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Roger Ver moves to dismiss US tax evasion charges as ‘unconstitutional’

Roger Ver argued that the IRS’ exit tax for renounced US citizens with over $2 million in assets is unconstitutional and “impermissibly vague.”

Roger Ver — also known as “Bitcoin Jesus” — has urged a United States judge to dismiss a case from US prosecutors alleging he committed tax evasion when selling millions of dollars in Bitcoin, claiming the case is unconstitutional.

In a Dec. 3 filing to a California federal court, Ver argued that the Internal Revenue Service’s (IRS) exit tax for those who choose to renounce their US citizenship with more than $2 million in assets was unconstitutional and “inscrutably vague.”

“The ‘exit tax’ at issue violates both the Apportionment Clause and the Due Process Clause of the Constitution [...] the charges also rely on provisions of the U.S. tax laws that were, at all relevant times, inscrutably vague as to their application to digital assets of the kind that underlie the charges,” Ver argued. 

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Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Bitfinex hack launderer ‘Razzlekhan’ wants time served as sentencing looms

Heather Morgan has argued for no more jail time for her role in laundering some of the 120,000 Bitcoin stolen from Bitfinex by her husband Ilya Lichtenstein.

Heather Morgan, also known as the rapper “Razzlekhan,” has asked to avoid more prison time ahead of her sentencing for her role in laundering the Bitcoin her husband stole from the crypto exchange Bitfinex.

“Ms. Morgan has proven herself worthy of a second chance, and we respectfully ask this Court to give her that chance by imposing a sentence of time served,” Morgan’s lawyers asked a Washington, DC, federal court in an Oct. 31 filing.

They added she was subject to “difficult conditions” in her week-long pretrial incarceration — having to recover from surgery and getting COVID-19 — and, since her release in mid-February 2022, had “complied fully with the restrictive terms of pretrial release.”

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Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

UN Raises Human Rights Concerns in Telegram Founder Pavel Durov’s Case

UN Raises Human Rights Concerns in Telegram Founder Pavel Durov’s CaseThe United Nations has expressed serious concerns about the arrest and charges against Pavel Durov, founder of Telegram, citing potential human rights issues. A U.N. spokeswoman called for adherence to international human rights standards, emphasizing the need for legality and proportionality in regulating social media platforms. United Nations Raises Human Rights Concerns Over Arrest of […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Do Kwon’s Extradition Likely to Take Time, Montenegrin Prosecutor Says

Do Kwon’s Extradition Likely to Take Time, Montenegrin Prosecutor SaysA prosecutor investigating Terraform Labs CEO Do Kwon for alleged passport forgery in Montenegro has indicated that he will not be extradited soon. The law enforcement official told South Korean media that Montenegrin authorities intend to indict Kwon within a month, ruling out the possibility of him being handed over to other countries within the […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Logan Paul and CryptoZoo hit with lawsuit as investors take action

Plaintiff Don Holland has filed a lawsuit against CryptoZoo and Logan Paul, alleging the YouTube influencer’s “fraudulent venture” executed a “rug pull.”

CryptoZoo and Logan Paul have been named as defendants in a newly filed class-action lawsuit, which alleges they stole millions of dollars worth of purchaser's cryptocurrency via a "fraudulent venture."

In a court filing on Feb. 2 in the District Court of the Western District of Texas, plaintiff Don Holland alleged that Paul and executives at CryptoZoo (CZ) “executed a ‘rug pull’” by promising purchasers of the nonfungible tokens (NFTs) exclusive access to crypto assets among other benefits, but ultimately abandoned the project and kept the funds.

"As part of Defendants’ NFT scheme, Defendants marketed CZ NFTs to purchasers by falsely claiming that, in exchange for transferring cryptocurrency to purchase the CZ NFT, purchasers would later receive benefits, including, among other things, rewards, exclusive access to other cryptocurrency assets, and the support of an online ecosystem to use and market CZ NFTs," it wrote.

"In reality, soon after completing the sale of all their CZ NFTs, Defendants, together with others [...] transferred millions of dollars’ worth of purchasers’ cryptocurrency to, among other places, wallets controlled by Defendants," it alleged.

The lawsuit was submitted by attorneys from Ellzey & Associates and Attorney Tom and Associates, the latter of which is the law firm run by YouTube personality Attorney Tom.

In a YouTube video on Jan. 16, Attorney Tom told viewers that they are suing Paul over the alleged crypto scam after “weeks of investigation and speaking to a number of Crypto Zoo victims.”

Other defendants named in the suit include Danielle Strobel, Jeff Levin, Eddie Ibanez, Jake Greenbaum (Crypto King) and Ophir Bentov (Ben Roth), according to Attorney Tom.

This lawsuit comes despite Paul unveiling a $1.5 million recovery plan for disgruntled investors in the CryptoZoo project via a video on Twitter on Jan. 13.

He also revealed that he is no longer going to sue CoffeeZilla over his allegations that his project is a scam, stating that suing him is “not going to help Cryptozoo holders,” adding that he wants to focus on “fans and supporters of him.”

