Daily Archives: November 20, 2021

Alabama Securities Regulator Shuts Down 97 Fraudulent Cryptocurrency Trading Websites

Alabama Securities Regulator Shuts Down 97 Fraudulent Cryptocurrency Trading Websites

The securities regulator of the U.S. state of Alabama has issued a cease and desist order against Acoin Trading and 96 other cryptocurrency websites. The crypto investment schemes promise “excessive returns,” report “fictitious account values,” and impose “undisclosed fees.”

US State Regulator Orders 97 Crypto Trading Websites to Shut Down

Alabama Securities Commission announced Thursday that it has issued a cease and desist order against 97 cryptocurrency trading websites. The announcement states:

The Alabama Securities Commission (ASC) issued a cease and desist order against Sir Philip Zuka owner of Acoin Trading and 96 other fraudulent crypto trading platforms.

“The order is a result of Zuka’s failure to register his investment products and failure to register as an investment adviser,” the regulator detailed, adding:

Zuka is in violation of Alabama securities laws for promising excessive returns, reporting fictitious account values and imposing undisclosed fees to an Alabama investor.

The regulator explained that an Alabama investor discovered Acoin Trading online and was intrigued how the program could make investors eight times the original investment in only a week.

“Consequently, the investor participated in a demo and invested approximately $10,000 of bitcoin, which was deposited into a wallet provided on the Acoin Trading website,” the ASC noted.

However, when he wanted to withdraw his money, Zuka demanded additional payment before any funds could be withdrawn. The investor soon realized the investment was a scam; he immediately filed a complaint with the ASC and stopped all communication with Zuka and his trading platform.

However, the regulator said that the Alabama resident lost the entire investment.

According to the order, the owner of Acoin Trading was a Namecheap Inc. user named Sir Philip Zuka, or Sirzuka. The order details:

‘Sirzuka’ created 281 websites through Namecheap Inc. Of the 281 websites, 127 of them function and 96 of them operate in the same manner as Acoin Trading. The IP addresses originated from Nigeria, Europe or the United States.

What do you think about the Alabama securities regulator shutting down 97 crypto trading websites? Let us know in the comments section below.

Opposed to Bitcoin Payments, Bank of Russia Says State Should Not Stimulate Spread of Cryptocurrencies

Opposed to Bitcoin Payments, Bank of Russia Says State Should Not Stimulate Cryptocurrencies

Cryptocurrencies are anonymous and the government shouldn’t encourage their spread, the head of Bank of Russia has insisted. The regulator remains firmly opposed to the legalization of bitcoin and the like as a means of payment in the Russian Federation.

Bank of Russia Reiterates Negative Stance on Cryptocurrencies, Legalization of Bitcoin

A “responsible state” should not stimulate the proliferation of cryptocurrencies, according to Elvira Nabiullina, chair of the Central Bank of Russia (CBR). The head of the monetary authority made the declaration in the lower house of the Russian parliament, the State Duma.

The high-ranking official emphasized that the bank has “an extremely negative attitude towards cryptocurrencies” which she described as “private currencies pretending to be money.” Quoted by the Tass news agency, Nabiullina elaborated:

These cryptocurrencies are anonymous, no one is accountable for them, and, in our opinion, a responsible state should not stimulate their spread and squeeze them out of payments.

At the same time, people need to be given an alternative, the governor acknowledged. Bank of Russia is trying to do that through its projects. “I have already spoken about the digital ruble – in our opinion, this should develop,” Elvira Nabiullina added.

Opposed to Bitcoin Payments, Bank of Russia Says State Should Not Stimulate Cryptocurrencies

The head of Russia’s monetary policy regulator remarked that the CBR is not against digital currencies in general, provided they are not used for “shadow operations.” Nabiullina pointed out, however, that Bank of Russia continues to oppose the legalization of bitcoin as a payment instrument in the country.

