Category Archives: Cryptocurrency
If Cryptocurrency Exchanges Want To Operate In U.S. they must … – Tekedia
BlackRock, the worlds largest asset manager, has met with the U.S. Securities and Exchange Commission (SEC) to discuss its proposed spot Bitcoin ETF, according to a new filing. The company revealed more details about its product, which aims to provide investors with exposure to the actual Bitcoin cryptocurrency, rather than futures contracts or other derivatives.
According to the filing, BlackRock met with SEC staff on November 16, 2023, and presented its case for why its spot Bitcoin ETF should be approved. The company argued that its product would offer several benefits to investors, such as:
Lower costs and risks compared to futures-based ETFs, which incur higher fees, margin requirements, and rollover risks. Greater transparency and liquidity compared to private funds or trusts, which may trade at significant premiums or discounts to their net asset value (NAV). Enhanced security and custody arrangements, as BlackRock would partner with reputable third-party custodians that are regulated and audited.
Diversification and innovation opportunities, as a spot Bitcoin ETF would allow investors to access a new asset class that has low correlation with traditional markets and offers exposure to the potential of blockchain technology.
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BlackRock also addressed some of the concerns that the SEC has raised about spot Bitcoin ETFs in the past, such as:
Market manipulation and fraud, which BlackRock claimed could be mitigated by using multiple data sources, robust surveillance tools, and independent valuation methods. Investor protection and education, which BlackRock pledged to provide through clear disclosures, risk warnings, and investor outreach programs.
Regulatory coordination and oversight, which BlackRock suggested could be enhanced by working closely with other regulators, such as the Commodity Futures Trading Commission (CFTC), the Financial Industry Regulatory Authority (FINRA), and state authorities.
BlackRock is one of several companies that have filed for a spot Bitcoin ETF in the U.S., hoping to capitalize on the growing demand for crypto-related products. However, so far, the SEC has only approved futures-based Bitcoin ETFs, which track the price of Bitcoin through contracts traded on regulated exchanges. The SEC has repeatedly expressed its reservations about spot Bitcoin ETFs, citing the lack of regulation and transparency in the underlying crypto market.
It is unclear whether BlackRocks meeting with the SEC will sway the regulators stance on spot Bitcoin ETFs, or when a decision will be made. The SEC has not set a deadline for reviewing BlackRocks application, which was filed in October 2023. However, some analysts believe that the SEC may be more open to approving spot Bitcoin ETFs in 2024, as the crypto market matures, and more regulatory clarity emerges.
U.S. Treasury Secretary says if cryptocurrency exchanges want to operate in the U.S. they must play by the rules. If they do not, the U.S. government will take action. The U.S. Treasury Secretary has issued a stern warning to cryptocurrency exchanges that operate in the U.S. market, saying that they must comply with the existing regulatory framework or face the consequences.
In a speech at the Financial Crimes Enforcement Network (FinCEN) conference, the Treasury Secretary said that the U.S. government is committed to ensuring that the cryptocurrency sector does not pose a threat to the national security, financial stability, or consumer protection.
He said that cryptocurrency exchanges are subject to the same rules and regulations as traditional financial institutions, such as anti-money laundering (AML), counter-terrorism financing (CTF), and sanctions compliance.
He added that the Treasury Department, along with other federal agencies, is closely monitoring the activities of cryptocurrency exchanges and will not hesitate to take action against those who violate the law.
He said: We want to foster innovation and responsible use of cryptocurrencies, but we also want to prevent them from being used for illicit purposes. Cryptocurrency exchanges that want to operate in the U.S. must play by the rules. If they do not, the U.S. government will take action.
Meanwhile, the small Himalayan nation of Bhutan has made a bold move to embrace the cryptocurrency revolution. According to a recent report by Forbes, the Kingdom of Bhutan has spent millions of dollars building its own Bitcoin mining operation, hoping to use the profits to boost its economy and diversify its sources of income.
Bhutan is a landlocked country with a population of about 800,000 people, mostly dependent on hydropower, tourism and agriculture. However, the Covid-19 pandemic has severely affected these sectors, causing a sharp decline in the countrys gross domestic product (GDP) and foreign exchange reserves. To make matters worse, Bhutan faces a chronic trade deficit with its neighbors, especially India, which supplies most of its essential goods and services.
To address these challenges, Bhutan has decided to tap into the potential of Bitcoin, the worlds largest and most popular cryptocurrency. Bitcoin is a decentralized digital currency that operates on a peer-to-peer network of computers, without the need for intermediaries or central authorities.
Bitcoin transactions are verified and recorded on a public ledger called the blockchain, which ensures transparency and security. Bitcoin miners are the ones who perform this verification process, using specialized hardware and software to solve complex mathematical problems and earn new bitcoins as a reward.
Bhutan has invested in building its own Bitcoin mining facility, using its abundant and cheap hydropower resources to run the machines. The facility is located in a remote area of the country, away from populated centers and potential threats. The facility is also equipped with advanced cooling systems and security measures to ensure optimal performance and safety.
According to Forbes, Bhutan hopes to use the Bitcoin mining operation as a source of income and innovation for its economy. The country plans to sell some of the bitcoins it mines on the global market, generating foreign exchange and reducing its trade deficit. The country also intends to use some of the bitcoins to fund social welfare programs, such as health care, education and environmental protection.
Moreover, Bhutan aims to foster a culture of entrepreneurship and technological development among its citizens, by encouraging them to learn about and participate in the cryptocurrency ecosystem.
Bhutans decision to embrace Bitcoin is not without risks and challenges. The cryptocurrency market is highly volatile and unpredictable, subject to fluctuations in supply and demand, as well as regulatory uncertainties and cyberattacks. Bitcoin mining also consumes a lot of energy and generates a lot of heat and noise, which could have environmental and social impacts.
Furthermore, Bhutan may face opposition or pressure from other countries or institutions that are skeptical or hostile towards Bitcoin and its implications for the global financial system.
However, Bhutan is not alone in its quest to harness the power of Bitcoin. Several other countries, especially in Africa and Latin America, have also shown interest or taken steps to adopt Bitcoin as a legal tender or a reserve asset. These countries share some of the same challenges as Bhutan, such as economic instability, currency devaluation, inflation, corruption and financial exclusion. They also see Bitcoin as an opportunity to empower their people, enhance their sovereignty and integrate into the global economy.
Bhutans experiment with Bitcoin is an example of how a small country can use innovation and courage to overcome its limitations and pursue its aspirations. Whether it succeeds or fails, Bhutans venture will surely inspire other nations and individuals to explore the possibilities and challenges of the cryptocurrency revolution.
