Tag: cryptocurrency

The Surveillance Net Is Closing, But the Smart Ones Can See the Writing on the Wall

The privacy coin Zano just rallied nearly 70 percent in the last 30 days, lifting its market cap toward a quarter billion dollars and pushing daily trading volume close to three million. The spike isn’t about speculation alone. It reflects a shift underway as people begin to hedge against a tightening surveillance state.

The latest proof of financial control came just last month, when Tether froze $49.6 million in USDT at regulators’ request during a coordinated international crackdown. Regardless of the guilt or innocence of the targets, the lesson is obvious. These assets can be frozen in an instant, with no trial and no process, making them less a hedge against the state and more a compliant extension of it. 

Congress reinforced this fact with the GENIUS Act, a law that hard-wires surveillance into stablecoins by forcing issuers to operate under bank-style oversight, AML regimes, and reserve mandates. The fact that Democrats and Republicans both lined up behind it should tell you everything. In Washington, true bipartisan consensus only happens when war, debt, or control are on the line.

That same logic now extends to the streets. National Guard units are being deployed into American cities to “fight crime,” but the justification is always the same: safety over freedom. Deployments like this normalize militarization at home and make clear that the tools built for foreign wars are now being pointed inward. 

The grid doesn’t stop at the barrel of a gun either. It runs through data. Federal agencies have been caught buying location data from brokers like Venntel to track millions of Americans without warrants. The AT&T Hemisphere program continues to funnel call records to law enforcement, building a quiet dragnet with virtually no oversight. License plate readers vacuum up hundreds of millions of scans, with databases shared across jurisdictions and tapped for immigration enforcement. Flock Safety’s license-plate readers generated 1,400+ immigration-related searches in Denver and 113 million scans in a year in Austin, triggering local backlash over data-sharing and policy violations. This is mass movement tracking, normalized street by street. All of this happens without a vote, without consent, and in most cases without warrants.

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The Quiet Rebranding Of CBDCs As “Digital-ID”

Let’s call them for what they are: Social Credit systems.

We know that “CBDC” stands for Central Bank Digital Currencies – and we have long held our hypothesis on what those entail (the TL;DR is that they will either launch as, or morph into, China-style social credit systems).

We’ve seen an Executive Order expressly ruling out CBDCs in the US, but as I keep warning readers: we’re seeing components we’d expect to see under a CBDC system appearing – only they aren’t originating at The Fed (who has never really expressed an interest in them, anyway).

Now the US Treasury Department is seeking comments on Digital ID as it relates to DeFi:

“The Department of the Treasury has filed a request for public comments to provide input on the use of “innovative or novel methods to detect and mitigate illicit finance risks involving digital assets” in accordance with the GENIUS Act, as well as in accordance with Donald Trump’s policy to support “the responsible growth and use of digital assets,” as outlined in the President’s Executive Order to strengthen US leadership in digital financial technology.”

— TheRage.co

The areas covered range from:

“the use of APIs “to help enforce strict access controls, monitor transactions and activities, and bolster security and integrity of financial institutions providing digital asset services”, the use of Artificial Intelligence to “make predictions, recommendations or decisions” to “effectively identify illicit finance patterns, risks, trends, and typologies”, and blockchain monitoring to “evaluate high-risk counterparties and activities, analyze transactions across multiple blockchains,trace or monitor transaction activities, and identify patterns that indicate potential illicit transactions.”

As well as Digital ID (which I think is the catch-phrase we’re going to see a lot of in the future, that will capture a lot of the objectives of CBDCs)

“the treasury is also seeking comments on the introduction of “portable digital identity credentials designed to support various elements of AML/CFT and sanctions compliance, maximize user privacy, and reduce compliance burden on financial institutions” to potentially be used “by decentralized finance (DeFi) services’ smart contracts to automatically check for a credential before executing a user’s transaction.”

Sounds similar to what the Bank of International Settlements (BIS) wants to do in terms of rating individual crypto wallets for AML compliance.

In a white paper titled An approach to anti-money laundering compliance for cryptoassets they propose to:

“leverag[e] the provenance and history of any particular unit or balance of a cryptoasset, including stablecoins”

In order to assign an “AML compliance score”.

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Which Governments Hold The Most Bitcoin?

Governments worldwide are increasingly holding bitcoin, whether through deliberate strategy or enforcement seizures. Today, some of the biggest national treasuries include hundreds of thousands of coins, worth billions of dollars.

In this infographic, Visual Capitalist’s Marcus Lu visualizes the countries with the most bitcoin as of July 31, 2025.

The data for this visualization comes from BitcoinTreasuries.net, which shows how much bitcoin each country has accumulated. Note that this may not be a conclusive list, as some countries may not publicly report their reserves. Values were based on a BTC price of $118,454 USD.

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Venezuela’s Crypto Adoption Surges Amid Inflation Surge And Currency Collapse

Cryptocurrencies are becoming a core part of the economy in Venezuela as citizens turn to digital assets to shield themselves from a collapsing currency and tighter government controls.

