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US prosecutors have filed charges against Charles O. Parks III, also known as "CP3O," for wire fraud and money laundering offenses related to an illegal cryptojacking scheme. Parks is accused of defrauding two cloud computing providers based in Seattle and Redmond, Washington, of $3.5 million to mine cryptocurrencies, including Ether, Litecoin, and Monero, valued at almost $1 million. Parks allegedly used multiple aliases and corporate affiliations to establish accounts with the cloud providers from January to August 2021. He accessed heightened services and benefits, such as high cloud computing services and deferred billing accommodations, using these accounts. The indictment states that Parks laundered the illegally mined cryptocurrency through decentralized cryptocurrency exchanges and a New York City-based NFT marketplace. He also evaded federal law's transaction reporting requirements by structuring payments below the $10,000 threshold. Despite having one account suspended for...

The US Senate has approved the renewal of Section 702 of the Foreign Intelligence Surveillance Act (FISA), allowing the government to collect data from tech giants like Google and Facebook without warrants. The legislation, passed with a vote of 60-34, awaits President Biden's signature to extend surveillance powers for two more years. This move has sparked concerns in the cryptocurrency community, which prioritizes privacy and decentralization, as Section 702's broad reach could potentially infringe on these principles. Critics, including Senator Ron Wyden, argue that the law might lead to unnecessary data collection on American citizens. On the other hand, some lawmakers, like Senator Elizabeth Warren, believe monitoring the crypto sector is essential for regulatory oversight. The reauthorization of Section 702 could subject crypto businesses to increased regulatory scrutiny from agencies like the SEC, CFTC, and DOJ, necessitating compliance with surveillance and data collection...

Meta Platforms has introduced early versions of its new large language model, Llama 3, featuring implementations with 8 billion and 70 billion parameters, respectively. These models aim to bolster Meta AI virtual assistant capabilities and are integrated into major platforms such as Facebook, Instagram, WhatsApp, and Messenger. The release of Llama 3 signifies Meta's strategic move to strengthen its position in the evolving AI landscape. Meta claims that Llama 3 has surpassed benchmarks for reasoning, coding, and creative writing, positioning it as a competitor to industry leaders like OpenAI's ChatGPT. In addition to computational improvements, Llama 3 enhances handling of subtle language nuances, addressing areas where predecessors struggled. These enhancements coincide with Meta's plans to launch its AI assistant in over a dozen new international markets, expanding its global reach and audience. Chris Cox, Meta’s Chief Product Officer, highlights the incorporation of combined text...

Canada is set to become one of the first nations to adopt the International Crypto-Asset Reporting Framework (CARF) for taxation by 2026, according to a supplement to the country’s 2024 annual budget reported by the National Post on April 16. The CARF, agreed upon by the Organisation for Economic Co-operation and Development (OECD) in August 2022, aims to be implemented in 47 countries by 2027, as pledged in November 2023. The framework places new reporting requirements on crypto asset service providers (CASPs), including exchanges, brokers, and ATM operators. These providers will be obligated to report various transactions to the Canada Revenue Agency (CRA), including crypto-to-fiat and crypto-to-crypto transactions exceeding $50,000 USD, and collect information on their customers, both residents and non-residents. Additionally, the budget plan proposes to raise the capital gains tax inclusion rate from 50% to 66% for annual incomes exceeding $250,000, sparking concerns within the...

According to a report by the South China Morning Post, Hong Kong customs officers have arrested three individuals in connection with a massive HK$1.8 billion ($228 million) money-laundering operation. The scheme exploited a crypto platform and bank accounts associated with shell companies. During the investigation, it was found that one account involved received significant daily deposits, with two suspects allegedly handling HK$760 million through a cryptocurrency platform, particularly Tether. Florence Yeung Yee-tak, commander of the Financial Investigation Division of the Customs Department, highlighted the challenges in investigating crypto-related money laundering due to anonymity and jurisdictional restrictions. The trio, comprising a woman and two men, allegedly set up multiple companies and bank accounts and engaged in over 1,000 suspicious transactions. While the core suspects have been arrested, investigations into the source and destination of funds are ongoing. In...

A new report by the International Monetary Fund (IMF) titled "A Primer on Bitcoin Cross-Border Flows" shows Bitcoin's growing importance as a channel for cross-border financial transactions, particularly in regions facing economic turmoil or strict capital controls. The decentralized nature of Bitcoin enables residents in countries with restrictive financial regulations, such as Argentina and Venezuela, to move capital across borders more freely. In these nations, Bitcoin serves as a vital financial tool for preserving wealth and accessing global markets, beyond its role as a speculative investment. While acknowledging the benefits, the IMF report also warns of potential risks associated with Bitcoin's widespread use for cross-border flows, including concerns about money laundering due to the anonymity provided by cryptocurrencies. The study analyzes both on-chain and off-chain transaction data, revealing that Bitcoin transactions exhibit unique characteristics compared to...

