Из жизни альткоинов

In a major development, the co-founders of Samourai Wallet, Keonne Rodriguez, and William Lonergan Hill, were arrested by US authorities on charges of operating an unlicensed money-transmitting business and conspiracy to commit money laundering. 

The duo allegedly facilitated the laundering of over $100 million in criminal proceeds, including funds originating from the Silk Road and Hydra Market.

Samourai Wallet’s Alleged Criminal Activities

The arrest of Rodriguez and Hill comes as a result of an extensive investigation led by the United States Department of Justice (DOJ), with collaboration from the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). 

The indictment unsealed by the DOJ reveals that Samourai Wallet, a cryptocurrency mixing service, allegedly conducted more than $2 billion in “unlawful transactions”, earning millions of dollars in fees.

According to the DOJ’s press release on the matter, Samourai Wallet used various features to enable anonymous financial transactions, attracting criminals seeking to engage in “large-scale” money laundering and sanctions evasion. 

‘Whirlpool’ And ‘Ricochet’ Features Under Scrutiny

It is alleged that the cryptocurrency mixing service offered by Samourai Wallet, known as “Whirlpool,” facilitated the coordination of cryptocurrency exchanges between groups of users to prevent the tracing of criminal proceeds on the blockchain. 

Additionally, Samourai Wallet provided a feature called “Ricochet,” allowing users to add unnecessary intermediate transactions to allegedly obfuscate the origin of cryptocurrency batches. 

These features collectively processed over 80,000 BTC (worth over $2 billion) since their introduction, with Samourai Wallet collecting substantial fees estimated at $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions, as disclosed by the DOJ.

As the legal proceedings unfold, Rodriguez has been arrested and is expected to appear before a US Judge in the Western District of Pennsylvania, while Hill was arrested in Portugal, and the United States intends to seek his extradition for trial. They face up to 5 years in prison. 

Featured image from Shutterstock, chart from TradingView.com 

A crypto expert has dropped an information bomb on the crypto community, exposing Market Makers (MMs) for their alleged influence in cryptocurrency price movements. The analyst has unveiled a series of strategies investors can apply to take advantage of this supposed manipulation, highlighting ways to recognize tokens involved with market makers and how to profit from it. 

Market Makers Manipulate Crypto Price Movements

A crypto analyst identified as ‘Rekt Fencer’ on X (formerly Twitter) has exposed different ways crypto market makers purportedly influence the prices of cryptocurrencies in the market. 

For clarity, market makers are firms or individuals who facilitate cryptocurrency trades by providing liquidity to the market through buy and sell orders. The analyst highlighted that market makers play a critical role in Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). 

According to Rekt Fencer, market makers use all sorts of unique techniques to allegedly manipulate a token’s price. The crypto analyst revealed multiple strategies used by these liquidity providers to control a bull and bear market.

In the bull run, market makers supposedly influence token prices by allowing investors to buy as many tokens as they want. They also create a sense of Fear Of Missing Out (FOMO) among investors when they observe price charts that depict significant price increases. 

Similarly, during bear markets, these liquidity providers acquire tokens at bottom prices to prepare for the next bull run. Additionally, they work towards generating an adequate amount of daily trading volume on CEXs to prevent a token from being delisted.  

The crypto analyst shared distinct chart patterns for investors and traders to identify a market maker’s influence on token price movements. As an illustration, he cited the case of popular meme coin Floki (FLOKI), which had worked with DWLabs, a market maker, to allegedly push the token up by 772% in just three weeks.  

How To Spot Tokens Working With Market Makers

According to Rekt Fencer, an investor can spot a cryptocurrency associated with a market maker if the token experiences significant price surges just before a major news hits. He also revealed that a consistently increasing trading volume without any big price changes was another major indicator.  Additionally, repeated chart patterns such as frequent pumps and dumps would suggest market manipulation in a cryptocurrency. 