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If Cryptocurrency Exchanges Want To Operate In U.S. they must ... - Tekedia
New Crypto Coins and High Growth Cryptocurrency | Analysis of … – Analytics Insight
Burgeoning interest in both established crypto coins and new cryptocurrencies is returning to the crypto landscape in November 2023 as a bull run looms. Crypto buyers are once again eyeing historically high growth coins like ETH, DOGE, and SHIB while also exploring fresh new tokens such as ApeMax, Pepe, and others. This article looks at several tokens causing a stir amongst crypto fans, while also discussing some of the newest crypto coins which have entered the space.
ApeMax is stimulating curiosity with its Boost-to-Earn model, a novel fun approach to token staking and rewards earning. Moving past the limitations of typical presales, ApeMax offers immediate token access, ensuring buyer empowerment and early engagement with the tokens utility. The presale growth of ApeMax may be indicative of the keen interest it has generated, positioning it as a new coin eliciting curiosity.
Bitcoin, the pioneer of digital currencies, has shown an impressive growth history, and a past robust market presence as it brought about technological innovation to blockchain.
ApeMax, a new coin, has seen rapid growth in its presale including its adoption by over 7,000 eligible holders and a tremendous amount of decentralized boost staking.
Ethereum, with its smart contract capabilities, has cemented its position as a key player in the blockchain ecosystem.
Dogecoin and Shiba Inu, leveraging their meme-centric appeal, have witnessed remarkable growth, underlining the influence of these meme coins and community and cultural trends in cryptocurrencies.
Pepe Coin, another meme-inspired token, has shown significant growth, tapping into the vibrant meme culture within the crypto space.
Emerging cryptocurrencies like Celestia, Skale, and Kaspa are also gaining attention for their unique technological offerings and the excitement they have created in the market.
ApeMax is distinguished by its Boost-to-Earn model, providing a fresh perspective in the meme coin sector. Its significant presale interest points to its growing place amongst new cryptocurrencies in presale, showcasing unique new features interesting to a number of eligible buyers.
Bitcoins (BTC) unparalleled growth can be attributed to its groundbreaking blockchain technology and limited supply, spearheading the cryptocurrency revolution.
Dogecoin and Shiba Inu have demonstrated the power of community support and cultural resonance in driving a tokens popularity while also advancing the meme coin segment.
The crypto market of 2023 is a colorful blend of established and emerging tokens, each displaying unique opportunities and challenges. New tokens continue to spring up and the crypto space seems filled with more innovation than ever before. However, its crucial for anyone interested in crypto to conduct thorough research and be aware of market risks before diving into cryptocurrency decisions. This article is not financial advice. Interested individuals should consult the official ApeMax website for detailed information on regional buying restrictions and to fully understand the buying eligibility rules.
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New Crypto Coins and High Growth Cryptocurrency | Analysis of ... - Analytics Insight
What Is Solana? How Does It Work? Forbes Advisor INDIA – Forbes
Solana (SOL) is a cryptocurrency that was designed to work similarly to and improve upon Ethereum. Named after a small Southern Californian coastal city, Solana is the brainchild of software developer Anatoly Yakovenko.
Yakovenko first proposed this innovative blockchain in 2017, and Solana launched in March 2020. Today SOL has become popular crypto, ranking as the 11th largest coin by total market capitalization.
Solana is a blockchain with striking resemblances to Ethereumin fact, its frequently referred to as an Ethereum killer. Like Ethereum, the SOL token can be bought on most major exchanges. The tokens actual value is in conducting transactions on the Solana network, which has rare advantages.
The Solana blockchain uses a proof-of-history consensus mechanism. This algorithm uses timestamps to define the next block in Solanas chain.
Most early cryptocurrencies, such as Bitcoin and Litecoin, use a proof-of-work algorithm to define the blocks in their chains. Proof of work uses a consensus mechanism that relies upon miners to determine what the next block will be.
However, this proof-of-work system is slow and resource-heavy, leading to the use of tremendous amounts of energy. This is one reason why Ethereum converted to a proof-of-stake system, reducing energy consumption by 99.9%.
Unlike the earlier proof-of-work mechanism, proof of stake uses staking to define the next block. Staked tokens are held as collateral by the blockchain until validators reach a consensus about the chains next block.
According to Konstantin Anissimov, chief operating officer at crypto exchange CEX.IO, Solana uses a mixture of time-tested cryptographic strategies and fresh innovations to address the shortcomings of cryptos first-wave solutions.
Powered by its unique combination of proof of history and whats referred to as delegated proof-of-stake algorithms, the main problem Solana was attempting to solve was Ethereums scalability issues. Delegated proof-of-stake is a variation of the more traditional proof-of-stake algorithm.
For those who need a refresher, the proof-of-stake mechanism is a process of transactions for creating new blocks in a blockchain using a system of validators.
Solana brings users several advantages with its delegated proof-of-stake mechanism. The history algorithm adds a layer of security to the network, says Christian Hazim, analyst at ETF provider Global X.
In essence, Solana addresses two out of three issues identified by Ethereum co-founder Vitalik Buterin in his blockchain trilemma of scalability, security and decentralization.
Even though Buterin initially claimed Ethereum would address all three aspects of this trilemma, most experts believe that it only addresses two factors: decentralization and security.
However, Solana is designed to address two parts of the trilemma: scalability and security. SOLs proof of history algorithm presents unique security for the network. While the speed with which the Solana platform performs computations allows for increased scalability.
By using a unique blend of proof of history and delegated proof of stake, Solana offers exponentially faster transaction speeds than its closest competitors, Ethereum and Cardano (ADA), at a fraction of the cost, Anissimov says by using a unique blend of proof of history and delegated proof of stake.
Unlike proof of work, which utilizes the miners themselves to define the next block in a chain, or proof of stake, which uses staked tokens to define the next block, proof of history uses timestamps in its definition of blocks for the Solana chain.
This innovative system lets validators on the blockchain vote on the timestamps of different blocks in the chain. This continues to keep the chain relatively decentralized while simultaneously allowing for more secure and faster computations.
Solana works on a combination of proof-of-history and delegated proof-of-stake protocols.
The reason for this combination of protocols, Bryan Routledge, associate professor of finance at Tepper School of Business at Carnegie Mellon University, says Solana is trying to process lots of transactions quickly.
