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Celsius Collapses Amid Regulatory Scrutiny: A Deep Dive into the Crypto Lender’s Downfall

Celsius, a top cryptocurrency lender in 2021, collapsed due to inherent business model flaws, regulatory investigations, and legal issues.

Once managing $25 billion in assets for 1.7 million customers, the company’s downfall started in 2022’s bear market, particularly after Terra’s implosion in May.

Celsius’ dependency on its CEL token and high staking rewards left it vulnerable, and when ties to Terra were revealed, the CEL price plummeted.

This prompted the company to move funds off-platform and freeze user withdrawals.

By July 2022, Celsius filed for Chapter 11 bankruptcy with $2.7 billion in debt.

The same month, securities regulators from five U.S. states, including the U.S. Justice Department, CFTC, FTC, and SEC, initiated investigations into the company and its CEO, Alex Mashinsky. Mashinsky resigned in September amidst rumors of planning to escape the U.S.

The first serious allegation against Celsius and Mashinsky emerged in 2023, with the CFTC alleging violations of U.S. regulations and investor deceit.

Shortly after, the SEC accused them of fraudulent and unregistered billion-dollar offers, leading the FTC to levy a $4.7 billion fine and cease Celsius’ trading. The Justice Department charged Mashinsky with multiple fraud counts.

Mashinsky and former Chief Revenue Officer, Roni Cohen-Pavon, also faced charges of manipulating CEL prices while selling their tokens at inflated prices.

However, the Southern District of New York’s United States attorney stated that Celsius would not face charges after agreeing to accept responsibility and assist in fund recovery for customers.

Mashinsky was arrested but subsequently released on a $40 million bond.

The Celsius debacle has put other crypto companies under regulatory scrutiny. Binance and Coinbase are facing similar lawsuits.

The increased regulatory enforcement has sparked debates about clarity in regulations. Legal experts suggest that these legal repercussions could improve the crypto industry by dissuading fraudulent practices.

However, regulators must also safeguard the rights of both crypto companies and their customers.

Crypto industry advocates argue that persecuting bad actors is a positive step, creating an environment where users can trust the safety of their assets.

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House Financial Services Committee to Markup Legislation for Regulatory Clarity in the Digital Asset Ecosystem

Crypto News Today/DeFi

Representative Patrick McHenry, Chairman of the House Financial Services Committee (FSC), made a significant announcement regarding legislation aimed at providing regulatory clarity for the digital asset ecosystem.

The committee’s upcoming meeting on July 26 will focus on the markup of several bills, including H.R. 4763, the Financial Innovation and Technology for the 21st Century Act; H.R. 4766, the Clarity for Payment Stablecoins Act of 2023; and H.R. 1747, the Blockchain Regulatory Certainty Act, among others.

Of particular importance is the markup of the Clarity for Payment Stablecoins Act, introduced by Chairman McHenry, which seeks to establish clear regulations for stablecoins designed for use in payments.

The move comes in response to the growing need for regulatory frameworks that address the unique characteristics of digital assets.

One day after introducing the Financial Innovation and Technology for the 21st Century Act, U.S. Representative French Hill, Chairman of the Subcommittee on Digital Assets, emphasized the importance of a functional regulatory framework in protecting investors from financial fraud.

He highlighted that such legislation could have prevented incidents like FTX stealing billions of customer funds.

The proposed bills also aim to establish robust consumer protections and clear rules for market participants.-

In parallel to these legislative efforts, the U.S. Department of Justice (DoJ) is taking action to tackle crypto-related crimes.

The DoJ has decided to merge two teams, the Computer Crime and Intellectual Property Section (CCIPS) and the National Cryptocurrency Enforcement Team (NCET), to create a larger structure with increased resources.

This consolidation will result in more than double the number of criminal division attorneys available to handle cryptocurrency-related cases.

Any CCIPS attorney may now potentially be assigned to work on an NCET case, strengthening the DoJ’s capabilities in combatting crypto crime.

These developments signal a growing recognition of the importance of regulatory clarity in the digital asset space.

The proposed legislation and the DoJ’s increased focus on crypto-related crimes demonstrate the government’s commitment to fostering a secure and transparent digital asset ecosystem while safeguarding investors and consumers.