The crypto expert disclosed that market makers tend to exploit the psychological tendencies of investors, particularly during prolonged market declines, instilling fear and triggering panic selling among token holders. A price rebound back to the normal range then follows these sell-offs, often indicative of a manipulative scheme. 

Rekt Fencer has unveiled a strategy for investors and traders to exploit the alleged manipulative tactics employed by market makers. He suggests buying tokens during accumulation phases and selling them during distribution stages to potentially secure profits. Additionally, he provided a list of tokens currently in their accumulation phases, implying that investors could consider purchasing these tokens for possible returns.

In a significant development for the Bitcoin (BTC) market, Hong Kong is poised to witness the commencement of trading for several spot Bitcoin ETFs on April 30th. 

This milestone follows the successful approval and subsequent trading of Bitcoin ETFs in the United States earlier this year under the regulatory purview of the Securities and Exchange Commission (SEC). 

With institutional adoption on the rise and Bitcoin reaching its all-time high of $73,700 in March, the forthcoming launch of these ETFs in Hong Kong holds great promise for the cryptocurrency market.

Fee Battle Looms 

The Hong Kong Securities and Futures Commission (SFC) made a noteworthy announcement on April 15th, approving multiple Spot Bitcoin and Ethereum ETFs for trading. This regulatory approval has paved the way for the trading of Bitcoin ETFs in Hong Kong. 

Industry experts Eric Balchunas and James Seyffart from Bloomberg anticipate an ensuing fee war as the ETF issuers strive to attract the largest number of clients.

Balchunas and Seyffart predict a potential fee war in Hong Kong as the Bitcoin ETFs prepare for launch. Harvest Fund, for instance, plans to enter the market with a full fee waiver and the lowest fee of 0.3% following the waiver period. 

As seen in the chart above, three major players in the market, ChinaAMC, Harvest Fund, and Bosera, are identified with fees ranging from 0.99% to 0.3% (post-waiver) and 0.60%, respectively, all accompanied by cash redemptions.

Revised Bitcoin ETFs Projections

The competitive fee structures of these Bitcoin ETFs are expected to generate increased interest among investors, potentially attracting higher assets under management. 

Balchunas acknowledges the relatively lower fee levels, describing them as a positive sign for the market. Lower fees are likely to enhance the appeal of these index funds and drive up their assets under management (AuM).

While optimism surrounds the launch of Bitcoin ETFs in Hong Kong, Eric Balchunas offers a cautious analysis of potential inflows into this new market. 

Blachunas suggests that these ETFs may lag behind their US counterparts, which have already achieved a trading volume exceeding $200 billion since their launch in January. 

Balchunas has revised his initial forecast, estimating that these Hong Kong ETFs could attract up to $1 billion in assets under management within the first two years of operation, doubling his previous projection of $500 million.

At the time of writing, the price of BTC stands at $66,000, reflecting a 1% decline over the past 24 hours and a nearly 3% decrease over the past fourteen days. 

Despite this recent trend, the imminent launch of ETFs in the Hong Kong market can significantly impact BTC’s price, potentially propelling it to higher levels and even retesting its current all-time high zone.

Featured image from Shutterstock, chart from TradingView.com 

On-chain data suggests the selling pressure from the Bitcoin miners and HODLers has been drying up, a sign that could be positive for the asset.

Bitcoin LTHs Stop Selling, While Miner Distribution Slows Down

As explained by analyst James Van Straten in a post on X, two BTC groups in particular have been a source of major sell-side pressure in the market recently: the long-term holders (LTHs) and miners.

The LTHs refer to the investors who have been holding their coins since more than 155 days ago. These holders are considered the resolute side of the sector, as they rarely sell regardless of whatever is going on in the wider market.

The rally to the new all-time high this year, however, managed to entice even these HODLers into selling their coins and harvesting the profits that they had earned over their long holding time.

According to Straten, though, the selloff from these investors has petered out recently. “LTHs have been relatively flat for the past few weeks, as BTC ranges, which is a good sign that profit-taking is subsiding,” notes the analyst.