Routledge points out that trying to process transactions quickly usually requires centralization. For example, Visa uses a huge network of computers to keep its processing speed on track. Bitcoin, on the other hand, Routledge says, processes transactions very slowly to remain decentralized.
Since the entire point of blockchain technology is to provide decentralized systems, Solana attempts to process transactions at speeds akin to a large, centralized company like Visa while maintaining the decentralization of Bitcoin. This speed allows for increased scalability since the environmental and monetary costs of Solanas systems are lower.
The speed at which blocks are added to Solanas blockchain requires additional levels of security for the blockchain. This is where Solanas proof of history algorithm comes into play. This algorithm timestamps each block in such a way that maintains the systems security.
Solanas SOL tokens are then staked and used as collateral to process transactions on the network. These transactions include everything from validating smart contracts to using Solana as a non-fungible token (NFT) marketplace.
In August 2021 came one of Solanas big breaks and more than a year later Solana launched when Degenerate Ape Academy became the first crucial NFT project on the Solana NFT marketplace. During the first three weeks of that month, Solanas price jumped from around INR 2,496 to INR 6,241 in value.
Solanas all-time high was in November 2021, when it peaked at nearly $260 during the height of the crypto bull run.
Solana and Ethereum hold some things in common, but they also have stark differences. Here is a short breakdown of where the two platforms overlap and where they diverge:
In addition, Hazim mentions its important to note that Solana Labs, Solanas technology company, is working on several interesting products. These include Solana Pay, allowing cheaper, safer and faster transactions.
Solana Labs has also launched the Solana Mobile Stack. This Android toolkit opens up the possibility for mobile expansion. Solana expects to launch its mobile phone, the Solana Saga, in early 2023.
Like most of the worlds major cryptocurrencies, SOL tokens can be traded on any number of platforms. This includes centralized exchanges like Binance.US, Coinbase, and Kraken, to name a few. In some cities around the globe, SOL tokens are even available in crypto and NFT ATMs.
After purchasing SOL tokens, investors will want to store the tokens in a crypto wallet. Unlike the name suggests, crypto wallets are not where cryptocurrencies themselves are stored. Rather, they are wallets where owners store the keys to their cryptocurrencies. These wallets can either be stored offline or online (The safest option for storage is offline with a cold wallet.)
SOL tokens also have many use cases. Among other things, they can be used for peer-to-peer payments, trading, and as an incentive to secure the Solana network as a validator.
But as with all cryptocurrencies, investors should consider speaking with a financial advisor before investing in Solana.
Cryptocurrencies are highly volatile and extremely risky investment vehicles. Investors should be certain they can afford to lose the money they invest in SOL, even if they believe in Solanas potential.
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What Is Solana? How Does It Work? Forbes Advisor INDIA - Forbes
Examining the Latest Cryptocurrency Poised for Exponential Growth … – Analytics Insight
In the dynamic realm of cryptocurrency, VC Spectra (SPCT) has seized attention, surging by an unprecedented 725% in its Stage 4 presale. Conversely, Shiba Inu (SHIB) grapples with a 17% price dip, raising concerns and prompting a downward price prediction. Lets explore the contrasting trajectories of VC Spectra (SPCT) and Shiba Inu (SHIB).
>>BUY SPCT TOKENS NOW<<
In a groundbreaking development within the DeFi space, VC Spectra (SPCT) has emerged as a top ICO and a beacon of success. Due to overwhelming demand for its token, VC Spectra (SPCT) has experienced an unprecedented 725% surge from $0.008 to $0.066 between Stages 1 and 4 of its ongoing presale.
But what could be driving such high demand for VC Spectras (SPCT) token?
Operating on the Bitcoin blockchain, VC Spectra (SPCT) functions as a decentralized hedge fund, offering investors seamless asset management and decentralized trading capabilities. The platform utilizes AI technology to identify and invest in high-potential blockchain and tech projects.
Catering to diverse investors, VC Spectra (SPCT) ensures transparency and autonomy with real-time tracking and asset control. Investors enjoy several benefits, such as quarterly dividends, an inventive token buyback program, and exclusive access to cutting-edge new ICOs.
As VC Spectra (SPCT) advances through its public presale, experts anticipate a further increase to $0.080 by the end of its presale. This upward trajectory not only highlights the platforms consistent success but also presents it as a top crypto to buy for investors seeking a reliable and profitable venture.
>>BUY SPCT TOKENS NOW<<
In recent days, Shiba Inu (SHIB) has experienced a notable surge in large transaction volume. On November 11, SHIB news revealed that a whale acquired eight trillion SHIB tokens, contributing to a substantial increase in Shiba Inus transaction volume. This surge contrasts with the 1.57 trillion SHIB recorded just three days earlier on November 8.
Despite the heightened whale activity, Shiba Inus (SHIB) price experienced a notable decline, plummeting from $0.00000951 to $0.00000809 between November 11 and November 21. This downturn equates to a substantial 17% loss for Shiba Inu investors, As Shiba Inus community grapples with market fluctuations, attention turns to the SHIB price prediction.
Analysts foresee a potential downward trajectory based on Shiba Inus price performance over the past months. The SHIB price prediction underscores concerns as experts anticipate a further drop, with projections pointing to $0.00000723 by December 3.
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Examining the Latest Cryptocurrency Poised for Exponential Growth ... - Analytics Insight
David Sovka: A primer on cryptocurrency, aka a fool and his money are soon parted – Times Colonist
Cryptocurrency is made up by a process called mining. I would give you a detailed explanation of this process, but the important thing to know is the process does not involve mining in any way
Your 50s tend to be a time of reflection. Youre pretty sure you are more than halway through life, and start to ask what it all means.
You wonder about career choices, family relationships and why your back hurts so much all the time. Also: Why cant you be rich beyond the dreams of avarice?
This is why so many people in their 50shave succumbed to the predatory schemes and bald-faced lies of the Charles Ponzis and Bernie Madoffs and Sam Bankman-Frieds of the world.
And speaking of overly complicated financial flimflam
Cryptocurrency is a virtual currency secured by something called cryptography, which sounds both computery and James Bondy at the same time!
I know what youre thinking: Dave! Doesnt virtual mean that it is not real, its just made up, like what you write every week? First, yes in exactly the same way that money and the entire global economy is just made up. Second, thank you for reading.
To the extent that they exist at all, most cryptocurrencies live on decentralized networks using blockchain technology. Not Lego. A blockchain is basically a set of connected blocks of information on a virtual ledger. Each block contains a list of transactions that have been independently verified by each validator on a network.
