The SEC has charged 11 people in an alleged crypto pyramid and Ponzi scheme that raised over $300M from retail investors. The four founders of the Forsage scheme were among those charged, though their whereabouts are currently unknown. More: - The four founders are based in Russia, the Republic of Georgia, and Indonesia.
- They claimed Forsage to be a decentralized smart contract platform, and it raised funds illicitly for over two years in countries across the globe and in the U.S., according to the SEC.
- A total of 11 people were involved in promoting an allegedly fraudulent crypto-focused pyramid scheme. The SEC called the Forsage a "textbook pyramid and Ponzi scheme" that included:
- Millions of retail investors worldwide were duped into transacting via smart contracts using Ethereum, Tron, and Binance blockchains.
- Retail investors earned profits and made money by promoting and recruiting others to join the platform.
- Forsage is being accused of promoting smart contracts through online platforms; however, it did not sell "any actual, consumable product" and used assets from new investors to pay earlier ones, the SEC said.
- Forsage was launched in 2020, and several efforts were made to shut down its operations, including cease-and-desist notices in the Philippines and Montana in March 2021.
- The SEC chief of Crypto Assets and Cyber Unit said, "Fraudsters cannot circumvent the federal securities laws by focusing their schemes on smart contracts and blockchains."
CNBC 
| |
Ethereum's price dropped 6% as miners expressed concerns over its long-term future. The current trading price is sitting at $1,575 at the time of writing, which is down 67% from its all-time high of $4,891 in Nov. 2021. More: - The highly anticipated Merge event will likely occur next month following several delays.
- As of now, Ethereum runs on the same consensus model as Bitcoin, which requires miners to run consistently to verify transactions and maintain network security.
- The merge will be more environmentally friendly and switch to a proof-of-stake blockchain.
- Once the merge happens, miners will no longer maintain the network. Instead of purchasing farms of machines to validate transactions, users will need to stake 32 ETH to become a validator. These validators are rewarded by earning yield for their work.
- Miners are concerned about Ethereum's future, with some tweeting, "There is a lot of potential risk with ETH merge ... the fact that people have been working on it for years doesn't mean it will work out perfectly."
- The upcoming merge will not lower Ethereum gas fees; regardless of reaching a multi-year low on transaction fees, they are still higher than Bitcoin and competitors such as Solana.
- The upgrades increase scalability, and users can expect lower gas fees with a permanent update that will occur early next year.
- The current proof-of-work system pays miners gas fees for processing transactions; however, the proof-of-stake system will reward gas fees to stakers for lending their ETH to the protocol.
- Gas fees vary depending on the number of transactions being processed on the network and the price of ETH; fees declined this year as the price of ETH dropped.
- Ethereum plans to reduce its gas fees on the main layer through a process called sharding, which is designed to distribute data settlement more efficiently by breaking up the network into smaller pieces.
- Sharding is scheduled for early 2023; the company is also hoping that the merge will deflate token supply and drive up the price of ETH.
Decrypt
| |
 A message from COACHHUB How much is employee attrition costing your organization? As workplaces evolve, businesses need to invest in innovative ways to meet the diverse demands of their workforce―and see a return on their investment. Forrester’s Total Economic Impact of CoachHub study measured the results of innovation in learning and development. The results: Business costs related to employee attrition can be significantly reduced through innovation in learning and development.
This study provides a framework to evaluate the potential impact of CoachHub on their organizations as well as insights that articulate the benefits, costs and risks associated with an investment in people development.
In this report you'll learn: - The net present value of coaching totaled $3.3M over three years
- Digital coaching proved a 260% ROI
- Organizations studied showed a $4.3M cost savings linked to employee retention
Access your copy
| |
Tiffany's wants to charge CryptoPunk holders $50,000 to show off their NFTs. The company has partnered with Chain to launch 250 customized diamond and gemstone encrusted pendants with chains, dubbed "NFTiffs." More: - NFTiff buyers will receive a digital and physical version of the NFT valued at 30 ETH, which amounts to $51,000.
- If the company manages to sell all 250 NFTiffs, then it will launch a limited edition piece that could be priced at $12.7M.
- Tiffany & Co released a statement on its Twitter account, saying, "We're taking NFTs to the next level. Exclusive to CryptoPunk holders, NFTiff transforms your NFT into a bespoke pendant handcrafted by Tiffany & Co. artisans."
