The Miramax production company filed charges against Tarantino for copyright infringement and accused him of deliberate, premeditated, and short-term appropriation of money with its NFTs project.

Acclaimed film director Quentin Tarantino has gotten into some trouble after launching a collection of non-fungible tokens (NFTs) linked to his hit movie Pulp Fiction.

Tarantino announced his intentions to tokenize some raw scenes and unpublished material from his second feature film, which in 1994 brought him to fame in Hollywood after winning an Oscar for Best Screenplay. The NFT series, which would include handwritten scripts and exclusive Tarantino commentary, was reportedly scheduled to launch in December of this year.

Starring John Travolta and Uma Thurman, Pulp Fiction has become one of the most emblematic of cult cinema and got considered one of the most representative films of the director. Many fans worldwide got thrilled after the announcement of the launch of NFT; although not everyone seems excited about it.

Miramax Producer Sued Tarantino

The entertainment company Miramax has filed a lawsuit against the director, accusing him of copyright infringement. Miramax, which produced Pulp Fiction and many other Tarantino films, claims that it owns the rights to the classic edition of that film and maintains that there has been a breach of contract.

The lawsuit also highlights that the filmmaker has acted unethically by developing his NFT plans without notifying the company.

Miramax attorney Bart Williams noted in a letter filed Nov. 16 in the Central District of California, which got quoted by news outlets that

this group decided to willfully ignore the agreement signed by Quentin instead of following the legal and ethical approach of simply communicating with Miramax about their proposed ideas.

Director did not Stop His NFT Project

Miramax attorneys have sent the director and his team a cease and desist letter, seeking to block the sale. However, this does not seem to have stopped Tarantino from going ahead with his plans.

On the other hand, the lawyers that defend Tarantino claim that the filmmaker retained the right to launch his original script in the Miramax contract. The lawyers said the director is currently exercising his legal rights through the sale of NFT.

 In response, the production company argued that the NFTs is a one-time sale and do not amount to publishing a script.

The attorneys noted that the auction interfered with some of the entertainment giant’s plans to enter the NFT space.  According to the lawyers, Miramax has the necessary rights to develop, market, and sell NFTs related to its library of films.

However, now the matter seems to have prompted a heated discussion about copyright and NFT property. According to some experts, the lawsuit could challenge some principles of contract law. On the other hand, and according to the defenders of the ecosystem, this new discussion highlighted how vital is ownership for artists.

By: Jenson Nuñez

The US authorities sell cryptocurrencies worth $ 56 million to compensate the victims of the BitConnect scam.

The department confirmed through a press release that the proceeds from the sale would become the first part of the compensation to victims of the fraud scheme in which investors in the US and globally lost more than $ 2 billion in Bitcoin.

The Justice Department noted that the cryptocurrency liquidation currently follows the most relevant recovery from fraud by the United States of America to date. In particular, a federal judge authorized the Department of Justice and the US Office of Attorneys for the Southern District of California to sell the seized cryptocurrency.

The DOJ highlighted that the government would now compensate the victims of the BitConnect scheme by selling the cryptocurrency and withholding the proceeds in US dollars.

The government would retain custody of seized earnings in cryptocurrency portfolios and intends to use these funds to provide restitution to victims according to a future restitution order by the court in sentencing.

The crypto got seized from BitConnect promoter Glenn Arcaro, who pleaded guilty to his role in the case. The currencies appeared in twelve portfolios that belonged to Arcaro, who earned more than $ 24 million in commissions and other payments.

Following his guilty plea in September, the sentence of Arcaros got scheduled on January 7, 2022, and would amount to a maximum of 10 years in prison.

The US Department of Justice (DOJ)  revealed this information in a report published on September 1, stating that Arcaro assumed responsibility for the crimes perpetrated by BitConnet. He admitted his participation in parallel with other managers to take advantage of the growing interest in digital currencies among potential investors to introduce them into an international scam.

Arcaro Admitted Crimes Associated with BitConnect

Specifically, Arcaro admitted that he and others lied to investors about the alleged “BitConnect Trading Bot” and the “Volatility Software”, and were behind the main proposals raised by the company with which they promised a 1% daily return on invested capital.

The accused confessed that these products did not exist and that they were operating a Ponzi-type (Pyramid) scheme, in which the money allocated by new members went directly to pay older members.

Both Arcaro and his accomplices avoided the regular payment of taxes for the income they registered. This avoidance took place to keep their connections with BitConnect hidden and keep the illegal activities under the radar.

More About the Scam

The scam happened at the height of Bitcoin’s bull run in 2017. Victims got scammed after the company claimed to offer investors returns of up to 40% per month. The investment allegedly played a role in the generation of BitConnect’s so-called volatility software trading robot.

In September, the US Securities and Exchange Commission, SEC, sued BitConnect’s founders claiming that the company was an unincorporated organization that registered four companies in the UK. Currently, the companies are completely dissolved.

