Las Vegas Man Charged in $24,000,000 Crypto Ponzi Scheme

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📈 Preview On Today’s News:

1. - Las Vegas Man Charged in $24,000,000 Crypto Ponzi Scheme

2. - BTC-e Operator Freed in U.S.-Russia Prisoner Swap

3. - Wisconsin Expands Bitcoin ETF Holdings to $321M Amid Growing State Interest

Keep reading below for more!

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Today’s News:

1)

Las Vegas Man Charged in $24,000,000 Crypto Ponzi Scheme

Brent Kovar, the founder of Profit Connect, has been charged with defrauding over 400 investors out of $24 million through a crypto-linked Ponzi scheme. From late 2017 to July 2021, Kovar falsely promised fixed annual returns of 15-30% and a 100% money-back guarantee, misleading investors into believing their funds were secure. Instead of using the money for AI-driven crypto mining as claimed, he spent it on luxury purchases, employee gifts, and Ponzi-like repayments. Facing 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering, Kovar could face up to 330 years in prison and a $4.5 million fine if convicted.

• Brent Kovar misled over 400 investors with false claims of AI-driven crypto mining, using their funds for personal expenses instead.

• If convicted, Kovar faces a maximum sentence of 330 years in prison and significant financial penalties for his role in the $24 million Ponzi scheme.

2)

BTC-e Operator Freed in U.S.-Russia Prisoner Swap

Russian national Alexander Vinnik, who operated the BTC-e exchange and was convicted of running a multi-billion-dollar money-laundering scheme, has been released as part of a prisoner exchange between Russia and the United States. In return, Russia freed American schoolteacher Marc Fogel, who had been detained on drug charges. Vinnik was extradited to the U.S. in 2022 after facing legal battles in Greece and France, where he had already served a sentence for money laundering. In May 2024, he pleaded guilty to conspiracy to commit money laundering, with prosecutors linking BTC-e to over $120 million in financial crimes. As part of the deal, Vinnik will forfeit tens of millions of dollars in seized assets.

• Alexander Vinnik, the operator of BTC-e, was released in a U.S.-Russia prisoner swap after pleading guilty to money laundering charges linked to over $120 million in illicit transactions.

• The exchange for American teacher Marc Fogel marks a rare diplomatic agreement between the two nations amid ongoing tensions, with Vinnik forfeiting millions in seized assets as part of the deal.

3)

Wisconsin Expands Bitcoin ETF Holdings to $321M Amid Growing State Interest

Wisconsin’s pension fund has significantly increased its Bitcoin ETF holdings, raising its investment to $321 million, as confirmed by an SEC filing on February 14. Initially investing $164 million in May 2024, the fund has now shifted entirely to BlackRock’s iShares Bitcoin Trust (IBIT) after selling off its Grayscale Bitcoin Trust (GBTC) holdings. This move aligns with a broader trend of institutional adoption, with Michigan and Florida also making Bitcoin ETF investments, while North Carolina lawmakers have introduced a bill to permit similar state treasury investments.

• Wisconsin’s pension fund increased its Bitcoin ETF investment to $321 million, exclusively holding BlackRock’s IBIT after selling off Grayscale’s GBTC.

• Other states, including Michigan and Florida, have also invested in Bitcoin ETFs, while North Carolina is considering legislation to allow such investments in public funds.

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4)

Michigan Explores Crypto Reserves with House Bill 4087

Michigan has become the 20th U.S. state to explore a digital currency-backed reserve through House Bill 4087, introduced by Representatives Bryan Posthumus and Ron Robinson. The bill proposes allowing the state treasurer to invest up to 10% of Michigan’s general and economic stabilization funds in cryptocurrency, with secure custody and management through regulated investment companies. Additionally, it permits crypto lending for additional returns, provided financial risks remain controlled. Payments made to the state in cryptocurrency must be converted into fiat and deposited into the general fund. While Michigan joins 19 other states in similar initiatives, Utah is expected to pass such legislation first due to its fast-tracked 45-day legislative process. Meanwhile, Texas has reintroduced a bill to establish a state-run Bitcoin reserve, expanding investment scope to include digital assets with a market cap above $500 billion.

• House Bill 4087 would allow Michigan to allocate up to 10% of state funds into cryptocurrency investments and lending, ensuring secure management and controlled financial risk.

• Michigan joins 19 states exploring crypto reserves, but Utah is expected to act first, while Texas moves forward with a state-run Bitcoin reserve proposal.

5)

LIBRA Token Crashes 90% After Argentina’s President Withdraws Support

Argentina’s LIBRA meme token, initially promoted by President Javier Milei, surged to a $4.5 billion market cap before plummeting by 90% amid legitimacy concerns. Following the crash, Milei deleted his promotional tweet, stating he unknowingly endorsed what he believed to be a legitimate private enterprise. On-chain analytics firms raised red flags, with Chainalysis pointing out unusual address control patterns and Bubblemaps accusing the LIBRA team of orchestrating a pump-and-dump scheme, allegedly profiting $87 million. One trader alone lost $2.07 million within hours due to the token’s sudden collapse.

• Argentina’s LIBRA token, endorsed by President Milei, soared before crashing 90% due to doubts about its legitimacy, leading Milei to retract his support.

