtors on May 1. Salame pleaded guilty to criminal charges in September 2023, which required him to pay $5.6 million in restitution to the debtors. Instead of making a cash payment, Salame has proposed transferring ownership of his Bahamian residence, Unit No. 3A in the Marina Residences at Albany Building 10 Condominium, to FTX Digital Markets Ltd. The debtors argue that this arrangement is in their best interests as it prevents Salame from selling the property quickly at a discount, which could adversely affect their ability to monetize other Bahamian properties. This decision comes amidst a downturn in the Bahamian real estate market, with high-end sales...

U.S. Senators Elizabeth Warren and Angus King have expressed concerns about the potential national security threats posed by cryptocurrency mining in Iran. In a letter dated May 1 addressed to key officials such as National Security Advisor Jake Sullivan and Treasury Secretary Janet Yellen, the senators highlighted fears that Iran might be using digital assets to circumvent U.S. sanctions, potentially funding groups that pose threats to U.S. security. The letter urges the Biden administration to address the growing connections between the Iranian government and local crypto miners promptly. According to the senators, Iran has allegedly utilized cryptocurrency mining to evade sanctions and finance actions against U.S. interests, including the recent attack on Israel in April. They assert that the Iranian military has employed crypto to fund well-known terror groups such as Hezbollah, presenting a direct national security threat. The letter IS a call to action for U.S. officials to...

Iranian and Russian officials have confirmed their collaboration on central bank digital currencies (CBDCs) and digital financial assets (DFAs) to facilitate trade between the two nations. Rahimi Mohsen, the trade attaché of the Iranian Embassy in Russia, highlighted the potential of CBDC-powered options to simplify trade between Tehran and Moscow, potentially mitigating the impact of sanctions imposed on both countries. Mohsen acknowledged the challenges associated with CBDC-related payments but emphasized the necessity of creating infrastructure and regulations for new payment methods. He expressed Iran's intention to cooperate with Russia in implementing new regulations, citing the effective trade partnership between Tehran and Moscow. The Chairman of Russia’s Council for the Development of Foreign Trade and International Economic Relations, emphasized the strategic importance of a CBDC-powered partnership with Iran for Moscow. He highlighted the potential for such cooperation to...

The Arkansas House of Representatives has approved Senate Bills 78 and 79, which aim to regulate cryptocurrency mining activities in the state. Senate Bill 78 introduces noise limits, regulates water usage for cooling, prohibits foreign ownership of mining operations, and restores local government control over regulation. Senate Bill 79 establishes a state licensing and regulatory system overseen by the Oil and Gas Commission. Governor Sarah Huckabee Sanders is expected to sign the bills into law. These bills come as a response to the growing crypto mining industry in Arkansas, with concerns raised about its impact on local communities and the environment. The legislation seeks to balance the interests of miners with the need to protect rural areas and empower local authorities to address any issues arising from mining operations. The passage of these bills reflects a broader trend of increased regulatory scrutiny of cryptocurrency activities across the United States. As the crypto...

The US Justice Department has initiated legal actions against developers and operators of self-custody cryptocurrency wallets, including Samourai Wallet and Tornado Cash. Samourai Wallet founders Keonne Rodriguez and William Lonergan were arrested, accused of conducting over $2 billion in illegal transactions without a money transfer license. Similarly, Roman Storm, developer of Tornado Cash, faces charges of money laundering and violating sanctions. Senator Cynthia Lummis criticized the Justice Department's aggressive approach, arguing that considering non-custodial software as a money transfer service is incompatible with current Treasury guidelines and threatens fundamental property rights. Lummis stressed the need for policymakers to create a robust regulatory framework to prevent the exploitation of cryptocurrencies by malicious actors while supporting innovation in the sector. The Justice Department's actions raise concerns about the implications for privacy-focused...

Hong Kong's ZA Bank, a subsidiary of China's ZhongAn Online P&C Insurance, is considering entering the virtual asset market following the implementation of new regulations for digital assets in the region. These regulations, established last year, require all crypto exchanges to apply for licenses by February 2024, with 24 companies currently vying for these licenses. Approval from the Securities and Futures Commission (SFC) is highly coveted, positioning Hong Kong as a prestigious regulatory hub. Ronald Iu Man-chung, CEO of ZA Bank, revealed plans to offer virtual asset trading services for retail investors pending final preparations. However, specific details regarding the services will be announced once these preparations are complete. ZA Bank's interest in virtual asset services comes amidst a stricter regulatory landscape in Hong Kong, with the SFC urging investors to use only licensed platforms and unlicensed exchanges facing closure by May 31. Currently, only OSL Digital...

