FBI Declares A Vietnam Man Wanted For Money Laundry Worth $3 Billion In Virtual Currency

On March 16, Sputnik radio quoted the US Department of Justice as saying that ChipMixer was dismantled due to its involvement in fraudulent activities, money laundering, hackers, private network market (darknet) ...

US authorities have coordinated with the German federal criminal police to carry out an operation to take down ChipMixer, confiscate servers and more than $ 46 million in cryptocurrency.

"This morning (Main coordination with domestic and foreign partners, the US Department of Justice disabled a cryptocurrency mixing tool that helps promote malware attacks. , state-sponsored purchases of cryptocurrencies and purchases in private network markets globally," the US Department of Justice said in a statement.

The US Department of Justice emphasizes that it will do everything to protect victims and fight criminals in the field of cryptocurrency, and asserts that the ChipMixer crackdown in particular has disrupted dangerous criminal activity. for global cybersecurity.

According to the allegation, from August 2017 to March 2023, ChipMixer was responsible for handling bitcoins used by a foreign intelligence agency. This allegation was first revealed in a joint cybersecurity advisory that the Federal Bureau of Investigation (FBI) and the US National Security Agency (NSA) released in August 2020.

Washington also accused ChipMixer of processing nearly $1 billion in bitcoin linked to stolen funds or private network markets during the same period. Some of the funds are believed to be linked to North Korean hackers.

Regarding the ChipMixer case, US authorities have charged Minh Quoc Nguyen, a Vietnamese citizen, with money laundering, operating an unauthorized money transfer network and stealing other people's personal information. The maximum sentence for these crimes is 40 years in prison.

Minh Quoc Nguyen, born in 1973, is from Quang Binh. Minh Quoc Nguyen was charged on March 14 and is wanted by the FBI.

According to the court indictment, ChipMixer allowed customers to send bitcoins, then mix them with the bitcoins of other ChipMixer users, making it difficult for law enforcement and regulators to track their transactions.

ChipMixer serves a wide range of customers in the US but is not registered with the US Treasury Department's Financial Crimes Enforcement Network (FINCEN) nor does it collect identifying information about its customers.

The Two “Most Bitcoin-friendly” U.S. Banks Closed In Less Than A Week, How Much Is The Crypto Industry Affected?

Two of the crypto-friendly banks and a major tech start-up have both closed in less than a week. Events taking place in the US banking industry have created instability in the stablecoin market.

Cryptocurrency bank Silvergate Capital announced on March 8 that it will cease operations and conduct liquidation. Meanwhile, Silicon Valley Bank (SVB), which specializes in supporting startups, also collapsed on March 10. Signature Bank, which is larger than Silvergate, was also ordered by banking regulators to close on the evening of March 12.

The federal government has stepped in to secure all customer deposits at SVB and Signature. This information has made the cryptocurrency market green. Both Bitcoin and Ether are up nearly 10% in the past 24 hours.

According to Nic Carter of Castle Island Ventures, the government's willingness to support both banks shows that they are returning to the mode of providing liquidity and loosening monetary policy. This is inherently beneficial to cryptocurrencies and other speculative assets.

But there is another volatile hole in the cryptocurrency market that is stablecoins, a small branch of the cryptocurrency ecosystem. Stablecoins are pegged to the value of a real asset, such as fiat currencies (USD) or gold. But financial fluctuations can cause stablecoins to fall below the fixed price.

Called "stable" but unstable

Starting with the demise of TerraUSD in May 2022, a lot of the problems in the crypto space stem from stablecoins. Recently, regulators have focused on this digital currency. Binance's USD-pegged stablecoin (BUSD) has seen massive outflows, after the US Securities and Exchange Commission (SEC) put pressure on issuer Paxos.

Over the weekend, confidence in the coin was shaken once again as stablecoin USDC lost its peg, falling below 87 cents on March 11. The reason is because the issuer Circle admitted to having $3.3 billion in deposits at SVB.

On March 11, a number of traders began exchanging USDC and DAI for Tether, the world's largest stablecoin with a market value of over $72 billion. The issuer of Tether is not related to SVB.

The stablecoin market began to recover on the evening of March 12, after Circle announced that it would “make up any shortfalls using corporate resources.”

