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Three members of Terraform Labs’ legal team have left the company, according to their Linkedin profiles that show their departure from the firm this month. The resignation of the company’s in-house litigation, regulatory, general, and corporate counsel members follow the project’s fallout last week as the blockchain’s native crypto assets dropped significantly in value.

Linkedin Profiles Show 3 Legal Counsel Members Ended Their Relationship With Terraform Labs in May 2022

The crypto community is once again throwing the spotlight on the Terra blockchain fiasco, as the project’s in-house legal team seems to have left the company Terraform Labs (TFL) unexpectedly. That’s according to three individual profiles on Linkedin that show Noah Axler, Lawrence Florio, and Marc Goldich left in May. Terra was once a leading multi-billion-dollar project, and TFL raised millions from prominent investors. An in-house lawyer or legal team is common among blockchain projects dealing with global regulators.

Axler’s Linkedin profile indicates that his title was “chief litigation and regulatory counsel” for TFL. He worked full-time for TFL, between January of this year and this month, or a total of five months. Goldich’s Linkedin profile explains that his title was “general counsel” and he worked for TFL for ten months. Florio was dubbed TFL’s “chief corporate counsel” and he worked from January to May as well.

The news rattled the crypto community and it became a trending conversation on social media and crypto-related forums. Bitcoin advocate Stacy Herbert tweeted about the latest Terra situation on Tuesday. “Terraform Labs legal team resigns,” Herbert said. “Nothing they can do when the CEO wouldn’t stop emailing whales with ridiculous ‘rescue’ plans and then tweeting about those proposals as if they were a done deal (they were nowhere near).”

Axler’s and Goldich’s profiles further show the duo worked for the blockchain platform Lawcoin. The project is described as “the world’s first blockchain platform for investing in legal claims and social justice crowdfunding.” Some digital currency users mocked TFL’s in-house legal counsel members for leaving, while others appreciated the litigation team’s moves.

“Two points,” one individual tweeted. “Massive respect to these guys. This signals just how incredibly f***ing rotten Do Kwon [and] TFL are. That is all.”

The news follows the recent fork plan published by Do Kwon that aims to revive the fallen project from the ashes. The proposal dubbed “Terra Ecosystem Revival Plan 2,” will be voted on Wednesday, May 18. While some people liked the idea of a new Terra chain and an airdrop, others loathed the idea and people have been urging TFL to burn the remaining LUNA.

The news on Tuesday about the in-house legal team leaving was considered another blow to the fallen project and a deterent from a successful revival. An individual on Twitter called “Metaverse Lawyer,” tweeted:

You know things are bad when an entire in-house legal team resigns at once.

Tags in this story
Airdrop, Bitcoin advocate, corporate counsel, do kwon, Fork, general counsel, in-house legal team, Law, Lawrence Florio, legal team, LinkedIn, Linkedin Profiles, Litigation, litigation team, LUNA, Marc Goldich, Metaverse Lawyer, Noah Axler, plan, Regulatory, Stacy Herbert, TerraUSD, UST

What do you think about Terraform Labs’ legal team leaving the organization abruptly? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bitcoin prices dropped during the hump-day session, as bulls were unable to maintain Tuesday’s gains. The world’s largest cryptocurrency once again fell below the $30,000 level, whilst ETH also moved lower.

Bitcoin

Following a slight rally in price during Tuesday’s session, bearish sentiment returned to markets on Wednesday.

This sentiment saw BTC/USD drop to a bottom of $29,570.30, less than 24 hours after trading at a peak of $30,694.49.

Wednesday’s low sees a continuation of price consolidation, as traders continued to navigate through the current volatility within markets.

Bitcoin, Ethereum Technical Analysis: BTC Below $30,000 Again as Crypto Consolidation Extends
BTC/USD – Daily Chart

As a result of today’s move, bitcoin is now moving closer to a support level of $28,800, with the 14-day RSI remaining deep in oversold territory.

Looking at the chart, this indicator is currently tracking at 33.87, which is marginally below a ceiling of 35.

As discussed on Tuesday, it is unlikely that we will see an end to consolidation unless this level is firmly broken.

Ethereum

Whilst ETH also slipped in today’s session, it was able to once again remain above $2,000, despite a drop in price.

