Bitcoin News and Finance: What You Need to Know

In bombshell testimony on Tuesday, Caroline Ellison, former CEO of Alameda Research, accused Sam Bankman-Fried of directing her and others to commit fraud under his leadership at FTX and Alameda. Taking the stand in a red dress, Ellison stated “Alameda took several billions of dollars from FTX customers and used it for investments.” Caroline Ellison Exposes Alleged FTX Fund Siphoning and Political Payoffs According to reporting by Matthew Russell Lee of Inner City Press , who streamed the proceedings from the courtroom, Caroline Ellison detailed how she and her colleagues improperly used billions in customer funds from FTX to pay back loans and make speculative investments for Alameda Research. Lee reported that Ellison claimed she engaged in fraud at Sam Bankman-Fried ‘s direction, alleging he “set up the systems and told us to take the money.” The former Alameda CEO estimated that between $10 to $20 billion in FTX customer funds were deposited into Alameda accounts and used for

A recent study conducted by the Bank of Canada delved into the role a central bank digital currency (CBDC) would play in improving financial inclusion, digital inclusion, and accessibility. The study concludes that while the Canadian financial ecosystem is inclusive, a CBDC might help tackle several challenges not dependent on the system itself. Bank of Canada Study Examines CBDC Role A recent study published by the Bank of Canada, titled “Redefining Financial Inclusion for a Digital Age: Implications for a Central Bank Digital Currency,” examined the challenges a central bank digital currency (CBDC) would tackle in Canada. The study remarks that while financial inclusion is high in Canada, with 98% of adult Canadians having access to a bank account and debit cards, underbanked Canadians can still face barriers and challenges, having to resort to alternate providers that charge higher fees for their services, including payday lenders and cheque cashers. The use of cash in the co

When Satoshi Nakamoto created Bitcoin, many viewed it as a solution to the drawbacks of fiat money. Historically, about 800 fiat currencies have come and gone, with many ultimately failing. Intriguingly, the fundamental reasons for establishing the fiat system remain elusive to many. Some argue that it was designed by governments to perpetuate corruption and fund endless global conflicts. In a nutshell, most fiat currencies have either supported military pursuits or protected financial magnates who benefit from such endeavors. Unraveling the Shadows: The War-Driven Legacy of Fiat Currencies Notably, U.S. presidential hopeful Robert Kennedy Jr. recently remarked , “fiat currency was invented to fund the cause of war.” A bold claim, but history does lend credence to Kennedy’s assertion. Ages ago, people traded with commodities and precious metals fashioned into coins. This practice shifted during the Yuan Dynasty in China (1271-1368 AD) under Kublai Khan. Fiat currency, in essence,

Bad actors exploited Estonia’s once liberal licensing regime for crypto companies to defraud investors and commit other crimes, an investigative report claims. The authors say they discovered dozens of such cases, including scams and schemes for sanctions evasion and money laundering. Since Tallinn tightened its rules, many of these entities have left Estonia, whose banking sector was accused of similar sins in recent years, and on a larger scale. Crypto Platforms Registered in Estonia Facilitated Fraud, Russian Payments, Report Alleges Estonia’s previously lax requirements for crypto businesses seeking to provide EU-licensed services, turned the small Baltic nation into a “hub of financial crime,” according to research conducted by Vsquare, a network of media outlets focused on cross-border investigations in Central Europe. The journalists said this week they had analyzed nearly 300 of these companies and found dozens of cases of fraud, money laundering, and sanctions evasion as w

Global financial services firm Jefferies has warned of “the collapse of the U.S.-dollar paper standard to the benefit of both gold bullion owners and also owners of bitcoin.” He explained that the Federal Reserve, and other G7 central banks, “will not be able to exit from unconventional monetary policy in a benign manner and will ultimately remain committed to ongoing central bank balance-sheet expansion in one form or another.” Bitcoin to Benefit From US Dollar Collapse, Analyst Says Global investment bank Jefferies has cautioned about the potential collapse of the U.S. dollar, which could prove advantageous for bitcoin holders. Jefferies is a leading global, full-service investment banking and capital markets firm headquartered in the U.S. The firm operates across the Americas, Europe, the Middle East, and Asia Pacific. In a note to investors published Wednesday, Chris Wood, Global Head of Equity Strategy at Jefferies, called bitcoin and gold “critical hedges” against currency de

British financial regulator, the Financial Conduct Authority (FCA), has issued 146 crypto promotion alerts in the first 24 hours of its new crypto marketing regime. “We expect businesses including social media platforms, app stores, search engines, domain name registrars, and payments firms to consider the alerts we have issued and play their part in protecting U.K. consumers from illegal promotions,” the regulator detailed. 146 Crypto Alerts Issued in U.K. Within 24 Hours The Financial Conduct Authority (FCA), the top financial regulatory body in the United Kingdom, announced Monday that it issued 146 alerts in the first 24 hours of its new crypto marketing regime . Noting that the changes to legislation that bring crypto asset promotions under its remit are now in force, the FCA wrote: We issued 146 alerts about cryptoasset promotions on the first day of the new regime. “We expect businesses including social media platforms, app stores, search engines, domain name registrars,

