#Tag · bonfire.cafe

@mikemccaffrey@wandering.shop · yesterday

Shocking to discover in the #EpsteinFiles that #Bitcoin was used extensively for #HumanTrafficking, rather than the usual drug shipments, money laundering, and investment scams that are somehow a legitimate use of #cryptocurrency.

https://cosocial.ca/@mhoye/116018464082916419

Mike McCaffrey

@mikemccaffrey@wandering.shop · yesterday

https://cosocial.ca/@mhoye/116018464082916419

Tom and 2 others boosted

Molly White

@molly0xfff@hachyderm.io · last week

Binance bitcoin bailout

#crypto #cryptocurrency

Headline: Binance to shift $1 billion user protection fund into bitcoin amid market rout Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits

Molly White

@molly0xfff@hachyderm.io · last week

Binance bitcoin bailout

#crypto #cryptocurrency

Molly White

@molly0xfff@hachyderm.io replied · last week

it does not seem to me to bode well that they’re getting this nervous when the bitcoin price hasn’t even dropped below $80,000

#crypto #cryptocurrency

Molly White

@molly0xfff@hachyderm.io · last week

Binance bitcoin bailout

#crypto #cryptocurrency

Rachel E. S. Lösche and 7 others boosted

Molly White

@molly0xfff@hachyderm.io · last week

As ICE terrorizes communities, crypto executives who spent years posting about freedom have gone conspicuously silent. But behind the scenes, they’ve contributed at least $315 million — more than double their record 2024 spending — to elect more lawmakers to enable this administration.

https://www.citationneeded.news/issue-100/

#crypto #cryptocurrency #USpol #USpolitics #CitationNeededNewsletter

happyborg and 1 other boosted

Molly White

@molly0xfff@hachyderm.io · last week

The SEC has dismissed with prejudice an enforcement action against the Winklevoss twins’ Gemini crypto exchange. This comes after the Winklevosses contributed $4.4 million to Trump, backed his sons’ ventures, and committed $21 million to elect pro-Trump, pro-crypto lawmakers.

To date, the SEC has paused, dismissed, or otherwise ended crypto lawsuits or investigations against Aave, Binance, Coinbase, ConsenSys, Crypto.com, Cumberland DRW, Dragonchain, Gemini (twice), Hex, Immutable, Kraken, Ondoe, OpenSea, PayPal, Ripple, Robinhood, Tron, Uniswap, Yuga Labs, and Zcash.

#crypto #cryptocurrency #USpol #USpolitics #CitationNeededNewsletter

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SEC
The SEC has dismissed with prejudice its case against the Winklevoss twins’ Gemini cryptocurrency exchange. Filed in January 2023, the agency alleged that the company had violated securities laws with its Earn program, in which Gemini partnered with the Genesis crypto lender to offer Gemini customers up to 7.4% APY on assets they loaned through Genesis. When Genesis suffered major losses on loans to Three Arrows Capital [W3IGG] and Babel Finance [W3IGG], the company went under, and around $900 million in Gemini customers’ assets were suddenly locked up in bankruptcy proceedings [I17, 18, 42]. Now, the SEC has evidently decided no harm, no foul, stating: “The 100 percent in-kind return of Gemini Earn investors’ crypto assets through the Genesis Bankruptcy and the settlements noted above, and in the exercise of its discretion, the Commission believes the dismissal of the claims against Defendant is appropriate.”26 — SEC The SEC has dismissed with prejudice its case against the Winklevoss twins’ Gemini cryptocurrency exchange. Filed in January 2023, the agency alleged that the company had violated securities laws with its Earn program, in which Gemini partnered with the Genesis crypto lender to offer Gemini customers up to 7.4% APY on assets they loaned through Genesis. When Genesis suffered major losses on loans to Three Arrows Capital [W3IGG] and Babel Finance [W3IGG], the company went under, and around $900 million in Gemini customers’ assets were suddenly locked up in bankruptcy proceedings [I17, 18, 42]. Now, the SEC has evidently decided no harm, no foul, stating: “The 100 percent in-kind return of Gemini Earn investors’ crypto assets through the Genesis Bankruptcy and the settlements noted above, and in the exercise of its discretion, the Commission believes the dismissal of the claims against Defendant is appropriate.”26

