SEC - Page 135

Cryptocurrency personality Thomas John Sfraga has pleaded guilty to wire fraud, admitting to deceiving more than a dozen victims into investing in fictitious ventures, including fraudulent cryptocurrency schemes.

“Sfraga convinced a victim to invest in a fictitious cryptocurrency ‘virtual wallet,’” the United States Department of Justice (DOJ) declared in a May 17 statement.

The agency elaborated that Sfraga has experience in podcasting and the crypto industry, including hosting crypto events in New York.

“He promised the victims returns on their investments as high as 60% in three months,” the DOJ added. However,

Sfraga was operating a Ponzi scheme, where returns paid to earlier investors came not from legitimate profits but from the investments of new participants.

“In reality, however, Sfraga converted the monies to his own benefit, to pay expenses, and to pay earlier victims and business associates,” the DOJ explained.

Several of Sfraga’s victims were reportedly friends and neighbors, whose trust he betrayed to “swindle over $1.3 million of their hard-earned savings.”

READ MORE: Binance Develops Antidote to Combat Growing Address Poisoning Scams

Such gains are not unusual in the crypto market — Bitcoin rose 65% over three months this year from Jan. 24 to April 24, according to CoinMarketCap data.

At the time of publication, Bitcoin is trading at $66,860. Several altcoins have seen much larger returns over the same period — Pepe and Dogwifhat (WIF) rose by 722% and 656%, respectively.

This case follows a series of crackdowns on cryptocurrency fraud.

On May 15, Cointelegraph reported that the DOJ charged brothers Anton Peraire-Bueno and James Pepaire-Bueno with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering.

The brothers allegedly obtained $25 million in cryptocurrency in approximately 12 seconds using a scheme that undermined the integrity of the blockchain.

Just a month earlier, on April 4, the former head of legal and compliance for the multibillion-dollar OneCoin fraud scheme was sentenced to four years in jail after admitting she helped launder millions of dollars.

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An Australian man has admitted his role in promoting cryptocurrency lending services for the now-defunct crypto exchange BitConnect, a notorious entity accused of operating as a Ponzi scheme and defrauding victims of over $2.4 billion before shutting down in 2018.

“Mr. Bigatton provided financial product advice without holding an Australian Financial Services license or authorization to provide financial services about the lending platform,” the Australian Securities and Exchange Commission (ASIC) stated on May 17.

ASIC claimed that John Louis Anthony Bigatton, in his capacity as BitConnect’s national promoter, gave financial product advice on six occasions at different locations across Australia, including four seminars and two social media posts.

“Mr. Bigatton undertook promotional activities for BitConnect and the Lending Platform on social media, at seminars that he hosted at various locations around Australia, and through face-to-face meetings with investors,” ASIC continued.

BitConnect’s lending platform was touted as an investment opportunity, urging investors to purchase BitConnect coin (BCC) through its website.

Investors could loan BCC for a fixed period in exchange for high interest rates.

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Once invested, they had no control over their loans or the ability to withdraw their money until the lending period concluded.

This structure allegedly allowed the platform to function as a Ponzi scheme, using funds from newer investors to pay returns to earlier investors, as per the United States Internal Revenue Service.

A sentencing hearing is scheduled for July 5.

BitConnect was launched in February 2016, offering a platform and a digital currency, but it ceased operations in January 2018 when its founders disappeared with investors’ money.

In January 2023, the U.S. District Court for the Southern District of California ordered $17 million in restitution for the fraudulent scheme, providing some relief to victims of the BitConnect investment scam.

A group of victims of the BitConnect fraud scheme found some solace when a court mandated they receive a portion of the $17 million restitution.

The whereabouts of founder Satish Kumbhani remain unknown.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

On May 17, Ether’s price surged by 5.5%, nearing $3,100 for the first time in ten days. Analysts attributed this rally to a decline in demand for fixed-income instruments following stagnant U.S. retail sales data for April.

This data heightened market expectations of a potential interest rate cut by the U.S. Federal Reserve to stimulate the economy.

Expansionary measures by the central bank are typically seen as bullish for risk-on markets, due to increased monetary supply or reduced credit costs for businesses and individuals.

Investors sought exposure to scarce assets, including cryptocurrencies, leading to gold reaching $2,410, just 0.8% below its all-time high.

A U.S. Department of Justice indictment unsealed on May 15 also boosted Ether’s surge.

The indictment accused two individuals of wire fraud and money laundering by manipulating the Ethereum blockchain.

The document stated that “Ethereum is a decentralized blockchain […] without the need for a trusted intermediary” and added, “No central actor runs the Ethereum Network.”

Additionally, the court noted that Ethereum smart contracts enable transactions without a trusted intermediary.

These statements boosted Ether investors’ confidence, especially after the U.S. Securities and Exchange Commission issued a Wells notice to Robinhood on May 4 over alleged securities violations related to crypto listings and custodian operations.