The police in the Australian state of South Australia recently seized cryptocurrency worth $1.5 million from an alleged dark web drug dealer. Police also recovered a “large quantity” of the synthetic opioid nitazene as well as tens of thousands of dollars in cash. ‘Illicit Activity on a Dark Web Marketplace’ Police in South Australia, a state in the southern central part of Australia, recently seized cryptocurrency worth $1.5 million from an alleged dark web drug dealer. According to an ABC News report , law enforcement also confiscated a “large quantity” of drugs and electronic devices from an unnamed 25-year-old man. Explaining how the operation against the alleged drug peddler was carried out, Adam Rice, the South Australian Detective Superintendent, said: “The investigation identified illicit activity on a dark web marketplace, attributed that activity to a real-life person in South Australia, identified and traced cryptocurrency used in the offending and then ultimately led t

Last month, 19 distinct bitcoin addresses from 2012 awakened, moving coins that had remained untouched for over 11 years. Fast forward to this month, and we’ve already seen four such transfers from 2012. This Sunday, at block heights 811,239 and 811,244, two addresses from that vintage year collectively transacted 227 BTC , a sum equivalent to $6.34 million using current bitcoin exchange rates. Sleeping Giant Awakens With $6 Million Bitcoin Move After 11 Years The trend of transferring old bitcoins persists in October 2023, following an intriguing set of transactions on October 4 and 6. On these dates, 86 addresses from 2014 transferred 860 bitcoins, an address from 2013 shifted 504.99 bitcoins, and two addresses from 2012 moved a combined 426 BTC . On Sunday, October 8, 2023, btcparser.com spotted two more interesting transactions, collectively moving 227 BTC , valued at a cool $6.34 million. The first transaction came from an address transferring 15 BTC at block height 811,239

According to Pavel Salas, the chief growth officer at Gear Foundation, on-chain smart contract automation makes applications “truly decentralized” because it “removes dependencies on centralized servers or external entities.” Salas also claimed that on-chain smart contract automation means participants can “engage in transactions or exchanges without relying on a central authority.” Webassembly Not a ‘Direct Replacement for EVM’ In his written answers sent to Bitcoin.com News, Salas argued that on-chain smart contract automation also helps decentralized applications (dapps) maintain data integrity without having to rely on external databases. He said since the code of smart contracts deployed on the blockchain is immutable this means it cannot be altered once deployed. Meanwhile, when asked to offer his thoughts on Webassembly (WASM) and the possibility it will overtake the Ethereum Virtual Machine (EVM) at some point, Salas, said he does not see WASM as a direct replacement for EV

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: The Argentine government announces a national digital currency project, Volcano Energy launches Lava Pool, the first Salvadoran Bitcoin mining pool, and a resolution that allows investment funds to invest in cryptocurrency comes into effect in Brazil. Argentine Economy Minister Sergio Massa Announces National Digital Currency Sergio Massa, a presidential candidate and current economy minister of Argentina, proposed launching a national digital currency during the first debate before the presidential elections. As part of his campaign, Massa stated that this new digital currency would be issued alongside a tax reduction plan to move the Argentine economy to the formal sector. During the debate, Massa stated: We are going to launch the Argentine digital currency. Just as your children propose in their platform economy the possibility of trading wit

Zimbabwean residents and institutions can now pay or settle domestic transactions using the recently launched gold-backed digital tokens, the central bank has said. Bank governor John Mangudya said the central bank has enlisted the services of external auditors to “validate the availability and adequacy of gold to ZIG at any given time. ” Preserving Value With Gold-Backed Tokens The Zimbabwean gold-backed digital tokens are now an approved method of paying or settling domestic transactions, the head of the country’s central bank has said. In a statement issued on Oct. 5, John Mangudya, the governor of the Reserve Bank of Zimbabwe (RBZ), added that the digital tokens will also continue to act as a value preservation instrument. Introduction of the Zimbabwe Gold-Backed Digital Token (Zig) as a Means of Payment pic.twitter.com/o1CL5dsbaQ — Reserve Bank of Zimbabwe (@ReserveBankZIM) October 5, 2023 As reported by Bitcoin.com News over the past few months, the RBZ has been working

Openai, the developer of Chatgpt, is considering ways to overcome the shortage of chips needed to power its artificial intelligence (AI) product. One of the options that’s being discussed in the company, according to a recent media report, is to build its own powerful processor. Openai Reportedly Exploring Making In-house AI Chips to Deal With GPU Deficit AI research lab Openai is mulling over the idea to make its own processors, or AI accelerators, amid persisting shortage of the expensive hardware that it needs. Demand for specialized chips has soared since last year’s launch of its AI-based chatbot. A number of options have been discussed to solve the issue, among which acquiring a chip company and working more closely with chipmakers, not just the market leader Nvidia but other suppliers as well, knowledgeable source have told Reuters. Openai CEO Sam Altman, who has previously expressed concerns over the scarcity of graphics processing units (GPUs) and the associated costs, h