Theres probably a simpler way of explaining all this, but thats kind of cryptocurrencys superpower: technical obfuscation. On the surface, the explanation makes little sense.
But then you dig deeper, and it makes no sense at all. Nevertheless, it is all safely based on the fundamental accounting principle: A fool and his money are soon parted.
Crypto refers to the various encryption algorithms and cryptographic techniques, such as elliptical curve encryption and public-private key pairs, used to protect your money from werewolves and Revenue Canada.
Dont think about it too much. The point to remember with crypto is that bigfoot, chupacabra and Taylor Swift are totally real things and want your money!
You have probably heard of Bitcoin, the most well known and successful of the cryptocurrencies (asofOct. 27, Bitcoin had a total market value of $656billion US).
There is also Ethereum ($212 billion), Tether ($84.5 billion), Binance Coin ($62.6 billion), XRP, Terra, Solana, Cardano, Avalanche CoinMarketCap reports there are currently 22,932 different cryptocurrencies, with a total market capitalization of $1.1 trillion.
So many people throwing their money here/away means it must be real!
You may be wondering, why are there so many types of cryptocurrency? Part of the reason is that blockchain technology is open source and can be developed by anyone with a computer and a pointy head. The other part is that, generally speaking, people are greedy idiots.
I dont mean you, obviously, but consider all the people you know: your friends, family, colleagues. Knuckleheads to a man, am I right? Those people should definitely not be goofing around with global economy-wrecking technology, nor handing over all their money to somebody else doing that.
Crypto aficionados point out that because cryptocurrencies are not issued by any central authority, such as the Bank of Canada or your mom, they are theoretically immune to government interference or manipulation. Also, they are a great way to buy and sell non-fungible tokens, one of the hottest topics in the Decentralized Finance space.
If you think I do not know what is meant by the Decentralized Finance space, then pay no attention to that man behind the curtain! Anyway, non-fungible tokens are a way of tracking who owns things that do not necessarily exist.
For example, expensive digital artwork.
Heres how it works: Lets say somebody uses a computer to draw a dogs bum with a hat, and names it after my mother-in-law, Margaret. Using blockchain technology, the artist can label a single digital instance of the artwork and sell it to you!
Anyone can look at Margaret online, but the non-fungible token proves Margaret is all yours. Doesnt the empress look great in her new clothes?
Cryptocurrency is made up by a process called mining. I would give you a detailed explanation of this process, but the important thing to know is the process does not involve mining in any way. Its really just hot computer homework. I mean that literally.
Here in British Columbia, B.C. Hydro had to impose an 18-month suspension on new cryptocurrency mining, an energy-intensive process involving computers and chupacabras and whatnot.
Cryptocurrency mining just takes too much of our electricity for too few people hunting for El Dorado. Reminder: We need that electricity to heat our homes, charge our electric cars and toothbrushes, power industry and generally keep the lights on. Reminder: El Dorado is not a real place, and never was.
Which brings us to our 50-something problem. My wife and I have always tried to manage our monthly finances by following two principles:
1. Spend a little, save a little, give a little.
2. Dont spend more than you earn.
We have done fine over the years. We are wealthy by world standards and have no real wants. Except for the part about being really filthy stinking rich.
For that, let me suggest one more principle to follow (as soon as B.C. Hydro lets us start mining operations again):
3. BUY DAVECOIN! BUY DAVECOIN NOW!
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David Sovka: A primer on cryptocurrency, aka a fool and his money are soon parted - Times Colonist
Cryptocurrency market retreats after recent rally, Bitcoin and Ethereum slip By Investing.com – Investing.com
NEW YORK - The cryptocurrency market is experiencing a downturn following a period of substantial gains, with leading digital currencies (BTC) and (ETH) facing declines. After reaching a peak market capitalization of $1.4 trillion, the sector is showing signs of a pullback.
Bitcoin, which recently saw its price climb, has reversed its gains, currently trading at $36,656.75. This represents a significant drop of over 15% within the past week. Analysis from Santiment points to a decrease in transaction volume and an increase in the Market Value to Realized Value (MVRV) ratio, suggesting that the price may have been overvalued. Despite the bearish momentum indicated by technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), the Chaikin Money Flow (CMF) remains above zero, signaling some optimism.
Ethereum initially surged above $2,000 but has since retreated to $1,959.51, reflecting a drop of more than 4% in seven days. The downturn comes despite signs of continued interest in Ethereum's futures markets, as evidenced by a positive funding rate and Taker Buy Sell Ratio. The Korean investment sentiment has been low, as reflected by the Korea Premium Index.
Meme cryptocurrencies are mirroring the losses seen across the broader market. (DOGE) and (SHIB) have seen their values fall by up to 7%. The decline in these popular coins further underscores the current market trend.
The overall sentiment in the cryptocurrency market is currently 'greedy,' according to the Fear and Greed Index which stands at 69. However, with trading volumes dropping by 40% and key technical indicators signaling bearishness, there is an anticipation of continued slow movement in the near term. Major wallets have reportedly shed over 50k BTC post-rally, contributing to the decline in transaction volume.
As investors and traders navigate this volatile landscape, they will be closely monitoring these metrics and analyses to gauge future movements within the cryptocurrency market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Cryptocurrency market retreats after recent rally, Bitcoin and Ethereum slip By Investing.com - Investing.com
Three Men Arrested For Complex Bank Fraud And Cryptocurrency … – Department of Justice
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today the arrests of ZHONG SHI GAO, a/k/a George, NAIFENG XU, a/k/a Andy, and FEI JIANG, a/k/a Jeffrey, a/k/a Brother Fei, for charges in connection with a scheme to steal and launder millions of dollars from financial institutions, which resulted in the theft of over $10 million. GAO and JIANG were arrested this morning and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. XU was arrested in Oklahoma and will be presented in the U.S. District Court for the Eastern District of Oklahoma. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: For years, Zhong Shi Gao, Naifeng Xu, and Fei Jiang allegedly participated in a complex scheme to steal over $10 million from nearly a dozen U.S. banks and financial institutions, which they converted into cryptocurrency and moved to foreign cryptocurrency exchanges. These charges should serve as a warning to fraudsters and cybercriminals who think they can turn to cryptocurrency to hide their identities together with our partner agencies, we will find you and hold you accountable for your crimes.
FBI Assistant Director in Charge James Smith said: Gao, Jiang, and Xu were arrested for allegedly stealing and laundering more than $10 million dollars by scamming multiple financial institutions and using foreign cryptocurrency exchanges. Schemes like this harm institutions and make it tougher to report suspicious transfers. The arrests today serve as a warning to anyone thinking of attempting to engage in bank fraud. The FBI will hold you accountable in the criminal justice system.
