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Vitalik Buterin Fires Warning About Bitcoin’s Future

Bitcoin’s recent price drop to $30,098 has sparked discussions about the future of the cryptocurrency and the direction of its development.

Vitalik Buterin, co-founder of Ethereum, believes that the rise of projects like Ordinals signals the resurgence of a builder culture in the Bitcoin network.

In a Twitter Space conversation with Bitcoin proponents Eric Wall and Udi Wertheimer, Buterin praised Ordinals and its BRC-20 token standard as a rejection of the stagnant politics within the Bitcoin ecosystem.

According to Buterin, Ordinals are reintroducing a culture of action and pushing back against the laser-eye movement, which he views as positive progress.

The main focus of the two-hour-long conversation revolved around scalability.

Wall expressed concerns about Bitcoin’s Lightning Network, stating that it struggles to scale for future users and frequently fails when processing medium-sized payments.

Buterin proposed that a solution would be to implement various layer-2 solutions and find ways to enhance the efficiency of the Bitcoin base layer.

He emphasized the importance of rollups and ZK-snark-based scaling solutions.

Wertheimer added that zero-knowledge rollups could potentially enable smart contracts on Bitcoin, creating a new execution environment.

However, proponents of the Ordinals project, such as Wall and Wertheimer, face criticism from traditional Bitcoin advocates.

Some argue that introducing NFTs and smart contracts on Bitcoin dilutes its primary function as a peer-to-peer cash network.

Samson Mow, CEO of Jan3, believes that Ordinals waste valuable block space that should be allocated to Bitcoin payments.

Wall responded to these criticisms by suggesting that Bitcoin could serve as a proof system for zero-knowledge proofs, avoiding network congestion.

He expressed the desire to utilize the Bitcoin base layer as a judge or arbiter of computations, rather than running them on-chain.

Wall urged the community to consider second layers as a means of achieving expressive capabilities, not just facilitating payments.

The discussion sparked controversy within the Bitcoin community, with Wertheimer criticizing Samson Mow and Adam Beck, CEO of Blockstream, for dismissing the conversation with Buterin.

The clash of opinions highlights the ongoing debate about the future of Bitcoin’s development and the potential for increased functionality within its network.

As Bitcoin enters this new era of development, it remains to be seen how the community will navigate these conflicting perspectives and shape the future of the world’s largest cryptocurrency.

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Mysterious $160 Million Bitcoin Transfer Raises Questions Surrounding Luna Foundation Guard

Crypto News Today/DeFi

In a recent development, an unknown entity has executed a significant Bitcoin transfer, worth over $160 million, from a wallet connected to the Luna Foundation Guard (LFG).

This organization is associated with Terraform Labs and its co-founder, Do Kwon.

On July 3, the unidentified party moved 5,292 Bitcoin (BTC), equivalent to approximately $30,719 per coin, from an LFG address to a wallet that does not appear to be linked to Terra.

At the time of this report, the total value of the transferred cryptocurrency amounted to roughly $161 million.

This transfer is part of a series of movements of crypto assets from LFG-controlled wallets, which have been occurring since the collapse of Terra in May 2022.

Analysis of blockchain data reveals that the reported LFG wallet held about 6,983 BTC in October 2022, with several transactions dispersing funds to different addresses over the past nine months.

As of now, the wallet contains a balance of 0.152427 BTC, valued at approximately $4,649.

While South Korean news outlets have claimed that the sender’s wallet address is associated with LFG, this assertion has not been independently verified by Cointelegraph.

It is important to note that the Luna Foundation Guard was established to mitigate the volatility of LUNA tokens by supporting the project with TerraUSD.

Unfortunately, this approach ultimately proved unsuccessful.

The exact amount of digital assets moved by Kwon or other individuals associated with Terra during its collapse remains unclear.

In February, the United States Securities and Exchange Commission reported that Kwon and Terra were involved in laundering over $100 million worth of BTC.

Additionally, South Korean prosecutors identified more than $314 million in crypto assets connected to Kwon and his associates, some of which were subsequently frozen.