In response to the rising popularity of cryptocurrencies and the significant increase in electronic payments, the Russian central bank has stepped up its efforts to create a digital version of the national fiat, the ruble. This year, the regulator formed a digital ruble pilot group with over a dozen financial institutions. A prototype of the CBDC platform will be launched in December, with trials scheduled to commence in January.

The digital ruble is what the Russians need as it will facilitate cheap and reliable non-cash payments, Nabiullina recently told participants in an international banking forum. According to the country’s latest financial market development strategy, the state-issued digital currency should prevent citizens from using ‘money surrogates,’ a term used by officials in Moscow to describe cryptocurrencies.

Do you think Russia will ever legalize bitcoin as a means of payment? Share your expectations in the comments section below.

‘Inflation in the News Driven by Rich People’ — Media Pundits Claim ‘Inflation Is Good’ as Americans Struggle With Less Purchasing Power

‘Inflation in the News Driven by Rich People’ — Media Pundits Claim 'Inflation Is Good' as Americans Struggle With Less Purchasing Power

Inflation in the U.S. has a large number of Americans worried about the future of their purchasing power as the cost of goods and services has continued to rise faster every month. Reports note that Americans are struggling to pay for child care, groceries, gasoline, lumber, healthcare supplies, and used vehicles. On Friday, Harvard economist Kenneth Rogoff told the press U.S. inflation was “eye popping” and in terms of where inflation is headed, Rogoff stressed he thinks “we’re on a knife-edge.”

Members of the US Central Bank Begin to Favor Tapering Asset Purchases — Taper Discussions to Likely Happen at Fed’s December Meeting

On Friday, Reuters reported that the U.S. central bank’s policymakers are publicly debating whether or not the Federal Reserve will taper bond purchases and raise the benchmark interest rate. Fed Governor Christopher Waller told the press on Friday that the tapering should begin soon. “The rapid improvement in the labor market and the deteriorating inflation data have pushed me towards favoring a faster pace of tapering and a more rapid removal of accommodation in 2022,” Waller explained in New York.

The central bank’s vice chair, Richard Clarida, also spoke about tapering on Friday at the San Francisco Fed’s 2021 Asia Economic Policy Conference. “I’ll be looking closely at the data that we get between now and the December meeting, and it may well be appropriate at that meeting to have a discussion about increasing the pace at which we are reducing our balance sheet,” Clarida stressed. “That will be something to consider at the next meeting,” he added.

US Dollar’s Purchasing Power Declines

The rising inflation has taken place in America following the U.S. government’s attempt to mitigate the Covid-19 pandemic with lockdown mandates, shutting down small businesses, and choking the supply chain with coronavirus safety measures. Additionally, the government and Federal Reserve increased America’s monetary supply more so in two years than in the country’s 242 years prior.

‘Inflation in the News Driven by Rich People’ — Media Pundits Claim 'Inflation Is Good' as Americans Struggle With Less Purchasing Power

The U.S. dollar doesn’t go as far anymore, as the cost of beef, hotel and motel accommodations, gasoline, laundry supplies, natural gas, eggs, vehicle rentals, furniture, and used cars has skyrocketed over the last 12 months. Metrics from visualcapitalist.com indicate that the U.S. inflation rate saw the largest increase in 30 years. Moreover, the cost of fuel, transportation, and meat products have seen the largest price jump, rising from 24% to 39% in just a year.

Childcare and other costs associated with parenting are also surging and bars and restaurants are wrestling with inflation, a labor crisis, and supply chain crunch all at the same time. Across the nation, prices have risen the highest in the Midwest and South in states like South Dakota, North Dakota, Nebraska, Iowa, Kansas, and Minnesota.

Mainstream Media Continues to Claim Inflation Is Good, Journalist Insists ‘Inflation in the News Driven by the Rich,’ MSNBC Deletes Tweet That Asserts ‘Inflation We’re Seeing Now Is a Good Thing’

Despite the rising inflation, mainstream media (MSM) headlines have been telling the public things like “don’t worry about inflation” for months. The New York Times tried to explain this week that inflation “is linked to the economic recovery” and recently MSNBC deleted tweets that claimed, “the inflation we’re seeing now is a good thing.”