The Two Most Bitcoin-Friendly Banks

In the long run, shutting down the most crypto-friendly banks could hurt Bitcoin. It is the largest cryptocurrency in the world with a market value of $422 billion.

Signature's Silvergate Exchange Network (SEN) and Signet are both core services. These two platforms allow customers to make instant payments 24/7 and 7 days a week.

“The liquidity of Bitcoin and crypto in general will be somewhat impaired, as Signet and SEN are key for companies to get fiat by the end of the week,” Carter said.

Mike Brock wrote in a post on the Damus social media network: “These are the two most Bitcoin-friendly banks, supporting the majority of fiat payments for Bitcoin transactions between trading partners in the US."

“Currently crypto companies have very few options and the crypto industry will have limited liquidity until new banks come in,” Carter added.

Binance's Asset Shuffle Has Many Similarities To FTX's "Disaster"

By the end of 2022, Binance had quietly transferred $1.8 billion in customer stablecoin collateral to hedge funds, including Alameda and Cumberland/DRW.

Alameda Research hedge fund without the user's permission. While the temporary transfer of funds to Cumberland/DRW and elsewhere has not caused any harm to investors, it could cause trouble for business partners.

Cryptocurrency investigative firm Coin Argos was the first to raise concerns about Binance not following the rules of how it operates and about the ongoing lack of collateral to secure billions of dollars in tokens. issued by the exchange. "Someone received a loan worth about $1 billion in about 100 days," the company said in a January 17 report.

Fortune also reported that Binance liquidated USDC collateral and used the proceeds to pay US minting partner Paxos to generate new BUSD. Fortune speculates the goal could be to increase the market share of the USD-based stablecoin BUSD.

According to Forbes, it is hard to ignore the similarities with the transactions that contributed to the crisis and collapse at FTX. While FTX is accused of embezzling customer deposits to benefit the Alameda hedge fund also managed by founder Sam Bankman-Fried, Binance appears to have taken customer funds to use for its own purposes. its own destination. These actions may not be illegal, simply because Binance is not regulated like a regular financial company.

However, on February 28, Binance CEO Changpeng Zhao spoke up and affirmed that “Binance is different from FTX”. He said that Binance has overcome the difficult period, users can still withdraw in full in December 2022.

This is not the first time that Binance's performance has been compared to that of FTX. At the end of December 2022, Reuters cited a report that showed Binance's financial situation as a blurry picture, even "more opaque than FTX".

At that time, users rushed to withdraw $ 900 million from the exchange. At the end of January, Binance lost another 2 billion USD citing “poor management”. In mid-February, BUSD was banned and users withdrew nearly 3 billion USD in just 24 hours.

Crypto Lender Genesis Files For Chapter 11 Bankruptcy Following FTX Crash

According to the Wall Street Journal, cryptocurrency lender Genesis Global Holdco LLC and two of its subsidiaries filed for bankruptcy protection in New York. This is yet another company affected by the collapse of FTX.

According to reports, cryptocurrency prices will begin to plummet at the end of 2021. Before Genesis, cryptocurrency lenders Celsius Network LLC and Voyager Digital filed for bankruptcy last July.

Specifically, Genesis and its two subsidiaries, Genesis Global Capital LLC and Genesis Asia Pacific, have filed for bankruptcy protection.

Genesis stated that it has more than US$150 million in cash on hand, which "can provide sufficient liquidity to support continued business operations and facilitate the restructuring process."

Genesis Global Trading cut 30% of its workforce earlier this month, people familiar with the matter said, in the latest sign of the company's financial troubles.

Coinbase To Cease Operations In Japan Amid Turbulent Market Conditions

All Coinbase Japan customers have until February 16 to withdraw their fiat and cryptocurrency holdings, Coinbase said in a blog post.

Pickpook learned that Coinbase announced last week that it will launch a second round of major layoffs, planning to lay off 950 people, accounting for about 20% of the company's employees, with the aim of retaining more cash during the downturn in the cryptocurrency market.

In June last year, Coinbase had already carried out its first round of layoffs, cutting 18% of its employees.

