Из жизни альткоинов

The US Department of Justice (DOJ) has brought to light a new digital asset fraud scheme, culminating in the sentencing of a crypto CEO to almost five years in prison. 

Travis Ford, the CEO, co-founder, and head trader of Wolf Capital Crypto Trading, was found guilty of orchestrating a crypto investment fraud conspiracy. Ford, hailing from Glenpool, Oklahoma, is said to have played a crucial role in raising $9.4 million from around 2,800 investors through false promises of high returns.

Promising Unrealistic Returns

According to the Department of Justice, Ford’s fraudulent activities spanned from January 2023 to August 2023, during which he misrepresented himself as a skilled trader capable of delivering exceptional daily returns ranging from 1% to 2% (equating to approximately 547% annually). 

Despite his guilty plea to one count of conspiracy to commit wire fraud, Ford confessed that achieving such consistent returns was implausible. 

Instead, the crypto executive and his accomplices utilized what the DOJ described as deceptive tactics to lure unsuspecting investors, misappropriating and diverting their funds for personal gain.

Simultaneously, there has been a surge in global efforts towards regulating digital assets, spearheaded by President Donald Trump’s pro-crypto stance. 

Governments worldwide, including the US and China, are intensifying crackdowns on cryptocurrency-related cross-border crimes as a result, particularly targeting scam networks operating in Southeast Asia.

Crypto Fraud Hotspots

Local media reports indicate that regions bordering Thailand, Myanmar, Laos, and Cambodia have transformed into hotspots for online fraud operations. 

Syndicates operating in these areas reportedly employ various tactics to coerce victims into investing in fraudulent schemes, often involving the transfer of funds through digital assets like Bitcoin (BTC), Ethereum (ETH), or stablecoins, followed by intricate money-laundering processes.

Despite the increasing mainstream adoption of digital assets in financial sectors, the report indicated that cryptocurrencies continue to play a significant role in sophisticated criminal enterprises. 

However, recent actions, such as the seizure of $13.4 billion worth of Bitcoin from Chen Zhi, a Cambodian tycoon with Chinese origins, underscore the global efforts to combat crypto-related crimes.

Additionally, the US DOJ’s establishment of a Scam Center Strike Force signifies a pivotal initiative aimed at combating crypto investment fraud targeting Americans. 

This move marks a significant step in the US government’s vision to confront transnational criminal networks head-on, as highlighted in a report by blockchain analytics firm TRM Labs. 

The DOJ revealed that Southeast Asian scam syndicates defraud Americans of nearly $10 billion each year. This emphasizes the urgency of addressing such criminal activities, especially given the progressive US legislation promoting the growth and adoption of digital assets.

Featured image from DALL-E, chart from TradingView.com 

Crypto pundit Vincent Van Code has explained why companies shouldn’t custody their XRP holdings amid the rise in treasury companies. As part of his comments, he advocated that these companies gain the token exposure to ETFs and other regulated wrappers rather than holding the coins. 

Pundit Explains Why Companies Should Avoid XRP Custody

In an X post, Vincent Van Code stated that companies accidentally turn themselves into a bank, security firm, and a regulated financial institution overnight, the moment they decide to self-custody their XRP. He further remarked that the bill for this mistake is “massive,” as it has some repercussions. 

The crypto pundit noted that most companies think that holding their own crypto tokens is the same as holding cash in a bank account. However, he explained that they are not the same as custodying XRP is one of the “most complex, expensive, compliance-heavy things” an organization can do. Vincent Van Code then used the altcoin as a case study. 

He stated that to self-custody at a large scale, companies are not just storing a seed phrase but are now operating a regulated asset environment. The crypto pundit explained that this exposes these companies to annual audits, SOC2 controls, and cold storage infrastructure. They would also have to worry about key ceremony documentation, segregation of duties, insider threat mitigation, and round-the-clock monitoring. 

Other Implications Of Custody

Vincent Van Code further mentioned that companies looking to self-custody their XRP will need incident response teams, a compliance officer, a risk team, internal policies, board oversight, and a full suite of legal and operational safeguards that they must continually maintain. He further highlighted the cost implications of implementing such safeguards. 

The crypto pundit revealed that the annual cost for a proper crypto custody program could easily hit seven figures. He noted that external audits alone cost between $250,000 and $500,000 annually, once these companies factor in SOC2 Type II, penetration testing, cyber insurance, regulatory reporting, and chain-of-custody reviews. 

Vincent Van Code also factored in staff that these companies will need to run the self-custody of their XRP assets. Meanwhile, these companies have to bear the risk and liability when something breaks, or a regulator asks questions, or the auditor finds a gap in the accounts. 

The Best Way For Institutional Adoption

Vincent Van Code stated that the real path to large-scale, multi-billion-dollar XRP adoption is not through thousands of companies holding the token. Instead, he claimed that it is through regulated wrappers, such as spot XRP ETFs and institutional treasury firms such as Ripple-backed Evernorth. 