Tether, the issuer of the USDT stablecoin, has announced the establishment of four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu. These divisions aim to offer a wide range of services, including data management, blockchain-based financial services, sustainable Bitcoin mining, Artificial Intelligence (AI), and digital education initiatives. Tether is building a more inclusive financial and technological future, expanding beyond its core business of stablecoin issuance. The company aims to create accessible financial products and services for individuals worldwide, leveraging blockchain technology to democratize the financial system. Additionally, Tether plans to launch a digital asset tokenization platform, enabling the tokenization of various assets like bonds, stocks, or funds. This initiative aligns with Tether's vision of empowering individuals and communities through technology. Paolo Ardoino, CEO of Tether, emphasized the company's dedication to...

Swedish crypto miners are facing tax bills totaling over $90 million after investigations by the Swedish Tax Agency revealed four years of misappropriations. The agency investigated 21 crypto-mining firms between 2020 and 2023, uncovering misleading or incomplete information filed by 18 firms to benefit from tax incentives. Some firms provided misleading business descriptions to avoid VAT on taxable operations, while others evaded import taxes on mining equipment and income tax on mining revenue. The crypto mining firms are required to pay over 990 million Swedish krona ($90 million) in total, including unpaid VAT of 932 million krona ($85.4 million) and tax surcharges of approximately 57.9 million krona ($5.3 million). Although some firms appealed against the demand, the administrative court upheld the appeals of only two mining firms. In November 2023, crypto mining firm Hive Digital Technologies acquired a commercial property and a data center in Boden, Sweden, to expand its...

Binance, one of the world's largest cryptocurrency exchanges, is poised to make a comeback in India after a four-month ban by agreeing to pay a $2 million fine for non-compliance. This move comes after India's financial regulatory body, the Financial Intelligence Unit (FIU), blocked access to nine foreign crypto exchanges, including Binance, for failing to adhere to the country's Anti-Money Laundering Act. Binance's return marks the second overseas exchange, following KuCoin, to re-enter the Indian market. Before its ban in January, Binance reportedly accounted for over 90% of Indian crypto trading volume. Indian users turned to foreign exchanges like Binance to evade heavy tax burdens, prompting the government to ban unregistered overseas exchanges. With FIU registration, foreign exchanges must comply with the same regulations as Indian exchanges, including implementing a 1% tax deduction at source (TDS). Despite its long history in India, including its alleged acquisition of local...

Former chief of the SEC’s crypto litigation unit, Ladan Stewart, hinted at the possibility of a lawsuit involving companies like Ripple and Coinbase reaching the US Supreme Court to resolve key questions about the definition of securities within the crypto space. Stewart's insights, shared during a panel at Columbia Business School, reflect the SEC's regulatory stance and its implications for the crypto industry. Stewart emphasized that the SEC is unlikely to back off from bringing regulatory cases in the crypto space, citing Judge Failla’s decision in the Coinbase case as providing comfort to the agency in its approach. The panel discussion delved into broader implications of how digital assets are treated under US law, with ongoing disputes about whether tokens themselves are securities or if it is the manner of their sale that creates an investment contract. Panelists expressed contrasting views, highlighting persistent areas of contention between the crypto industry and...

The Norwegian government has passed a new law aimed at regulating and potentially closing cryptocurrency mining operations within its borders. The move, disclosed by local news outlet VG, reflects Norway's commitment to reducing greenhouse gas emissions associated with crypto mining and aligning with global climate objectives. The legislation specifically targets data centers facilitating crypto mining activities, with digitalization minister Karianne Tung and energy minister Terje Aasland emphasizing the government's stance against such businesses. Norway's favorable energy landscape, particularly its abundance of hydropower, has made it an attractive destination for Bitcoin miners seeking low-cost electricity. However, concerns over the environmental impact of crypto mining have prompted regulatory action, signaling potential challenges for the industry's future in the country. The timing of this regulatory move, just ahead of Bitcoin's halving event, adds complexity to the...

The Bank of Israel is set to launch a sandbox environment for testing central bank digital currency (CBDC) use cases. Deputy Governor Andrew Abir announced the initiative, stating that the sandbox will facilitate collaboration among financial institutions, fintech companies, and other stakeholders to develop and test innovative applications for the digital shekel. Abir emphasized the digital shekel's stability compared to cryptocurrencies, highlighting its similarity to physical cash in terms of being a liability of the central bank. He clarified that the digital shekel will be backed by the Bank of Israel and will maintain a stable value, unlike cryptocurrencies subject to significant fluctuations. The digital shekel is expected to enable transactions not feasible with physical cash, such as e-commerce transactions. The Bank of Israel plans to adopt a two-tiered operational model, allowing a wide range of entities, including payment companies and fintech firms, to participate in the...