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Between at least in or about 2018 and in or about 2022, ZHONG SHI GAO, a/k/a George, NAIFENG XU, a/k/a Andy, and FEI JIANG, a/k/a Jeffrey, a/k/a Brother Fei, participated in a scheme with others to steal millions of dollars from financial institutions by causing transfers of funds between accounts they controlled, then falsely and fraudulently reporting that the transfers were unauthorized, which induced the financial institutions to credit them the amount of the transfers. The scheme proceeded in the following manner:
First, GAO, XU, JIANG, and other members of the scheme would recruit other people frequently foreign nationals from China and Taiwan temporarily residing in the United States to open bank accounts at various bank branches in the New York City metropolitan area and elsewhere. Control over these bank accounts would then be given to GAO, XU, JIANG, and other members of the scheme.
Second, GAO, XU, JIANG, and other members of the scheme would arrange for funds to be deposited and transferred between bank accounts controlled by members of the scheme. Next, GAO, XU, JIANG, and other members of the scheme would cause fraudulent reports to be filed with the banks claiming that these wire transfers were unauthorized. This prompted the banks both the bank issuing the wire transfer and the bank receiving the wire transfer to temporarily credit the accounts in the amount of the transferred funds, effectively doubling the amount of money initially deposited into these accounts, even though GAO, XU, JIANG, and other members of the scheme had in fact authorized the transfers and maintained control over the transferred funds all along.
Finally, GAO, XU, JIANG, and other members of the scheme would arrange for the credited funds to be quickly withdrawn as cash or converted into cryptocurrency and moved to foreign cryptocurrency exchanges before the banks realized that the unauthorized-transfer reports were fraudulent. This resulted in GAO, XU, JIANG, and other members of the scheme withdrawing nearly double the money initially deposited while leaving the bank accounts with negative balances.
In total, GAO, XU, JIANG, and other members of the scheme are responsible for over $10 million in actual losses to nearly a dozen banks and financial institutions.
* * *
ZHONG SHI GAO, 31, of Flushing, New York; NAIFENG XU, 37, of Guthrie, Oklahoma; and FEI JIANG, 41, of Brooklyn, New York, are each charged with one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison; one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of the FBIs Asian and African Organized Crime Squad. Mr. Williams also thanked the FBI Field Office in Oklahoma City for their assistance in the investigation of this case.
This case is being handled by the Offices Violent & Organized Crime Unit. Assistant U.S. Attorneys Andrew K. Chan, James Ligtenberg, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
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Three Men Arrested For Complex Bank Fraud And Cryptocurrency ... - Department of Justice
Crypto Safe: How To Move Cryptocurrency From Crypto Exchange … – CCN.com
Crypto Safe: How To Move Cryptocurrency From Crypto Exchange To A Hardware Wallet | Credit: Shutterstock
Key Takeaways
Securing cryptocurrencies is paramount because blockchain transactions are irreversible and decentralized. As cryptocurrencies run on a trustless basis, strong security precautions are crucial. Users must prioritize protecting their digital assets against fraud, hacking, and illegal access.
Selecting self-custody, in which users maintain control over private keys, improves security over exchange custody and lowers the possibility of vulnerabilities involving third parties.
Users of cryptocurrencies gain financial independence; therefore, maintaining the integrity of digital money depends on security. Cybercriminals are a persistent concern since they target wallets and exchanges.
Risks are reduced by employing secure procedures, including two-factor authentication, strong passwords, and hardware wallets. Understanding and putting into practice strong security measures is essential for the long-term preservation of ones cryptocurrency assets in the rapidly evolving world of digital money.
Hardware wallets are specialized devices made to handle and store cryptocurrency safely. Such wallets offer an offline, cold storage option for protecting private keys and sensitive data, unlike software wallets, which are vulnerable to online attacks.
These compact, frequently USB-like devices produce and store private keys offline, reducing their vulnerability to malware and other cyber threats. Because hardware wallets keep private keys separate from devices linked to the internet, they provide higher protection for cryptocurrency users.
The hardware wallets private keys are kept at all times, providing additional security against unwanted access. Users can quickly start transactions when necessary by connecting the hardware wallet to a computer or mobile device.
Popular hardware wallet brands include Ledger and Trezor, contributing significantly to the secure storage and management of digital assets in the rapidly evolving landscape of cryptocurrencies.
Hardware wallets come in various forms, each designed to cater to user preferences and needs. Here are three main types of hardware wallets:
Hardware wallets with USB ports are the most popular and extensively utilized. Customers may access and manage their cryptocurrency holdings via a specialized interface by connecting these devices to a computers USB port. Trezor devices and the Ledger Nano S and Nano X are well-known examples of hardware wallets.
NFC-enabled hardware wallets connect wirelessly to other devices by bringing them close together. Other devices that can be connected wirelessly include smartphones and tablets. This eliminates the need for physical connections and enables safe and easy transactions. Despite being less popular than USB-based wallets, NFC wallets offer a simple and effective method of managing Bitcoins.
Hardware wallets that support Bluetooth link wirelessly to other devices, such as PCs and smartphones, by utilizing Bluetooth technology. This wireless feature makes The user experience more flexible, allowing secure transactions without being limited by physical wires. Ledger Nano X is one such device offering Bluetooth connectivity for convenience.
Users should select the hardware wallet that best suits their needs and preferences based on functionality and security considerations, as each type differs. Because they store private keys offline, hardware wallets regardless of type are usually considered safer than software wallets.
Storing cryptocurrency on a hardware wallet is a critical and highly preferred practice for securing digital assets. With their offline storage, hardware wallets provide strong security against cyber threats, in contrast to online wallets or exchanges that are vulnerable to hacking.
Isolating private keys from the internet reduces the possibility of unwanted access and security breaches, which is a crucial benefit. Furthermore, by preventing physical assaults, hardware wallets tamper-resistant design improves security.
Users lessen the risks connected to centralized platforms by regaining control over their financial independence. Its crucial to stress that while hardware wallets greatly lower the risk, no technique is 100% reliable or entirely foolproof.
It is still necessary for users to follow recommended security procedures, like frequent upgrades, secure passwords, and cautious recovery seed management, to protect their cryptocurrency investments from cyberattacks.
What are the factors that should be considered while choosing a hardware wallet?
