US Secret Service has Confiscated More than $102 Million in Crypto since 2015

Jenson Nunez
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US Secret Service has Confiscated More than $102 Million in Crypto since 2015

The secret services go beyond shielding the president and investigate cryptocurrency-related crimes by closely monitoring the market’s behavior.

The US Secret Service, a federal entity under the Department of Homeland Security, has confiscated more than $102 million in criminal cases.

According to agency data highlighted by CNBC, the seizure took effect in the last seven years, from 254 investigations linked to cyber fraud. Known primarily for its role in shielding the US president and high-ranking officials, the Secret Service is an agency that also deals with the prevention and investigation of counterfeit funds.

In an interview led by CNBC, Deputy Director of the Secret Service Bureau of Investigations David Smith explained that analysts and other representatives are actively monitoring the flow of digital assets like Bitcoin, an activity akin to old-fashioned surveillance.

Once a transaction gets made by one person and another person, which goes into the blockchain, the secret service can follow that email address or wallet address and track it through the blockchain.

Secret Service Follows the Bitcoin Market Behavior

During the interview, the deputy director pointed out various cases of financial investigations that have led to the confiscation of digital assets. One of the cases was an investigation by the Romanian National Police that deceived at least 900 people from the US in a scheme that included fake online luxury goods auction ads.

According to the federal agency, fraudsters involved in that scheme turned to digital assets to launder the funds extracted from victims. Other cases included ransomware attacks on US companies commanded by Russian and North Korean attackers who demanded Bitcoin payments as ransom.

The agent highlighted that in many of these cases, the criminals focus on making efforts to obfuscate their activities with digital currencies by sending the funds to different addresses to make it hard to follow any trace of the illegal funds.

Once the Secret Service identifies an unlawful activity, it works to research deeper into those financial operations and deconstruct them.

On the other hand, the representative expressed that one of the elements that can make tracking activity hard for agents is that digital assets migrate funds faster than the traditional format. However, Smith realized that such a feature could make digital currencies a more attractive item to criminals and users.

Secret Service analysts have been working on strategies to refine the tracking of digital assets involved in illegal activity. They have discovered that criminals frequently operate with Bitcoin to make trades with stable coins to save themselves from price drops.

These criminals want to circumvent some market volatility linked to these relevant cryptocurrencies.

US Government Pays More Attention to Crypto

The Secret Service is not the only agency in the US making crypto confiscations from criminal investigations. The amount of funds confiscated by the agency since 2015 seems relatively small compared to other federal entities.

According to a November report, 93% of all confiscations achieved by the IRS Criminal Investigations (CI) team involved digital currencies like Bitcoin. The amount has been increasing more and more recently.

Smith’s recent reports are the latest indicator that US government agencies are making more and more efforts within the crypto environment. A few weeks ago, US President Joe Biden released an order that marked a first step in setting up a national rule intended for cryptocurrencies.

By: Jenson Nuñez

Political Parties in Ireland will get Prohibited from Accepting Digital Assets

Jenson Nunez
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Political Parties in Ireland will get Prohibited from Accepting Digital Assets

The move was a strategy to mitigate concerns about Russian interference in the Irish elections.

According to an Irish media report, Crypto donations to political parties will get prohibited in Ireland. This ban is a strategy in new political integrity rules drafted over fears of Russian interference in Irish elections.

Local Government Minister Darragh O’Brien, who is leading the electoral reform, wrote to party leaders detailing the procedures to fight against possible foreign interference in the country’s democratic processes. He highlighted that the appalling invasion of Ukraine and the problematic war of disinformation enrich the most prominent threats to all democracies.

Also, strong policies on all foreign donations are getting implemented along with requirements for parties to bring a whole set of details of their property portfolios as part of a significant restructuring of electoral law.

According to the information, the cabinet agreed to the new policies to protect its democratic system given the growing threat of warfare via the internet aimed at free nations.

No Sanctions Evasion

According to the media, the procedures may get linked to the suspicion that digital currency donations were a tool to avoid international economic sanctions on most financial institutions connected to Russia and its allies. However, Coindesk highlighted that little evidence remains regarding this case.

