Kimchi Premium Trading Total Could Be Almost Twice as High as First Thought, Says Regulator
The sum total of illegal kimchi premium trading conducted via South Korean banks could be as high as USD 6.5 billion, regulators claim – and authorities in the nation say they are now investigating “all” domestic commercial banks over the matter.
As previously reported, banks have landed in hot water over kimchi premium trading after it emerged that individual and corporate customers – including a number of alleged domestic shell companies – had used South Korean financial institutions to shuttle money in and out of the country to fund massive kimchi premium arbitrage efforts.
In recent years, crypto fever has seen huge spikes in domestic demand for tokens such as bitcoin (BTC). This, in turn, has created a “kimchi premium,” whereby coins trade for massively inflated prices in South Korea (compared to the global average). This has led some traders to buy tokens from over-the-counter (OTC) vendors in China, Japan, and elsewhere in East Asia. The South Korean traders then dumped these coins on domestic platforms, reaping massive profits (over 30% in some instances).
Regulators argue that these profits were then distributed to various shell companies, which then sent the money to USD accounts in overseas financial institutions. Some bought expensive assets, such as precious metals, from overseas – using South Korean banks to do so.
Initially, the Financial Supervisory Service (FSS) said that only two banks may have violated its overseas remittances regulations, namely Woori Bank and Shinhan Bank.
The FSS requires banks to carefully monitor overseas remittance requests and, in the past year or so, has reportedly “repeatedly” warned all South Korean banks to be vigilant about possible kimchi premium-related remittances.
Last month, the FSS stated that it believed that some USD 3.37 billion may have been remitted overseas by various traders using domestic banks. Banks have since launched internal audits, many of which have turned up suspicious-looking transactions.
The FSS, Asia Time reported, has responded by revising its approximation to around USD 6.5 billion – almost double its initial estimate. It also stated that “all banks” are now under investigation. Upon the completion of banks’ internal investigations, the FSS is likely to follow up with its own “on-site” probes.
The FSS was quoted as stating that punitive actions against banks were “inevitable,” and added that it was taking the matter “extremely seriously.”
Late last week, one of the alleged shell companies thought to have been at the center of a large number of the suspicious transactions in question was raided by prosecutors.
The firm, described as a very small “trading” company, is based in Daegu, in the south of the country, and reportedly “sent large sums of money overseas” to “import gold bars and semiconductor chips.”
Some USD 5 billion worth of transactions appear to be linked to the firm, YTN reported, and prosecutors say they have so far “confirmed” that the company spent over USD 305 million of the funds it received from crypto sales on chips and gold imports.
Prosecutors arrested three individuals they claim are linked to the company on suspicion of violating the Foreign Exchange Transactions Act.
The prosecution indicated that the firm or individuals with ties to it used Japan-based OTC vendors to make their initial purchases.
The sum total of illegal kimchi premium trading conducted via South Korean banks could be as high as USD 6.5 billion, regulators claim – and authorities in the nation say they are now investigating “all” domestic commercial banks over the matter.
As previously reported, banks have landed in hot water over kimchi premium trading after it emerged that individual and corporate customers – including a number of alleged domestic shell companies – had used South Korean financial institutions to shuttle money in and out of the country to fund massive kimchi premium arbitrage efforts.
In recent years, crypto fever has seen huge spikes in domestic demand for tokens such as bitcoin (BTC). This, in turn, has created a “kimchi premium,” whereby coins trade for massively inflated prices in South Korea (compared to the global average). This has led some traders to buy tokens from over-the-counter (OTC) vendors in China, Japan, and elsewhere in East Asia. The South Korean traders then dumped these coins on domestic platforms, reaping massive profits (over 30% in some instances).
Regulators argue that these profits were then distributed to various shell companies, which then sent the money to USD accounts in overseas financial institutions. Some bought expensive assets, such as precious metals, from overseas – using South Korean banks to do so.
Initially, the Financial Supervisory Service (FSS) said that only two banks may have violated its overseas remittances regulations, namely Woori Bank and Shinhan Bank.
The FSS requires banks to carefully monitor overseas remittance requests and, in the past year or so, has reportedly “repeatedly” warned all South Korean banks to be vigilant about possible kimchi premium-related remittances.
Last month, the FSS stated that it believed that some USD 3.37 billion may have been remitted overseas by various traders using domestic banks. Banks have since launched internal audits, many of which have turned up suspicious-looking transactions.
The FSS, Asia Time reported, has responded by revising its approximation to around USD 6.5 billion – almost double its initial estimate. It also stated that “all banks” are now under investigation. Upon the completion of banks’ internal investigations, the FSS is likely to follow up with its own “on-site” probes.
The FSS was quoted as stating that punitive actions against banks were “inevitable,” and added that it was taking the matter “extremely seriously.”
Late last week, one of the alleged shell companies thought to have been at the center of a large number of the suspicious transactions in question was raided by prosecutors.
The firm, described as a very small “trading” company, is based in Daegu, in the south of the country, and reportedly “sent large sums of money overseas” to “import gold bars and semiconductor chips.”
Some USD 5 billion worth of transactions appear to be linked to the firm, YTN reported, and prosecutors say they have so far “confirmed” that the company spent over USD 305 million of the funds it received from crypto sales on chips and gold imports.
Prosecutors arrested three individuals they claim are linked to the company on suspicion of violating the Foreign Exchange Transactions Act.
The prosecution indicated that the firm or individuals with ties to it used Japan-based OTC vendors to make their initial purchases.