Bitcoin prices have fallen 58% over the past year, while Coinbase shares have fallen more than 83%, according to the data. In November last year, Coinbase's market value fell below $10 billion for the first time since its listing.

Genesis, The World's Largest Crypto Currency Lender, Announced A 30% Layoff Due To Financial Difficulties

According to the Wall Street Journal, Genesis Global Trading, the world's largest crypto lender, cut 30% of its workforce on Thursday, according to the Wall Street Journal, in the latest sign of financial difficulties for the company.

US media pointed out that the company suffered huge losses due to loans provided to trading firm Alameda Research and cryptocurrency hedge fund Three Arrows Capital. Alameda and Three Arrows both filed for bankruptcy last year.

Pickpook learned that a Genesis spokesperson said: “As we continue to overcome unprecedented industry challenges, Genesis has made the difficult decision to lay off employees around the world. These measures are part of our ongoing efforts to drive business development.”

Earlier, Genesis interim CEO Derar Islim said the company needed more time to resolve the financial crisis that was brewing in the business.

Sam Bankman-Fried, Former FTX CEO Pleads not Guilty of not Defrauding Investors and Causing Lost of Billion Dollars

According to Nikkei Asia, during the trial on January 3, the former CEO of FTX pleaded not guilty to eight counts, including wire fraud, conspiracy to commit money laundering and violation of war finance laws. election translation. The trial was presided over by US District Judge Lewis Kaplan in Manhattan federal court.

Judge Kaplan set the date for the trial to be October 2. Federal prosecutor Danielle Sassoon estimated that the trial could last four weeks and said the administration would soon turn over hundreds of thousands of documentary evidence to defense attorneys.

SBF is accused of taking billions of dollars in customer deposits on crypto exchange FTX to fund its Alameda Research hedge fund, buy real estate and contribute millions of dollars to political activities.

Defendants facing criminal charges often initially plead not guilty. However, they may change their mind after a few hearings.

The U.S. Securities and Exchange Commission (SEC) said Bankman-Fried "staged a multi-year scam" to conceal FTX investors' money transfers to Alameda Research, the firm. other cryptocurrency exchanges that this person established. The SEC also confirmed that it is conducting investigations into “other violations of securities laws” and investigating the organizations and individuals involved.

In fact, if convicted of all counts, Sam Bankman-Fried could face up to 115 years in prison.

Sam is one of the people who has fueled the explosion in the value of Bitcoin and other digital assets. During his peak, the founder of FTX had a net worth of $26 billion and became one of the richest cryptocurrency billionaires in the world.

However, after a wave of withdrawals, FTX collapsed and declared bankruptcy on 11/11/2022. This makes SBF's net worth almost zero. The founder of FTX once claimed that he only had about 100,000 USD left in his bank account.

Previously, on December 12, 2022, Sam Bankman-Fried was arrested by the Bahamas authorities. This arrest was made after the US bar team of the Southern District of New York (SDNY) shared a sealed indictment with the Bahamas government, setting the stage for the extradition and trial of the billionaire money tycoon. One-time electronics will take place in America.

Since being released on $250 million bail on December 22, 2022, Sam Bankman-Fried has been under remote surveillance and has had to live with his parents, Joseph Bankman and Barbara Fried, both teachers. professor at Stanford Law School in California.

Judge Kaplan granted Sam Bankman-Fried's request not to disclose the names of two of the people who signed the minutes of bail payments to the founders of FTX.

Sam's attorney said his parents have received numerous threats since the collapse of FTX. According to the same lawyer, the names that bailed out Sam Bankman-Fried may also face similar harassment, so their identities are kept private.

The judge also imposed a new bail condition on Bankman-Fried's inability to access FTX or Alameda assets. The charges brought against Sam Bankman-Fried by prosecutors were bolstered by confessions last month from two of his closest associates.

Caroline Ellison, CEO of Alameda, and Gary Wang, former chief technology officer of FTX, pleaded guilty to seven and four criminal charges, respectively, and agreed to cooperate with prosecutors. SBF, Ellison and Wang were also sued by the SEC and the Commodity Futures Trading Commission (CFTC). Ellison and Wang settled those civil lawsuits.

FTX's new CEO, John Ray, said FTX is run by people who are "completely inexperienced".