Cryptocurrencies To Watch

Tag: Top Crypto News

  • Craig Wright to Serve a Year in Prison for Claiming to be Satoshi

    Craig Wright to Serve a Year in Prison for Claiming to be Satoshi

    The Australian computer scientist Craig Wright, who falsely claimed to be the founder of Bitcoin, has been sentenced to 12 months in prison and suspended for two years. The verdict served by a British Judge was mainly for contempt of court after breaching a High Court order.

    The one-year suspended sentence serves as a warning, allowing Wright to rehabilitate and avoid imprisonment if he complies with the conditions.

    Wright Bags One-Year Prison Sentence

    Earlier this year, Wright lost a legal battle against the Crypto Open Patent Alliance (COPA), a non-profit group that includes crypto firms. The lawsuit argued that the computer scientist falsely claimed to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin. The court barred the accused from launching further legal action related to Bitcoin.

    However, in October, Wright issued another Bitcoin-related claim worth over $1.1 trillion. The court deemed his latest act unremorseful and a flagrant breach of the first court order, a “contempt of court” offense.

    In response, the court threw out Wright’s latest legal claim and ordered him to pay around $181,530 of COPA’s legal costs. His refusal to attend the hearing and subsequent claim that he couldn’t afford to travel to the UK was seen as an attempt to avoid accountability.

    Wright May Face More Penalties

    The court also found Wright guilty of “forgery on an industrial scale.” The Crown Prosecution Service is yet to decide whether to bring criminal charges against him for the hundreds of forged documents related to the case.

    The Bitcoin community has condemned Wright’s actions, with many seeing his claims as an attempt to discredit the crypto and its developers. Notably, the crypto’s original white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System,” was released in 2008 and authored under Satoshi’s name, not Wright’s.

    The prison sentence is a blow to Wright’s reputation, and he will likely face further consequences for his actions.

    Not the First Crypto-Related Sentencing

    Several other figures in the crypto industry have also faced prison sentences for various offenses. One example is Ross Ulbricht, the founder of the Silk Road darknet marketplace, who was sentenced to life in prison in 2015 for money laundering and computer hacking.

    Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX, pleaded not guilty to the charges. He was later found guilty, sentenced to 8 years in prison, and ordered to forfeit $2.2 billion. He now shares a prison cell with American hip-hop music producer Sean Combs, also known as Diddy.

  • El Salvador Eases Bitcoin Mandate in $1.4B IMF Loan Agreement

    El Salvador Eases Bitcoin Mandate in $1.4B IMF Loan Agreement

    El Salvador, the world’s first country to adopt bitcoin (BTC) as legal tender, has agreed to amend its stance on Bitcoin payments as part of a $1.4 billion loan agreement with the International Monetary Fund (IMF). 

    A $1.4 Billion Deal

    According to an official report, the Central American country is set to receive $1.4 billion from the IMF within the next 40 months after committing to actions designed to reduce its debt-to-GDP percentage.

    “The Salvadoran authorities and a staff team from the IMF have reached staff-level agreement on a 40-month extended arrangement under the Extended Fund Facility (EFF) for about US$ 1.4 billion (equivalent SDR 1,033.9 million, or 360 percent of quota) to address the balance of payment needs and support the government’s economic reforms,” the Salvadoran team said. 

    Furthermore, the team added that the agreement is subject to approval by the Fund’s Executive Board and contingent on the implementation of the agreed prior actions.  

    The IMF also noted that the process will minimize the potential risks and challenges associated with the Bitcoin initiative by the Fund’s policies. Legal changes will ensure that the private sector’s adoption of BTC remains optional. This adjustment is designed to alleviate concerns over forced adoption while maintaining Bitcoin’s legal tender status.

    The $1.4 billion loan from the IMF is expected to provide much-needed fiscal support to El Salvador, which has faced mounting economic pressures, including high debt levels and a struggling economy. The funds will support public finances, support social programs, and stimulate economic growth. In return, the government has agreed to implement fiscal reforms, including the voluntary BTC policy.  