Orlando Cosme, founder and CEO of Lexproof, remarked that this verdict contradicts regulators’ classification of ETH as a security, “as there would be no management or entrepreneurial efforts of others.”

READ MORE: Oobit Mobile Payment App Integrates with Tether’s USDT and XAUt on TON for Streamlined Transactions

While this analysis does not change the approval odds of U.S. spot Ether exchange-traded funds (ETFs), it certainly lifted investors’ spirits.

The U.S. SEC is expected to provide its final ruling on VanEck’s spot Ether ETF request on March 23 and rule on the conversion of Grayscale’s ETHE fund by June 18.

Although analysts predict approval odds below 35%, the regulators’ case for classifying Ether as a security instrument has weakened, contributing to the rally above $3,050 on May 17.

Solana co-founder Anatoly Yakovenko praised Ethereum’s network security, highlighting how coordinating “an invalid state transition or double spend attack” would be nearly impossible.

In a May 17 post, Yakovenko added that layer-2 scaling reduced costs without compromising security due to the network’s large number of validators and operators.

Investors realized that Ethereum’s setbacks, including high transaction fees and slow scalability efforts, were decisions prioritizing security and decentralization.

Meanwhile, competitors Solana and BNB Chain opted for higher processing capacity solutions, increasing dependency on fewer entities.

Ethereum’s strength is evident in its dominance in decentralized application (DApp) activity.

The growth of layer-2 solutions such as Base, which gained traction due to its low fees and integration with Coinbase, reinforces Ethereum’s potential as a global settlement layer.

Ethereum’s $181.5 billion in DApp volume over 30 days is more than seven times larger than its direct competitor, BNB Chain.

This volume declined merely 3% compared to the previous month, while BNB Chain and Solana experienced 52% and 41% decreases, respectively.

Analyzing unique active addresses engaging with DApps yields similar results, with Ethereum gaining 3% in 30 days, while BNB Chain and Solana faced steep declines.

Highlights from the Ethereum network include Balancer, which saw a 34% volume increase, Morpho Optimizers with an 80% gain, and DODO with a 61% boost.

In essence, even if U.S. spot Ether ETF approval odds remain low, the network’s dominance in the DApp ecosystem remains unaffected.

This realization contributed to the ETH price gains on May 17.

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Former Binance CEO, Changpeng “CZ” Zhao, plans to “write something” during his upcoming four-month prison term. Judge Richard Jones sentenced Zhao on April 30 to four months in prison after he pleaded guilty to one felony charge for failing to maintain an effective Anti-Money Laundering program at Binance.

Zhao is expected to serve his time either at the Federal Correctional Institution Sheridan in Oregon or the Federal Detention Center SeaTac in Washington, though the reporting date was not determined at the time of publication.

Despite his legal troubles, CZ has remained active on social media.

He launched Giggle Academy, a youth-focused crypto and blockchain education program, and engaged with his 8.9 million followers on X, seeking suggestions on how to pass the time in prison.

With a net worth of $33 billion, CZ would be one of the wealthiest individuals to serve time in prison.

His legal team argued that his wealth and status could make him a target for theft and extortion, potentially influencing the judge’s decision to allow him to remain free until the Probation or Pretrial Services Office decides his reporting details.

During this period, Zhao has kept himself busy, mentioning on X that he has “nothing else to do” but read books and wait for his reporting date.

READ MORE: Oobit Mobile Payment App Integrates with Tether’s USDT and XAUt on TON for Streamlined Transactions

He pleaded guilty in November 2023 and has since been free on a $175 million bond, restricted to travel within certain U.S. areas.

The Federal Bureau of Prisons is likely considering which facility would be safest for Zhao, given that both FDC SeaTac and FCI Sheridan house violent offenders.

According to the Probation or Pretrial Services Office of the Western District of Washington, presentence reports help the Bureau designate suitable institutions, select prison programs, and develop case plans for custody and eventual release.

In November, Zhao paid a $50 million penalty as part of a deal between Binance and U.S. authorities.

Binance agreed to pay $4.3 billion to settle civil regulatory enforcement actions, though this did not resolve a separate lawsuit filed by the U.S. Securities and Exchange Commission.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Gaming infrastructure developer Param Labs has secured $7 million in a heavily oversubscribed funding round.

Led by crypto venture capital firm Animoca Brands, the round also saw participation from Delphi Ventures, Cypher Capital, P2 Ventures (formerly Polygon Ventures), Mechanism Capital, Merit Circle, TRGC Capital, Double Peak Group, and MH Ventures.

The funds will tackle one of Web3 gaming’s biggest challenges: the lack of foundational infrastructure.

Anthony Anderson, CEO of Param Labs and Kiraverse, emphasized the importance of modular gaming ecosystems in establishing the foundation for future Web3 games.

