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Letitia James issues a new warning
Following a recent $2 billion settlement with cryptocurrency companies, New York Attorney General Letitia James on Saturday warned similar companies to “play by the same rules.”
James announced her on Monday has reached a $2 billion settlement with cryptocurrency companies in a move that will help investors, including nearly 30,000 New Yorkers, recover losses resulting from alleged fraud by businesses.
To know more: Common cryptocurrency scams and how to avoid them
The settlement involved cryptocurrency firms Genesis Global Capital, Genesis Asia Pacific PTE and Genesis Global Holdco as James’ office accused them of hiding losses of more than $1 billion from investors. Earlier this year, the case expanded to allege that Digital Currency Group and Genesis, along with their top executives, defrauded investors of $2 billion.
As part of the deal, the companies will be barred from continuing to operate in the state and a victims’ fund will be created that will return some of the money to investors after creditors are paid.
“When investors suffer losses due to fraud and manipulation, they deserve to be made whole,” James said in a statement. “We see the real-world consequences and harmful losses that can occur due to a lack of oversight and regulation in the cryptocurrency industry. New York investors deserve the peace of mind that comes from a properly regulated market.”
To know more: The best cryptocurrency to invest in now
In a Saturday morning post at X, previously TwitterJames reiterated his efforts to regulate the cryptocurrency industry and wrote: “Cryptocurrency companies must play by the same rules as everyone else. We will prosecute those that don’t.”
Newsweek has reached out to James and Genesis’ office via email for comment.
According to the Attorney General’s Office, the recent settlement continues James’ effort to “increase oversight and regulation in this industry and protect New York investors, who have secured more than $2.5 billion to date from predatory cryptocurrency platforms.”
New York State Attorney General Letitia James is seen March 17 in Staten Island, New York. Following a recent $2 billion deal with cryptocurrency firms, James on Saturday warned similar companies to “play by… New York State Attorney General Letitia James is seen on March 17 in Staten Island, New York. Following a recent $2 billion deal with similar cryptocurrency companies, James warned similar companies on Saturday to “play by the same rules.” More Andrew Lichtenstein/Corbis/Getty Images
This follows last year’s bill to tighten regulations on the cryptocurrency industry, which James announced in May 2023. The bill would increase transparency, eliminate conflicts of interest and impose common-sense measures to protect investors, in line with regulations imposed on other financial services.
To know more: Bitcoin, Ethereum and Tether Price Predictions
The bill would also require independent public audits of cryptocurrency exchanges and prevent individuals from owning the same companies, such as brokers and tokens, to stop conflicts of interest.
In addition to the warning aimed at cryptocurrency companies, James also urges New Yorkers who have been affected by deceptive behavior in the cryptocurrency industry to report such issues to his office and encourages industry workers who may have witnessed misconduct or fraud to file an anonymous whistleblower complaint to his office.
However, the deal is subject to bankruptcy court approval. Genesis did not accept the blame.
“Under this agreement, Genesis neither admits nor denies the allegations in this lawsuit, and the lawsuit will continue against the remaining defendants, as well as Genesis’ former business partner, Gemini Trust Company, LLC,” the James’s office.
In an earlier statement to Newsweek, a spokesperson for Genesis said the company would not comment further on the deal but was focused on “maximizing value for all creditors.”
“Our goal throughout this process has been to maximize value for all creditors and we are pleased that the court approved both our Plan and the NYAG settlement agreement. We look forward to implementing the Plan and make distributions as quickly as possible,” Derar Islam, interim CEO of Genesis, said in the statement.
Furthermore, the company also said in its statement that creditors will be compensated “as much as possible in the form of the original assets they lent, rather than being limited to the USD value of the cryptocurrency assets as of the date of the request and converting them into cash or other forms redemption rates that may not reflect the current or future value of the cryptocurrency assets.”
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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How Ether Spot ETF Approval Could Impact Crypto Prices: CNBC Crypto World
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CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and gives viewers a glimpse of what’s to come with high-profile interviews, explainers and unique stories from the ever-changing cryptocurrency industry. On today’s show, Ledn Chief Investment Officer John Glover weighs in on what’s driving cryptocurrency prices right now and how the potential approval of spot ether ETFs could impact markets.
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Miners’ ‘Capitulation’ Signals Bitcoin Price May Have Bottomed Out: CryptoQuant
According to CryptoQuant, blockchain data shows signs that the Bitcoin mining industry is “capitulating,” a likely precursor to Bitcoin hitting a local price bottom before reaching new highs.
CryptoQuant analyzed metrics for miners, who are responsible for securing the Bitcoin network in exchange for newly minted BTC. As outlined in the market intelligence platform’s Wednesday report, multiple signs of capitulation have emerged over the past month, during which Bitcoin’s price has fallen 13% from $68,791 to $59,603.
One such sign includes a significant drop in Bitcoin’s hash rate, the total computing power that backs Bitcoin. After hitting a record high of 623 exashashes per second (EH/s) on April 27, the hash rate has fallen 7.7% to 576 EH/s, its lowest level in four months.
