Mini Program: Daily Cryptocurrency Dynamics Summary
1. Economic Daily: Prevent virtual assets from becoming a tool for money laundering
The Economic Daily published an article today titled "Preventing Virtual Assets from Becoming Money Laundering Tools". The article states that at present, new technologies and new formats such as virtual assets are constantly being updated and iterated, showing a state of superposition with traditional upstream crimes such as telecommunications network fraud, online gambling, and underground banks. In order to cover up and conceal money laundering, criminals are constantly renovating their methods and hiding money laundering activities in online transactions. Among them, virtual currency, game currency, "running point platform", live broadcast rewards, etc. have become new money laundering carriers and methods, with characteristics such as networking and chaining, and are highly concealed and confusing. After the legal network is tight, it must be strictly enforced. To punish money laundering crimes in accordance with the law, all parties need to strengthen cooperation and coordination to form a joint force to combat. Public security, procuratorial, judicial and financial regulatory departments should strengthen coordination and cooperation, and continuously improve the law enforcement and judicial cooperation mechanism. The general public should be vigilant, recognize the nature of new money laundering crimes, and never fall into the money laundering trap for petty gains. Earlier on August 19, it was reported that the Supreme People's Court and the Supreme People's Procuratorate jointly issued the "Interpretation on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Money Laundering", which listed "virtual asset" transactions as one of the methods of money laundering.
2. China Court Network: A virtual currency platform ran away, leaving investors with millions of dollars unable to recover. The court ruled that the losses should be borne by the platform itself.
According to the China Court website, the Donghu People's Court of the Wuhan Donghu New Technology Development Zone People's Court in Hubei Province recently concluded a virtual currency investment entrustment contract dispute case. Due to the freezing of the virtual currency trading platform, the investor's funds could not be recovered. The court finally ruled to dismiss the plaintiff's lawsuit and the investor should bear the loss. It is reported that the plaintiff Liu learned that his colleague Wang had connections to invest overseas and promised to guarantee the principal and interest. He transferred a total of more than 1.84 million yuan to Wang and his designated third-party account to invest in "Tether USDT". During the period, he only received more than 56,000 yuan in return from Wang. Later, he found that the website for purchasing virtual currency could not be opened. After many attempts, he could not accept the huge losses caused by investing in virtual currency, so he sued the court for a commission contract dispute. The court believes that according to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", there are legal risks in participating in virtual currency investment and trading activities. Any legal person, non-legal person organization and natural person who invests in virtual currency and related derivatives violates public order and good morals, and the relevant civil legal acts are invalid, and the losses caused by this shall be borne by themselves.
3. The US SEC accused a pair of brothers of using cryptocurrency trading robots to implement a $60 million Ponzi scheme
According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has accused two brothers of operating a $60 million cryptocurrency Ponzi scheme that used a cryptocurrency trading robot that never existed as a gimmick. In an indictment filed with the U.S. District Court for the Northern District of Georgia (located in Atlanta) on August 26, the SEC claimed that Jonathan Adam and his brother Tanner Adam claimed to operate a cryptocurrency robot that could bring investors a net return of 13.5% per month, thereby defrauding more than 80 people. The U.S. government agency alleged that from January 2023 to June 2024, the brothers told investors that their robots could identify arbitrage trading opportunities on cryptocurrency platforms and could buy and sell assets at the same time to take advantage of small differences between different market prices. They promised investors that the funds would enter a loan pool to fund flash loans and complete transactions, and the assets would be borrowed and returned in the same blockchain transaction. The trading plan was completely fraudulent, and the robot did not exist. The brothers squandered $53.9 million of the $61.5 million raised. Investors did receive some returns, but much of the money was used for an extravagant lifestyle, including the purchase of cars, trucks, and the construction of a $30 million condo. To stop the scheme, the SEC has imposed an emergency asset freeze order on Jonathan Adam and Tanner Adam's companies, GCZ Global, LLC and Triten Financial Group LLC. The government agency also claims that Jonathan Adam misrepresented his background in order to gain the trust of investors and failed to disclose his three previous convictions for securities fraud. The SEC has charged the brothers with violating the antifraud provisions of the federal securities laws. The SEC is seeking a permanent injunction against the companies, the forfeiture of all funds raised from investors, and civil penalties.