Unlike the LTHs, however, the miners, which represent the other major source of selling pressure in the market, have still continued to distribute recently. Nonetheless, as the chart below would suggest, the selling from these chain validators has at least been going down in scale.

The graph shows the data for the monthly balance change for the miners as a whole. This cohort had turned into a seller back in November and had kept up the selling at a more or less consistent rate over the next few months, as the monthly balance change had maintained around the same notable red values.

Recently, however, the metric has been trending up and although it’s still negative, the latest value has been about the lowest since the selloff began, as the miners sold just 1,300 BTC over the past 30 days.

The analyst suggests that this group could even turn into a net accumulator soon, as “the halving forces miners to become more efficient. Weak miners purged, less selling into the market.” The halving here naturally refers to the periodic event on the BTC network where block rewards are permanently slashed in half.

The block rewards are what miners receive for solving blocks on the network and serve as the main component of their revenue, so these events have significant consequences for this group. Halvings occur approximately every four years and the latest one took place just a few days back.

With selling pressure from these two cohorts, who had been actively distributing recently, now drying up, Bitcoin perhaps may finally be able to regain its bullish push from earlier, at least to some degree.

BTC Price

Bitcoin has been making some recovery from its recent lows, but the overall picture is that the asset is still consolidating inside its recent range as it trades around $66,600.

A crypto analyst has unveiled a bullish technical indicator for the popular doggy-themed meme coin, Dogecoin, predicting that the cryptocurrency could potentially outperform the world’s largest cryptocurrency, Bitcoin.  

Dogecoin Shows Signs Of A Bullish Breakout

In a recent X (formerly Twitter) post, crypto analyst, Kevin expressed optimism regarding Dogecoin’s recent price outlook, forecasting the cryptocurrency’s potential to surpass Bitcoin’s 2024 gains. Sharing a Dogecoin versus Bitcoin price chart, Kevin revealed that the doggy-themed cryptocurrency was presently “consolidating in a golden pocket.”

This term refers to a specific price range or numerical percentage that signifies an area of support or resistance, historically used to indicate a potentially slow or aggressive upward trend. 

According to Kevin, DOGE’s price is currently positioned “above all bull markets uptrending Market Averages (MAs)”. This means that the cryptocurrency is presently holding steady and demonstrating resilience amidst present market volatility and fluctuations. 

The analyst has stated that if Dogecoin successfully sustains its current momentum, the cryptocurrency could rise to unprecedented heights, possibly outperforming Bitcoin. 

Since the beginning of the year, Bitcoin has surged by over 143.64%, according to CoinMarketCap. Before the halving event, in March, the cryptocurrency experienced exponential gains that have propelled its price to new all-time highs above $73,000. At the time of writing Bitcoin is also trading at a price of $66,699, marking a $0.90 increase in the past 24 hours. 

If Dogecoin succeeds in outperforming Bitcoin, it would potentially place the doggy-themed meme coin among the top gainers in the second quarter of the 2024 crypto market. 

DOGE Price Update

The price of Dogecoin has been performing relatively well despite the recent market volatility and low performance of Bitcoin and other top cryptocurrencies in the space. Following the meme coin mania earlier in February and March, numerous cryptocurrencies including Dogecoin had surged considerably.

However, as investors’ interest in meme coins waned and began to shift to other cryptocurrencies, many coins had retraced, plummeting and reverting to their lower value. 

As of writing, Dogecoin’s price is $0.16, reflecting a 24-hour increase of 2.73%. The cryptocurrency has been on an upward trend since the past week, marking a 3.41% surge in its value. 

Dogecoin’s trading volume has also had a noticeable uptick, increasing by 5.21% and recording a total volume of more than $1.1 billion. Its market capitalization is also up by 2.74%, amounting to $23.3 billion. 

Изучать новое явление, которого никогда ранее не существовало, – бывает сложно. Рождается ряд недостоверных догадок, люди начинают верить самому неправдоподобному. Точно та же история произошла со спотовыми биржевыми фондами на биткоин.

