Colombian Police Capture Criminals Who Stole Cryptocurrencies from Foreign Tourists

Audy Castañeda
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Colombian Police Capture Criminals Who Stole Cryptocurrencies from Foreign Tourists

Colombian authorities assured that the criminals have already been issued a detention order. The theft of digital assets could have occurred because citizens had a virtual wallet on their cell phones with assets worth 43 million dollars. This is the fourth case in Colombia that involves this type of robberies in 2023.

Medellín authorities captured a group of criminals who stole cryptocurrencies from citizens of the Dominican Republic. This is the first time that the Colombian police have managed to seize digital assets in an operation.

The police in Medellín, Colombia, managed to find the whereabouts of two Colombian women who stole money, cryptocurrencies and belongings of three citizens of the Dominican Republic. According to information shared by El País, the criminals were contacted by tourists through social networks.

Police Seized Cryptocurrencies Stolen During Operation

The gang had a modus operando to find their victims. First they contacted them through social networks, then they profiled them and identified their economic capacity as well as their operations in the cryptocurrency market.

During the encounters, the women supplied their victims with drinks with a substance to make them lose consciousness, and later be able to steal their belongings. The citizens of the Dominican Republic took the criminals to the place where they lived. Once there, the thieves managed to get hold of cell phone passwords, debit and credit cards.

“After 16 hours of unconsciousness, those affected woke up and noticed that they were missing clothes, watches, cash and their bank cards. The criminals made 21 purchases in commercial establishments, for a value close to $11 million.”

The Colombian authorities claimed to have found cash from seven different countries, including Kenyan shillings, Brazilian reals and Dominican pesos that correspond to the Dominican Republic.

In addition to recovering the stolen material assets, the investigators seized the cryptocurrencies that were obtained under the modality of temporary suspension of the asset. The theft of digital assets could have occurred because citizens had a virtual wallet on their cell phones with assets that had a value of $43 million.

“It is the first time, in the country, that a measure is taken to capture or seize digital currencies, in this case, Bitcoin, it is done by the Prosecutor’s Office and with this it is already the fourth case that leaves captures this year. Nine people have been captured, seven are women.”

Crimes in the Colombian Cryptocurrency Market

In Colombia, cryptocurrencies have given rise to different types of crimes. In fact, a few weeks ago, a group of Colombian citizens reported an alleged scam on a trading platform. The complaints ensure that Solain does not allow them to withdraw their money.

In May, another scam related to the crypto world was reported in Colombia. A married couple from Riosucio, Caldas, decided to invest a large sum of money in an alleged crypto asset business. The business turned out to be a millionaire cryptocurrency scam, which is currently operating in different countries.

The scam is linked to a company called Goarbit, which was mentioned several times at the end of 2022 for having taken its investors’ savings.

By Audy Castaneda

Bank of America Troubled Over $150 Million Fine, Another Bankruptcy in Sight?

Audy Castañeda
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Bank of America Troubled Over $150 Million Fine, Another Bankruptcy in Sight?

Bank of America (BoA) was fined $150 million by US regulators for double charging overdraft fees and opening unauthorized accounts. The US central bank assessed banks’ resilience to recession, but did not consider their ability to withstand real-world challenges.

America’s banking crisis is far from over, with some of the country’s biggest banks stuck in deep water. Bank of America has been in the spotlight recently for bond market paper losses, overcharging customers and opening doubtful accounts.

On July 11, it was reported that US financial regulators had fined Bank of America $150 million.

Bank of America, The Second Largest Bank in the United States

According to the New York Times, America’s second-largest bank has been charging double overdraft fees, withholding card benefits and opening unauthorized accounts.

Banking regulators, the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) fined the bank $150 million for what they called “junk fees.”

Better Banking Options tweeted the following on July 12:

“The Consumer Financial Protection Bureau just ordered Bank of America to pay $150 million in penalties to federal agencies and $100 to harmed consumers for their unethical business practices. This is typical form for the mega banks.”

Some customers reportedly paid overdraft fees multiple times for the same transaction. In addition, the bank secretly opened fake accounts in the clients’ names without their knowledge or consent, a widespread practice to meet sales goals.  

Wells Fargo underwent years of investigations by federal and state authorities, resulting in billions of dollars in fines for fake accounts. The bank was also found to be circumventing sign-up bonuses it promised customers for opening new card accounts.

Following the action, Bank of America will reimburse $80 million to customers affected by its malpractices. The director of the consumer bureau, Rohit Chopra, commented that “These practices are illegal and undermine customer trust. The CFPB will end these practices throughout the banking system.”

