Terra ecosystem collapses, Sam Bankman-Fried buys Robinhood stock, and crypto trader receives jail sentence for a ponzi scheme: Hodler’s Digest, May 8-14

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link. Top Stories This Week Breaking: Terra blockchain officially halted following LUNA price collapse This week, news about the Terra ecosystem dominated the headlines after algorithmic stablecoin TerraUSD (UST) lost its peg to the U.S. dollar — and continued to crash.  At its lowest point during the week, UST fell…

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India to set maximum penalty for violating crypto norms at fine of $2.7 million or 1.5 years in jail

On Tuesday, BloombergQuint (Bloomberg India) reported that the penalty for non-compliance with the Indian government’s crypto policies could range from a maximum fine of 20 crore rupees ($2.7 million dollars) or 1.5 years in jail. Prime Minister Narendra Modi will likely give cryptocurrency investors a deadline to comply with new rules and declare their assets. While the regulatory environment in the country holds a high degree of uncertainty, reports have indicated that investors’ crypto must soon be held in exchanges operating under the oversight of the Securities and Exchange Board…

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Report all crypto transactions or face 5-year jail term in South Korea

South Korea’s cryptocurrency regulatory space is set to become even more tightly regulated with the incoming laws on financial reporting for crypto businesses in the country. According to Korea JoongAng Daily, South Korea’s Financial Services Commission has amended its financial reporting rules to include the cryptocurrency sector. This amendment mandates all crypto businesses — exchanges, asset managers, wallet providers, and custodial platforms — to file records of their transactions with the Financial Intelligence Unit. The FIU is an arm of the FSC responsible for Anti-Money Laundering oversight across South Korea’s…

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Crypto escrow agent dodges jail after lying over stolen millions

A Manhattan federal judge has let an escrow agent walk free for deceiving a crypto investment manager about having purchased $3.25 million worth of Bitcoin on their behalf in 2018.  During a hearing held over video conference on Feb. 4, U.S district Judge Edgardo Ramos ordered Volantis Market Making founder John Barry Thompson of Pennsylvania to repay the $3.25 million to New York-based investment manager, Iterative OTC, and sentenced him to three years of supervised release. Thompson pleaded guilty in October 2020. According to legal publication Law 360, Judge Ramos…

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McAfee continues to promote cryptocurrencies from his Spanish jail cell

John McAfee, an eccentric millionaire, crypto enthusiast, and anti-virus expert, was recently detained in Spain on charges of U.S. tax evasion. He also faces charges arising from a series of questionable crypto promotions, from which he allegedly profited millions of dollars. Though he is currently in a Spanish prison, it did not stop him from sharing a few of his thoughts on recent developments in the crypto industry.  With regard to PayPal’s recent announcement, McAfee said “PayPal’s acceptance of cryptocurrency signals, I believe, a new wave of cryptocurrency acceptance worldwide. Governments around the world…

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Former government contractor avoids jail for mining crypto at work

A former government contractor in Australia who mined crypto using state-owned supercomputers has avoided jail time.  According to The Sydney Morning Herald, Jonathan Khoo was ordered to complete 300 hours of community service for installing code on two supercomputers run by Australia’s Commonwealth Scientific and Industrial Research Organisation, or CSIRO, to mine cryptocurrency.  Khoo was able to mine AU$9,420 worth of cryptocurrencies and deposited these to his Ethereum and Monero wallets in 2018.  CSIRO, which conducts scientific and technological research for the Australian government, said Khoo’s actions diverted needed computing…

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‘Bitcoin Pope’ faces up to 10 years in jail for running two crypto scams

A securities regulator in the United States, the Texas State Securities Board (TSSB), has detected another batch of alleged cryptocurrency scams. On Sept. 3, Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order against two alleged crypto scam schemes known as Forex Birds and PEK Universe. The published order names Kumar Babu Bondesi and Darwin Eric Balusek as the alleged operators of the schemes. According to the TSSB, Balusek is also known under the nickname “Bitcoin Pope.” Operating abroad, the respondents are accused of fraudulent securities…

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AlphaBay darknet market moderator sentenced to 11 years in Jail

One of the men responsible for moderating content on the now defunct AlphaBay darknet market will be in jail until 2031. According to a Sept. 1 statement from the U.S. Department of Justice, 26-year-old Bryan Connor Herrell was sentenced to 11 years in prison for conspiring to engage in a racketeer-influenced corrupt organization, for his role as a moderator on AlphaBay. The platform was one of the largest online marketplaces for drugs as well as guns, credit card data, and other illegal items, paid for with cryptocurrency. “This sentence serves…

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OneCoin Co-Founder Escapes 90-Year Jail Term Following Court Settlement

Konstantin Ignatov, co-founder of major cryptocurrency exit scam, OneCoin, initially faced up to 90 years in jail after pleading guilty in November 2019. Now, however, it seems that Ignotov is no longer one of the key defendants in legal actions brought by victims of the $4 billion scam, according to a report from Finance Magnates on Aug. 7. OneCoin investors representing plaintiffs Donald Berdeaux and Christine Grablis have agreed to settle with Ignatov. While the details of the court settlement remain unclear, court documents indicate that the case will continue…

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