The European Union confirmed in early March that economic punishments upon Russia also include activities related to crypto. But, despite such a set of bans, it is worth considering that international entities such as the International Monetary Fund have already warned that Russia could be applying digital assets as a tool to circumvent sanctions.

Sanctions Also Included Cryptocurrencies

The European bloc also revealed the expansion of existing financial restrictions in Belarus to mirror those already applied in Russia. These punishments include restrictions on providing SWIFT interbank res services to three Belarusian banks and their subsidiaries, a ban on dealings and transactions with the Central Bank of Belarus, and a ban on listing shares of Belarusian state entities on EU markets.

The statement also confirmed the common understanding that loans and credits to Russia could be provided by any means, including cryptocurrencies. The European Commission highlighted that clarifying the classification to include digital currencies was a step to guarantee the proper application of the current measures.

EU lawmakers and officials had shown concerns that digital assets could serve as an alternative method to migrate funds in and out of Russia, thus allowing it to avoid the imposed sanctions. Facing this possibility, members had been debating the extension of sanctions to the crypto environment.

By: Jenson Nuñez

What Allows Young Argentines to Invest in BTC Despite Growing Inflation

Alexander Salazar
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What Allows Young Argentines to Invest in BTC Despite Growing Inflation

Since April, the minimum wage for workers without family responsibilities in Argentina has been ARS 38,940. The average cost of renting a two-room apartment in Buenos Aires is ARS 53,450.

A large part of the population in Argentina and other Latin American countries finds it challenging to live on their work. Few Argentines earn more than the minimum wage needed, so young people seek cryptocurrencies like Bitcoin (BTC) to save or invest.

Since April, the minimum wage in Argentina has been ARS 38,940, the lowest remuneration for a worker without family responsibilities. That should allow him to pay for adequate food, decent housing, education, clothing, health care, transportation, recreation, and other necessities.

Breaking down the basic expenses that an Argentine has to cover for living, the basic food basket costs ARS 12,108. That figure increases every month due to the growing inflation of products in the South American country.

Concerning housing, ZonaProp indicates that the cost of renting a two-room apartment in Buenos Aires is ARS 53,450 on average. That value is slightly lower than in the north of Greater Buenos Aires (GBA), where it reaches ARS 54,498. It is also well above than in the west and south, where it is ARS 37,093.

Argentines Earn Less Money Than They Need to Live

The minimum wage in Argentina is not enough to pay for the basic food basket and the average rent for a two-room apartment. Citizens need to have an income higher than ARS 65,558 for those two expenses.

Even though a couple could afford that with two minimum wages, they would not have enough for anything else. In other words, they would not be able to pay for household services, transportation, clothing, health, education, recreation, and vacations.

Many people would think that most people earn more than the minimum wage, but that is not true. The latest INDEC report indicates that the average monthly income per person in Argentina is ARS 32,192. According to Mercado Libre, that figure is equivalent to the price of a pair of sneakers or a bicycle.

As the price of products and services has continued to rise exorbitantly, Argentines have lost reference values. For example, a barbecue for six people would cost around ARS 12,000, the same as the basic monthly food basket. Such a high cost has led citizens to lose that traditional custom.

Young Argentines Seek Bitcoin to Face Economic Problems

Due to the difficulty of living independently, young Argentines usually live with their parents in a house where they do not pay the rent. In that way, some can save or invest part of their earnings.

Exchanging the money for a hard currency is the only way to save money in Argentina and other Latin American countries. Some assets are better than others for maintaining their value than the Argentine peso, which drastically devalues over time. Examples of that are the US dollar and Bitcoin, the largest cryptocurrency in the market.

Data from the Central Bank taken by economist Nicolás Gadano indicate more US dollars in Argentina than in the United States. Citizens choose to store their savings in that currency despite the economic restrictions to buy it officially.

Argentines also stand out for buying Bitcoin to save or invest. According to Chainalysis, Argentina is among the ten countries with the highest adoption of cryptocurrencies worldwide. Citizens, mainly young people, consider that Bitcoin is more profitable than the US dollar.