Thai SEC Cautions Investors About Risks of DeFi Transactions
Legal
The Securities and Exchange Commission of Thailand (Thai SEC) has asked crypto investors in the country to be careful with DeFi transactions, terming them risky.
The watchdog argued that local regulators have no control over the up-and-coming industry.
Popular but Not Full-Proof
In a statement on Wednesday, the financial and capital markets watchdog said DeFi serviÿces have become popular, especially deposit taking and lending services. But these services are risky as the mechanism to control operations that enforce terms in smart contracts may be absent in DeFi platforms.
“Therefore investors are advised to study any DeFi programme before joining… as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand,” media reports quoted from Thai SCE’s statement.
Further enumerating the risks, the watchdog noted that overleveraged collateral and lackaccurateoper information about terms, conditions, and functionalitcould can leave the investors exposed to exploitation. DeFi platforms lure investors into transactions showing high returns, but there are hidden risks, including the possibility of the rug-pull, it added.
Thai SEC’s warning comes in the wake of crypto exchange Zipmex halting withdrawals for its local customers on July 21. Zipmex’s decision stemmed from liquidity problems arising out of its $53-million exposure to troubled lending platforms Babel Finance and Celsius Network.
Legal
The Securities and Exchange Commission of Thailand (Thai SEC) has asked crypto investors in the country to be careful with DeFi transactions, terming them risky.
The watchdog argued that local regulators have no control over the up-and-coming industry.
Popular but Not Full-Proof
In a statement on Wednesday, the financial and capital markets watchdog said DeFi serviÿces have become popular, especially deposit taking and lending services. But these services are risky as the mechanism to control operations that enforce terms in smart contracts may be absent in DeFi platforms.
“Therefore investors are advised to study any DeFi programme before joining… as deposit taking and lending services are not regulated by the financial and capital market regulators in Thailand,” media reports quoted from Thai SCE’s statement.
Further enumerating the risks, the watchdog noted that overleveraged collateral and lackaccurateoper information about terms, conditions, and functionalitcould can leave the investors exposed to exploitation. DeFi platforms lure investors into transactions showing high returns, but there are hidden risks, including the possibility of the rug-pull, it added.
Thai SEC’s warning comes in the wake of crypto exchange Zipmex halting withdrawals for its local customers on July 21. Zipmex’s decision stemmed from liquidity problems arising out of its $53-million exposure to troubled lending platforms Babel Finance and Celsius Network.
Stablecoin Issuers Have Accumulated A Significant Share Of The US Treasury Market
Finance
Various stablecoin issuers collectively held $80 bln in short-term US government debt as of May 2022, according to a study by investment bank JPMorgan released on August 16.
Tether, Circle and other stablecoin companies accounted for 2% of the entire US Treasury bill market, with a larger share of Treasury bills than Warren BUFFETT'S Berkshire Hathaway. According to the data, stablecoin issuers also outperformed offshore money market funds (MMFs) and primary market MMFs in terms of their share of investment in Treasury bills.
Treasury bills are debt instruments commonly used by companies as a cash equivalent on corporate balance sheets. Tether and Circle — the issuers of the world’s largest asset-backed stablecoins, Tether and USD Coin (USDC) — have pledged to buy U.S. Treasury bills while cutting their reliance on commercial paper earlier this year.
Finance
Various stablecoin issuers collectively held $80 bln in short-term US government debt as of May 2022, according to a study by investment bank JPMorgan released on August 16.
Tether, Circle and other stablecoin companies accounted for 2% of the entire US Treasury bill market, with a larger share of Treasury bills than Warren BUFFETT'S Berkshire Hathaway. According to the data, stablecoin issuers also outperformed offshore money market funds (MMFs) and primary market MMFs in terms of their share of investment in Treasury bills.
Treasury bills are debt instruments commonly used by companies as a cash equivalent on corporate balance sheets. Tether and Circle — the issuers of the world’s largest asset-backed stablecoins, Tether and USD Coin (USDC) — have pledged to buy U.S. Treasury bills while cutting their reliance on commercial paper earlier this year.
Second Biggest Brazilian Bank Bradesco Not Interested in Crypto, Alleges It Is Still 'Very Small'
Bradesco, one of the biggest banks in Brazil, has stated it does not have plans to enter the cryptocurrency market in the near future. In an interview, Bradesco CEO Octavio de Lazari Junior stated that the company was currently not interested in launching crypto services to its customers, considering the cryptocurrency market will be “very small.”
Bradesco Won’t Offer Cryptocurrency Services In Near Future
While many neobanks and traditional private banks are launching crypto investment services as part of their portfolio to keep customers using their services, others are still on the sidelines. Bradesco, the second biggest bank in Brazil and Latam in terms of assets, with more than 70 million customers, is still not interested in the cryptocurrency market.
Bradesco CEO Octavio de Lazari Junior issued his take on cryptocurrency and how he believes these investments will evolve in the country. For de Lazari Junior, The cryptocurrency market is still too small, with dangerous characteristics for the investors interested in putting funds in it. About this, he stated:
Cryptocurrencies are investments that are not tangible and are riskier, with people knowing about the risk they are taking and may want. For me, it will be a very small market.
Bradesco, one of the biggest banks in Brazil, has stated it does not have plans to enter the cryptocurrency market in the near future. In an interview, Bradesco CEO Octavio de Lazari Junior stated that the company was currently not interested in launching crypto services to its customers, considering the cryptocurrency market will be “very small.”
Bradesco Won’t Offer Cryptocurrency Services In Near Future
While many neobanks and traditional private banks are launching crypto investment services as part of their portfolio to keep customers using their services, others are still on the sidelines. Bradesco, the second biggest bank in Brazil and Latam in terms of assets, with more than 70 million customers, is still not interested in the cryptocurrency market.
