Crypto Outlook at the World Economic Forum

The US Department of Justice announced on Wednesday 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 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. Investigators believe FTX lost nearly $8 billion of its clients’ money before filing for bankruptcy.

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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

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ICYMI: Bitcoin Price Plunges Amid Major DOJ Crypto Announcement

The bitcoin price has fallen 5 percent in the space of an hour after the US Department of Justice announced plans to introduce a major international cryptocurrency enforcement 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 Graziosi19 January 2023 01:00

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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

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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

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Cryptocurrency exchange targeted by DOJ responding with “oops, sorry” to clients on automated social media channel

China-based cryptocurrency exchange Bitzlato, whose CEO 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 Graziosi18 January 2023 21:30

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Influencer Logan Paul Lays Out Roadmap To Address Crypto Zoo Scandal

Influencer Logan Paul announced Tuesday that he had developed a three-step plan to correct the course of his Crypto Zoo NFT game, which fellow YouTuber Coffeezilla alleged was a “scam” in a trio of investigative videos examining the project and investors who lost money on the apparently abandoned project.

Paul, who initially threatened to sue Coffeezilla but has since backed down, said that he and Crypto Zoo co-founder Jeff Levin would burn their tokens to ensure they had no financial stake in the NFT game project.

He also said that he would personally invest 1,000 ETH, roughly $1.5 million at its current market price, to reimburse Zoo token holders for the initial mint price of 150 ETH, just over $225,000 at current price, provided they burn your tokens.

That refund would not pay investors in the Zoo token that they sold for over a year when the Crypto Zoo project lay dormant.

Your third step is to finish the game just as Paul originally announced over a year ago.

Graig GraziosiJanuary 18, 2023 20:51

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Indian financial leader tells Davos attendees the idea that cryptocurrencies will thrive while fiat fails is “nonsense”

Former Reserve Bank of India Governor Raghuram Rajan told attendees at the World Economic Forum in Davos on Wednesday that the idea that cryptocurrencies would prosper while fiat money collapses is “nonsense.”

“The idea that somehow cryptocurrencies are going to hold value while fiat currencies crash. That is nonsense,” she said.

He later told the Reuters Global Markets Forum that “fiat currencies have won out in terms of which is more credible.”

Mr. Rajan said that the crypto market crash at the end of 2022 has left room to examine the “real value” of blockchain and smart contract technologies.

Graig GraziosiJanuary 18, 2023 20:38

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Cryptocurrency Users Criticize Justice Department Over Bitzlato Announcement

The crypto market tanked early on Wednesday after the US Department of Justice announced an “enforcement action” related to the cryptocurrency space.

As investors braced for the worst, as reflected in the market crash, the Justice Department announced that it had arrested the founder of Bitzlato, a Chinese crypto exchange run by a Russian national dealing with an illicit crypto market. dark web.

Many cryptocurrency enthusiasts had never heard of the exchange. Several mocked the Justice Department in response.

Another user compared it to a small town police department holding a minor drug bust.

Graig GraziosiJanuary 18, 2023 20:10

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Ripple CEO Says He’s Optimistic XRP Lawsuit Will Wrap Up This Year, Calls SEC ‘Shameful’

Brad Garlinghouse, the CEO of Ripple, which provides “crypto solutions for businesses,” told CNBC’s “Squawk Box” that he was optimistic that a lawsuit involving the cryptocurrency XRP will be settled this year.

The US Securities and Exchange Commission sued Ripple in 2020, alleging that the company illegally sold the XRP cryptocurrency to investors in 2012 without first registering it as a security.

“We are optimistic that this will certainly be resolved in 2023, and perhaps [in] the first half,” Garlinghouse said. “So we’ll see how it develops from here. But I feel very good about where we are in relation to the law and the facts.”

He also criticized the SEC, calling the regulatory agency “disgraceful.”

“The behavior of the SEC in some of [the lawsuit] It’s been embarrassing as an American citizen,” he said in a separate interview with CNBC. “Just some of the stuff that’s been going on, like you’re kidding.”

Graig Graziosi18 January 2023 19:38

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Genesis Global Capital to file for bankruptcy this week, sources say

Cryptocurrency brokerage firm Genesis Global Capital may be preparing to file for bankruptcy, according to a report from Bloomberg.

Citing sources with knowledge of the situation, the paper reports that the company is in negotiations with creditors in the midst of a liquidity crisis. Bloomberg previously reported that the company said it may have to file for bankruptcy if it can’t raise the funds to stay afloat.

Genesis suspended withdrawals from its platform in November, shortly after the start of the FTX crypto exchange crash.

Graig Graziosi18 January 2023 19:23