ETH/USD fell to an intraday low of $2,015.97 earlier in the day, which is just over 3% lower than yesterday’s high of $2,113.06.

Today’s move means that ETH is now trading around $80 away from its resistance point of $1,950.

Bitcoin, Ethereum Technical Analysis: BTC Below $30,000 Again as Crypto Consolidation Extends
ETH/USD – Daily Chart

Some expect this floor could be hit in upcoming sessions, especially with the RSI continuing to hover below its ceiling of 34.

The moving averages are also trending lower, with both 10-day and 25-day moving averages extending their respective downward directions.

Overall, ETH is currently 2.09% lower, with no real signs of this bearish pressure slowing down.

Where do you expect BTC and ETH to end up by the close of the week? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.




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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Metatheory, a Web3 gaming company founded in 2021, has announced it has raised $24 million in a Series A funding round. The investment round, which was led by big VC names in the crypto space like a16z, also had the participation of Pantera Capital and FTX Ventures. Kevin Lin, CEO of the company and co-founder of Twitch, stated the company will focus on making high-quality games with blockchain elements.

Metatheory Scores $24 Million in Series A Round

Metatheory, a Web3 gaming company that combines entertainment experiences with blockchain elements, informed it has raised $24 million in its Series A funding round. The CEO of the company, who is also co-founder of Twitch, Kevin Lin, stated that this is an opportunity to build high-quality games that also include blockchain elements in their design.

The Web3 gaming premise seems to be enticing for VCs like a16z, which led the funding round and has been actively investing in projects of this kind, including Mythical Games, Yield Guild Games, and Sky Mavis, makers of Axie infinity. Other participants include Pantera Capital and FTX Ventures, Breyer Capital, Merit Circle, Recharge Thematic Ventures, Dragonfly Capital Partners, Daedalus, Sfermion, and Global Coin Research.

Metatheory did not report a valuation for the company after this funding round.


Web3 Gaming Advantages

Metatheory is among a group of companies trying to blend gaming elements with blockchain and play-to-earn mechanics in order to produce high-end entertainment experiences. About this, Lin stated:

I truly believe blockchain will open the door to even more possibilities and have a major impact in the gaming, storytelling and community building space.

According to the company, a staff of veteran devs will differentiate its products when compared to other, less refined blockchain games, already having a team of 42 employees devoted to these tasks. The company has already produced its first franchise, called Duskbreakers, releasing its first drop of 10K NFTs that was sold in less than a week.

NFTs have had a polarizing effect in traditional gaming circles, with different companies taking various stances on the subject. Lin supports NFTs due to the ownership problem they aim to solve in these games. On this, Lin explained:

I think the idea of ownership in the digital economy, in the digital world, especially as we emerge into whatever the metaverse might be, is going to mean that blockchain is important technology.

However, he clarified that the company will focus on producing “good, fun games at the core.”

What do you think about Metatheory’s Series A funding round? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

PRESS RELEASE. BitcoinUSD.com, a website developed to educate the public on crypto exchanges and current prices, launched its new website. The new site provides more information on current cryptocurrency prices, live market cap, news and educational articles through its crypto blog.

The new site offers a variety of features. These include information on various coins, the Binance exchange, the biggest gainers and losers, a crypto calculator, a crypto ICO calendar, a block explorer, and a function allowing users to build a portfolio and blog for all of the latest cryptocurrency news.

BitcoinUSD.com began as a Bitcoin-focused cryptocurrency site, only to grow into a destination website for all cryptocurrencies. The site breaks down information on various cryptocurrencies and provides users with additional information on NFTs and other coins. BitcoinUSD also provides options for its users on where to find a cryptocurrency exchange platform and outlines how trustworthy each exchange is. Throughout the site are the up-to-the-minute prices for the top currencies and the site also outlines the day’s biggest gainers and losers. For those looking to get involved with the newest cryptocurrencies, BitcoinUSD provides a list of the upcoming ICOs. Users can upload their portfolios and track their gains, losses, and total valuation for current crypto owners in real-time.

The site offers a large swath of cryptocurrency news through the website’s blog. The blog helps to guide readers through their cryptocurrency journey, including how to read cryptocurrency indices and providing information on all of the important cryptocurrencies.

For more information or to view the current crypto prices, visit bitcoinusd.com.

