Crypto News Highlights ( 29th April to 3rd May 2024)
Here are the top stories that happened in crypto this week.
- Bitcoin Investor Roger Ver Faces Tax Evasion Charges
- Binance Founder CZ Acknowledges Prison Sentence
- Tether Collaborates with Chainalysis for Monitoring
- Bitcoin ETFs Experience Outflows
- Jack Dorsey's Block Doubles Down on Bitcoin
Bitcoin Investor Roger Ver Faces Tax Evasion Charges
Roger Ver, known as Bitcoin Jesus for his early investment in Bitcoin, has been arrested by the United States Department of Justice (DOJ) for allegedly evading taxes amounting to $50 million.
The charges, unsealed on April 29, accuse Ver of filing false tax returns, committing mail fraud, and evading taxes between 2011 and 2017 through his companies MemoryDealers Inc. and Agilestar Inc. These companies were instrumental in Ver's acquisition of thousands of bitcoins, starting in 2011, when Bitcoin's value was relatively low. By February 2014, Ver and his companies had amassed around 131,000 BTC, which traded for approximately $871 each at the time.
In 2014, Ver renounced his U.S. citizenship and obtained citizenship in St. Kitts and Nevis. However, the indictment alleges that Ver failed to report his assets accurately to U.S. authorities, including the significant holdings of bitcoins. Moreover, when Ver's companies sold a large portion of their bitcoins in 2017, he allegedly failed to report these transactions to the Internal Revenue Service (IRS) and pay taxes on the gains.
The DOJ asserts that Ver provided misleading information to the IRS, concealing the true extent of his Bitcoin holdings and undervaluing his companies. Despite no longer being a U.S. citizen, Ver is still subject to U.S. tax obligations due to his ownership of U.S.-based companies.
Ver now faces extradition to the U.S. to stand trial for these charges.
Binance Founder CZ Acknowledges Prison Sentence
Changpeng Zhao, commonly known as CZ, the founder of Binance, has been sentenced to four months in prison after pleading guilty to violating U.S. anti-money laundering laws. CZ's sentence comes after Binance admitted to regulatory compliance failures and agreed to a significant penalty.
I would like to thank everyone for your care and support, be it writing letters, showing support on X, or in any other form. They all mean a lot to me and keep me strong. I will do my time, conclude this phase and focus on the next chapter of my life (education).
— CZ 🔶 BNB (@cz_binance) May 1, 2024
I will remain a…
In a tweet before beginning his sentence, CZ expressed gratitude to his supporters and emphasized the importance of compliance in the crypto industry. He acknowledged his failure to implement adequate anti-money laundering measures at Binance and expressed remorse to the court.
Despite his conviction, CZ remains committed to the cryptocurrency industry. He plans to continue his involvement as a passive investor and holder of crypto assets.
Tether Collaborates with Chainalysis for Monitoring
Tether, the issuer of the USDT stablecoin, has partnered with Chainalysis, a blockchain data platform, to enhance monitoring of secondary market activity and combat illicit transactions. This collaboration aims to identify wallets that may pose risks or be associated with illicit or sanctioned addresses.
The tools developed through this partnership will enable Tether to monitor transactions conducted within the broader ecosystem using USDT, beyond direct purchases and sales from Tether. This proactive approach underscores Tether's commitment to making the cryptocurrency ecosystem safer and more transparent.
Bitcoin ETFs Experience Outflows
Bitcoin exchange-traded funds (ETFs) in the U.S. experienced outflows on May 1, indicating investor withdrawals from the market. Notably, the iShares Bitcoin Trust suffered its first-ever outgoing capital day, amounting to $36.9 million. The Fidelity Wise Origin Bitcoin Fund also saw a significant outflow of $191.1 million.
This trend contrasts with gold ETFs, which have seen significant inflows despite Bitcoin's volatility. The outflows suggest a shift in investor sentiment towards cryptocurrency ETFs, possibly influenced by market dynamics and regulatory developments.
Jack Dorsey's Block Doubles Down on Bitcoin
Jack Dorsey, CEO of Block Inc., reiterated his commitment to Bitcoin in the company's Q1 shareholder letter. Block plans to invest 10% of its profits from Bitcoin products into Bitcoin purchases each month, using a Dollar-Cost Averaging approach to minimize the impact of volatility on its Bitcoin assets.
Dorsey emphasized Bitcoin's importance as an open protocol for money, distinct from other cryptocurrencies' objectives. Block's focus on Bitcoin aligns with its mission to provide accessible and secure financial services to people worldwide.
Disclaimer: Â The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.