After evading authorities for several months following Terra’s collapse, Kwon was arrested in Montenegro in March for allegedly using counterfeit travel documents.

In June, he and former Terra chief financial officer Han Chong-joon were sentenced to four months in prison.

This recent Bitcoin transfer from an LFG-controlled wallet further adds to the complexity and ongoing investigations surrounding Terra and its affiliated entities.

The implications of these movements and the future of the individuals involved remain uncertain as legal proceedings continue.

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US Military Tests Generative Artificial Intelligence

Crypto News Today

The United States military is embarking on a series of tests to explore the potential of generative artificial intelligence (AI) in aiding the planning of responses to global conflicts and enhancing access to internal information.

According to a recent report by Bloomberg on July 6, the U.S. Department of Defense, along with undisclosed allies, is conducting experiments involving five large language models (LLMs) in collaboration with the Pentagon’s digital and AI office.

Although the specific LLMs being tested remain undisclosed, AI startup Scale AI has revealed that its “Donovan” model is among the five under examination.

Air Force Colonel Matthew Strohmeyer shared with Bloomberg that an initial test utilizing an LLM proved to be “highly successful” and “very fast,” indicating the potential for this technology.

However, Strohmeyer acknowledged that it is not yet ready for widespread implementation.

One notable test described by Strohmeyer involved an AI model generating a request for information in a mere 10 minutes, an unprecedented speed considering such requests traditionally take days and involve multiple personnel.

These LLMs have already been provided with classified operational data to generate responses for real-world scenarios.

The objective of the tests is to ascertain whether these models can effectively contribute to the planning of responses in the face of potential escalations, particularly concerning the already tense military situation with China.

While the current round of tests is scheduled to conclude on July 26, the U.S. military has been researching the potential applications of AI in warfare for some time.

In May, the Defence Science and Technology Laboratory of the United Kingdom hosted a joint trial involving the U.S. and Australia, focusing on AI-enabled military drones for target tracking.

The trial achieved significant milestones, including the real-time retraining of AI models during flight and the interchangeability of models among participating entities.

The agency expressed its commitment to swiftly integrating these technologies into military capabilities, signaling the growing interest and investment in AI within the defense sector.

As the U.S. military continues to explore the possibilities offered by generative AI, these tests mark an important step in leveraging advanced technologies to enhance operational efficiency and decision-making processes.

While challenges and limitations persist, the promising results thus far demonstrate the potential for AI to revolutionize the field of defense and security.

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After-Theft Protection: How Do You Recover Stolen USDT?

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Losing cryptocurrency to a theft is a “bad day”, but how can you recover stolen USDT tokens? Is it possible to prevent stolen USDT from being sold by the attackers? What are the chances to return the stolen USDT? This article has every question answered.

Table of Contents:

How common is USDT theft?
How can USTD be stolen from me?
How to prevent stolen USDT from being sold?
What will happen when the stolen USDT is blocked?
What are the chances to recover the stolen USDT?
How to recover a stolen USDT?

How common is USDT theft?

USDT is one of the most popular stablecoins, accounting for 83B$ of cryptocurrency market share, and one of the favored targets among cybercriminals. There are two different types of USDT theft — targeted and part of the bigger attack.

USDT theft can be a part of a bigger attack. For example, Atomic Wallet hack in June of 2023 caused victims to suffer almost $40M in total losses. According to Atomic Wallet officials, attackers managed to exploit a security vulnerability, which affects «less than 0.1%» of the 5 million users, giving a rough estimate of 35,000 to 50,000 victims. Open source investigation revealed more data of the case, with total losses surpassing $35M USDT, five top wallets losing $17M and one major victim of the hack suffering loss of $9M in USDT.

USDT can be blocked even after theft. During the FTX hack in November of 2022, attackers used USDT tokens as one of the ways to withdraw funds from the platform and drain victim’s accounts. After the attack was confirmed by FTX officials, Tether Foundation proactively blacklisted $31,4M worth of USDT. Open data investigation revealed that blacklisted tokens consisted of USDT on Avalanche with $3,8M and $28M USDT on Solana.

How to prevent stolen USDT from being sold?