He explained that these vehicles absorb the compliance load, audit burden, operational risk, and infrastructure costs. Vincent Van Code further remarked that they allow companies to hold XRP exposure without becoming a bank. The crypto pundit added that if mainstream enterprises are going to adopt the token globally, it will be through these structures and not DIY custody operations that could collapse under their complexity.

Securitize and Binance have jointly announced on Friday that the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) will now be accepted as off-exchange collateral for trading on Binance. 

BlackRock’s BUIDL Gains Momentum

Fortune reported that the collaboration with Binance is expected to boost the popularity of BUIDL, a token launched by the world’s largest asset manager, BlackRock, last year. Since its inception, BUIDL has witnessed significant growth, with its market capitalization exceeding $2.5 billion. 

Functioning akin to a stablecoin, BUIDL is commonly utilized as collateral for trading cryptocurrency derivatives, catering primarily to large institutional investors like private equity firms and hedge funds that make a minimum investment of $5 million into the BlackRock BUIDL fund. 

What sets BUIDL apart from traditional stablecoins like Tether (USDT) and Circle (USDC) is its unique feature of distributing the yield collected from its reserves to investors. 

Currently offering a yield of around 4%, BlackRock imposes a management fee ranging from 0.2% to 0.5% on the token. To bring BUIDL into existence, BlackRock collaborates with Securitize, a company specializing in issuing digital assets. 

Securitize’s CEO, Carlos Domingo, highlighted the growing popularity of tokenized assets due to their ability to facilitate quick and efficient trade settlements. 

Domingo emphasized the “antiquated nature” of current capital market ledgers, often built on outdated software, contrasting this with the “agile and near-instant settlement capabilities” of blockchain technology. 

Binance Responds To Demand

Catherine Chen, Binance’s Head of VIP & Institutional, noted that the addition of BUIDL was driven partly by customer demand. She noted in the statement: 

Integrating BUIDL with our banking triparty partners and our crypto-native custody partner, Ceffu, meets their needs and enables our clients to confidently scale allocation while meeting compliance requirements.

Concurrently, BUIDL is set to introduce a new share class on the BNB Chain network, enhancing investor reach and interoperability with other blockchain financial applications.

Launched in March 2024, BUIDL marked BlackRock’s inaugural tokenized fund on a public blockchain, tokenized by Securitize, offering qualified investors access to U.S. dollar yields with flexible custody, daily dividend payouts, and seamless peer-to-peer transfers.

This integration builds upon BUIDL’s presence across networks like Arbitrum (ARB), Aptos (APT), Avalanche (AVAX), Ethereum (ETH), Optimism (OP), Polygon (POL), and Solana (SOL), further enhancing its accessibility and utility within the blockchain ecosystem.

When writing, Binance’s native token, BNB, trades at $931.60, recording losses exceeding 20% in the past 30 days. This positions Binance Coin 32% below all-time high levels of $1,369 reached back in October of this year. 

Featured image from DALL-E, chart from TradingView.com 

Bitcoin has dropped below the $100,000 mark for the first time since May, igniting renewed anxiety across the crypto market. The flagship cryptocurrency is currently trading near $97,000, with traders and investors facing growing uncertainty amid persistent selling pressure and waning momentum. Fear levels have surged as many market participants begin to question whether this breakdown marks the start of a new bear market phase or simply a deeper correction within the ongoing cycle.

Some analysts warn that the recent loss of key psychological support could trigger further downside if buyers fail to defend lower levels. Historical patterns show that once BTC breaks below major round numbers, volatility tends to accelerate before finding a stable base.

However, others remain cautiously optimistic. Ki Young Ju, CEO of CryptoQuant, noted that it is still too early to confirm a full-scale bear market. He argues that on-chain data — including exchange flows, miner behavior, and long-term holder activity — does not yet reflect the kind of structural weakness typically seen during cycle tops. Instead, he suggests that the market may be entering a prolonged consolidation phase, where volatility cools before Bitcoin prepares for its next directional move.

$94K Becomes the Line in the Sand for Bitcoin’s Bull Case

According to Ki Young Ju, CEO of CryptoQuant, the key level that could determine Bitcoin’s next major trend lies around $94,000. On-chain data shows that investors who entered the market between six to twelve months ago have an average cost basis near this level, meaning it represents a crucial psychological and structural support zone.

Ju explains that while Bitcoin’s drop below $100,000 has triggered widespread concern, the market hasn’t yet confirmed a full-blown bear cycle. He notes that price action would need to sustain a breakdown below $94,000 before signaling a significant shift in sentiment and long-term trend structure. “Personally, I do not think the bear cycle is confirmed unless we lose that level,” Ju said, emphasizing the importance of patience amid heightened volatility.