Bank of America was in the spotlight earlier this month when reports surfaced that it had more than $100 billion in paper losses from the bond market.

Inadequate Fed Stress Test

The bank, which manages $2.5 trillion in total assets, could be forced to sell these bonds at a loss if depositors want their money. This could lead to a situation similar to that of Silicon Valley Bank, which collapsed in March.

NYT Politics tweeted on July 12 that the BoA “secretly opened card accounts in customers’ names, double-charged overdraft fees and withheld promised perks from some of its credit card users, federal regulators said. It will repay customers more than $80 million.”

While BoA’s paper losses were higher, other big US banks were facing the same problem. JPMorgan has $37 billion in paper losses and Wells Fargo has $42 billion.

The investigation establishes that Citi and Morgan Stanley have lost a combined total of $34 billion.

In late June, the US central bank conducted a recession stress test on some of the country’s largest banks. According to the Washington Post, the Federal Reserve approved all of them, but did not assess the banks’ ability to withstand real-world challenges.

In addition, the Federal Reserve’s bank rescue fund (Bank Term Funding Program) is at an all-time high of more than 100 billion dollars. In March, the fund was set up to allow struggling lenders to borrow more money.

By Audy Castaneda

Grayscale Bitcoin Trust Premium Drops to 28% as SEC Tug of War Continues

Marina Meza
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Grayscale Bitcoin Trust Premium Drops to 28% as SEC Tug of War Continues

Grayscale Bitcoin Trust (GBTC) has been on an uncertain journey over the past year as cryptocurrency headwinds have fluctuated. This was the result of the uncertainty caused by the bankruptcy of Genesis Trading, a company under the same umbrella as Digital Currency Group (DCG), of which GBTC is a part.

Nevertheless, confidence has improved as the market moves away from this event and the discount begins to narrow.

Grayscale Bitcoin Trust Discount Up to 28%

The crypto winter of 2022 saw the Grayscale Bitcoin Trust discount to NAV widen in a matter of months. At one point, the discount had shifted to nearly 50%, meaning that at its highest premium, investors in the trust held BTC at a price 50% lower than the digital asset’s spot market price.

However, with BTC rallying through 2023 thus far, recovering almost 100% from its 2022 lows, GBTC has also been on a recovery curve. Recently, the discount has nearly halved in the space of six months.

According to YCharts data, the Grayscale Bitcoin Trust discount is 28.24% as of July 10. The performance of the GBTC over the years has led Grayscale to propose converting the trust into a spot Bitcoin ETF. Although the company presented arguments to support this measure, the United States Securities and Exchange Commission (SEC) has remained vehemently against this idea.

So far, Grayscale has filed twice to convert the GBTC into a Spot Bitcoin ETF and the regulator has rejected the filing twice. The second time, Grayscale sued the regulator after being rejected again in June 2022, and the company hasn’t looked back since.

Another Bold Move Against the SEC

With the June 2022 lawsuit still ongoing, Grayscale has taken another bold step and filed a letter with the DC Circuit calling on the SEC. On this occasion, the digital currency asset manager is challenging the regulator’s decision to approve leveraged Bitcoin ETFs but not spot Bitcoin ETFs.

On July 10, Grayscale tweeted that “our attorneys filed a letter with the DC Circuit highlighting the disparity between the SEC’s approval of a leveraged #bitcoin futures ETF while continuing to deny approval of spot bitcoin ETFs like $GBTC.”

Grayscale notes in its July 10 filing that although these leveraged ETFs are riskier compared to spot ETFs, the SEC has given them approval and rejected the latter.

In the letter, lead counsel Donald B. Verrilli Jr. highlighted that the Volatility Shares 2x Bitcoin Strategy ETF (BITX) that was approved by the SEC in June “exposes investors to an even riskier investment product than traditional exchange-traded bitcoin futures.” products (ETP)”.

The attorney referred to the SEC’s rejections of Spot BTC ETFs as “discriminatory.” However, Verrilli suggests that the regulator could fix this by allowing “proposed Bitcoin spot ETPs like Grayscale’s to start trading.”

Grayscale further tweeted that “To be clear, we’re not saying products like this shouldn’t exist. Instead, we are calling to attention that there’s no good reason to continue to deny approval of spot products while leveraged futures products are allowed to trade.”

Grayscale’s series of tweets conclude by asserting that their actions are motivated by the fact that “investors are eager for $BTC exposure with the protections of the ETF wrapper.”