Electric vehicle giant Tesla faces a financial slowdown, reporting a 15% dip in revenue and a nearly 50% plunge in adjusted earnings for the first quarter of 2024. This comes alongside the company’s first negative cash flow since early 2020. However, in a surprising move, Tesla has held onto its entire Bitcoin portfolio, signaling a potential shift in its cryptocurrency strategy.

Tesla’s Bitcoin Stance: From Selling Spree To HODLing

Previously, Tesla had a more fluid relationship with Bitcoin. In 2022, the company made headlines by selling off 75% of its holdings. This move coincided with a period of market volatility for Bitcoin.

Q1 Earnings Call starting in ~10 mins https://t.co/NSPNDuqW5D

— Tesla (@Tesla) April 23, 2024

However, Tesla’s recent decision to forgo further sales suggests a change of heart. Industry analysts believe Tesla might be embracing a long-term “HODLing” strategy, a popular term in the cryptocurrency community referring to holding onto digital assets for the long haul. This aligns with the approach of companies like MicroStrategy, which has been a vocal proponent of Bitcoin and continues to accumulate it.

Aligning With Industry Titans: Betting On The Crypto’s Future

Tesla’s shift in strategy could be due to several factors. The recent Bitcoin halving event, which cuts the number of new coins entering circulation every four years, might have bolstered confidence in its long-term value proposition.

Additionally, with BTC reaching a record high of $73,250 in March, Tesla’s existing holdings have seen a significant appreciation. This potential for future growth could be a key motivator for holding.

Tesla’s decision positions them among the leading corporate holders of Bitcoin. Currently, the company sits as the third-largest publicly traded company owner of the cryptocurrency, trailing only MicroStrategy and Marathon Digital Holdings. Combined with its subsidiary SpaceX’s holdings, estimates suggest Tesla and SpaceX hold over $1 billion worth of Bitcoin.

Market Volatility And Tesla’s Future

While Tesla’s renewed faith in the top crypto asset is interesting, some analysts remain cautious. The cryptocurrency market, despite recent highs, is known for its volatility. A sudden downturn could see the value of Tesla’s holdings plummet, impacting their overall financial health.

Tesla’s own financial struggles could influence their future crypto strategy. If the company’s cash flow situation doesn’t improve, they might be forced to sell their holdings to generate liquidity.

Overall, Tesla’s decision to hold onto Bitcoin presents a fascinating case study. It highlights the growing institutional interest in cryptocurrency and the potential for major corporations to play a significant role in shaping its future. However, with significant market volatility and Tesla’s own financial challenges, it remains to be seen if this renewed focus on Bitcoin will pay off in the long run.

Featured image from Pexels, chart from TradingView

As optimism around Ethereum Spot Exchange-Traded Funds (ETFs) continues to dwindle, Grayscale Investments, the world’s leading digital asset manager, has filed an S-3 Registration Statement for its Ethereum Trust, marking a major advancement in its Ether investment services.

Grayscale Ethereum Trust Sets Stage For Growth

Popular Fox Business journalist Eleanor Terrett reported that the company filed the S-3 registration statement with the United States Securities and Exchange Commission (SEC), requesting to convert its Ethereum Trust into a spot ETH ETF. 

According to Terrett, Grayscale’s Ethereum Trust product is already registered with the SEC, thus, it does not need to file an S-1 form like other ETH ETF issuers or applicants such as Van Eck, Blackrock, Ark Invest, Hashdex, Invesco Galaxy.

With the recent filing, Grayscale has now submitted all the necessary paperwork for the regulatory watchdog to consider its ETH ETF application and provide a ruling. However, the document has not yet been made accessible to the general public.

Terret also reported that the asset firm has filed for an S-1 mini Ethereum ETF under the ticker ETH, similar to that of its Bitcoin mini-me ETF filed under the ticker BTC. In March, the asset manager applied to the SEC for approval to spin out a portion of GBTC shares in order to launch the new mini-me BTC ETF.

