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Venezuelan President Maduro Leveraged Cryptocurrency to Conceal Drug Ring Transactions According to US DOJ

The United States Department of Justice (DOJ) have alleged that Venezuelan President Nicolas Maduro leveraged crypto in illegal drug trade according to the March 26 indictment.Maduro along with 14 other high-ranking Venezuelan officials has been charged for his alleged involvement in a multibillion-dollar cocaine trafficking ring that the DOJ claimed wreaked havoc on American communities by flooding the markets with cocaine for over 20 years. The allegations extend to drug runners, Colombian cartels, and the overall corruption that has plagued Venezuala’s governance.“These indictments expose the devastating systemic corruption at the highest levels of Nicolas Maduro’s regime,” said DEA Acting Administrator Uttam Dhillon. “These officials repeatedly and knowingly betrayed the people of Venezuela, conspiring, for personal gain with drug traffickers and designated foreign terrorist organizations like FARC. Today’s actions send a clear message to corrupt officials everywhere that no one is above the law or beyond the reach of U.S. law enforcement.”Venezuela’s Crypto SuperintendentAccording to the announcement, Homeland Security Investigations (HSI) Acting Executive Associate Director Alysa D. Erichs said the Venezuelan officials had leveraged cryptocurrency in an attempt to mask their money trail on their alleged crimes.Per the release, “Today’s announcement highlights HSI’s global reach and commitment to aggressively identify, target and investigate individuals who violate U.S. laws, exploit financial systems and hide behind cryptocurrency to further their illicit criminal activity. Let this indictment be a reminder that no one is above the law – not even powerful political officials.While no specific cryptocurrency was named, Venezuela is known for the Petro cryptocurrency which is backed by oil. Notably the announcement also revealed that Venezuela’s crypto superintendent, Joselit Ramirez Camacho had also been indicted in a separate action in the Southern District of New York. Camacho is the head of Sunacrip – a regulating authority in Venezuela of Crypto assets heavily involved with the maintenance of the Petro.

US proposes new bail conditions for former FTX CEO

The former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried (SBF), is facing new bail conditions proposed by the United States Department of Justice. The proposal was submitted to District Judge Lewis Kaplan of the Southern District of New York, and includes a prohibition on using smartphones, tablets, computers, or any video game platforms or devices that allow chat and voice communication. Instead, Bankman-Fried’s communication would be restricted to a “flip phone or other non-smartphone with either no internet capabilities or internet capabilities disabled.”

The proposal was reportedly negotiated with Bankman-Fried’s defense team, who requested to submit a proposal by March 3. It also requests that the temporary bail conditions recently imposed should be made permanent. These temporary conditions include a ban on contact or communication with current or former employees of FTX or Alameda Research, except in the presence of counsel, and a prohibition on using any encrypted or ephemeral call or messaging application, as well as a VPN.

In addition, the proposal notes that Bankman-Fried’s laptop would be monitored by security software that will log his online activity. The proposal also states that Bankman-Fried will not object to the installation of court-authorized pen registers on his phone number, Gmail account, and internet service, which will be sought by the government and maintained by the Federal Bureau of Investigation.

Bankman-Fried’s $250 million bail has been under scrutiny since February 9, after he was found to have contacted potential witnesses on his case. He was also temporarily banned from using a VPN after prosecutors accused him of using it on two occasions, on January 29 and February 12.

The court unsealed a superseding indictment against Bankman-Fried on February 22, which contains 12 criminal counts, including eight conspiracy charges related to fraud as well as four charges of wire fraud and securities fraud. Bankman-Fried has not yet entered a plea in the case.

The proposed bail conditions are likely an attempt to prevent Bankman-Fried from potentially tampering with witnesses or committing further crimes while awaiting trial. The case against him is still ongoing, and it remains to be seen how the court will ultimately rule on the proposed conditions.

Bitcoin of America indicted for operating unlicensed kiosks

Bitcoin of America, a Bitcoin technology firm, and three of its executives are facing charges of money laundering, conspiracy, and other crimes connected to the operation of more than 50 unlicensed crypto kiosks in Ohio that knowingly benefited from victims of cryptocurrency scams. The firm, which operated as S&P Solutions, allegedly pocketed a 20% transfer fee each time a scam occurred and continued to do so even after learning they were fraudulent.

According to the prosecuting attorney Andrew Rogalski, romance scammers, law enforcement impersonators, and “robocallers” exploited the lack of Anti-Money Laundering protections in the firm’s systems to transfer funds out of users’ crypto wallets. These scammers directed the victims, who are often elderly or otherwise vulnerable, to specifically go to Bitcoin of America ATMs, take money that they’ve withdrawn from their savings accounts or 401Ks, and put the cash into the machine in exchange for BTC in a wallet they think is theirs but have no control over.

During a press conference, Rogalski commented that “these ATMs are ready-made for scammers,” adding that they take advantage of victims who are often elderly or otherwise vulnerable. In one instance, an elderly gentleman lost $11,250 in three transactions to one of the dodgy kiosks in under an hour to this scam.

