• SVB Financial Group, the parent company of Silicon Valley Bank, and two senior executives have been sued by shareholders over the bank’s collapse last Friday.
• The proposed class action accuses SVB of hiding the fact that interest rate hikes could lead to its failure.
• Anonymous sources say the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are both investigating SVB’s collapse, which includes stock sales by senior executives.

Silicon Valley Bank Collapse

The sudden collapse of Silicon Valley Bank on Friday has sparked an investigation by federal agencies, as well as a lawsuit from shareholders against SVB Financial Group—the parent company of Silicon Valley Bank—and two senior executives: CEO Greg Becker and CFO Daniel Beck.

Shareholders‘ Lawsuit

The proposed class action lawsuit accuses SVB of hiding the potential harm that rising interest rates could cause to the now-failed financial institution from its investors. Filed in federal court in San Jose, California, it seeks unspecified damages for shareholders and is led by Chandra Vanipenta.

Investigations By Federal Agencies

According to an anonymous source who spoke with the Wall Street Journal, both the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are conducting separate investigations into SVB’s collapse—including looking into stock sales made by senior executives prior to its failure. The DOJ’s investigation involves prosecutors in San Francisco and Washington D.C., according to the same source.

FDIC Receivership & Reimbursement

On Sunday, the U.S Federal Reserve, FDIC, and Treasury announced that all depositors would be reimbursed after FDIC placed SVB into receivership on Friday then converted it into a bridge bank under their control on Monday–opening it up for depositors again immediately afterwards.

Conclusion

While these investigations are still ongoing, all depositors have been granted reimbursement thanks to government intervention via FDIC receivership–allowing them access once more to their accounts just three days after Silicon Valley Bank failed suddenly last week

• The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has asked the President of Russia Vladimir Putin to back the crypto community in shaping the country’s regulatory framework for cryptocurrencies and related technologies.
• Racib warned that if Russia continues its conservative approach towards new financial technologies, it risks lagging behind other nations.
• Racib suggested establishing a working group to prepare a pilot project for the introduction of digital financial technologies, including in cross-border payments relevant for Russia amid sanctions.

Russian Crypto Industry Asks Putin For Help

The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has called on President of Russia Vladimir Putin to back the crypto community in shaping the country’s regulatory framework for cryptocurrencies and related technologies.

Regulatory Efforts Needed To Avoid Falling Behind Other Nations

In a letter to the Russian head of state, its members warn that the government’s attitude towards digital asset regulation poses „serious risks of the economy lagging behind in the introduction of new financial technologies,“ according to reports from Bits.media and RBC Crypto. The organization believes that this „extremely conservative and prohibitive approach“ may cause Russia to lose pace in the development of the digital economy.

Pilot Project Suggested To Introduce Digital Financial Technologies

Racib suggested establishing a working group to prepare a pilot project for the introduction of digital financial technologies, including in cross-border payments relevant for Russia amid sanctions. They also suggest calling a meeting with IT associations regarding new legislation and experimental legal regimes for fintechs which are not currently used in reality.

Sanctions Are A Concern For Cross-Border Payments

The proposed amendments to existing law make it difficult to implement digital technologies due to current sanctions against Russia by other nations. This could deprive both businesses based within Russia as well as those who exchange goods with them from taking advantage of potential opportunities presented by new financial instruments such as cryptocurrencies or blockchain technology since they would need access outside sanctioned countries.

Crypto Community Hoping For Help From Putin

The letter was co-authored by non-profit partnership Russoft and asks President Putin directly for help as he had previously met with IT associations about similar matters back in 2019 during discussions about new legislation.. With their plea, Racib hopes that their request will be taken seriously by Putin so that businesses within their industry can remain competitive compared to other nations which have adopted more lenient regulations regarding cryptocurrency technology or blockchain applications .