The American journalist who worked for the New York Times, Verge, and Vice Media, Sarah Jeong, has received a lot of backlash for her statements about inflation.

“Waaaaah the working class’s income is keeping pace with or outstripping inflation but my capital gains aren’t. Boo f***ing hooooo,” Jeong told her 118,000 Twitter followers. In another controversial statement, Jeong tweeted: “All the stuff you see about inflation in the news is driven by rich people flipping their sh** because their parasitic assets aren’t doing as well as they’d like and they’re scared that unemployment benefits + stimmy checks + 15 minimum wage + labor shortage is why.”

‘Inflation in the News Driven by Rich People’ — Media Pundits Claim 'Inflation Is Good' as Americans Struggle With Less Purchasing Power

Harvard Economist: In Terms of Where Inflation Is Going ‘I Think We’re on a Knife-Edge’

Americans spending more dollars on goods and services has taken a toll on people’s funds and data shows that the so-called rising wages in America don’t seem to be measuring up to the inflation. There have been many reports presenting verifiable data showing that the rise in American wages does not make up for the rising inflation.

On Friday, Harvard economist Kenneth Rogoff spoke on the broadcast “Mornings with Maria” and the economist explained that America’s inflation is “eye-popping.” The former IMF chief economist told Maria Bartiromo that he thinks “we’re on a knife-edge” in terms of inflation and there’s a “50-50 chance or a little less” the Fed’s “transitory” prediction is correct.

“I think it’s pretty clear that the first stimulus right after Biden took office and maybe the one at the end of the year in 2020 [was] a little too late in the game,” Rogoff explained in his interview. “They have added to the inflation, along with supply chain and everything else,” he added.

What do you think about America’s rising inflation and how politicians, Federal Reserve policymakers, and mainstream media pundits are coping with the data? Do you think inflation will be “transitory” or do you think it will last a very long time? Let us know what you think about this subject in the comments section below.

10 Congress Members Ask Nancy Pelosi to Help Revise Crypto Provision in Infrastructure Law

10 Congress Members Ask Nancy Pelosi to Help Revise Crypto Provision in Infrastructure Bill

Ten members of the U.S. House of Representatives have called on House Speaker Nancy Pelosi to address the problem with the crypto provision in the infrastructure law. They explained that the current definition of a broker in the law “would increase uncertainty in the cryptocurrency industry, pick winners and losers … all while eroding our country’s competitive edge against other countries in the digital asset marketplace.”

10 Lawmakers Urge House Speaker Pelosi to Address the Crypto Provision in Infrastructure Law

Ten members of the U.S. House of Representatives have jointly sent a letter to House Speaker Nancy Pelosi about the crypto provision in the $1 trillion bipartisan infrastructure bill which President Joe Biden signed into law this week.

The letter was signed by Representatives Darren Soto, Ro Khanna, Stacey Plaskett, Eric Swalwell, Tim Ryan, Susan Wild, Marc Veasey, Jake Auchincloss, Al Lawson, and Charlie Crist.

“We write to express our concerns with the digital asset provision (Section 80603) of H.R. 3684, the Infrastructure Investment and Jobs Act, otherwise known as the Bipartisan Infrastructure Framework (BIF),” the letter dated Nov. 15 begins. “As you and our colleagues in both chambers work to ‘build back better’ we must ensure appropriate taxation and regulation of the cryptocurrency industry,” it states.

Emphasizing that “those making gains in the cryptocurrency markets should pay their fair share of taxes,” the letter urges regulators to also “ensure this innovative technology is not making it easier for criminals to circumvent our laws and regulations.” It continues:

As it is written today, however, the BIF would increase uncertainty in the cryptocurrency industry, pick winners and losers, and thwart Internal Revenue Service (IRS) efforts to accurately tax cryptocurrencies, all while eroding our country’s competitive edge against other countries in the digital asset marketplace.

The lawmakers stressed, “We must have reasonable regulation on cryptocurrencies, but that legislation should not cripple the industry in doing so.”