While “but we gave the money back” isn’t normally a successful defense (just ask Sam Bankman-Fried), contributing around $4.4 million to Trump’s campaign,27 donating an undisclosed amount to Trump’s ballroom project,28 spending $1 million to be among the first members of the Trump family-run Executive Branch club,29 investing in Donald Trump Jr.’s American Bitcoin venture,30 and committing $22 million to political projects backing pro-Trump crypto advocates in the midterms seems to have gone a long way. The SEC case was paused back in April [I81], and, as I wrote then, “it’s widely understood that these [pauses] mark the end of SEC scrutiny for these companies.” Two months later, as the Winklevoss twins stood behind Trump in the Oval Office as he signed the GENIUS Act stablecoin bill, Trump remarked about the crypto industry: “I got you guys out of so much trouble”. Thanking the Winklevosses specifically, he added: “They’ve got plenty of cash, and it’s great that you’re on our side.” [I89]

The dismissal of the Gemini Earn enforcement action adds to a long list of crypto-focused cases and investigations that the SEC has paused, dismissed, or otherwise ended. That list also includes: Aave [I99], Binance [I85], Coinbase [I78], ConsenSys [I78], Crypto.com [I81], Cumberland DRW [I79], Dragonchain,31 Gemini (a separate investigation) [I78], Hex [I82], Immutable [I80], Kraken [I79], Ondo Finance [I98], OpenSea [I78], PayPal [I83], Ripple [I80], Robinhood [I78], Tron [I78], Uniswap [I78], Yuga Labs [I79], and the ZCash Foundation [I99].

Mastodon Migration and 1 other boosted

Molly White

@molly0xfff@hachyderm.io · last week

$40 million in seized crypto held by the US Marshals was stolen in 2024, and crypto sleuth zachxbt has now linked the thefts to the son of a contractor managing the agency's crypto assets. The incident has renewed concerns about the government's ability to manage its crypto holdings.

#crypto #cryptocurrency #USpol #USpolitics #CitationNeededNewsletter

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In crime
Something funky’s been happening with the US Marshals’ pile of seized crypto — the crypto they’re tasked with hanging on to as cases wind through the courts.b In March 2024, almost $25 million was inexplicably removed from a Marshals-controlled wallet containing funds connected to the 2016 Bitfinex hack. In October 2024, crypto sleuth zachxbt noticed that $20 million of the Marshals’ crypto assets had apparently been stolen, with the thief laundering the funds through various exchanges [W3IGG]. The next day, $19.3 million of those funds were mysteriously returned.

Now, zachxbt has linked the stolen government funds — as well as stolen assets belonging to other victims — to a man named John Daghita. According to zachxbt, Daghita was previously known only as “Lick” online, and was active in Telegram chat rooms where crypto thieves boasted about their wealth. When another thief taunted Lick for “only having $6 mil”, Lick evidently decided the only way to defend his honor was to go on a screenshare call to show proof of ownership by transferring funds between wallets. In doing so, he exposed several wallet addresses, and zachxbt was able to trace some of the crypto back to the US government wallet addresses.1415 — In crime Something funky’s been happening with the US Marshals’ pile of seized crypto — the crypto they’re tasked with hanging on to as cases wind through the courts.b In March 2024, almost $25 million was inexplicably removed from a Marshals-controlled wallet containing funds connected to the 2016 Bitfinex hack. In October 2024, crypto sleuth zachxbt noticed that $20 million of the Marshals’ crypto assets had apparently been stolen, with the thief laundering the funds through various exchanges [W3IGG]. The next day, $19.3 million of those funds were mysteriously returned. Now, zachxbt has linked the stolen government funds — as well as stolen assets belonging to other victims — to a man named John Daghita. According to zachxbt, Daghita was previously known only as “Lick” online, and was active in Telegram chat rooms where crypto thieves boasted about their wealth. When another thief taunted Lick for “only having $6 mil”, Lick evidently decided the only way to defend his honor was to go on a screenshare call to show proof of ownership by transferring funds between wallets. In doing so, he exposed several wallet addresses, and zachxbt was able to trace some of the crypto back to the US government wallet addresses.1415

Shockingly, Daghita’s father is reportedly Dean Daghita, the owner of an IT company called Command Services & Support (CMDSS). In November 2024, CMDSS began a contract with the US Marshals to provide management services for their seized crypto assets.16 The contract is still active. While Coinbase has since July 2024 managed what the Marshals call their “class 1” crypto assetsc — the most popular cryptocurrencies like bitcoin, ether, and Tether — CMDSS was chosen to manage the “class 2” through “class 4” cryptocurrencies.d