Anderson told Cointelegraph, “Unlike most Web3 studios that focus on developing single game titles, modular ecosystems offer a variety of products and components.

This allows developers to build their own games from these modules and provides essential tools for other developers to utilize and integrate into their projects.”

The funding round comes as the Param Gaming Platform experiences significant growth, boasting over 300,000 daily active users (DAUs) and a X page with more than 2.5 million followers.

Strategic investments were also made by Animoca Labs co-founder Yat Siu and FaZe Clan founder Banks.

Yat Siu highlighted the potential of Param Labs in realizing an open metaverse, stating, “We’re excited to partner with Param Labs to advance digital property rights in gaming, bringing us a step closer to realizing the vision of the truly open metaverse.

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This collaboration aligns with our shared vision to redefine the gaming landscape, ensuring that gamers are the true owners of their digital assets.”

The absence of Web3 gaming infrastructure poses significant hurdles for blockchain integration, hindering mainstream adoption.

Anderson remarked, “Focusing on infrastructure is crucial as it not only addresses the challenges in the games we’re developing but also has the potential to be applied to hundreds, if not thousands, of other experiences.

This will significantly contribute to the adoption of blockchain gaming.”

This issue was highlighted by Wanderers game founder Nick Greenawalt, who shared a gameplay preview ironically dubbing it “the future of gaming.”

The video, showing gameplay interrupted by MetaMask wallet prompts, underscored the need for seamless gaming infrastructure.

Anderson concluded that for mainstream adoption, Web3 games must integrate crypto assets and Web3 technology organically, avoiding friction points.

“Gamers should be able to interact with on-chain assets without even realizing it, while still benefiting from features like trading assets with friends and monetizing their in-game time,” he said.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

New York, USA, May 17, 2024 – CAGA Crypto, a leading decentralized finance platform, is proud to announce the launch of its brand-new testnet. This event brings forth innovative features, including the ability for users to utilize CAGA tokens as gas fees for transactions across various networks, along with the introduction of NFT minting capabilities. Additionally, CAGA is hosting multiple ongoing airdrop campaigns, offering participants the opportunity to engage with the platform and earn rewards.

Within just one week of its launch, the CAGA Testnet has already gained over 200,000 transactions and more than 10,000 active wallets. This impressive achievement demonstrates the platform’s growing popularity and showcases the community’s enthusiasm for exploring its capabilities.

The launch of CAGA’s testnet is a significant step forward in the platform’s evolution. Users will soon have the capability to utilize CAGA tokens as gas fees for transactions conducted across different networks, providing a seamless and cost-effective solution for decentralized finance activities. This integration will further enhance the utility of CAGA tokens and expand their use cases beyond traditional staking and governance functions.

In addition to the gas fee integration, CAGA introduces NFT minting capabilities on its platform. Users will be able to create, buy, sell, and trade NFTs directly within the CAGA ecosystem, tapping into the flourishing market of digital collectibles and unique digital assets. The NFT minting feature will add a new dimension to the CAGA platform, offering users opportunities for creativity, self-expression, and potential financial gain.

Furthermore, CAGA is conducting multiple ongoing airdrop campaigns to engage its community and reward participants for their support. These campaigns offer participants various opportunities to earn rewards through activities such as staking, purchasing, and social engagement. The airdrop campaigns aim to foster community participation and incentivize users to actively contribute to the growth and development of the CAGA ecosystem.

Commenting on the launch of the testnet and the introduction of new features, Rino, the founder of CAGA Crypto, stated, “We are thrilled to unveil the launch of our testnet, which is a significant event on our way towards creating a reliable and user-centric decentralized finance platform. With the integration of gas fee functionality and NFT minting capabilities, we aim to provide our users with enhanced utility and opportunities for engagement within the CAGA ecosystem. We look forward to seeing the positive impact these innovations will have on our community and the broader decentralized finance establishment.”

About CAGA Crypto

CAGA Network is a decentralized blockchain that utilizes state-of-the-art technology to provide rapid, secure, and scalable solutions. CAGA mission is to cultivate a trusted environment where everyone can confidently develop their blockchain-based products and execute transactions with ease and efficacy. 

Airdrop Campaign

Join the CAGA Airdrop Campaign and unlock your share of 1 billion CAGA tokens! Engage in our newly launched testnet through diverse activities from NFT minting to daily swaps on our DEX. Register on Galxe or QuestN, complete tasks, and accumulate points to secure your portion of the rewards by June 12, 2024. Act now to explore the innovative features of CAGA’s decentralized finance platform and help shape the future of blockchain technology. Start your journey today at Galxe & QuestN and claim your stake in the future of DeFi!

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For more information about CAGA Crypto and its ongoing initiatives, please visit the official website or follow CAGA on social media platforms.

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