Federal Court Rejects Motion Filed by Crypto Developer Virgil Griffith to Dismiss Charges on Aiding North Korea
A U.S. federal judge has rejected a motion filed by a former Ethereum Foundation developer over allegations of assisting North Korea to bypass sanctions. Prosecutors claim, Virgil Griffith, aided the regime by providing critical information on cryptocurrencies.
Prosecutors Say Griffith’s Speech Was About the Use of Cryptos to Circumvent Sanctions
Per Law360, a jury is now set to determine if Griffith violated the International Emergency Economic Powers Act by giving a speech at the Pyongyang Blockchain and Cryptocurrency Conference in 2019.
Kevin Castel, a U.S. District Judge, denied Griffith’s motion because the “short and vague” four-page indictment lacked specific details of his alleged criminal actions. He further commented on the matter:
Examining the indictment in light of the parties’ arguments, the court concludes that it provides adequate notice of the charges against Griffith sufficient to enable him to prepare for trial and, if it becomes necessary, plead double jeopardy as a defense. Further, upon review of the law governing the offense conduct, the indictment states a federal crime and violates no constitutional prohibition.
Prosecutors accused the former Ethereum Foundation developer of giving a speech in Pyongyang about the use of cryptocurrencies to get around U.S. economic sanctions.
Griffith was arrested on Thanksgiving Day in 2019. However, on December 30, 2019, he was granted bail by U.S. District Judge Vernon Broderick.
Many crypto supporters stood up for Griffith’s cause when he was arrested, and influencers like John McAfee called the U.S. government “corrupt at the core.”
Griffith didn’t receive permission from the U.S. Department of Justice to travel to South Korea for the conference. However, per court documents, he got the approval of the North Korean United Nations (UN) Mission in Manhattan and was granted a visa.
Griffith Claims His Speech Was Based on Publicly-Available Information About Blockchain
The Ethereum proponent alleges he gave very basic information about blockchain to about 100 North Koreans who attended his speech. Also, he adds that everything said in his participation is publicly available on the internet. However, prosecutors believe North Korea could use his speech’s content to launder money and bypass sanctions potentially.
Also, the court revealed a message sent by Griffith to colleagues in 2018 before his speech, which reads as follow:
We’d love to make an Ethereum trip to the DPRK and set up an Ethereum node … It’ll help them circumvent the current sanctions on them.
But the former blockchain developer claimed in his rejected motion that such speech was protected by the First Amendment freedom of speech.
As of press time, the court date for Griffith’s case is still set for September 2021.
What do you think about this federal judge’s decision? Let us know in the comments section below.
- Published in Uncategorized
Crypto Fund Manager Charged in $5M Ponzi Scheme, Facing up to 30 Years in US Prison
A cryptocurrency fund manager has been charged in a U.S. federal court. He allegedly took over $5 million from investors interested in investing in his crypto funds, promising them high returns. In reality, he was running a Ponzi scheme and is now facing up to 30 years in prison.
Crypto Fund Manager Arrested for Running a Ponzi Scheme
The U.S. Department of Justice (DOJ) announced Tuesday that Jeremy Spence has been arrested and charged in Manhattan federal court in a fraudulent cryptocurrency scheme. The 24-year-old from Bristol, Rhode Island, is also known as “Coin Signals.”
Spence is “a cryptocurrency trader who solicited funds for various cryptocurrency funds that he operated, with commodities fraud and wire fraud offenses,” the DOJ described, adding:
Spence took cryptocurrency worth over $5 million from more than 170 individual investors after making false representations in connection with these cryptocurrency funds.
U.S. Attorney Audrey Strauss explained that the defendant “allegedly lured investors to his cryptocurrency investment scam by touting returns of up to 148%.” However, his investment pools consistently lost money.
FBI Assistant Director-in-Charge Sweeney further detailed that Spence allegedly “used money from new investors to pay off others in order to keep his plan moving — a typical marker of a Ponzi scheme.”
According to the Justice Department, from November 2017 through April 2019, Spence solicited investors for several cryptocurrency investment funds that he had created and managed. Investors “would transfer cryptocurrency, such as bitcoin and ethereum,” to him to invest in the funds for them. The DOJ elaborated:
The largest and most active of which were the Coin Signals Bitmex Fund, a/k/a the ‘CS Mex Fund,’ the Coin Signals Alternative Fund, a/k/a the ‘CS Alt Fund,’ and the Coin Signals Long Term Fund.