The letter proceeds to explain the problem with the definition of a “broker” in the infrastructure law. “As it is drafted today, the provision would include miners and other validators, as well as software and hardware wallet makers, who do not engage in trading activities and are beyond the scope of brokerage services,” it explains. “Additionally, many entities included in this expansion have no ability to access the personal, customer information that brokers are required to report to the IRS.”

The lawmakers added, “Well-crafted regulation promotes innovation and American ingenuity,” elaborating:

As such, we request you to consider a pathway to address the digital asset provision of the BIF in future legislation and during ongoing discussions surrounding this provision.

“Your support will help ensure BIF does not capture validators, wallet providers, and others who do not have the ability to comply,” the letter concludes.

Last week, Senators Cynthia Lummis and Ron Wyden introduced a bill to amend the definition of a broker in the infrastructure law’s crypto provision. In addition, Senator Ted Cruz introduced a bill of his own to totally repeal the crypto provision. Currently, the requirements in the infrastructure law will not take effect until Jan. 1, 2023.

Do you think the crypto provision will be amended? Let us know in the comments section below.

While BTC’s Hashrate Climbs Higher, Bitcoin’s Mining Difficulty Nears All-Time High

While BTC's Hashrate Climbs Higher, Bitcoin's Mining Difficulty Nears All-Time High

During the last 90 days, Bitcoin’s hashrate has been climbing higher and has been slowly nearing the all-time high (ATH) the network captured six months ago in May. The accelerated hashrate has caused the network difficulty to rise, as Bitcoin’s mining difficulty has adjusted upward nine times in a row to date and it’s closing in on the network difficulty ATH recorded six months ago.

Bitcoin’s Mining Difficulty Approaches Lifetime High

Bitcoin’s mining difficulty is approaching the all-time high recorded on May 13, 2021. The network’s difficulty is basically a mechanism Satoshi Nakamoto added to maintain a steady rate of close to ten-minute blocks. Furthermore, the difficulty also makes the entire system stronger security-wise, as a 51% attack becomes a lot more expensive and far more difficult to achieve.

When the hashrate changes, every two weeks, the network takes the change into account, and when the hashrate increases the difficulty to mine bitcoin (BTC) also rises. When the hashrate experiences a sudden dive, like it did at the end of June and during the month of July over the bitcoin mining crackdown in China, the difficulty will also lower. When BTC’s hashrate plummeted this year, the network’s mining difficulty slid by 39.8% in different intervals.

Difficulty Needs to Increase More Than 10% in Order to Capture New Record High

The difficulty’s ATH on May 13, 2021, was roughly 25.05 trillion, and two weeks later it adjusted down to 21.05 trillion. Following July 3, BTC’s mining difficulty slid to a low of 13.6 trillion after it experienced the largest downward difficulty adjustment in the network’s lifetime. That massive downward drop was approximately 27.94% at block height 689,472. Today, BTC’s mining difficulty is 22.67 trillion and getting awfully close to nearing its 25.05 trillion ATH.

The bottom line is bitcoin (BTC) will be more difficult to mine than it was six months ago in a short period of time. The mining difficulty will need to increase by 10.27% from the current position to surpass the May 13 record high. At current SHA256 profitability rates, the odds of BTC’s mining difficulty increasing enough to surpass the difficulty ATH recorded six months ago is far greater. ASIC bitcoin mining rigs such as the Microbt Whatsminer M30S++, Ipollo’s B2, and the Bitmain Antminer S19 Pro still make over $25 per day paying $0.12 per kilowatt-hour (kWh) in electricity costs.

What do you think about Bitcoin’s network difficulty nearing the all-time high it recorded in May? Let us know what you think about this subject in the comments section below.

Digital Ruble Poses Risks to Financial Sector and Security, Russian Lawmakers Warn

Digital Ruble Poses Risks to Financial Sector and Security, Russian Lawmakers Warn

Russian parliamentarians have cautioned against risks associated with the introduction of a digital ruble. Among them are the likely increase of competition pressure on banks and new challenges that may arise in the field of information security.