Bradesco CEO Octavio de Lazari Junior issued his take on cryptocurrency and how he believes these investments will evolve in the country. For de Lazari Junior, The cryptocurrency market is still too small, with dangerous characteristics for the investors interested in putting funds in it. About this, he stated:
Cryptocurrencies are investments that are not tangible and are riskier, with people knowing about the risk they are taking and may want. For me, it will be a very small market.
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Today we have a special announcement for you: the partnership with BrainStarter, a project that:
- consists of a fully doxxed team with OVER 20 years of experience in R+D and 10+ years in creating new ventures,
- is currently completing its VC round,
- is about to launch its marketing campaign in Q4!
They're launching their Telegram channel quietly, reaching out to 500 crypto veterans that'll form the most-early fundaments of their community. There are only a few communities invited and ours is one of them!
How to join the BrainStarter closed community?
1. Fill out the survey "What type of HODLER are you?". (2min)
2. Leave your email before the end of the survey
3. Join BrainStarter telegram channel using this link: https://t.me/+L48Fp9hj4Y8yZDI0
Only the first 500 can join, act fast!
Survey:
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Is It Time To Begin Talking Seriously About Bitcoin Tail Emissions?
It’s almost a truism that Bitcoin (BTC)’s major selling point is its hard supply cap, limiting its total possible circulation to BTC 21 million. However, contrary to this received wisdom, there seems to be a growing chorus of people who worry that a hard cap isn’t without its problems, and that Bitcoin will run into difficulties when its block rewards become too small (and later stop completely).
A recent surge in discussion about this issue was incited by developer Peter Todd, who in July published a paper titled, “Surprisingly, Tail Emission Is Not Inflationary.” Basically, Todd noted that “no proof-of-work (PoW) currency has ever operated solely on transaction fees,” and that the lack of rewards may make block production unstable in the future.
Given how well respected Peter Todd is within cryptocurrency circles, many other serious commentators have taken his arguments as the launchpad for an exploration of whether Bitcoin’s monetary policy needs to be modified in the not-too-distant future. And there does seem to be support for the introduction of so-called tail emissions, even if this support isn’t unanimous.
Mixed support for Bitcoin tail emissions
It’s not too hard to find industry figures who’d support the introduction of tail emissions, which in practice means that block rewards would continue indefinitely. In other words, Bitcoin’s famed hard cap of 21 million would effectively be abolished, although it’s likely that any perpetual reward would be small.
“I have been very vocal for two years already, about needing tail emissions at some point in time in Bitcoin. These tail emissions will only be necessary after four or five halvings, so in about 15-20 years,” says Dr. Julian Hosp, the CEO and founder of Cake DeFi.
Hosp argues that most Bitcoin hardliners either don't understand the need for tail emissions, or are burying their heads in the sand in order to maintain the simple -- and attractive -- narrative of the supply cap.
It’s almost a truism that Bitcoin (BTC)’s major selling point is its hard supply cap, limiting its total possible circulation to BTC 21 million. However, contrary to this received wisdom, there seems to be a growing chorus of people who worry that a hard cap isn’t without its problems, and that Bitcoin will run into difficulties when its block rewards become too small (and later stop completely).
A recent surge in discussion about this issue was incited by developer Peter Todd, who in July published a paper titled, “Surprisingly, Tail Emission Is Not Inflationary.” Basically, Todd noted that “no proof-of-work (PoW) currency has ever operated solely on transaction fees,” and that the lack of rewards may make block production unstable in the future.
Given how well respected Peter Todd is within cryptocurrency circles, many other serious commentators have taken his arguments as the launchpad for an exploration of whether Bitcoin’s monetary policy needs to be modified in the not-too-distant future. And there does seem to be support for the introduction of so-called tail emissions, even if this support isn’t unanimous.
Mixed support for Bitcoin tail emissions
It’s not too hard to find industry figures who’d support the introduction of tail emissions, which in practice means that block rewards would continue indefinitely. In other words, Bitcoin’s famed hard cap of 21 million would effectively be abolished, although it’s likely that any perpetual reward would be small.
“I have been very vocal for two years already, about needing tail emissions at some point in time in Bitcoin. These tail emissions will only be necessary after four or five halvings, so in about 15-20 years,” says Dr. Julian Hosp, the CEO and founder of Cake DeFi.
Hosp argues that most Bitcoin hardliners either don't understand the need for tail emissions, or are burying their heads in the sand in order to maintain the simple -- and attractive -- narrative of the supply cap.
Iranian Government Approves 'Comprehensive and Detailed' Crypto Regulations
The government of Iran has finalized a set of cryptocurrency regulations. A “comprehensive and detailed” law ratified by the administration provides a regulatory framework for cryptocurrency, including their authorized usage and crypto mining, a government official reportedly said.
Iran Finalizes Crypto Regulations
The Iranian government has evaluated all issues relating to cryptocurrencies and approved a set of cryptocurrency regulations, Reza Fatemi-Amin, the minister of Industry, Mines, and Trade, told reporters at the conclusion of an automotive industry event in Tehran Sunday.
He explained that the government has ratified a “comprehensive and detailed” law that defines cryptocurrency regulations, including the use of fuel and electricity for crypto mining and the authorized uses of cryptocurrencies, Tasnim news agency conveyed.
The minister added that under an agreement between his ministry and the central bank of Iran, cryptocurrency can be used to pay for imports. He additionally noted that local business owners can import cars using cryptocurrencies instead of the U.S. dollar or euro.
