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Bitcoin [BTC]: Victims of crypto-crimes seek $11 billion in compensation

Sarvesh Kumar

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Bitcoin: Victims of crypto-crimes seek $11 billion in compensation; a challenge for EU
Source: Pixabay

Cryptocurrency-related crimes have risen exponentially over the past few years. Recently, the cases of close to 30 victims of cryptocurrency-related crimes were backed up by a law firm, with the victims demanding a compensation of $11.2 billion.

The news was first reported by Micky, and the victims were from countries, including the United Kingdom, Italy, Slovakia, Australia, US and more. Dr. Jonathan Levy, the solicitor at the firm Berlad Graham LLP, revealed that the crime involved people from various countries and the jurisdiction of the case fell under EU law.

The original report also claimed that a majority of the highlighted cryptocurrency nodes were controlled by EU nations.

According to Levy, social media is one of the key reasons behind the increase in the number of such crimes. Dr. Levy also noted that criminals “could not function without fintech and blockchain companies, exchanges, banks, and especially social media, which accelerated and facilitated this illicit transfer of wealth”.

Levy claimed that social media was a “silent partner” to such crimes, and added that social media giants were enriched by “setting up the victims and selling their data to crypto criminals”.

According to Michael McKibben, a social media expert with the firm, it was easy for social media platforms to keep a tab on crypto-related crimes. However, they often chose to ignore it.

With the alarming crime rate, there were rumors that the government might classify and regulate cryptocurrencies or even ban it. However, Dr. Levy said that it was unlikely that the government would ban them. However, the government would now look at addressing regulations and accountability in a larger way, he said.

He added,

“Obviously Russia and China have taken one route. On the other hand, the US, without answering the big questions seems to be going after criminals selectively. The EU, however, has really done nothing but is the one jurisdiction with supranational money laundering and data rules. I think the EU will set the tone because everyone will need to conform since almost all crypto business touches Europe.”





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I am a journalist here at AMBCrypto. I cover news on prices of various coins in the crypto-verse and also work on the latest news of coins like - Bitcoin| Ethereum| Litecoin and more.

Bitcoin

Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder

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Bitcoin: Age old discussion about Bitcoin being a commodity or security brought to life; Could it be a security?
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Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.

The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,

“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”

In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,

“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”

Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”

However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,

“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”





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