Spence is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The Commodity Futures Trading Commission (CFTC) has also filed a federal civil enforcement action against Spence, charging him with fraud for operating the Ponzi scheme.
What do you think about this case? Let us know in the comments section below.
- Published in Uncategorized
Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route
The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements.
Coinbase to Skip IPO Process, Shoots for a Direct Listing
Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.
However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.
On Thursday Coinbase wrote:
Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares
Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.
“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.
Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.
Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.
What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Ukraine to Set up a Large-Scale Crypto Mining Data Center in a Nuclear Power Plant
Ukraine’s government-owned nuclear power plant picked a firm to build a massive data center in Rivne for cryptocurrency mining operations. After a bidding process, Energoatom chose Kyiv Energy Construction Company to handle the nuclear plant crypto mining project.
Nuclear Power Plant Operator Expects to Launch the Data Center in 2022
According to official documents, the data center will be based in the Rivne nuclear power plant, after the construction firm got 8.92 million Hryvnia ($317,620) in funding. The only competitor in the bidding was Ukrenergobudproek. However, they allegedly made an expensive offer, said the regional news outlet Forklog.
The Kyiv Energy Construction Company expects to finish the data center building by August 31, 2022. Per the announcement, the contractor is required to send the documentation that details the whole process. It includes “host state registers, electronic archives, and computing facilities.”
In terms of technical details, the nuclear power plant has a capacity of 2,657 megawatts, and it was built in the late 1970s. Also, the operations of the state-owned nuclear facilities started at the beginning of 1980.
In October 2020, Energoatom also signed a memorandum with a subsidiary of crypto mining giant Bitfury. With the new data center, local media outlets believe Bitfury miners could move their operations into the power plant’s facilities.
Ukraine’s Interest Towards Building Crypto Mining Data Centers in Nuclear Plants
The deal between Energoatom and Kyiv Energy Construction Company is not a surprising move. In fact, the Ministry of Energy of Ukraine asked Energoatom in May 2020 to conduct research to assess crypto mining’s feasibility at their nuclear plants.
As an anecdotal fact in terms of crypto mining in Ukrainian nuclear plants, the nation’s Security Service found illegal crypto mining equipment in a nuclear power plant in 2019.
The installation’s illegal mining rigs were found in the Southern region of Ukraine. Moreover, the investigations determined that such illegal equipment breached a “state secret.”
What do you think about this announcement of building crypto mining data centers in nuclear power plants? Let us know in the comments section below.
- Published in Uncategorized
Indian Parliament to Consider Bill That Creates Digital Rupee While Banning Cryptocurrencies in Current Session
The Indian government has finally moved forward with a cryptocurrency bill. Entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021,” the bill has been listed for consideration in the current parliamentary session of Lok Sabha, the lower house of India’s parliament. It seeks to create a framework for India’s official digital currency to be issued by the Reserve Bank of India (RBI) but prohibit all cryptocurrencies.
Indian Government Set to Introduce Cryptocurrency Bill in Current Parliamentary Session
After almost two years of waiting, the Indian government has finally moved forward with a cryptocurrency bill. According to Lok Sabha’s bulletin dated Jan. 29, the bill entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is listed for consideration in the current parliamentary session. The budget session of Parliament commenced on Friday and will conclude on April 8, with a recess between Feb. 15 and March 8. The union budget will be presented on Feb. 1.
The bulletin lists the bills the Indian government has sent to be taken up during the budget session. Among them is the cryptocurrency bill, whose description reads:
To create a facilitative framework for [the] creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
The Mint publication explained: “In the legislative order of business for the budget session of 17th Lok Sabha that commenced today, the government has listed a bill providing for the banning of all private cryptocurrencies in India such as bitcoin, ether, ripple, and others.”
This bill to ban cryptocurrencies resembles the crypto bill drafted by an interministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg. That bill, dated February 2019, was unveiled by the finance ministry in July 2019. It proposes to ban all private cryptocurrencies and provides for the creation of a central bank digital currency (CBDC), the digital rupee. Garg has since resigned from his government work and the finance ministry had been silent on the bill until now.