4. French President Macron: The arrest of Telegram founder is not politically motivated, but based on judicial investigation
French President Emmanuel Macron responded to reports on the arrest of Telegram founder Pavel Durov on social media, clarifying that the arrest was not politically motivated but based on an ongoing judicial investigation. Macron stressed that France attaches great importance to freedom of speech and communication, as well as innovation and entrepreneurship, and will continue to uphold these freedoms within the legal framework. Ultimately, it is up to the independent judicial system to decide how to enforce the law.
5. The Indian government launched an investigation into Telegram, saying the app was suspected of being abused for criminal activities such as extortion and gambling
According to Moneycontrol, the Indian government is investigating the potential abuse of Telegram in criminal activities, especially extortion and gambling. If the investigation results are unfavorable, the app may face the risk of being banned. The news came at the time when Telegram founder and CEO Pavel Durov was arrested in Paris on August 24 for content review issues. It is reported that India's investigation is led by the Ministry of Internal Affairs and the Ministry of Electronics and Information Technology, focusing on criminal activities in Telegram's peer-to-peer communication function.
6. The market value of stablecoins has grown for 11 consecutive months, breaking through $168 billion to set a new record high
According to Cointelegraph, DefiLlama data shows that the market value of stablecoins has grown for 11 consecutive months, setting a record high of $168 billion (currently about $168.1 billion), exceeding the previous peak of $167 billion in March 2022. This data does not include algorithmic stablecoins. Crypto analyst Patrick Scott said he believed this was a sign of "new funds flowing into the cryptocurrency field." He wrote in an X post on August 26: "Stablecoins have reached a new historical high. The total stablecoin market value, excluding algorithmic stablecoins, has now reached an all-time high, exceeding the previous high in early 2022." When asked by another user whether institutional investment drove the rise, he did not speculate on the reasons for the rise, but did point out: "Retail trading has been going on for at least eight months." According to CCData's July report, stablecoin trading volume fell 8.35% last month due to reduced trading activity on centralized exchanges. The report pointed out that the MiCA regulations have raised concerns about the future of USDT in Europe, which is one of the reasons for the decrease in stablecoin trading activity on centralized exchanges in July. The trend has continued into August, with market volume currently sitting at just over $46 billion, according to CoinMarketCap.
7. Russia is about to start trials of crypto payments and exchanges
According to foreign media reports, Russia is about to start trials of cryptocurrency exchanges and use digital tokens in cross-border transactions to help ease payment difficulties for Russian companies hit by international sanctions. Two people familiar with the matter said the trials will begin on September 1. They said that when testing payment and trading platforms, Russia will use the national payment card system to exchange between rubles and cryptocurrencies. In July, the Russian parliament passed bills legalizing cryptocurrency mining and a framework allowing the testing of digital tokens for cross-border payments under the supervision of the central bank. Russian President Vladimir Putin signed the bills into law on August 8. At a time when cryptocurrency trials are underway, Russian companies are facing increasing obstacles in paying overseas suppliers and getting paid for exported goods.
8. Investment advisors increased their holdings of spot Bitcoin ETFs worth $1.1 billion in Q2 this year
According to Bitcoin Magazine, investment advisors bought a net $1.1 billion in spot Bitcoin ETFs in the second quarter of this year, consolidating their position as significant holders. Despite the decline in Bitcoin prices in the second quarter, the absolute value of Bitcoin ETFs owned by investment advisors increased to $4.3 billion at the end of the second quarter, indicating the increasing acceptance and adoption of Bitcoin ETFs.
9. Coinbase developer platform is building an API that allows AI to perform multiple functions, including creating MPC wallets
Coinbase senior software engineer yuga.eth said on the X platform that the Coinbase developer platform is building an API that allows AI agents to have cryptocurrency-related functions including: bringing US dollars onto the chain, creating MPC wallets, sending USDC for free, achieving instant settlement on Base, and interacting with smart contracts (message signing).
