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Feb 03 2023

The Number of Crypto-Related Enforcement Actions in the United States Grows

According to a study that was just recently released by Solidus Labs, a company that specialises in blockchain risk monitoring, the number of enforcement actions in the United States that were associated to cryptocurrencies had a significant increase in 2022. This was reported by the company in a study that was just recently published. The data shown here was collected from a poll that was carried out in the year 2022. It has been alleged that the corporation notified them of this. The findings of the investigation made this point quite clear. Both state and federal agencies are now in the process of establishing new standards and guidelines for themselves to use as points of reference for the way in which they carry out their respective law enforcement responsibilities.

In the year 2022, each of the four primary federal agencies in the United States that were active in crypto enforcement carried out 58 distinct actions. These actions were taken in response to various cryptographic crimes. These measures included things like warnings, arrests, and property confiscation. A total of 2,048 unique crypto criminals were hunted down as a result of these security measures. This number increased by a staggering 65 percent when compared to the previous record high of 38 activities, which was witnessed in 2021. In addition to this, it eclipsed the previous record high, which had been held by the number of activities recorded in the year 2020, which was 40. This new record broke the old record. In addition, this number is higher than the previous record high of 38 acts, which was accomplished in the year 2021.

The agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Office of Foreign Assets Control (OFAC), all broke their previous records, with the exception of the Financial Crimes Enforcement Network (FinCEN), which only took one action in 2022, compared to four actions in other years since 2013, when it was the only agency that took action. Other than that, the agencies all broke their previous records.

The Number of Crypto-Related Enforcement Actions in the United States Grows Republished from Source https://blockchain.news/news/the-number-of-crypto-related-enforcement-actions-in-the-united-states-grows via https://blockchain.news/RSS/

Feb 03 2023

Just four men controlled 86% of stablecoin issuer Tether Holdings Limited

According to data obtained by The Wall Street Journal in connection with investigations being carried out by authorities in the United States, as of the year 2018, only four people owned 86% of the stablecoin issuer Tether Holdings Limited. These investigations are being carried out by authorities in the United States.

The previously unknown ownership structure of Tether Holdings was disclosed in 2021 as a consequence of investigations that were carried out by the office of the New York Attorney General in conjunction with the Commodity Futures Trading Commission. According to CoinMarketCap, the company is the issuer of Tether (USDT), which is the largest stablecoin in circulation with 68 billion dollars’ worth of it now in circulation. This information was obtained from the website.

According to the documents, Giancarlo Devasini, a former cosmetic surgeon, and Brock Pierce, a former child actor who is now a cryptocurrency entrepreneur, worked together to create Tether. Brock Pierce is now a businessman in the cryptocurrency industry. In September of 2014, the British Virgin Islands served as the location for the formal launch of Tether Holdings as a limited liability corporation.

After another four years, Pierce had already left the company, and at that time, Devasini had around 43% of the company’s shares of Tether. Additionally, Devasini was essential in the founding of the cryptocurrency trading platform Bitfinex, where he now works as the chief financial officer. Devasini’s contributions to the construction of this platform may be seen here. According to the available evidence, both Jean-Louis van Der Velde, the Chief Executive Officer of Bitfinex, and Stuart Hoegner, the Chief Counsel of Bitfinex, held around 15% of Tether in 2018.

The dual citizen identified as Christopher Harborne in the United Kingdom and Chakrit Sakunkrit in Thailand owns 13% of Tether as of the end of 2018, making him the fourth-largest investor in the firm. Christopher Harborne is known as Chakrit Sakunkrit in Thailand.

According to the findings of the inquiry, four individuals held close to 86 percent of Tether, either via their own personal assets or through another company that was connected to them.

Just four men controlled 86% of stablecoin issuer Tether Holdings Limited Republished from Source https://blockchain.news/news/just-four-men-controlled-86%25-of-stablecoin-issuer-tether-holdings-limited via https://blockchain.news/RSS/

Feb 03 2023

Billionaire investor Ray Dalio has described fiat currency as being in serious jeopardy

Ray Dalio, a billionaire investor, has said that fiat money is under “jeopardy” as an effective store of wealth, but he does not think that Bitcoin (BTC) and stablecoins will be the answer to the problem.

On February 2, the founder of the hedge fund firm Bridgewater Associates appeared on CNBC’s Squawk Box to discuss his concerns regarding the “effective money” status of the United States dollar and other reserve currencies as a result of the massive amount of money that has been printed using these currencies.

“We live in a world where the form of money that we are used to is under peril. We are creating too much money, and it’s not just the United States doing it; it’s all of the reserve currencies.”

Nevertheless, Dalio was quick to add his opinion on whether Bitcoin was a viable answer to the problem, noting that despite everything it has done in “12 years,” it is still too unpredictable to function as money:

“This is not going to be a productive use of money. It does not function very well as a means of storing riches. “He claimed that it is not a viable medium of trade since it is not efficient.

Stablecoins, which are replicas of state-backed fiat currency, were another kind of cryptocurrency that he thought was ineffective as a form of money.

Instead, Dalio recommended the introduction of a “inflation-linked currency,” which would help customers preserve their purchasing power in the face of rising prices.

“The item that comes the closest to that is something called an inflation index bond,” he said. “However, if you developed a coin that says OK, this is purchasing power that I know I can save in and put my money in over a period of time and trade in everywhere, I believe that would be a terrific coin.”