The use of cryptocurrency to pay for imports is seen as a way to circumvent U.S. sanctions imposed on the Iranian finance and banking sector, allowing Iran to trade with countries similarly embargoed by U.S. sanctions, including Russia.
The government of Iran has finalized a set of cryptocurrency regulations. A “comprehensive and detailed” law ratified by the administration provides a regulatory framework for cryptocurrency, including their authorized usage and crypto mining, a government official reportedly said.
Iran Finalizes Crypto Regulations
The Iranian government has evaluated all issues relating to cryptocurrencies and approved a set of cryptocurrency regulations, Reza Fatemi-Amin, the minister of Industry, Mines, and Trade, told reporters at the conclusion of an automotive industry event in Tehran Sunday.
He explained that the government has ratified a “comprehensive and detailed” law that defines cryptocurrency regulations, including the use of fuel and electricity for crypto mining and the authorized uses of cryptocurrencies, Tasnim news agency conveyed.
The minister added that under an agreement between his ministry and the central bank of Iran, cryptocurrency can be used to pay for imports. He additionally noted that local business owners can import cars using cryptocurrencies instead of the U.S. dollar or euro.
The use of cryptocurrency to pay for imports is seen as a way to circumvent U.S. sanctions imposed on the Iranian finance and banking sector, allowing Iran to trade with countries similarly embargoed by U.S. sanctions, including Russia.
Eurozone hits record inflation of 9.1% amid gas and energy crisis.
Eurozone inflation is up from 8.9% in July as the continent faces skyrocketing energy, gas and food prices due to the ongoing crisis in Ukraine.
August marks the ninth consecutive month of rising inflation for the Eurozone at 9.1%. In July, the official inflation numbers landed at 8.9%. The Eurozone consists of 19 countries, including Germany, France and Belgium.
This comes as the European Union (EU) faces a massive energy and gas crisis, largely as a result of the ongoing conflict in Ukraine. Current prices for daily necessities such as food, gas and electricity have soared across the continent.
Over the last month, energy prices made up the largest price push, up by an annual rate of 38.3%, While food, alcohol and tobacco all rose by an annual rate of over 10%.
Former EU member the United Kingdom also hit a 40-year-high inflation rate of 10.1% in July, as reported by the Organization of National Statistics (ONS).
Eurozone countries Estonia and the Netherlands both experienced noticeable inflation spikes of 2% up from July.
Florian Glatz, an EU-based lawyer specializing in blockchain technology, co-founder of the German Blockchain Association and member of the EU Crypto Initative, told Cointelegraph:
“Europe is facing historic challenges, with inflation eroding away the economic security of middle and lower income households.”
Moreover, Glatz believes the crypto industry has been warning global governments that current monetary and economic systems “don‘t hold up to the challenges” at hand.
Among those who have already adopted crypto, it's often seen as a hedge against inflation. Though, for this to work, the crypto community must continue to push for mass adoption and proper implementation.
Glatz says the EU needs to become relevant in the digital economy to present a better value proposition for the financial future of its people.
“We need a new deal for EU citizens that is powered by financial inclusion, opportunities in new digital markets and the desire to make Web3 the long-awaited Digital Revolution made in Europe.”
Eurozone inflation is up from 8.9% in July as the continent faces skyrocketing energy, gas and food prices due to the ongoing crisis in Ukraine.
August marks the ninth consecutive month of rising inflation for the Eurozone at 9.1%. In July, the official inflation numbers landed at 8.9%. The Eurozone consists of 19 countries, including Germany, France and Belgium.
This comes as the European Union (EU) faces a massive energy and gas crisis, largely as a result of the ongoing conflict in Ukraine. Current prices for daily necessities such as food, gas and electricity have soared across the continent.
Over the last month, energy prices made up the largest price push, up by an annual rate of 38.3%, While food, alcohol and tobacco all rose by an annual rate of over 10%.
Former EU member the United Kingdom also hit a 40-year-high inflation rate of 10.1% in July, as reported by the Organization of National Statistics (ONS).
Eurozone countries Estonia and the Netherlands both experienced noticeable inflation spikes of 2% up from July.
Florian Glatz, an EU-based lawyer specializing in blockchain technology, co-founder of the German Blockchain Association and member of the EU Crypto Initative, told Cointelegraph:
“Europe is facing historic challenges, with inflation eroding away the economic security of middle and lower income households.”
Moreover, Glatz believes the crypto industry has been warning global governments that current monetary and economic systems “don‘t hold up to the challenges” at hand.
Among those who have already adopted crypto, it's often seen as a hedge against inflation. Though, for this to work, the crypto community must continue to push for mass adoption and proper implementation.
Glatz says the EU needs to become relevant in the digital economy to present a better value proposition for the financial future of its people.
“We need a new deal for EU citizens that is powered by financial inclusion, opportunities in new digital markets and the desire to make Web3 the long-awaited Digital Revolution made in Europe.”
Two US States Washington and Pennsylvania To Tax NFTs
Washington and Pennsylvania Lead the Way in NFT Taxation.
Digital assets are notoriously difficult to tax due to the lack of transparency around who owns and trades them. This is especially true for non-fungible tokens (NFTs), which are unique digital assets that can’t be interchangeably exchanged like traditional cryptocurrencies.
Recently, two states have taken steps to change this by becoming the first in the US to explicitly list NFTs as digital assets subject to sales and use taxes. Pennsylvania and Washington’s actions signal a growing understanding of the tax implications of NFTs, as well as a willingness to adapt existing tax laws to this new asset class.