    El Salvador Boosts Bitcoin Adoption

    El Salvador started purchasing BTC in 2021, and according to the National Bitcoin Office’s tracker, the country now owns 5,968.8 bitcoins, valued at approximately $602 million. 

    With recent progress in the country, American broadcaster Max Keiser said El Salvador is living America’s dream through BTC.  

    Keiser further noted that El Salvador’s president, Niyab Bukele, is one of the most popular leaders in the world and that, under his bitcoin strategy, the country has become one of the safest in the Western Hemisphere. 

    On October 28, 2024,  the country marked three years of BTC Acquisition and held nearly 6,000 BTC. At the time, El Salvador’s total Bitcoin holdings, comprising both mined and purchased units, exceeded $400 million, with a balance of 5,917 BTC.

  • Arthur Hayes Says Trump’s Inauguration May Trigger Crypto Sell-Off

    Arthur Hayes Says Trump’s Inauguration May Trigger Crypto Sell-Off

    Analysts and experts in the digital asset sector anticipate favorable market movements following President-elect Donald Trump’s January 2025 inauguration, yet Arthur Hayes, co-founder of BitMEX, offers a contrasting viewpoint.

    He warned against the optimistic outlook regarding Trump’s quick crypto regulatory changes, pointing out the gap between investor hopes and the practical hurdles of policy implementation.

    Hayes’ View on Crypto Sell-Off

    According to his Trump Truth blog post, Hayes revealed that his investment fund, Maelstrom, intends to reduce certain holdings initially, aiming to repurchase at reduced valuations during the first half of 2025.

    Contrary to numerous forecasters, Hayes is skeptical that the United States and other countries will soon begin accumulating national Bitcoin reserves.

    Hayes noted that the market assumes Trump and his administration can instantly deliver economic and political breakthroughs. He emphasized the gap between crypto investors’ hope and the lack of swift, viable political solutions.

    The executive further anticipated that implementing any crypto policy reforms would probably take considerably longer than market participants might assume.

    “The market will instantly wake up to the reality that Trump has at best one year to enact any policy changes on or around January 20th. This realization will lead to a vicious sell-off in crypto and other Trump 2.0 equity trades,” Hayes said.

    Hayes predicted a sharp downturn in the crypto market near Trump’s inauguration, followed by a surge-driven boom phase later in 2025.

    The executive also anticipates a significant market decline around Trump’s January inauguration, prompting Maelstrom, the investment fund operated by his family office, to exit certain positions with plans to reinvest at reduced valuations.

    Hayes added that Maelstrom intends to reduce specific holdings ahead of time and reacquire key assets at more favorable prices within the first half of 2025.

    BTC Surpasses Price Mark

    With several opinions about the crypto sector, the crypto market has experienced a significant surge following Trump’s win in the November presidential election. By early December, BTC had exceeded the $100,000 mark for the first time, profiting investors.

    Numerous experts have predicted that Trump’s proposed crypto policies could push Bitcoin and decentralized finance into widespread adoption.

    The crypto asset’s performance has attracted more retail and institutional investors, who have added BTC to their portfolios. Several countries also plan to make Bitcoin a reserve asset.

  • Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    An Ohio lawmaker has introduced a bill that could position the state to embrace Bitcoin (BTC). The proposed legislation seeks to establish a state Bitcoin reserve, allowing Ohio to purchase and hold BTC as part of its financial assets.

    The bill, HB 703, introduced by Representative Derek Merrin, aims to modernize Ohio’s financial strategies by integrating bitcoin into its treasury. The legislation noted the creation of a framework for the state to acquire, hold, and potentially utilize BTC in various capacities, including as a hedge against inflation and a tool for diversifying state financial reserves.

    “The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. Ohio must embrace technology and protect tax dollars from eroding,” Merrin said.