By: Jenson Nuñez

According to the Prime Minister of India, Narendra Modi, democratic nations should work together on the issue of cryptocurrencies.

Indian Prime Minister Narendra Modi issued a stern warning that Bitcoin poses a threat to younger generations, adopting a combative tone as his government prepares to propose regulatory laws for cryptocurrencies.

While speaking at an online cybersecurity symposium hosted by the Australian Institute for Strategic Policy, Prime Minister Modi described digital currencies in India that operate beyond the purview of government and the central bank as an area that requires constant oversight. The representative also stated that it is vital the parallel efforts with other nations about this situation.

Finbold points out that, like him, opponents of cryptocurrencies claim that they are essentially anonymous and unregulated, making them an ideal tool for drug traffickers, human smugglers, and money launderers. These reasons led to getting the regulations introduced in various countries and regions.

In 2018, India essentially prohibited cryptocurrency transactions, but the highest court reversed the restriction two years later. As a result, the industry experienced a resurgence, and the large and growing young population in the country responded to an ad campaign using Bollywood stars and cricket.

Popular Crypto in India

Cryptocurrencies are increasingly popular with Indian millennials nowadays, who prefer digital assets to traditional investment means like stock trading. Today, more than 100 million Indians have already adopted virtual currencies, putting the country behind the United States of America, Russia, and Nigeria in terms of users, according to a report that appeared last month from investment portal BrokerChooser.

Meanwhile, data from crypto exchanges indicates that investors in smaller cities are increasingly purchasing Bitcoin and other digital assets.

At the same time, more and more requests have been made for India to impose another ban. Still, Prime Minister Narendra Modi and his administration seem poised to deal with those requests and instead introduce regulations.

For his part, Shaktikanta Das, the governor of the Reserve Bank of India, keeps being critical about cryptocurrencies. He recently highlighted that he reiterates the serious concerns he has about crypto. At the same time, the central bank is considering establishing its official digital currency in the future.

Also, in a meeting this week between parliamentarians from that huge Asian nation and representatives of cryptocurrencies, he concluded that this industry must be regulated, removing the ban as an option on the table.

India and technology

At the same time, the central bank is considering issuing its official digital currency. More generally, Modi used his leadership to promote India as a global technology hub. Its “Digital India” scheme aims to modernize and harness technology in the subcontinent of 1.3 billion people.

Modi said emerging technologies like quantum computing offer a lot of opportunities. But, democracies must work together to invest together in research and development in the technology of the future.

The leader added that democracies also need to strengthen intelligence and operational cooperation in cybersecurity. Critics have accused Modi of leveraging technology to silence his opponents.

By: Jenson Nuñez

The CEO of Epic Games highlighted that there is currently a race between companies to appear with a massive number of users but the idea, in the end, is that this space gets characterized by decentralization.

The co-founder and CEO of Epic Games, Tim Sweeney, pointed out that although the metaverse represents the best opportunity for many companies and developers, there will be no company that will establish itself as the absolute owner of this new space.

Sweeney’s statements came to public light during a conference held in Seoul, South Korea. During that conference, the Chairman shared his opinion about the birth of this new space called the metaverse and the legal disputes he has with companies such as Apple and Google over the theme of the payments associated with the popular Battleroyale Fornite.

The race To Reach the Metaverse

Sweeney spoke out his opinions because of the constant competition between several companies in the industry that want to approach the metaverse with all their strength.

His comments also appeared due to a discussion about the ecosystem of products and services that would have their roots entirely in virtual reality, which would mean a new sector with great opportunities for all companies that aspire to grow in this space.

Many products, games, and services inspired by virtual reality are already a reality. The meta-verse would represent a sector almost as large as the Internet itself since every user would have total interaction with avatars and walk as if they were it was a parallel world.

In the race to reach the vast world of the meta-verse, Facebook has precisely been the company that has hit the table hard. Recently, the parent company of the social network and applications like WhatsApp and Instagram revealed a complete rebrand to be renamed Meta by announcing its intentions to go strongly to this new space.

The company also announced that it would hire some 10,000 employees to work in this new meta-verse, gathering enough workforce to advance efforts in the short term.

Opportunity for Cryptocurrencies and NFTs

Given that the meta-verse supposes a virtual reality, many companies anticipated that digital collectibles (NFTs) would have a fundamental role within this environment since their owners would have ownership over virtual elements, aesthetics, or useful tools in this new ecosystem.

On the other hand, there is the inevitable inclusion of cryptocurrencies and other digital assets showing exclusive features that will change the concept people had of money and value. In addition to the already popularly known coins, Facebook is also working on its wallet and has not ruled out plans to launch its crypto asset.

By: Jenson Nuñez

Citizens would have to pay 13% for each purchase of bitcoin and cryptocurrencies. Profits from speculative sales would get taxed at 15%.

