Forsage founders charged for alleged $340m ‘Ponzi and pyramid scheme’
The US Justice Department have charged the four founders of Forsage for their roles in an alleged $340 million “global Ponzi and pyramid scheme.”
All founders of the decentralised finance crypto investment platform were charged with conspiracy to commit wire fraud and could face 20 years in jail if convicted.
The indictment alleged that the founders “aggressively promoted Forsage to the public through social media as a legitimate and lucrative business opportunity, but in reality, the defendants operated Forsage as a Ponzi and pyramid investment scheme,” the Justice Department said in a press release.
“While advancements in the virtual asset ecosystem bring new opportunities to investors, criminals are also finding new ways to orchestrate illicit schemes,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division.
BIS manager Carstens trash talks stablecoins, pushes for CBDC adoption
The general manager of the Bank for International Settlements threw shade at stablecoins during a Wednesday speech. Agustin Carstens accused stablecoins of lacking “an important part of the soul of money” due to their separateness from “institutional arrangements and social conventions.” Carstens allowed that stablecoins have taught many regulatory lessons, along with highlighting technological gaps in the financial system. Nonetheless, the BIS bigwig pressed the bank’s previously stated desire for nations to adopt central bank digital currencies, so-called CBDCs.
1.) Claims "victory" for fiat as the rate of debasement soars
— Sam Callahan (@samcallah) February 22, 2023
2.) Anticipates regulatory response from G20 leaders. This is the problem...unelected bankers influencing policy.
3.) Proposes a model of a unified blockchain where one central bank (the BIS) underpins trust in CBDCs pic.twitter.com/mXneGyk4sJ
Canada watchdog bans algorithmic stablecoins
On Wednesday, the Canadiana Securities Administrators banned algorithmic stablecoins as part of a wider overhaul of its crypto regulations. Citing “recent insolvencies involving several crypto asset trading platforms,” the CSA’s updated rules enforce a 30-day deadline for exchanges operating within the country to pre-register with the agency. The CSA will require all stablecoins on exchanges to be fiat-backed.
Apparently, feds in Canada came down on the provinces, who came down on securities regulators to enforce the law against crypto. And the pressure to the feds in Canada came from the feds in the US. Basically, Americans telling us what to do, which is 100% fine in capital markets.
— Christine Duhaime (@cduhaime) February 22, 2023
The $60 billion collapse of Terraform Labs’ TerraUSD algorithmic stablecoin last year is currently at the centre of an international manhunt. South Korean prosecutors and the Securities and Exchange Commission have both accused the company’s CEO Do Kwon for his role in the alleged multi-billion fraud.
Canadian Prime Minister Justin Trudeau has previously criticised his political rival Pierre Poilievre, slamming the Conservative Party leader for his “irresponsibility” in promoting cryptocurrencies to his followers.
EU’s anti-money laundering law revised to allow self-hosted wallets
Across the pond, EU DeFi users can breathe somewhat easier as it appears the European Parliament has laxened its views on self-custody. The preliminary text of EU’s forthcoming anti-money laundering legislation has been updated, modifying language which previously hinted at the abolition of private, anonymous wallets within the bloc. Anonymising protocols such as Tornado Cash, whose developer Alexey Pertsev remains in custody in the Netherlands, still face likely prohibition under the new rules.
NOW READ: US sends team to Brussels to study EU’s landmark crypto law amid SEC crackdown
Ethereum developers set Shanghai- Capella update to Feb 28
Ethereum developers have scheduled the launch of the network’s Shanghai-Capella upgrade for February 28. Shanghai-Capella is the most significant upgrade for the network since September′s implementation of The Merge, which saw Ethereum move to proof-of-stake consensus, significantly slashing its environmental impact. Most notably, the Shanghai-Capella upgrade allows Ethereum validators to unlock their staked Ether and earn rewards for the first time in the network’s history. Until Shanghai-Capella, validators’ funds will be locked alongside any rewards earned, as a way to ensure protocol health.
The unlocking of staked ETH has been a source of worry for some, who believe many validators will exit their positions among the upgrade’s implementation. Others remain optimistic that the upgrade will be a proof-of-concept of validators’ commitment to the protocol.
Dapper Labs lawsuit to move forward in court ruling, NFT world crosses fingers
In a ruling that ups the stakes in the NFT space’s fight against securitisation, a US district judge has allowed a lawsuit against NFT creator Dapper Labs to continue. Plaintiffs accuse Dapper Labs – whose Top Shot NFT project can be likened to digital basketball cards – of offering NFTs without properly registering them as securities. The allegations would set an industry-rocking precedent if the judge ruled NFTs as securities, forcing thousands of NFT projects to abide by an entirely new set of regulations.
Former Coinbase president joins startup MoonPay
Asiff Hirji, the former president of crypto giant Coinbase, has found a new position at crypto startup MoonPay. The former Coinbase executive was named president and COO of the startup, which aims to bring crypto products to mainstream consumers. MoonPay raised a whopping $555 million in 2022, achieving a $3.4 billion valuation.
Crypto payments platform MoonPay has hired former Coinbase president and COO Asiff Hirji as its president and COO. Hirji left Coinbase in 2019 and has since served as president of crypto lending platform Figure until he leaves in December 2022.
— 霏伊Faye (@shiqi84084285) February 23, 2023
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