Tag: Cryptocurrency

Bitcoin surges to $50,000 for the first time since 2021 on ETF demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin hovered around $50,000 after briefly scaling the closely watched level for the first time in over two years, a remarkable comeback from the crypto scandals and wipeouts that cast doubt on the industry’s viability.

The largest digital asset rose as high as $50,328 on Monday in the US and was trading at $49,980 as of 7:40 a.m. Tuesday in Singapore. It has tripled in value since the start of last year after a 64% plunge in 2022. Bitcoin remains below the all-time high of almost $69,000 achieved in November 2021.

The wild price fluctuations seen since the introduction of Bitcoin more than a decade ago have long been one of the main attractions to speculators. While originally promoted as an alternative to the traditional financial system, the latest rally has been driven by optimism that last month’s US approval of spot Bitcoin exchange-traded funds is leading to greater mainstream acceptance.

“There is a lot of talk about inflow of money into this asset,” said Matt Maley, chief market strategist at Miller Tabak & Co. “I’d also note that the momentum players are getting excited as well.”

Risk Appetite

The resurgence in crypto prices comes as expectations of looser monetary policy burnish the allure of riskier assets. “The appetite for risk has trickled over into digital assets as well,” said Chris Newhouse, a DeFi analyst at Cumberland Labs.

Shares of crypto-related companies also gained Monday with Bitcoin proxy MicroStrategy Inc. rising 11%, trading platform Coinbase Global Inc. increasing 3.8% and miner Marathon Digital Holdings Inc. jumping 14.2%. The positive sentiment could spread to Asian stocks related to digital assets.

Bitcoin has recovered all its losses since the May 2022 implosion of stablecoin TerraUSD, which set in motion a wave of failures that ultimately helped bring down Sam Bankman-Fried’s FTX exchange in November 2022.

By the time FTX went down, the crypto market was already months into a rout that also claimed hedge fund Three Arrows Capital and lender Celsius Network. But the fall of FTX, once one of the top crypto exchanges by trading volume, was even more damaging, with token prices stagnating as liquidity dried up.

Now with Bankman-Fried convicted of fraud, and the Binance exchange’s co-founder Changpeng Zhao awaiting sentencing for US sanctions violations and failing to implement anti-money laundering policies, crypto prices have moved higher as analysts see fewer looming risks to the industry.

ETF Inflows

Nine US spot Bitcoin exchange-traded funds debuted on Jan. 11, while the more than decade-old Grayscale Bitcoin Trust converted into an ETF the same day. The accessibility of ETFs promises to widen the investor base for the token. The new funds have attracted about $9 billion so far, while a more than $6 billion outflow from the Grayscale fund since its conversion seems to be losing steam.

“Enthusiast buyers bring in more enthusiast buyers pushing prices further up,” said Fadi Aboualfa, head of research at crypto-custodian Copper Technologies Ltd. “The cryptocurrency has momentum on the back of several green weeks and has a large chance of going up further when markets see weekly movements upwards of 10% (as we saw last week).”

Optimism about the quadrennial Bitcoin halving due in April is also filtering across crypto. Halving cuts the quantity of Bitcoin that miners receive for operating the powerful computers that verify transactions on the blockchain. The event is often viewed a support for prices based on historical precedent.

Aside from ETF inflows, sentiment toward Bitcoin is “typically positive” during the Lunar New Year holidays that are currently underway in Asia, Fundstrat Global Advisors wrote in a note.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin hovers near one-month high on ETF inflows, looming halving

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin held near the highest level in a month, supported by signs of steady inflows into a batch of US funds for the token as well as growing attention on the so-called halving due in April.

The largest digital asset was steady at $45,330 as of 9:33 am in Singapore on Friday after advancing about 7% in 2024. Smaller tokens such as Ether and Cardano also traded in narrow ranges.

Nine US spot Bitcoin exchange-traded funds debuted on Jan. 11, while the more than decade-old Grayscale Bitcoin Trust converted into an ETF the same day. The accessibility of ETFs promises to widen the investor base for the token. The new funds have attracted a net $8 billion so far, while a $6 billion outflow from the Grayscale fund since its conversion is now losing steam.