Tether Foundation implemented measures to control the USDT token. For example, stolen USDT tokens may be marked as fraudulent, frozen inside the attacker’s wallet to prevent further use or blacklisted. USDT wallet, involved with the crime operation, can be banned by the trading and exchange network, resulting in formal seizure of funds due to withdrawal lock for such accounts. But all of this — with a time delay of 1 to 5 business days.

Let’s break down a real world scenario of a targeted USDT attack. Details of such cases are not for the public eye, but here’s how they look at the investigative part of things. On the screenshot below you can note how the victim transferred $110k in USDT, which was then split and cashed out at the SunSwap V1 protocol by the attacker.

Victim of USDT theft turned too late // Source: StarCompliance.io

Step by step breakdown of the USDT attack.

Victim transfers money to a courier wallet, which then instantly sends them towards a hoarding wallet.
One by one, the attacker splits funds into small payments in order to mask the whole sum and send them to the nearest exchange point without KYC — the SunSwap V1.
Because USDT was unmarked, the SunSwap V1 protocol accepted tokens as legitimate and allowed the exchange;

Both parties had exactly 12 hours to react. Given the USDT would be labeled as «Stolen» right away, the attacker’s would fail to sell the tokens and become reported by SunSwap V1 as «High Risk».

Hiring a dedicated team of professionals. Certified investigators will take care of tracing & marking for you. Dedicated team of lawyers will prepare an evidential basis to open a case in court, block USDT even on a cold wallet and help you recover the lost funds.

However, you can always try to do it yourself. Here are the 5 solutions used by professionals to prevent the sale of stolen USDT:

Marking the stolen USDT. By utilizing the network of certified investigators, coins are labeled as «Stolen»», which in turn makes them useless for the attacker. Marked coins are accepted by all major trading platforms only to be seized and transferred to the rightful owner;
Exposing the attacker’s addresses to the scam network. Each of the addresses used by the attacker to transfer, exchange, keep and deposit stolen USDT are exposed and labeled as «High Risk». Labeled wallets are much harder to cash out from, paralyzing or damaging the attacker’s web of addresses;
Labeling other attacker’s wallets. After the USDT deposit address of the attacker is known and exposed, it is possible to involve his other wallets with the case. By doing so, wallets involved with transfer of the funds from blacklisted addresses would be marked as «High Risk» by Chainalysis, DataWalk, Coinfirm and other investigative databases used by CEX’es to evaluate risks.
Blacklisting the USDT tokens on purpose. One of the possible options is to blacklist the stolen USDT. Tether Foundation is obliged to block stolen tokens once the fact of their theft is proven, whether in court or by third-party expert investigation;
Maintaining Wallet Paralysis. Filing a valid criminal case against the attacker’s USDT deposit address is a sure way to paralyze it. When a case is filled, such a wallet becomes «toxic» for the attacker’s transaction schemes, giving a reason to block the recipient’s wallets too and labeling every future transaction as «Risky».

What will happen when the stolen USDT is blocked?

Blocking the USDT will cause a domino effect. You see, to control the risks behind flow of funds, such platforms as Binance, OKX or Kraken utilize both — shared and private risk analysis networks. Shared risk analysis network is based on the blockchain itself, with every transaction and wallet being analyzed for AML risks. Private networks are shared only during AML investigation procedures by certified experts.

Every major CEX runs a blacklist of sorts, where records of all the fraudulent users are kept. These databases are shared between different platforms to ensure the highest level of user safety, and can be accessed by third-party experts during investigation. However, it is possible to warn 200+ platforms in under 1 hour about USDT theft by utilizing tools such as Chainalysis Reactor, DataWalk and Confirm software. Moreover, certified Chainalysis partners are able to mark fraudulent transactions as part of their services.

What will happen to the thief for holding marked USDT?