    Merrin further noted that he anticipates the incoming Trump administration will seek to create a national bitcoin reserve, just like Senator Cynthia Lummis proposed to help America’s balance sheet.

    The Ohio lawmaker also stated that he expects the bill to serve as a foundation for Ohio’s upcoming legislative session, given that it comes just two weeks before the 135th General Assembly concludes on December 31. Merrin hoped that the bill will lay the groundwork for legislators to address it promptly in the coming year.

    “Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances,” he added.

    Bitcoin As a Threat to US Economy

    If passed, the bill could have far-reaching implications for Ohio and other states considering similar measures. Advocates argue that holding the crypto asset could provide a hedge against the volatility of fiat currencies and protect against economic downturns. Critics, however, have raised concerns about bitcoin’s volatility and potential risks.

    Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., believes investing in BTC is not wise. He notes that Bitcoin poses a national security threat to the US economy. The American stock broker goes further, adding that government officials squander the public’s funds to purchase the digital asset.

    BTC As a Reserve Asset

    Meanwhile, other states, like Texas and Pennsylvania, have filed similar legislation to establish Bitcoin reserves. On October 30, 2024, Florida Chief Financial Officer (CFO) Jimmy Patronis pushed to include BTC in state pension funds.

    The CFO also proposed that the State Board of Administration (SBA) could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.

  • Finally! FTX Customers Set to Get Payouts Starting Next Month

    Finally! FTX Customers Set to Get Payouts Starting Next Month

    Recently, blockchain analysts have detected several transactions involving defunct crypto exchange FTX, hinting at a potential payout to affected customers. A recent press release confirmed these suspicions, announcing that the bankrupt exchange’s “Court-approved Chapter 11 Plan of Reorganization” will become effective on January 3, 2025.

    The recovery efforts, led by John J. Ray III, the CEO of the FTX Debtors, have successfully recovered billions of dollars. The announcement noted that the plan’s effectiveness and the start of distributions reflect the success of these efforts.

    FTX Customers to Receive Payouts

    The initial distribution, expected to occur within 60 days of the effective date, will be limited to claim holders having relatively simple claims. By prioritizing these convenience classes, FTX can efficiently process and distribute funds to these claim holders first, while more complex or disputed claims are addressed separately.

    Notably, FTX has partnered with BitGo and Kraken to assist in distributing payouts to customers and creditors in supported regions. The exchange claims these partnerships will enable the efficient and secure distribution of funds. Additional distribution service providers may be onboarded in the future.

    To be eligible, customers and creditors must complete the Know Your Customer (KYC) verification, submit tax forms, and onboard with the selected distribution service providers, BitGo or Kraken. Transferred claims will only be eligible for distribution if they are processed and reflected on the official claims register maintained by the Notice and Claims Agent.

    The FTX Debtors will provide instructions for onboarding with the distribution service providers on the existing customer portal. The bankrupt exchange encourages customers to complete the necessary steps to begin receiving payouts promptly.

    Other Pending Bankruptcy Cases

    Terraform Labs, the company behind the collapsed Terra ecosystem, is proceeding with its bankruptcy plan. As part of the reorganization plans, Terraform Labs has agreed to pay up to $442.2 million to investors and other stakeholders.

    Mt. Gox, the once-prominent Bitcoin exchange that went bankrupt after a massive 2014 hack, has extended its repayment deadline for creditors to October 31, 2025. This move has relieved investors anticipating market disruptions, as earlier fears of a $4 billion Bitcoin sell-off in 2024 have now been pushed to 2025.

    Celsius Network, the crypto lending platform that filed for bankruptcy in July 2022, has recently announced a payout of $127 million to its creditors following its initial $2.5 billion distribution. The expected distribution will cover approximately 60% of the creditors’ claims. Despite opposition from some creditors, Celsius is working to finalize a reorganization plan.

