Cryptocurrency exchange Binance has been silently shutting down multiple accounts on the platform in relation to the Bitzlato investigation, according to several users. On Jan. 18, a group of Russian-speaking Binance clients complained about blocked accounts and not being able to withdraw their funds from the exchange. The affected users created a Telegram group chat to report about the issues, stating that the accounts were blocked without a warning. The members of the group — now counting more than 1,000 members — promptly drew parallels between the blockages and enforcement action against the crypto firm Bitzlato by the United States …

The good news of the last week is that Bitcoin (BTC) continued to review, making around 10% up from Jan.16 to Jan. 23. But it has yet to change a worrying trend of crypto companies making headlines due to their troubles with the law. The United States Department of Justice launched a “major international cryptocurrency enforcement action” against China-based crypto firm Bitzlato and arrested its founder, Anatoly Legkodymov. The enforcers consider Bitzlato to be a “primary money laundering concern” connected to Russian illicit finance. While the exchange attracted little attention until the DOJ action, it had received $206 million from …

Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers’ Bitcoin machines, citing a non-applicable United States sanction as the reason. According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 that it has terminated its “relationships and dealings with Bit River” due to the sanctions imposed by Executive Order 14024. It is alleged that Compass “did not offer” to return or even retrieve the assets that its customers entrusted the company with to host at …

The United States Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, has argued that Binance is linked to the illegal cryptocurrency platform Bitzlato. In an order published on Jan. 18, FinCEN stated that Binance cryptocurrency exchange was among the “top three receiving counterparties” of Bitzlato in terms of Bitcoin (BTC) transactions. According to the authority, Binance was among the biggest counterparties that received Bitcoin from Bitzlato between May 2018 and September 2022. Other such counterparties included Russia-connected darknet market Hydra and the alleged Russia-based Ponzi scheme known as “TheFiniko,” FinCEN noted. On the other hand, FinCEN did …

Bitcoin (BTC) price and the wider crypto market corrected as news of coordinated “international cryptocurrency enforcement action” stirred up uncertainty among traders. Given the number of black swan events and the proliferation of crypto-oriented scams in 2022, most investors expect United States and global regulators to eventually lay down a strong hammer on centalized exchanges and other businesses connected with the crypto sector. At the time of writing, BTC price had dipped to an intraday low at $20,400, and Ether (ETH) gave back its daily gains to trade as low as $1,500. As shown by the charts below, the revelation …

The Central Bank of Iran is reportedly cooperating with the Russian government to jointly issue a new cryptocurrency backed by gold. Iran is working with Russia to create a “token of the Persian Gulf region” that would serve as a payment method in foreign trade, Russia’s news agency Vedomosti reported on Jan. 15. The token is projected to be issued in the form of a stablecoin backed by gold, according to Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain (RACIB). The stablecoin aims to enable cross-border transactions instead of fiat currencies like the United States’ …

Troubled cryptocurrency lender Nexo is facing more pressure from regulators as its offices have been reportedly raided as part of an international investigation. A group of prosecutors, investigators and foreign agents started searches of Nexo’s offices in the Bulgarian capital, the local news agency Standart reported on Jan. 12. The operation was reportedly initiated a few months ago, targeting a large-scale financial criminal scheme allegedly involving money laundering and violations of international sanctions against Russia. Citing sources of the Bulgarian National Television, the report alleges Nexo’s involvement in the scheme. The television also highlighted Nexo’s alleged ties with the government …

Russia’s central bank is reportedly set to begin developing a cross-border settlement system using its Central Bank Digital Currency (CBDC) amid ongoing sanctions in response to its invasion of Ukraine. The plans to move forward with Russia’s digital ruble are expected to come in the first quarter of 2023 and will see Russia's central bank study two possible cross-border settlement models, according to a Jan. 9 report from local media outlet Kommersant. The first proposed model sees various countries entering into separate bilateral agreements with Russia to integrate their CBDC systems. Each agreement would be made to ensure the conversion …

Bankrupt cryptocurrency lender Celsius Network agreed to let Bitcoin (BTC) miner Core Scientific shut off more than 37,000 mining rigs it had been hosting for Celsius during the miner’s bankruptcy proceedings. Core Scientific filed a revised proposed order on Jan. 3 which incorporated “revisions acceptable to Celsius” noting “all Celsius rigs will be powered down effective January 3, 2023 and will not be restarted during the transition period.” Previously, Core Scientific accused Celsius of failing to pay its power bills on Oct. 19 citing the non-payment as a major factor leading to its liquidity issues after the Bitcoin miner filed …

Russia’s largest bank Sber — formerly known as Sberbank — reported the first issue of gold-backed digital financial assets (DFAs). The bank considers DFAs to be a “great alternative” to investments amid dedollarization. On Dec. 26, Sber published the news about its first issue of gold-backed DFAs. A diversified metals seller and manufacturer, Solfer, became the first investor to obtain the issued assets. Gold-backed DFAs represent certifying monetary rights, whose price and volume depend on gold prices. According to juridical documentation of the issuance, the bank will provide up to 150,000 DFAs for potential investors to buy. The DFAs will …

Before the rise of centralized exchanges (CEXs), over-the-counter (OTC) trading was the go-to method to buy or sell cryptocurrency for many crypto investors. The FTX collapse could trigger a bigger demand for crypto OTC services as investors are looking for alternative methods to convert from and to fiat due to weaker trust in CEXs. Cointelegraph spoke with BestChange, a Russian OTC crypto exchange aggregator, to learn more about the current state of OTC markets. “The role of OTC is sometimes underestimated amid the all-encompassing marketing of centralized exchanges,” BestChange chief analyst Nikita Zuborev said. According to the exec, OTCs often …

2022 will surely be remembered as a year of crypto discontent — one when the price of Bitcoin crashed three times, many large companies went bankrupt and the industry experienced a series of significant lay-offs. However, it was a crucial year for crypto regulation worldwide. Although some regulatory developments are worrisome in terms of their tighter stance on digital assets, their effect could help the industry to mature in the long run. Looking at the significant regulatory events of 2022 might fuel one’s optimism for the future. The controversial policy to restrict proof-of-work (PoW) mining was supported in New York, …