Tag: cryptocurrency

Belarus Approves the Country’s First Crypto Banks: Report

Belarus earlier this year signed a legal framework for crypto banks in the country.

The first crypto banks have opened in Belarus, according to reports, after the European country earlier this year created a legal framework for Bitcoin banks.

While not yet named, the crypto banks will start operations after obtaining accreditation from the National Bank of Belarus, Russian news agency Interfax reported Monday.

Back in January, Belarusian President Alexander Lukashenko signed Decree No. 19 “On Cryptobanks and Certain Issues of Control in the Field of Digital Tokens,” officially creating a legal framework for bitcoin and crypto banks in the country.

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EBA designates Circle’s USDC as the EU’s first ‘significant’ e-money token

The European Banking Authority said Wednesday that it has classified USDC as a “significant” e-money token under the Markets in Crypto Assets Regulation, making it the first of the 45 EMTs notified in the bloc to meet that threshold.

According to an official statement, the EBA will now take direct responsibility for supervising USDC’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans from Nov. 12. These areas are currently overseen by France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), but the regulator will still handle governance, qualifying holdings, fit and proper assessment, and conflicts of interest after the EBA takes over.

The EBA also said it signed a memorandum of understanding with the New York State Department of Financial Services, which oversees Circle’s New York-regulated operations. The MoU will facilitate cross-border oversight and information exchanges between the two authorities.

USDC is the world’s second-largest stablecoin, with a supply of nearly $73 billion, according to The Block’s data dashboard. Tether’s USDT leads the market with $184 billion in circulation, against a total supply of $294 billion for dollar-pegged stablecoins.

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Flashback: The Birth of CBDCs

Building on the bitcoin model, central banks are planning to produce their own “digital currencies”. Removing any and all remaining privacy, granting total control over every transaction, even limiting what ordinary people are allowed to spend their money on.

From the moment bitcoin and other cryptocurrencies first emerged, sold as an independent and alternative medium of exchange outside the financial status quo, it was only a matter of time before the new alternative would be absorbed, modified and redeployed in service of the state.

Enter “Central Bank Digital Currencies”: the mainstream answer to bitcoin.

For those who have never heard of them, “Central Bank Digital Currencies” (CBDCs) are exactly what they sound like, digitized versions of the pound/dollar/euro etc. issued by central banks.

Like bitcoin (and other crypto), the CBDC would be entirely digital, thus furthering the ongoing war on cash. However, unlike crypto, it would not have any encryption preserving anonymity. In fact, it would be totally the reverse, potentially ending the very idea of financial privacy.

Now, you may not have heard much about the CBDC plans, lost as they are in the tangle of the ongoing “pandemic”, but the campaign is there, chugging along on the back pages for months now. There are stories about it from both Reuters and the Financial Times just today. It’s a long, slow con, but a con nonetheless.

The countries where the idea progressed the furthest are China and the UK. The Chinese Digital Yuan has been in development since 2014, and is subject to ongoing and widespread testing. The UK is nowhere near that stage yet, but Chancellor Rishi Sunak is keenly pushing forward a digital pound that the press are calling “Britcoin”.

Other countries, including New Zealand, Australia, South Africa and Malaysia, are not far behind.

The US is also researching the idea, with Jerome Powell, head of Federal Reserve, announcing the release of a detailed report on the “digital dollar” in the near future.

The proposals for how these CBDCs might work should be enough to raise red flags in even the most trusting of minds.

Most people wouldn’t like the idea of the government monitoring “all spending in real-time”, but that’s not the worst it.

By far the most dangerous idea is that any future digital currency should be “programmable”. Meaning the people issuing the money would have the power to control how it is spent.

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‘Bunker Mode’: OpenAI’s Jaw-Dropping Math Blitz Draws Boycott, Warning Over Crypto Wallets

OpenAI just unleashed hundreds of AI-generated mathematical papers in a single release, which include breakthroughs on problems that have frustrated researchers for generations. The pace of discovery here has started to freak out mathematicians – who are now calling for a boycott – while top minds in crypto are raising a chilling question: could AI eventually undermine the mathematics protecting digital wallets before quantum computing?

