Tag: cryptocurrency

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.

Keep reading

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.

Keep reading

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.

Keep reading

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.

Keep reading

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.

Keep reading

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.

Keep reading

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.”

Keep reading

President Trump Plans to Open 401(k)s to Bitcoin, Crypto, Gold, and Private Equity: FT

Financial Times reported today that President Trump is preparing to sign an executive order that would allow 401(k) retirement plans to invest in alternative assets such as gold, private equity, and cryptocurrencies like bitcoin.

“Donald Trump is preparing to open the $9tn US retirement market to cryptocurrency investments, gold, and private equity in a move that would spur a radical shift in the way Americans’ savings are managed,” reported the Financial Times.

According to Financial Times, the order is expected this week and will direct federal regulators to remove barriers preventing 401(k) plans from including these non-traditional investments in managed funds. This includes digital assets, metals, private loans, infrastructure deals, and corporate buyout funds.

Keep reading

Capping Crypto Week: All You Need To Know About The Three Crypto Bills Passed By Congress

On Thursday, July 17, capping off what was dubbed “Crypto Week” by Congress, the US House just passed three digital assets related bills. Here is a breakdown of all that was passed:

The GENIUS Act:

The Senate’s stablecoin bill, by a vote of 308-122.  By bringing regulatory clarity to the asset class, the law is expected to stimulate the growth of the stablecoin industry. The GENIUS Act first passed the Senate on June 17 by a vote of 68-30, with 18 Democrats supporting the bill and 2 Republicans (Senators Hawley and Paul) voting against it. Two Senators were not present (Senators Cotton and Kelly). Broadly, the GENIUS Act creates a regime for the issuance and regulation of U.S. dollar-backed payment stablecoins. By bringing regulatory clarity to the asset class, the legislation, if passed into law, is expected to stimulate the growth of the stablecoin industry.

What the bill does

  • The bill sets forth standards for regulatory oversight, striking a balance between federal and state authorities.
  • The bill allows payment stablecoins to be issued by subsidiaries of banks and non-bank entities. Banks would be overseen by their primary federal regulator, while non-bank entities would be overseen at a federal level by the Office of the Comptroller of the Currency (OCC) or under qualifying state regimes.
  • Sets up reserve requirements, supervision and enforcement, ie at least 1 to 1 backing with U.S. dollars, short-term Treasuries (93 days or less), or similarly liquid assets.
  • Requires Bank Secrecy Act (BSA)/Anti-money Laundering (AML) compliance for issuers.
  • Mandates insolvency requirements with customer protections.

Other Key Provisions of the bill

  • Bank Permissibility:
    • Banks can issue stablecoins and act “as a principal or agent with respect to any payment stablecoin and payment of fees to facilitate customer transactions.”
    • Preserves current custody practices, allowing banks to hold stablecoin reserves under existing rules.
    • Carves out tokenized deposits from the legislation.
  • Federal licensing preemption: Federal licensing supersedes and preempts any state licensing requirement for any federally chartered payment stablecoin issuer.
  • Bank Secrecy Act / Anti-Money Laundering Requirements: Issuers shall be treated as a financial institution for the purposes of the Bank Secrecy Act; Issuers (domestic and foreign) must demonstrate the ability to freeze or burn tokens.
  • “SAB 121” prevention clause: Prevents federal regulators from requiring custodied digital assets to be held on balance sheet.
  • Capital treatment: A non-permitted stablecoin can NOT be treated as a cash or cash equivalent for accounting purposes. 
  • Fed Master Accounts: The bill stays neutral on Fed account access and does not alter who is currently legally eligible for Federal Reserve services or deposit access.
  • Interest Payments: Prohibits domestic and foreign issuers from offering interest to holders, although it does not address 3rd parties or affiliates.
  • Licensing: Provides both a state and federal (OCC) licensing path for non-bank issuers, although state issuers must get federal license once over $10B in assets.
  • Reserve Authentication: Monthly public disclosures of reserve composition; Annual financial audits for issuers with market capitalizations exceeding $50 billion.
  • Activity Limits: Creates limits on the types of activities a non-bank stablecoin issuer can conduct (ie issue & redeem stablecoins; manage reserves; and custody stablecoins).
  • Non-Security clarification: Payment stablecoins are explicitly excluded from being classified as securities.
  • Marketing restrictions: Prohibits the use of “USG”, “United State Government” or “legal tender” as part of materials and naming conventions; allows the use of “USD”.
  • International Stablecoins: Non-compliant foreign issuers may be barred from U.S. markets unless they comply with U.S. regulations and/or are licensed by an approved similar regime.
  • Conflict of Interest: Clarified that financial conflict of interest standards apply uniformly to both regular and special government employees, although the referenced statute in the bill carves out the President and Vice President. 
  • Big Tech company issuance: Restricts issuance by large U.S. public or foreign companies not primarily engaged in financial services, unless they meet certain standards (TBD by the Stablecoin Certification Review Committee (SCRC), which is made up of the Treasury Secretary, FDIC Chair, and Fed Chair or Vice Chair) and are unanimously approved by the SCRC.

Keep reading

Cocky cop jailed for stealing bitcoins had log of his crypto theft in his office

A former cop in the United Kingdom was sentenced to five and a half years in prison Wednesday after pleading guilty to covering up his theft of 50 bitcoins seized during an investigation into the now-defunct illicit dark web marketplace Silk Road.

In 2014, the former UK National Crime Agency (NCA) officer, Paul Chowles, assisted in the arrest of Thomas White, a man “who had launched Silk Road 2.0 less than a month after the FBI had shut down the original site in 2013,” the Crown Prosecution Service (CPS) said in a press release.

Chowles was tapped to analyze and extract “relevant data and cryptocurrency” from White’s seized devices, specifically due to Chowles’ reputation for being “technically minded and very aware of the dark web and cryptocurrencies,” CPS said.

Like US cops busted for stealing bitcoins from Silk Road seizures, Chowles’ theft was brazen. In 2017, he transferred 50 of 97 seized bitcoins from one of White’s wallets to a public address, then used a cryptocurrency mixer called Bitcoin Fog to break up the bitcoins into smaller amounts “in an attempt to hide the trail of the money,” CPS said.

At the time, the bitcoins were worth about $80,000, but today, they’re valued at nearly $6 million.

Keep reading