About BitcoinUSD.com

BitcoinUSD.com is a premier news and resource platform, working since October 2020 to bring quality news content, reviews, technical analysis and other unique insights to the ever-growing cryptocurrency community. After starting with the sole focus on Bitcoin and its potential impact on the traditional financial systems, the company has grown with the cryptocurrency industry to cover various altcoins, blockchain projects, crowdsales, regulatory developments and the futuristic confluence of some of the leading technologies of time viz., blockchain, artificial intelligence, internet of things and more.

Facebook: https://www.facebook.com/BitcoinUSDcom

Twitter: https://twitter.com/Cryptoweazels

Linkedin: https://www.linkedin.com/company/69875404

 

 

 

 

 

 


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The Australian tax agency has listed crypto-related profits among several priority areas where more efforts are needed to ensure correct reporting. The authority has reminded taxpayers they need to calculate any capital gain or loss from the sale of digital coins and tokens and record it in their tax returns.

Australian Taxpayers Warned They Should Report Crypto Gains

The Australian Taxation Office (ATO) has announced four key areas where it will focus its attention this year. These include record-keeping, work-related expenses, and rental property income and deductions. Ensuring better scrutiny on the reporting of capital gains from property, shares, and crypto assets completes the list of stated priorities.

“The ATO is targeting problem areas where we see people making mistakes,” Assistant Commissioner Tim Loh has been quoted as noting. The high-ranking official emphasized taxpayers should rethink their claims and abide by applicable rules.

The tax authority is warning Australians that if they dispose of crypto assets this financial year, including non-fungible tokens (NFTs), they will need to establish any capital gain or capital loss and record it in their tax returns. Loh commented:

Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year.

The assistant commissioner remarked that the ATO knows that many Australian residents are buying, selling, or exchanging digital assets, so it’s important that people understand what this means for their tax obligations. He also reminded taxpayers they cannot offset crypto losses against their salaries and wages.

The agency’s decision to focus on the reporting and taxation of gains from crypto investments comes after a recent study revealed that more than a million Australians, or 5% of those aged 18 and over, own one or more cryptocurrencies. According to its authors from market research firm Roy Morgan, young male Australians are the most likely cryptocurrency holders.

Tags in this story
announcement, ATO, Australia, australian, Coins, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, priorities, reporting, Tax, Tax agency, tax authority, tax office, tax returns, Taxation, Taxes, Tokens

Do you expect Australia to collect more money in tax revenue from crypto-related capital gains next year? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has given his take regarding the future of Bitcoin’s usage. Bankman-Fried stated he doesn’t believe that Bitcoin will work as a payments network, due to its limited capability for scaling to fulfill this task. However, he believes it might become “an asset, a commodity, and a store of value.”

Sam Bankman-Fried on Bitcoin as a Payments Network

FTX founder Sam Bankman-Fried has given his opinion about where bitcoin is going and the real value of its structure in the future. In an interview published by the Financial Times, Bankman-Fried criticized the implementation of Bitcoin as a payments network. To him, the Bitcoin blockchain system will never work as a day-to-day payments system for several reasons.

A perceived lack of scalability of the Bitcoin blockchain is one of them, and the second reason presented by the executive has to do with the energy and environmental implications of this hypothetical growth compared to other alternatives. To Bankman-Fried, bitcoin for payments is akin to gold, in that it would be impractical to use. He stated:

Why don’t we go to a store and pay with physical gold bars? First of all, it would be ridiculous and absurd. It would be unbelievably expensive. And I’m sure it’d be bad for the climate.

He also declared that proof-of-stake (PoS) networks would be more efficient to complete these tasks, explaining:

Things that you’re doing millions of transactions a second with (will) have to be extremely efficient and lightweight and lower energy cost. Proof of stake networks are.

Bankman-Fried believes that Bitcoin has other unique properties that make it good as “an asset, a commodity, and a store of value.”


Differing Opinions

However, some views differ from Bankman-Fried’s opinions. The inception of the Bitcoin Lightning Network (LN), the second layer (L2) expansion protocol for Bitcoin that proposes very low transaction costs, might be a solution to the scaling problems that first-generation blockchains like Bitcoin face when congested. This is the opinion of Paolo Ardoino, CTO of Bitfinex, who believes Lightning has the potential to turn Bitcoin into a feasible payment rail. He stated:

Bitcoin’s Lightning Network is quietly emerging to make manifest Satoshi Nakamoto’s prophecy of a decentralized, peer-to-peer payment network. A case in point is El Salvador where the country’s adoption of bitcoin as legal tender has made the nation a laboratory for Lightning usage with global corporations integrating the technology.

