Name: Crypto crisis continues; BlockFi files for bankruptcy
Uploaded: 2022-11-29T12:31:04.000+05:30
Duration: T00M53S
Channel: Editorji News Desk
Description: Crypto lenders fallout continue; BlockFi files for bankruptcy

Other cryptocurrencies are also in the green, with Ethereum (ETH) topping the $1,400 level 

Bitcoin jumps above $18,000 amid cryptocurrency winter 

Other cryptocurrencies are also in the green, with Ethereum (ETH) topping the $1,400 level&nbsp;

After facing plenty of setbacks in 2022, Bitcoin on Thursday surged to its highest price in nearly a month.&nbsp;
According to reports, this spike came on the back of expectations that inflation is cooling and the Federal Reserve will slow the pace of interest-rate hikes.&nbsp;&nbsp;
The second most popular token, ethereum also gained about 5% to $1,401. Meanwhile, dogecoin was also trading over 5% higher at $0.08.&nbsp;
The surge in crypto prices also comes after failed Crypto exchange FTX managed to recover more than $5 billion in different assets.
Bitcoin is down about 74% from its November 2021 all-time high of $68,990.
Overall, the global cryptocurrency market cap today remained below the $1 trillion mark, even as it was up over 4% in the last 24 hours to $926 billion, as per the data by CoinGecko.&nbsp;

The sector also hopes that the government would allow crypto investors to offset and carry forward their losses to create a level-playing field for virtual digital assets (VDAs) in India

Budget 2023: Crypto industry expectations from FM Nirmala Sitharaman

The industry hopes that the government would allow crypto investors to offset and carry forward their losses to create a level-playing field for virtual digital assets (VDAs) in India

Crypto trading volumes in India took a big hit, crashing as much as 90% after the introduction of 30% crypto tax in the last budget. In this scenario, the industry has listed a slew of expectations from the union budget.&nbsp;
The crypto industry is hoping that FM Sitharaman announces a proper regulatory framework for homegrown crypto exchanges. Also on the wishlist is more clarity on the impending Crypto Bill, as well as some relief on crypto taxation (which stands at 30 per cent currently).&nbsp; Tarusha Mittal, Co-founder and COO, UniFarm and Dapps, says, &ldquo;the government should frame strong regulations for the sector in light of the FTX crisis [which wiped out billions of dollars in global investor money] especially for centralized bodies dealing with crypto.&rdquo;
The sector also hopes that the government would allow crypto investors to offset and carry forward their losses to create a level-playing field for virtual digital assets (VDAs) in India. Crypto bosses further expect the TDS exemption limit to be raised &ldquo;to a reasonable level&rdquo;.

In Budget 2022, the govt took a conservative stand on taxation by announcing flat 30% on income from digital virtual assets or crypto

Crypto tax impact: Crypto trade in India takes big hit

Crypto exchange trade in India down by ₹32k cr since...

Crypto crisis in India 

In Budget 2022, the govt announced a 30% tax on income from digital virtual assets or crypto. Since then, cryptos worth 32,000 crore has been moved from Indian to foreign crypto exchanges.

It has been over a year since the Indian government announced a 30 per cent tax on the income from crypto assets and one per cent tax deduction, but the real repercussions are being seen now.
According to reports, cumulative trade volume worth Rs 32,000 crore has shifted from Indian crypto exchanges to foreign ones between February to October.&nbsp;
In February and March 2022, domestic centralised crypto exchanges lost 15 per cent of their total trading volumes. Between April and June, they lost another 14 per cent, and 81 per cent of all trading volume was lost between July and October.&nbsp;
Apart from India, the crypto market saw a massive sell-off in 2022. The total market cap has fallen from over $2 trillion at the end of 2021 to $819 billion. Several exchanges, including FTX, have filed for bankruptcy. The price of Bitcoin, the largest crypto token by market cap, has fallen over 70 per cent since its peak in November 2021.&nbsp;

Bankman-Fried pleaded not guilty to all eight counts against him -- five of which carry a maximum sentence of 20 years in prison each

Ex-crypto boss Bankman-Fried pleads not guilty to fraud

Bankman-Fried pleaded not guilty to all eight counts against him -- five of which carry a maximum sentence of 20 years in prison each

FTX co-founder Sam Bankman-Fried pleaded not guilty Tuesday to US criminal fraud charges over the spectacular collapse of his crypto exchange.
The 30-year-old former digital currency billionaire, who is out on bail, entered the plea in federal court in Manhattan before New York judge Lewis Kaplan.
FTX and its sister trading house Alameda Research went bankrupt in November, dissolving a virtual trading business that at one point had been valued by the market at $32 billion.
The United States has charged Bankman-Fried with conspiracy, wire fraud, money laundering and election finance violations.