  • Fake Uber Driver Steals Over $300,000 Crypto From Passengers

    Fake Uber Driver Steals Over $300,000 Crypto From Passengers

    A man has been arrested in Scottsdale, Arizona, on multiple felony charges for allegedly posing as an Uber driver and stealing over $300,000 in crypto from customers. The suspect, identified as Nuruhussein Hussein, was taken into custody on December 11.

    An Uber driver is an independent contractor who drives for the ride-hailing company Uber. They use their own vehicles to transport passengers who request rides through the Uber app.

    The $300K Crypto Theft

    According to court documents, Hussein targeted two victims, one in March and one in October, outside the W Scottsdale hotel near Camelback and Scottsdale roads. He allegedly pretended to be an Uber driver, calling out the names of supposed passengers, and then convinced them to hand over their phones. He would then transfer crypto from their Coinbase accounts.

    The victims reported that Hussein used two different methods of obtaining their phones. He would either claim his phone was dead or offer to help troubleshoot the Uber app. Once in possession of the phone, Hussein would quickly transfer the crypto. Although no weapon was seen, one of the victims reported that he made threats implying that he had a gun.

    Prosecutors pushed for a cash-only bond of $200,000, citing the level of skill shown in the fraud and the alleged threats made to one of the victims. The judge obliged and ordered that Hussein be placed under electronic monitoring after the settlement. The Uber scammer will also prohibited from leaving Maricopa County and using the internet.

    Although court documents indicate the thefts totaled around $223,000, the Scottsdale Police Department reported that the total was more than $300,000. The police have advised Arizona residents to be cautious when using ride-sharing services.

    In-Person Crypto Crimes on the Rise

    According to GitHub, there have been at least 19 recorded incidents of in-person crypto crimes in different countries this year. Recent cases include a Chinese man abducted for $1 million crypto ransom and a Bitcoin investor murdered over 3 BTC.

    The blockchain detective, ZachXBT, also claimed to have received multiple messages from victims of crypto home invasion thefts in Western Europe over the past few months. ZachXBT also shared a specific case where a victim was robbed of $4.3 million in crypto during a home invasion in June 2024.

  • BiT Global Sues Coinbase in $1B Lawsuit Over WBTC Delisting

    BiT Global Sues Coinbase in $1B Lawsuit Over WBTC Delisting

    Asset custody firm BiT Global has sued the American crypto exchange Coinbase, alleging anti-competitive practices. The lawsuit, filed in the Northern District of California by law firm Kneupper & Covey, seeks over $1 billion in damages.

    The wrapped Bitcoin (WBTC) custodian alleges that Coinbase’s decision to remove the token from its exchange was motivated by a desire to promote its rival product, cbBTC.

    Wrapped Bitcoin products, such as WBTC and cbBTC, allow users to unlock value in Bitcoin for use on other networks, such as Ethereum and Base. The user wraps their asset by depositing it into the wallet of a trusted custodian and subsequently receives a token on another blockchain. The original crypto is then held in trust for the user.

    Bit Global Sues Coinbase

    The lawsuit further alleged that Coinbase’s decision violates numerous state and federal laws, including antitrust laws. BiT Global argued that the exchange’s actions are anti-competitive and designed to stifle innovation in the crypto industry.

    Claiming that the case could have industry-wide implications, BiT Global’s attorney Kevin Kneupper said:

    “If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”

    Meanwhile, Coinbase publicly promoted cbBTC as “super strategic” and predicted it would surpass wBTC in supply within six months of launch. Citing this, the lawsuit alleged that Coinbase is attempting to push wBTC out of the United States crypto market to make way for its competing product, cbBTC. Interestingly, it’s been only three months since the token’s inception.

    The asset custody firm plans to pursue the lawsuit and seek damages over $1 billion. Commenting on this, Kneupper continued:

    “We think a jury will see this for exactly what it is…We plan to make sure the law is followed, and that cryptocurrency users get to choose which product they prefer.”

