OneCoin was launched by Ruja Ignatova and Karl Sebastian Greenwood in Bulgaria. Ignatova has been missing since 2017, and Greenwood was sentenced to 20 years in prison. The US Department of Justice has launched a compensation process for victims of the $4 billion crypto Ponzi scheme OneCoin, using forfeited assets taken from some of the scheme's architects. The Justice Department said on Monday that more than $40 million in forfeited assets is available to compensate anyone who purchased OneCoin between 2014 and 2019 and recorded a net loss. Jay Clayton, the US Attorney for Manhattan, said the compensation process was “an important step toward returning funds to those harmed.” Read more
Bitcoin falling to the $50,000 level is being seen as the “last significant accumulation zone” before any sustained recovery, says LVRG Research director Nick Ruck. Several crypto analysts said there will be a final flush that sends Bitcoin prices as low as $50,000 before the cryptocurrency can mount a measurable recovery. Bitcoin (BTC) trader and author Ivan Liljeqvist posted to X on Tuesday that Bitcoin is yet to have “the big flush.” “I don’t think we’ve had it yet, I don’t think $60,000 was the bottom,” he added. “Trend is still down.” Read more
The American Bankers Association is concerned that stablecoin yields would lead to mass deposit outflows from smaller community banks. The American Bankers Association (ABA) has criticized a White House report that claimed banning stablecoin yields would only have a negligible impact on banks, arguing that the conclusion was reached by asking the “wrong question.” The White House’s Council of Economic Advisers claimed in a research paper on Wednesday, on the “Effects of Stablecoin Yield Prohibition on Bank Lending,” that under a baseline scenario, banning stablecoin yield may only increase bank lending by $2.1 billion, representing a marginal net increase of about 0.02%. ABA chief economist Sayee Srinivasan and vice president for banking and economic research Yikai Wang said in a statement on Monday that the “live policy concern” is not whether prohibiting yield on stablecoins would impact bank lending but whether allowing yield on stablecoins would encourage deposit outflows, particularly from community bank...