Regulatory Investigations Compel PayPal to Pause its Stablecoin Project

The latest report from Bloomberg has revealed that the PayPal platform, through it’s PayPal Holdings, is halting its most anticipated stablecoin. This decision is linked to the latest scrutiny of the cryptocurrency industry by the United States government. One such example is the ongoing probing of Paxos by the US government through the NY State Department of Financial Services. 

Another credible news source has also reported that the company has been working on this said stablecoin project with the help of Paxos Trust: one of the top stablecoin companies in the United States. PayPal was said to be ready to launch the said stablecoin anytime from next month. But the story emerging from that quarters has revealed that they have halted all the plans till further notice.

Although they did not specify when they wish to continue with the project, there has been speculation that it will be until the US government case with Paxos is over. The Paxos scrutiny started earlier this year after the US regulatory authorities following the massive crackdown on the entire crypto ecosystem.

Paxos is Not the Only Victim

It was stated that Paxos isn’t the only cryptocurrency company under intense investigation by the authorities. Earlier this month, the top cryptocurrency exchange Kraken was under fire by the United States Security and Exchange Commission. According to the report, SEC is on a mission to clamp down on crypto companies operating or developing a staking project. 

Investigations gathered that Kraken has agreed to pay the commission a $30M fine and suspend their staking operations. With this development, PayPal, through its spokesperson Amanda Miller, through an official statement, made it clear that even if they should continue with their said stablecoin program, they will abide by the rules of the authorities.

They further explained that their stablecoin program would comply fully with US financial regulations. She also added that the company is still exploring the stablecoin space. From expert analysis, it was discovered that Paxos are not the only ones facing scrutiny by the authorities; PayPal is also having a fair share of the process as they have also been accused of poor customer treatment. One example is customers that mistakenly send funds to the wrong accounts via Venmo.

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David Schwartz Leaves the Entire Ripple Community Puzzled

A tweet from Ripple’s Chief Tech Officer has puzzled most people in the Ripple online community. This tweet came when the company’s Ledger creator and top executives made a joke yesterday about how they peed in a pool. In the tweet, David Schwartz: the Chief CTO, said that he heard one could pee in a pool full of co-swimmers and nobody would notice.

As funny as this tweet might be, the Ripple community found it rather weird; some laughed it off for what it was. It has also continued to generate more reactions from all corners of the crypto industry. According to some comments that followed the tweet, they believe there may be more to it than just David peeing in the pool. While others see the tweet in a literal sense, others believe it is cryptic.

After studying some of these tweets, those who believe the said joke is a cryptic message went ahead to explain that the pool David mentioned was the “liquidity pool” and not a swimming pool as most people think. This has sparked so much online debate that some other ‘tweeps’ believe it doesn’t have any such connection.

There has also been an analytical tone to this tweet as experts have dabbled into it. Popular industry analysts believe that Mr. David Schwartz’s tweet may be cryptic after all, referencing the ongoing testing of some AMM, also called the automated market maker specially designed for XRP Ledger.

It was disclosed that when describing the function of this new testing, David was heard saying that the AMM system can offer special benefits to each user. According to him, one of the benefits is helping users with single-sided “liquidity.” The last word of this statement is said to have a direct connection to the estranged tweet by David Schwartz; hence, it might be a cryptic message after all.

And Hoskinson Gets Involved

As the tweet kept gathering momentum, prominent names in the industry kept picking interest. One such name is Charles Hoskinson: the Cardanor boss himself. Mr. Hoskinson’s reaction was said to be cordial as he went ahead to appreciate it as a mere joke with no deeper meaning. He was reported saying that it is just another way he (David) has decided to share his personal story.

 Mr. Hoskinson laughed it off, describing it as the best tweet he had seen the whole day. Stories also have it that Hoskinson once had a rocky relationship with the  XRP community in the past. But it seems that the tweet has given him the opportunity to acquit himself of the malice he has previously been accused of.

Hoskinson’s comment on the position of SEC and Ethereum had made him the most misunderstood person in the industry and was widely seen as weird among the XRP community. Also, recall that sometime in December last year, Mr. Hoskinson was reported to say that he won’t be commenting on the XRP topic. He was also recorded saying that he would stay away from any XRP community that doesn’t offer any technical importance or an opportunity for partnership.

It Might Be a Bait Post

On the other hand, comments coming from other social media camps suggest that this is a deliberate attempt by David Schwartz to lure Charles Hoskinson. They also assert that their relationship has been odd since whatever transpired between them in December. This group of Twitter users believes that David was just trying to reach out to a friend they believe may be having some grudges against him – and from the look of things, he may have succeeded. 

Other prominent figures who commented on the tweet with their fun-fare stories are Tiffany Hayden, a politician and the Libertarian party member who had recounted her childhood experience with the mother. More comments by popular figures from in and outside the crypto industry are still coming in, as the post is still trending at the time of this report.

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NYC Female Resident Arrested, Dragged to Court for Financing Syria Terror Group Using Crypto

A New York female resident is being dragged to US for financially sponsoring the activities of a terror group in far away Syria. Victoria Jacobs, a 43-yr-old, has also been accused and taken to court on 11-count charges. Also called Bakhrom Talipov, aside from terrorism cases, Victoria was accused of helping this terror group launder money.

Victoria was also accused of giving material assistance to a terror group called the Hayat Tahrir al-Sham. Note that the Hayat Tahrir al-Sham was tagged a terror group by the US Government.