• Two Zimbabwean startups, Flexid and Uhuru Wallet, have launched a platform offering digital identity and remittance services to migrants living and working in South Africa.
• The platform harnesses the benefits of blockchain technology to provide a streamlined and secure remittance experience for immigrants.
• By leveraging blockchain, the platform hopes to overcome challenges such as high sending fees, limited access to formal financial services, and identity verification issues.

Zimbabwean Blockchain Startups Launch Remittance Platform

Two Zimbabwean blockchain startups – FlexID and Uhuru Wallet – recently announced they have launched a combined digital identity and remittance service platform for Zimbabwean immigrants in South Africa. The two companies hailed this as the “first cross-chain collaboration between the two companies”.

Harnessing Benefits of Blockchain Technology

The FlexID platform is built on Algorand blockchain while Uhuru Wallet is built on Stellar blockchain. This joint solution will enable users to benefit from a more streamlined and secure remittance experience compared with other traditional money transfer options. According Trust Jakarasi, CEO & founder of Uhuru Wallet: “We are excited to partner with FlexID to offer our customers a more streamlined and secure remittance experience”.

Challenges Faced by Migrants

Currently, it costs anywhere between 5% – 20% for Zimbabweans living in South Africa to send money back home using registered money transfer agencies such as Western Union or MoneyGram. This has forced many Zimbabweans into using unregistered platforms or couriers which often lack security features or are unreliable.

Overcoming Challenges with Blockchain

By leveraging blockchain technology, Flex ID aims to provide users with an efficient way to verify their identity so that they can access financial services no matter where they are located. This will enable them to bypass high sending fees associated with traditional methods of sending money back home whilst also having access to formal financial services regardless of their geographical location or current economic standing.

Conclusion

The new partnership between FlexID & Uhuru Wallet hopes to bring much needed relief to Zimbabwean immigrants who struggle with financial challenges when trying send money back home efficiently & securely at minimal cost possible. By leveraging the advantages of distributed ledger technology (DLT), this joint venture seeks revolutionize how African migrant workers interact with global finance networks across borders through its innovative tech-driven solutions powered by blockchain technology

• Agustin Carstens, the head of the Bank for International Settlements (BIS), believes that cryptocurrencies have lost the battle against fiat currencies issued by central banks.
• Carstens argued that stablecoins are not reliable due to their lack of „institutional arrangements and social conventions.“
• The BIS general manager stated that stablecoins rely on the credibility of fiat with fewer regulatory protections and cannot ensure the unity of money.

Agustin Carstens on Cryptocurrencies

Agustin Carstens, the general manager of the Bank for International Settlements (BIS), has recently spoken out about cryptocurrencies and their comparison to fiat currencies. According to Carstens, cryptocurrencies have lost the „battle“ against fiat currencies issued by world’s central banks. He claimed that stablecoins are not reliable because they lack the necessary „institutional arrangements and social conventions“ needed for them to function properly as a form of currency.

Stablecoins Do Not Benefit from Regulations

Carstens noted that technology alone does not make for „trusted money“. He also pointed out in his speech at the Monetary Authority of Singapore that there will always be different visions for what a future monetary system should look like, but he disagrees with some cryptocurrency proponents who believe stablecoins will be the future of money. He believes these proponents forget what sustains fiat currencies and insisted that it is only through legal, historical infrastructure behind central banks can give great credibility to money.

Stablecoins Cannot Guarantee Singleness of Money

Carstens continued by noting how events from this past year have raised serious concerns about whether or not stablecoins can actually function as money. He explained how these tokens rely on the credibility of fiat currency but with fewer regulatory protections which means they cannot guarantee singleness of money or lender-of-last-resort support.

Central Bank Digital Currencies May Be More Reliable

The BIS general manager suggested that perhaps central bank digital currencies may be more reliable than other forms such as stablecoins due to having more robust institutional backing systems in place to support them. This would provide greater assurance in terms of ensuring singleness across multiple digital assets and providing lender-of-last resort support if necessary.