Here’s a non-exhaustive list of events, which are triggered by holding a marked USDT tokens:

Wallet addresses exposure to the law authorities, cyberpolice departments around the world, as well, as major trading platforms. Once exposed, the address is labeled as «Suspicious», along with tokens and transactions involved;
Related addresses are being suspected. Every wallet, connected to one hiding the stolen USDT, is then labeled as «partner in crime». From there every attempt at withdrawal of funds or their transfer will result in uncovering the web of wallets used for an attack;
Transactions are being blocked. Holding stolen USDT is a hard choice, because once the fact of theft is established, tokens become not-transferable, even on cold wallets;
Wallet Ban. Holding or transferring stolen USDT after they have been marked is a sure way to become blocked by the Tether Foundation. Moreover, involved wallets may become banned too, once such a relationship is confirmed or known.
Exchange and trading ban. By holding stolen USDT, obtained through any of the trading platforms, it is possible to force a permanent identity ban for the perpetrator.
Identity exposure. During Crypto Investigation, real life data of the thief are being passed to law authorities and cyberpolice departments around the world.
Severe charges. Taking away USDT without the consent of their owner, hiding and holding stolen funds, involving different people in the operation — every step of the USDT theft is one step closer to the criminal court and AML charges.

What are the chances to recover the stolen USDT?

Here’s a 10 years of fund recovery summarized in a brief checklist:

Valid owners of the USDT have the most chances. Once the fact of the ownership is established, the USDT holder has every right to return his stolen funds through the legal means;
Speed and evidential basis are the two crucial factors. Gather chat logs, e-mail data or any other correspondence with the attackers. The faster you are able to do this, the more chances you have.
Following a hot trail yourself isn’t always an easy win. Civil investigations, such as the case of searching for an address owner by yourself, are useful to gather evidence, but not always valid enough to launch a lawsuit;
Providing Proof Of Funds will help. First and foremost — you need to have a legal basis for further actions. Having evidential documents on obtaining the USDT is a good way to do this.

How to recover a stolen USDT?

You can try doing it yourself by contacting Tether Foundation with an official token marking request, proceed with evidential basis and expect an answer from an organization whose main concern is how to handle $83B token. To do this, you need to find an AML lawyer, submit a case to the police and wait for the investigation results to provide an evidential basis for Tether Foundation. On top of that, you also need a court decision on theft of the USDT tokens.

Or you can contact StarCompliance.io and get help from a certified Chainalysis partner with over 90 successful cases of fund recovery totaling over $25,000,000 in financial damages restored to the victims.

How are USDT theft cases handled by StarCompliance.io during Crypto Investigation service?

Victim applies for Crypto Investigation service. You need to specify details of the case, stolen currency and provide contact data.

Funds are traced. Investigators carefully document incoming and outcoming transactions, unweaving the web of attacker’s wallets and tracing the flow of funds. From there, funds are located and chronology of the theft is being validated by third-party experts;
Tether Foundation is warned. After the fact of theft is established, Tether foundation receives a priority request on token freeze, making stolen USDT worthless for the perpetrator;
Address owner is exposed. By knowing the addresses used by the attacker, it is possible to identify them by performing KYC-investigation in relevant databases.
Law is enforced. By establishing an attacker’s DOB, legal name and address of residence, certified AML lawyers open a case in their court of residence;
Funds are blocked and ready for recovery. With enough evidential basis, such cases are resolved with court decision on refund, compensation of financial damages or seizure of theft’s property to cover the victim’s damages.

Reach us out at StarCompliance.io to get the following services:

Warn 200+ platforms in under 1 hour about USDT theft.
Stolen USDT Tracing, Markup & Blocking On Demand;
Stolen USDT Recovery Services with Full Legal Support.

Begin your USDT recovery with StarCompliance.io today and save money for bigger goals.

Coinbase, Binance and Gemini have least happy employees

Crypto News Today/DeFi

A recent analysis of employee reviews on Glassdoor has revealed that crypto exchanges such as Gemini, Binance, and Coinbase have some of the least happy employees in the industry.

The data, collected by tech recruitment firm TrueUp, compared employee happiness to company growth and placed 27 of the most valuable cryptocurrency firms on a quadrant chart.

According to the chart, Celsius, a defunct crypto lender, along with Gemini and Amber Group, both crypto exchanges, had the least happy employees based on the reviews of 80, 139, and 42 individuals, respectively.

