Schlagwort: crypto news

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US Senator asks DOJ to consider criminal charges against Binance and Tether

  • US Senator Cynthia Lummis asks the Department of Justice (DOJ) to criminally charge crypto exchange Binance and USDT issuer Tether.
  • Lummis cites the two companies’ role in aiding illicit fundraising for terror.
  • Blockchain security and analytics firm Elliptic says a WSJ report “misrepresented” data.

The US Department of Justice should finish its investigation and consider criminal charges against crypto exchange Binance and USDT stablecoin issuer Tether, US Senator Cynthia Lummis says.

Senator Cynthia Lummis (R-WY), notes in a post on X today that she had sent a letter to the DOJ with a view of having the Justice Department charge the two crypto companies for being “intermediaries” in reported illicit financing of Hamas.

The letter, co-signed by Representative French Hill, Chair Subcommittee, House Financial Services, is part of a wider reaction to a recent Wall Street Journal report. The allegations in the report saw several lawmakers believe Hamas had raised millions of dollars in crypto funding before its attacks on Israel earlier this month.

But as blockchain analytics firm Elliptic noted in a blog post published on October 25, “there is no evidence to suggest that crypto fundraising” had resulted in the more than $130 million raised cited in the Wall Street Journal article.

Elliptic said its data and that from other platforms “has been misinterpreted.”

Tether wants mainstream media fact-checked

In an announcement published this afternoon, Tether said its stance against use of crypto in terrorism financing remains strong. However, it has urged the government to “fact-check” mainstream media misrepresentations about the topic.

The news release cited the stablecoin issuers cooperation with law enforcement, including Israel’s to freeze funds suspected to be meant for illicit activities.

“Crypto used by malicious actors accounts for a small drop in the huge ocean of illicit activity passing through the (willingly or poorly equipped) traditional financial industry. WSJ deceitful article tricked good actors with false information,” said Tether CEO Paolo Ardoino.

Nic Carter, partner at Castle Island Ventures, says crypto needs to stand up for itself in the wake of the latest regulatory developments. He shared on X:

Brian Armstrong, co-founder and CEO of Coinbase, shares similar sentiments and believes one of the steps to getting it right here is for the WSJ to issue a retraction or correction.

The post US Senator asks DOJ to consider criminal charges against Binance and Tether appeared first on CoinJournal.

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New York AG sues Gemini and Genesis for alleged $1 billion fraud

  • The New York Attorney General Letitia James filed the lawsuit against Gemini, Genesis and DCG on Thursday.
  • It’s alleged the crypto firms lied to investors and concealed losses of over $1 billion.

New York Attorney General Letitia James has sued Gemini, Genesis Global Capital and Digital Currency Group over allegations that the crypto companies defrauded over 230,000 investors, 29,000 of them from New York.

Crypto companies lied to investors

In the lawsuit the AG filed on Thursday, the companies perpetrated the more than $1.1 billion fraud scheme by concealing losses and repeatedly lying to investors. Gemini Earn customers were greatly impacted when Genesis paused withdrawals in December last year.

According to the top New York prosecutor, despite Gemini’s own analyses showing that Genesis’ loans were not only undersecured but also “highly concentrated with one entity, Sam Bankman-Fried’s Alameda,” the company did not warn its customers about it. Rather, the crypto exchange continually assured customers that the earn program constituted a low-risk investment.

Withholding the information from investors extended to Genesis, and its former CEO Soichiro Moro. Genesis parent company, recently embroiled in a tussle over customer funds with Gemini, has is also looped into the accusation. The lawsuit also charges DCG CEO Barry Silbert.

“These cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and it was middle-class investors who suffered as a result,” James said. She added:

“My office will continue our efforts to stop deceptive cryptocurrency companies and to push for stronger regulations to protect all investors.”

The lawsuit against the three companies is the New York Ag’s latest crackdown on crypto firms. Some of the recent actions have been against crypto platform CoinEx, Coin Café, KuCoin and Nexo.

The post New York AG sues Gemini and Genesis for alleged $1 billion fraud appeared first on CoinJournal.

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Tether freezes 32 addresses linked to terrorism in Israel and Ukraine

Key takeaways

  • Stablecoin issuer Tether has frozen over 30 crypto addresses linked to terrorism and warfare in Ukraine and Israel.

  • The crypto addresses held over $800k collectively.

Tether freezes crypto addresses linked to warfare in Ukraine and Israel

Tether, the issuer of the USDT stablecoin, announced in a blog post on Monday that it has frozen 32 addresses linked to terrorism and warfare in Israel and Ukraine.

The company confirmed that it has been working with Israel’s National Bureau for Counter-Terror Financing (NBCTF) to fight cryptocurrency-funded terrorism and warfare. 

Freezing the addresses means that the wallet users won’t be able to send USDT until the freeze is lifted. According to Tether, the 32 wallets held $873,118in USDT. Tether added that,

“To date, Tether has aided 31 agencies worldwide with investigations across 19 jurisdictions, freezing a total of $835 million in assets mostly associated with theft (blockchain and exchange hacks) with a minor portion to other crimes.”

The company added that it has partnered with countries, including the United States, Brazil, Singapore, Philippines, Germany, South Korea, Norway, Canada, Israel, India, the UK and Ukraine, to fight terrorism and warfare funding. 