The firm and its executives allegedly operated the kiosks without a money transfer license and were able to do so by making written misrepresentations regarding the nature of their business to government agencies. Authorities seized 52 Bitcoin ATMs last week, but the firm has more in Ohio and other states. Bitcoin of America made $3.5 million in profit from cash deposits at these unlawful kiosks in 2021, Rogalski said.

Officials believe the firm has been operating and evading regulatory safeguards and financial compliance requirements since 2018. The investigation into the firm and its executives was reportedly spearheaded by the United States Secret Service’s Cyber Fraud and Money Laundering Task Force.

This indictment comes after the FBI’s Miami Field Office warned in October that crypto ATMs were becoming a popular vehicle for scammers to defraud victims in an increasing trend of “pig butchering” scams. It highlights the importance of proper regulation and compliance in the cryptocurrency industry to protect vulnerable individuals from fraudulent activities.

FTX Founder Faces New Charges, Including Alleged $40M Bribe

The founder of the cryptocurrency exchange FTX, Sam Bankman-Fried, is facing a new 13-count indictment, including charges of bribery related to an alleged $40 million bribe to a Chinese government official. The charges stem from a court filing by United States attorney Damian Williams, which alleges that Bankman-Fried and other parties directed the transfer of at least approximately $40 million in cryptocurrency intended for the benefit of one or more Chinese government officials. The transaction was reportedly made in order to influence and induce Chinese officials to unfreeze cryptocurrency accounts at FTX’s affiliate firm, Alameda Research, which held over $1 billion worth of cryptocurrency.

The court filing alleges that Chinese law enforcement authorities froze certain Alameda accounts on “two of China’s largest crypto exchanges” in early 2021. Bankman-Fried was reportedly aware of the freeze and tried numerous methods to unfreeze the accounts, including attempting to transfer cryptocurrency to fraudulent accounts in an effort to circumvent China’s freeze orders. After months of failed attempts to unfreeze the accounts, Bankman-Fried allegedly directed a multi-million-dollar bribe to seek to unfreeze the accounts. After the accounts were unfrozen, Alameda reportedly used the unfrozen cryptocurrency to fund additional Alameda trading activity.

It is unclear which Chinese cryptocurrency exchanges Alameda was using in early 2021, as China officially banned crypto exchanges from providing services in the country back in 2017. However, the court filing alleges that Bankman-Fried was aware of the freeze and attempted to circumvent it through various means.

Bankman-Fried is already facing criminal charges related to the theft of billions of dollars in FTX customer funds facilitated through Alameda Research, as well as alleged illegal political donations. He has pleaded not guilty to eight criminal counts, which could result in 115 years in prison should he be convicted. Bankman-Fried’s trial is set for October 2, 2023.

FTX is a cryptocurrency exchange that was founded in 2019 by Bankman-Fried and Gary Wang. The exchange has quickly become one of the largest in the world, with a daily trading volume of over $10 billion. In addition to its exchange services, FTX also offers a range of other cryptocurrency-related products, including derivatives and tokenized stocks. Alameda Research is an affiliate firm of FTX that engages in quantitative trading and market making. The firm is known for its involvement in the DeFi (decentralized finance) space and has been an active participant in the development of the Solana blockchain.

Trump NFT Floor Price Surges on Indictment News

The world of non-fungible tokens (NFTs) has been a hot topic in recent months, with an increasing number of investors looking to cash in on these unique digital assets. One of the latest developments in this space involves the Trump Digital Trading Cards NFT project, which has seen a surge in floor price following news of former President Donald Trump’s indictment.

According to data from OpenSea, the floor price for the officially licensed Trump Digital Trading Cards NFT project rose from 0.46 ETH (or $835 at current prices) to as high as 0.6 ETH ($1090) on March 30, the same day that a New York Grand Jury voted to indict the former president. However, the floor price has since fallen back to around the 0.51 ETH range, which is still significantly higher than the initial mint price of $99 when the project launched in December 2022.

The Trump Digital Trading Cards NFT project offered exclusive one-on-one experiences to certain NFT hodlers when it launched, including private golf sessions, dinners, and conversations with Trump. However, the recent news of his indictment could potentially impact his ability to deliver on these experiences.

The surge in the Trump NFT’s floor price is just one example of the increasing popularity of NFTs. According to a March 30 report from blockchain analytics platform DappRadar, there was $4.7 billion worth of NFT trading volume in Q1 2023, more than double that of the previous quarter. The report pointed to bullish action from the Blur marketplace, which took the market by storm during its token airdrop farming period in February.

The report also showed that there were 19.4 million NFT sales in Q1, marking an increase of 8.56%, with total volume increasing by 147% compared with the $1.9 billion posted in Q4 2022. The Ethereum network accounted for a whopping $4.1 billion worth of the volume, with second-placed Solana contributing $242 million, while Polygon ranked third with $85 million for the quarter.

