Crypto Roundup: Bitcoin Drops, Ex-Binance CEO Sentenced, Early Bitcoin Investor Charged with Tax Fraud
Summary:
Bitcoin dropped to a two-week low following lower than expected trade volumes from new crypto ETFs in Hong Kong. Ex-Binance CEO Changpeng Zhao was sentenced to four months in prison following a prolonged legal battle with U.S. authorities. Early crypto investor 'Bitcoin Jesus' faces charges of evading nearly $50 million in taxes while Gary Gensler's previous statements regarding Ether are under inspection.
Bitcoin (BTC) experienced a significant downward shift to its lowest point in two weeks on April 30, brought about by underwhelming trade volumes on the recently established cryptocurrency-based exchange-traded funds (ETFs) in Hong Kong. Concurrently, Changpeng "CZ" Zhao, previous Chief Executive of Binance, was subjected to a four-month incarceration sentence, marking the end of his long-standing legal tension with American law enforcement. In related news, an early pioneer in cryptocurrency investment, colloquially known as 'Bitcoin Jesus', is facing accusations of dodging nearly $50 million in tax obligations. On another note, previous statements made by Gary Gensler in Congress concerning Ether are currently under investigation.
Here are the key developments in the cryptocurrency sector for today:
Bitcoin fell below $60K after total crypto liquidations nearly hit $300 million. The disappointment from the recently debuted spot ETFs had its toll, further fueling the existing bearish sentiment after it came to light that the inaugural trading volumes of the new Bitcoin ETFs in Hong Kong were notably below the anticipated figures. Following the Asian trading session, BTC/USD experienced a sharp decrease, with the pair surrendering the $61,000 mark. In response, liquidations began to snowball, reaching a total of $275 million over 24 hours.
A federal court has decreed a four-month prison verdict for Zhou Changpeng, the ex-CEO of Binance, due to violations of American laws against money laundering. Although the prosecution pushed for a three-year sentence due to CZ's failure to establish an effective counter money laundering strategy in the cryptocurrency exchange setup, his legal team lobbied for probation. CZ had accepted the charges in November.
Early Bitcoin investor Roger Ver, commonly known as 'Bitcoin Jesus,' was slapped with charges for tax fraud by the US Department of Justice. On the last day of April, Ver was apprehended by Spanish officials based on legal charges emanating from the United States, which covers mail fraud, tax evasion, and inaccurate tax return filings. The US alleges that Ver deceived the IRS to the tune of approximately $48 million by not disclosing capital gains he had from his sale of Bitcoins and other assets.
Patrick McHenry, the Head of the U.S. House Financial Services Committee, has accused SEC Chair Gary Gensler of misleading Congress with regard to attempts to designate Ether as a security. McHenry’s claims refer to Gensler providing false testimony before the Committee, basing his assertion on a recent court filing by software firm Consensys, that has instigated a lawsuit against the SEC on April 25. Reports on these issues were provided by Geraint Price, Ana Paula Pereira, Sam Bourgi, and Felix Ng.
Published At
5/1/2024 12:22:53 AM
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