The markup scheduled for July 26 marks a significant step toward achieving these objectives.

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Worldcoin Sparks Controversy As It Launches Ecosystem Token

Crypto News Today/Metaverse

Worldcoin, an ambitious project co-founded by Sam Altman, the CEO of OpenAI, made headlines on July 24 with the launch of its ecosystem token.

Since its inception on March 14, the project has sparked both admiration and skepticism across the cryptocurrency community and Silicon Valley.

At the heart of Worldcoin’s vision lies the goal of addressing income inequality and revolutionizing online identity authentication.

To achieve this, the project introduced the World ID, a global digital passport designed to be stored on users’ smartphones.

By utilizing the World ID, individuals can prove their humanity to websites without divulging personal information like phone numbers, thus reducing the reliance on traditional identification methods.

On May 8, Worldcoin furthered its mission by releasing a gas-free crypto wallet, accessible to verified human users.

Registering for a World ID, users can take advantage of gas-free transfers, requiring only a phone number or an iris scan for authentication.

To alleviate privacy concerns, the developers asserted that the project doesn’t store the provided user data but rather generates a zero-knowledge proof to verify their humanity without exposing sensitive information.

In response to its launch, several prominent crypto exchanges, including Binance, Bybit, OKX, Gate, and Huobi, announced plans to list Worldcoin’s token on their platforms, signifying the project’s growing acceptance within the industry.

However, not all is smooth sailing for Worldcoin, as the project encountered a setback when blockchain security firm PeckShield discovered a fake Worldcoin token that performed a rug pull, highlighting the challenges of the crypto landscape.

Despite the support received from many quarters, Worldcoin has faced opposition from some community members, notably former Twitter CEO and Bitcoin advocate Jack Dorsey.

Dorsey expressed concerns about the idea of corporations or states having ownership over the global financial system.

Nevertheless, the project has seen impressive interest, as evidenced by over 2 million sign-ups to its World ID initiative on July 14.

Sam Altman himself expressed optimism, tweeting about his aspirations to expand the sign-up numbers to a staggering 2 billion.

To bolster its decentralized identification system and the World App crypto wallet, Worldcoin successfully secured $115 million in funding on May 25.

Leveraging advancements in artificial intelligence, the project pitches a decentralized and privacy-preserving solution to empower individuals with control over their online identities and enhance cybersecurity.

As Worldcoin continues to forge ahead, it remains a polarizing force in the crypto space, with both supporters and critics keeping a keen eye on its progress toward tackling income inequality and shaping the future of digital identity authentication.

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Controversial Proposal Sparks Fierce Debate Among Members of Solana-Based Liquidity Network

Bitcoin Network Reaches Milestone as 800,000th Block Mined

Bitcoin/Crypto News Today

The Bitcoin network recently reached a significant milestone by mining its 800,000th block, leaving just 40,000 blocks remaining until the next mining reward halving.

The 800,000th block contained 3,721 transactions, occupying 1.64 megabytes of data. Concurrently, the price of Bitcoin was trading at $29,815, a slight decrease from $29,162, as reported by market researcher Dylan LeClair on Twitter.

The achievement garnered considerable attention on social media, with Bitcoin enthusiasts and industry experts touting it as a testament to the network’s security and resilience.

In the context of blockchain technology, the term “block height” refers to a block’s position on the blockchain concerning the number of blocks that came before it, dating back to the network’s founding block, known as the genesis block.

Each block comprises bundled transactions and data, forming a chronological order that allows users to track the sequence of recorded transactions.

Block height also plays a crucial role in ensuring the immutability of the Bitcoin blockchain. As more blocks are added, the computational power required for a malicious actor to tamper with previous blocks significantly increases.

This helps prevent 50% attacks, where an attacker gains enough computing power to monopolize block generation, enabling them to reverse transactions and disrupt the network.

Moreover, block height affects the mining difficulty of the Bitcoin network.

The mining difficulty is adjusted regularly based on the total computational power of the network and the time it takes to mine a specific number of previous blocks.

Since the network generates a new block approximately every 10 minutes, any changes in hashing power result in automatic adjustments to maintain equilibrium.

Furthermore, block height determines the rewards received by miners for adding a new block to the network. Bitcoin’s design includes a block-halving event roughly every four years or every 210,000 blocks.