- The custom pendants will feature 30 diamonds or gemstones that hang on an 18K gold chain with five pave diamonds on the clasp.
- The jewelry is only available to people who own a CryptoPunk. The company has vowed to create a pendant "with the highest fidelity" consistent with the original CryptoPunk art piece.
Blockworks
| |
Earlier today, Gucci tweeted it would accept ApeCoin at some of its U.S. boutiques. The coin joins a growing list of cryptocurrencies accepted for payment by the high-end fashion house. More: - Gucci will now accept ApeCoin payments via BitPay.
- ApeCoin DAO uses ApeCoin as its governance and utility token.
- The DAO is best known for its association with Yuga Labs' Bored Ape Yacht Club.
- Previously approved crypto payments included Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and numerous stablecoins.
- The couture label announced it would accept select cryptocurrencies for payment in May this year.
- A few Gucci stores in large U.S. cities like New York, Los Angeles, Atlanta, Las Vegas, and Miami accept crypto payments.
- Gucci's Web3 initiatives are varied and include several NFT mintings with collaborators such as 10KTF, SUPERPLASTIC, and SuperRare.
Twitter
| |
 A message from VANTA Researching and committing to an automated security platform can be a confusing process. An automated platform can help you get compliant – quickly. The problem is, what exactly should you focus on when deciding which platform is right for you? Vanta’s guide will answer this question and more. Download the guide to learn more about: - The 5 features to look for in an automated platform
- How these features can accelerate your compliance process
- Why investing in the right compliance platform now can enhance your security in the future
Download your copy
| |
Hackers breached Nomad's token bridge and stole ~$190.7M worth of crypto. Initially, Nomad denied the theft. The company has since confirmed suspicions. At the time of writing, only $651.51 remains in the bridge's wallet. More: - Hackers infiltrated the bridge over hundreds of transactions.
- For example, thieves extracted $202,440.725413 (USDC) 200 times.
- The group stole several kinds of tokens from the wallet, including USD Coin, Card Starter, Saddle DAO, Wrapped Ether, and several others.
- The security flaw came from a routine upgrade that allowed bad actors to skip verification messages. Others copied and pasted the original transaction, replacing the hacker's number with their own, and drained the bridge over a few hours.
- Nomad is "currently investigating the incident."
- The group originally told reporters the drained funds were being protected by "white hats" looking to safeguard the bridge's funds.
- The company maintains that white hats guard tokens but acknowledges that malicious actors robbed the bridge.
- Notifi Bot told Nomad they would help return the stolen funds, writing, "This is a whitehack. I plan to return the funds."
- Crypto holders use Nomad's token bridge to exchange Avalanche, Ethereum, Evmos, Milkomeda C1, and Moonbeam tokens.
- In response to the breach, Moonbeam has temporarily paused its smart contracts and user transactions.
Coin Telegraph
| |
Robinhood Markets Inc. was fined $30M by the New York State Department of Financial Services (NYDFS) after it deemed the company's anti-money laundering and cybersecurity programs "unsatisfactory." The stock- and crypto-trading firm must also recruit an independent consultant to monitor its compliance efforts. More: - According to the NYDFS, Robinhood's anti-money laundering and cybersecurity programs are understaffed and insufficiently monitored.
- Regulators noted that the firm manually reviewed its 100,000+ daily transactions.
- A firm of this size should utilize an automated system.
- In Sept. 2019, the firm saw ~$5.3M worth of daily transactions.
- NYDFS also criticized the company for not dedicating a phone line for customer complaints.
- Robinhood was aware of its shortfalls. According to its SEC filing, the company was prepared to pay ~$10M in fines. The number has since increased to $30M.
- According to the March 2022 filing, 15.9 million people use Robinhood's platform monthly.
- This is NYDFS' first crypto-focused regulatory action.
- Robinhood's stock has fallen nearly 50% this year.
NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Robinhood. Washington Post
| |
Quick Hits: *This is sponsored content.
| |
Upcoming events at Inside:
| |
 |  | Gia Mattu is based in Calgary, Alberta. She is an entrepreneur with experience in climate technology, drones, AI, machine learning, and blockchain technology. When she's not working, she loves to hike the Canadian Rockies, try new cuisine, and travel. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
| |
| |
Comments
Post a Comment