“Bitcoin appears set to resume its march up after the Grayscale outflows finally tapered off,” said Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets. The “halving narrative” will gather momentum, potentially taking Bitcoin past $50,000 in the next few weeks, she said.

The quadrennial halving cuts the quantity of Bitcoin that miners receive for operating power-hungry computers that secure the network by solving complex puzzles. Halving is key to capping the supply of Bitcoin at 21 million tokens. Rewards drop to 3.125 coins per block from 6.25 coins in the upcoming event.

Previous halving events “preceded strong bull runs,” a team including DBS Bank Ltd. Chief Economist Taimur Baig wrote in a note. “There is a simple economic reason why prices should rise. As the reward for mining decreases, the price for mining output (namely Bitcoin) must increase to compensate and not trigger a withdrawal of computational resources by miners,” the team said.

Bitcoin remains about $24,000 below the record high the token hit in 2021, during a pandemic-era bull run oiled by easy money.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin rises to highest level in 21 months on ETF approval hope

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin surpassed $45,000 for the first time in nearly two years as anticipation of an approval of an exchange-traded fund investing directly in the biggest token intensified.

The cryptocurrency jumped as much as 4% to its highest level since April 6, 2022 and traded at $44,844 as of 9:45am. Singapore time. Other tokens also advanced with Ether, the second biggest, rising as much as 2.6%.

Bitcoin has risen over 15% since the start of December as a Jan. 10 deadline for the US Securities and Exchange Commission to give its blessing for a spot ETF Bitcoin draws closer.

There’s a fear of missing out among some traders in the US and Europe ahead of the looming approval and investors have started “buying on January 1, first thing New Year’s morning,” said Hayden Hughes, co-founder of social-trading platform Alpha Impact.

Traders are expecting Bitcoin to touch $50,000 soon, riding on the spot ETF optimism.

Bitcoin’s resurgence in the last 12 months has also been driven by a broader risk-on sentiment fueled by expectations of declining interest rates in the US. The rally has partially repaired the damage from a precipitous 2022 crash that reverberated around the crypto industry. The token remains below its 2021 pandemic-era record of almost $69,000.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Binance among 9 offshore crypto platforms red-flagged for allegedly flouting PMLA norms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s Financial Intelligence Unit India has raised red flags against nine offshore Virtual Digital Assets (VDA) service providers for allegedly flouting the Prevention of Money Laundering Act (PMLA) of 2002.

The nine entities, including Binance, the world’s largest cryptocurrency exchange, have been issued show cause notices under Section 13 of the PMLA, which empowers the authorities to take action for failing to comply with Section 12, which in turn deals with intentional undervaluation of transactions to evade taxes, or failure to furnish documents related to the transactions when asked.

The director of the Financial Intelligence Unit has written to the Ministry of Electronics and Information Technology, requesting that the URLs of these entities be blocked.

These nine entities were brought under the ambit of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) framework this March. Most of these entities or their subsidiaries are incorporated in tax havens such as Grand Cayman Islands, Seychelles, Switzerland, and others.

The entities under the scanner

1. Binance
– Binance Investments Co, Ltd (IIe Du Port, Mahe, Seychelles)
– Binance Holdings Limited – C/o International Corporation Services Ltd (Grand Cayman Islands)
– Binance (Switzerland)

2. Kucoin
– Mek Global Limited, c/o Vistra (Seychelles) Limited
– Phoenixfin Pte. Ltd (Singapore)

3. Huobi
– Sinohope Technology Holdings Ltd (Hong Kong)
– Huobi Global Limited (Singapore)

4. Kraken
Payward Trading Ltd – C/o SHRM Trustees (BVI) Limited (British Virgin Islands)

5. Gate.io
– Gate Technology Incorporated (Grand Cayman Islands)

6. Bittrex
– Bittrex Inc (Seattle, USA)

7. Bitstamp
– Bitstamp Europe S.A. (Luxembourg)
– Bitstamp UK Limited (London)
– Bitstamp Global Ltd (British Virgin Islands)
– Bitstamp USA, Inc (New York, USA)