By Marina Meza

US Sens Cynthia Lummis and Kirsten Gillibrand Propose Crypto Regulation

Audy Castañeda
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US Sens Cynthia Lummis and Kirsten Gillibrand Propose Crypto Regulation

Senators Cynthia Lummis and Kirsten Gillibrand will introduce a new bill today, aimed at clarifying cryptocurrency regulation in the United States. The revamped Lummis-Gillibrand Responsible Financial Innovation Act proposes to classify most cryptocurrencies as commodities. The legislation aims to mitigate investor losses from the collapse of the crypto industry, as well as enforce strict standards for the listing of new tokens.

The persistent ambiguity of crypto regulation in the United States is about to witness a defining moment. Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) prepare to introduce their revamped cryptocurrency regulation proposal.

The controversial bipartisan bill, known as the Lummis-Gillibrand Responsible Financial Innovation Act, seeks to close the regulatory gap underscoring the crypto industry in the United States.

The Lummis-Gillibrand Act: Regulatory Clarity

A widening dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the precise nature of cryptocurrencies has left companies in limbo. Both regulators are exercising their respective enforcement powers against cryptocurrency exchanges Coinbase and Binance.

The Lummis-Gillibrand Act aims to “provide responsible financial innovation and digital assets within the regulatory perimeter.” It designates most cryptos as commodities under the purview of the CFTC, in stark contrast to ongoing SEC enforcement actions.

The legislation affirms an attempt to prevent further turmoil in the cryptocurrency sector, which has seen a series of high-profile crashes that have led to substantial losses for investors in the past two years.

“This legislation is the most comprehensive proposal to date that provides robust consumer protections and appropriately addresses the current landscape surrounding crypto assets,” said Senator Lummis.

The proposed law would force crypto exchanges to store customer assets securely in third-party trusts. Therefore, by prohibiting “proprietary trading” or trading with their own funds on their own platform.

Cryptocurrency Exchanges Must Be Accountable

The US cryptocurrency regulation bill could also mark a regulatory tightening. The rigor would fall on the “material affiliates” of cryptocurrency exchanges. This follows allegations that FTX allegedly lent large sums of client funds to his company Alameda Research. It did so before a liquidity crisis triggered its downfall.

“It is critical to integrate digital assets into existing law and to harness the efficiency and transparency of this asset class while addressing risk… As this industry continues to grow, it is critical that Congress carefully crafts legislation that promotes innovation while protecting the consumer against bad actors,” said Senator Lummis

Additionally, the proposal aims to clamp down on the “remortgaging” of crypto assets. It effectively outlaws high-risk but profitable crypto services like staking. It also imposes stricter standards on new tokens before they are listed on exchanges.

The proposal will be announced today. Given this, a context of significant opposition to the chairman of the SEC, Gary Gensler, arises in the Republican-dominated House, which has already taken steps to reduce Gensler’s influence.

While passage of the US cryptocurrency regulation bill in its existing state or within the current Congress seems doubtful, it marks a significant initial step toward cultivating bipartisan legislation on this crucial issue.

By Audy Castaneda

Bitcoin Prediction: A Peek into the Future of Cryptocurrency, According to Robert Kiyosaki

Audy Castañeda
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Bitcoin Prediction: A Peek into the Future of Cryptocurrency, According to Robert Kiyosaki

Robert Kiyosaki’s prediction of Bitcoin reaching 120K in 2024 and its impact on the US dollar is explored.

Robert Kiyosaki, the author of “Rich Dad Poor Dad,” is known for his insightful comments on finance and investing. Kiyosaki recently made a prediction on Twitter that has caught the attention of the cryptocurrency community.

Kiyosaki, as other analysts have considered for months, has foreseen a “giant” economic meltdown and the possibility of a great depression on the horizon. And at that point, he pointed out last February, “faith in the US dollar, the counterfeit money, will be destroyed.”

It should be recalled that a few months ago the economic influencer, very active on Twitter with comments against the Federal Reserve and economic policies in the United States, referred to the overprinting of money by said entity as the origin of such debacle.

On July 11, via Twitter, Kiyosaki suggests that the BRICS nations (Brazil, Russia, India, China, and South Africa) will announce a gold-backed cryptocurrency on August 22, 2023, in Johannesburg, South Africa:

“August 22, 2023, in Johannesburg, South Africa, BRICS nations announce gold backed crypto. US $ will die. Trillions of US $ rush home. Inflation through the roof. Buy Gold, Silver. Bitcoin to $120k next year.”

US Dollar’s Future

Kiyosaki predicts that this announcement will lead to the death of the US dollar. According to him, trillions of US dollars will return home, causing runaway inflation.

This scenario, if it materializes, could have significant consequences for the global economy, as the US dollar is currently the world’s reserve currency.