Pennsylvania’s Department of Revenue was the first to act, adding NFTs to its “taxability matrix” in June without providing any accompanying guidance. Washington followed suit in July, publishing an interim statement that proposed a schema for determining the “sourcing” of NFTs (or where, for tax purposes, related transactions physically take place).
The present ecosystem around NFTs is not clear regarding the identities of buyers and sellers, down to where they are located. Additionally, the way NFTs are currently being used – often as unique digital collectibles rather than for utility purposes – means that there is no easy way to value them for tax purposes.
Washington and Pennsylvania Lead the Way in NFT Taxation.
Digital assets are notoriously difficult to tax due to the lack of transparency around who owns and trades them. This is especially true for non-fungible tokens (NFTs), which are unique digital assets that can’t be interchangeably exchanged like traditional cryptocurrencies.
Recently, two states have taken steps to change this by becoming the first in the US to explicitly list NFTs as digital assets subject to sales and use taxes. Pennsylvania and Washington’s actions signal a growing understanding of the tax implications of NFTs, as well as a willingness to adapt existing tax laws to this new asset class.
Pennsylvania’s Department of Revenue was the first to act, adding NFTs to its “taxability matrix” in June without providing any accompanying guidance. Washington followed suit in July, publishing an interim statement that proposed a schema for determining the “sourcing” of NFTs (or where, for tax purposes, related transactions physically take place).
The present ecosystem around NFTs is not clear regarding the identities of buyers and sellers, down to where they are located. Additionally, the way NFTs are currently being used – often as unique digital collectibles rather than for utility purposes – means that there is no easy way to value them for tax purposes.
Florida Man Pleads Guilty to Role in $100M Crypto Investment Ponzi Scheme
A Florida man pleaded guilty on Thursday for his role in a global crypto Ponzi scheme that defrauded investors of approximately $100 million, according to the Department of Justice.
Joshua David Nicholas, 28, was the “head trader” for EmpiresX, which was launched in late 2020 and was advertised to hopeful investors as a legitimate cryptocurrency trading and investment platform.
Nicholas and EmpiresX’s founders, Emerson Sousa Pires and Flavio Mendes Goncalves, both 33, promised investors that their proprietary artificial intelligence-powered “trading bot” guaranteed returns of up to 1% a day.
However, the bot did not exist, and Nicholas’ manual trading “resulted in significant losses,” according to the SEC, which filed civil fraud charges against the group in June. Customers were instead paid with money fed into the scam by later investors. The rest of the money was used to “lease a Lamborghini, shop at Tiffany & Co., make a payment on a second home, and more,” the SEC said.
A Florida man pleaded guilty on Thursday for his role in a global crypto Ponzi scheme that defrauded investors of approximately $100 million, according to the Department of Justice.
Joshua David Nicholas, 28, was the “head trader” for EmpiresX, which was launched in late 2020 and was advertised to hopeful investors as a legitimate cryptocurrency trading and investment platform.
Nicholas and EmpiresX’s founders, Emerson Sousa Pires and Flavio Mendes Goncalves, both 33, promised investors that their proprietary artificial intelligence-powered “trading bot” guaranteed returns of up to 1% a day.
However, the bot did not exist, and Nicholas’ manual trading “resulted in significant losses,” according to the SEC, which filed civil fraud charges against the group in June. Customers were instead paid with money fed into the scam by later investors. The rest of the money was used to “lease a Lamborghini, shop at Tiffany & Co., make a payment on a second home, and more,” the SEC said.
US court gives Voyager green light to pay bonuses to key employees.
Voyager Digital will pay $1.9 million in retention bonuses to key staff members to ensure the beleaguered cryptocurrency lender can continue operating through bankruptcy proceedings.
A New York bankruptcy court has given embattled cryptocurrency brokerage Voyager Digital the green light to pay retention bonuses to key staff members.
The firm filed a motion with the United States Bankruptcy Court on Aug. 2 seeking approval for its Key Employee Retention Plan (KERP) which entailed $1.9 million worth of payments to 38 key employees that have been identified as crucial to the exchange’s ongoing operation.
Creditors of the firm, which filed for bankruptcy in July 2022, had initially opposed Voyager’s KERP payments in a court filing on Aug. 19 claiming that payments to investors should be prioritized ahead of “well-compensated” employees.
According to court filings, an agreement was reached between Voyager and the committee of creditors to drop the opposition to the proposed KERP on certain conditions. Chief among these is the implementation of operational cost-cutting measures to save $4.6 million. The KERP payments are worth 22.5% of the eligible employees’ annual salaries.
Voyager maintains that the 38 employees are critical to business operations, performing “essential accounting, cash and digital asset management, IT infrastructure, legal and other critical functions for the Debtors.”
The court filing also addressed concerns raised by the U.S. Trustee's Office, which oversees the administration of bankruptcy cases and private trustees as a component of the Department of Justice.
The U.S. Trustees objected to the KERP proposal claiming that the list of employees set for retention pay-outs may have included “insiders” and that Voyager had not provided ample evidence to justify the proposed bonuses.
U.S. Bankruptcy Judge Michael Wiles ultimately approved the motion for the KERP payouts, agreeing with Voyagers’ legal team’s assertion that none of the beneficiaries of the bonuses were appointed, sit or report to the board of directors and do not have managerial control of the company.
Voyager Digital will pay $1.9 million in retention bonuses to key staff members to ensure the beleaguered cryptocurrency lender can continue operating through bankruptcy proceedings.
A New York bankruptcy court has given embattled cryptocurrency brokerage Voyager Digital the green light to pay retention bonuses to key staff members.
