U.S. Treasury Targets Crypto Mixers; NY Attorney Sues Gemini, Genesis, DGC; Lightning Labs Launches Taproot Assets
Summary:
The U.S. Treasury intends to classify cryptocurrency mixers as money-laundering hubs to counteract illegal activities involving digital currencies. New York's attorney general is suing cryptocurrency companies Gemini, Genesis, and DGC for allegedly defrauding investors through the Gemini Earn investment program. Additionally, Lightning Labs has unveiled the mainnet alpha of Taproot Assets, a protocol designed to enable the issuance of stablecoins and other real-world assets on the Bitcoin and Lightning Network.
The U.S. Treasury aims to categorize Cryptocurrency mixers as hubs for money laundering. The main goal is to control the utilization of digital assets for illegal endeavors such as cyber warfare and terrorism. Furthermore, New York's chief legal officer has taken legal action against cryptocurrency companies Gemini, Genesis, and Digital Currency Group (DGC), on grounds of misleading investors through the Gemini Earn investment scheme. In addition, Lightning Labs has unveiled the mainnet alpha of Taproot Assets.
Plans by the United States Treasury Department to classify cryptocurrency mixers along with moneymaking laundering services is in progress, as reported by The Wall Street Journal on October 19. Deputy Treasury Secretary Wally Adeyemo argues that the move allows the government to counteract illegal activities involving digital currencies.
Recently, crypto was under the regulatory spotlight. Over 100 lawmakers, led by Senator Warren, pressured the Biden administration to take immediate and definitive action against illegal crypto activities. In a continuous move to root out Hamas's revenue sources, the Treasury put sanctions on ten specific members, operatives, and financial facilitators of the terror group.
In the same vein, the Treasury Department included a crypto operator based in Gaza in its list of Specially Designated Nationals this week.
Meanwhile, New York's attorney general is suing Gemini, Genesis, and DGC for purportedly defrauding a significant number of investors through the Gemini Earn investment scheme. The lawsuit alleges that the companies stole more than $1 billion from investors, including large numbers of New York residents.
According to the allegations, Gemini deceived investors about the Gemini Earn investment program, misleading them that it's a LOW-risk investment. However, an investigation found that Genesis’ finances were indeed "risky." The lawsuit seeks to prohibit Gemini, Genesis, and DGC from financial investment operations in New York and demands compensation for the lost investments and returns of unlawfully acquired profits.
Lightning Labs, a Bitcoin-layer 2 infrastructure company, has unveiled the mainnet alpha of Taproot Assets. The protocol is designed to enable the issuance of stablecoins and other real-world assets on the Bitcoin and Lightning Network. Ryan Gentry, head of business development at Lightning Labs, noted that this shift brings Bitcoin one step closer to becoming the global routing network for the world's financial assets.
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Published At
10/19/2023 9:16:34 PM
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