On Monday, the Reserve Bank of India (RBI) published a booklet on India’s payment systems acknowledging the popularity of cryptocurrencies. The central bank also confirmed that it is “exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it.” In December, the finance ministry was reported to be considering imposing an 18% goods and services tax (GST) on bitcoin transactions.
First Introduction of Crypto Bill in Parliament, Crypto Community’s Reaction
Although there have been reports of the Indian government planning to prohibit cryptocurrencies before, this is the first time that a bill to ban crypto has been listed for consideration in Lok Sabha.
The Indian crypto community disapproves of the government’s decision. “That’s insane,” one Twitter user wrote. Another warned that the RBI better not ban bitcoin, stating that the “Crypto bill should not be a FUD at this point or India will miss out on the momentum and innovation in the decentralization space.”
The CEO of the Indian crypto exchange Wazirx, Nischal Shetty, commented: “A country as large as India should at least work on understanding the underlying terminologies before presenting technology-related bills in parliament. Seems like a hurried move. If done wrong, this can potentially destroy a lot of value held by the general public.” He added, “Let’s hope this is a precursor to positive crypto regulations,” emphasizing:
Just because a bill is presented doesn’t mean it’ll be cleared … Wrong or hasty regulations will set us back by a decade. Right regulations will catapult India to the forefront of this technology.
“We have leaders who are technologically capable and they’ll definitely raise issues around this,” the CEO believes.
Neeraj Khandelwal, co-founder and chief technology officer at Coindcx, another Indian cryptocurrency exchange, pointed out that it is estimated that there are more than five million Indians holding “a combined wealth of $10 billion in bitcoin which is 2% of India’s forex reserves, taxation on crypto can fetch a few billion dollars in taxes to the Indian govt.” He reiterated that “Previous attempts to ban bitcoin in India have been unsuccessful. The industry has survived 2 years during the RBI imposed banking ban.”
The Indian crypto ban news came after a price spike in bitcoin following Tesla CEO Elon Musk changing his Twitter profile to “#bitcoin” and tweeted, “In retrospect, it was inevitable.”
Do you think India will ban crypto? Let us know in the comments section below.
- Published in Uncategorized
Federal Court Rejects Motion Filed by Crypto Developer Virgil Griffith to Dismiss Charges on Aiding North Korea
A U.S. federal judge has rejected a motion filed by a former Ethereum Foundation developer over allegations of assisting North Korea to bypass sanctions. Prosecutors claim, Virgil Griffith, aided the regime by providing critical information on cryptocurrencies.
Prosecutors Say Griffith’s Speech Was About the Use of Cryptos to Circumvent Sanctions
Per Law360, a jury is now set to determine if Griffith violated the International Emergency Economic Powers Act by giving a speech at the Pyongyang Blockchain and Cryptocurrency Conference in 2019.
Kevin Castel, a U.S. District Judge, denied Griffith’s motion because the “short and vague” four-page indictment lacked specific details of his alleged criminal actions. He further commented on the matter:
Examining the indictment in light of the parties’ arguments, the court concludes that it provides adequate notice of the charges against Griffith sufficient to enable him to prepare for trial and, if it becomes necessary, plead double jeopardy as a defense. Further, upon review of the law governing the offense conduct, the indictment states a federal crime and violates no constitutional prohibition.
Prosecutors accused the former Ethereum Foundation developer of giving a speech in Pyongyang about the use of cryptocurrencies to get around U.S. economic sanctions.
Griffith was arrested on Thanksgiving Day in 2019. However, on December 30, 2019, he was granted bail by U.S. District Judge Vernon Broderick.
Many crypto supporters stood up for Griffith’s cause when he was arrested, and influencers like John McAfee called the U.S. government “corrupt at the core.”
Griffith didn’t receive permission from the U.S. Department of Justice to travel to South Korea for the conference. However, per court documents, he got the approval of the North Korean United Nations (UN) Mission in Manhattan and was granted a visa.
Griffith Claims His Speech Was Based on Publicly-Available Information About Blockchain
The Ethereum proponent alleges he gave very basic information about blockchain to about 100 North Koreans who attended his speech. Also, he adds that everything said in his participation is publicly available on the internet. However, prosecutors believe North Korea could use his speech’s content to launder money and bypass sanctions potentially.