Specifically, Grayscale came up with the strategy to halt its ever-increasing GBTC outflows since the approval of BTC ETFs in the US. However, the mini-me Bitcoin ETF has yet to receive a green light from the agency.

ETF Shares To Be Listed On NYSE Arca

It is noteworthy that the company filed the S-3 form with the Commission under the Securities Act of 1933. The firm made the move after NYSE Arca filed Form 19b-4 for the Grayscale Ethereum Trust.

With the approval of NYSE Arca’s application on form 19b-4 to list shares and the effectiveness of form S-3 to register the shares, Grayscale plans to list its ETH ETF on NYSE Arca under the ticker ETHE and issue shares continuously. These shares will be made available solely through a prospectus method.

Although the shares have been registered with the SEC through a registration statement, they have not yet been deemed operational. Prior to when the registration statement takes effect, neither the shares nor purchase bids may be accepted, and any sale of these shares will be deemed unlawful.

By submitting the S-3 registration statement, Grayscale hopes to improve regulatory compliance and lucidity for its ETH Trust. As a result, it will provide prospective investors with more assurance and clarity when negotiating the intricacies of cryptocurrency investments. 

This move demonstrates Grayscale’s proactive response to the rising demand from institutional and retail investors for Ethereum exposure, enhancing its stand as a leader in the digital asset market.

Бывший генеральный директор крупнейшей криптовалютной биржи мира Binance отправил письмо в занимающийся его делом суд западного округа Вашингтона. В письме бизнесмен объявил, что не хотел бы впредь встречаться с системой уголовного правосудия США.

In a nuanced critique published on X, a prominent Dogecoin contributor known as @Mishaboar has issued a significant warning concerning the trading of meme coins, especially those that secure listings on cryptocurrency exchanges almost immediately after their release. The contributor, who is a key figure within the Dogecoin community, used his platform to outline the potential pitfalls that unsuspecting investors might face.

The Risks Of Memecoins

@Mishaboar expressed deep concerns regarding the current trend in the crypto markets where meme coins quickly achieve market capitalizations in the millions or even billions of dollars, facilitated by almost instantaneous listings on major exchanges. He stated, “There is an explosion in tokens that go up to crazy market caps, with instant listings (within days) on large exchanges (sometimes in spite of red flags).” This phenomenon, he argued, typically indicates significant backing from venture capitalists (VCs) and crypto exchanges themselves.

According to @Mishaboar, the rapid listing of these tokens is often prearranged through partnerships between token creators and crypto exchanges. “These big players usually hold a large portion of the tokens and may strike deals with exchanges before the tokens launch,” he explained. This arrangement allows them to profit from initial trading surges, while also increasing the nominal liquidity on their platforms at minimal cost. Such practices raise questions about the transparency and fairness of the token launch and listing process.

He also highlighted the role of influencers in shaping the market perception of these tokens. “Influencers tend to create a narrative around these tokens claiming they are ‘community run’, that they are your ‘frens’, but this is often really not the case,” @Mishaboar noted. He argued that these narratives are crafted to mask the centralized, profit-driven nature of these token launches, misleading the community about the true character and governance of these tokens.

Revisiting past controversies, @Mishaboar brought up unresolved questions about potential insider trading activities of BOME, especially regarding how platforms like Binance quickly list new and risky tokens. “I have a question regarding Binance’s involvement in the launch of certain tokens. Specifically, does Binance have pre-launch agreements with any of the artists or creators of these tokens?” he asked. This question aims to uncover whether there’s a deliberate strategy to manage risks for users or if the rapid listing process inherently increases the risks for them.

Expanding on the general risks associated with memecoins, @Mishaboar differentiated between various types of tokens. He emphasized that while some memecoins might have a community aspect, others are “100% VC backed” and are typically those that see instant exchange listings. “Not all tokens are the same,” he declared, urging traders to recognize the high-risk nature of these investments.