• On-chain analysts flagged suspicious address control, with Bubblemaps accusing the team of a pump-and-dump scheme that reportedly netted $87 million.

6)

Tether Engages U.S. Lawmakers as Stablecoin Regulations Take Shape

Tether, the largest stablecoin issuer with a market cap exceeding $120 billion, is actively working with U.S. lawmakers to shape upcoming regulations. The company has been in discussions with Representatives Bryan Steil and French Hill regarding the STABLE Act, introduced on February 6, 2025, as well as two other stablecoin bills. CEO Paolo Ardoino reaffirmed Tether’s commitment to adapting to U.S. regulations, stating that the company will not abandon compliance efforts. These discussions come amid growing regulatory scrutiny of the crypto sector, particularly as Howard Lutnick—chairman of Cantor Fitzgerald and a key figure in Tether’s operations—has been nominated for Secretary of Commerce, raising concerns over potential conflicts of interest. Additionally, the crypto industry has ramped up its political engagement, spending around $119 million on federal election campaigns in 2024 to influence legislation on stablecoins and crypto regulations.

• Tether is collaborating with U.S. lawmakers on the STABLE Act and other regulations, emphasizing its commitment to compliance amid increasing scrutiny.

• With a key figure in Tether’s operations nominated as Secretary of Commerce and crypto firms spending $119M on political campaigns, regulatory influence remains a top industry focus.

7)

Powell’s Bitcoin Remarks Signal a Shift in Market Sentiment

Federal Reserve Chairman Jerome Powell has drawn fresh attention to Bitcoin by comparing it to gold during a discussion at the New York Times DealBook Summit. This marks a notable shift from his previous skepticism, suggesting a broader acceptance of Bitcoin as a speculative investment. Binance founder Changpeng Zhao welcomed Powell’s remarks, interpreting them as a positive development that could influence investor sentiment and market dynamics. Meanwhile, economic factors such as inflation concerns and uncertain interest rate policies continue to contribute to volatility in Bitcoin and other digital assets.

• Powell’s comparison of Bitcoin to gold signals a shift in perception, prompting reactions from financial leaders like Binance’s Changpeng Zhao.

• Economic uncertainty, including inflation and interest rate concerns, continues to impact Bitcoin’s market behavior and investor strategies.

8)

Remixpoint Expands Crypto Portfolio with XRP and Dogecoin Investments

Japanese energy firm Remixpoint has significantly increased its cryptocurrency holdings, nearing its ¥10 billion ($85.7M) investment goal. By February 13, 2025, the company had acquired ¥9 billion ($59.1M) worth of digital assets, including Bitcoin, Ethereum, Solana, XRP, and Dogecoin, marking a staggering 13,000% increase from its March 2024 valuation. Remixpoint’s strategic investment in XRP and Dogecoin highlights growing institutional interest in these assets, particularly following XRP’s 336% price surge between November 2024 and January 2025. The rising demand has also spurred applications for XRP and Dogecoin exchange-traded funds (ETFs), with regulatory filings now under review by the U.S. Securities and Exchange Commission.

• Remixpoint has grown its crypto portfolio by 13,000% since March 2024, accumulating $59.1M in assets, including Bitcoin, Ethereum, Solana, XRP, and Dogecoin.

• The company’s investment in XRP and Dogecoin reflects rising institutional interest, with ETF applications under SEC review, signaling broader market adoption.

9)

Tether Joins US Lawmakers to Shape Stablecoin Regulations

Tether is actively collaborating with US lawmakers to help shape stablecoin regulations, aiming to balance innovation with security. Three bills—the STABLE Act, the GENIUS Act, and a proposal by Maxine Waters—are under review, each addressing different aspects of oversight, including bipartisan support, federal and state regulatory control, and strict issuer registration requirements. Tether’s CEO, Paolo Ardoino, emphasized the company’s commitment to contributing meaningful insights to ensure stablecoin rules foster both growth and investor protection. Lawmakers aim to finalize these regulations by April 2025, marking a crucial step in defining the future of the stablecoin market.

• Tether is working with lawmakers on three proposed stablecoin bills, aiming to create a clear regulatory framework by April 2025.

• The bills address bipartisan support, federal and state oversight, and strict issuer requirements, with Tether advocating balanced regulations that promote both security and industry growth.

10)

Jerome Powell’s Shift on Bitcoin Sparks Market Interest

Federal Reserve Chairman Jerome Powell has notably softened his stance on Bitcoin, likening it to gold and acknowledging its role as a speculative asset. This shift, revealed during the New York Times DealBook Summit, has drawn attention from investors and industry leaders, including Binance founder Changpeng Zhao (CZ), who views it as a positive development. Powell’s remarks come amid heightened market uncertainty driven by rising inflation and the Federal Reserve's reluctance to cut interest rates, leaving investors closely monitoring Bitcoin’s future trajectory.

• Powell, previously critical of Bitcoin, now compares it to gold, signaling a shift in his perspective and drawing market attention.

• CZ and investors see Powell’s shift as progress, but economic concerns, including inflation and interest rate policies, continue to influence digital asset markets.

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