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Bitfinex money launderer ‘Razzlekhan’ sentenced to 18 months in prison

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Heather Morgan, also known by her online persona “Razzlekhan,” has been sentenced to prison for her involvement in a large-scale money laundering operation linked to the Bitfinex exchange hack. Morgan, along with her husband Ilya Lichtenstein, was convicted for conspiring to launder over $4.5 billion worth of cryptocurrency stolen in a 2016 hack of the popular crypto exchange. Morgan received a sentence of more than two years in federal prison after being found guilty of facilitating the laundering of stolen funds, much of which was transferred across various digital wallets in an attempt to obscure the illicit activity.

The hack, one of the largest in cryptocurrency history, saw nearly 120,000 Bitcoin stolen from Bitfinex users, an amount that at the time was worth roughly $72 million but has since ballooned in value. Morgan and Lichtenstein were arrested in early 2022, and U.S. authorities managed to trace and seize a significant portion of the stolen funds, ultimately recovering over $3.6 billion in Bitcoin. Their arrests were part of a broader crackdown on cryptocurrency-related crimes, signaling the increasing efforts by law enforcement to track and combat digital asset-based money laundering.

Morgan, a self-proclaimed “serial entrepreneur” and “cybersecurity expert,” gained public attention due to her eccentric online persona and social media presence. Her involvement in the laundering scheme began when she and Lichtenstein devised a sophisticated plan to move the stolen Bitcoin through a series of transactions, using fake identities and sophisticated technology to mask their activities. However, the pair’s attempts to cover their tracks ultimately failed as investigators employed blockchain analysis tools to trace the illicit funds.

The sentencing marks a significant development in the ongoing battle against cryptocurrency-related crime, highlighting both the potential for large-scale illicit activities in the digital asset space and the growing effectiveness of authorities in prosecuting such crimes. While Morgan’s sentence is a notable outcome, the legal proceedings against Lichtenstein are still ongoing. The case serves as a reminder of the risks and legal consequences associated with illegal activities in the cryptocurrency market, and it could set a precedent for future enforcement actions targeting money laundering in the sector.

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Binance launches in Syria after Trump lifts sanctions

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Binance has signaled interest in expanding its services to Syria following a recent move by former U.S. President Donald Trump to lift certain economic sanctions. The easing of restrictions has opened the door for global businesses, including cryptocurrency platforms, to re-evaluate their presence in the region.

A Binance spokesperson confirmed that the company is exploring opportunities in Syria and may extend support to local users. The development marks a potential shift in crypto accessibility for a country that has long faced economic isolation due to international sanctions.

Although no formal launch has been announced, the move suggests that Binance is preparing to tap into an underserved market. The company emphasized that it will continue to monitor regulatory guidelines while assessing how best to engage Syrian users within legal frameworks.

The renewed interest in Syria reflects broader efforts by crypto firms to expand globally amid shifting geopolitical and regulatory dynamics. If Binance proceeds, it could become one of the first major crypto platforms to reenter the Syrian market in years.

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GameStop plunges 12% after proposing new $1.75B debt offering

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GameStop’s stock dropped 11% after the company revealed plans to offer $2.14 billion in convertible notes, sparking investor concerns about potential dilution. The market reacted sharply to the move, which could lead to an increased share count if noteholders opt to convert their holdings into equity.

The company stated that the proceeds will be used for general corporate purposes, which may include acquisitions and investments. Convertible notes provide flexibility for companies, but often trigger negative investor sentiment due to the future possibility of share dilution.

The timing of the announcement came just as GameStop was enjoying renewed attention from retail investors, particularly following the reappearance of “Roaring Kitty,” a central figure in the 2021 meme stock frenzy. That momentum was quickly undercut by fears surrounding the fundraising effort.

GameStop’s latest financial strategy highlights its continued attempts to adapt and remain relevant in a changing retail landscape. However, the negative market reaction reflects ongoing uncertainty over the company’s ability to convert hype into sustained performance.

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Peaq and UAE bet on tokenized machines to power future economy

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The United Arab Emirates has introduced a new regulatory sandbox dedicated to advancing the machine economy, in collaboration with blockchain network peaq and Web3 data platform Pulsar. The initiative is backed by the country’s Artificial Intelligence, Digital Economy and Remote Work Applications Office and is aimed at supporting decentralized physical infrastructure networks (DePINs).

The sandbox offers a controlled environment where projects involving autonomous vehicles, delivery drones, and smart city applications can be tested and scaled. Developers will be able to deploy real-world use cases involving connected devices while benefiting from regulatory guidance and technical support.

Participants in the program will receive resources such as funding opportunities, mentorship, and access to strategic partners, enabling them to refine and expand their technologies. The initiative reflects the UAE’s continued efforts to lead in Web3 innovation, artificial intelligence, and future-driven economic models.

By fostering projects that combine AI, blockchain, and IoT, the UAE seeks to attract global startups to build the foundations of a decentralized machine economy. The sandbox is expected to drive real-world adoption of DePIN technologies across transport, infrastructure, and smart services sectors.

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