Dogecoin’s Status And Future Outlook

Addressing a user’s concerns about Dogecoin’s projects and asset status, @Mishaboar provided reassurances about the ongoing development and stability of Dogecoin’s network. “Dogecoin’s network is chugging along just fine, and 1.14.7 was released a couple of months ago,” he confirmed. He highlighted the continuous efforts of volunteer developers who have significantly reduced technical debt since 2021, improving the overall health of the network.

He added, “We will have new releases of Dogecoin Core (the reference implementation) and there are companies and organizations and indie devs building stuff for it. As for companies (e.g. like X or Tesla) integrating it into their platforms, this is really up to these companies and the laws they must comply to. Technically there is nothing missing in Dogecoin that would prevent them from adopting it.”

In concluding his extensive remarks, @Mishaboar reiterated the importance of vigilance and informed decision-making in the cryptocurrency market. He reminded his audience that despite the allure of quick profits, the volatile nature of memecoins means that trading them is akin to gambling, with risks varying significantly across different tokens and market caps.

At press time, Dogecoin traded at $0.1615.

Сервис Coin ATM Radar сообщил, что Австралия поднялась на третье место в мире по количеству установленных криптоматов. По состоянию на 24 апреля в стране действует 1002 активных устройств.

Эксперты аналитической платформы K33 Research сделали предположение, что раздача кредиторам хранившихся на рухнувшей бирже Mt.Gox 142 000 биткоинов может потрясти рынок и перепугать криптоинвесторов.

На фоне попыток властей Нигерии объяснить проблемы в экономике действиями криптоинвесторов неизвестные распространили фейковое обещание центробанка (CBN) этой африканской страны начать блокировать банковские счета пользователей четырех крупных криптобирж.

Генеральный директор Tether поделился мнением о халвинге, спотовых биржевых фондах на биткоин и развитии собственного стейблкоина USDT.

Американская компания Tether заявила, что будет блокировать все транзакции, совершаемые в стейблкоинах USDT организациями и частными лицами, вошедшими в санкционный список Управления по контролю за иностранными активами Министерства финансов США (OFAC).

Amidst economic turmoil and stringent regulations, citizens in countries like Argentina and Venezuela have turned to Bitcoin as a lifeline. The International Monetary Fund (IMF) examines how individuals in these nations are leveraging Bitcoin to manage their finances, bypassing capital controls through off-blockchain transactions.

This trend underscores the resilience and adaptability of cryptocurrencies in providing financial autonomy to individuals in challenging economic environments.

The IMF has released a groundbreaking report titled “A Primer on Bitcoin Cross-Border Flows,” shedding light on the increasing relevance of the world’s most popular cryptocurrency in facilitating international financial exchanges.

Understanding The Dynamics Of Bitcoin Transactions

The report also uncovers a fascinating correlation between Bitcoin flows and traditional economic markers. Contrary to conventional wisdom, cryptocurrency-specific factors such as market volatility and user sentiment exert a stronger influence on crypto transactions than traditional indicators.

This suggests that cryptocurrencies, with their unique adoption dynamics, possess the potential to serve as a hedge against conventional financial risks, offering individuals and businesses a novel avenue for diversification and risk management.

Navigating Regulatory Challenges In The Crypto Landscape

While recognizing the promising role of Bitcoin in fostering cross-border commerce and financial inclusion, the IMF report sounds a note of caution regarding regulatory oversight. The inherent anonymity of cryptocurrency transactions raises concerns about their potential misuse for illicit activities such as money laundering.

Consequently, the report underscores the imperative for global cooperation in establishing clear and consistent regulations to mitigate risks and foster a secure environment for cryptocurrency transactions.

The call for comprehensive cryptocurrency regulation echoes across borders, as policymakers grapple with the complexities of overseeing a rapidly evolving financial ecosystem. Clear and transparent regulations not only address the risks associated with Bitcoin and other cryptocurrencies but also lay the groundwork for a more predictable and stable financial environment.