Tether CEO Paolo Ardoino pointed out that,

“Tether remains committed to promoting responsible blockchain technology use and standing as a robust defence against cybercrime. We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and financial integrity.”

This latest cryptocurrency news comes a week after Binance helped Israeli police seize Hamas-linked crypto wallets after a surprise attack by the terrorist organisation quickly turned into war. 

In November 2022, Tether froze $46 million worth of USDT stablecoins following a law enforcement request regarding an FTX wallet during the exchange’s collapse.

The post Tether freezes 32 addresses linked to terrorism in Israel and Ukraine appeared first on CoinJournal.

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Australia proposes new licensing regime for crypto exchanges

  • Exchanges with specific asset levels must obtain an Australian Financial Services License
  • The draft legislation is expected to go out by 2024.
  • A consultative process seeks input from stakeholders and the public on 32 key regulatory themes.

In a significant move towards regulating the rapidly expanding cryptocurrency industry in Australia, Australia’s Treasury has unveiled plans to introduce a comprehensive licensing regime for crypto exchanges.

The initiative is designed to enhance consumer protection, bring much-needed clarity to the digital asset sector, and pave the way for the nation to align with global regulatory standards.

The newly proposed regulatory framework

Under the newly proposed framework, cryptocurrency exchanges operating in Australia must obtain an Australian Financial Services license (AFSL) from the Australian Securities and Investments Commission (ASIC).

This regulatory measure will be applicable to exchanges that hold more than AUD 1,500 of any single client’s assets or have total assets exceeding AUD 5 million. The approach seeks to ensure that exchanges are equipped to safeguard the interests of their customers and adhere to robust financial and operational standards.

Draft legislation by 2024

The Treasury’s timeline outlines a plan to release draft legislation covering licensing and custody rules for crypto asset providers by 2024. Once the legislation is enacted into law, crypto exchanges will have a 12-month transition period to align their operations with the new regulatory framework. This means it may take until 2025 for an Australian digital asset platform to receive a license under this fresh regulatory regime.

The proposed regulatory framework’s approach is consumer-centric, aiming to strike a balance between ensuring consumer protection and fostering innovation. It acknowledges that the digital asset landscape is evolving rapidly and seeks to provide clear guidelines to industry participants.

Consultation and feedback

The government has initiated a consultation process, soliciting feedback from industry stakeholders and the public. This approach underscores the desire to create well-informed, balanced, and acceptable regulations for the broader community.

Caroline Bowler, CEO of BTC Markets responded to the consultation paper from the Commonwealth Treasury regarding the proposed regulation of crypto-asset exchanges in Australia via X (formerly Twitter) and termed the development a “key milestone.”

The proposal includes 32 key themes and invites written submissions by December 1, 2023, reflecting the government’s intention to involve all relevant stakeholders in shaping the final regulations.

Australian Central Bank Digital Currency (CBDC) research

In addition to the crypto exchange regulation, Australia is making strides in the field of central bank digital currency (CBDC) research.

The Reserve Bank of Australia and the Treasury will jointly publish a report in 2024, offering insights into CBDC research within the nation and outlining a roadmap for future work. This move reflects a coordinated approach to exploring the possibilities and implications of digital currencies.

Australia’s delayed but anticipated regulatory proposal signals a robust commitment to regulating the crypto industry in a manner that balances protection and innovation.

As the consultation process unfolds, the nation is gearing up to join its international peers in establishing a framework that addresses the unique challenges of the digital asset space while safeguarding the interests of consumers.

The post Australia proposes new licensing regime for crypto exchanges appeared first on CoinJournal.

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Canadian regulator clarifies guidelines for stablecoins trading

  • Canadian securities regulator CSA has clarified terms and conditions for stablecoin trading on exchanges.
  • Crypto platforms and issuers have to adhere to set conditions before they are allowed to offer stablecoin related services.
  • Several crypto exchanges, including Binance, exited Canada earlier this year following CSA’s new stablecoin guidelines.

The Canadian Securities Administrators (CSA) has provided further guidance to the trading of stablecoins on crypto exchanges in the country. The update comes months after major exchanges, including Binance, halted operations in the country over regulatory developments.

Canada clarifies stablecoin trading rules

Although the CSA previously noted in an interim framework that stablecoins, which it terms as “value-referenced crypto assets,” may constitute securities or derivatives, its latest update include the acknowledgement that the asset is an important component of trading on crypto exchanges.

The guidance includes clarification on when crypto trading platforms and issuers of fiat-backed stablecoins can offer these assets to Canadian customers. Initially, the CSA said crypto trading platforms could be allowed to offer stablecoin deposits or purchases in cases where the asset is pegged to a single fiat currency.

Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, providers and issuers must adhere to transparency, particularly about their reserves and governance. He noted in a press release that these are “critical issues” that should be addressed in order to protect investors and market integrity.

“This interim framework, which we will build upon in the future, sets certain standards to help ensure that investors receive the information they need about the assets they are purchasing, including the risks associated with them,” Magidson added.

The latest clarification is in response to comments received from Canadian crypto market participants, the CSA said. The move is also a result of the push to have a framework that aligns with global standards and regulations.

This year, Binance, OKX and Bybit announced their exit from the Canadian market citing the regulatory environment.

Binance, the world’s largest crypto exchange by trading volume, pegged its departure on “new guidance related to stablecoins and investor limits”. Per the exchange, the requirements had made the Canadian market “no longer tenable” for business.

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