In Costa Rica, purchasing bitcoin (BTC) or other cryptocurrencies could become a tax problem. This problem is because of the Costa Rican General Directorate of Taxation and their proposal to approve the gathering of at least 13% value-added tax. This amount would serve to purchase Bitcoin.

The government officials would also be providing a 15% tax for earnings with cryptocurrencies, which come to fruition when selling above the purchase prices on exchanges, according to local media La Nación.

Taxation, as the institution is commonly known, views cryptocurrencies as assets without physical representation. This appreciation of cryptocurrencies appeared because of a technical note made by the Central Bank of Costa Rica.

The entity went on the subject detailing that cryptocurrencies cannot get considered a currency in the legal sense because they do not comply with the characteristics of the legal tender coins.

In this regard, the general director of Taxation, Carlos Vargas, highlighted that if cryptocurrencies are assets, they should be subject to taxation like any other current asset.

Vargas added in an interview with the Costa Rican media that, so far, this possible resolution has only been on a discussion by the Union of Chambers and Associations of the Private Business Sector (Uccaep), which is an entity that brings together almost all economic interest groups in the country. Then it would now come to public consultation for the approval of this regulation.

Vargas showed more empathy regarding the possibility that Costa Ricans could start paying these taxes with their cryptocurrencies and said that Bitcoin is not a currency but an asset, not a tangible asset, but it is a good asset.

Bitcoin Regulation, Pending task in Costa Rica

The Costa Rican government’s relationship with bitcoin has been quite distant. Especially when compared to other countries in the Latin American region. More if it gets compared with El Salvador, whose adoption of cryptocurrency as legal tender took effect in September of this year.

In the eyes of Costa Ricans, it would be a positive move following in El Salvador’s footsteps. Although local authorities already gave no sign that they are even considering that scenario, a query from the firm Sherlock Communications determined in August of this year that the citizens of Costa Rica viewed bitcoin with good eyes.

On the other hand, the Central Bank’s president Rodrigo Cubero clarified and said they do not see the use of bitcoin to pay taxes as a viable activity. Meanwhile, according to his words, the institution he heads maintains a position of vigilant tolerance.

In addition, the regulatory issue took at a leisurely pace. Cubero himself said that the regulation of bitcoin would meet its approval at the right moment.

By: Jenson Nuñez

The IRS seized $ 3.5 billion worth of cryptocurrencies in 2021, a figure that represented 93% of all seized assets in the agency’s criminal investigations.

The Internal Revenue Service (IRS) of the United States of America, the federal agency in charge of tax collection and compliance with tax laws, revealed a report detailing the role the cryptocurrencies played in the cases investigated by that institution.

According to the report, 93% of all seizures led by said Criminal Investigations team include cryptocurrencies such as Bitcoin. In the last year, the IRS criminal unit seized various billions of dollars in Bitcoin and other digital currencies related to cases involving many criminal activities, such as wire fraud, money laundering, illegal narcotics, and even fiscal fraud.

Said seizure includes $ 1 billion stolen from Silk Road, an illicit online Bitcoin market that closed in 2013. As such, the investigation team seized cryptocurrencies worth a total of $ 3.5 billion during the fiscal year 2021.

Cybercrime Specialized Team

The IC division is in charge of compliance and investigation of financial crimes related to tax noncompliance in the United States of America. The office investigates crimes such as money laundering, currency violations, tax-related identity theft fraud, and terrorist financing crimes that, in some cases, may involve digital assets.

Jim Lee, head of the IRS division, said that when it comes to virtual currencies involved in financial investigations, they are the best trackers worldwide.

The federal agency assured in its report that, due to the latest technological advances in financial matters, the CI has committed to staying in the frontlines through significant investments that would help train employees in the latest tactics and techniques to be successful in a digital financial world.

Cryptocurrency-Related IRS Cases

The IRS document addressed some of the most vital digital asset-related seizures in the organization’s history, alleging that many of these findings are from the past year.

Sterlingov worked in a mixing service called Bitcoin Fog since 2011. During the time of its operation, Bitcoin Fog moved at least 1.2 million BTC or more, which, at the time, got valued at approximately $ 335 million.

The IRS mentioned that most of this seized cryptocurrency came from the dark web markets and had strong connections with illegal narcotics, computer fraud, identity theft, and abuse activities.

Another case that found resolution this year was Roger Nils-Jones Karlsson, who received a sentence of 15 years in prison for money laundering, securities fraud, and wire fraud.

Karlsson led an investment fraud program until his arrest in Thailand in June 2019. Karlsson seduced victims to purchase shares in the failed program called Eastern Metal Securities. On the other hand, the IRS highlighted that one of its victories in criminal investigations with cryptocurrencies came this year after the first sentence of a Bitcoin case with a tax component.

The case was the 9-year federal prison sentence of a former Microsoft employee who defrauded the company out of more than $ 10 million in BTC using a cryptocurrency mixer to hide taxable income.

By: Jenson Nuñez