By Alexander Salazar

The Central Bank of Russia Prefers the Digital Ruble over Bitcoin

Alexander Salazar
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The Central Bank of Russia Prefers the Digital Ruble over Bitcoin

The president of the Bank of Russia said that seven banks would join the tests with the digital ruble. The deputy governor of the institution noted that their reserves were running out, but they could enable payments with the CBDC by December.

The war between Russia and Ukraine has had severe economic consequences for the former. The Central Bank of the Eurasian country has advanced the development of its central bank digital currency (CBDC) or digital ruble. However, they disagree with regulating the use of Bitcoin as a payment method.

Olga Skorobogatova, the first deputy governor of the Bank of Russia, considers that they have to implement the digital ruble in the coming years.

The Russian official believes that they should accelerate the tests and reform some laws. News portal RBC reported that this would allow using the digital ruble sooner.

Skorobogatova announced that the government would begin to implement the Russian digital currency for paying for goods and services between September and December.

Elvira Nabiullina, the president of the Bank of Russia, told the State Duma that seven banks would join the tests with the digital ruble.

The director of the financial agency said that they began the tests with the banks in January 2022. She explained that five banks are participating, and seven more are completing improvements to join the process.

The sanctions against Russia due to the invasion of Ukraine seem to have accelerated the digital ruble project. Nabiullina recently stated that Russian reserves were running out and that the real economic crisis might break out before the third quarter of 2022.

The above restrictions aimed to prevent Russia from using Bitcoin and other cryptocurrencies to evade international punishment. The most recent sanctions with that objective emerged within the European Union.

The authorities of the Bank of Russia have made it clear that they do not want any relationship with decentralized cryptocurrencies like Bitcoin. Their opposition to the regulation project carried out by the Ministry of Finance could have contributed to their interest in accelerating the digital ruble.

The Bank of Russia Considers that Bitcoin Is Not Viable to Avoid Sanctions

In early April, the Bank of Russia expressed that it rejected using cryptocurrencies to avoid restrictions and considered it impossible.

The authorities of the financial agency believe that it would be impossible for Russian companies to transfer large amounts of money to cryptocurrencies. The European Union, the US, the UK, Japan, and Singapore have established surveillance measures to prevent the Russians from relying on cryptocurrencies.

The Bank of Russia also stated that many exchanges apply sanctions against Russian investors, blocking their funds. For example, Coinbase restricted over 25,000 addresses linked to Russian persons or entities they believed might be doing illicit activities.

Another obstacle to the adoption of Bitcoin is the Digital Financial Assets Act, which bans using cryptocurrencies as payment for goods and services. The Central Bank of Russia considers that changing that rule is unreasonable.

Those arguments are insufficient for parliamentarian Anton Gorelkin, who favors regulating the use of cryptocurrencies in Russia. Amid the conflict between Russia and Ukraine, he believes that Bitcoin can help the citizens affected by the economic sanctions.

By Alexander Salazar

Paolo Ardoino Believes that Tether Will Remain the Most Used Stablecoin

Alexander Salazar
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Paolo Ardoino Believes that Tether Will Remain the Most Used Stablecoin

Ardoino is not worried that another stablecoin may grow at an impressive rate, as Tether has regained momentum over the last month. The executive revealed that the Swiss city of Lugano would adopt BTC and USDT as de facto legal tender.

Paolo Ardoino, the CTO of Tether and Bitfinex, is confident that Tether (USDT) will remain the most widely used stablecoin. He made that prediction despite the rapid growth experienced by its competitors in the market.

The executive said that the trading volumes are unbelievably high compared to the other stablecoins. He highlighted that they are ten times higher even on a bad day.

Curiously, Paolo Ardoino expressed that he is not worried about the possibility of another stablecoin growing at an impressive rate. The developer recalled that Tether had regained momentum over the last 30 days.

Ardoino considers that the focus of Tether on people who have difficulty accessing financial services is one of its advantages.

The analyst thinks that a stablecoin should be an instrument of freedom, a solution, and a means to help everyone. He commented that it should not be a tool for banks or Wall Street but for people.

Paolo Ardoino Comments on Tether and Other Stablecoins

Paolo Ardoino recently pointed out that people see the stablecoin Tether as a reserve asset in countries like Turkey, Venezuela, and Argentina. He expressed that he was sad because it should serve as a means of exchange.

