The Shib Crypto Recap: Wednesday

This Wednesday, the news cycle is buzzing with significant law enforcement action against crypto fraud, market discussions, the involvement of well-known influencers in tokens that have crashed, and TikTok facing scrutiny for allegedly operating in a manner akin to a cryptocurrency exchange.

High-Tech Romance Scam: 27 Arrested in $46M Cross-Border Crypto Fraud

Police in Hung Hom, Hong Kong, discovered a large cross-border fraud operation that swindled over HK$360 million (approximately $45.93 million USD) from victims worldwide. They arrested 27 individuals, aged 21 to 34, on charges of conspiracy to defraud and possession of offensive weapons. The fraud involved local university graduates, overseas scammers, and IT experts who set up a fake cryptocurrency investment platform. They used a sophisticated “romance scam,” employing AI-driven “deepfake” technology to create virtual romantic connections with victims.

Most of the fraudsters were male, and many victims were from mainland China, Taiwan, India, and Singapore. The police are now working with international authorities to shut down this operation and ensure accountability.

Tesla Moves $770M in Bitcoin: What’s Behind the 11,509 BTC Transfer?

Tesla has relocated its full Bitcoin holdings of 11,509 BTC, valued at roughly $770 million, to new wallet addresses after being inactive for two years. Arkham Research observed the transfer, which was executed via 26 transactions, including six test runs. This is Tesla’s first movement with its Bitcoin since June 2022. As of mid-October 2024, Tesla’s Bitcoin was estimated at 9,720 BTC, worth about $650 million, but it officially holds a total of 11,509 BTC spread across 68 addresses. This ranking makes Tesla the third-largest Bitcoin holder among publicly traded firms, following MicroStrategy and Marathon Digital. The purpose of the transfer remains unclear, as no Bitcoin has been sent to any known exchanges. This led to two theories: Tesla may be preparing to sell or may be restructuring its asset management for better oversight.

MrBeast’s Crypto Profits and TikTok’s Currency Concerns: A Dual Crisis in the Influencer Economy

A recent probe into famous YouTuber MrBeast, shows he made over $10 million by endorsing low-cap crypto tokens that later fell over 90% in value. This left many retail investors facing heavy losses. The investigation focuses on MrBeast’s connection to SuperFarm, now known as SuperVerse. Blockchain analyst Arkham Intelligence found that he turned a $100,000 investment into more than $9 million via this venture. In February 2021, his wallet got $100,000 in USDC from Binance, which he exchanged for 1 million $SUPER tokens. After selling them, he netted millions, while $SUPER has since dropped by 75%. MrBeast has also made investments in SPLYT, $STAK, and VeeFriends NFTs, among other projects.

Meanwhile, in the UK, TikTok faces scrutiny over its operation akin to a cryptocurrency exchange. According to Financial News, a compliance expert flagged TikTok Coins, a virtual currency system, to the Financial Conduct Authority (FCA). Individuals can use fiat to buy these coins as gifts for creators, yet there are apprehensions about the ability to cash them out later. This mirrors cryptocurrency transactions and is therefore attracting regulatory attention. The expert noted risks of money laundering and terrorist financing, as well as potential security threats to user financial data. The expert also warned that TikTok’s operations might classify it as a money service business under FCA rules. Consequently, it may need to follow similar registration and reporting obligations as cryptocurrency platforms.

Italy’s New 42% Tax on Bitcoin Investments Announced

Italy intends to increase the capital gains tax on Bitcoin from 26% to 42%, as announced by Deputy Economy Minister Maurizio Leo. This change is included in the budget bill recently approved by the Council of Ministers. The new tax rate will apply to profits from Bitcoin investments. The goal is to update tax policies for digital assets and enhance state revenue. Furthermore, Italy plans to eliminate thresholds for the Digital Services Tax (DST). Leo indicated that the government is removing the revenue ceiling of €750 million and the €5 million limit for web tax revenues. This tax hike supports Italy’s broader budget strategy of €30 billion for 2025.

Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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