The firm filed a motion with the United States Bankruptcy Court on Aug. 2 seeking approval for its Key Employee Retention Plan (KERP) which entailed $1.9 million worth of payments to 38 key employees that have been identified as crucial to the exchange’s ongoing operation.
Creditors of the firm, which filed for bankruptcy in July 2022, had initially opposed Voyager’s KERP payments in a court filing on Aug. 19 claiming that payments to investors should be prioritized ahead of “well-compensated” employees.
According to court filings, an agreement was reached between Voyager and the committee of creditors to drop the opposition to the proposed KERP on certain conditions. Chief among these is the implementation of operational cost-cutting measures to save $4.6 million. The KERP payments are worth 22.5% of the eligible employees’ annual salaries.
Voyager maintains that the 38 employees are critical to business operations, performing “essential accounting, cash and digital asset management, IT infrastructure, legal and other critical functions for the Debtors.”
The court filing also addressed concerns raised by the U.S. Trustee's Office, which oversees the administration of bankruptcy cases and private trustees as a component of the Department of Justice.
The U.S. Trustees objected to the KERP proposal claiming that the list of employees set for retention pay-outs may have included “insiders” and that Voyager had not provided ample evidence to justify the proposed bonuses.
U.S. Bankruptcy Judge Michael Wiles ultimately approved the motion for the KERP payouts, agreeing with Voyagers’ legal team’s assertion that none of the beneficiaries of the bonuses were appointed, sit or report to the board of directors and do not have managerial control of the company.
Crypto Volatility Might Rise After The Major Key Events Ahead
The crypto market has been filled with so much volatility in the past months. Bitcoin price barely gained a 1% increase to the $20,373 mark; Ethereum and other altcoins prices are still in the dump. Crypto community members and experts predict a further slump come October.
Amidst the market highs and lows, the industry is set to record three significant events this week. Perhaps, the market will experience more volatility in the coming months, considering the happenings in the industry in the previous months.
Merge Might Affect The Crypto Market
This week comes the most intensive upgrade in Ethereum history, known as the merge. The merge is slated to take place around September 15.
During the merge, the Ethereum blockchain will transition from proof-of-work (POW) to proof-of-stake (POS). Ethereum mining rewards are approximately 13,000 ETH per day in the present POW system. After the merge, the staking rewards will become only 1,600 ETH per day approximately.
According to a blog post by the Ethereum Foundation on the official website, ETH issuance will drop by 90% after the merge. The burning of ETH will be at an average gas price of 19 gwei, and 1,600 ETH will be burned daily, reducing net ETH inflation to zero.
Countdown to the time of the merge upgrade is one, but the unavoidable fact is the increase in market volatility post-merge.
The crypto market has been filled with so much volatility in the past months. Bitcoin price barely gained a 1% increase to the $20,373 mark; Ethereum and other altcoins prices are still in the dump. Crypto community members and experts predict a further slump come October.
Amidst the market highs and lows, the industry is set to record three significant events this week. Perhaps, the market will experience more volatility in the coming months, considering the happenings in the industry in the previous months.
Merge Might Affect The Crypto Market
This week comes the most intensive upgrade in Ethereum history, known as the merge. The merge is slated to take place around September 15.
During the merge, the Ethereum blockchain will transition from proof-of-work (POW) to proof-of-stake (POS). Ethereum mining rewards are approximately 13,000 ETH per day in the present POW system. After the merge, the staking rewards will become only 1,600 ETH per day approximately.
According to a blog post by the Ethereum Foundation on the official website, ETH issuance will drop by 90% after the merge. The burning of ETH will be at an average gas price of 19 gwei, and 1,600 ETH will be burned daily, reducing net ETH inflation to zero.
Countdown to the time of the merge upgrade is one, but the unavoidable fact is the increase in market volatility post-merge.
Starbucks announces new NFT experience for coffee members.
The nonfungible tokens, or NFTs, are minted on a proof-of-stake blockchain built by Polygon.
According to a new post on Monday, Starbucks says it will offer its U.S. members the ability to earn and buy digital collectible stamps in the form of nonfungible tokens, or NFTs. Dubbed "Starbucks Odyssey," each collectible digital stamp has its ownership verified on the blockchain and will include a point value based on its rarity. As more stamps are collected, members' points will increase, unlocking access to unique experiences.
The iconic coffee chain says that rewards range from receiving a virtual espresso martini-making class to accessing unique merchandise to exclusive events invites at Starbucks Reserve Roasteries and possibly trips to the Starbucks Hacienda Alsacia coffee farm in Costa Rica.
Members can earn NFTs by playing interactive coffee-themed games or taking on fun challenges on Starbucks Odyssey, which will be launched later this year. Users can also purchase the NFTs on the built-in marketplace without the need to connect their wallets or use any crypto.
All stamps will feature iconic Starbucks artwork co-created with Starbucks partners and outside artists. A portion of the proceeds from selling limited-edition stamps will be donated to support the creators' causes. The NFTs themselves are minted on a proof-of-stake blockchain created by Polygon. Regarding the development, Brady Brewer, vice president and chief marketing offic of Starbucks, said:
"We are entering the Web3 space differently than any other brand while deepening our members' connection to Starbucks. Our vision is to create a place where our digital community can come together over coffee, engage in immersive experiences, and celebrate the heritage and future of Starbucks."
The nonfungible tokens, or NFTs, are minted on a proof-of-stake blockchain built by Polygon.