By striking a delicate balance between fostering innovation and safeguarding against potential abuses, regulators can pave the way for continued growth and innovation in the cryptocurrency industry.

Embracing The Potential Of Bitcoin

As Bitcoin’s influence on global finance continues to expand, the IMF report serves as a timely reminder of the opportunities and challenges associated with cryptocurrencies. While Bitcoin holds immense promise in facilitating cross-border transactions and promoting financial inclusion, effective regulation is essential to mitigate risks and ensure the integrity of the financial system.

By embracing the potential of Bitcoin while proactively addressing regulatory challenges, policymakers can harness the transformative power of cryptocurrencies to shape a more inclusive and resilient global economy.

Featured image from Pexels, chart from TradingView

Changpeng Zhao, the founder and CEO of Binance, the largest cryptocurrency exchange globally, faces a sentencing recommendation of three years imprisonment from the US Department of Justice (DOJ). This follows his guilty plea last year to charges concerning severe lapses in the company’s anti-money laundering (AML) controls, as mandated by the US Bank Secrecy Act.

A “Message” To The Binance Founder And The World

Zhao’s explicit disregard for US regulations was underscored by the DOJ in a scathing sentencing memorandum. They quoted Zhao’s own words, highlighting his approach to legal compliance: “Better to ask for forgiveness than permission,” suggesting a strategic bypass of regulatory requirements to expedite Binance’s market expansion and profitability.

The DOJ laid out the case against Zhao, describing how his decisions to flout US laws were integral to Binance’s business strategy, which aggressively targeted US customers without adhering to requisite legal standards. “Zhao’s willful violation of US law was no accident or oversight. He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” the US Attorney’s Office stated.

According to the DOJ, Zhao’s actions enabled Binance to operate a ‘Wild West’ model of cryptocurrency exchange, inviting illicit financial flows. The memorandum notes, “As a result, Zhao is one of richest people in the world and a celebrity in the crypto industry. Zhao bet that he would not get caught, and that if he did, the consequences would not be as serious as the crime.”

The prosecution detailed how Zhao’s failure to implement an effective AML program led Binance to process hundreds of millions of dollars worth of transactions violating US sanctions against Iran and other countries, quantifying the total at approximately $898 million.

The sentencing memorandum emphasizes the gravity and scale of these violations, stating, “Zhao knew that his decision not to implement an effective AML program would result in Binance facilitating transactions between US users and users in Iran and other sanctioned countries and regions in violation of US law.”

In light of these findings, the DOJ is recommending a sentence that would go beyond the federal guidelines, suggesting a 36-month term of imprisonment to “reflect the seriousness of the offense, promote respect for law, afford adequate deterrence, and serve as just punishment for Zhao’s criminal acts.”

Zhao’s sentencing is poised to set a precedent in the regulatory oversight of the crypto industry, particularly concerning compliance with US financial laws. The outcome will likely resonate across the crypto landscape, potentially reshaping how exchanges operate in compliance with US regulations. The DOJ’s closing remarks in the memorandum drive home the broader implications of Zhao’s sentencing: “The sentence in this case will not just send a message to Zhao but also to the world.”

The final sentencing decision, expected to be delivered on April 30, marks a crucial juncture for the legal scrutiny of crypto operations within the United States.

At press time, BNB traded at $607.7.

Аналитики криптовалютной биржи Bitfinex предположили, что вскоре после состоявшегося 20 апреля халвинга биткоина спрос на цифровой актив превысит предложение в пять раз. Причина: ежедневный объем эмиссии стал сокращаться.

Криптобиржа CoinEx выставила на аукцион «эпический» сатоши. Клиенты платформы могут делать ставки на странице аукциона, который продлится до 26 апреля 2024 года.

Издание The Wall Street Journal (WSJ) со ссылкой на нормативные документы сообщило, что инвестиционная компания Grayscale подала в SEC заявку на создание нового продукта под названием Ethereum Mini Trust.