    Coinbase Plays Defensive

    According to Coinbase, the decision was not motivated by a desire to promote its competing product, cbBTC, as alleged by its opponent. Instead, the exchange claims the delisting resulted from a standard review process. However, BiT Global fired back, citing the exchange’s recent onboarding of various memecoins lacking fundamental value.

    The American exchange recently announced plans to delist Tether’s USDT stablecoin from its platform for European customers, citing compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA).

  • Asset Manager BlackRock Acquires 4,295 BTC ($429.5M) Amid Adoption Season

    Asset Manager BlackRock Acquires 4,295 BTC ($429.5M) Amid Adoption Season

    BlackRock, the world’s largest asset management firm, with over $11.5 trillion in assets under management (AUM), has acquired 4295 BTC worth $429.5 million. The current purchase further cements BlackRock’s growing footprint in the crypto asset market.

    The asset manager’s recent acquisition also highlights its confidence in bitcoin’s (BTC) potential as a store of value and a hedge against macroeconomic risks. The investment reflects a deliberate strategy by the management giant. BlackRock signals its confidence in the long-term growth of the crypto asset.

    Asset Managers Buying BTC

    BlackRock’s move comes amid a wave of institutional interest in crypto in BTC. For instance, Fidelity Investments recently doubled down on its commitment to crypto by adding over $196 million in BTC to its holdings. The move positioned the asset manager as one of the top dogs in the crypto space, with bitcoin forming a core component of its long-term investment strategy.

    Following the substantial investment, Fidelity also went a step further by adding more bitcoin to its portfolio. In the last four days, the asset manager purchased approximately 5,200 BTC, worth more than $524.6 million. Before the latest acquisition, Fidelity held 199,237 BTC, worth roughly $19.3 billion.

    BlackRock Becomes Largest Bitcoin Spot ETF

    BlackRock’s purchase aligns with the firm’s prior steps toward embracing crypto. In 2023, BlackRock filed for a Bitcoin spot exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), widely regarded as a turning point for mainstream crypto adoption.

    Early this year, the SEC approved a Spot Bitcoin ETF for BlackRock. The management firm became the world’s largest Bitcoin ETF, surpassing Grayscale’s Bitcoin Trust (GBTC).  At the time, BlackRock held approximately $19.68 billion worth of BTC.

    Amid the latest purchase, BTC was trading at over $100,400, with a market cap of over $1.9 trillion. In the past few days, the crypto asset has traded slightly above the $100,000 price level and pulled back to the $97-$99,000 price range.  

    Bitcoin as Reserve Asset

    Meanwhile, the city council of Vancouver, Canada, has recently embraced BTC. The proposal suggests allocating some of the city’s financial reserves to Bitcoin. It cites Bitcoin’s potential as a hedge against inflation and a means to promote innovation and economic growth. The move aims to position Vancouver as a blockchain and crypto innovation hub.

    In addition, the return of President-elect Donald Trump has partially fueled the move, which is seen as a step towards embracing innovation.

  • Vancouver City Council Accepts Proposal for Bitcoin Adoption

    Vancouver City Council Accepts Proposal for Bitcoin Adoption

    The city council of Vancouver, Canada, has passed the motion to become a “Bitcoin-friendly city.” The return of United States President-elect Donald Trump has partially driven the move, which is seen as a step towards embracing innovation.

    Vancouver Votes for Bitcoin

    The proposal suggests allocating a portion of the city’s financial reserves to Bitcoin. It cites Bitcoin’s potential as a hedge against inflation and a means to promote innovation and economic growth. The move aims to position Vancouver as a blockchain and crypto innovation hub.

    The city’s Mayor, Ken Sim, has been a vocal advocate for Bitcoin, calling it “the greatest invention ever in human history.” He believes that conventional fiat currency will eventually become obsolete and that Bitcoin’s value will increase significantly. Sim’s enthusiasm for Bitcoin has been evident since he announced the motion in late November.