According to a new post on Monday, Starbucks says it will offer its U.S. members the ability to earn and buy digital collectible stamps in the form of nonfungible tokens, or NFTs. Dubbed "Starbucks Odyssey," each collectible digital stamp has its ownership verified on the blockchain and will include a point value based on its rarity. As more stamps are collected, members' points will increase, unlocking access to unique experiences.
The iconic coffee chain says that rewards range from receiving a virtual espresso martini-making class to accessing unique merchandise to exclusive events invites at Starbucks Reserve Roasteries and possibly trips to the Starbucks Hacienda Alsacia coffee farm in Costa Rica.
Members can earn NFTs by playing interactive coffee-themed games or taking on fun challenges on Starbucks Odyssey, which will be launched later this year. Users can also purchase the NFTs on the built-in marketplace without the need to connect their wallets or use any crypto.
All stamps will feature iconic Starbucks artwork co-created with Starbucks partners and outside artists. A portion of the proceeds from selling limited-edition stamps will be donated to support the creators' causes. The NFTs themselves are minted on a proof-of-stake blockchain created by Polygon. Regarding the development, Brady Brewer, vice president and chief marketing offic of Starbucks, said:
"We are entering the Web3 space differently than any other brand while deepening our members' connection to Starbucks. Our vision is to create a place where our digital community can come together over coffee, engage in immersive experiences, and celebrate the heritage and future of Starbucks."
FTX CEO Sam Bankman-Fried Says Firm Still Has $1,000,000,000 in Cash Left To Deploy for Acquisitions
The chief executive of crypto derivatives exchange FTX says that the company still has a sizable amount of cash left to burn on acquisitions.
In a new interview with CNBC’s Squawk Box, FTX CEO Sam Bankman-Fried says the firm still has about $1 billion in cash on the sidelines ready to help ailing crypto firms.
“We did not try to empty the coffers, so to speak. We had a couple billion going into this, and it lines up roughly with the amount that we’ve raised over the last year and on top of that we’ve been profitable.”
When asked if he had about a $1 billion left to deploy, Bankman-Fried said,
“Yeah, and you have the issue of how much we really feel comfortable deploying seeing as there’s another ballpark billion that is completely unencumbered. [That] certainly would get you within a factor of two [of] the right answer.”
The chief executive of crypto derivatives exchange FTX says that the company still has a sizable amount of cash left to burn on acquisitions.
In a new interview with CNBC’s Squawk Box, FTX CEO Sam Bankman-Fried says the firm still has about $1 billion in cash on the sidelines ready to help ailing crypto firms.
“We did not try to empty the coffers, so to speak. We had a couple billion going into this, and it lines up roughly with the amount that we’ve raised over the last year and on top of that we’ve been profitable.”
When asked if he had about a $1 billion left to deploy, Bankman-Fried said,
“Yeah, and you have the issue of how much we really feel comfortable deploying seeing as there’s another ballpark billion that is completely unencumbered. [That] certainly would get you within a factor of two [of] the right answer.”
Eurocoinpay Partners With Mastercard to Launch One of the First Cryptocurrency Based Cards in Spain
Eurocoinpay, a Spanish cryptocurrency exchange, has closed a deal to offer one of the first cryptocurrency-based debit cards in Spain. The card, which is already available for customers of Eurocoinpay, will allow users to acquire products in more than 90 million establishments in the European Union and around the world.
Eurocoinpay Aims to Introduce Crypto Payments in Spain
Eurocoinpay, a cryptocurrency exchange based in Spain, and registered with the Bank of Spain, has partnered with Mastercard to become one of the first companies in the country to offer its own cryptocurrency-based debit card. The company, which has been always interested in including cryptocurrency solutions as payment methods, believes that this will help its customers make better use of cryptocurrency assets.
Herminio Fernandez de Blas, CEO of Eurocoinpay, believes this kind of intermediate product is necessary in order to popularize crypto. He stated this move “consolidates purchases with cryptocurrencies, something that is increasingly being implemented in a greater number of stores that accept these digital assets as a payment method.”
According to Mastercard CEO Michael Miebach, this card will help Eurocoinpay users to make purchases at more than 90 million stores worldwide.
Eurocoinpay, a Spanish cryptocurrency exchange, has closed a deal to offer one of the first cryptocurrency-based debit cards in Spain. The card, which is already available for customers of Eurocoinpay, will allow users to acquire products in more than 90 million establishments in the European Union and around the world.
Eurocoinpay Aims to Introduce Crypto Payments in Spain
Eurocoinpay, a cryptocurrency exchange based in Spain, and registered with the Bank of Spain, has partnered with Mastercard to become one of the first companies in the country to offer its own cryptocurrency-based debit card. The company, which has been always interested in including cryptocurrency solutions as payment methods, believes that this will help its customers make better use of cryptocurrency assets.
Herminio Fernandez de Blas, CEO of Eurocoinpay, believes this kind of intermediate product is necessary in order to popularize crypto. He stated this move “consolidates purchases with cryptocurrencies, something that is increasingly being implemented in a greater number of stores that accept these digital assets as a payment method.”
According to Mastercard CEO Michael Miebach, this card will help Eurocoinpay users to make purchases at more than 90 million stores worldwide.
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Payments Giant Stripe Now Supports Crypto Payouts for Freelancers in USDC
Payments giant Stripe has enabled payouts in Circle’s USD Coin (USDC) stablecoin for freelancers, according to an announcement posted on Sept. 22.
Circle co-founder Jeremy Allaire claims that the USDC coin represents a more inclusive means of sending money to people around the globe.
Freelances who live in countries with large unbanked populations will likely struggle to get paid for their work.
Hence, Striple’s recent addition of the USDC token could be a potential game-changer for such people since they are no longer restricted to traditional payment options.