8. MEXC Global
– MEXC Technology Limited (Colorado, USA)
– Mexc Global Foundation Ltd (Singapore)
– MEXC Global (Seychelles)

9. Bitfinex
– iFinex Inc (British Virgin Islands)
– BFXWW Inc.- c/o SHRM Trustees (BVI) Limited (British Virgin Islands)

VDA service providers operating in India — offshore and onshore —  must be registered with the Financial Intelligence Unit as Reporting Entities and comply with PMLA provisions, including reporting, record-keeping, and other requirements, regardless of a physical presence in India. There are 31 registered VDA service providers in India.

Binance has been in the news for all the wrong reasons — recently, a US court ordered Binance and its former CEO, Changpeng Zhao, to pay $2.7 billion and $150 million, respectively, after charges were brought about by the US Commodity Futures Trading Commission. Zhao was also ordered to remain in the US after he pleaded guilty to violating US anti-money laundering laws.

Meanwhile, platforms like CoinDCX, WazirX, KoinBX, and CoinSwitch are thriving in the Indian crypto space as of now.

Sarvanan Pandian, Founder and CEO of KoinBX, said, “Choose to navigate the uncertainties in the Indian crypto landscape with secure and compliant exchanges. I encourage users to place trust in credible sources.”

— With inputs from Timsy Jaipuria

Also read: Anti-money laundering, unlicensed operation, and sanctions violations — All charges Binance has pleaded guilty to

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bitcoin’s 2023 rally wobbles in sudden 7.5% drop toward $40,000

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bitcoin delivered another bout of its notorious volatility in a sharp tumble toward $40,000 amid a broader crypto selloff.

The largest token sank as much as 7.5% to $40,521 before paring some of the losses to trade 4% lower at $42,095 as of 11:12 a.m. in Singapore on Monday.

Smaller tokens like Ether, XRP, Polkadot and Avalanche also fell. A gauge of the largest 100 digital assets shed about 4%, the largest drop since Nov. 22.

Bitcoin has been on a tear this year on expectations that regulators will allow the first US spot Bitcoin exchange-traded funds, widening the potential base of crypto investors. Bets that the Federal Reserve will cut interest rates next year also encouraged a rally in virtual currencies.

“Market leverage had risen materially,” said Sydney-based Richard Galvin, co-founder at Digital Asset Capital Management. “The current fall looks like a market deleveraging as opposed to any fundamental news catalyst.”

Investors are also braced this week for US inflation data and the Fed’s final policy meeting of 2023, both of which could test aggressive wagers on rate cuts.

“It makes sense to see some profit taking,” said Tony Sycamore, a market analyst at IG Australia Pty. He expects falls toward the $40,000 to $37,500 range to be “well-supported” by dip buyers.

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Bitcoin has jumped more than 150% this year, energising a wider digital-asset recovery from last year’s rout. But the token remains well below its 2021 pandemic-era record high of nearly $69,000.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Binance to pay record $4.3 billion fine for breaking US anti-money laundering laws, loses CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Binance Holdings Ltd and its Chief Executive Officer Changpeng Zhao pleaded guilty to anti-money laundering and US sanctions violations under a sweeping settlement with the US that allows the cryptocurrency exchange to continue operating.

Binance will pay $4.3 billion in one of the largest corporate agreements in US history. Zhao will pay a $50 million fine under a deal that requires him to step down as CEO. Zhao pleaded guilty Tuesday to violating the Bank Secrecy Act in federal court in Seattle. The deal, which includes the Justice Department, Treasury Department and the Commodity Futures Trading Commission, ends a years-long investigation into the exchange.

Binance, which admitted that it allowed transactions with Hamas and other terrorist groups on the platform, was charged with three counts, including anti-money laundering, operating an unlicensed money transmitting business and violating US sanctions. The exchange is paying a criminal fine of $1.8 billion and forfeiting $2.5 billion, according to court filings unsealed Tuesday.