“Historically, extreme hash rate drawdowns have been associated with price bottoms,” CryptoQuant wrote. In particular, the 7.7% drawdown is reminiscent of an equivalent hash rate drawdown in December 2022, when Bitcoin’s price bottomed at $16,000 before rallying over 300% over the next 15 months.
This latest hash rate drop follows Bitcoin’s fourth cyclical “halving” event in April, which cut the number of coins paid out to miners in half. According to CryptoQuant’s Miner Profit/Loss Sustainability Indicator, this has left miners “mostly extremely underpaid” since April 20, forcing many to shut down mining machines that have now become unprofitable.
CrypotoQuant said that miners faced a 63% drop in daily revenue after the halving, when both Bitcoin block rewards and transaction fee revenues were much higher.
During this time, Bitcoin miners were seen moving coins from their on-chain wallets at a faster rate than usual, indicating that they may be selling their BTC reserves“Daily miner outflows reached their highest volume since May 21,” the company wrote.
Among the sales of Bitcoin miners, whales and national governmentsBitcoin’s price drop in June also hurt Bitcoin’s “hash price,” a metric of Bitcoin Miner Profitability per unit of computing power.
“Average mining revenue per hash (hash price) continues to hover near all-time lows,” CryptoQuant wrote. “Hashprice stands at $0.049 per EH/s, just above the all-time low hashprice of $0.045 reached on May 1st.”
By Ryan-Ozawa.
News
US Congressman French Hill Doubles Down on Trump’s Pro-Crypto Stance
US lawmaker French Hill has noted that Donald Trump will take a more pro-crypto approach than the current administration. The run-up to the presidential election has seen cryptocurrencies become an issue with lawmakers making huge statements ahead of the polls. Donald Trump has also been reaching out to the industry, making a pro-crypto case.
French Hill Backs Trump’s Pro-Crypto Stance
Republican Congressman French Hill has explained the type of cryptocurrency regulatory framework he believes Donald Trump could adopt in the country. In a recent interview with CNBC, French Hill said that the recently passed FIT21 bill is the type of regulatory framework the Trump administration will adopt in the sector.
#FIT21 passed the House with 71 Democratic votes, it’s exactly the kind of digital asset regulatory framework former President Trump would support if re-elected.
See more on @SquawkCNBC🔽 photo.twitter.com/ceTmU4LApU
— French Hill (@RepFrenchHill) July 3, 2024
THE FIT21 Bill It is intended to protect investors and consumers in the market by establishing clear rules and powers for the various regulators in the sector. According to Hill, Trump will adopt it because it directs the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on the specific regulatory framework needed in the market.
“… for people who are innovating and starting a crypto token, a related business, custody of those assets, how to ensure consumer protection, so I think that framework is the right approach and that’s what I’m going to recommend to the President to pass, which is that we have not passed it between now and the end of this Congress.”
He also called Trump an innovative and pro-growth president in financial matters.
Cryptocurrency is going mainstream
This election cycle saw the cryptocurrency industry taking a place in mainstream issues following broader adoption across demographics. From candidates moving toward enthusiasts to recent pro-Congress legislation, cryptocurrencies have become a rallying point for officials. The U.S. regulatory landscape has been criticized for stifling growth due to frequent SEC LawsuitsThis has led executives to push for pro-cryptocurrency laws and raise money for pro-industry candidates.
Read also: Federal Reserve Predicts “AI Will Be Deflationary” to Stimulate Economy
David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.
News
US Court Orders Sam Ikkurty to Pay $84 Million for Cryptocurrency Ponzi Scheme
A federal court has ordered Jafia LLC and its owner, Sam Ikkurty, to pay nearly $84 million to cryptocurrency investors after ruling that the company was operating a Ponzi scheme.
The ruling, issued by Judge Mary Rowland in the U.S. District Court for the Northern District of Illinois, follows a lawsuit filed by the Commodity Futures Trading Commission (CFTC) in 2022 after the fund collapsed.
Judge Rowland found that Ikkurty, based in Portland, Oregon, did numerous false claims on his company’s hedge funds.
These included misleading statements about his trading experience and the promise of high and stable profits. Instead, Ikkurty used funds from new investors to pay off previous investors, a hallmark of a Ponzi scheme.
The Ponzi Scheme
The court found that Ikkurty misappropriated investment funds for personal use without the knowledge of the investors. These funds were used for personal use and were reported as Fraudulent Investmentscausing significant financial losses to customers.
This non-transparent operation violated Transparency Commission regulations, which led to the imposition of a hefty fine to compensate defrauded investors and restore some public confidence in the financial system.
Judge Rowland emphasized that fraudulent activity such as this violates the law and undermines the integrity of modern financial markets. The $84 million award seeks to address the financial harm inflicted on investors and reinforce the importance of legal compliance in cryptocurrency trading.
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