Another recent development in the NFT space involves the Japanese gaming giant Square Enix, which has released NFT trading cards in celebration of the 25th anniversary of Final Fantasy VII. The Final Fantasy VII Anniversary Art Museum Digital Card Plus collection features five physical cards and a sixth digital NFT card. However, despite being called trading cards, Square Enix stated on its website that the NFTs couldn’t be traded or transferred at this stage unless the company decides to build a marketplace in the future.

The packs were dropped on March 31 and cost around $3.30 a pop, with the card artwork depicting various characters and scenery from the iconic Final Fantasy VII game. While it is unclear if the firm intends to build a marketplace to support its digital collectibles, Square Enix has been gradually ramping up its NFT and blockchain gaming-related initiatives over the past few years, suggesting something could be in the works.

Terra co-founder indicted for forging legal documents

Prosecutors in Montenegro have issued indictments to Do Kwon, the former co-founder and CEO of Terraform Labs, for allegedly forging legal documents. Kwon was arrested on March 23 while attempting to board a private plane at an airport in Podgorica, the capital of Montenegro. According to reports, he was using fake documents while attempting to board a flight to Dubai. Following Kwon’s arrest, Han Chang-jun, Terraform’s former chief financial officer, was also arrested in Podgorica and is facing similar charges.

The Prosecutor’s Office of the State of Podgorica has now indicted Kwon for his alleged involvement in the forgery of legal documents. The Korean industry-focused news agency Block Media reported on April 20 that the Montenegro prosecutors had requested an extension of the detention period for the two former Terraform executives after issuing the indictments.

Meanwhile, Shin Hyun-seung, another co-founder of Terraform, also known as Daniel Shin, is still walking free in South Korea. Local authorities have attempted to arrest Shin, but the Seoul Southern District Court denied the request. After questioning Shin, the court stated that there was little likelihood that he would flee or destroy any evidence related to the fall of Terra.

The news of Kwon’s indictment comes amid global prosecutors reaching major milestones in procedures involving some cryptocurrency executives. On April 20, the Turkish police detained Faruk Fatih Ozer, founder and former CEO of Thodex, who allegedly fled Turkey with $2 billion stolen from the exchange in 2021.

Terraform Labs is a blockchain-based platform that enables the creation of stablecoins pegged to fiat currencies. The company was founded in 2018 by Do Kwon, Daniel Shin, and Ryan John King. The platform’s native token, LUNA, has seen significant growth in recent months, reaching an all-time high of $22.41 on April 4, 2021. Terraform Labs has raised over $25 million in funding to date and has partnerships with several major companies, including Binance and Huobi.

However, the company has faced significant challenges in recent months. In February 2021, the price of LUNA plummeted after the company’s Mirror Protocol was hit by a flash loan attack, resulting in a loss of $370,000. The company has also faced criticism over the high fees associated with using its platform.

Terraform Labs has been actively working to address these issues and has announced several new initiatives in recent weeks. The company is reportedly working on a new stablecoin pegged to the South Korean won, and is also exploring the use of non-fungible tokens (NFTs) on its platform. Despite the challenges, Terraform Labs remains a major player in the cryptocurrency industry and is likely to continue to drive innovation and growth in the sector.

Terraform Labs Co-Founder Indicted for Terra Stablecoin Collapse

The Seoul Southern District Prosecutors’ Office has indicted Shin Hyun-seong, co-founder of Terraform Labs, and nine other individuals for their role in the collapse of the Terra stablecoin ecosystem. The 10 individuals were charged with fraud, breach of trust, and embezzlement after 11 months of investigation, with suspected illicit profits of nearly $350 million.

Shin is accused of misleading investors and falsely advertising the product despite knowing that the project was unfeasible, leading to significant losses. The indictment comes just days after a Seoul district court ruled that the Luna token was not a security and did not fall under the purview of the Capital Markets Act. The court had earlier refused the prosecution’s ten demands of charging Shin for violating security law.

Prosecutors have seized assets worth a total of $180 million from the indicted individuals. This includes assets belonging to Shin, who co-founded Terraform Labs, one of the budding crypto ecosystems that popularized the concept of algorithmic stablecoins. The collapse of the native stablecoin, TerraClassicUSD (USTC), de-pegged from its dollar value in May 2022, and the $40 billion ecosystem came crashing down.

The indictment of Shin and nine other executives comes just a month after former CEO Do Kwon was arrested in Montenegro. Prosecutors in Montenegro indicted Kwon on charges of document forgery, and he is also facing multiple charges of security fraud from the United States Securities and Exchange Commission.

Terra was a prominent crypto ecosystem that offered algorithmic stablecoins, which gained immense popularity. The Terra stablecoin ecosystem’s collapse has raised concerns about the credibility and reliability of stablecoins in the crypto market. Stablecoins are widely used in the cryptocurrency market to hedge against market volatility, and their reliability and stability are crucial for investors.

The indictment of Shin and his associates highlights the need for stricter regulations in the crypto market to prevent fraudulent activities and ensure investor protection. The Korean government has been taking significant steps to regulate the crypto market, with the latest being the amendment of the Act on Reporting and Use of Specific Financial Information to strengthen anti-money laundering regulations in the cryptocurrency sector.