Zhao faces as many as 10 years in prison but is expected to get no more than 18 months under a plea deal that appears to have saved him from the harsh penalties that other prominent crypto criminals have faced. The Justice Department hasn’t decided yet what length of a prison term they will seek for him.

Binance’s violations included failure to prevent and report suspicious transactions with terrorists, including Hamas’ Al-Qassam Brigades, Palestinian Islamic Jihad, Al Qaeda, and the Islamic State of Iraq and Syria, according to the Treasury Department. The announcement comes as Israel and Hamas have been embroiled in a war that began Oct. 7.

Binance also allowed at least 1.1 million transactions, worth more than $898 million, on its platform between customers in US and Iran, according to the court filing.

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it’s paying one of the largest corporate penalties in U.S. history,” Attorney General Merrick Garland said in a press release.

Money from the fine will be split among DOJ, CFTC and other agencies. It includes $3.4 billion to the Treasury Department’s Financial Crimes Enforcement Network and $968 million to its Office of Foreign Assets Control over Bank Secrecy Act and sanctions violations.

New CEO

BNB, a cryptocurrency tied to the Binance ecosystem, slipped about 5.2% following the news. The token had hit a five-month high earlier in the day on the news that the DOJ would soon confirm its settlement with the exchange.

“Binance turned a blind eye to its legal obligations in the pursuit of profit,” Treasury Secretary Janet Yellen said in a press release. “Its willful failures allowed money to flow to terrorists, cybercriminals and child abusers through its platform.”

The settlement negotiated between the two sides will resolve all allegations of criminal wrongdoing. Bloomberg News reported the settlement on Monday. Garland and Yellen held a press conference Tuesday to announce details of the deal.

As part of his plea deal with the government, Zhao, who has a net worth of $23 billion according to Bloomberg’s Billionaires Index, has stepped down as Binance CEO and can’t be involved in managing the company for three years. Richard Teng will succeed Zhao as CEO.

The company has also agreed to enhance its compliance program and appoint an independent monitor for three years. Binance’s multibillion dollar fine reflects a 20% discount for “partial cooperation” with the investigation, the agreement states.

In a blog post Tuesday, the company acknowledged that it did not have proper compliance controls in its early launch, but said the settlement didn’t include any allegations that Binance misappropriated user funds or engaged in market manipulation.

VIP Customers

The Justice Department accused the company — as well as top executives, including Zhao — of taking steps to conceal that it was dodging US laws intended to stem the flow of dirty money around the world. The filing states that from about August 2017 until October 2022, Binance and Zhao were involved in a “deliberate and calculated effort” to profit from the US market without implementing controls required by law.

Binance “chose not to comply with US legal and regulatory requirements because it determined that doing so would limit its ability to attract and maintain US users,” according to the charging document.

Binance created loopholes that allowed US-based VIP customers to trade on the international exchange through offshore entities. The government’s case relied on internal documents, chats and details of phone calls to show how Binance helped VIP customers circumvent IP address blocking.

These strategies, the government claimed, allowed US-based VIP users to carry out virtual currency transactions “equivalent to billions of US dollars per day.” Acting on instruction from Zhao and other senior management, employees encouraged the VIPs to conceal their US connections, including by creating new accounts.

Zhao, according to the government’s court filings, discussed strategies to keep the market makers on Binance.com to reduce “our own losses” and to have “US supervision agencies not cause us any troubles.”

Zhao was well aware of the presence of US customers on the Binance.com exchange. In a chat in 2019, he wrote that if Binance blocked US customers from day one “Binance will not be as big as we are today.”

A year later, US users still made up 16% of total users on Binance, more than any other country. Binance removed the US label for user location and recategorized it as “UNKWN.”

Zhao wrote that it was “better to ask for forgiveness than permission” and described the situation as a “grey zone.”

CZ in Court

Zhao wore a dark suit and light blue tie, and spent most of the hearing seated with his hands clasped. Judge Brian Tsuchida ruled Zhao would be released and was free to return to his home in the United Arab Emirates while awaiting sentencing.

