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Cryptocurrencies in free fall after biggest Fed rate hike in two decades


on Sunday witnessed another round of free fall, slipping below $35,000 per coin, as the global crypto market went through a massive slump of over 4.5 per cent in the past 24 hours to $1.66 trillion.


All cryptocurrencies were weighed down as central banks globally tried to control inflation by raising interest rates.





is down more than 20 per cent since the beginning of this year.


On Sunday, was hovering around $34,400 and ethereum, which is the second largest cryptocurrency, plunged 4.8 per cent to $2,545.


Dogecoin prices were trading about 1.2 per cent lower at $0.12 whereas Shiba Inu was down by over 4.9 per cent to $0.00001887.


The US Federal Open Market Committee (FOMC) last week voted to raise interest rates by 0.5 per cent, marking its biggest upward adjustment in over two decades.


Federal Reserve Chair Jerome Powell also raised interest rates to combat inflation.


Since the Federal Reserve laid out plans to begin hiking interest rates in November last year, Bitcoin’s price has fallen by over 40 per cent, reports Cointelegraph.


Bitcoin finished the month of April down by 17 per cent, making it the worst monthly performance this year.


Bitcoin investors are likely to lose up to $545 million this year, owing to various reasons like forgetting passwords to their wallets or making a mistake in recording their “seed phrases”, according to a new report.


A seed phrase is a series of words generated by your wallet that give you access to the crypto associated with that wallet.


Analysts have estimated that at least 20 per cent of all Bitcoin is lost and that the majority of those funds are irretrievably lost.


According to CryptoAssetRecovery.com, between $272 million to $545 million of Bitcoin will be lost this year.


–IANS


na/ksk/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Criminals had $11 billion worth illicit cryptocurrencies in 2021


have made criminals richer and in 2021, criminals held $11 billion worth of funds with known illicit sources, compared to just $3 billion at the end of 2020, a new report has revealed.


As of the end of 2021, stolen funds account for 93 per cent of all criminal balances, at $9.8 billion.





Dark Net market funds are next at $448 million, followed by scams at $192 million, fraud shops at $66 million, and ransomware at $30 million, reports Blockchain data company Chainalysis.


Criminal balances also fluctuated throughout the year, from a low of $6.6 billion in July to a high of $14.8 billion in October.


“The fluctuations are a reminder of the importance of speed in cryptocurrency investigations, as criminal funds that have been successfully traced on the Blockchain can be liquidated quickly,” the report mentioned.


This year, their has been a large drop in criminal balances in February due to the US Department of Justice’s $3.6 billion seizure of stolen in the 2016 Bitfinex hack.


“Following that seizure, criminal balances currently stand at roughly $5 billion as of February 9, 2022,” the report noted.


Overall, Chainalysis has identified 4,068 criminal whales holding over $25 billion worth of cryptocurrency.


“Criminal whales represent 3.7 per cent of all cryptocurrency whales a” that is, private wallets holding over $1 million worth of cryptocurrency,” said the report.


In total, 1,333 criminal whales received between 25 per cent and 90 per cent of all funds from illicit addresses.


“Illicit funds received by criminal whales also come from more varied sources than the funds making up overall criminal balances,” the report added.


When it comes to the location of criminal whales, Russia, South Africa, Saudi Arabia and Iran top the list.


In a biggest-ever cryptocurrency haul, the US Department of Justice (DOJ) last week seized and recovered over 94,000 Bitcoins worth $3.6 billion, stolen from crypto exchange Bitfinex by a US-based entrepreneur couple in 2016.


The couple — Ilya Lichtenstein, 34, and Heather Morgan, 31 — faces charges of conspiring to launder money and to defraud the US government, facing up to 25 years in prison if convicted.


–IANS


na/ksk/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

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Meta winding up its ambitious cryptocurrency project: Report


Facing regulatory hurdles, Meta (formerly Facebook) is reportedly winding up its ambitious yet controversial project that its CEO Mark Zuckerberg once defended in front of the US Congress.


Originally launched as Libra and later renamed as the Diem Association, the initiative “is weighing a sale of its assets as a way to return capital to its investor members,” Fortune reported on Tuesday, citing people familiar with the matter.





Diem is reportedly in discussions with investment bankers about “how best to sell its intellectual property and find a new home for the engineers who developed the technology”.


The association apparently made an arrangement with Silvergate Capital Corp to issue Diem digital token, but “resistance from the US Federal Reserve dealt the effort a final blow”.


The Diem Association as well as Meta didn’t immediately respond to the report.


Facing regulatory backlash, the Libra Association in December 2020 decided to change its name to Diem Association in a bid to reinforce its organisational independence.


The Diem Association (Diem means day in Latin) also had its subsidiary called Diem Networks to serve as the payment system operator.


and 20 partner organisations formally joined the digital currency project during a meeting in Geneva in October 2019.


In a move to win regulators’ hearts, the association had announced that its will offer stable coins backed by just one nation’s currency, meaning some coins offered would serve as the equivalent value of a dollar or a Euro.


However, several heavyweights pulled out of the Libra project, like PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe and Booking Holdings and Vodafone over privacy concerns.


–IANS


na/svn

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

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