On October 6, the company published 722 manuscripts covering 372 groups of related findings, all generated by an internal AI model that has not been released to the public. The papers appeared in a public GitHub repository. OpenAI says the work emerged from testing the model on roughly 4,000 research problems, with each result in the final collection using, on average, computing power equivalent to about three hours of ChatGPT Pro’s thinking mode. The collection includes claims about prime numbers, geometry and the mathematics underlying computing, touching problems that have resisted some of the world’s best minds for decades.

Perhaps the most startling claim concerns the Riemann hypothesis, a mathematical puzzle dating to 1859 that deals with the hidden patterns governing prime numbers – the building blocks from which every whole number greater than one can be made.

For math nerds: 

Mathematicians study those patterns through a special mathematical function, looking in particular at the points where it equals zero. The full Riemann hypothesis predicts that all the important zeros fall along one precise line. OpenAI’s model has not proved that. Instead, it claims to have ruled out zeros across an enormous, permanently defined region where previous proofs offered a much narrower guarantee. If the claim holds up, it would be a major advance toward understanding one of mathematics’ most famous unsolved problems.

For specialists, the dividing line in the new claim is a value of 7/8, while the full hypothesis would require 1/2. The related equations are known as the Riemann zeta function and Dirichlet L-functions. For everyone else, the point is simpler: the AI claims to have established a far stronger limit on where these crucial mathematical points can appear, without claiming to have settled the entire puzzle.

Other OpenAI papers claim progress on the Hodge conjecture – which concerns the structure of complex geometric shapes – though only for a class of objects called CM abelian varieties.

Math nerds rejoice? Or panic?

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Why banks and offshore hubs like Dubai are winners of the Senate killing the Clarity Act

One expert believes that the failure to pass the bill is a win for the banks that staunchly oppose stablecoin yields, while a global crypto lawyer believes overseas jurisdictions benefit.

U.S. banks and overseas crypto hubs such as the United Arab Emirates (UAE) stand to benefit after the Senate failed to advance the Clarity Act last week, according to lawyers and industry experts.

The Clarity Act’s 49-50 Senate cloture vote means the crypto industry will not get the federal market structure framework it had sought. Instead, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will continue to shape policy through existing rules, interpretations and exemptions.

The legislative battle over the bills was not only about crypto oversight, but it also exposed a struggle over whether stablecoin platforms could offer rewards that might compete with bank deposits, as well as ethical considerations for people in government.

“Banks won this round. But the reason they are fighting so hard is that banks increasingly see stablecoins as competition for deposits, not just as another crypto product,” said Anton Golub, head of exchange go-to-market at Forte, in a Telegram message.

The immediate outcome of the failure to pass the law is that crypto regulations in the United States will continue to be created outside Congress. The SEC moved quickly after the vote, issuing a temporary conditional exemption that allows eligible venues to trade tokenized U.S. stocks through permissioned liquidity pools on public blockchains.

Soon after, the CFTC sent crypto rules to the White House for review. The agency submitted a new proposal; the details were not disclosed. For now, which crypto assets it contemplates, what exchanges would need to do to qualify for licenses, what restrictions would apply and how far the agency believes its authority extends, remains unclear. All the meanwhile, the “Clarity Act is dead, at least for now,” Jesse Hamilton, CoinDesk’s deputy managing editor in charge of global policy and regulation, wrote in an analysis that explains what very few appear to know: what the Clarity Act actually is.

“While the U.S. continues debating the Clarity Act, in the UAE we actually have clarity,” Irina Heaver, a Dubai-based crypto lawyer and founder of NeosLegal, said via Telegram. More than 110 regulated virtual-asset businesses operate in the country, with about 20 more holding in-principle approvals, she added.

“Every additional year that major markets spend debating how crypto should be regulated gives jurisdictions that have already created functioning regulatory frameworks another year to attract businesses, founders, talent and capital,” she said. “Regulatory clarity is no longer just a legal issue. It is a competitive advantage for the country.”

Kyle Bligen, executive director at the Decentralization Research Center, said “Congress remains the best route to a comprehensive market structure framework.” He said the Senate’s vote “was disappointing, but it does not change the underlying problem: digital assets still need clear and durable rules.”