David Marcus, former crypto chief at Meta, recently launched Lightspark, a VC-backed company that will explore the capabilities of the Lightning Network for payments.

The protocol, which was proposed in 2015, has still not managed to gain mainstream support, and it sits at number 32 on the list of decentralized protocols with the most value locked, according to Defi Pulse, a decentralized finance index.

Tags in this story
Bitcoin, Crypto, David Marcus, expansion, lightning network, paolo ardoido, Paolo Ardoino, Payments, Sam Bankman-Fried, sbf, Scalability

What do you think about Sam Bankman-Fried’s opinion on Bitcoin as a payments network? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Chinese authorities in Rong County recently said they have prosecuted eight individuals accused of being the masterminds behind the Magic Data Chain (MDC) pyramid scheme. The pyramid is thought to have handled transactions with a total value of over $147 million.

Virtual Currency Pyramid Scheme

Authorities in China’s Rong County, Zigong City, recently prosecuted eight people accused of orchestrating the MDC virtual currency pyramid scheme, a local report has said. According to the report, the prosecution of the case was handled by the Rong County People’s Procuratorate, and was only carried out some ten months after the arrest of MDC’s 12 core members.

According to a report from the Sichuan Provincial Public Security Department, the MDC pyramid scheme was initially cracked in May 2021. Subsequent investigations by authorities in Rong County then determined that the scheme had been in existence since July 2019.

MDC’s 2 Million Registered Members

In the report, authorities said the criminals — who were led by an individual called Yang — had “built a blockchain website of ‘Magic Data chain’ and a virtual currency trading website of ‘XIN Exchange.’” According to the report, the MDC virtual currency platform had handled transactions with a total value of over $147 million (1 billion yuan).

In addition, the scheme had 2 million registered members and some 200,000 participants in 30 provinces across China. When authorities in Rong County finally raided MDC in 2021, the assets “seized and frozen” were worth just over $4.4 million, the report said.

What are your thoughts on this story? Tell us what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.







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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

PRESS RELEASE. Algoracle has recently announced the close of its seed round for $1.5 million (USD) to help accelerate the development and launch of Algorand’s native decentralized oracle network.

Algoracle’s seed round was led by Borderless Capital, with major contributions from the Algorand Foundation, Valhalla Capital, and Big Brain Holdings, and rounded out by strategic investors Xpand Capital, Parea Capital, OrcaDAO, GMI Capital, and EXA Finance. Thanks to the support provided by all of these organizations, the seed round was a resounding success and generated the aforementioned amount of $1.5 million, much to the delight of the community.

“We are excited to back Algoracle and their vision of bringing data on-chain in a decentralized fashion. This will help developers to build more powerful and sophisticated applications and smart contracts, enabling innovative and disruptive new use cases on top of the Algorand blockchain” said David Garcia, CEO and Managing Partner of Borderless.

About Algoracle

Algoracle is a decentralized oracle network that links the Algorand blockchain to the physical world. To obtain data, smart contracts building on Algorand can call the feed contract for values. Algoracle will also debut sports, cryptocurrencies, stock, and weather feeds over the coming months.

Moreover, Algoracle employs a network of feed providers and node runners to deliver feeds to smart contracts to ensure decentralization. Currently, institutional-grade providers such as AmberData, Brave New Coin, CryptoCompare, and dxFeed are providing Cryptocurrency price data to power the testnet app. Regarding future goals, the focus will be on adding a variety of feeds such as Sports, Weather, NFT prices as well as off-chain computation capabilities before launching to mainnet.

For more information about Algoracle, check out the official website along with the Twitter and Discord channels.

About Algorand

Algorand is a PPoS (Pure Proof of Stake) blockchain that accelerates the convergence between decentralized and traditional finance by enabling the simple creation of next-generation financial products, protocols, and exchange of value. Founded by Silvio Michali, the recipient of the Turing Award (in computer science), the Gödel Prize (in theoretical computer science), and the RSA prize (in cryptography), the blockchain has managed to find an approach that solves the blockchain trilemma without any compromise. Since its launch in 2019, Algorand has had no downtime and has never forked.