While it could be that the younger Daghita gained privileged information or access to the Marshals’ crypto wallets through his father, it’s not clear how that would have enabled thefts in the months prior to the contract award. I am hopeful that a FOIA request I filed with the Marshals earlier this week will shed some light on that. It’s also curious that many of the assets Lick siphoned from government wallets fall into the “class 1” category, which CMDSS is not involved in managing. The Marshals have declined to comment on the matter, citing ongoing investigations.17 — Shockingly, Daghita’s father is reportedly Dean Daghita, the owner of an IT company called Command Services & Support (CMDSS). In November 2024, CMDSS began a contract with the US Marshals to provide management services for their seized crypto assets.16 The contract is still active. While Coinbase has since July 2024 managed what the Marshals call their “class 1” crypto assetsc — the most popular cryptocurrencies like bitcoin, ether, and Tether — CMDSS was chosen to manage the “class 2” through “class 4” cryptocurrencies.d While it could be that the younger Daghita gained privileged information or access to the Marshals’ crypto wallets through his father, it’s not clear how that would have enabled thefts in the months prior to the contract award. I am hopeful that a FOIA request I filed with the Marshals earlier this week will shed some light on that. It’s also curious that many of the assets Lick siphoned from government wallets fall into the “class 1” category, which CMDSS is not involved in managing. The Marshals have declined to comment on the matter, citing ongoing investigations.17

The incident has renewed concerns about the US government’s ability to prudently manage crypto. In 2022, a Department of Justice Inspector General report identified “challenges” in the Marshals’ crypto custody practices, including “lack of comprehensive inventory management” and “inadequate, incomplete, and conflicting policies and procedures”.18 Last year, the Marshals struggled to provide even an estimate of how much crypto they held. An IT contractor who was passed over for a contract with the Marshals explained to CoinDesk, “As far as I’m aware, the USMS is currently managing this with individual keystrokes in an Excel spreadsheet. ... They’re one bad day away from a billion-dollar mistake.”19 Later in 2024, the Marshals disclosed in response to a FOIA request that they held around 28,988 BTC (more than $2.5 billion at today’s prices), though they did not provide an accounting of their other tokens.20

After zachxbt’s allegations, a wallet linked to the thefts launched a “John Daghita” token, with the ticker $LICK, on the pump.fun memecoin launchpad. I couldn’t help but laugh when I read reporting from Cointelegraph that “The deployer of LICK held 40% of the total supply at launch, according to blockchain data visualization platform Bubblemaps, a level of concentration often viewed as a red flag in early-stage token launches.”21 I’m not sure the degree of concentration is really the primary red flag here. — The incident has renewed concerns about the US government’s ability to prudently manage crypto. In 2022, a Department of Justice Inspector General report identified “challenges” in the Marshals’ crypto custody practices, including “lack of comprehensive inventory management” and “inadequate, incomplete, and conflicting policies and procedures”.18 Last year, the Marshals struggled to provide even an estimate of how much crypto they held. An IT contractor who was passed over for a contract with the Marshals explained to CoinDesk, “As far as I’m aware, the USMS is currently managing this with individual keystrokes in an Excel spreadsheet. ... They’re one bad day away from a billion-dollar mistake.”19 Later in 2024, the Marshals disclosed in response to a FOIA request that they held around 28,988 BTC (more than $2.5 billion at today’s prices), though they did not provide an accounting of their other tokens.20 After zachxbt’s allegations, a wallet linked to the thefts launched a “John Daghita” token, with the ticker $LICK, on the pump.fun memecoin launchpad. I couldn’t help but laugh when I read reporting from Cointelegraph that “The deployer of LICK held 40% of the total supply at launch, according to blockchain data visualization platform Bubblemaps, a level of concentration often viewed as a red flag in early-stage token launches.”21 I’m not sure the degree of concentration is really the primary red flag here.

Alex Akselrod boosted

Molly White

@molly0xfff@hachyderm.io · last week

The crypto industry’s “educational nonprofit” has also launched an initiative to fund Congressional staff positions after participants go through weeks of “training” on “emerging technologies like crypto, AI, biotech, and defense tech”.

#crypto #cryptocurrency #USpol #USpolitics #CitationNeededNewsletter