“I want to close the issue, I want to take responsibility and close this chapter of my life,” Zhao told the court during the hearing. Zhao said he was “a little bit scared” to come to the US to face his plea, but said he was reassured by the court’s thoroughness. “I will return.”

Zhao’s bond was set at $175 million, after his lawyers said he would be prepared to put up that amount to secure his release. Lawyers for the government, who had asked that Zhao be ordered to stay in the country because the US lacks an extradition treaty with the UAE, said they would appeal the release terms.

As part of the release, Zhao’s sister also put up a California home, which his lawyers said was valued at more than $5 million, and two unnamed guarantors committed a total of $350,000.

Zhao faces a maximum sentence of 10 years and fines up to $500,000, plus any profits he made from the alleged scheme. His lawyers said in court that his sentencing will be delayed by 6 months. Zhao’s agreement includes a waiver of his right to appeal, provided that his sentence doesn’t exceed 18 months, judge Tsuchida said during the plea hearing.

Crypto Crackdown

The resolution against the world’s largest cryptocurrency exchange and its top leader represents one of the largest penalties imposed within the cryptocurrency industry, which has been facing withering scrutiny from the Justice Department, other government agencies and lawmakers.

Binance, which exploded onto the crypto scene in 2017 and almost immediately took on and surpassed larger rivals, saw its market share surge to more than 60% worldwide after the fall of FTX in November 2022. Since then, its combined market share for spot crypto and derivatives has declined to less than 44% this month, according to researcher CCData.

The Justice Department recently prosecuted FTX co-founder Sam Bankman-Fried in New York for allegedly orchestrating a multibillion-dollar misappropriation of customer funds that led to the cryptocurrency exchange’s collapse. Bankman-Fried was convicted of fraud following a high-profile criminal trial.

Both the CFTC and Securities and Exchange Commission sued Binance and Zhao earlier this year alleging a range of violations, including mishandling customer funds and allowing Americans to illegally access the platform. Tuesday’s settlement resolves the CFTC case but the SEC lawsuit is ongoing.

Zhao worked at Bloomberg LP, the parent company of Bloomberg News, from 2002 to 2005.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US is seeking more than $4 billion from Binance to end case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Justice Department is seeking more than $4 billion from Binance Holdings Ltd. as part of a proposed resolution of a years-long investigation into the world’s largest cryptocurrency exchange.

Negotiations between the Justice Department and Binance include the possibility that its founder Changpeng Zhao would face criminal charges in the US under an agreement to resolve the probe into alleged money laundering, bank fraud and sanctions violations, according to people familiar with the discussions.

Zhao, also known as “CZ,” is residing in the United Arab Emirates, which doesn’t have an extradition treaty with the US, but that doesn’t prevent him from coming voluntarily.

Binance didn’t respond to multiple emails and phone calls seeking comment. The Justice Department declined to comment.

An announcement could come as soon as the end of the month, though the situation remains fluid, according to the people, who asked not to be named discussing a confidential matter.

The BNB cryptocurrency, a token native to Binance and the BNB Chain blockchain that was created by the exchange, rose as much as 8.5% to $266.42 after Bloomberg reported the negotiations.

“A settlement with a monitoring provision in place could be a compromise that protects investors and allows Binance the option to evolve into a more institutional and compliant future direction,” said Matt Walsh, founding partner at crypto venture firm Castle Island Ventures.

The exact timing and structure of the proposed resolution and specific charges aren’t clear. However, Binance would likely be expected to pay more than $4 billion, which would be one of the largest-ever penalties in a criminal cryptocurrency case.

The investigation is being led by the criminal division’s money laundering and asset recovery section, along with the national security division and the US attorney’s office in Seattle.

Strike Balance

The agreement seeks to strike a balance that would allow Binance to continue operating, rather than risk a collapse that could cause negative fallout for markets and crypto holders, said three of the people.

Binance has sought to minimize its exposure in any settlement, including pushing for a deferred prosecution agreement, another person said.

