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Osmosis validator FireStake admits it drained $2 million during Osmosis exploit

Quick Take FireStake is one of the validators of the Osmosis blockchain. Despite this, it admitted to taking advantage of Osmosis’ recent exploit to drain $2 million of funds. After a $5 million exploit on Osmosis on Wednesday, one of its network validators called FireStake came forward to admit that they were responsible for draining $2 million of it. Osmosis is a blockchain that runs a large decentralized exchange (DEX) in the Cosmos ecosystem. The project suffered losses due to …

Former head of product for OpenSea indicted after insider trading scandal

A court has charged the former head of product at non-fungible token (NFT) platform OpenSea on wire fraud and money laundering charges after an insider trading scandal. Nathaniel Chastain was arrested Wednesday morning in New York, New York. He is slated for presentation in the US District Court for the Southern District of New York, according to a Wednesday press release from the Department of Justice. Chastain was previously accused of using secret Ethereum wallets to purchase NFTs based on …

BitMEX founder Arthur Hayes avoids jail time, sentenced to six months of home detention

Arthur Hayes, one of the founders of crypto exchange BitMEX, avoided jail time Friday during his sentencing hearing in New York. Hayes was handed a sentence of six months of home detention as part of a two-year probationary period. He had previously pleaded guilty to violating the US Bank Secrecy Act (BSA). “I’m ready to turn the page,” Hayes said before the sentencing hearing. A representative for Hayes declined to comment following the hearing’s conclusion. The prosecution had asked for …

Arthur Hayes faces up to five years in his Friday sentencing, but jail time is unlikely

Former BitMEX CEO Arthur Hayes is slated for sentencing this Friday after pleading guilty to violating the US Bank Secrecy Act (BSA). Though Hayes faces a possible maximum sentence of five years in prison, it’s uncommon for BSA violations to result in jail time. The sentencing will close a legal chapter that began in October 2020, when the Department of Justice and the Commodity Futures Trading Commission (CFTC) lodged parallel actions against crypto derivatives exchange BitMEX and its owner-operators. Those …

New York crypto company CEO arrested by FBI, charged with fraud

The CEO of a New York City cryptocurrency company was arrested by the FBI on Thursday and charged with running a $59 million fraud scheme. A criminal complaint filed in Manhattan federal court charged that Eddy Alexandre, 50, of Valley Stream, New York, solicited funds from hundreds of individual investors after making false representations in connection with his EminiFX trading platform between September 2021 and May 2022.  US Attorney Damian Williams said in the complaint: “Eddy Alexandre allegedly induced his …

After Terra’s stablecoin implosion, battered investors ask ‘where is Do Kwon?’

With angry investors facing heavy losses following TerraUSD’s dramatic de-pegging this week, users on the Terra Research Forum and Reddit are now asking where Terraform Labs CEO Do Kwon is and even calling for his arrest. The Terra crypto ecosystem was thrown into chaos this week when its TerraUSD (UST) algorithmic stablecoin de-pegged sharply from the US dollar. The crisis has seen both the price of UST and its related Luna token tumble, resulting in billions of dollars of losses …

Hacked stablecoin Beanstalk seeks to borrow $77 million to revive itself

Quick Take The Beanstalk stablecoin hopes to raise $77 million in an over-the-counter loan from private investors. The team is aiming to recover from a flash loan exploit in April that drained millions in funds. The team behind the stablecoin Beanstalk is raising $77 million in an over-the-counter loan from private investors as it seeks to revive the project following a major hack last month. On May 7, the Beanstalk DAO — the decentralized autonomous organization that oversees the project …

Crypto muggers in London target digital investors by taking phones: report

Thieves are targeting digital currency investors in a wave of “crypto muggings,” UK police said, with victims reporting big sums stolen after their mobile phones were seized, the Guardian reported today. Criminals are combining muscle with knowhow to part people from their cryptocurrency, according to City of London police. Crypto transfers are irreversible, unlike bank transfers, making the crime attractive to thieves. One victim was ordering an Uber when muggers forced him to hand over his phone. The gang returned …

Mining Capital Coin CEO indicted in DOJ fraud case

The Department of Justice is levying a case against the CEO of Mining Capital Coin (MCC) for allegedly running a $62 million global fraud scheme. Luiz Capuci, Jr. was indicted for allegedly misleading investors about MCC’s mining and investing program. Capuci and his team allegedly claimed the firm’s international network of mining machines could generate large profits and guaranteed returns if investors’ bought into the so-called “Mining Packages.” Capuci allegedly told investors their funds would be used to mine new …

US adds Blender.io crypto mixing service to North Korean sanctions list

Quick Take The US has sanctioned Blender.io after linking it with money laundering by North Korea. North Koreans used Blender.io to process $20.5 million out of the almost $620 million stolen in the Axie Infinity attack. The US Office of Foreign Assets Control added the crypto mixer Blender.io to its list of organizations sanctioned for dealing with North Korea. In a press release on Friday, the US government linked the site to use by groups in North Korea to launder …