For more information on Algorand, visit the official website and Twitter, and Medium.

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Cloudflare, an internet services and DDoS protection company, has announced a new strategy regarding its Web3 experiments. The company revealed it will run Ethereum validator nodes as part of its commitment to help to scale the internet by using proof-of-stake (PoS) consensus technologies. This will ostensibly allow the company to access the energy efficiency and consistency of this technology.

Cloudflare to Enter Crypto via Ethereum

Cloudflare, one of the leading content delivery and DDoS mitigation companies, announced a new Web3 push that leverages Ethereum’s upcoming proof-of-stake network. The company informed it will be running Ethereum validator nodes as part of its experiment in order to assess the viability of the scaling technology in the future.

Cloudflare stated that blockchain technologies could be part of the story of the internet in the long run and that these experiences might help in the decentralization of such networks. About this, the company stated:

For the Ethereum ecosystem, running validator nodes on our network allows us to offer even more geographic decentralization in places like EMEA, LATAM, and APJC while also adding infrastructure decentralization to the network.

Cloudflare specified these actions will be conducted in the coming months before The Merge, the change of consensus mechanism the Ethereum network aims to execute later this year.


Proof-of-Stake Preference

Cloudflare made clear that it supports proof-of-stake networks due to the low energy usage compared to proof-of-work-based counterparts, declaring that “the energy required to operate a proof of stake validator node is magnitudes less than a proof of work miner.” About proof-of-work-based networks, like Bitcoin, Cloudflare stated:

Proof of work networks are wasteful. This waste is driven by the fact that proof of work consensus mechanisms are electricity-intensive.

The company also declared that, as part of its commitment to sustainability, “Cloudflare has not and will not run our own proof of work infrastructure on our network.” While Cloudflare will start experimenting with Ethereum first, it also mentioned another consensus mechanism, “proof of spacetime,” in its press release.

This consensus mechanism is the one used by Filecoin, a decentralized storage network that uses incentives to maintain the files of the participants. This may hint at the possibility of the inclusion of this network in the set of experiments that the internet company will be conducting in the future.

What do you think about Cloudflare’s decision to run Ethereum validator nodes? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

The Department of Justice (DOJ) has filed its first criminal complaint against an American who allegedly used cryptocurrency to circumvent U.S. sanctions. “The payments platform advertised its services as designed to evade U.S. sanctions, including through purportedly untraceable virtual currency transactions.”

DOJ Charges US Citizen in Crypto Sanctions Evasion Case

The U.S. Justice Department has filed its first criminal complaint against a U.S. citizen who allegedly tried to evade American sanctions using cryptocurrency, according to a judicial opinion document filed on Friday by U.S. Magistrate Judge Zia M. Faruqui. The case is still sealed.

Judge Faruqui explained why he approved the DOJ’s criminal complaint against the American citizen accused of transmitting more than $10 million worth of bitcoin to a crypto exchange in a comprehensively sanctioned country. Comprehensive sanctions are currently placed on Cuba, Iran, North Korea, Syria, and the regions of Crimea, Donetsk, and Luhansk.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed fines against crypto exchange platforms for violating sanctions laws. However, the judge explained:

The Department of Justice can and will criminally prosecute individuals and entities for failure to comply with the OFAC’s regulations, including as to virtual currency.

The DOJ alleged that the defendant, a U.S. citizen, used an IP address in the U.S. “to conspire to operate an online payments and remittances platform” based in a comprehensively sanctioned country. The Justice Department noted:

The payments platform advertised its services as designed to evade U.S. sanctions, including through purportedly untraceable virtual currency transactions.

The defendant also opened an account with a U.S.-based cryptocurrency exchange to buy and sell bitcoin. The defendant then used this crypto exchange account to transmit over 10 million dollars worth of BTC between the U.S. and sanctioned countries for the platform’s customers. In doing so, the defendant conspired to violate the International Emergency Economic Powers Act (IEEPA) and defraud the United States, the DOJ detailed.

The judge further noted: “The question is no longer whether virtual currency is here to stay … but instead whether fiat currency regulations will keep pace with frictionless and transparent payments on the blockchain.”

What do you think about this case? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.