Conclusion

Overall, Agustin Carstens‘ opinion on cryptocurrencies is clear – while technology may play a role in providing an alternative vision for a monetary system, it cannot replace legal and historical infrastructure provided by central banks which give greater reliability and trustworthiness to money itself. Stablecoins do not benefit from this type of institutional backing or protection making them less reliable compared to other forms such as central bank digital currencies.

• U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has proposed amending federal custody rules to cover „all crypto assets.“
• The proposal would help ensure that customer assets are properly segregated, require advisers and qualified custodians to enter into written agreements with each other, and enhance requirements for foreign financial institutions.
• Gensler also warned investors not to rely on crypto trading and lending platforms as qualified custodians.

SEC Proposes Amending Federal Custody Rules

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has proposed amending federal custody rules to cover „all crypto assets.“ This expanded custody rule will help ensure customer assets are properly segregated, require advisers and qualified custodians to enter into written agreements with each other, and enhance requirements for foreign financial institutions.

Custodian Regulations Apply to Discretionary Trading

Under the proposal, the regulations would apply to discretionary trading — when an adviser would seek to buy or sell an investor’s assets on behalf of an investor. Current regulations already cover „a significant amount of crypto assets,“ Gensler pointed out, noting that most crypto assets „are likely to be funds or crypto asset securities covered by the current rule.“

Crypto Trading Platforms Not Qualified Custodians

Gensler warned investors not to rely on crypto trading and lending platforms as qualified custodians, emphasizing: “Though some crypto trading and lending platforms may claim to custody investors’ crypto, that does not mean they are qualified custodians.“ He further elaborated: “Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.“

Proposal Requires Annual Evaluations & Account Statements

The proposal also sets out certain requirements for those offering crypto custody services such as requiring annual evaluations from public accountants; providing account statements; and providing records upon request.

Proposal Aims To Protect Investors‘ Assets

The SEC chairman emphasized that this proposal is aimed at protecting investors‘ assets: “Today’s proposal in covering all asset classes, would cover all crypto assets … [It] would help ensure that customer assets are properly segregated … [and] make explicit that the custody rule’s safeguards apply to discretionary trading.“

• Bitzlato Co-Founder Anton Shkurenko has been arrested in Russia by the request of Interpol.
• The arrest was due to suspicions of extortion, data theft, and money laundering from French investigators.
• Bitzlato is a Hong Kong-registered exchange that processed over $700 million in illicit funds.

Bitzlato Co-Founder Arrested

Russian authorities have reportedly arrested the second co-founder of seized cryptocurrency exchange Bitzlato, Anton Shkurenko. The man was detained at the request of Interpol and may face extradition to France due to suspicions of extortion, data theft, and money laundering.

Background Information on Bitzlato

Bitzlato is a Hong Kong-registered exchange which was established in 2017 by Shkurenko and his partner Anatoly Legkodymov. Before launching as an exchange it operated as a trading bot called BTC Banker which facilitated peer-to-peer transactions. It is said to have processed over $700 million in illicit funds received from criminal entities like Hydra and Finiko darknet market and Russian crypto pyramid respectively.

Arrests Related To Bitzlato

Legkodymov was arrested by U.S authorities in Miami last month while other three executives — CEO, financial director, marketing director — and a system administrator were detained in Spain and Cyprus by Europol authorities last month. Moreover, French law enforcement authority took control of its website and servers following further investigations into allegations that criminal proceeds from ransomware attacks, hacks scams, extortions passed through Bitzlato with Binance transferring cryptocurrency worth nearly $346 million for the platform according to Chainalysis blockchain analytics firm data.

Shkurenko Plans To Relaunch Exchange In Russia

The news of his arrest comes after last week he said in an interview with a crypto Youtube channel that Bitzlato’s remaining team intends to relocate the business to Russia and relaunch operations including withdrawals. Although there are no details available yet regarding how this plan will unfold if it does at all given current circumstances or whether any part of it can be implemented without being monitored closely by Russian authorities remains unclear yet as well as what regulations will be set forth for such an endeavour if any at all.

