Category: Crypto Currency

Crypto Scams Trigger US Shutdown of ChipMixer and Investors Taking a Step Back

What This Means For YouThe US Treasury Department made headlines recently by taking action against two highly-used cryptocurrency services – ChipMixer and Post Oak. This shutdown has been put into place in order to crack down on crypto scams, and it has many investors taking a step back and wondering what this means for their investments. In this blog post, we will cover the details of the US Treasury shutdown of ChipMixer and Post Oak, what this could mean for cryptocurrency investors,

What is ChipMixer and Post Oak?

In the wake of increasing US government scrutiny, signature buyers in the crypto market have been taking a step back from cryptos This change has come as a direct result of recent news that US authorities are cracking down on crypto transactions and putting a stop to activities, that involve ChipMixer. The company is being investigated due to concerns over possible crypto scams ChipMixer is an online platform for exchanging digital currencies in a secure fashion using cryptography for added protection. It was one of the most popular places for signature buyers who wanted to take advantage of its anonymity features, allowing them to buy and sell cryptos without their identity showing up on public records Unfortunately, this extra security also made it easier for criminals and scammers as well; consequently, it became necessary for US authorities to halt operations at ChipMixer out of fear that it might be used for nefarious activities like money laundering or terrorism financing.

News:

Screenshot 2023 03 18 at 11.24.08 PM
US Shutdown of ChipMixer

US authorities on Wednesday shut down the cryptocurrency company ChipMixer, which was involved in illegal trading and money laundering worth $3 billion.

The US Department of Justice has claimed that a ransomware group linked to North Korean hackers and other dark web users used the stolen information to gain access to their platform and stole $3 billion. It is also alleged that Russian military intelligence agencies used the site to trade Bitcoin and buy hacking tools.

Meanwhile, German police seized $46 million worth of cryptocurrency and the servers used to power the site as part of a fraud investigation.

Investigators believe ChipMixer facilitated bitcoin laundering and helped criminals evade detection, U.S. Attorney Jacqueline C. Romer of the Eastern District of Pennsylvania said in a statement:

Potential Buyers of Signature Agree to Avoid Cryptocurrencies

The New York-based bank’s weekend shutdown comes two days after the collapses of two other major banks, Silvergate, and Silicon Valley. was broken. All three now-defunct banks were considered “friendly” to cryptocurrency stakeholders.

Signatory banks, whose crypto customers make up a quarter of their deposits, have been investigated for money laundering by the Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC).

Charlie Munger says the U.S. should follow in China’s footsteps

Points to discuss:

  • Charlie Munger, vice chairman of Berkshire Hathaway, called on the American government to outlaw cryptocurrencies, just as China has done.
  • In an opinion piece that appeared in The Wall Street Journal on Thursday, 99-year-old Munger argued that cryptocurrencies are neither money nor a commodity nor a security.
  • Long-time opponents of cryptocurrencies, Munger and his business colleague Warren Buffett maintain that cryptocurrencies are neither real assets nor productive ones.
charlie munger
Charlie Munger

Charlie Munger, vice chairman of Berkshire Hathaway, urged the United States government to outlaw cryptocurrencies, as China has done. He claimed that a lack of regulation allowed for disgusting excess and a gambling mindset.

In an opinion piece that appeared in The Wall Street Journal on Thursday, 99-year-old Munger argued that cryptocurrencies are neither money nor a commodity nor a security.

As opposed to that, Munger observed, “it’s a gambling contract with a nearly 100% edge for the house, engaged into in a nation where gambling contracts are usually only governed by states that compete in laxness.” Clearly, the United States needs to pass a new federal law to stop this from happening.

Long-time opponents of cryptocurrencies, Munger and his business colleague Warren Buffett maintain that cryptocurrencies are neither real assets nor productive ones. Munger’s most recent remarks come at a time when the cryptocurrency sector was struggling with issues including failed projects and a lack of liquidity, which were made worse by the collapse of FTX, once one of the biggest exchanges in the world.

Tell us Why America Should Ban Crypto
Tell us Why the U.S. Should Ban Crypto?

Over $2 trillion was lost from the bitcoin market’s value in 2017. According to Coin Metrics, the price of bitcoin, the biggest cryptocurrency in the world, fell 65% in 2022 before rising nearly 40% to trade at about $23,824.

The prominent investor claimed that thousands of new cryptocurrencies were recently released by privately held corporations and listed on exchanges without prior authorisation from the government. Some have been given away to promoters for practically nothing, Munger claimed, and then the general public invests at much higher prices without fully realising the “pre-dilution in favour of the promoter.”

He mentioned two “interesting examples” that might help the United States take wise decisions. First, trading, order matching, token issuance, and derivatives for virtual currencies are expressly forbidden in China. Second, Munger noted that the English Parliament outlawed any public trading in newly issued common stocks beginning in the early 1700s and maintained this outlaw for almost 100 years.

“What should the United States do now that a cryptocurrency prohibition is in effect? Another course of action would be to express gratitude to the Chinese communist leader for his excellent display of extrasensory perception, Munger suggested. Read More Here.

What do You Think, Share Your Valuable Feedback or Any information you have.

Tell us Why America Should Ban Crypto?

Concept: Future Of Crypto Currency

It is difficult to predict the exact future of cryptocurrencies, as they are still a relatively new and rapidly evolving technology. However, there are a few trends that suggest the potential for continued growth and adoption of cryptocurrencies in the future.

Continue reading “Concept: Future Of Crypto Currency”