Financial Market Committee Sees Threats in Digital Ruble Project

Russia’s digital fiat, currently under development, brings certain risks that lawmakers want the central bank to carefully examine. The implementation of the digital ruble may pose a challenge for the country’s financial sector, members of the important Financial Market Committee at the State Duma, the lower house of parliament, have noted after deliberations on the project.

The conclusion comes in response to the “Main Directions of Monetary Policy Until 2024” presented by the Central Bank of Russia (CBR), crypto news outlet Forklog reported this week. The document covers the prospects for the launch of a national digital currency among other aspects of Moscow’s government monetary policy.

The deputies are worried that the new form of the Russian currency, the third incarnation of the ruble after cash and bank money, will increase competition in the banking sector. This could hurt the profits of financial institutions and significantly increase the role of the state in the industry.

Furthermore, the introduction of a digital, programmable fiat carries new kinds of risks — in the field of information security, for example. The authors of the report have advised Bank of Russia to analyze the threats to macroeconomic stability and the banking sector. They recommend that the regulator prepare response measures in advance, in case these risks materialize.

At the same time, the Duma committee expects the digital ruble to ensure fast, simple, and secure payments while reducing the cost of payment services. It “positively assesses the analysis of the introduction of digital currency and believes that it would also be interesting to analyze the impact of the spread of cryptocurrencies in global transactions,” the conclusion reads.

With Russians increasingly choosing non-cash payment solutions — these have reached 75% in the past seven years — and with the growing popularity of cryptocurrencies in mind, the CBR and other institutions have seriously taken on the task of offering Russian citizens a government-controlled digital currency. Officials are planning to amend 13 Russian laws and codes to accommodate the central bank digital currency.

In June, Bank of Russia formed a digital ruble pilot group with the participation of over a dozen banks and other stakeholders. The authority plans to complete the platform’s prototype in December 2021 and start testing the CBDC in January 2022. The head of the bank, Elvira Nabiullina, recently stated that the digital ruble will give Russians what they need as a state-issued alternative to other forms of electronic money including decentralized cryptocurrencies and stablecoins backed by foreign fiat.

Do you think CBDCs like the digital ruble pose serious risks to the traditional financial sector? Share your thoughts on the subject in the comments section below.

Gemini Raises $400 Million in Growth Equity Funding Round; Metaverse Clash Incoming


Gemini, the regulated cryptocurrency exchange founded by the Winklevoss Twins, has raised $400 million in its most recent growth equity funding round. This financial round gave it a valuation of $7.1 billion, being one of the most valuable exchanges in the crypto world. The financial round, led by Morgan Creek, also had the participation of key leaders in the venture capital sector. Gemini has been investing heavily in alternative metaverse proposals.

Gemini Hits $7.1 Billion Valuation

Gemini, the cryptocurrency exchange created by the Winklevoss twins, the two Facebook dissidents, has raised $400 million in its latest growth equity funding round. The round was led by Morgan Creek, which put up $75 million, with Sachin Jaitly (a general partner at Morgan Creek) becoming the third member of Gemini’s board of directors, apart from Cameron and Tyler Winklevoss. Other important backers in the round included 10T, ParaFi, Newflow Partners, Marcy Venture Partners, and the Commonwealth Bank of Australia.

This giant round puts Gemini in an enviable situation, reaching a valuation of $7.1 billion and becoming one of the most important U.S.-based exchanges at the moment. The often criticized regulated approach that Gemini has taken in its cryptocurrency business is likely the catalyst for this. On the subject, Sachin Jaitly stated:

Their vision for the role of crypto in redesigning money, the financial system, art, and the Internet, and their track record of incubating and scaling innovative technologies, gives us confidence in Gemini’s ability to continue to be an industry leader.