Two U.S. lawmakers, Representatives Drew Ferguson and Wiley Nickel, have proposed the Providing Tax Clarity for Digital Assets Act to address taxation issues concerning block rewards earned by crypto miners. The bill seeks to clarify the tax treatment of staking rewards, suggesting that they should only be taxed at the time of their sale, aiming to prevent double taxation and provide clarity for investors and businesses in the digital asset industry. Representative Ferguson underscored the complexity of the current tax treatment of digital asset rewards, emphasizing the confusion it creates among investors and the potential for American businesses to relocate overseas due to regulatory uncertainty. The proposed legislation aims to establish clear tax guidelines for block rewards from proof-of-work and proof-of-stake networks, aligning taxation with the sale or spending of these rewards rather than their acquisition. The move responds to recent IRS rulings and the evolving landscape...

The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Geosyn Mining and its co-founders, Caleb Joseph Ward and Jeremy George McNutt, accusing them of fraudulent activities. The lawsuit, filed on April 24 in a federal court in Fort Worth, Texas, alleges that Geosyn defrauded approximately 64 investors by selling service agreements disguised as securities. The SEC's allegations revolve around Geosyn's purported misrepresentation of its operational capacities and financial dealings, including false assertions about its contracts with electricity providers. Investigations revealed inflated energy costs compared to disclosed figures, raising concerns about misappropriation of investor funds. The SEC further alleges that around $5.6 million of investor funds were diverted for personal use, including expenses like trips to Disney World and legal fees related to separate drunk driving incidents involving Ward and McNutt. Geosyn's financial reserves dwindled...

The Kenyan government has formed a multi-agency technical working group tasked with developing a regulatory framework for the cryptocurrency industry. This group, which includes regulators such as the Central Bank of Kenya (CBK), aims to draft rules for controlling and monitoring Virtual Asset Service Providers (VASPs). Concerns about potential grey listing by the Financial Action Taskforce (FATF) due to Kenya's lack of crypto regulation prompted authorities to create the working group. The absence of regulations has led to the proliferation of online marketing of virtual assets and fraudulent investment schemes, prompting warnings from financial regulators. Treasury Cabinet Secretary Njuguna Ndung’u emphasized the need for a regulatory framework to address the emergence of virtual asset trading and online fraud. While some unlicensed VASPs, like Worldcoin, have operated in Kenya, authorities have cracked down on such entities to protect investors and prevent irregular injections of...

The European Parliament has approved new regulations aimed at combating money laundering and illicit activities in the cryptocurrency industry. These regulations, part of the Markets in Crypto-Assets (MiCA) framework introduced by the EU in 2023, particularly impact Crypto-Asset Service Providers (CASPs), including centralized exchanges. Key highlights of the regulations include the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) to oversee enforcement, and the imposition of strict Know Your Customer (KYC) procedures on CASPs to prevent money laundering. Despite concerns, Patrick Hansen, Director of EU Strategy & Policy at Circle, clarified that the Anti-Money Laundering Regulations (AMLR) are not solely focused on cryptocurrencies. However, obligated entities, including financial institutions and CASPs, must adhere to the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework. The regulations also...

Armenian law enforcement agencies recently underwent training on crypto-asset investigations, facilitated by the Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) in collaboration with the United Nations Office on Drugs and Crime (UNODC). The three-day training, held in Yerevan, involved 27 representatives from various agencies, focusing on fundamental techniques and practical tools for effective investigations into crypto-related crimes. Participants learned methods for tracing criminal transactions across diverse blockchain networks, exchanged good practices, and gained insights into specialized analytics software and open-source tools relevant to the field. This initiative aims to strengthen Armenia's domestic law enforcement capabilities, particularly in investigating and tracing virtual assets. Funded by several countries, including Germany, Italy, and the United States, the training is part of an OSCE-led project to assist participating states in...

Tether has announced its decision to freeze all wallet addresses associated with the Venezuelan government's oil sales that bypass US sanctions. The move comes after reports surfaced of Venezuela using USDT stablecoin for oil transactions, circumventing US government sanctions. Tether's spokesperson emphasized the company's commitment to complying with the Office of Foreign Assets Control (OFAC) sanctions list, stating that sanction-related addresses would be promptly frozen. The Venezuelan government's state-run oil company, PDVSA, allegedly utilized stablecoins for fuel and crude oil deals for almost six months before US government approval in 2023. Reports also link a corruption scandal within PDVSA to cryptocurrencies, with allegations of funds disappearance amounting to $20 billion in crude oil shipments. While some express concern over Tether's actions, suggesting bias, others speculate that Venezuela may turn to decentralized stablecoins like DAI for its oil transactions to...