Binance and Coinbase also appeared on the less happy side of the chart, with a total of 1,257 reviews on Glassdoor.

Although Glassdoor does not have a specific happiness metric, it assesses whether reviewers would recommend the company to a friend, approve of the CEO they worked under, and have a positive outlook for the company.

Binance, when questioned about the negative reviews, attributed them to the demanding and fast-paced work environment that the company seeks to maintain.

They stated that not all employees are cut out for such an environment and acknowledged the importance of negative feedback in addressing issues and improving the employee experience.

It is worth noting that Glassdoor reviews are user-submitted and subject to a moderation process, which raises concerns about the reliability of the data.

Some recruiters have previously questioned the legitimacy of Glassdoor reviews, suggesting that they can be easily manipulated or falsified.

However, Glassdoor maintains that each review goes through a moderation process before being published on the website.

Neil Dundon, founder of Crypto Recruit, expressed his view that employees involved in building blockchain infrastructure tend to be more satisfied than those working at exchanges.

He suggested that employees in speculative/exchange environments may feel less fulfilled compared to those working on infrastructure projects, as the latter group may have a stronger sense of purpose.

Dundon also noted that the industry-wide layoffs that occurred over the past year likely influenced the job satisfaction levels.

He mentioned that the general insecurity among employees caused by these layoffs makes it difficult for them to feel happy in their roles.

However, he believes that the worst may be behind crypto employees now.

On a positive note, the TrueUp chart indicated that the “happiest” workers in the industry were associated with Ava Labs, Blockchain.com, and Fireblocks. Glassdoor data also revealed that Alex Mashinsky, the founder and former CEO of Celsius, received low approval ratings from past and present employees.

While Brian Armstrong of Coinbase and Changpeng Zhao (CZ) of Binance had lower-than-average approval ratings among technology-based CEOs.

In summary, the analysis of employee reviews on Glassdoor suggests that certain crypto exchanges have less satisfied employees compared to others in the industry.

However, the reliability of the data and the potential impact of recent layoffs should be considered when interpreting the results.

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Larry Fink Advocates for Crypto, Fuels Hopes for Bitcoin ETF Amid Regulatory Uncertainty

Bitcoin/Crypto News Today

Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, recently vocalized his support for cryptocurrencies during an interview on Fox Business.

This comes as BlackRock applies to list a Bitcoin exchange-traded fund (ETF) in the U.S, a move that could revolutionize finance by providing an accessible investment tool linked directly to Bitcoin.

In the interview, Fink characterized cryptocurrency’s role as essentially “digitizing gold”, implying that it could serve as an alternative investment asset that isn’t tied to any specific currency.

He suggested that Bitcoin could provide investors with a way to protect against inflation and currency devaluation, signaling an international asset appeal.

Fink’s commentary on the crypto landscape has been consistent. He has weighed in on various important occurrences within the sector, such as the FTX downfall in 2022 and the growing intrigue surrounding Bitcoin.

Given BlackRock’s influence, with over $9 trillion in assets under management as of April, Fink’s pro-crypto statements could trigger substantial impacts both within and outside the cryptocurrency domain.

Crypto enthusiasts online have reacted favorably to Fink’s pro-Bitcoin commentary, with some predicting a potential surge in certain asset prices, referred to as the “Fink Pump”.

At the time of the interview, Bitcoin’s price stood at $30,473, a slight 1% decline from the previous 24 hours.

It’s worth noting that under Fink’s leadership, BlackRock has pursued the launch of a Bitcoin ETF, with crypto giant Coinbase as a surveillance partner.

However, the outcome remains uncertain as the U.S Securities and Exchange Commission has previously rejected all spot Bitcoin ETF applications.

Fink’s positive stance on crypto could potentially tip the scales in favor of such advancements, marking a milestone for cryptocurrency integration into traditional finance.

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Bitcoin Miners Reap $184 Million in Transaction Fees During Q2 2023

Bitcoin/Crypto News Today/DeFi

Bitcoin miners experienced a significant boost in earnings during the second quarter of 2023, as transaction fees reached a staggering $184 million.

This figure surpasses the total transaction fee earnings for the entire year of 2022, showcasing the remarkable growth in profitability.