Gemini’s Alternative Proposal

One of the objectives that Gemini’s founders have is to propose an alternative metaverse, different from what other companies are doing now. In an interview with Forbes, Cameron Winklevoss talked about the different paths that companies trying to shape the idea of metaverse are following. He stressed:

There’s a centralized path… that is one step away from being a metaverse, and that’s totally fine. But there is another path, which is the decentralized metaverse and that’s the metaverse where we believe there’s a greater choice, independence, and opportunity, and there is technology that protects the rights and dignity of individuals.

Gemini has already invested in these initiatives through the Gemini Frontier Fund, including projects like Animoca Brands’ The Sandbox.

This seems to put the company on a collision course yet again with Mark Zuckerberg and Meta (formerly Facebook), which has a very different perception of the metaverse and its execution. Other exchanges are also interested in entering the metaverse investment scene. Kucoin, an Asian exchange, recently launched a $100 million fund to incubate metaverse startups.

What do you think about the $400 million Gemini funding round? Tell us in the comments section below.

Quentin Tarantino Sued for an Upcoming Auction of Pulp Fiction NFTs


Quentin Tarantino, the acclaimed film director, is being sued by Miramax, a Hollywood film producer and distributing company, due to the auction of a series of NFTs related to “Pulp Fiction,” one of the director’s most popular films. The conflict lies in the interpretation that Miramax makes from the initial contract between the parts, arguing that the sale of NFTs does not constitute a publication of any part of the script.

Miramax Sues Quentin Tarantino

Miramax, the Hollywood movie company, sued Quentin Tarantino, the acclaimed film director, for the upcoming auction of a series of Pulp Fiction-themed NFT’s. Tarantino announced it would auction a series of never before seen items of the film in the form of NFTs, including the famous “royale with cheese” handwritten screenplay scene. The auction would utilize a blockchain called the Secret Network, which would allow the content of these NFTs to be secret until the sale of the item.

Miramax affirms that while Tarantino has the rights to any print publication of the script, NFTs are not part of this. The lawsuit states:

The proposed sale of a few original script pages or scenes as an NFT is a one-time transaction, which does not constitute publication, and in any event does not fall within the intended meaning of ‘print publication’ or ‘screenplay publication.

The lawsuit further explains that the right to sell any NFTs is owned and controlled by Miramax.

Tarantino Fights Back

Bryan Freedman, Tarantino’s attorney, challenged the validity of Miramax’s claims, stating that the director had the right to sell “NFTs of his hand-written script for Pulp Fiction and this ham-fisted attempt to prevent him from doing so will fail.” Williams also stressed that the reveal of the details of Miramax’s contract with Tarantino will tarnish the reputation of the company. This means that Tarantino is planning to fight back these allegations in court.

This is one of the first high-profile cases that involve NFTs and Hollywood productions going to court. Many other celebrities and artists have already issued and published NFT drops to take advantage of the NFT craze that ensued earlier this year to open new and alternative sources of revenue. In this sense, Miramax attorney Bart Williams stated that Tarantino’s announcement dilutes the value of the Pulp Fiction IP.

Williams stated:

This one-off effort devalues the NFT rights to ‘Pulp Fiction,’ which Miramax intends to maximize through a strategic, comprehensive approach.

What do you think about the Quentin Tarantino vs. Miramax legal battle? Tell us in the comments section below.

Floki Inu Cryptocurrency Ads Under Investigation in UK

Floki Inu Cryptocurrency Ads Under Investigation in UK

The U.K.’s advertising authority has launched an investigation into advertisements for the cryptocurrency floki inu (FLOKI). The ads, titled “Missed Doge? Get Floki,” have appeared on London buses and the underground. The team behind the floki inu ad campaign says the advertisements are “legally cleared,” and the advertising authority’s action is “an attack against cryptocurrency and against the people’s freedom of choice — a clear attempt at censorship.”

UK’s Advertising Authority Investigating Ads for Floki Inu Cryptocurrency

The Advertising Standards Authority (ASA), the U.K.’s regulator of advertising, is investigating advertisements placed on public transport in London for the cryptocurrency floki inu (FLOKI).