It was reported that she (Victoria) had provided the group with the monetary support of about $5k. Further investigations revealed that these funds were provided through a section of the terrorist group called Malhama Tactical, which is said to be the group’s training partner. The ‘Tactical’ is said to be responsible for rendering special military, logistics, and training to the Hayat Tahrir terror group.

Victoria’s Involvement in Financial Laundering and Supporting Terrorist Activities

Further investigations revealed that Victoria had also helped the Malhama Tactical group launder $10,661k through various financial transfer methods like WesternUnion (WU), Crypto channels, and other money transfer medium worldwide. She was reported to send these funds using a BTC wallet for the Tactical group. Aside from the conventional financial assistance she renders to these groups, report says that Victoria also help the group acquire other items like Google gift cards, etc. 

In the cause of the investigation, an indicting note was found on Victoria’s phone. In the note, an anonymous sender has to solicit funds for constructing a “train camp,” which they referred to as a “new place” in the note. The sender also went ahead to recommend the usage of an anonymous Bitcoin channel that will guarantee a safe transaction.

In another inducting situation, it was said that Victoria, in 2019, had provided an exclusive,  military handbook to the terror group via an online channel. It was reported that she forwarded this handbook to both al-Qaeda, and Hurras al-Din (which is an extension of the group). This was meant to help them enhance their bomb-making skill in Syria.

Investigations into her apartment disclosed some military equipment like combat dagger, and other dangerous military equipment that originally shouldn’t be in civilian possession.

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XRP Attorney Reveals Plans Against Crypto By The United States SEC

The recent news from the United States says that the US SEC is about to launch an all-out war against cryptocurrency. This has made most of the industry stakeholders question most of their decisions. In the recent development, most industry players have come out to examine the commission’s regulation on crypto. They have termed this regulation “overreached” and may be consequential to the crypto market.

Meanwhile, suggestions have started coming from every angle as regards this most recent development. The most interesting one came from the SEC, who, according to a source, said the commission is looking to ban cryptocurrency staking.

SEC Moves Against the Cryptocurrency

In reaction to the XRP suit, John Deaton commented on the rumor making rounds that the SEC is waging war against the cryptocurrency staking. In his statement, he claimed that the story is actually true: that Gary Gensler, the United States SEC boss, has declared an all-out war against the cryptocurrency. 

Meanwhile, the CEO of Coinbase, Brain Armstrong said he has also heard rumors about that effect. He said that the government, through some underground organizations, is working towards getting rid of cryptocurrency staking. Armstrong went ahead to advise top crypto multinationals to move their operations offshore, claiming that the government may use enforced regulations to frustrate their operations. 

Armstrong also has reasons to believe that the government was responsible for what happened to FTX and might try to repeat the process on others. He also reported saying that the enforcement technique won’t work because it even compels most crypto firms to consider moving their business offshore.

On the other hand, Sam Bankman: the lawyer representing XRP holders, has also come out to expose the people behind the FTX liquidation. He says he had several meetings with Gary Gensler and SEC on the issue, yet they did nothing to prevent the devastating collapse of the company. 

Meanwhile, Charles Hoskinson the Co-founder of Output Global and the Cardano token, has referred to the ETH staking system as problematic. According to the ADA co-founder, the idea of holders staking their digital assets just to get returns afterward makes the whole process look like a product regulated by some authority. 

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Bithumb Boss Jailed for Embezzlement and Related Crimes

Kang Jong-Hyun: the founder and Bithumb chairman has been sent to jail for crimes ranging from taking advantage of the market to embezzlement, fraud, and mismanagement. Bithumb is the biggest cryptocurrency exchange in S. Korea and has existed since 2014, with over 8 million global users. Jong-Hyon was arrested on Thursday after a court in Seoul ordered his arrest on the 25th of January. 

A report from the company’s headquarters says that Kang Jong-Hyun, 41, and the brother Kang Ji-Yeon, who is heading Inbiogen: an affiliate of Bithumb and one of the top shareholders in Vidente Vidente, which also owns a 34.2% share in Bithumb. The lawyer prosecuting the case also accused the brothers of deliberately conspiring and defalcating the company finances and tampering Inbiogen’s stock price

NTS Invades Headquarters, Company Exec Addresses Accusations

Inbiogen is not the only victim, Bucket Studio which is A video production company also fall prey to their deception while targeting their convertible bonds. However, Kang Jong-Hyon has offered an apology to the company’s shareholders through a video but still insist that the accusations against the brother are unfounded. In the video released by the S. Korean local media house, he said that he would align with the security agencies for a proper investigation.

Recall that on the 10th of January, officials of the NTS invaded the Bithumb headquarters in Seoul to verify if the company complied with the country’s tax regulations, as it affects the crypto regulation.

Experts analyzing the situation said that the event surrounding Bithumb story is bigger than most people think. It has been shrouded with so many secrets, one of them being the death of the company’s top shareholder, Park Mo, who was found lying lifeless very close to his house. The incident happened in December, and ever since, there have been other unexplained events surrounding the operations of Bithumb.

Investigations by the authorities into the event had that the late Park Mo, before his death, also went through an investigation by the authorities for the same allegation as the embattled Jong-Hyon. Meanwhile, reports from security claim that it was a case of suicide, even when close associates believes there is more to the story.

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