Ethereum and Bitcoin have underlying platforms that are being used to build other web3 applications

Year ender 2022: these coins are the most held cryptos in India

These crypto coins are the most held cryptos in India

2022: Most held cryptos in India

Ethereum and Bitcoin have underlying platforms that are being used to build other web3 applications

Despite having one of the worst years for cryptocurrencies, Indian investors avoided panic selling.&nbsp;
According to a report by crypto exchange CoinSwitch, which claims to have over 19 million users said&nbsp;Bitcoin was the most held crypto asset, with 12% of users opting to invest in the world&rsquo;s most valuable crypto asset. This was followed by Dogecoin, Ethereum and Shiba Inu, which saw investments from 11.54%, 9.43% and 6.92% users, respectively.
The CoinSwitch report also said that investors in the age group of 18-25 years, which includes GenZ population, accounted for the highest (45%) crypto investments, while 34% of the investors were millennials in the age group of 26-35 in India.

Trump launches new NFT digital trading card collection

The Trump Digital Trading Cards feature images of the president in a style similar to collectible baseball cards

Former U.S. President Donald Trump has become the latest celebrity to jump on the NFT bandwagon with the release of his own NFT collection dubbed the Donald Trump Digital Trading Card collection.
Trump revealed the new collection via a post on his social media platform Truth social, saying the limited edition cards feature &ldquo;amazing ART&rdquo; from the former reality TV star&rsquo;s life and career. At a going price of $99 per card, Trump urged his followers to hop on the opportunity while it lasts.
The pop-up promotes a guaranteed ticket to a gala dinner with Trump for purchasing 45 NFTs at once. This would cost a customer $4455.
While this is President Trump's first official NFT project, the former First Lady, Melania Trump, launched her debut NFT collection "Cobalt Blue Eyes" almost exactly a year ago. &nbsp;

On November 11, Bankman-Fried resigned as FTX filed for bankruptcy protection

Former FTX CEO Sam Bankman-Fried apologizes, says didn't 'try to commit fraud'

On November 11, Bankman-Fried resigned as FTX filed for bankruptcy protection

Former FTX Chief Executive Sam Bankman-Fried apologized Wednesday for a "lot of mistakes" in the abrupt collapse of the cryptocurrency firm and said he did not knowingly behave fraudulently.
"I didn't ever try to commit fraud on anyone," Bankman-Fried told the Dealbook conference hosted by CNBC and The New York Times.
"I'm deeply sorry about what happened," Bankman-Fried said. "Clearly I made a lot of mistakes or things I would be able to give anything to be able to do over again."
On November 11, Bankman-Fried resigned as FTX filed for bankruptcy protection while facing a large financing shortfall and a deluge of withdrawals from panicked customers. The firm at its peak had been worth some $32 billion.
At the time, FTX had taken some $10 billion in customer funds without authorization, according to the Wall Street Journal.

Citizens and officials alike have resorted to accessing online Yellow Pages for finding contact numbers and private email accounts for basic communication.

One month after malware attack, this island nation has resorted to pen and paper for official work

Citizens and officials alike have resorted to accessing online Yellow Pages for finding contact numbers and private email accounts for basic communication.