Stripe estimates that roughly 4.4 billion people are now potentially able to receive payments in the USDC token.
“Such an important use case enabled by USDC!” Nikhil Chandhok, chief product officer at Circle, commented.
The Palo Alto, California-based company enabled cryptocurrency payments for in the USDC stablecoin back in April. Initially, the new service was available only for a select group of Twitter creators.
Early Bitcoin developer Jeff Garzik claims that stablecoins represent a “consumer-useful crypto killer app” in response to the Stripe news.
Stripe allow various cryptocurrency businesses, such as exchanges and wallet providers, to use its payments infrastructure.
Stripe enabled support for Bitcoin all the way back in 2015, becoming the first major payment company to do so. However, it then soured on the largest cryptocurrency and removed the option in 2018. After the 2021 bull run, Stripe decided to take another look at crypto now that it has gained more adoption.
Payments giant Stripe has enabled payouts in Circle’s USD Coin (USDC) stablecoin for freelancers, according to an announcement posted on Sept. 22.
Circle co-founder Jeremy Allaire claims that the USDC coin represents a more inclusive means of sending money to people around the globe.
Freelances who live in countries with large unbanked populations will likely struggle to get paid for their work.
Hence, Striple’s recent addition of the USDC token could be a potential game-changer for such people since they are no longer restricted to traditional payment options.
Stripe estimates that roughly 4.4 billion people are now potentially able to receive payments in the USDC token.
“Such an important use case enabled by USDC!” Nikhil Chandhok, chief product officer at Circle, commented.
The Palo Alto, California-based company enabled cryptocurrency payments for in the USDC stablecoin back in April. Initially, the new service was available only for a select group of Twitter creators.
Early Bitcoin developer Jeff Garzik claims that stablecoins represent a “consumer-useful crypto killer app” in response to the Stripe news.
Stripe allow various cryptocurrency businesses, such as exchanges and wallet providers, to use its payments infrastructure.
Stripe enabled support for Bitcoin all the way back in 2015, becoming the first major payment company to do so. However, it then soured on the largest cryptocurrency and removed the option in 2018. After the 2021 bull run, Stripe decided to take another look at crypto now that it has gained more adoption.
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✴️ Leading fan token platform Bitci.com’s mainnet coin Bitcicoin will be listed on Huobi !
Deposit: 09.28.2022 1 PM (UTC)
Listing Date: 09.30.2022 10.00 AM (UTC)
Withdrawal: 10.01.2022 1 PM (UTC)
⚡️⚡️ BİTCİCOIN ⚡️⚡️
- Main net coin of Bitcichain network
- It binds all products and services offered in the Bitci Ecosystem
- Tokens of each project running on Bitcichain may easily be converted to Bitcicoin, may be traded in Bitcicoin Market or other markets on different exchanges
- Bitcicoin is tradeable as itself and for to buy fan tokens and Bitcicoin is tradeable as itself and for to buy fan tokens and It gonna be used in NFT and gaming project
- Its value is determined with current and future fan token projects developed on Bitcichain.
⚙️⚙️ BİTCİCHAIN ⚙️⚙️
- It is the blockchain infrastructure of Bitci Teknoloji that develops private brand tokens for companies and institutions
- Fan tokens of sports clubs such as Spain National Football Team, Brazil National Football Team, Rangers Football Club, MOTOGP, McLaren are developed over Bitcichain blockchain network.
- Loyalty tokens are created on Bitcichain for companies.
- Businesses can distribute the tokens to their users as a reward, discount or prepaid over the personalized digital accounts offered by Bitcichain.
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Russia Starts Developing Mechanism for International Crypto Payments
Financial authorities in Russia have begun work on a mechanism to facilitate the employment of cryptocurrencies for settlements with other nations amid sanctions. The country’s central bank and finance ministry have already agreed on a draft law regulating cross-border crypto payments.
Russian authorities intend to regulate the issuance, circulation, and various operations with digital assets, including international crypto payments, by the end of 2022. The Ministry of Finance, the Central Bank of Russia, and the Rosfinmonitoring agency.
“The activities of organizations that will carry out exchange operations with digital currency, its transfer and storage, and providers of virtual asset services should be subject to regulation, including registration or licensing of such persons and their supervision,” Rosfinmonitoring explained and added that their responsibilities should also include combating money laundering.
The current version of the bill “On Digital Currency,” put forward by the finance ministry earlier this year and revised with input from other authorities, provides for the establishment of domestic infrastructure for crypto asset trading. Now, Russian regulators have turned their attention to the settlement mechanism for cryptocurrency payments in foreign trade.
Financial authorities in Russia have begun work on a mechanism to facilitate the employment of cryptocurrencies for settlements with other nations amid sanctions. The country’s central bank and finance ministry have already agreed on a draft law regulating cross-border crypto payments.
Russian authorities intend to regulate the issuance, circulation, and various operations with digital assets, including international crypto payments, by the end of 2022. The Ministry of Finance, the Central Bank of Russia, and the Rosfinmonitoring agency.
“The activities of organizations that will carry out exchange operations with digital currency, its transfer and storage, and providers of virtual asset services should be subject to regulation, including registration or licensing of such persons and their supervision,” Rosfinmonitoring explained and added that their responsibilities should also include combating money laundering.
The current version of the bill “On Digital Currency,” put forward by the finance ministry earlier this year and revised with input from other authorities, provides for the establishment of domestic infrastructure for crypto asset trading. Now, Russian regulators have turned their attention to the settlement mechanism for cryptocurrency payments in foreign trade.