From small family stores to large retail chains, shops across the country now accept crypto through platforms such as Binance and Airtm. Some businesses even use stablecoins to pay employees, while universities have begun offering courses dedicated to digital assets.

“There’s lots of places accepting it now,” shopper Victor Sousa, who paid for phone accessories with USDt, told the Financial Times. “The plan is to one day have my savings in crypto.”

Venezuela ranked 13th globally for crypto adoption, according to the Chainalysis 2024 Crypto Adoption Index report, which noted a 110% increase in usage in the year.

Bolívar’s crash pushes Venezuelans into crypto

The continued slide of the bolívar currency has intensified demand for crypto. Since the government stopped defending the currency in October, it has lost more than 70% of its value. Inflation reached 229% in May, according to the Venezuelan Finance Observatory (OVF).

“Venezuelans started using cryptocurrencies out of necessity,” said economist Aarón Olmos. He noted that they face inflation, low wages, foreign currency shortages and difficulty opening bank accounts.

However, access is not always smooth. With US sanctions on Venezuela’s financial sector, Binance restricts services linked to sanctioned banks and individuals. Connectivity issues also hinder widespread use. Still, experts say the ecosystem is resilient, per the FT report.

The government’s stance on crypto remains inconsistent. Venezuela launched its own digital currency, the petro, in 2018, but the project collapsed last year. The main exchange regulator was shut down in 2023 following corruption allegations tied to oil-linked transactions.

Cointelegraph reached out to Binance for comment, but had not received a response by publication.

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Victim Loses $91M in Bitcoin in Social Engineering Scam: ZachXBT

A fraudster posing as a hardware wallet support agent tricked the target into handing over wallet credentials.

What to know:

  • A victim lost 783 BTC in a social engineering scam after an attacker impersonated hardware wallet support.
  • The stolen funds were funneled through multiple deposits into Wasabi Wallet, a privacy tool used to mask transaction trails.
  • The hack came exactly one year after the $243M Genesis creditor theft, underscoring ongoing vulnerabilities in crypto security.

Blockchain sleuth ZachXBT uncovered a high-profile social engineering attack on Thursday, with the victim losing 783 BTC worth around $91.4 million.

The scam occurred on Aug. 19 and involved the attacker posing as a support agent for a hardware wallet before duping the victim into handing over wallet credentials.

The attack mirrors a string of social engineering attacks over the past year and contributes to an already woeful year in terms of hacks and scams, with crypto investors losing $3.1 billion in the first half of 2025.

Once the malicious transfer was made, the funds began their journey through a typical laundering process, with multiple deposits made into Wasabi Wallet, a privacy tool commonly used to obfuscate the trail.

The hack occurred exactly one year after the $243 million Genesis creditor theft, a landmark event that sent ripples across the industry and led to the arrest of 12 people in California in May.

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Another Mexican Politician Facing U.S. Federal Fraud Charges

A Mexican politician is out on bond as he faces federal fraud charges in Texas for allegations that he used COVID-era loans to buy cryptocurrency. The politician, his wife, and various other South Texas business owners are accused of obtaining fraudulent loans during the COVID-19 pandemic, which were intended to support failing businesses, but were instead used for personal gain.

Court records revealed that 46-year-old Bernando Gomez Jr. and his wife, 42-year-old Lesley Chavez, allegedly took out nearly $200,000 in Paycheck Protection Program loans during the COVID-19 pandemic and then used them for personal expenses, including buying cryptocurrency. Gomez, who lives in Edinburg, Texas, is a sitting city councilman in the Mexican City of Rio Bravo, Tamaulipas, where he serves as a close advisor to local Mayor Miguel Angel Almaraz.

Court documents indicate that Gomez and Chavez own several entertainment and service businesses, including a wedding planning service, a rental company, and a print shop.

Federal prosecutors allege that in June 2020 and May 2020, they obtained a series of government loans through the Small Business Administration aimed at helping businesses survive the COVID-19 Pandemic. The government then forgave those loans after the business owners allegedly filed documents claiming that the money had been used for legitimate purposes such as paying employees and other similar expenses. After receiving those three loans, totaling $150,000, $40,800, and $20,800, they transferred the funds to different accounts, which they then used for personal expenses and, in the case of Gomez, to purchase cryptocurrency.

After their arrests, both Gomez and Chavez went before U.S. Magistrate Judge J. Scott Hacker, who set their bonds at $100,000. Both have been released as they await trial.

Gomez is currently a member of Mexico’s National Action Party (PAN), one of the major opposition parties in Mexico that has been at odds with the current ruling party, MORENA.

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Tornado Cash Co-Founder Roman Storm Convicted, Raising Fears for Privacy Rights and Open-Source Development

Roman Storm’s guilty verdict is sending shockwaves through privacy advocates and the open-source development community, with many warning it could change how the US criminal justice system treats creators of decentralized tools.

A federal jury in New York on August 6 convicted the Tornado Cash co-founder of operating an unlicensed money-transmitting business, a charge that could carry up to five years in prison. Jurors could not agree on two other allegations, conspiracy to launder money and conspiracy to breach US sanctions, leaving prosecutors the option to bring those charges to trial again.