Nearly a month since a cyberattack hit government-linked portals, the Pacific island nation of Vanuatu continues to function offline.&nbsp;
The Guardian reported that officials have switched to using private laptops and pen and paper to go about day-to-day functions. The attack affected websites of the country's parliament, police and the prime minister's office.&nbsp;
It also hacked the email system, intranet and online databases of schools, hospitals and other emergency services, the BBC reported. &nbsp;
Citizens and officials alike have resorted to accessing online Yellow Pages for finding contact numbers and private email accounts for basic communication. Some departments are reportedly functioning from their Facebook pages and Twitter.&nbsp;
With departments struggling to stay connected, impromptu solutions are being implemented for communication but outer islands government offices are suffering sharp delay in services, said The Guardian report.&nbsp;
Essentially anyone with a gov.vu email or domain has been affected, locals told the BBC. Private servers like airlines and hotel websites were not affected and business has continued as usual.&nbsp;
The Vanuatu government has remained tight-lipped about the malware attack however an Australian newspaper reported that the hackers demanded a ransom which the government refused to pay.&nbsp;
Problems with the government servers were noticed about a month ago when emails with public IDs were bouncing back and websites became inaccessible and some being redirected to sites of hackers believed to be behind the attack, according to multiple reports.&nbsp;
While the government says that the attack occurred on November 5, sources of the Vanuatu and Australian governments told The Guardian that systems went down on October 30. &nbsp;
Also Watch| <a href="https://www.editorji.com/world-news/watch-mauna-loa-volcano-s-eruption-in-38-years-threatens-populated-areas-1669711666395">Mauna Loa volcano's eruption in 38 years threatens populated areas</a> &nbsp; When the attack first hit, authorities first attributed the problem to damaged internet infrastructure. But an Australian official says that they recognised the attack having hallmarks of a cyber attack and not being caused by weather.&nbsp;
Matters grew worse once internal communication started becoming tougher each passing day. Prime Minister Kalsakau officially assumed office on November 4. And one day later the government acknoweldged the problem.
The present system can be fixed by upgrades to the software and uploading files on the cloud for better management, says an analyst working with the Ministry of Finance. However, local officials lack the expertise to do so and require 'outside assistance'. Reports say that the country has sought help from its aid partner Australia to restore the systems. There is no concrete reason as to why Vanuatu was targeted but as per a BBC report, there have been speculations that the hack may have been carried out from Indonesia. For a long time now, says the report that Vanuatu has supported the independence demands of Indonesian province of West Papua. The Indonesian military has been accused of human rights abuses in the region.&nbsp; The report goes on to say that another reason could be Vanuatu's position in the Pacific region, the country has key relations with the US, China, Australia and New Zealand.&nbsp; Recently, Vanuatu has developed close ties with China. Beijing has invested heavily in Port Vila and also has an embassy in the capital. While Washington's representation is located in Papua New Guinea, accessible via a 3-hour flight.&nbsp; Vanuatu's longest diplomatic relation, however, has been with Australia, its largest aid donor and closest security partner.&nbsp;

Cryptocurrency is a new challenge against terrorism: Home Minister Amit Shah

Amit Shah on Cryptocurrency & terrorism

Terrorists are constantly finding new ways to carry out violence, radicalise youth and raise financial resources, shah said.

At a time when crypto market is already facing crisis with the total market capitalization of digital assets has fallen this month below $800 billion, a level not seen since early 2021, Union Minister is warning an increase in the use of virtual assets like cryptocurrency.&nbsp;
"Additionally, there is an increase in the use of virtual assets like cryptocurrency. We need to understand the patterns of these darknet activities and find their solutions," Shah said.
The Home Minister was addressing the third 'No Money for Terror' Ministerial Conference and stressed on the need to build efficient operational systems against virtual asset channels. He said that despite fortifying the security architecture and financial systems, the terror groups are still successful in radicalizing youth and also raising funding for it.
Asserting that terrorism is, undoubtedly, the most serious threat to global peace and security, he said, "But I believe that financing of terrorism is more dangerous than terrorism itself because the 'means and methods' of terrorism are nurtured from such funding." "Furthermore, the financing of terrorism weakens the economy of countries of the world," he said addressing delegates at the conference hosted by the Ministry of Home Affairs here.

Price of bitcoin rose from $250 in August 2015 to peak at nearly $69,000 in November 2021

Three out of four bitcoin investors have lost money: study

Is Bitcoin Mania Over? 