Also, the court revealed a message sent by Griffith to colleagues in 2018 before his speech, which reads as follow:
We’d love to make an Ethereum trip to the DPRK and set up an Ethereum node … It’ll help them circumvent the current sanctions on them.
But the former blockchain developer claimed in his rejected motion that such speech was protected by the First Amendment freedom of speech.
As of press time, the court date for Griffith’s case is still set for September 2021.
What do you think about this federal judge’s decision? Let us know in the comments section below.
- Published in Uncategorized
Traders, influencers lick their wounds after vicious Dogecoin dump
A speculative wave is now receding, and more than one trader regrets the ride.
- Published in Uncategorized
Coinbase Opts out of IPO Routine, Chooses Popular Direct Listing Route
The San Francisco-based cryptocurrency exchange Coinbase recently announced the company plans to do a direct listing, as opposed to following the initial public offering (IPO) route. The decision means that Coinbase can float its shares on an exchange without hiring a financial institution to underwrite the settlements.
Coinbase to Skip IPO Process, Shoots for a Direct Listing
Just recently people familiar with the matter received a tip that the exchange giant Coinbase had plans to sell shares privately ahead of the IPO. In mid-December, Coinbase revealed the confidential filing of an S-1 initial public offering with the U.S. Securities and Exchange Commission.
However, on January 28, 2021, Coinbase announced a proposed direct listing as opposed to the IPO that was initially planned. For instance, a few weeks prior rumors spread that Goldman Sachs would be the exchange’s underwriter.
On Thursday Coinbase wrote:
Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Crypto Proponents See ‘Strong Market Demand’ for Coinbase Shares
Of course, the crypto community started speculating on why Coinbase decided to opt for a direct listing instead of an IPO. James Todaro, MD, partner at Greymatter Capital explained a few reasons why he thinks Coinbase chose this path.
“Possible key reasons,” Todaro tweeted. “Strong market demand/no help needed generating liquidity, [and] no lock-up for early investors (can sell shares immediately). I think early investors see imminent market euphoria,” Todaro added.
Moreover, a direct listing seems to be the popular route these days to some companies rather than IPO. The popular video game company Roblox opted to choose a direct listing and several others are choosing to debut on public equity markets.
Coinbase will be able to jump over the components of an IPO by floating shares without any intermediaries. The San Francisco-based crypto company can sell shares directly to the public without dealing with marketing new equity and the need for investment banks to underwrite transactions.
What do you think about Coinbase choosing to go with a direct listing rather than IPO? Let us know what you think about this subject in the comments section below.
- Published in Uncategorized
Ukraine to Set up a Large-Scale Crypto Mining Data Center in a Nuclear Power Plant
Ukraine’s government-owned nuclear power plant picked a firm to build a massive data center in Rivne for cryptocurrency mining operations. After a bidding process, Energoatom chose Kyiv Energy Construction Company to handle the nuclear plant crypto mining project.
Nuclear Power Plant Operator Expects to Launch the Data Center in 2022
According to official documents, the data center will be based in the Rivne nuclear power plant, after the construction firm got 8.92 million Hryvnia ($317,620) in funding. The only competitor in the bidding was Ukrenergobudproek. However, they allegedly made an expensive offer, said the regional news outlet Forklog.
The Kyiv Energy Construction Company expects to finish the data center building by August 31, 2022. Per the announcement, the contractor is required to send the documentation that details the whole process. It includes “host state registers, electronic archives, and computing facilities.”
In terms of technical details, the nuclear power plant has a capacity of 2,657 megawatts, and it was built in the late 1970s. Also, the operations of the state-owned nuclear facilities started at the beginning of 1980.
In October 2020, Energoatom also signed a memorandum with a subsidiary of crypto mining giant Bitfury. With the new data center, local media outlets believe Bitfury miners could move their operations into the power plant’s facilities.
Ukraine’s Interest Towards Building Crypto Mining Data Centers in Nuclear Plants
The deal between Energoatom and Kyiv Energy Construction Company is not a surprising move. In fact, the Ministry of Energy of Ukraine asked Energoatom in May 2020 to conduct research to assess crypto mining’s feasibility at their nuclear plants.