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Chainalysis Used Ai To Trace The $387m Bitget Hack Back To North Korea

In a recent blog post, blockchain analytics firm Chainalysis attributed the $387 million theft from cryptocurrency exchange Bitget to North Korean state-sponsored hackers. The firm used a combination of its’ AI-powered cryptocurrency analysis and its’ traditional investigative methods to track the stolen funds, moving them across multiple blockchains. Importantly, although the firm used technology to enhance the analysis of the data, it was human investigators who ultimately attributed the theft and controlled the output of their analysis.

After the breach, the attackers had been using more sophisticated techniques for laundering the stolen assets, spreading them through cross-chain liquidity protocols, messaging platforms, instant swap services, as well as specialized laundering infrastructure. The scale of such attempts highlights the attackers’ high level of experience in managing a large-scale cybercrime operation and in evading detection by blockchain forensics experts, writes Decrypt.

Stolen XRP was handled differently by the hackers and after some time it was converted into Bitcoin through cross-chain liquidity protocol and then extracted from the pool on the other side of the trade. This cross-chain arbitrage was used by hackers not only to convert very traceable asset into something else but also to make it as anonymous as possible by hopping from one protocol to another. The activity of extracting tens of millions of dollars in assets through this method took approximately 36 hours.

We previously highlighted that the attack bore similarities to past attacks conducted by DPRK cyber crime operators, as identified by Bitget CEO Gracy Chen. Blockchain analytics firm Elliptic also assessed the involvement of North Korean cyber crime operators in the theft to be “highly likely”.

The money laundering activity is very transparent and is being carried out on public blockchains. The attacker moved parts of the funds to Zcash’s shielded pool in order to use the privacy features. However, how swap services react to these transactions varies greatly. Near Intents for example rejected over $50m in hacker-linked transactions. They got hacked days later though. Thorchain on the other hand continued to process the suspect transactions.

However, stablecoin issuers such as Circle and Tether were able to prevent $318,000 in stablecoins that were siphoned off in the hack from entering circulation. The move highlights the power of centralized control of widely held stablecoins even as the broader decentralized trading environment continues to facilitate hacker activity.

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DOJ Seeks $61M in Iranian Oil Proceeds Laundered Through Binance Accounts

The U.S. Department of Justice has filed to forfeit $61 million in crypto it says was generated from Iranian black-market oil sales.

The U.S. Department of Justice said Monday it is seizing and seeking to forfeit $61 million in cryptocurrency that it alleges came from black-market sales of sanctioned Iranian oil.

That sum is a fraction of the operation prosecutors describe in the civil forfeiture complaint. A cluster of self-custodied wallets received and distributed more than $1.5 billion in oil proceeds, routing funds to Islamic Revolutionary Guard Corps-linked businesses, other crypto addresses and an Iranian exchange, according to the filing. Two China-based firms, Blessed Trust and Hexa Whale, allegedly used trading accounts at Binance to launder proceeds and funnel them to the Iranian government and its proxies.

It comes after the U.S. tries to crack down on Iran’s use of the leading cryptocurrency: the U.S. in July said that it had frozen crypto linked to the Iranian regime, mostly in the form of Tether’s stablecoin; Iran started a bitcoin-backed insurance service for its counties shipping companies earlier this year.

There was no mention of bitcoin in Monday’s claim — but the Iranian government is also using bitcoin to skirt around sanctions. Bitcoin has no issuer, so no blacklist function and bitcoin held without intermediaries can’t be frozen

“The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads,” Deputy U.S. Attorney Sean S. Buckley said in a statement. 

“As alleged in the complaint filed today, the Government of Iran used a network of cryptocurrency actors in China and elsewhere to launder more than $1.5 billion in illicit oil money intended to benefit the Iranian military and the terror-designated IRGC.”

The filing alleges that the illicit oil money was laundered via Chinese companies Blessed Trust Limited and Hexa Whale Trading Limited.

Once the money was laundered, it was funneled back to Iran’s government, its agents, and its proxies, feds said. 

The U.S. Treasury’s Office of Foreign Assets Control in July said Iran had been dodging sanctions by accepting pay in bitcoin from ships passing through the Strait of Hormuz. 

OFAC said at the time that Hormuz Safe, developed by Iran’s Ministry of Economy, “accepts payment in bitcoin and other digital assets” so it can bypass sanctions. 