Tornado Cash, launched in 2019 by Storm along with Alexey Pertsev and Roman Semenov, was designed to obscure the origins of cryptocurrency transactions and give users financial privacy.

Although the protocol never took control of user funds, US authorities claimed it had been exploited for laundering illicit proceeds and sanctioned it before later reversing that decision in March. Pertsev is facing trial in the Netherlands, Semenov is still wanted by the FBI, and Storm’s arrest took place a year after Pertsev’s.

In September 2024, Judge Katherine Failla allowed the case to move forward, ruling that Tornado Cash met the definition of a money transmitter under federal law and should have followed Anti-Money Laundering and Know Your Customer rules. Privacy supporters have long argued that holding developers accountable for the actions of users, particularly when they lack the technical ability to intervene, creates a dangerous precedent.

The Blockchain Association, a crypto policy group, called the decision “a dangerous precedent for open-source software developers.”

In an earlier amicus brief, it said Storm had no custody or control over the funds moving through Tornado Cash and warned the ruling could lead to criminal charges against creators of browsers, messaging apps, or other tools if those were misused.

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Series of Dildo-Throwing Incidents at WNBA Games Reportedly Tied to Meme Coin Pump Scheme

In one of the most bizarre scandals to hit professional sports, the WNBA has been dealing with a string of disruptions where fans have been hurling dildos onto the court during games.

For weeks, there was no explanation for the strange and dangerous disruptions, but it now appears to be a promotion for a cryptocurrency meme coin.

According to a new report from The Athletic, the sex toy incidents are linked to a group of cryptocurrency investors trying to pump up a meme coin called the “Green Dildo Coin.”

The disruptions began in late July during a game between the Atlanta Dream and the Golden State Valkyries, where a green sex toy was thrown and caused a brief stop in play. Similar events followed, including during another Atlanta Dream game and a matchup involving the Indiana Fever and Los Angeles Sparks.

Indiana Fever guard Sophie Cunningham addressed the issue in a post on X after one incident, stating, “Please stop throwing things on the court. It’s dangerous for us players.”

Cunningham was later targeted in a separate dildo incident and hit by the crass projectile.

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The Government Is Not Your Friend

This week’s guilty verdict for Roman Storm on the count of conspiracy to operate an unlicensed money service business is absolutely insane.

FinCEN, the regulator responsible for licensing, monitoring, and enforcement actions concerning criminal activity in money transmission has itself explicitly stated that self-custodial tooling that facilitates the transmission of value using cryptocurrencies are not money transmitters and are not subject to the relevant regulations.

So, how did we get here? Eight months after the election of a president who describes himself as a Bitcoin and cryptocurrency advocate, after the Department of Justice themselves have explicitly stated that they are not going to engage in regulation by prosecution, or prosecute mixing services, how was Roman Storm found guilty?

There is nothing to describe this situation except pure, unbridled insanity. Incoherence. Hypocrisy and contradiction. There is a lesson here, though, one that I think it’s time more people in this space learn. 

The government’s word is worthless. It means nothing. 

They will continue cracking down on privacy, they will continue pushing KYC surveillance through things like the GENIUS Act and through the backdoor, applying them to just stablecoins (for now). They will continue treating the desire for privacy as evidence of criminal intent. They will do all these things while talking out of the other side of their mouth about supporting Bitcoiners and the “importance of self custody.” 

This is what the government does. This is what politicians do. It is inherent in their very nature. 

We need to stop treating these people as our friends. We need to stop pretending and lying to ourselves that they can be won over and become powerful allies to push the values and tools that we wish to see in the world. They are not our friends. They will not become allies, sharing a common cause with us. They are our enemies. 

It is time to stop pretending. These people must be treated as hostile, and dealt with as such. 

We need to stop begging them for clauses and riders in bills. We need to take them to court. We need to stop kissing their ass and pandering to their egos and notion of public persona. We need to call them out as the two-faced spineless people they are. 

If there is any legitimacy whatsoever to the legal foundations of the United States government, we do not need new laws, we do not need these people’s permission — we have the Constitution. Remind them of that in court. 

If, at the end of all of that, this system is so corrupt and hypocritical that it functionally ignores the constitutional rights of Americans (and non-Americans), then we need to ignore them.

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PayPal Opens Bitcoin And Crypto Payments to US Merchants

Today, PayPal announced that it will launch a new payment option allowing small US businesses to accept over 100 cryptocurrencies, including bitcoin. The option is available to any US merchant using PayPal’s online payments platform.

Merchants will pay a promotional fee of 0.99 percent per bitcoin and crypto transactions for the first year. After that, the fee will rise to 1.5 percent. Both rates are lower than the 2024 US average credit card processing fee of 1.57 percent, according to the Nilson Report.

“Businesses of all sizes face incredible pressure when growing globally, from increased costs for accepting international payments to complex integrations,” said the president and CEO of PayPal Alex Chriss. “Today, we’re removing these barriers and helping every business of every size achieve their goals.”

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