Floki inu is the cryptocurrency named after Tesla CEO Elon Musk’s shiba inu dog. Musk has been called the Dogefather for his support of the meme cryptocurrency dogecoin (DOGE). He tweeted on June 25, “My shiba inu will be named Floki.” The Tesla boss followed up with a tweet on Sept. 12 stating, “Floki has arrived.” FLOKI has both an ERC20 token and a BEP20 token.

The floki inu ads have been seen on London buses and in underground stations. The ads feature “Missed Doge? Get Floki” in big, bold writing.

The team behind the floki inu crypto ad campaign said the advertisements were “legally cleared.” They told the BBC:

These ads also include a clear disclaimer highlighting the volatility of cryptocurrencies.

While Transport for London (TFL), the capital’s transport operator, said that there have not been widespread complaints from the public about cryptocurrency advertisements, some politicians in the U.K. have expressed concerns that the TFL should not have approved the ads for floki inu.

The mayor of London’s office said, “TFL is writing to the ASA and Financial Conduct Authority (FCA) to ask for their views on the concerns being raised.” Green Party London Assembly member Sian Berry told the Guardian:

This should have raised a red flag, and someone at TFL should have looked at this before it was approved.

The team behind the floki inu ad campaign told the BBC in an email:

The attack against these ads by a certain political party is an attack against cryptocurrency and against the people’s freedom of choice — a clear attempt at censorship.

Over the summer, the ASA banned an ad campaign for the cryptocurrency exchange Luno, which ran on TFL. The ad stated that “It’s time to buy” bitcoin.

In a statement to the BBC, the ASA said it was looking at different cryptocurrency advertisements, including those for floki inu, across “various media spaces,” not just TFL. “We’ll be assessing whether these ads break our rules and using our findings to inform our regulation in this area, including any follow-up enforcement action,” the authority described.

What do you think about the investigation into the ads for cryptocurrency floki inu (FLOKI)? Let us know in the comments section below.

Israeli Police Arrest Beitar Jerusalem Owner and 7 Suspects in Multimillion-Dollar Crypto Fraud

Israeli Police Arrest Beitar Jerusalem Owner and 7 Suspects in Multimillion-Dollar Crypto Fraud

Israeli police have arrested eight suspects in connection with a cryptocurrency fraud scheme after raiding their homes and seizing evidence. One of the suspects is Moshe Hogeg, a well-known owner of the premier soccer team Beitar Jerusalem Football Club.

8 People Arrested in Crypto Fraud Scheme in Israel

Israeli police arrested eight suspects Thursday allegedly stealing tens of millions of shekels in a cryptocurrency fraud scheme.

The arrests were made after officers from the police’s Lahav 433 anti-corruption unit raided the suspects’ homes and offices. They gathered evidence and seized items related to the investigation. The investigation lasted several months and unearthed suspected money laundering and tax offenses, the police detailed.

One of the suspects is Moshe Hogeg, an owner of Beitar Jerusalem Football Club, an Israeli professional soccer club that plays in the Israeli Premier League.

The police explained that the suspects operated a cryptocurrency fraud scheme “in a systematic manner“ over a long period of time. Noting that they defrauded investors in several crypto projects, the police said:

Each pocketed millions of shekels while making false presentations to potential investors to invest in seemingly profitable ventures.

In addition to cryptocurrency fraud, police said Hogeg is suspected of having committed sexual crimes. Hogeg has denied both allegations.

Hogeg and several others were sued in May by former employees of an Israeli venture capital fund who claim that three of Israel’s largest initial coin offerings (ICOs) in 2017 and 2018 were outright scams. The three ICOs, launched by Sirin Labs, Stx Technologies Ltd. (Stox), and Leadcoin, collectively raised $250 million from investors worldwide.

Attorneys Moshe Mazor and Amit Hadad representing Hogeg said Thursday that his client “vehemently denies the suspicions against him and is cooperating fully with investigators.” They added:

We are sure that at the end of the investigation it will become clear that there are no grounds to the allegations against him.

What do you think about this case? Let us know in the comments section below.