In addition to his US dollar prediction, Kiyosaki also made a Bitcoin prediction. According to him, the price of BTC will reach 120K next year. This is a bold prediction, considering that the Bitcoin price has experienced significant volatility in recent years.

However, Kiyosaki is not the only one who believes in the potential of BTC. Many cryptocurrency and financial experts have also made optimistic predictions about the future of Bitcoin.

In his tweet, Kiyosaki also advises buying gold and silver. This underlines the importance of diversification in investments. Although Bitcoin and other cryptocurrencies can offer significant returns, they also come with a high level of risk.

Therefore, it is crucial to diversify investments as protection means against market volatility.

Impact of Kiyosaki’s Predictions and Current Market Situation

Kiyosaki’s predictions have generated discussion in the cryptocurrency community. Some agree with his views, while others are more skeptical. However, one thing is certain: his predictions are a reminder of the importance of being informed and prepared for possible changes in the financial market.

Currently, Bitcoin is trading at $30,500. Furthermore, BTC continues to dominate 50% of the cryptocurrency market. Meanwhile, the Fear & Greed Index sits in a neutral zone of 56 points. The inflation data for the United States, which will be released this Thursday, July 13, will be key to elucidating the future of Bitcoin in the short term.

To conclude, it is worth considering that Bitcoin price predictions are always uncertain and depend on a variety of factors, including market conditions, government regulations, and consumer and business adoption of Bitcoin.

By Audy Castaneda

New York Prosecutor Files Charges Against a Hacker for Exploitation of an Exchange

Audy Castañeda
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New York Prosecutor Files Charges Against a Hacker for Exploitation of an Exchange

The district attorney for the Southern District of New York detailed aggressive actions against a cryptocurrency scammer during a press conference. The alleged bad actor found weaknesses in an exchange’s smart contract and exploited them to mislead the exchange about the liquidity it had inserted. According to the NYPD, the scammer attempted to launder his millions of dollars in illicit proceeds through various methods.

As regulators and law enforcement around the world race to show how tough they are on cryptocurrency fraud and scams, Damian Williams, District Attorney for the Southern District of New York (SDNY), announced in a major bust.

In a clip posted to Twitter, Williams stated that his office had racked up a law enforcement first. Namely, the first charges against the bad actor behind a hack into a smart contract on a decentralized cryptocurrency exchange.

The SDNY District Attorney’s Indictment

SDNY’s indictment does not name the exchange, saying only that it launched overseas and runs on the Solana Blockchain. Williams said that Shakeeb Ahmed, “a senior security engineer at an international technology company,” defrauded exchange users out of around $9 million worth of cryptocurrency. Ahmed then allegedly laundered the stolen funds by swapping currencies, moving between Blockchains, and hiding money on remote exchanges.

However, none of these maneuvers was enough to evade Williams’ office and his law enforcement associates, the prosecutor said. Williams described his office as a leader in catching bad actors who misuse new technologies to commit what are, at heart, old types of fraud.

The SDNY indictment details not only Ahmed’s alleged misdeeds, but also ongoing vulnerabilities in cryptocurrency exchanges. According to the indictment, Ahmed in July 2022 was a senior security engineer at “a leading international technology company” that was not affiliated with the exchange that fell victim. Ahmed allegedly relied on his knowledge of reverse-engineering smart contracts and Blockchain audits to carry out the theft.

Scamming the Exchange

The unnamed exchange is a market maker that allows those who deposit cryptocurrency into their liquidity pools to set the price ranges for trading that money, according to the indictment.

Ahmed is said to have found a vulnerability on the exchange that allowed false price data to be inserted. On or about July 2, according to the indictment, Ahmed attacked. He misled the exchange by setting up “position” accounts that he disguised as “tick” accounts that purported to present legitimate data on how much liquidity his user had provided for a given price range.

The bad actor allegedly did this to trick the exchange’s smart contract so that he could receive millions of dollars in fees that he did not actually earn. Despite the false nature of the pricing data, the exchange failed to detect the fraud. Ahmed withdrew the alleged proceeds and laundered them.

Furthermore, Ahmed is said to have made use of “quick loans” from an unidentified crypto lender to add more liquidity, further deceive the exchange, and generate inflated fees for himself. The use of flash loans in crypto fraud is on the rise and was the subject of a recent DeFi report. In total, he accumulated $9 million in ill-gotten funds.

The indictment details a number of methods Ahmed allegedly used to cover his tracks. However, of the $9 million stolen, he still kept $1.5 million.

By Audy Castaneda

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