Initially, the block reward was 50 BTC in 2009, which halved to 25 BTC in 2012, 12.5 BTC in 2016, and presently stands at 6.25 BTC since 2020.

The next halving event is anticipated to occur in April 2024, resulting in a reduced block reward of 3.125 BTC.

Past halving events have historically coincided with significant price rallies for Bitcoin and the broader cryptocurrency market.

As the countdown to the next halving event begins, macroeconomic factors have influenced the price of BTC, particularly following its all-time high of $69,000 in 2021.

Analysts and commentators have interpreted recent Bitcoin exchange-traded fund filings by global asset managers BlackRock and Fidelity as a sign of renewed institutional interest in Bitcoin.

These developments continue to shape the cryptocurrency’s trajectory as it moves closer to another crucial halving event.

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Controversial Proposal Sparks Fierce Debate Among Members of Solana-Based Liquidity Network

Crypto News Today/DeFi

A contentious proposal put forward by the team behind Parrot Protocol, a prominent Solana-based liquidity network, has ignited a heated debate among its community members.

Scheduled for voting until July 27, the proposal calls for the redemption of PRT tokens at a fixed rate to determine their liquid treasury value and proposes a transition towards a no-token protocol.

The PRT redemption price has been set at $0.0045 per token. According to data from CryptoRank, the protocol managed to raise over $89 million since its inception in 2021.

However, investors who participated in the initial DEX offering (IDO) and initial exchange offering (IEO) have suffered a current return on investment (ROI) of -89%, indicating significant losses on their investments.

The proposal’s lack of detailed explanations behind the move has raised concerns among community members. While the team claims that “many PRT holders” expressed interest in redeeming their tokens, the rationale for shifting towards a no-token protocol remains ambiguous.

This proposal follows a previous tokenomics update in November 2022, in which the token locking period was significantly reduced from 12 months to just seven days, supposedly to offer stakeholders greater flexibility in managing their positions.

A tweet from @spreekaway on July 21, 2023, criticized the governance decision, stating that the Parrot team intends to allocate $12 million to token holders and retain $60 million for themselves from the remaining $72 million in ICO funds.

Furthermore, there have been allegations that the team unlocked their tokens ahead of schedule, undermining the voting process.

Claims that the team controls 81% of tokens have been contested by Parrot’s team on Twitter. They assert that treasury tokens are not utilized for governance purposes.

According to data provided by CryptoRank, 35% of tokens were allocated as protocol incentives, 20% to the team and angels, 10% through public sales, 20% during seed rounds, and 15% for other purposes.

The proposal’s lack of clarity regarding the fate of unclaimed funds after the eight-week redemption period has added to community concerns.

Some members fear that insiders might cash out the unclaimed funds, which could further exacerbate the situation.

Community members have expressed strong opposition to the proposal, stating that the pro-rata value set for the redemption is unreasonably low and fails to account for alleged misuse of the treasury without community consent.

The premature unlocking of team and VCs vesting tokens has also been cited as a reason to question the legitimacy of the vote, with some members dismissing it as a meaningless exercise and a farce.

As the voting deadline approaches, tensions within the Parrot Protocol community continue to escalate, and the outcome of the proposal remains uncertain.

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Terraform Labs Faces Uphill Battle Amidst Allegations, New CEO Discusses Road Ahead

Crypto News Today/DeFi

Terraform Labs, led by its new interim CEO, Chris Amani, is grappling with significant challenges caused by persistent accusations against former CEO Do Kwon.

Amani highlighted these obstacles during a recent Terra Community Talk on July 20, where he discussed the future challenges for the company.

He expressed concern that the frequent allegations against Kwon, who is currently detained in Montenegro and potentially facing extradition to South Korea or the United States, have disrupted the progress Terra was making.

A major setback occurred on June 19 when Kwon was found guilty of attempting to leave Montenegro using a forged Costa Rican passport.

This led to a four-month prison sentence for Kwon, despite his claim of not being aware of the passport’s forgery.

Amani sympathized with Kwon’s situation and hoped for his name to be cleared so that he could return and contribute to Terra’s projects once again.

Despite the difficulties, Terra is continuing to work on approximately nine projects in various stages of development, set to be released in the coming months.