He considers that Bitcoin, DEXs, and CEXs are financial solutions for nearly 2 billion unbanked people worldwide.

Likewise, Ardoino said it is all fun and games if a stablecoin has a market capitalization of USD 5 billion or USD 10 billion. However, that may change as its market capitalization increases to levels never seen before.

TerraUSD (UST) is the third-largest stablecoin by market capitalization after Tether (USDT). However, the native stablecoin of the Terra network has grown significantly in a relatively short time. It went from USD 180 million in early 2021 to over USD 17 billion in market capitalization since April 18th.

Ardoino explained that a liquidation with an algorithmic stablecoin the size of UST still allows handling this market. However, that is different with a stablecoin having USD 80 billion or USD 100 billion of market capitalization like Tether, mainly backed by digital assets. He finds it hard to determine what may happen and whether there will be enough liquidity to support that cascade.

Ardoino Talks about the Plans of Lugano to Adopt Cryptocurrencies

The CTO of Tether and Bitfinex also revealed the adoption plans for the pro-crypto city of Lugano in the south of Switzerland. In March, that municipality announced it would adopt Bitcoin (BTC) and Tether (USDT) as de facto legal tender.

The city of Lugano would be one of the first to implement the payment with cryptocurrencies. Citizens and companies would be able to pay their annual taxes and all goods and services with crypto assets. The administration of Lugano understood that it would be crazy not to take advantage of the opportunity that cryptocurrencies offer.

By Alexander Salazar

The Price of Bitcoin Depends on the Behavior of Investors

Alexander Salazar
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The Price of Bitcoin Depends on the Behavior of Investors

There has been a high demand for Bitcoin in the current price zone and close to USD 60,000. Investors have kept their coin holdings in the long term, from before the maximum price.

The price of Bitcoin (BTC) has been dropping and rebounding steadily for several weeks. It has fluctuated between USD 33,000 and USD 45,000 since January. It has even oscillated in a more closed range, between USD 38,000 and USD 43,000 per unit.

An explanation is that most investors have their entry prices for the asset in those ranges, according to analytics firm Glassnode.

They state in their research that long-term holders have re-accumulated a large amount of coin supply between USD 38,000 and USD 45,000. That has been the primary price range of the current consolidation of the Bitcoin market.

The Glassnode charts show around 2 million BTC last bought or moved between USD 35,000 and USD 42,000. That represents over 10% of the 19 million BTC currently in circulation. Many Bitcoin users purchased their cryptocurrencies at a similar price in recent days. In other words, they could defend those prices as they have not reported millions in losses.

That figure turns that price zone into one of the most on-demand. A behavior by investors that Glassnode describes as insensitive to price changes complements it.

Much of the volume profile of January 22nd, around USD 33,000 per BTC, is still intact. Despite an additional 2.5 months of sideways consolidation, a large proportion of the market seems unwilling to spend and sell their holdings. They do it even though their coins are at a loss, suggesting that much of the supply of holders insensitive to prices is below USD 40,000.

The Outlook for Long-/Short Term Investors

As to whether short-/long-term investors are accumulating or selling BTC, Glassnode shows the trend of each market player regarding Bitcoin.

They estimate that almost everyone who bought after the all-time high of around USD 69,000 is a short-term buyer or owner. In other words, since there are more speculators than investors, they are more likely to spend their coins as a reaction to market volatility.

On the contrary, most investors that own BTC bought before the all-time high hold their positions in the long term. Then they would be less likely to sell or spend their coins, preferring to accumulate ahead of the upcoming macro bullish market.

The report also clarifies that the zone, close to USD 60,000, has been in high demand for buyers. Between USD 57,000 and USD 63,000, there is another accumulation zone with a large amount of Bitcoin traded at that price in recent months.

Beyond illustrating buying or selling zones, that data shows a relatively constant demand for BTC on the way up and down. That reading indicates that people want to accumulate BTC regardless of its price.

That behavior is a positive sign for the market in the long term, as more investors are unwilling to sell at a loss. That could mean that they still view the market optimistically and believe that the price will rise again.

By Alexander Salazar

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