Crypto Fraudster Sentenced to 30 Months for $8.4M Ponzi Scheme

Hodl Topic, February 3rd, 2025

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🌍 Daily Crypto Market Overview

Global Stats:

• Cryptocurrencies: 10.62M+

• Exchanges: 780

• Market Cap: $3T (-12.34%)

• 24h Volume: $250B (+163.61%)

• Bitcoin Dominance: 62.2%

• Ethereum Dominance: 9.8%

• ETH Gas Price: 465.55 Gwei

• Fear & Greed Index: 39 (Fear)

🪙 Top 5 Cryptocurrencies by Market Cap:

🚀 Trending on DexScan:

1. YE/SOL – +3433%

2. COINBASE/SOL – +50.15%

3. Carti/SOL – +230%

4. LCP/SOL – +93.09%

5. FAFO/SOL – +96.93%

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💹 Market Highlights:

• Total DeFi Volume: $16.31B (6.52% of market)

• Stablecoins Volume: $229.83B (91.93% of market)

• Biggest % Gainer: XRP (+28.95%)

📈 Preview On Today’s News:

1. - Vitalik Buterin Declines Bitcoin Allocation Rule, Stands committed to Ethereum

2. - Bitcoin Dominance Surges Past 60% as Altcoins Struggle 

3. - India Slaps 70% Tax Penalty on Undisclosed Crypto Gains 

Keep reading below for more!

Today’s News:

1)

Vitalik Buterin Declines Bitcoin Allocation Rule, Stands committed to Ethereum

Ethereum co-founder Vitalik Buterin has rejected the idea that investors should allocate at least 10% of their portfolios to Bitcoin, as suggested by crypto analyst Udi Wertheimer. Buterin revealed that his Bitcoin holdings are below this threshold, emphasizing his strong commitment to Ethereum while maintaining a cautious approach to diversification. Meanwhile, Ethereum’s price has struggled to break key resistance levels, with experts warning of a potential drop to $2,500 if whale activity remains low. Buterin also addressed concerns about Layer 2 networks, arguing they should enhance Ethereum’s value rather than be abandoned in favor of raising the Layer 1 gas limit. He proposed that Layer 2 networks contribute by burning fees or staking proceeds, reinforcing Ethereum’s long-term stability.

• Vitalik Buterin dismissed the idea of a 10% Bitcoin allocation, reaffirming his commitment to Ethereum while maintaining a diversified but ETH-heavy portfolio.

• Amid Ethereum’s price stagnation and concerns over Layer 2 impact, Buterin advocated for Layer 2 networks to enhance ETH’s value through fee burning and staking contributions.

2)

Bitcoin Dominance Surges Past 60% as Altcoins Struggle 

Bitcoin’s market dominance has climbed above 60% amid a broader crypto downturn triggered by U.S. President Donald Trump’s newly imposed trade tariffs. Investors are shifting away from riskier assets like altcoins, with Ethereum (ETH) dropping 9.3%, XRP (XRP) down 13.8%, and Solana (SOL) plunging 19.3% in the past week. The tariffs, which include a 25% tax on Canadian imports, 25% on Mexican products, and 10% on Chinese goods, have sparked inflation fears and a rush toward safer investments. Analysts predict further short-term pain for crypto markets, with potential corrections on the horizon as macroeconomic uncertainties persist.

• Bitcoin’s dominance surpassed 60% as altcoins suffered steep declines, with ETH, XRP, and SOL seeing significant losses following new U.S. trade tariffs.

• Analysts warn of further market corrections due to economic uncertainty, high inflation concerns, and shifting investor sentiment toward safer assets.

3)

India Slaps 70% Tax Penalty on Undisclosed Crypto Gains 

India has introduced a stringent new tax policy that imposes a 70% penalty on cryptocurrency gains that remain undisclosed for up to 48 months after the relevant tax assessment year. The amendment places cryptocurrencies under Section 158B of the Income Tax Act, categorizing them alongside traditional assets like money, jewelry, and bullion. This move follows a crackdown on tax evasion within the crypto sector, with Indian authorities previously identifying over $97 million in unpaid taxes from crypto exchanges. The policy, effective retroactively from February 1, 2025, aligns with broader global tax enforcement trends, as countries like the US and Italy also refine their crypto taxation approaches.

• India’s new tax rule enforces a 70% penalty on undisclosed crypto gains, treating them like traditional assets under the Income Tax Act.

• The policy follows government crackdowns on tax evasion, with over $97 million in unpaid taxes identified among crypto exchanges, and takes effect retroactively from February 1, 2025.

4)

Crypto Fraudster Sentenced to 30 Months for $8.4M Ponzi Scheme

Antonia Perez Hernandez, a key promoter of the Forcount Ponzi scheme, has been sentenced to 30 months in prison after pleading guilty to conspiracy to commit wire fraud. Operating between 2017 and 2021, Forcount falsely claimed to be a crypto trading and mining firm, luring investors with promises of doubling their money in six months. Instead, victims were shown fake profits on an online portal, with withdrawals funded by new investors. When complaints rose, Hernandez and co-conspirators launched a new crypto token, “Mindexcoin,” misleading investors further. Some victims lost life savings, retirement funds, and even marriages. While Hernandez expressed remorse, the scheme's mastermind, Francisley Da Silva, remains in custody in Brazil.

• Antonia Hernandez was sentenced to 30 months for her role in the Forcount Ponzi scheme, which defrauded investors of $8.4 million with false promises of high returns.

• Victims suffered severe financial and personal losses, while the scheme’s mastermind, Francisley Da Silva, remains in custody in Brazil.