Amani asserted that these developments would focus on bolstering the utility of Terra’s native token, Terra LUNA.

Amani acknowledged that the cryptocurrency industry is currently facing challenges, and Terra’s rebuilding process would not be easy.

The scarcity of liquidity is one of the hurdles, as decentralized finance applications are competing with attractive risk-free returns.

Additionally, Terra faces competition from other layer 1 blockchain projects, with some boasting substantial treasuries that can lure developers with high salaries.

Despite the controversies surrounding the company, Amani revealed that a considerable number of employees have chosen to remain with Terra.

This loyalty indicates a commitment to weathering the storm and continuing the company’s mission.

In conclusion, Terraform Labs, under the leadership of interim CEO Chris Amani, is facing significant obstacles due to accusations against the former CEO Do Kwon.

However, the company is pushing forward with multiple projects in the pipeline to enhance the utility of its native token, Terra LUNA. While challenges persist in the crypto industry,

Terra remains committed to its vision, with dedicated team members determined to overcome the hurdles ahead.

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2023 Ranking: 4 Best Crypto Projects To Buy

Reviews

With there being thousands of crypto projects to choose from, it can be difficult to determine which are the best to invest in.

To make matters even more complicated and precarious, an alarmingly high percentage of crypto projects end up being abandoned by their developers – or even turn out to be rugpulls.

In this review, we rank the best crypto projects to invest in, as of 2023.

1. Ripple (XRP)

Ripple and XRP are two major concepts in the cryptocurrency sector that are intricately linked yet fundamentally different. Understanding their distinction and the impact they’ve had on the global financial system requires a deeper dive into each of their functionalities.

Ripple is the name of a technology company based in San Francisco, founded in 2012, that focuses on the development of payment and real-time gross settlement system technology.

The primary aim of Ripple is to streamline the process of cross-border transactions, which are typically expensive and time-consuming with traditional banking systems.

The solution Ripple proposes is RippleNet, a global payments network that leverages distributed ledger technology to enable financial institutions to transact with one another directly and in real-time.

RippleNet is designed to be a network of institutional payment providers, such as banks and money services businesses, that use solutions developed by Ripple to provide a seamless experience to send money globally.

Ripple’s most known products include xCurrent and xRapid. xCurrent allows banks to settle cross-border payments with end-to-end tracking, while xRapid uses XRP, Ripple’s digital currency, to enable liquidity for banks and reduce the costs of cross-border transactions.

Which brings us to XRP. XRP is a digital asset and cryptocurrency that was created by Ripple. It plays a dual role as both a cryptocurrency and a technology protocol for facilitating cross-border transactions.

XRP as a cryptocurrency is used primarily as a bridge currency for transferring value between different fiat currencies on the Ripple network.

As of Ripple’s design, a total of 100 billion XRP tokens were created, and no more will be produced. This deflationary nature sets XRP apart from cryptocurrencies like Bitcoin, which are inflationary with new coins being mined over time.

XRP transactions are confirmed by consensus among Ripple’s network members, rather than proof-of-work or proof-of-stake mechanisms, which contributes to its speed.

It’s this feature that allows XRP to process transactions significantly faster and more efficiently than many other cryptocurrencies.

The utility of XRP is best demonstrated in Ripple’s product, xRapid. Financial institutions using xRapid for cross-border payments first convert the currency into XRP, then send the XRP to the receiving institution where it’s converted into the desired currency.

This process reduces the cost and time required for such transactions as it eliminates the need for pre-funded nostro accounts.

However, Ripple and XRP have not been without controversy. Ripple Labs, the company, has faced legal challenges, notably from the Securities and Exchange Commission (SEC) in the United States, which claims that XRP is a security and not a cryptocurrency, thus it should have been registered as such.

This ongoing lawsuit has cast a shadow over XRP, causing some cryptocurrency exchanges to delist it until there’s clarity about its legal status.

Despite the challenges, Ripple and XRP have made a significant impact on the global financial system. Many financial institutions are already using or experimenting with Ripple’s technology to improve their cross-border payment systems.

This is testament to the transformative potential of Ripple’s technology and the utility of XRP as a bridge currency in international transactions.

All things considered, Ripple as a company and XRP as a digital asset have marked a new era in the financial world.