A common misconception is that a cold wallet is the opposite of a hot wallet. However, a cold wallets key characteristic is its ability to generate and store private keys offline, ensuring it never interacts with smart contracts. This feature is essential because it keeps the investors keys offline and shields the individual from potentially harmful smart contracts.
The primary role of a true cold wallet is to serve as a secure vault for the majority of the crypto assets held by an investor, effectively isolating these coins or assets from all potential risks. It can be likened to a savings account where funds are stored but rarely involved in transactions.
Offline private keys are essential for protection against hacks and malware. However, they cant safeguard from all risks. Interacting with dApps and Web3 often involves dealing with smart contracts, which can expose crypto wallets to vulnerabilities if not handled correctly.
Mistakes in understanding or signing smart contracts can inadvertently compromise wallet security.
Some wallets grant actual ownership of digital assets, while others only provide an interface to use, leading to a forfeiture of asset ownership.
Typically, custodial wallets, operated by centralized exchanges, manage the keys to an account rather than allowing individual management of private keys. This arrangement can mean that the exchange holds true ownership of the funds.
Security is an important aspect to consider. The effectiveness of a crypto wallets security largely depends on how it stores and accesses private keys. Access to these keys means access to the entire wallet.
A robust crypto wallet should ensure that private keys are stored securely accessible only to the legitimate owner. Hackers often try to gain remote access to private keys by targeting internet-connected devices, using tactics like screen weaponization or extracting public keys from browser data.
Many crypto wallets are designed for a single network, necessitating separate accounts for each blockchain network. For instance, accounts for Bitcoin and Ether would be distinct.
However, some wallets, like Ledger devices, allow the creation of multiple accounts across various blockchains. This feature is beneficial for those intending to use multiple networks.
Within the same ecosystem are wallets designed to support specific types of assets. Some wallets may only keep coins, while others accommodate fungible and non-fungible tokens. For example, storing and managing Bitcoin Ordinals requires a specifically designed wallet.
This hardware wallet supports over 5500 cryptocurrencies, including BTC, ETH, and XRP. It features exchange integration and is accessible via mobile apps for both Android and iOS.
Key features include Bluetooth connectivity, the capacity to support 3-20 apps, staking support, and the Ledger Live software. The main advantages of this wallet are its secure storage, the convenience of Bluetooth, and support for coin staking. However, it lacks a touchscreen.
Price: $173
A hardware wallet supporting over 1800 cryptocurrencies like BTC, ETH, and USDT, it integrates with exchanges and offers a mobile app for Android. It stands out with its touchscreen, password storage, fiat currency conversion, and network-isolated authentication. Its pros include customizable transaction fees and enhanced security against penetration attacks, but the small touchscreen can be challenging.
Price: $219
This hardware wallet supports over 10,000 tokens, including BTC, ETH, and LTC, and features exchange integration. Its accessible through mobile apps on both Android and iOS. Its notable features are complete protection against remote and online attacks and support for many tokens.
The wallet is air-gapped for enhanced security and has a tamper-proof design, but its customer support is not ideal. This means the wallet is designed to operate without needing to be connected to the internet or any other network.
Price: $169
Compatible with over 1800 cryptocurrencies such as BTC, ETH, and XRP, this hardware wallet includes exchange integration and is available through mobile apps for Android and iOS.
Its known for the Ledger Live app, compatibility with various software wallets, and staking support. Its main advantages are being secure, affordable, and easy to use, although it can be complex for beginners.
Price: $93
A hardware wallet that supports various cryptocurrencies, including BTC, ETH, LTC, and ERC20 tokens, integrates with exchanges and offers mobile apps for Android and iOS. Its Defi-focused with a built-in fingerprint scanner, water-resistant, and boasts multi-layer security. Its compact and portable design, Bluetooth compatibility, and long battery life are significant pros, but it offers limited staking coin options.
Price: $149
When receiving a hardware wallet, its important to carefully inspect the packaging for tampering signs, ensuring it includes seals or tamper-evident features. The device owner should verify that all items listed in the products manual or on the manufacturers website are present, including the wallet device, connection cable, recovery seed cards, and a guide.
The owner should inspect the device for any damage or irregularities that might suggest tampering or previous use and ensure it arrives without pre-installed software, as this could be a red flag.
Authentic wallets usually come with official documentation for proper setup and usage. The owner should follow the manufacturers instructions to verify the devices authenticity using the provided serial numbers or verification methods.
Establishing a connection between a hardware wallet and a computer or mobile device is a step in its setup. The owner should know that this part involves using the provided connection cable, typically a USB cable, to link the wallet to the device. Once connected, the hardware wallet may automatically power on or require manual activation, depending on the model.
The next step is to download and install the official software or app from the wallet manufacturers website or app store, ensuring the sources authenticity. After installation, the software should be opened, which will usually detect the hardware wallet and guide through the initial setup, including wallet creation or restoration. Its essential to ensure the computer or mobile device recognizes the hardware wallet, troubleshooting any issues with cable connections or USB ports as necessary.
The initial connection also allows the check and update of the wallets firmware, maintaining its security and functionality. Finally, additional setup steps, such as setting a PIN, generating a recovery phrase, or adjusting security settings, should be completed as the software instructs.
Creating a secure PIN for a hardware wallet involves selecting a unique and non-guessable number to prevent unauthorized access. This PIN is entered into the wallet, often requiring a double entry for confirmation. Maintaining the confidentiality of this PIN is obviously important so that the owner of the device avoids sharing or storing it in easily accessible locations.
The hardware wallet automatically generates a recovery seed, typically a sequence of 12 to 24 words, necessary for wallet recovery in case of loss or damage. This seed should be carefully written down, ensuring the words are in the exact order presented. Digital storage of the seed is discouraged due to hacking risks.
Verifying the recorded seeds accuracy is essential, often involving re-entering it into the wallet during setup. The seed should be stored securely and privately, considering options like a safe or secure deposit box for added protection.
Measures to safeguard the seed from damage, such as laminating the paper or using a metal storage device, are advisable. Regular checks are recommended to ensure the seed remains accessible and legible, preparing for any necessary wallet recovery situations.
The process begins by accessing the chosen cryptocurrency exchange through its official website or mobile application. Credentials are entered to log into the account, ensuring a secure connection, often indicated by HTTPS in the URL, and two-factor authentication (2FA) may be used for added security.
Within the exchanges interface, the section for withdrawing or transferring funds is located, typically found under tabs like Wallets, Funds, or Accounts. It is essential to become familiar with the interface to avoid mistakes and understand the process for initiating a transfer.