If Binance and the DOJ agree on a deferred-prosecution-agreement, the Justice Department would file a criminal complaint against the company. The US would not go forward with a prosecution as long as the company meets prescribed conditions, which usually include paying a substantial penalty and agreeing to a detailed statement of facts outlining its wrongdoing. A process would be set up to monitor the company’s compliance.

With respect to possible sanctions violations, the Justice Department has been investigating Binance for allegedly aiding in the evasion of US sanctions against Iran and Russia, one of the people said. Binance has also been under scrutiny for whether it allowed transactions that helped finance Hamas.

The case is one of the largest investigations the Justice Department has ever conducted into a cryptocurrency company. A settlement would represent another historic resolution following the collapse of crypto exchange FTX, which resulted in the conviction of its founder Sam Bankman-Fried on fraud and conspiracy charges earlier this month.

While Justice Department officials have been pushing for a broad leadership change at the company, it isn’t clear if other Binance executives besides CZ would face charges in the case.

Binance has faced legal and regulatory action from other US agencies, as well as increased scrutiny from US lawmakers.

In June, the Securities and Exchange Commission filed a lawsuit accusing Binance and Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules.

Binance.US Unit

The lawsuit effectively crippled Binance’s US unit. Brian Shroder, chief executive officer of Binance.US, left the company in September amid another round of job cuts at the struggling crypto platform. The company eliminated about one third of its workforce, or more than 100 positions. Trading volumes on Binance.US have slowed to a trickle after the exchange lost its banking support and suspended US dollar deposits.

Earlier: Binance.US CEO Departs, Crypto Platform Cuts Third of Staff

The Commodity Futures Trading Commission in March alleged that Binance and Zhao routinely broke US derivatives rules as the firm grew to be the world’s largest digital-asset trading platform. Binance should have registered with the agency years ago and continues to violate the CFTC’s rules, the regulator said at the time.

Binance has contested the lawsuits and said it actively cooperated with the regulators’ probes and was disappointed by the enforcement actions. In a March statement, CZ said the CFTC complaint “appears to contain an incomplete recitation of facts” and that Binance doesn’t agree with how many of the issues are characterized. The company called the SEC filing an attempt by the agency to regulate “with the blunt weapons of enforcement and litigation rather than the thoughtful, nuanced approach demanded by this dynamic and complex technology.”

CZ worked at Bloomberg LP, the parent company of Bloomberg News, from 2002 to 2005.

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RBI Governor on Crypto | ‘How will you regulate it, whom will you regulate, what will you regulate?’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday (October 31) said cryptocurrencies are a serious threat to financial stability for all countries, especially for emerging market economies.

The RBI governor’s message centred on the necessity to view cryptocurrencies within the context of macroeconomic stability. “Cryptocurrencies present a serious financial stability risk that must be properly addressed,” he said, while speaking at an event.

“How will you regulate it, whom will you regulate, and what will you regulate?” he asked those tasked with regulating this burgeoning industry. He referred to a recent International Monetary Fund (IMF) paper, which acknowledged the need for countries to consider imposing additional restrictions on cryptocurrencies as and when required.

Das also expressed his scepticism about the larger purpose served by cryptocurrencies. He asserted, “I have yet to come across any credible explanation of what larger purpose cryptocurrencies serve.” In the same vein, he questioned, “What can cryptos do that central bank digital currencies (CBDCs) cannot do?” The implication being that governments and central banks worldwide may not be entirely comfortable with the idea of private currencies.

He made it clear that these fundamental issues need to be comprehensively understood before embarking on any regulatory framework for cryptocurrencies. He said, “The whole issue has to be carefully addressed.” He assured the audience that the RBI’s intent is not to stifle innovation, rather, “all innovations must be supported and promoted if they serve a public good,” he said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dollar dips ahead of key US data, bitcoin soars on ETF bets

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The dollar softened against a basket of currencies on Tuesday, mirroring a dip in Treasuries yields as investors awaited key U.S. economic data before the Federal Reserve’s monetary policy meeting next week.

The dollar index last sat around 105.57, having lost over 0.5% in the previous session as U.S. Treasury yields tumbled.