The mission to revolutionize global money transfers by providing an alternative, fast, and low-cost method is the driving force behind Ripple. XRP, as a key component of this mission, provides the liquidity necessary for such a system to operate efficiently.

As the legal battles and the cryptocurrency market evolve, the path ahead for Ripple and XRP will undoubtedly be worth watching. The technology and ideas they represent could shape the future of global finance.

Key Facts:

Market capitalization of $40.5 billion
Circulating supply of 52.5 billion XRP
Current price of $0.7705

2. Chainlink (LINK)

Chainlink is a leading decentralized oracle network that is playing a significant role in the evolution of blockchain technology. It addresses the need for external data in blockchain-based smart contracts and broadens the possible scope of applications within the blockchain sphere.

To understand the value Chainlink brings to the table, it’s necessary to comprehend its core functions and benefits in a blockchain context.

At the heart of Chainlink’s operations is the smart contract. A smart contract is a self-executing contract with the terms of agreement between parties being directly written into lines of code.

It automates transactions without requiring an intermediary, reducing costs and inefficiencies. However, these smart contracts can’t interact with data outside their network. This is where Chainlink comes in.

Chainlink serves as a bridge between smart contracts and the real world. It uses a network of decentralized oracle nodes to collect and verify real-world data before feeding it into a blockchain. Oracles are the agents that find and verify real-world occurrences and submit this information to a blockchain to be used in smart contracts.

The decentralized nature of Chainlink’s network of oracles ensures a high level of security and reliability, reducing the risk of any single point of failure.

Chainlink’s native cryptocurrency, LINK, serves a specific function within this ecosystem. It’s used to pay node operators in the network for their services in retrieving data, converting data into blockchain readable formats, and increasing the reliability of the data.

Additionally, it’s also used as a staking token by the node operators as a form of collateral to ensure reliable, honest service.

Chainlink isn’t just about bringing external data into blockchains; it’s also about ensuring the data’s reliability. Chainlink’s decentralized oracle network incentivizes honest reporting and penalizes dishonest behavior.

If a Chainlink node operator provides inaccurate information, they risk losing their staked LINK tokens. This mechanism ensures the accuracy and reliability of data being fed into the smart contracts, a critical requirement in many industries.

Furthermore, Chainlink’s flexibility makes it blockchain agnostic. This means it can serve multiple blockchains, not just one, making it a universal adapter for all blockchains. This unique feature makes Chainlink an integral part of the blockchain ecosystem, providing vital interoperability functions.

Since its launch in 2017, Chainlink has been embraced by numerous projects in the cryptocurrency space, from DeFi platforms to large-scale enterprise solutions.

Chainlink’s ability to secure and reliably connect smart contracts with high-quality data sources opens up new possibilities for blockchain applications, enhancing their utility and practicality in real-world scenarios.

The scope of Chainlink extends beyond financial applications. It has the potential to impact multiple sectors, including insurance, supply chain, gaming, and more.

For instance, in the insurance industry, a smart contract could automatically pay out claims when a certain event happens, like a flight delay. Chainlink would provide the real-time flight data to the smart contract, enabling this automatic payout to happen.

By serving as a reliable bridge between the blockchain and the real world, Chainlink allows smart contracts to interact with real-world data, opening up endless possibilities for blockchain applications.

Its unique position in the market, combined with its robust decentralized oracle network, has positioned Chainlink as a leading player in the blockchain industry.

With an ever-growing ecosystem of projects utilizing its technology, Chainlink is undoubtedly one of the best crypto projects to invest in, in 2023.

Key Facts:

Market cap of $4.3 billion
Circulating supply of 538 million LINK
Current price of $8.01

3. Cardano (ADA)

Cardano is an open-source, decentralized blockchain platform founded by Ethereum co-founder Charles Hoskinson and developed by the company IOHK. Launched in 2017, Cardano aims to be the world’s financial operating system by establishing decentralized financial products similarly to Ethereum, but with a robust focus on security, scalability, and sustainability.

The platform has garnered attention for its unique layered architecture and its commitment to peer-reviewed scientific research as building blocks for updates and modifications.

Cardano’s architecture consists of two layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL manages the cryptocurrency ADA and handles transactions, while the CCL is responsible for running smart contracts and decentralized applications (dApps).