The latest data from cryptocurrency analytics platform Coin Metrics reveals that this represents a remarkable increase of over 270% from the first quarter of 2023.

Moreover, it marks the first time since the second quarter of 2021 that quarterly transaction fees have exceeded $100 million.

This surge in fees can be attributed to two key factors. Firstly, Bitcoin’s price surge played a crucial role in bolstering top-line revenues.

Additionally, the introduction of BRC-20, a new token standard on the Bitcoin network, has expanded the possibilities for various use cases and accelerated the scalability of the network through the Lightning Network.

It is important to note that transaction fees accounted for only 7.7% of the total $2.4 billion earned by miners throughout the quarter.

The majority of their earnings still came from Bitcoin block rewards, which currently stand at 6.25 BTC per solved block.

However, this reward is set to decrease to 3.125 BTC following the network’s anticipated halving in May 2024.

Beyond their substantial earnings, Bitcoin miners had additional reasons to celebrate in Q2.

The blocking of the proposed Digital Asset Mining Energy tax by the Biden administration was a notable win for the mining industry.

Additionally, U.S.-based miners benefited from favorable macroeconomic conditions, leading to lower electricity prices due to receding inflation pressures.

Despite these positive developments, the mining fee market has become increasingly competitive as Bitcoin’s hash rate continues to reach new all-time highs.

Coin Metrics reports that the network’s efficiency has improved with the adoption of advanced ASICs like the S19 XP.

The fierce competition underscores the evolving landscape of Bitcoin mining and highlights the need for miners to stay ahead in this rapidly changing environment.

In conclusion, Bitcoin miners enjoyed a highly profitable second quarter of 2023, with transaction fees soaring to $184 million.

This milestone reflects the substantial growth in Bitcoin’s value and the emergence of new token standards.

However, miners must remain vigilant as competition intensifies, and they face the challenges of future halvings and a dynamic mining industry.

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Trader’s Aggressive Bet Against Ethereum Results in Massive Losses

Crypto News Today/DeFi

A trader’s substantial gamble against Ethereum has resulted in a significant loss of a large portion of his $2 million margin. This development is particularly concerning considering the steady and consistent increase in ETH prices observed in recent weeks.

Screenshots shared on Reddit on July 3 shed light on a trader’s aggressive “shorting” of Ethereum using high leverage on the GMX platform.

GMX is a popular decentralized finance (DeFi) protocol that enables users to trade perpetual futures contracts, including those tied to ETH, with leverage of up to 50x.

Despite enduring substantial losses due to forced liquidation of their short positions, the trader remains undeterred and continues to persistently engage in high-leverage shorting without apparent concern.

Since mid-June 2023, Ethereum prices have experienced a notable rise, surging by 20% based on current rates. The coin is presently trading at around $1,945, floating above previous liquidation thresholds that were approximately $1,900.

While spot rates have not witnessed further upward momentum from buyers, the bulls still maintain control.

The immediate resistance level remains at the psychological price point of $2,000, in addition to the April 2023 highs at $2,100.

Ethereum’s upward trajectory has been fueled by fundamental activities and growing confidence within the broader cryptocurrency community.

The price correlation between Bitcoin and Ethereum, both denominated in USD, has likely benefited Ethereum bulls during this rally.

The United States Securities and Exchange Commission (SEC) recently made statements alleging that certain native currencies associated with Ethereum’s competitors, including Algorand, Cardano, and Solana, may be unregistered securities.

This development has potentially acted as a tailwind for Ethereum, solidifying its position as a leading smart contracts platform.

The SEC, led by Chair Gary Gensler, has refrained from definitively classifying the status of ETH.

Depending on the agency’s eventual classification, any clarification could either bolster prices or trigger a sell-off.

Despite Ethereum’s consistent rise over the past two weeks, records indicate that the trader began shorting ETH when it was priced around $1,700, persisting until current spot rates.

Notably, the trader intensified their aggressive short positions starting from June 26.

The trader opened two positions in total: one with a leverage of 19x for $12 million and another with a leverage of 7x for $1 million.