5)

US Lawmakers Alarmed Over Elon Musk’s Control of Treasury Payments 

US lawmakers are raising national security concerns after Elon Musk’s Department of Government Efficiency (D.O.G.E) was granted unrestricted access to the US Treasury’s payment systems. Treasury Secretary Scott Bessent approved the access at Musk’s request, putting $6 trillion in federal payments—including Social Security, Medicare, and government contracts—within Musk’s reach. Critics, including Senator Ron Wyden, warn that Musk’s extensive business ties and influence over federal finances pose cybersecurity risks, particularly given potential vulnerabilities linked to China. The move has triggered lawsuits and warnings from ethics watchdogs, with concerns that D.O.G.E’s unchecked power could lead to conflicts of interest and legal violations. Despite the backlash, Musk claims his oversight will expose wasteful spending, pledging to cut $4 billion in daily federal expenses.

• Elon Musk’s D.O.G.E has gained unrestricted access to $6 trillion in US Treasury payments, sparking national security concerns and legal challenges from lawmakers and watchdogs.

• Critics warn that Musk’s influence over federal payments could pose cybersecurity risks and conflicts of interest, but he insists his oversight will eliminate wasteful government spending.

6)

India Reassesses Crypto Regulations Amid Global Shifts 

India is reevaluating its cryptocurrency regulatory framework following shifts in global attitudes. Economic Affairs Secretary Ajay Seth confirmed that the review considers evolving regulatory positions in multiple jurisdictions, delaying a discussion paper initially set for September 2024. This comes after President Trump’s executive order directing U.S. agencies to reassess digital asset regulations. Despite India's strict tax policies and oversight, cryptocurrency investments continue to grow. The Reserve Bank of India remains cautious, while other regulators suggest a more inclusive approach, signaling potential adjustments to India's regulatory stance.

• India is reconsidering its crypto regulations, delaying a planned discussion paper as it evaluates global policy shifts and U.S. regulatory actions.

• While India maintains strict oversight and taxation, growing crypto investments and regulatory discussions suggest possible changes to its stance.

7)

UBS Leverages Blockchain to Expand Retail Gold Investments 

UBS, Switzerland’s largest bank, has successfully tested its blockchain-powered fractional gold investment product, UBS Key4 Gold, on ZKsync Validium—a layer 2 Ethereum scaling solution. This innovation aims to make gold investing more accessible to retail investors by improving transaction efficiency, privacy, and scalability. Initially built on the UBS Gold Network, the project now benefits from ZKsync’s off-chain data storage for enhanced security and interoperability. UBS’s blockchain adoption follows its recent launch of a tokenized fund on Ethereum, reinforcing its commitment to integrating digital assets into traditional finance.

• UBS tested its Key4 Gold product using ZKsync Validium, enhancing transaction security, scalability, and accessibility for retail gold investors.

• This move aligns with UBS’s broader blockchain strategy, following its tokenized fund launch and aiming for further expansion in digital finance by 2025.

8)

Bitcoin Mempool Nearly Empty as Transaction Activity Declines 

The Bitcoin network’s mempool, the queue of unprocessed transactions, has rapidly depleted, reaching an almost empty state on February 1, 2025, according to CryptoQuant's head of research, Julio Moreno. This decline in pending transactions follows an 11-month low in Bitcoin network activity, with transaction volume decreasing by 43% from its all-time high in October 2024. The drop in activity has resulted in lower transaction fees and several unfilled Bitcoin blocks, raising concerns about mining profitability, especially post-halving. In response, some mining companies are exploring diversification into artificial intelligence (AI) computing and high-performance workloads. Meanwhile, Bitcoin’s price has remained volatile, recently dropping below $100,000 despite expectations of new local highs driven by spot BTC ETF adoption and growing national interest in Bitcoin.

• The Bitcoin mempool has rapidly cleared, with transaction volumes dropping 43% since October 2024, leading to lower fees and unfilled blocks, raising concerns for miners.

• In response to declining mining profitability, companies are exploring diversification into AI and high-performance computing, while Bitcoin’s price fluctuates below $100,000 despite growing institutional and national interest.

9)

UBS Trials Digital Gold Trading on Ethereum with ZKsync 

UBS, Switzerland’s leading banking institution, has launched a digital gold investment trial using Ethereum’s layer-2 solution, ZKsync. The initiative, part of the UBS Gold Network, aims to modernize gold trading by enabling fractional investments, real-time pricing, and secure storage on the blockchain. The trial leverages ZKsync Validium to enhance scalability, privacy, and interoperability, positioning UBS at the forefront of integrating traditional assets with blockchain technology. If successful, this project could reshape global gold markets and set a precedent for future digital asset management.

• UBS is testing a digital gold investment platform on Ethereum, offering fractional investments, real-time pricing, and secure storage.

• The trial utilizes ZKsync Validium for improved scalability and privacy, potentially transforming gold trading and asset management globally.

10)

Crypto Options Market Rebounds Amid Shifting Sentiment 

The cryptocurrency options market is recovering following a sharp sell-off earlier this week, driven by changing sentiment among traders, according to a report from Bybit and Block Scholes. Bitcoin options trading volume surged to nearly $250 million in a single day, despite a drop in BTC’s spot price, while both realized and implied volatility declined. Ethereum options also saw heightened activity, with open interest favoring calls, reflecting investor confidence. Meanwhile, Solana initially spiked due to meme coin launches but retraced in line with the broader downturn. The market remains skewed toward out-of-the-money call options, indicating a continued bullish outlook among traders.

• Bitcoin and Ethereum options trading surged despite the recent sell-off, with declining volatility suggesting a stabilizing market.

• Solana’s rally, driven by meme coins, was short-lived, but the market’s preference for call options signals sustained bullish sentiment.