This layered structure is one of Cardano’s defining features, separating the ledger of account values from the reason why values are moved from one account to the other. This provides more flexibility in the design and execution of smart contracts, enhancing security and performance.

At the heart of Cardano is its native cryptocurrency, ADA, named after Ada Lovelace, a 19th-century mathematician who is recognized as the first computer programmer. ADA is used for staking, transaction fees, and will eventually be used to power smart contracts and dApps on the Cardano platform.

Unlike Ethereum, which uses Proof-of-Work consensus mechanism, Cardano uses a unique Proof-of-Stake algorithm called Ouroboros. Ouroboros aims to be more energy-efficient and democratic than Proof-of-Work.

In Cardano’s Ouroboros, “epoch” time is divided into slots, and slot leaders are chosen randomly from the pool of ADA holders who are staking their coins. These slot leaders validate transactions and add them to the blockchain.

Cardano’s approach to development sets it apart from many other cryptocurrencies. The platform places a heavy emphasis on academic research, with many of its protocols being academically peer-reviewed. This careful, considered approach is designed to ensure the robustness and security of the platform, but it also means that development can be slower than some other cryptocurrencies.

Another key difference is Cardano’s philosophy towards decentralization. It has a strong community governance model where future development and changes to the platform are voted on by the community of ADA holders. This is designed to prevent a split in the community or a “hard fork.”

In terms of real-world use cases, Cardano is exploring a range of applications. These include the creation of verifiable credentials for academic certificates on its blockchain and exploring ways to provide banking services to those in developing countries who lack access to traditional banking infrastructure.

Cardano also aims to make a difference in the decentralized finance (DeFi) sector. With the introduction of smart contracts on its platform, Cardano aims to create secure and scalable DeFi applications that can potentially outperform existing options on networks like Ethereum.

However, like any cryptocurrency, Cardano is not without risks. The platform is still in development, and its ambitious roadmap has several stages yet to be completed. There is always the risk that Cardano’s promises won’t come to fruition or that the platform won’t gain the widespread adoption it aims for.

Key Facts:

Market capitalization of $10.9 billion
Circulating supply of 34.9 billion ADA
Current price of $0.3118

4. Binance Coin (BNB)

Binance Coin, also known as BNB, is the native cryptocurrency of the Binance exchange, one of the world’s largest and most popular cryptocurrency exchanges.

Founded in 2017, Binance and its native coin BNB have been at the forefront of the cryptocurrency industry’s growth and adoption, demonstrating a unique approach to leveraging blockchain technology in the digital finance realm.

BNB was originally launched as an ERC-20 token on the Ethereum blockchain during an Initial Coin Offering (ICO) in July 2017.

The coin was created to raise funds for the development of the Binance exchange. Later, in 2019, Binance launched its own blockchain, Binance Smart Chain (BSC), and moved BNB off the Ethereum network onto BSC.

There are several utilities for BNB in the Binance ecosystem. It can be used to pay for trading fees on the platform, participate in token sales on the Binance Launchpad, and more.

One of the most notable benefits of using BNB is that Binance offers users a significant discount on trading fees if they are paid with the token.

The functionality of BNB extends beyond the Binance exchange. With the launch of Binance Smart Chain, BNB has become instrumental in a range of decentralized applications (dApps). BNB is used for transaction fees on the BSC, much like how Ether is used for transaction fees on Ethereum.

The low fees and high performance of BSC have made it popular among developers and users, which in turn has driven further usage and demand for BNB.

Additionally, BNB is used for staking on the Binance Smart Chain. Staking involves participating in the network by holding and pledging a cryptocurrency in a wallet to support the operations of a blockchain network. This process helps to secure the network and process transactions, and in return, stakers can earn rewards.

Another significant aspect of BNB is the coin burn mechanism, a deflationary action designed to control the number of tokens in circulation and, theoretically, increase the token’s value over time. Binance commits to using 20% of its profits each quarter to buy back and burn BNB until 50% of the total supply (100 million BNB) is destroyed.

BNB has also been embraced by other platforms outside of Binance. It’s often used as a utility token on multiple platforms and services, including loan collateral, payment for transaction fees, and more. This widespread adoption has significantly increased the utility and demand for BNB, contributing to its value growth.