Related: Logan Paul backflips on defamation lawsuit against Coffeezilla, apologizes

Paul outlined his recovery plan will consist of three stages — stating the first stage will be himself and the co-founder of CryptoZoo, Jeff Levin, burning their ZOO token holdings.

He clarified in doing this they will “have no financial upside” in the game, and it will “add value to the holders’ tokens.”

Paul claimed the second stage will involve him personally committing 1,000 Ether (ETH) to the project so that “disappointed” investors can burn their NFTs to get their initial investment of 0.1 ETH back, the cost to mint the NFT.

Meanwhile the third and final stage he hopes to “deliver the game as outlined in the whitepaper.”

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Poland’s Consumer Protection Agency Opens Case Against Cryptocurrency Exchange

Poland’s Consumer Protection Agency Opens Case Against Cryptocurrency ExchangeThe body ensuring that consumer rights are respected in Poland has initiated proceedings against a crypto exchange falsely claiming to be Polish. The trading platform also misled customers that it was operating with the regulatory approval of the financial authorities in the country. Belize-based Exchange Risks Hefty Fine in Poland for Allegedly Deceiving Crypto Traders […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Belarusian Fined $1 Million for Illegal Crypto Trading

Belarusian Fined  Million for Illegal Crypto TradingA Belarusian citizen will have to pay a hefty fine for illegally organizing the exchange of cryptocurrencies online. Law enforcement authorities in the country, where certain crypto activities are legal, do not plan to impose other penalties besides the administrative measure. Cryptocurrency Trader Tries to Challenge Fine in Belarusian Court The Supreme Court of the […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

Ooki DAO misses lawsuit response deadline, default judgment on the cards

The commodities regulator has begun the process of getting a court ruling on the Ooki DAO case after the latter failed to respond to the lawsuit by the deadline.

The Commodity Futures Trading Commission (CFTC) has begun the process of getting a default judgment in its case against Ooki DAO after the latter missed the deadline to respond to the lawsuit. 

According to a Jan. 11 court filing, the regulator has requested the court for an "entry of default" against the decentralized autonomous organization (DAO), stating it had missed the deadline to "answer or otherwise defend" as instructed by the summons. 

If approved, the entry of default will establish Ooki DAO has failed to plead or defend itself in court and will no longer be able to answer or respond to the suit.

An "entry of default" is the first step in the process of gaining a default judgment — a ruling handed down by the court when the defendant fails to defend a lawsuit.

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The lawsuit in question was filed by the CFTC on Sept. 22, accusing Ooki DAO of illegally offering “leveraged and margined” digital asset commodity transactions to retail traders along with failing to enact a way to identify customers and “engaging in activities only registered futures commission merchants (FCM) can perform.”

Related: CFTC action shows why crypto developers should get ready to leave the US

The lawsuit was served to the DAO through its help chat box along with a notice on its online forum.

In December, District Judge William Orrick ordered the regulator to serve Tom Bean and Kyle Kistner, the founders of a predecessor trading platform to Ooki DAO, adding the CFTC “should serve at least one identifiable Token Holder if that is possible.”

Bringing forward the lawsuit without clear regulatory guidelines had many criticize the regulator. CFTC commissioner Summer Mersinger even called the action a “regulation by enforcement” approach.

The case could set an interesting precedent for future lawsuits involving DAOs as charges and enforcement will be carried out against an organizational structure with no central body that often includes anonymous members.

In a Dec. 20 court filing, Judge Orrick said Ooki DAO "has the capacity to be sued as an unincorporated association under state law" but said that does not "necessarily establish" the DAO is an association which can be held liable under commodities regulations.

He added those questions can be addressed "later in litigation."

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Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

FTX Co-Founder Faces ‘No-Nonsense’ Judge Next Week, Report Says SBF ‘Expected to Enter a Plea’ in Fraud Case

FTX Co-Founder Faces ‘No-Nonsense’ Judge Next Week, Report Says SBF ‘Expected to Enter a Plea’ in Fraud CaseAccording to court documents, Sam Bankman-Fried (SBF) is set to be arraigned by the federal court in the Southern District of New York (SDNY) on Jan. 3, 2023. The disgraced FTX co-founder plans to enter a plea in his fraud case in front of U.S. judge Lewis Kaplan in Manhattan, according to a report published […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate 

BTC-e’s Alexander Vinnik Applies for Release on Bail Citing Trial Delay

BTC-e’s Alexander Vinnik Applies for Release on Bail Citing Trial DelayThe alleged operator of crypto exchange BTC-e, Alexander Vinnik, has asked to be released on bail due to the delay in court proceedings. In early August, the Russian IT specialist was extradited to the United States to face charges of money laundering through the now-defunct coin trading platform. Vinnik’s Defense Appeals for His Release on […]

Saylor Projects Bitcoin’s Market Cap Will Hit $500 Trillion, Demonetizing Gold and Real Estate