Estonian Government approves the extradition of the HashFlare defendants. Terraform Labs files for protection under Chapter 11 of the Bankruptcy Law. Investors fear collapse and disappearance of Bitcoin, survey reveals. In Brazil, pre-candidate for mayor is arrested for alleged extortion related to cryptocurrencies. OKX suspends cryptocurrency mining services amid changes in the industry.
Ivan Turogin and Sergei Potapenko face 18 counts of conspiracy, wire fraud and conspiracy to commit money laundering in the United States. They are accused of raising $25 million from investors to establish a digital bank that would be called Polybius.
The Estonian government has collected evidence on detention conditions in the United States that indicates it could “ensure that the violation of people’s fundamental rights due to extradition is not disproportionate.”
This is the second time that the government has decided to extradite these men to the United States. The first decision was made on September 7; However, it was overturned by the Tallinn Circuit Court on November 29, due to the government’s failure to investigate detention conditions in the United States as an important factor in its decision.
Terraform Labs Files for Protection Under Chapter 11 of the Bankruptcy Law
According to court documents filed, Terraform Labs filed for bankruptcy protection under Chapter 11 in the United States. The company has assured that it will meet all financial obligations to employees and suppliers during the Chapter 11 case, without the need for additional financing. Additionally, Terraform Labs plans to continue expanding its Web3 offerings.
Investors Fear Collapse and Disappearance of Bitcoin, Survey Reveals
A survey by Deutsche Bank, the giant German bank, found that half of investors surveyed fear a collapse. The research reveals different perspectives on the future of Bitcoin (BTC).
According to the results, more than a third of respondents believe that the price of BTC will fall below $20,000 before 2025. Another group, even more pessimistic, expects the cryptocurrency to disappear completely in the coming years.
Likewise, 39% of respondents believe that Bitcoin will continue to exist in the coming years. The research also revealed that more than half of the participants are worried about the collapse of a major cryptocurrency in the next two years.
Not all respondents were pessimistic, a group still hopes that Bitcoin can recover in the coming months. 15% of participants estimate a possible price increase for Bitcoin, predicting values between $40,000 and $75,000 by the end of the year.
Scandal in Brazil: Pre-Candidate for Mayor Arrested for Alleged Extortion Related to Cryptocurrencies
The court of Vila Velha maintained the arrest of Thiago Oliveira do Nascimento, pre-candidate for mayor of the municipality, accused of extortion and money laundering with cryptocurrencies from an Indian millionaire. Supposedly, the candidate would have discovered an extramarital relationship between the Indian businessman and a Brazilian woman in 2015.
The arrest occurred on January 23 during operation Criptovet, carried out by the Special Action Group to Fight Organized Crime (GAECO). Investigations began in December 2023.
OKX Suspends Cryptocurrency Mining Services amid Industry Changes
OKX has discontinued its cryptocurrency mining pool and related services. According to the statement, existing users will retain access to the services until February 25, 2024, giving them time to adjust their mining operations accordingly.
On February 26, 2024, OKX will stop operations of its mining pool. Subsequently, the platform will suspend all mining-related services, marking the end of an era for many users who have relied on OKX for their crypto mining activities.
By Audy Castaneda