Despite these positives, BNB, like any cryptocurrency, comes with its risks. It’s tied closely to the fortunes of the Binance exchange, meaning any regulatory issues or other significant events impacting Binance could affect BNB. Additionally, the cryptocurrency market’s inherent volatility also applies to BNB.

Key Facts:

Market cap of $37.3 billion
Circulating supply of 153.8 million BNB
Current price of $242.39

Disclaimer: None of the information contained within this article is financial advice.

Report Reveals Alarming Surge in Cryptocurrency Use by ISIS Terrorists

Crypto News Today

TRM Labs, a blockchain intelligence platform, recently released a report drawing attention to the increasing use of cryptocurrency by affiliates of the Islamic State of Iraq and Syria (ISIS) in various Asian countries.

The report, published on July 21, revealed mounting on-chain evidence indicating that pro-ISIS networks in Tajikistan, Indonesia, and Afghanistan have been leveraging cryptocurrency to facilitate their operations.

The majority of transactions involved in these cases were found to be linked to the use of Tether (USDT) on the Tron network.

This finding aligns with a presentation by Tara Annison, former head of technical crypto advisory at Elliptic, who emphasized that Tron and Tether were popular assets for illicit activities, with criminals moving away from Bitcoin in favor of stablecoins due to their deep liquidity and ease of use for laundering funds.

The report shed light on individuals using Indonesian-based exchanges to transfer funds to addresses associated with pro-ISIS fundraising campaigns in Syria.

An astonishing amount of over $517,000 was sent in 2022 from Indonesia to addresses linked to pro-ISIS campaigns in Syria.

These campaigns purportedly claimed that the funds were meant to support and help release ISIS families held in Syrian camps. Interestingly, all transfers were made using USDT on the Tron network in increments of $10,000.

TRM Labs also uncovered an instance in Tajikistan where cryptocurrency was utilized to recruit fighters for ISIS’s affiliate in Afghanistan.

One of the fundraising campaigns, active for more than a year, received approximately $2 million in USDT on the Tron network in 2022.

Through blockchain tracing, TRM Labs identified the flow of funds and alerted the exchange used by the group to cash out their funds, leading to the arrest of a senior ISIS fundraiser, Shamil Hukumatov, by Turkish authorities on June 22.

Additionally, a media unit connected to ISIS’s affiliate in Pakistan began promoting its ability to accept donations in cryptocurrency in the second half of 2022.

TRM Labs identified addresses controlled by the group with a total volume of around $40,000 over the past twelve months.

This report comes after a previous TRM Labs’ report on June 28, which revealed a significant decline in illicit finance volume involving Bitcoin over the last seven years.

While Bitcoin was once the exclusive currency for terrorist financing, by 2022, Tron had taken the lead, being used for 92% of terrorist financing cases.

These findings underscore the need for continued vigilance and regulatory efforts to monitor and address the misuse of cryptocurrencies by criminal and terrorist organizations.

By understanding and tracking these on-chain connections, authorities can take appropriate actions to disrupt illicit activities and safeguard the integrity of the cryptocurrency space.

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Investor Syndicate Set to Acquire Cryptocurrency Media Giant CoinDesk for $125 Million

Crypto News Today

A group of investors is set to gain control of CoinDesk, a prominent media company focused on cryptocurrency.

Led by Matthew Roszak from Tally Capital and Peter Vessenes from Capital6, the investor syndicate aims to finalize the transaction in the upcoming weeks, as reported by The Wall Street Journal (WSJ) on July 20.

Digital Currency Group (DCG), the parent company of CoinDesk, will retain a stake in the media business, events, data, and indexes, valuing the pending deal at approximately $125 million.

DCG had acquired CoinDesk in 2016 for $500,000 but recently faced financial challenges due to the bankruptcy of its lending arm, Genesis Global Capital, along with the closures of its institutional-trading platform Tradeblock and wealth-management unit HQ.

These issues occurred amidst a broader downturn in the crypto industry, marked by successive bankruptcies and a significant drop in token prices last year.

CoinDesk generated $50 million in revenue the previous year, primarily from online advertising, events, and indexes.