The greenback found support last week after Fed Chair Jerome Powell said U.S. economic strength might warrant tighter financial conditions, which pushed the benchmark 10-year yield above 5% to its highest since July 2007.

Bitcoin returned the market spotlight with the virtual currency soaring on speculation that the United States could soon approve a bitcoin exchange-traded fund.

Market attention now turns to some of the last bits of U.S. economic data before the Fed’s meeting on Oct. 31 – Nov. 1, with the flash purchasing managers’ index (PMI) out later on Tuesday and gross domestic product due on Thursday.

The PMI data could set the market expectations ahead of the GDP report, said Matt Simpson, senior market analyst at City Index.

“If the data leans far enough one way it could prompt a strong dollar rally or breakdown with the Fed in a blackout period,” he said, referring to the period before the policy meeting in which limits are placed on public communications from central bank officials.

The Fed is expected to hold rates at its meeting next week.

The European Central Bank is also expected to leave interest rates untouched at their meeting on Thursday, after raising its key interest rates 25 basis points in September.

The euro was mostly flat at $1.0665, holding gains against the dollar on Monday.

Meanwhile, the dollar’s retreat gave the battered yen some slight relief. The Japanese currency had hit the sensitive 150-level both on Friday and Monday and was last flat against the greenback at 149.77.

Traders see the 150 threshold as a possible line-in-the-sand for Japanese authorities to intervene in the currency market.

However, the data out of the United States this week could have the yen inching back into the danger zone if it comes in strong.

“The yen will be particularly sensitive to hot U.S. data, especially if it causes Treasuries to blow through what’s looking like a key resistance level of 5% or so,” said Kyle Rodda, senior financial market analyst at Capital.com.

In cryptocurrency markets, bitcoin leapt as much as 14% to a 2-1/2 year high of $34,283.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Online fraud against US citizen: Cryptocurrency worth $930,000 seized by CBI from Ahmedabad-based man

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The CBI has seized cryptocurrency worth more than $930,000 (around Rs 7.7 crore) from an Ahmedabad-based man who allegedly cheated a US-citizen posing as a senior executive of a multi-national company’s fraud department, officials said.  Based on inputs from the Federal Bureau of Investigation (FBI) of the United States, the CBI filed an FIR against Ramavat Shaishav, who allegedly contacted the US citizen over the phone and introduced himself as ”James Carlson” from the fraud department of Amazon, they said.

During searches, the CBI found 28 Bitcoin, 55 Ethereum, 25,572 Ripple and 77 USDT in Shaishav’s e-wallet. These were transferred to the government’s wallet at the time of the seizure, the officials said.  He allegedly convinced the victim that his account on Amazon was being accessed by unscrupulous elements, and that his social security was being used from four different states to open accounts on the e-commerce platform.  ”It was also alleged that the accused induced the victim to withdraw cash from his bank accounts and deposit the same in Bitcoin in the RockitCoin ATM Wallet, and also shared a QR code falsely informing him (the victim) that the same was opened by the US Treasury for him,” the Central Bureau of Investigation’s (CBI) spokesperson said.

It is alleged that to gain the victim’s trust, Shaishav e-mailed a forged letter, dated September 20, 2022, claiming it was issued by the US’ Federal Trade Commission. ”In pursuance of the said inducement, the victim allegedly withdrew an amount of USD 130,000 from his bank accounts on different dates during the period August 30, 2022, to September 9, 2022, and deposited the same in the Bitcoin address provided by the accused,” the official said.

This amount was allegedly misappropriated by Shaishav.  ”Searches were conducted at the premises of the accused in Ahmedabad which led to the recovery and seizure of cryptocurrencies viz, Bitcoin, Ethereum, Ripple, USDT, etc. worth USD 939,000 (approx) from the crypto wallets of the accused, and incriminating material,” the spokesperson said.

The role of two accomplices of Shaishav, who are also based in Ahmedabad, has surfaced. The CBI also searched their premises and it leading to the seizure of mobile phones, laptops containing incriminating material and other digital devices.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow