Crypto Outlook at the World Economic Forum
Cryptocurrency firm Genesis Global Capital plans to file for bankruptcy this week, Bloomberg reported today.
Bankruptcy filing has been expected since the November crash of cryptocurrency exchange FTX.
Meanwhile, the US Department of Justice has announced that Anatoly Legkodymov, the Russian operator of China-based crypto exchange Bitzlato, has been arrested. Bitzlato was a cryptocurrency exchange that allegedly worked with the dark web black market Hydra Market, which engaged in illicit trading and served as a safe haven for ransomware attackers, according to the Justice Department.
The US Department of Justice issued a vague statement Wednesday that it would “announce a major international cryptocurrency enforcement action,” noting that the US Treasury Department would also make its own statement.
The announcement comes at a time when former FTX crypto exchange CEO Sam Bankman-Fried is facing charges of wire fraud, securities fraud, and conspiracy. The Justice Department stressed that criminals using the crypto space for scams and other criminal activity should know that the agency will use “every tool” to crack down on their activities.
Mr. Bankman-Fried’s company, long considered one of the largest cryptocurrency exchanges along with Binance, filed for bankruptcy after allegedly using and losing customer funds as investment capital.
Crypto companies reduce visibility of Davos after a year of losses and scandals
In recent years, cryptocurrency companies have dominated the promenade at the World Economic Forum in Davos, but this year they seem to have reduced their visibility. CNBC reports.
With the exception of a lone bright orange crypto-advertised sports car, the crypto company’s ads were much less prominent this year.
An NFT store that sold digital tokens along with images closed this year after asset prices fell significantly in 2022.
Cliff Sarkin, head of strategic relations at Casper Labs, told the outlet that the remaining crypto deals in Davos are “substantive projects” and “real deals.”
Graig Graziosi19 January 2023 07:00
FBI Says It Will “Relentlessly” Go After Crypto Criminals
FBI Deputy Assistant Director Brian Turner said the law enforcement agency would “relentlessly pursue” criminals operating in the cryptocurrency space following the arrest of Bitzlato cryptocurrency exchange founder Anatoly Legkodymov.
“The FBI will continue to pursue actors who attempt to mask their criminal activity behind keyboards and will use means such as cryptocurrency to evade law enforcement,” he said, according to the Justice Department. “We, along with our federal and international partners, will work tirelessly to disrupt and dismantle these types of criminal enterprises. Today’s arrest should serve as a reminder that the FBI will impose risks and consequences on those who engage in these activities.”
Legkodymov, a Russian citizen living in China, was arrested in Miami on Wednesday.
Graig GraziosiJanuary 19, 2023 06:00
Finance leaders at the World Economic Forum in Davos criticize cryptocurrencies and insist that traditional institutions are safe
Several financial leaders speaking at the World Economic Forum in Davos made it clear that they did not trust cryptocurrencies, insisting to attendees that traditional banking and investment institutions were still safe to use.
Singapore’s Chief Minister Tharman Shanmugaratnam said crypto assets were “slightly crazy,” prompting laughter from the audience, according to Iris Market IC.
UBS Chairman Colm Kelleher said regulators had failed in their ability to police “non-bank” entities, which include cryptocurrencies.
“Regulators, with respect, have taken their eyes off the ball in terms of the non-bank sector,” Kelleher said, according to Reuters.
European Central Bank Governing Council member Francois Villeroy de Galhau agreed, saying “we should rush towards some urgent non-bank regulation starting with cryptocurrencies.”
Graig GraziosiJanuary 19, 2023 04:59
DOJ says Bitzlato boss knew Hydra transactions were illicit, customers were ‘known criminals’
The Justice Department claimed that Bitzlato founder Anatoly Legkodymov was aware of the illicit nature of Hydra Market’s transactions and knew that its users were using false identities when conducting transactions.
“Bitzlato customers routinely used the company’s customer service portal to request support for transactions with Hydra, which Bitzlato often provided, and admitted in chats with Bitzlato personnel that they were trading under assumed identities,” the Department said. of Justice. “In addition, Legkodymov and the other Bitzlato managers knew that Bitzlato’s accounts were riddled with illicit activity and that many of its users were registered under the identities of others.”
According to internal chat logs obtained by the Justice Department, Legkodymov wrote to a colleague that his clients were “known criminals.” Bitzlato officials reportedly warned the founder that its users were “addicts buying drugs.” [at Hydra]” and “drug dealers”.
Graig GraziosiJanuary 19, 2023 04:00
ICYMI: Crypto Market Cap Hit $1 Trillion Briefly Before Plunging
Earlier today, the crypto market capitalization touched $1 trillion for the first time since November, just before the 2022 sell-off and FTX crash.
It is not clear if the drop was a result of the DOJ announcement, or due to traders selling at the higher price, or both.
Despite the drop, Bitcoin has remained popular with investors, gaining 30 percent this year.
Graig Graziosi19 January 2023 03:00
What was ‘Hydra Market’?
What was ‘Hydra Market’, the dark web black market that was one of Bitzlato’s biggest customers?
According to the Department of Justice, Hydra Market is “an anonymous and illicit online marketplace for narcotics, stolen financial information, fraudulent identification documents, and money laundering services that was the largest and longest-running darknet marketplace in the world.” .
“Hydra Market users traded more than $700 million worth of cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shut down by U.S. and German law enforcement in April 2022,” the Justice Department wrote. “Bitzlato also received more than $15 million in ransomware proceeds.”
Graig Graziosi19 January 2023 02:00
ICYMI: Bitcoin Price Plunges Amid Major DOJ Crypto Announcement
The price of bitcoins has fallen 5 percent in the space of an hour after the US Department of Justice announced plans to introduce major cryptocurrency execution action.
The world’s leading cryptocurrency fell from $21,500 to around $20,500, reversing an uptrend that had seen its price rise by nearly a third since the start of the year.
read more of the independents Anthony Cuthbertson in his story below…
Graig GraziosiJanuary 19, 2023 01:00
Economist ‘Dr Doom’ Says ’90 Percent Of Crypto Is A Scam’ In Davos
Dr. Nouriel Roubini, who is sometimes called “Dr. Doom” for his gloomy economic predictions, said that “literally 90 percent of cryptocurrency is a scam” during the World Economic Forum in Davos on Wednesday.
“FTX and SBF are not an exception, they are the rule,” he said during a yahoo finance event.
He went on to predict an upcoming bust.
“Literally 90% of crypto is a scam. A criminal activity,” he said. “A total real bubble Ponzi scheme going bust.”
Graig Graziosi19 January 2023 00:00
ICYMI: Crypto Crime Ring Shut Down in ‘Significant Blow’ to Scammers, Justice Department Announces
The US Department of Justice has announced that it has dealt a “significant blow” to the crypto crime landscape after arresting a Russian national who allegedly founded a major online criminal platform.
The Bitzlato cryptocurrency exchange processed more than $700 million in illicit funds, according to the Justice Department, advertising its services to users who were “known criminals.”
The alleged founder Anatoly Legkodymov was arrested in Miami on Tuesday. read more of the independents Anthony Cuthbertson in his story below…
Graig Graziosi18 January 2023 23:00
Cryptocurrency exchange targeted by DOJ responding with “oops, sorry” to clients on automated social media channel
China-based cryptocurrency exchange Bitzlato, whose chief executive Anatoly Legkodymov was arrested by the DOJ in Miami on Tuesday, is responding to its clients via an automated Telegraph message with the phrase “oops, sorry” along with with a sad face emoji, according to nbc news.
The Justice Department alleges that the company frequently dealt with the Hydra Market, an illicit digital marketplace and haven for ransomware attackers. The agency alleged that Mr. Legkodymov knew that his clients were involved in criminal activity and used aliases to hide his identities.
Graig GraziosiJanuary 18, 2023 9:30 PM