10. Yang Bin, chairman of Singaporean company A&A, was sentenced to 6 years in prison for allegedly organizing a crypto mining investment scam
According to Singapore's Lianhe Zaobao, a Dutch man set up an investment company in Singapore to carry out a "Ponzi scheme", falsely claiming to cooperate with a cryptocurrency mining company, owning a large number of mining machines, and recruiting three people to conspire to defraud more than 700 people of a total of 6.7 million Singapore dollars. After one of the accomplices was imprisoned, the mastermind was also imprisoned. The mastermind is Yang Bin from the Netherlands, who was the chairman of A&A Blockchain Innovation Pte Ltd (A&A) at the time of the crime. He faced 19 charges including fraud and violation of the employment of foreign manpower laws. On August 26, he pleaded guilty to eight of them in the Singapore National Court. After taking the remaining items into consideration, the judge sentenced him to six years in prison and a fine of 16,000 Singapore dollars. The case shows that the defendant set up A&A in April 2021 to provide investment plans for cryptocurrency mining. A&A falsely claimed to cooperate with a cryptocurrency mining company in Yunnan, China, and owned 70% of the latter's 300,000 mining machines; mining machines can mine cryptocurrencies such as Bitcoin and Ethereum. A&A promised investors that they could earn 0.5% of their investment profit every day. In fact, A&A did not cooperate with the Chinese company and did not own the mining machines. This was actually a "Ponzi scheme"; A&A used the investment funds of new investors to pay "profits" to old investors. Earlier on August 10, Wang Xinghong, CTO of Singaporean company A&A, was sentenced to five years in prison for participating in a cryptocurrency Ponzi scheme.
11. Aave Labs announces plan to use shares of BlackRock’s tokenized fund BUIDL to stabilize GHO
According to Cryptoslate, Aave Labs proposed to update its GHO Stable Module (GSM), which involves using shares of BlackRock's tokenized fund BUIDL to help maintain its stablecoin GHO pegged to the US dollar. According to the proposal, the new GSM will allow Aave to exchange BUIDL shares with USD Coin (USDC) provided by users to mint its ecosystem's native dollar-backed stablecoin GHO. These tokens will be kept in smart contracts until users redeem their GHO for USDC. The value of BUIDL's shares is stable at $1 per token, and daily returns are paid to investors every month. The fund allocates its assets into cash, U.S. Treasuries, and repurchase agreements. According to RWA.xyz, BUIDL's assets under management (AUM) exceed $502 million. The proposal states that the new GSM will expand Aave DAO's revenue sources to the field of real-world assets (RWA) and increase opportunities for cooperation with BlackRock. According to the proposal, swap fees will accumulate in the form of GHO and interest will be paid monthly in the form of BUIDL. Additionally, GSM may or may not integrate a USDC buffer to compensate for gas redemption costs for BUIDL for small swaps, which will be further evaluated later. This proposal is currently still in the "interim review" stage.
12. Pavel Durov was arrested in connection with 12 crimes including cybercrime against the "Cryptology" service
According to a statement released by the Paris Judicial Court, Telegram CEO Pavel Durov has been arrested as part of a large-scale cybercrime investigation, facing charges including providing unauthorized "cryptography" services and tools. The statement said: "Pavel Durov, founder and CEO of the instant messaging platform Telegram, was arrested on Saturday, August 24, 2024, at Le Bourget Airport in the suburbs of Paris and was detained by the police at 8 pm. This move was implemented in the context of a judicial investigation that began on July 8, 2024, following a preliminary investigation launched by the Anti-Cybercrime Unit of the Paris Prosecutor's Office. The judicial investigation is based on the charge of providing cryptography services and tools." Several other charges are listed in the document, including conspiracy to "possess pornographic images of minors" and "money laundering for illegal proceeds of criminal organizations." Durov is being questioned as part of a cybercrime investigation. The Paris Prosecutor's Office in France said that the ongoing case against the founder of "Telegram" Durov involves 12 crimes, most of which are cybercrimes. It was previously reported that French authorities can detain Pavel Durov until August 28.
13. The UK Financial Conduct Authority has not approved the registration application of cryptocurrency companies for 6 consecutive months
The UK Financial Conduct Authority (FCA) has not approved any cryptocurrency company registration applications for six consecutive months, bringing the country's vision of becoming a global crypto asset technology center to a standstill. FCA data shows that a total of 34 applications were received in the past 12 months, and only 4 were approved, with the most recent approval being in February this year. The UK Financial Conduct Authority said that most crypto companies failed to meet its anti-money laundering standards, emphasizing that companies must be "appropriate and qualified" and have systems in place to identify and prevent the flow of criminal funds. However, industry lobbyists complain that the FCA's rules are too cumbersome and confusing, especially those for consumer marketing. Despite this, the FCA is working with companies to assist them in meeting compliance requirements. Against the backdrop of this tightening regulation, several companies, including Binance and PayPal, have suspended crypto services in the UK.
Article forwarded from: Jinshi Data