Despite its financial success, the company had been exploring the possibility of selling itself earlier in the year.

CoinDesk CEO Kevin Worth revealed that the company had engaged investment bankers from Lazard Ltd. to explore options for a full or partial sale, responding to numerous expressions of interest from potential buyers.

DCG had received unsolicited offers of over $200 million for CoinDesk in the preceding months, according to reports from January.

However, as several high-profile banks in the crypto and tech industries collapsed, DCG faced challenges in securing new bankers for its portfolio companies.

Upon the completion of the deal, CoinDesk’s existing management team is expected to continue leading the company.

This development signifies a significant shift in ownership for the media company and underscores the ongoing volatility and consolidation in the cryptocurrency sector.

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New Law Aims to Shine Light on Corporate Ownership in the US

Crypto News Today

Effective January 1st, 2024, a significant change will take effect for businesses operating in the United States. The Corporate Transparency Act (CTA) now requires both domestic and foreign companies to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This move aims to increase transparency and combat financial crimes such as money laundering and terrorist financing.

Shining a Light on Beneficial Owners

The CTA aims to combat financial crime by identifying the individuals who ultimately control companies. These “beneficial owners” are those who hold at least 25% of the company’s equity or exert substantial control through other means. Prior to the CTA, such information often remained shrouded in secrecy, making it easier for criminals to launder money or finance illicit activities through shell companies.

Reporting Requirements and Deadlines

Companies existing before January 1st, 2024 have a grace period until January 1st, 2025 to submit their initial reports. Newly formed companies have 90 days after registration to comply. The reports require detailed information about the company itself, including its legal and trade names, address, and tax ID number.

For beneficial owners, companies must disclose names, dates of birth, addresses, government-issued ID numbers, and even a photo of the ID. This level of detail aims to create a clear picture of who truly wields power behind the scenes.

Failure to Comply Comes at a Cost

The CTA isn’t without teeth. Individuals who willfully violate the reporting requirements can face hefty fines of up to $500 per day for the duration of the non-compliance. Additionally, criminal penalties including imprisonment and even larger fines are possible. Violations can include failing to file a report altogether, submitting false information, or neglecting to update information when ownership structures change.

Keeping Up-to-Date Crucial

Companies are also responsible for updating their reports within 30 days of any major changes to their ownership structure or company information. This ensures FinCEN maintains an accurate and up-to-date database of beneficial owners.

Transparency: A Step Towards Financial Security

The Corporate Transparency Act represents a significant step forward in the fight against financial crime. By shedding light on the true owners of companies, law enforcement will have a more powerful tool to identify and disrupt criminal activities. Businesses that operate legally have nothing to fear, and the benefits of increased transparency can help foster trust and stability within the American financial system.

To provide further insights into this change, we consulted Claudemir Ramos, a widely recognized accountant specializing in both Brazilian and American regulations. As the Owner and Founder of CR Accounting & Consulting LLC, Claudemir is a renowned professional within the field who provides insights from current tax law. Regarding this matter, he states:

“As specified in the Corporate Transparency Law, a person who willfully violates the BOI’s reporting requirements may be subject to civil penalties of up to US$ 500 for each day the violation persists. That person may also be subject to criminal sanctions of up to two years in prison and a fine of up to US$ 10,000. Possible violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.”

When investigating financial crimes, law enforcement often needs to trace the flow of money. The CTA provides a valuable tool for investigators by allowing them to quickly identify the beneficial owners of companies involved in suspicious transactions. This can lead to faster and more effective investigations, ultimately helping to recover stolen funds and hold criminals accountable.

According to the specialist Claudemir Ramos:

“By requiring disclosure of beneficial owners, the goal of the CTA is to make it more difficult to hide behind layers of bureaucracy. Law enforcement will have a clearer picture of who is truly behind a company, making it easier to identify and investigate suspicious activity.”

It’s important to note that the CTA is just one piece of the puzzle in combating financial crimes. Other regulations and law enforcement efforts are still needed. However, by increasing transparency in corporate ownership, the CTA provides a valuable tool for law enforcement and can significantly hinder the ability of criminals to operate in the shadows.

For more information on Beneficial Ownership Reporting and how to comply with the CTA, visit the FinCEN website at https://boiefiling.fincen.gov/.