    Vancouver’s decision to adopt a “Bitcoin-friendly” policy is part of a broader trend of global interest in crypto. With other countries, provinces, and states exploring the use of Bitcoin, Vancouver wants to get ahead of the curve. The city’s reputation as a hub for digital innovation makes it an ideal location for embracing new technologies like Bitcoin.

    Meanwhile, the motion approval does not mean the city is now committed to immediate crypto investments or payments. Instead, the council has directed staff to investigate potential crypto uses and explore the possibility of making Vancouver a Bitcoin-friendly City.

    Vancouver’s Decision Raises Concerns

    The city’s decision to become a Bitcoin hub has also raised concerns among experts, who point to the asset’s price volatility and the regulatory challenges associated with investing in crypto.

    Vancouver City Council members are divided on the proposal to explore the use of Bitcoin in municipal finances. Councillor Peter Meiszner voted in favor but expressed skepticism about the city investing public money in crypto. He highlighted the difference between individual residents investing their money and the city’s financial responsibilities.

    On the other hand, Councillor Pete Fry opposed the motion, citing concerns about Bitcoin’s potential use for money laundering. He pointed out that the Vancouver Police Department had previously recommended banning Bitcoin ATMs due to money laundering risks. FINTRAC, the Canadian financial regulator, recently warned about the same issue in May.

    Embracing Bitcoin could attract new businesses and talent to the city, driving innovation and economic growth. As Vancouver explores the use of Bitcoin, it will be closely watched by other cities, countries, and investors worldwide who may follow suit.

  • Microsoft Shareholders Vote Against Bitcoin Investment Proposal

    Microsoft Shareholders Vote Against Bitcoin Investment Proposal

    Microsoft shareholders have voted against a proposal to invest directly in Bitcoin, signaling a cautious approach to crypto adoption by one of the world’s largest technology companies.

    The proposal was made during Microsoft’s shareholder meeting by the National Center for Public Policy Research (NCPPR), a pro-free-market think tank based in Washington, D.C., which sought to diversify the company’s investment portfolio by adding Bitcoin to its reserves.

    Shareholders Meet For BTC Proposal

    The initiative was spearheaded by a group of shareholders advocating for the company to follow the lead of companies like Tesla and MicroStrategy, which have integrated Bitcoin into their corporate balance sheets.

    Despite the backing from some investors, the proposal faced significant resistance. Most shareholders voted against the initiative, citing concerns over bitcoin’s volatility, regulatory uncertainty, and environmental impact.

    Following the refusal, the NCPPR proposed using between 1% and 5% of the firm’s profits to acquire bitcoin. To conclude, if diversifying the firm’s balance sheet by including Bitcoin is in the best long-term interests of shareholders, the proposal demanded that the tech giant conduct a thorough assessment.

    Big Firms Buying BTC

    The decision reflects a broader trend among large corporations that have remained hesitant to embrace Bitcoin despite its growing mainstream acceptance. While some firms like MicroStrategy have made headlines with their crypto investments. Some countries have also joined in making BTC their reserve asset.

    The business intelligence company recently went BTC shopping by purchasing 21,550 BTC, valued at $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this substantial buy, the company boasts over 2% of the Bitcoin supply.

    According to the company’s official filing with the Securities and Exchange Commission (SEC), MicroStrategy entered into a sales agreement in October. The deal allows the firm to issue and sell shares of its class A common stock with an aggregate offering price of up to $21 billion.

    In light of bitcoin’s integration as a treasury asset, Amazon shareholders urged the company to consider the digital asset for treasury holdings. The proposal recommends that the multinational technology company consider allocating at least 5% of its treasury holdings to Bitcoin.

    Although Bitcoin is a highly volatile asset, the NCPPR argued that Amazon’s stock has also experienced volatility in the past, and therefore, adding the leading crypto asset to the tech firm’s treasury holding is in the “best long-term interest of shareholders.”