The specific cryptocurrency intended for transfer to the hardware wallet is selected from the list of available cryptocurrencies. Before initiating the transfer, the available balance of the chosen cryptocurrency is checked to ensure sufficient funds for the transfer and any associated fees.
The receiving address of the hardware wallet for the specific cryptocurrency is obtained, usually by accessing the wallet and selecting the option to receive the cryptocurrency. Extreme care is taken to ensure the address is entered correctly to avoid irreversible loss of funds.
Before confirming the transaction, all details, including the amount of cryptocurrency to transfer and the recipient address, are thoroughly reviewed. Awareness of any transaction fees charged by the exchange for the withdrawal is important, as it affects the total amount received in the hardware wallet.
After verifying all details, the exchange confirms the transaction, which may involve additional security steps like 2FA. Once approved, the transaction is processed by the exchange, and the time taken can vary depending on the exchange and network congestion.
The hardware wallet is regularly checked to see if the transaction has been received, which can be done through the wallets interface or a blockchain explorer. Depending on the cryptocurrency, a certain number of network confirmations may be needed before the funds are fully available in the hardware wallet.
Once the transfer is complete, keeping a record of the transaction details is advisable, especially if the transaction is significant.
Withdrawal of funds typically refers to moving funds from one platform (e.g., an exchange like Coinbase) to an external wallet (such as a hardware wallet like Ledger or a software wallet). This section will explain the steps to withdraw cryptocurrency from Coinbase to a Ledger wallet.
The process begins by opening and logging into the Coinbase website or app with the necessary credentials. Two-factor authentication (2FA) may be used as an additional security measure to ensure a secure login.
Once logged in, navigate to the My Assets section to display cryptocurrency holdings. Becoming familiar with the layout is important to easily locate assets and withdrawal options.
The specific one intended for transfer to a Ledger wallet is selected from the list of cryptocurrencies. Additionally, a balance check is conducted to ensure there is a sufficient amount of the cryptocurrency available for the withdrawal, taking into account any necessary fees.
The transfer is initiated by locating and clicking the Send or Receive button associated with the chosen cryptocurrency. It is understood that the Send option is typically used for external transfers, while Receive may pertain to different types of transactions.
The Ledger Live application is opened and navigated to the account for the specific cryptocurrency to copy the receiving address. This address is then carefully pasted into Coinbase, with meticulous attention to ensure it matches exactly, to avoid any potential loss of funds.
The amount of cryptocurrency to be transferred to the Ledger wallet is entered. Additionally, it is ensured that an adequate amount is left to cover any network fees charged by Coinbase.
The transaction details, including the amount and the recipients address, are carefully reviewed to ensure accuracy. This step is crucial as all details must be correct; transactions are irreversible once initiated.
Some cryptocurrencies provide the option to set the network fee, which can influence the speed of the transaction. An appropriate fee is selected, balancing the cost with the desired transaction confirmation speed.
The withdrawal on Coinbase is finalized by confirming the transaction, a process that may include additional security steps such as two-factor authentication (2FA). Once the transaction is confirmed, Coinbase proceeds to process it and broadcast it to the blockchain.
Ledger Live is opened to monitor the incoming transaction. The time it takes for a transaction to be confirmed can vary, depending on network congestion and the fees selected. Once the transaction appears in Ledger Live, it is verified that it has achieved the required number of confirmations for finality.
Like above, this section will explain the steps to withdraw cryptocurrency from Kraken to a Ledger wallet. The steps include:
Open the Kraken website or app by logging in with the necessary credentials. This is the first step to accessing the Kraken account and managing cryptocurrencies.
Once logged in, the next step is to navigate to the Funding or Wallet section. This area of the Kraken platform is where all the financial transactions, including deposits and withdrawals, are managed.
In the Funding or Wallet section, there is a list of available cryptocurrencies. Here, the specific cryptocurrency that needs to be withdrawn to the hardware wallet is selected.
After selecting the desired cryptocurrency, the next step is to initiate the withdrawal process. This is done by clicking on the Withdraw or Deposit option, which will start the process of transferring the cryptocurrency out of Kraken.
The platform will then prompt for the hardware wallet address where the cryptocurrency will be sent. This address should be carefully entered to ensure it is correct, as transactions to the wrong address cannot be reversed.
After entering the hardware wallet address, the amount of cryptocurrency to be withdrawn is input. Its important to check that there are sufficient funds in the account, including any necessary fees for the transaction.
The final step involves reviewing all the details of the transaction, including the amount and the destination address, and then confirming the withdrawal. Once confirmed, Kraken will process the transaction, and the cryptocurrency will be transferred to the specified hardware wallet address.
Transferring cryptocurrency from an exchange to a wallet involves several steps, and the time it takes can vary depending on various factors. Heres an overview of what might be expected from five popular crypto exchanges:
Binance typically processes withdrawal requests quickly and often within minutes of the investor confirming the withdrawal.
The actual time for the cryptocurrency to reach a wallet depends on the blockchain network. For example, Bitcoin transfers can take from 10 minutes to over an hour, while Ethereum transfers might be quicker, especially if the network isnt congested.
Kraken is known for its efficiency; withdrawal requests are usually processed within a few minutes to an hour.
As with Binance, the time it takes for the funds to appear in a wallet depends on the specific cryptocurrencys network. Bitcoin might take longer than faster networks like Litecoin or Ripple.
Coinbase processes withdrawals promptly, but it sometimes takes longer, ranging from a few minutes to several hours.
The transfer time, once processed by Coinbase, will depend on the blockchain network of the cryptocurrency being transferred.
Bitstamps withdrawal processing times are similar to other major exchanges, typically taking a few minutes to a few hours.
The overall time to transfer to a wallet will also include the network time, which varies by cryptocurrency.
Huobis withdrawal processing is generally efficient, often completed within minutes to an hour.
The total time for the transfer will include the time taken for the transaction to be confirmed on the respective cryptocurrencys network.
Losing a hardware wallet can be a stressful event, but it doesnt necessarily mean that the cryptocurrencies stored within it are lost forever. The security and recovery mechanisms built into most hardware wallets often prevent the permanent loss of crypto assets.
Two famous stories in the crypto world illustrate the importance of backup and careful handling of digital assets and the consequences of losing access to a hardware wallet:
James Howells, a British IT worker, accidentally threw away a hard drive containing 7,500 Bitcoins 2013. The hard drive, which he had used to mine Bitcoin in the early days of the cryptocurrency, ended up in a landfill. These Bitcoins were never recovered.