He adds that overreacting to short-term fluctuations often leads to poor decision-making during periods of market stress. For now, the best course of action may be to wait rather than jump to conclusions. If $94,000 holds as support, it could serve as the foundation for a potential recovery. Conversely, a decisive breakdown below that threshold would mark a clear warning sign that the bull phase has likely ended.

Bitcoin Drops Below $100K, Testing Long-Term Support Levels

Bitcoin’s weekly chart paints a concerning picture as the cryptocurrency trades around $96,900, marking its first sustained move below the $100,000 level since May. The breakdown represents a 7.4% decline over the last week, with selling volume increasing significantly — a clear sign that market participants are de-risking amid fear and uncertainty.

The most notable feature on the chart is Bitcoin’s test of the 50-week moving average (blue line), which currently sits near $95,000. Historically, this level has acted as a key support zone during mid-cycle corrections, helping to stabilize price before major recoveries. A confirmed weekly close below this moving average, however, could shift momentum firmly in favor of the bears, opening the door for a potential retest of the $88,000–$90,000 region near the 100-week MA (green line).

Despite the bearish tone, there’s also evidence of potential accumulation. Volume spikes during declines often indicate that larger players are stepping in to absorb selling pressure. If Bitcoin can hold above $95,000 and reclaim $100,000 in the coming weeks, it could form a solid base for recovery. Conversely, failure to defend this area would reinforce the narrative that the market is entering a deeper correction phase.

Featured image from ChatGPT, chart from TradingView.com

While the European Union (EU) authorities are pushing to shift oversight of key financial markets, including crypto, to a centralized supervisory authority, some industry players have shared multiple concerns about the proposal.

EU’s Plan For Crypto Oversight Shift Raises Concerns

On Friday, Bloomberg affirmed that the European Commission (EC) is pressing to advance its proposal to transfer regulatory supervision of the crypto businesses from national authorities to the bloc’s market watchdog, the European Securities and Markets Authority (ESMA).

As reported by Bitcoinist, ESMA’s Chair, Verena Ross, stated last month that the EU’s executive arm was preparing rules to give new powers to the regional watchdog to push for a “more integrated and globally competitive” capital market in Europe.

Ross argued that “while we are doing a lot of work to try to make sure the implementation of MiCA is aligned, it clearly takes a lot of effort from us and the national supervisors to achieve that.”

“It also means that people had to build up specific new resources and expertise 27 times in different national supervisors, which could have been done more efficiently once at a European level,” she continued.

According to the Friday report, draft plans circulated by EU officials propose that the bloc’s market watchdog be responsible for authorizing new businesses and the main supervisor for all Crypto Asset Service Providers (CASP). This was initially suggested during the development of the Markets in Crypto-Assets Regulation (MiCA).

Nonetheless, some consider that the move could overturn the work that national watchdogs and businesses have done over the past few years to regulate the industry and implement the bloc’s comprehensive framework for digital assets.

Robert Kopitsch, secretary general of Blockchain for Europe, an organization that represents international Blockchain industry players in the EU, told Bloomberg that “reopening MiCA at this stage would introduce legal uncertainty, risk delaying the authorization process, and divert attention and resources from the practical task of consistent implementation.”

Kopitsch affirmed that a shift to a more centralized supervisory model should happen in the future, based on “concrete experience and evidence gathered from MiCA’s first years of implementation,” noting that local regulators have had closer day-to-day engagement with firms.

Meanwhile, Andrew Whitworth, founder of Global Policy Ltd., a consulting firm that works with crypto companies and regulators, believes that digital assets could be a good test for ESMA’s ability to take on more responsibilities. However, it would require additional resources to handle the workload currently managed by local regulators.

He emphasized that the change would be difficult at the time, “given where we’re at with implementation for the goalposts to change.”

‘Institutional Standoff’ To Undermine MiCA?

Notably, smaller EU nations, including Luxembourg, Ireland, and Malta, have also questioned the proposal and ESMA’s ability to oversee the rapidly growing crypto market, claiming it could weaken their financial sectors.

Recently, Judith Arnal, associate senior research fellow at the Centre for European Credit Research Institute (ECRI) and board member at the Bank of Spain, affirmed that the ongoing “institutional standoff has created regulatory paralysis with far-reaching consequences.”

Arnal has argued that the recent attempts to already amend the bloc’s crypto rules, particularly in the stablecoins sector, risk “undermining MiCA’s credibility as a coherent and globally influential regulatory framework.”

Earlier this week, the European Banking Authority (EBA) addressed the European Central Bank (ECB) and the European Systemic Risk Board (ESRB)’s concerns about financial instability risk related to stablecoins.

The ECB has recently been calling for stricter regulations, including a ban on multi-issuance stablecoins in the bloc and other jurisdictions. However, the region’s banking supervisor defended the framework, arguing that MiCA already has safeguards against risks posed by stablecoins.