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Crypto scam launderer pleads guilty to role in $73M scheme

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A key figure involved in a $73 million cryptocurrency scam has pled guilty to charges of money laundering and conspiracy to commit fraud. The defendant, identified as a 38-year-old man from the United States, admitted to his role in laundering proceeds from a scheme that defrauded investors in various crypto assets. According to the U.S. Department of Justice, the fraud involved fake initial coin offerings (ICOs) and deceptive trading platforms that promised high returns but ultimately failed to deliver. The guilty plea marks a significant moment in the ongoing crackdown on cryptocurrency-related crimes.

The defendant was part of a larger criminal operation that exploited unsuspecting investors by promoting fake tokens and fraudulent ICOs. He utilized a complex network of wallets and exchanges to obscure the origin of the illicit funds, helping to transfer and conceal the stolen cryptocurrency. Prosecutors noted that the operation spanned several years, with the illicit proceeds funneled through international jurisdictions to avoid detection by law enforcement. The scheme is one of several high-profile cases that highlight the vulnerabilities within the crypto space.

The plea agreement, which was filed in a federal court, outlines the specific charges and details the defendant’s involvement in laundering over $73 million. As part of the settlement, he faces significant penalties, including a lengthy prison sentence, with the exact sentence to be determined at a later hearing. Authorities have stressed that the case is part of a broader effort to combat fraud and money laundering in the rapidly growing digital asset industry, with crypto exchanges and regulators working in tandem to detect and prevent such schemes.

Legal experts warn that while the conviction of individuals like this defendant sends a strong message, the underlying issues in the cryptocurrency sector remain. Without clear regulatory frameworks, bad actors will continue to exploit gaps in the system, putting investors at risk. The case serves as a reminder of the importance of due diligence and caution when participating in cryptocurrency investments.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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