Stefan Thomas, a German-born programmer living in San Francisco, famously lost access to 7,002 Bitcoins because he forgot the password to his IronKey, an encrypted flash drive containing the private keys to his Bitcoin wallet.
Thomas had only 10 attempts to guess the password before the drive encrypted itself forever. His story highlights the importance of remembering passwords and backup methods for digital wallets.
Transaction delays are often caused by network congestion, especially on blockchains like Bitcoin and Ethereum during peak usage times. Delays normally result from enhanced security checks or verification processes implemented by the exchange.
Entering an incorrect address is a common issue that can lead to the irreversible loss of funds. To prevent this, its crucial to double-check the address before confirming the transaction.
When using a hardware wallet, issues can arise during firmware updates, such as the device not being recognized or the update failing to complete.
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NBC chief cautions youth over cryptocurrency risks – Khmer Times
Dr Chea Serey, Governor of the National Bank of Cambodia, has urged the youth to exercise caution while investing in cryptocurrencies without properly understanding the risk factors associated with them.
Talking to CNBC, on the sidelines of the Singapore Fintech Forum, Serey said there are obviously bad actors and abuses in the world of cryptocurrencies.
Cambodia has taken a relatively tough stance on cryptocurrency, with the NBC issuing a directive as early as in 2019 banning all forms of cryptocurrency transactions in the country. The ban has been implemented through financial institutions and payment processors, effectively preventing any crypto trading within Cambodias borders.
However, this ban doesnt apply to those individuals willing to invest their money in cryptocurrencies.
There is always confusion about crypto and blockchain and I am a blockchain enthusiast and as a matter of fact the Bakong Payment System the NBC has been pioneering is based on blockchain technology. We can definitely use blockchain for very good cause, she pointed out.
The NBC Governor drew an analogue between fanatic crypto enthusiasts and children who treasure marble balls. Marble balls are of great importance to children and there is nothing wrong with a child exchanging them for a snack or even his/her shoes as there is a value to it. But you cant go around and tell everyone that the marble ball has great value and could be stored as an asset for the future.
And this is the same as cryptocurrency. If you value it there is nothing wrong for you to accept it. But dont go around and tell others that this is the future.
These days lot of kids go into the crypto world with the mindset that it is one of the fastest growing assets. They are under the illusion that crypto offers quick money. But they have no idea about the risks involved in it and this is the danger.
Dr Chea Serey said the memorandum of understanding (MoU) signed on Cross-border QR Code Payment Cooperation between the National Bank of Cambodia and AliPay Connect is a great initiative, pointing out that it offers interoperability between Cambodias mobile users and the Alipay Plus merchants.
As we know, there are close to 83 million Alipay merchants and it means that Cambodian citizens who travel abroad will be able to make payments to any of these merchants from their own banking accounts. And, vice versa, any users of Alipay Plus can come to Cambodia and make payments to our QR standards.
This is an important step to promote tourism in the country. As a country, we depend a lot on tourists and this would make the tourism experience in the country much more convenient for foreigners. The move will also boost the local economy as small businesses will be able to sell more with tourists finding easy payment options.
Serey said financial inclusion and de-dollarisation of the economy remain the top two priorities of NBC. The promotion of digital payment system is very much the need of the hour. From a customers perspective, it will create a footprint on his/her financial behaviour giving easy access to the credit systems.
She said that NBC wants to make the usage of local currency more convenient and therefore the digital form of it would definitely help because there would be no longer a requirement to carry huge stacks of currencies to make payments.
Most importantly, the idea is not to eliminate the cash from the economy as cash will always be the king. It is just to encourage the people who are able to be digitally literate to adopt this payment system.
And we have to be mindful that not everyone is digitally literate and if you force them into using this it could create another set of problems. There are issues such as cybersecurity, hacking, identity theft and so on. Definitely, we dont want to move completely away from the existing system, but the objective is to offer alternatives.
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NBC chief cautions youth over cryptocurrency risks - Khmer Times
Cryptocurrency Ponzi Scam Unearthed in Odisha, Head of Yes World Crypto Token Arrested – Gadgets 360
The Economic Offences Wing (EOW) of Odisha has arrested the Country Head of "Yes World Crypto Token," namely Sandeep Choudhary (40) from Jaipur.
Choudhary is a native of Rajasthan's Jhunjhunu. The case was registered on October 16 under sections 420, 467, 468, 471 and 120-B of the Indian Penal Code and sections 4, 5 and 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, section 6 of the Odisha Protection of Interests of Depositors Act and section 65 (C) of the Information Technology Act.
Since he was absconding and there was a possibility of his fleeing from the country, an LOC (Look Out Circular) was issued against him by the Bureau of Immigration (BOI) at the request of EOW, Odisha.
On November 15 while he was trying to escape from India to Dubai, he was intercepted and detained by BOI at Jaipur International Airport under intimation to EOW, Odisha. The EOW team went to Jaipur and arrested the accused.
He was produced before the local court in Jaipur on November 16. The court granted him five five-day transit remand. He was brought to Odisha, and he will be produced before the Hon'ble OPID Court, Cuttack, Odisha. EOW also arrested Basant Kumar Pradhan and Manoj Kumar Patnaik from Bhubaneswar on November 16 who are the up-line members of Yes World in Odisha.
This case was registered on the complaint of one Swagat Kumar Nayak from Puri. He had alleged that he was cheated by Sandeep Choudhary, Basant Kumar, Manoj Kumar Patnaik and others of Yes World of around Rs 85,000.
During the investigation, it was found that "Yes World" is running a huge Ponzi or money circulation scheme in the name of Crypto Coin or Token.
This App or company does not have any substantive or matching business or activity on the ground but depends only on the Pyramid Ponzi scheme by adding more and more numbers of people below them (known as downline members) by tempting or fooling them with very high returns in a very short time.
There are more than 8,000 members or investors in Odisha alone who have invested money in this scheme. In Odisha, it is mainly spread in Bhubaneswar, Khordha, Bhadrak, Kendrapada, Jagatsinghpur, Keonjhar and Nayagarh. This scheme or scam has around 2.5 lakh members, mainly in northern India.
Like any other Ponzi scheme, members initially do get some monetary benefits, which tempt them to add more and more members under them. The total money involved in Yes World is estimated to be more than Rs. 200 crore.
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Cryptocurrency Ponzi Scam Unearthed in Odisha, Head of Yes World Crypto Token Arrested - Gadgets 360