Extradition Decision Pending

It is yet unknown whether Russian authorities decide to extradite Anton Shkurenko or not but it appears inevitable at this point since they already cooperated with Interpol’s arrest request instead of blocking it off entirely or attempting to investigate further domestically only.

• Bitzlato, a Russia-linked cryptocurrency exchange seized by Western law enforcement, plans to relaunch and permit partial withdrawals.
• The company intends to relocate its business operations to the Russian Federation.
• Co-founder Anton Shkurenko has assured customers that the platform will provide access to their funds soon.

Bitzlato Cryptocurrency Exchange Shut Down by Law Enforcement

Cryptocurrency exchange Bitzlato was shut down in January as part of an international law enforcement action described by U.S. authorities as a „blow to crypto crime.“ It allegedly processed $700 million of illicit funds received from criminal entities such as the darknet market Hydra and the Russian crypto Ponzi scheme Finiko. Its other co-founder, Anatoly Legkodymov, who is a Russian national residing in China, was arrested in Miami and several other team members were detained in Europe. The service was disrupted with the participation of French authorities who took control of its servers and took down its website.

Co-Founder Vows to Restore Operations & Allow Partial Withdrawals

In an interview with Satoshkin Live, a Youtube channel devoted to crypto investment and trading, Bitzlato’s co-founder Anton Shkurenko vowed to restore operations and immediately permit customers to withdraw bitcoin. He said that French officers had been able to seize Bitzlato’s hot wallet which at the time stored around 35% of user funds in various cryptocurrencies however he did not specify the exact amount but denied reports claiming that the total exceeds $1 billion. Shkurenko also denied accusations that the company has evaded taxation and assured it has always complied with know-your-customer and anti-money laundering regulations under European laws while cooperating with law enforcement to prevent illegal activities.

Four Team Members Arrested

Four team members have been arrested with the participation of Europol – Executive Director Mikhail Lunev, Marketing Manager Alexander Goncharenko, contractor Pavel Lerner (working on Monolithos DAO) and system administrator Konstantin (who was later released on bail in Cyprus). The company is currently auditing its losses due to this incident according ot Shkurenko’s statement during his interview with Dmitry Stepanin from Satoshkin Live Youtube channel.

Reopening Plans Include Moving Operations To Russian Federation

The co-founder also expressed hope that soon all charges would be dropped against all arrested people and added that they intend to relocate their business operations into Russia while still providing access for users‘ funds when they reopen again soon.

Conclusion

Bitzlato is taking steps towards restoring its services soon while allowing customers partial withdrawals of their holdings from before being shut down due to western law enforcement actions earlier this year as well as relocating their operations within Russia for future protection against any similar occurences again in future times ahead .

• Blur, the non-fungible token (NFT) marketplace, has seen a significant increase in volume since its launch in October.
• According to statistics from Dune Analytics, Blur has captured about 30% of the market share in terms of sales volume, rivaling industry leader Opensea.
• The platform has scheduled the launch of its native token, which was originally planned for January 2023 but delayed, to Feb. 14, 2023.

The non-fungible token (NFT) marketplace, Blur, has seen a significant boost in volume since its launch in October. The platform has gone from relative obscurity to becoming a major player in the market, rivaling industry leader Opensea. According to statistics from Dune Analytics, Blur has captured around 30% of the market share in terms of sales volume, making it the second-largest NFT marketplace in the world.

The platform has also announced the upcoming launch of its native token, which was originally planned for January 2023 but delayed. The token is now scheduled to be released on Feb. 14, 2023. The platform tweeted, “We know this is past our initial estimate of January and we’re sorry for the delay. We’re trying new things and the extra two weeks will allow us to deliver a launch that hasn’t been done before.”