As an anecdotal fact in terms of crypto mining in Ukrainian nuclear plants, the nation’s Security Service found illegal crypto mining equipment in a nuclear power plant in 2019.
The installation’s illegal mining rigs were found in the Southern region of Ukraine. Moreover, the investigations determined that such illegal equipment breached a “state secret.”
What do you think about this announcement of building crypto mining data centers in nuclear power plants? Let us know in the comments section below.
- Published in Uncategorized
Indian Parliament to Consider Bill That Creates Digital Rupee While Banning Cryptocurrencies in Current Session
The Indian government has finally moved forward with a cryptocurrency bill. Entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021,” the bill has been listed for consideration in the current parliamentary session of Lok Sabha, the lower house of India’s parliament. It seeks to create a framework for India’s official digital currency to be issued by the Reserve Bank of India (RBI) but prohibit all cryptocurrencies.
Indian Government Set to Introduce Cryptocurrency Bill in Current Parliamentary Session
After almost two years of waiting, the Indian government has finally moved forward with a cryptocurrency bill. According to Lok Sabha’s bulletin dated Jan. 29, the bill entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is listed for consideration in the current parliamentary session. The budget session of Parliament commenced on Friday and will conclude on April 8, with a recess between Feb. 15 and March 8. The union budget will be presented on Feb. 1.
The bulletin lists the bills the Indian government has sent to be taken up during the budget session. Among them is the cryptocurrency bill, whose description reads:
To create a facilitative framework for [the] creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
The Mint publication explained: “In the legislative order of business for the budget session of 17th Lok Sabha that commenced today, the government has listed a bill providing for the banning of all private cryptocurrencies in India such as bitcoin, ether, ripple, and others.”
This bill to ban cryptocurrencies resembles the crypto bill drafted by an interministerial committee (IMC) headed by former Finance Secretary Subhash Chandra Garg. That bill, dated February 2019, was unveiled by the finance ministry in July 2019. It proposes to ban all private cryptocurrencies and provides for the creation of a central bank digital currency (CBDC), the digital rupee. Garg has since resigned from his government work and the finance ministry had been silent on the bill until now.
On Monday, the Reserve Bank of India (RBI) published a booklet on India’s payment systems acknowledging the popularity of cryptocurrencies. The central bank also confirmed that it is “exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalise it.” In December, the finance ministry was reported to be considering imposing an 18% goods and services tax (GST) on bitcoin transactions.
First Introduction of Crypto Bill in Parliament, Crypto Community’s Reaction
Although there have been reports of the Indian government planning to prohibit cryptocurrencies before, this is the first time that a bill to ban crypto has been listed for consideration in Lok Sabha.
The Indian crypto community disapproves of the government’s decision. “That’s insane,” one Twitter user wrote. Another warned that the RBI better not ban bitcoin, stating that the “Crypto bill should not be a FUD at this point or India will miss out on the momentum and innovation in the decentralization space.”
The CEO of the Indian crypto exchange Wazirx, Nischal Shetty, commented: “A country as large as India should at least work on understanding the underlying terminologies before presenting technology-related bills in parliament. Seems like a hurried move. If done wrong, this can potentially destroy a lot of value held by the general public.” He added, “Let’s hope this is a precursor to positive crypto regulations,” emphasizing:
Just because a bill is presented doesn’t mean it’ll be cleared … Wrong or hasty regulations will set us back by a decade. Right regulations will catapult India to the forefront of this technology.
“We have leaders who are technologically capable and they’ll definitely raise issues around this,” the CEO believes.
Neeraj Khandelwal, co-founder and chief technology officer at Coindcx, another Indian cryptocurrency exchange, pointed out that it is estimated that there are more than five million Indians holding “a combined wealth of $10 billion in bitcoin which is 2% of India’s forex reserves, taxation on crypto can fetch a few billion dollars in taxes to the Indian govt.” He reiterated that “Previous attempts to ban bitcoin in India have been unsuccessful. The industry has survived 2 years during the RBI imposed banking ban.”
The Indian crypto ban news came after a price spike in bitcoin following Tesla CEO Elon Musk changing his Twitter profile to “#bitcoin” and tweeted, “In retrospect, it was inevitable.”
Do you think India will ban crypto? Let us know in the comments section below.
- Published in Uncategorized