Price of bitcoin rose from $250 in August 2015 to peak at nearly $69,000 in November 2021

Roughly three-quarters of people who have bought bitcoin have lost money according to a study published as the cryptocurrency sector reels from the collapse of a major exchange that has sapped confidence.
Economists at the Bank of International Settlements, an institution widely considered as the central banks of central banks, analysed data on investors in cryptocurrencies in 95 countries between 2015 and 2022.
"Overall, back of the envelope calculations suggest that around three-quarters of users have lost money on their bitcoin investments," they said in their study.
During the period studied, the price of bitcoin rose from $250 in August 2015 to peak at nearly $69,000 in November 2021. It is now trading at around $16,500.
The number of people using smartphone apps allowing one to purchase and sell cryptocurrencies rose from 119,000 to 32.5 million during the same period.

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Avalanche in Sonamarg

Crypto lenders fallout continue; BlockFi files for bankruptcy 

Crypto collapse continues

BlockFi listed its assets and liabilities as being between $1 billion and $10 billion

Major cryptocurrency lender BlockFi has becomes that latest lender to filed for bankruptcy, following the implosion of putative acquirer FTX.
In a court filing, New Jersey-based BlockFi said it owed money to more than 100,000 creditors. It listed crypto exchange FTX as its second-largest creditor, with $275m owed on a loan extended earlier this year. The company also said in a separate filing it plans to lay off two-thirds of its 292 employees.
The filing in a New Jersey court comes as crypto prices have plummeted. The price of bitcoin , the most popular digital currency by far, is down more than 70% from a 2021 peak.&nbsp;
New Jersey-based BlockFi, founded by fintech executive-turned-crypto entrepreneur Zac Prince, said in a bankruptcy filing that its substantial exposure to FTX created a liquidity crisis. FTX, founded by Sam Bankman-Fried, filed for protection in the United States this month after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal.

Federal Reserve decision on Wednesday is the next key catalyst, cryptos show signs of fundamental strength

White House blasts on cryptocurrencies; says 'have no fundamental value’

Federal Reserve decision on Wednesday is the next key catalyst, cryptos show signs of fundamental strength

In its latest economic report, the White House has made some scathing comments on digital assets. The report features an entire chapter which points out flaws in the crypto ecosystem as well as raises serious concerns.&nbsp; This report, which casts doubts on the merits of crypto assets, has the crypto industry outraged.&nbsp;
The report, looked at a number of claims from the crypto industry, ranging from cryptocurrencies' role as investment vehicles and payment tools to its potential use in payment infrastructure, saying that "many of them do not have a fundamental value".&nbsp;
It also includes various disasters in the crypto sector, including last year's TerraUSD collapse, BitConnect and FTX, which were cited as examples of how everyday Americans were harmed.
Report comes amid growing industry concern that federal regulators are looking to de-bank crypto companies, though state and federal regulators have thus far denied these claims. Still, the tone of the report is unlikely to assuage these concerns. Meanwhile, most cryptocurrencies have gained momentum in the recent days with Bitcoin's price hovering above the $28,000 level for the first time since June 2022. The largest digital coin has gained roughly 25% since March 8, when signs first emerged of trouble around Silicon Valley Bank (SVB), which has since folded and ignited turmoil among other lenders.&nbsp;

Bitcoin hovered near nine-month highs on Monday, and has closed out its best week in four years 

Bitcoin nears 9-month high; here's what driving the recent surge in price

Bitcoin nears 9-month high

Bitcoin hovered near nine-month highs on Monday, and has closed out its best week in four years&nbsp;

As the turmoil in traditional banking drives some investors to turn to digital assets, the biggest cryptocurrency, Bitcoin surpassed $28,000 for the first time since June 2022.&nbsp;
Bitcoin's market value fell 1.8% to $27,549 after hitting its highest since June last year, on Sunday at $28,474 .
It rose 26% last week and is up more than 35% in ten days as turmoil in the banking sector has sent&nbsp; shockwaves around the globe &mdash; beginning with the collapse of Silicon Valley Bank and culminating, so far, in UBS&rsquo; takeover of Credit Suisse at a discount over the weekend.
Ethereum, the second-biggest cryptocurrency, also rose to a seven-month high of $1,846.50 on Sunday and was last at $1,768.

On Friday, Bitcoin fell to a 2 month low, below $20,000 mark. 