Warren Buffett’s right-hand man and the vice chairman of Berkshire Hathaway, Charlie Munger, has expressed his belief that the majority of cryptocurrency investments will become worthless. Regarding bitcoin, the executive opined: “That was the stupidest investment I ever saw.” Charlie Munger Continues to Slam Crypto Berkshire Hathaway Vice Chairman Charlie Munger expressed criticism toward cryptocurrencies once again during an appearance at Zoom’s Zoomtopia conference on Thursday. “Don’t get me started on bitcoins. That was the stupidest investment I ever saw,” Munger exclaimed when he was asked about his outlook for bitcoin and other cryptocurrencies. He also predicted: Most of those investments are going to zero. The Berkshire executive has long been a vocal critic of cryptocurrencies. He previously called bitcoin “rat poison” and likened its trading to “trading turds.” In February, he said: “It’s just ridiculous that anybody would buy this stuff … It’s just unspeakable, it

This week, Openai’s CEO, Sam Altman, delved into the nuances of artificial intelligence (AI) on the Joe Rogan Experience podcast. As they conversed, Rogan articulated that the “real fascinating crypto is bitcoin.” He then expounded on his belief that bitcoin holds the most promise to emerge as “a universal viable currency.” Openai’s Sam Altman and Joe Rogan Dive Deep into Bitcoin’s Promise and AI’s Potential According to statistics , Joe Rogan’s podcast reigns supreme as one of the world’s most profitable and widely heard shows. In episode #2044 , Rogan sat down with Openai’s CEO, Sam Altman . The duo delved into AI’s pros and cons, but also branched out into discussions on central bank digital currencies (CBDCs), the FTX debacle, and the leading crypto asset, bitcoin ( BTC ). After Altman shed light on the expanding American surveillance landscape, Rogan candidly expressed his deep concerns regarding CBDCs , especially the potential linkage with social credit scores. He was assert

Free Talk Live co-host Ian Freeman has been sentenced to eight years in prison for selling bitcoin without a license, the SEC has taken in a loss in its push for interlocutory appeal against Ripple, and a verified “Satoshi” handled has stirred up controversy and debate on social media site X. This and more just below in the latest Bitcoin.com News Week in Review. Free Talk Live Co-Host Ian Freeman Sentenced to 8 Years for Running Unlicensed Bitcoin Business Following his conviction for unlicensed money transmission, money laundering, and tax evasion at the close of December 2022, Keene dweller, libertarian activist, and Free Talk Live co-anchor, Ian Freeman has been sentenced to eight years behind bars this Monday. His fellow Free Talk Live co-host, Mark Edge, explained that an appeal is poised to trail the verdict. Read More Ripple Gains a Victory as Judge Torres Rejects SEC’s Interlocutory Appeal U.S. District Judge Analisa Torres rejected the Securities and Exchange Commissi

Rising regulatory pressures may have limited crypto cards on offer but they remain a viable way to pay with coins where only fiat is accepted. With them, you spend crypto and that’s without the need to exchange it beforehand as it often happens when you want to pay with cryptocurrency in a fiat scenario. Crypto Cards — How They Work and What Are the Offerings in 2023 While not as immediate as most in the crypto community would like, crypto cards nevertheless present an opportunity to pay with decentralized digital money where merchants would only take dollars, euros or any of the other central bank currencies. Just like bank cards, crypto cards can come in physical, or plastic, and virtual form. The latter can be used to make payments online while the former can be also swiped or tapped at brick-and-mortar stores equipped with point of sale (POS) terminals. They are several types of crypto cards, which differ slightly from the regular ones. Credit crypto cards, for example, use de

In the month of September, digital assets worth approximately $332 million were siphoned from trading platforms via methods that include flash loan attacks, exit scams, and exploits. The value of digital assets stolen through exploits rose from $13.5 million in August to nearly $330 million in September. Mixin Kernel Incident Most Significant Exploit in September According to the cybersecurity firm Certik, digital assets worth approximately $332 million were stolen via code exploits, exit scams and flash attacks in the month of September alone. Exploits alone accounted for more than 98% of the thefts ($329.8 million) while the amount stolen through flash loan attacks and rug pulls was less than $2.4 million. As shown by the data, the biggest incident during the month was the $200 million exploit suffered by Mixin Network on Sept. 23. As reported by Bitcoin.com News, the Mixin network team has since asked the attackers to take a bug bounty reward and return the rest of users’ fund

Russian President Vladimir Putin has stated that the U.S. dollar-based global financial system is gradually collapsing. “After all, a currency is a derivative of the power of the economy of the country that issues this currency,” Putin noted, emphasizing: “The share of the American economy in world GDP is declining.” In contrast, the Russian president highlighted the increasing share of BRICS countries in terms of purchasing power parity compared to the G7 countries. Putin on U.S. Dollar-Based Financial System Collapsing Russian President Vladimir Putin conveyed at the plenary session of the 20th-anniversary meeting of the Valdai Discussion Club on Thursday that the global financial system based on the U.S. dollar is gradually collapsing. “The Bretton Woods system is outdated,” Putin said (translated by Google), noting that he is not the only one with this view, as Western experts also share this perspective. The Russian president added: This Bretton Woods system was created on