Tag: fraud

In a dramatic turn of events, U.S. prosecutors have recommended an unprecedented prison sentence of 40 to 50 years along with an imposing fine exceeding $11 billion for Sam Bankman-Fried, the former CEO of FTX, a now-bankrupt cryptocurrency exchange. The sentencing, slated for March 28, follows Bankman-Fried’s conviction on seven counts of fraud and conspiracy by a jury in November.

BlackRock’s proposal for a spot Ethereum exchange-traded fund (ETF), as disclosed in a filing on Monday. This delay also applies to Fidelity’s spot Ethereum ETF, with the SEC extending the timeline for both proposals. The regulatory body is soliciting public feedback on whether these ETFs should be approved, particularly focusing on concerns regarding Ethereum’s proof of stake mechanism and its susceptibility to fraud and manipulation. Comments from the public on both proposals are due within the next 21 days, with rebuttals accepted within 35 days thereafter. BlackRock and Fidelity initially filed for their spot Ethereum ETFs back in November, following the launch of spot bitcoin ETFs, which received SEC approval earlier this year. While some crypto experts anticipate a potential approval for spot Ethereum ETFs as early as May, citing the recent approvals for bitcoin ETFs as a positive precedent, others remain cautious. Variant Fund Chief Legal Officer Jake Chervinsky highlighted legal issues and the policy environment in Washington, suggesting that denial or an SEC request to withdraw is more likely than commonly perceived. SEC Chair Gary Gensler has previously emphasized that the agency’s approval of spot bitcoin ETFs should not be extrapolated to other cryptocurrencies, implying that each proposal will be evaluated on its own merits.

Honduras’ CNBS regulator has banned the financial system from trading in cryptocurrency and similar virtual assets, citing risks of fraud and money laundering. The resolution, which takes immediate effect, prohibits institutions under CNBS supervision from engaging in activities involving cryptocurrencies, tokens, or any unauthorized virtual assets. This move underscores regulatory concerns in a country where crypto assets are not currently regulated by law.

Han Chang-joon, the former financial officer of Terraform Labs, has been extradited to South Korea to face charges related to the company’s collapse. However, the fate of Do Kwon, the Terraform founder, remains uncertain as both the US and South Korea vie for his extradition, leaving him in limbo and the full picture of accountability incomplete.

Banmeet Singh, a 40-year-old Indian national, has confessed to operating a large-scale drug network on the dark web with global reach. His narcotics enterprise spanned continents and involved the sale of controlled substances to a global clientele.

Ivan Turogin and Sergei Potapenko, the minds behind a massive $575 million cryptocurrency Ponzi scheme, will face justice in the United States after Estonia approved…

In a stark warning posted on Twitter, MicroStrategy CEO Michael Saylor urges caution against a persistent scam plaguing YouTube: deepfake videos promising easy Bitcoin doubles. Highlighting his team’s daily takedown of 80 such videos, Saylor emphasizes the importance of vigilance in a landscape rife with digital trickery.

Gary Gensler, the head of the U.S. Securities and Exchange Commission, tweeted a cautionary message to crypto investors, reminding them of the legal uncertainties and potential scams in the crypto market. His tweet came as the crypto community is eagerly anticipating the approval of a spot bitcoin ETF by the SEC.

OKX, a leading Web3 technology company and cryptocurrency exchange, has halted trading of sats, a BRC-20 token that pays homage to satoshi, the smallest unit of Bitcoin. The suspension came after a loophole was discovered in the OKX Web3 Wallet Ordinals trading market, where a large number of fake sats tokens were displayed in pending orders, deceiving unsuspecting buyers.

The U.S. government has decided to abandon its plans to prosecute Sam Bankman-Fried, the founder of FTX, on additional charges after he was convicted of fraud last month. The decision has sparked controversy among critics and supporters of the crypto billionaire.