The Financial Times last week reported that the Middle Eastern country was using bitcoin to settle cross-border transactions through Iranian crypto exchanges after the central bank advised its countrymen to do anything necessary to help the economy.

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Revolut Leak Shows the Cost of Constant ID Collection

Online bank Revolut has revealed that it gave out sensitive personal and financial information of an undisclosed number of its customers in response to a fake government request.

The information that was handed over to an “unauthorized third party” reportedly includes names, dates of birth, occupations, addresses, phone numbers, account numbers, transaction histories (including Bitcoin), and even copies of government-issued IDs and onboarding verification selfies.

Revolut claims that derived biometric face data was not.

The company said that the data was handed over in response to an email that came from a real government agency’s domain, but was not actually sent or authorized by that agency.

The email passed several authentication checks (SPF, DKIM, and DMARC) that are designed to establish the authenticity of a message’s origin and integrity, but do not verify the legitimacy of the legal request itself.

Revolut said that it complied with the request “under the reasonable belief that it was an authentic government agency request” – and only later found out that it was not.

Revolut said it later realized its mistake, blocked the email address, and reported the incident to the relevant authorities.

Revolut said that only a “limited” number of its customers were affected by the data leak, and that the company’s systems were not hacked, nor was any money stolen.

The story broke on September 11 when Revolut customers started receiving an email notice about a data leak, and the news was picked up by media outlets the following day.

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Indianapolis teacher, composer avoids prison time after guilty plea in child sex crimes case

A former Indianapolis teacher and internationally known composer will spend no time in prison after pleading guilty to multiple felonies in a child sex crimes case.

Julian Wachner, 56, pleaded guilty on Wednesday to five counts of possession of child sex abuse material as a Level 5 felony. He also pleaded guilty to one count of felony cocaine possession.

An Indianapolis resident, Wachner was subsequently sentenced to six years of probation and no prison time. As part of his plea deal, Wachner must register as a sex offender and participate in several drug and child abuse prevention programs.

In a statement, the Marion County Prosecutor’s Office said the plea agreement filed for Wachner was for a sentence of up to 10 years in prison. Judge Jeffrey Marchal imposed the sentence, opting for no prison time.

“Prosecutors pushed for a sentence harsher than the one opposed [sic],” said MCPO officials.

Cryptocurrency, cocaine and CSAM

Wachner was arrested late last summer by the Indianapolis Metropolitan Police Department after various allegations came out against him. At the time, he had recently served as a fourth-grade math teacher for Invent Learning Hub and was world-renowned for his music compositions.

Court documents released soon after Wachner’s arrest detailed how he used over $800 in cryptocurrency to purchase child sex abuse material on the dark web. After being confronted by police, Wachner reportedly admitted to making “hundreds of purchases.”

A search of Wachner’s home later uncovered an Apple MacBook Pro, a hard drive and a “substantial quantity of cocaine” inside his bedroom closet. On the laptop, investigators reportedly found “dozens” of files containing child sex abuse material.

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Hunter Biden Blames Liquidity, “Predatory Snipers” For LAPTOP Memecoin Collapse

As you may have seen, the LAPTOP memecoin saw a sharp swing in token price during its first hours of trading.

The headlines are all the same.

Token down 99%. Rug pull. Biden Crime Family. The list goes on.

This is far from the truth.

The reality is that available liquidity could not sustain the strong level of interest at launch. Technical issues coupled with predatory “snipers”, who seek to beat liquidity providers to market, caused a spike in price, which has since stabilized to healthy levels.

The team’s allocation is locked. Nobody on our side sold, and nobody could have. I, personally, have not made a single dollar.

I’m used to legacy news and social media trolls spinning realities to fit their own narrative.

The fully diluted valuation of the token is over $1 billion. And we’re actively working on the best solutions to optimize liquidity and continue engaging my community.

We gave free tokens to those who lost on Trump’s memecoin. 

Somehow the media is painting that as a “failure”.

This journey is far from over. We built this community for the long game, and that’s exactly how we’re playing it. I’m going to keep doing what I do best: ignoring the noise, and reclaiming the narrative.

Maybe he can finally get back to his lucrative art career?

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