As prices continued to climb, the $12 million collateral for the 19x leverage position was closed. However, this did not deter the trader from opening yet another short position, this time with a stop set at $1,999 and leverage of 30x.

The future trajectory of ETH prices remains uncertain. However, it is evident that the coin’s price has remained firm, defying the sellers who were active from mid-April to the first half of June.

Moving forward, the critical price points of $2,000 and $2,100 will likely play a significant role in shaping ETH’s trajectory in the latter half of 2023.

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CFTC Investigators Find Celsius & Former CEO in Violation of US Regulations

Crypto News Today/DeFi

Bankrupt crypto lender Celsius and its former CEO, Alex Mashinsky, have been found to have violated multiple United States regulations by investigators from the Commodity Futures Trading Commission (CFTC).

This revelation comes in the wake of the company’s collapse in 2022.

According to Bloomberg’s report on July 5, citing individuals familiar with the matter, the CFTC’s enforcement division attorneys discovered that Celsius engaged in misleading practices towards investors and failed to register with the regulatory body.

Additionally, Alex Mashinsky was found to have broken several regulations.

Should the majority of the CFTC commissioners concur with the investigators’ findings, the agency may initiate legal action against the defunct crypto lender in U.S. federal court as early as this month, as per insider sources.

The CFTC investigators’ conclusions contribute to the growing list of regulatory actions taken against the now-defunct crypto lending platform.

On January 5, the New York Attorney General sued Mashinsky, accusing him of deceiving investors and causing substantial financial losses.

On June 16, 2022, securities regulators from five U.S. states launched an investigation into Celsius just three days after the sudden suspension of user withdrawals on June 13.

Court filings indicate that the Securities and Exchange Commission (SEC) and federal prosecutors from Manhattan have also commenced inquiries into the company.

However, Bloomberg highlights that both the SEC and the U.S. Attorney’s Office for the Southern District of New York have refrained from commenting on the investigations’ progress.

Cointelegraph reached out to both the CFTC and Alex Mashinsky for a response but did not receive any communication at the time of writing.

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UK Lawmakers Pushing Law to Help Police Fight Crypto Crime

Crypto News Today

Lawmakers in the upper house of the U.K. Parliament are pushing ahead with legislation that aims to enhance authorities’ ability to target cryptocurrencies involved in illicit activities.

During a meeting held on July 4, members of the U.K. Parliament’s House of Lords conducted a third reading of the Economic Crime and Corporate Transparency Bill.

This bill, introduced in September 2022, seeks to empower law enforcement agencies in their efforts to combat financial crimes associated with cryptocurrencies.

Notably, no significant proposals relating to crypto enforcement were put forward during the recent reading, with suggested amendments being described as minor adjustments.

A version of the bill dated June 27 contained provisions that amended existing frameworks to grant authorities more flexibility in seizing and recovering crypto assets.

Furthermore, the legislation clarified the government’s jurisdiction over digital assets intended for terrorism or other related purposes. Before the bill can be enacted through royal assent, U.K. lawmakers will carefully consider all proposed amendments.

In March, the U.K. government announced its plans to implement robust regulations for cryptocurrencies as part of its economic crime plan spanning 2023 to 2026.

Lawmakers expressed their intention to pass the Economic Crime and Corporate Transparency Bill by the fourth quarter of 2023 and collaborate with various agencies to enforce the Financial Action Task Force’s Travel Rule.

Furthermore, on June 19, the House of Lords conducted a third reading of the Financial Services and Markets Bill, which was signed into law on June 29.

The primary objective of this legislation is to facilitate the adoption of crypto assets within the country, demonstrating the U.K.’s commitment to fostering an environment conducive to the growth and integration of digital currencies.

Overall, the U.K. Parliament’s efforts to enact legislation for the regulation of cryptocurrencies and combat financial crimes associated with them demonstrate a proactive approach to ensuring the integrity and security of the financial system.

By streamlining enforcement authorities’ powers and providing clearer guidelines, the U.K. is taking significant steps toward safeguarding against illicit use of cryptocurrencies while encouraging the responsible adoption of digital assets.

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