Crypto meltdown: Over $70 billion wiped off crypto market in 24 hours

On Friday, Bitcoin fell to a 2 month low, below $20,000 mark. As per reports, the cryptocurrency market saw more than $70 billion wiped off in 24 hours&nbsp;

The meltdown in the cryptocurrency market was triggered by a sell-off in the U.S following the collapse of a crypto-focussed lender, Silvergate Capital.&nbsp;
On Friday, Bitcoin fell below the $20,000 mark hitting a two-month low. As per a report by CNBC, the cryptocurrency market saw more than $70 billion wiped off in 24 hours.&nbsp;
&ldquo;There is just little reason to buy bitcoin now as the market is saturated with negative developments, not just specifically for the crypto industry, but also for the wider financial market as well,&rdquo; Yuya Hasegawa, an analyst at Japanese crypto firm Bitbank, told CNBC.&nbsp; On Wednesday, Silvergate Capital said it was planning to wind down operations and liquidate voluntarily. This development also reflects how the collapse of major cryptocurrency exchange FTX continues to have an impact on the industry. FTX was a big customer of Silvergate.&nbsp;
Meanwhile, U.S. Federal Reserve Chairman Jerome Powell's recent comments have opened the door to more rate hikes and at a faster pace than earlier anticipated. The high interest rates have particularly been impacting the cryptocurrency market and Powell's comments are another contributing factor to the crypto meltdown.&nbsp;
&nbsp;

Crypto trading and all related financial services will now come under the PMLA (Prevention of money laundering act). This is as per a notification issued by the finance ministry. 

Crypto transactions brought under money laundering law 

Crypto trading and all related financial services will now come under the PMLA (Prevention of money laundering act). This is as per a notification issued by the finance ministry.&nbsp;

The government has imposed anti-money laundering provisions on cryptocurrencies or virtual assets as it looks to tighten oversight of digital assets.
In a gazette notification, the Finance Ministry said the anti-money laundering legislation has been applied to crypto trading, safekeeping and related financial services.
After this, Indian crypto exchanges will have to report suspicious activity to the Financial Intelligence Unit India
The move is in line with the global trend of requiring digital-asset platforms to follow anti-money laundering standards similar to those followed by other regulated entities like banks or stock brokers.
Digital currency and assets like NFTs (non-fungible tokens) have gained traction globally over the last couple of years. Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India till last year, did not have a clear policy on either regulating or taxing such asset classes.
The notification said, "Exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets, and participation in and provision of financial services related to an issuer's offer and sale of a virtual digital asset" will be now be covered by Prevention of Money-laundering Act, 2002.
Virtual digital assets were defined as any code or number or token generated through cryptographic means with the promise or representation of having inherent value.
Last month, Finance Minister Nirmala Sitharaman told Parliament that India was discussing with the G-20 member countries the need to develop a standard operating protocol for regulating crypto assets.
She had said crypto assets and Web3 are relatively new and evolving sectors and require significant international collaboration for any specific legislation on these sectors to be fully effective.
Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on the evaluation of the risks and benefits and evolution of common taxonomy and standards.
In the Budget for 2022-23, she had brought a 30 per cent tax on income from transactions in such assets. Also, to bring such assets under the tax net, she introduced a 1 per cent TDS (tax deducted at source) on transactions in such asset classes above a certain threshold. Gifts in crypto and digital assets were also taxed.

October alone saw £629m stolen- the most recorded in a single month

Crypto hacking: 2022 was the biggest year ever, North Korea has the most hackers

Crypto hacking: 2022 was the biggest year ever, this country has the most hackers

October alone saw &pound;629m stolen- the most recorded in a single month

2022 was indeed a challenging year for crypto industry after bankrupt cryptocurrency exchange FTX had around $1.4 billion in cash as of the end of 2022. But this is not all, a new report &nbsp;by US-based blockchain analytics firm, Chainalysis says that 2022 was the biggest year ever for the Crypto hacking.&nbsp; 
<h3>Crypto hacking</h3>
 According to reports, October 2022 alone saw &pound;629m stolen- the most recorded in a single month. It further said that North Korea-backed hackers stole $1.7bn (&pound;1.4bn) of crypto in 2022, says blockchain analysis firm Chainalysis.&nbsp; The annual report by Chainalysis, a blockchain analysis firm which sees its data used by governments, banks, and businesses worldwide, says the activity was largely driven by hackers based in North Korea. Experts have said the country, facing heavy sanctions, is turning to crypto theft to fund its nuclear arsenal.

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