“Therefore, I believe that you are going to witness the creation of currencies that you have not seen before and that most likely will end up becoming coins that are both beautiful and viable. He continued by saying, “I don’t believe Bitcoin is the answer.”

On the other hand, Dalio’s assessment of Bitcoin and the practicality of an inflation-linked currency did not get widespread support from the financial community.

Billionaire investor Ray Dalio has described fiat currency as being in serious jeopardy Republished from Source https://blockchain.news/news/billionaire-investor-ray-dalio-has-described-fiat-currency-as-being-in-serious-jeopardy via https://blockchain.news/RSS/

Feb 03 2023

Indonesia’s Ministry of Trade is reportedly aiming to roll out a national crypto exchange

It has been claimed that Indonesia’s Ministry of Trade is planning to launch a national cryptocurrency exchange by June of this year. This would be six months later than the ministry’s prior goal date of December 2022.

At the beginning of Crypto Literacy Month on February 2 in Jakarta, Trade Minister Zulkifli Hasan announced the new target launch date and noted that the government is currently reviewing which companies meet their criteria to become a part of the exchange. According to local reports, the government is reviewing which companies meet their criteria to become a part of the exchange.

According to Zulkifli, all five of the operational cryptocurrency exchanges that are now registered with the country’s authorities might be included into the cryptocurrency exchange that the ministry plans to launch.

In spite of the fact that these exchanges are already responsible for enabling all transactions inside the country, the exchange run by the ministry would serve as a clearing house and a custodian in the local cryptocurrency market.

A clearing house is simply a third party that acts as a mediator between a buyer and a seller in order to ensure that the transaction is completed without any hiccups. At the same time, it would be responsible for managing the transfer of assets between the two parties as part of its position as a custodian.

The Minister of Trade pleaded with the general public to have patience over the establishment of a national cryptocurrency exchange, stating that “Let us not hurry because if it is not ready, things will become nasty.” Due to the fact that the general public does not have a lot of knowledge [about crypto trading], the government does not want this to have a significant impact on the population.

The Commodity Futures Trading Regulatory Agency, also known as Bappebti, is currently in charge of supervising the trading of crypto assets in the country alongside commodity contracts. However, once a national exchange has been established, the regulatory authority will be transferred to the Financial Services Authority.

This change in legislation is a direct result of new cryptocurrency rules that were enacted on December 15, 2018. These regulations recognise cryptocurrencies and other digital assets as regulated financial instruments.

Perry Warjiyo, the governor of the Bank of Indonesia, made the announcement on December 5 that a digital currency that the central bank was intending to issue would be the sole digital legal tender in the country.

Indonesia's Ministry of Trade is reportedly aiming to roll out a national crypto exchange Republished from Source https://blockchain.news/news/indonesias-ministry-of-trade-is-reportedly-aiming-to-roll-out-a-national-crypto-exchange via https://blockchain.news/RSS/

Feb 03 2023

Silvergate Bank Probed by DOJ for Ties to FTX Exchange

It has been claimed that the fraud section of the United States Department of Justice is conducting an investigation against the crypto bank Silvergate for its participation with the defunct FTX exchange and its affiliates.

According to a story published on February 3 by Bloomberg, which cited “people familiar with the subject,” the investigation is looking at Silvergate’s hosting of accounts that are tied to the companies of former FTX CEO Sam Bankman-Fried.

The cryptocurrency bank situated in California is not suspected of committing any crimes; nonetheless, detectives are trying to determine the extent to which the business was conducted with FTX and Alameda.

The failure of FTX in November had a significant negative effect on Silvergate, which resulted in a loss of one billion dollars in the most recent quarter. As a result of the collapse of the SBF empire, the bank was forced to lay off forty percent of its workforce and admit that it had taken out loans worth billions of dollars in order to avert a liquidity crisis and a bank run.

Investigators from the federal government are attempting to determine whether or not Silvergate and any other businesses that collaborate with FTX were aware of the issue.

According to Silvergate, Alameda signed up for a banking relationship with the institution in 2018, which was before to the release of FTX. According to the report, it asserts that it exercised appropriate due diligence and maintained continuing monitoring at the relevant period.

A spokesman from the financial institution said earlier this week that the company “has a rigorous compliance and risk management procedure.”

Josh Rager, a crypto trader, remarked on the potential effects that this most recent criminal probe may have on cryptocurrency exchanges that are connected to Silvergate.

On January 27, Silvergate announced that company will be temporarily suspending dividend payments, citing “recent volatility in the digital asset business.” At the time, it said that it had a “cash position that was in excess of their digital asset customer-related deposits.”

According to MarketWatch, Silvergate stock has dropped by 13% during the day, and it is now trading at $17.14 in after-hours trading. In addition, the price of SI is today 92% lower than it was in November 2021, when it was at its all-time high of $220.

Silvergate Bank Probed by DOJ for Ties to FTX Exchange Republished from Source https://blockchain.news/news/silvergate-bank-probed-by-doj-for-ties-to-ftx-exchange via https://blockchain.news/RSS/

The Number of Crypto-Related Enforcement Actions in the United States Grows

DON’T MISS A BEAT

Just four men controlled 86% of stablecoin issuer Tether Holdings Limited

DON’T MISS A BEAT

Billionaire investor Ray Dalio has described fiat currency as being in serious jeopardy

DON’T MISS A BEAT

Indonesia’s Ministry of Trade is reportedly aiming to roll out a national crypto exchange

DON’T MISS A BEAT

Silvergate Bank Probed by DOJ for Ties to FTX Exchange

DON’T MISS A BEAT