Seven-day metrics from Dappradar.com indicate that Blur has recorded $33.06 million in NFT sales. This is a significant increase from the platform’s total sales of just $8.3 million in the first week of October. The platform’s 24-hour sales statistics indicate that Blur’s sales over the last day totaled $5.08 million, compared to Opensea’s $16.24 million.

The platform’s surge in popularity is likely due to the airdrop of 120 million LOOKS tokens, or 12% of the total supply, to the Looksrare community in 2021. The airdrop likely attracted a lot of attention to the platform and increased its user base.

With the launch of its native token on the horizon, it looks like Blur is well on its way to becoming a major player in the NFT market. Many are optimistic that the platform will be able to continue its impressive growth and solidify its place as a leader in the space.

• European law enforcement authorities have detained four more members of the crypto exchange Bitzlato team.
• Bitzlato is accused of facilitating the laundering of large amounts of criminal proceeds.
• Police have conducted eight home searches and seized wallets with €18 million ($19.5 million) worth of cryptocurrency.

European law enforcement authorities have conducted an international investigation against crypto exchange Bitzlato, resulting in the detention of four more members of the Bitzlato team and the dismantling of its digital infrastructure. The investigation is a joint effort between the U.S. and France, as well as Belgium, Cyprus, Portugal, Spain, and the Netherlands. Europol, the European Union Agency for Law Enforcement Cooperation, announced the news on Monday.

The Hong Kong-registered coin trading platform is suspected of facilitating the laundering of large amounts of criminal proceeds, with Europol estimating that nearly half of the funds processed through Bitzlato were associated with various criminal activities. Last week, the U.S. announced the arrest in Miami of its co-founder and majority owner Anatoly Legkodymov, a Russian national residing in China.

In addition to Legkodymov, four more individuals have been detained in Europe as part of the investigation. Among them, the CEO, financial director, and marketing director of the exchange who were arrested in Spain, and another person handcuffed in Cyprus.

As part of the investigation, police have conducted eight home searches. This included four searches in Spain, one address in the U.S., two in Portugal, and one in Cyprus. The searches led to the seizure of wallets with €18 million ($19.5 million) worth of cryptocurrency, vehicles, computers, hard disks, and documents.

The investigation is still ongoing, and although the exchange infrastructure has been dismantled, it is unclear if any other arrests will be made in the near future. Bitzlato has yet to respond to the accusations.

• A Belarusian citizen was fined 2,700,000 Belarusian rubles (approximately $1 million) for illegally trading cryptocurrencies online.
• The fine was imposed by the Economic Court of Minsk after the man was found to have used the Telegram messenger to set up his own online cryptocurrency exchange.
• The Supreme Court of the Republic of Belarus rejected the man’s appeal against the fine, which was deemed fair given that he was making 5,400,000 rubles as income from his illegal activities.

A Belarusian citizen has been ordered to pay a hefty fine of 2,700,000 Belarusian rubles (approximately $1 million) for engaging in illegal cryptocurrency trading activities. The man, identified only by the initial ‘A’, was found to have used the Telegram messenger to set up his own online cryptocurrency exchange in January 2021. The exchange facilitated the trading of digital assets outside the law, with the man earning 5,400,000 rubles in income from his illegal activities.

Law enforcement authorities in Belarus, where certain cryptocurrency activities are legal, were able to trace the man’s transactions and present the gathered evidence to the judiciary. As a result, the Economic Court of Minsk imposed the fine, deeming it fair as the man could have been ordered to part with the full amount of his income. The man appealed the decision to the Supreme Court of the Republic of Belarus, but the court rejected his appeal, upholding the original ruling.

Belarus legalized certain crypto-related activities such as mining and trading with a decree signed by President Alexander Lukashenko in 2018. However, the government has been cracking down on those who engage in illegal crypto activities, as evidenced by this case. Those who wish to partake in such activities are required to register under the special legal and tax regime of the Belarus Hi-Tech Park in order to stay within the law.