Binance Aids in ZKasino Scam Arrest; FTX Plans Full Creditor Repayment; Crypto Gains Political Relevance in US
Summary:
Binance's internal team assisted in identifying and arresting a suspect involved in the ZKasino scam. In parallel, bankrupt crypto exchange FTX is creating a plan to fully reimburse its creditors, pending judicial approval. The uptake of cryptocurrencies is on the rise amongst US electorates, and it is perceived to be a vital issue in the upcoming elections. Swing states are showing an inclination towards candidates who favor digital assets.
Crypto giant Binance assisted authorities by identifying a suspect in the ZKasino scam, according to information shared with Cointelegraph by Binance’s internal investigation unit. Simultaneously, bankrupt digital exchange FTX is designing a scheme to fully compensate its creditors, pending court approval. The U.S. electorates are now showing increased interest in cryptocurrencies.
Binance's internal team conducted a probe into ZKasino due to popular demand and helped law enforcement agencies apprehend a suspect in the scam. Binance's crime investigation team deployed a mix of on-chain tracking and open-source intelligence information to pinpoint the offender. The trail involved studying ZKasino's smart contracts and the individuals who signed off on them.
After seeking out the suspect creating the smart contracts, Binance informed the authorities about the con artist's identity. The Netherlands' Financial Intelligence Unit arrested the 26-year-old suspect on April 29 and confiscated cryptocurrencies, property, and high-end vehicles worth more than $12.2 million.
FTX, a defunct crypto exchange, aims to repatriate its creditors with more than 100% of their claimed amount, though this proposal requires the green light from Delaware Bankruptcy Court. However, only creditors who claim below $50,000 will be entitled to 118% recovery, which FTX believes will cater to the majority (98%) of its creditors.
FTX CEO John J. Ray III expressed satisfaction regarding the Chapter 11 plan, which includes returning the complete bankruptcy claim amounts plus interest for non-government creditors. FTX anticipates that the total value to be remunerated to creditors will fall between $14.5 and $16.3 billion.
In the U.S. elections, cryptocurrency is becoming a significant issue, with crucial swing states showing a preference for candidates favouring digital assets. A poll by Digital Currency Group and The Harris Poll suggests that more than two-thirds of participants see cryptocurrencies as more equitable than the current financial system. More specifically, in swing states like Michigan, Nevada, and Pennsylvania, over 90% of participants plan to vote in the next presidential election.
Kristin Smith, Blockchain Association CEO, noted that digital assets are becoming a key issue in the upcoming election, with 26% of voters considering the candidates’ stance on digital currency when making decisions. She believed this data highlights the growing influence of cryptocurrencies in shaping the 2024 electoral scene. As previously reported by Cointelegraph, three political action committees focusing on cryptocurrencies garnered over $100 million to back candidates supporting digital assets in the upcoming elections.
Published At
5/8/2024 3:55:36 PM
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