AML Bitcoin creator convicted of wire fraud, money laundering
The founder of a cryptocurrency exchange whose namesake was tied to Anti-Money Laundering (AML) was found guilty of wire fraud and money laundering in a California court.In a March 12 trial in the US District Court for the Northern District of California, a jury found AML Bitcoin creator Rowland Marcus Andrade guilty of two felony counts as part of a scheme to defraud investors. Authorities initially filed criminal charges against Andrade in June 2020 in parallel to a civil case filed by the US Securities and Exchange Commission (SEC) against the AML Bitcoin creator and the NAC Foundation, for which he was the founder and CEO.“Mr. Andrade’s outrageous lies lured and scammed individuals into investing their hard-earned money into a new cryptocurrency with fabricated features,” said Linda Nguyen, the IRS Criminal Investigation Oakland Field Office Special Agent in Charge. “But there is nothing advanced about this scheme. Rowland Marcus Andrade stole money from innocent people and used it to further his personal wealth.”Rowland Marcus Andrade jury verdict on March 12. Source: PACERThe SEC’s civil case against Andrade was notable for the involvement of political lobbyist Jack Abramoff, who served four years in prison between 2006 and 2010 following his conviction on mail fraud, conspiracy to bribe public officials and tax evasion. A judge agreed to stay the SEC lawsuit in January 2021 until the conclusion of Andrade’s criminal case, suggesting that it may once again proceed soon.The June 2020 indictment alleged the NAC Foundation claimed a cryptocurrency that AML Bitcoin would launch — it never did — would comply with money laundering and Know Your Customer (KYC) regulations. Andrade used those claims for an initial coin offering between 2017 and 2018. According to the information presented at his trial, the AML Bitcoin creator diverted more than $2 million in proceeds from the sale of the platform, spending it on real estate and luxury automobiles.Related: IRS wants court to toss crypto exec’s appeal over bank record summons“Andrade falsely claimed, among other misrepresentations, that the Panama Canal Authority was close to permitting AML Bitcoin to be used for ships passing through the Panama Canal when no such agreement existed,” said the Justice Department.The AML Bitcoin creator is scheduled to return to court for a sentencing hearing on July 22, having remained free on a $75,000 bond since 2020 with some travel restrictions. He faces a maximum penalty of 20 years in prison for the wire fraud count and 10 years for the money laundering count.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Hyperliquid ups margin requirements after $4 million liquidation loss
Hyperliquid, a blockchain network specializing in trading, has increased margin requirements for traders after its liquidity pool lost millions of dollars during a massive Ether (ETH) liquidation, the network said. On March 12, a trader intentionally liquidated a roughly $200 million Ether long position, causing Hyperliquid’s liquidity pool, HLP, to lose $4 million, unwinding the trade. Starting March 15, Hyperliquid will begin requiring traders to maintain a collateral margin of at least 20% on certain open positions to “reduce the systemic impact of large positions with hypothetical market impact upon closing,” Hyperliquid said in a March 13 X post. The incident highlights the growing pains confronting Hyperliquid, which has emerged as Web3’s most popular platform for leveraged perpetual trading. Hyperliquid has adjusted margin requirements for traders. Source: HyperliquidHyperliquid said the $4 million loss was not from an exploit but rather a predictable consequence of the mechanics of its trading platform under extreme conditions. “[Y]esterday’s event highlighted an opportunity to strengthen the margining framework to address extreme conditions more robustly,” Hyperliquid said. These changes only apply in certain circumstances, such as when traders are withdrawing collateral from open positions, Hyperliquid said. Traders can still take on new positions with up to 40 times leverage.Perpetual futures, or “perps,” are leveraged futures contracts with no expiry date. Traders deposit margin collateral — typically USDC (USDC) for Hyperliquid — to secure open positions. By withdrawing most of his collateral and liquidating his own position, the trader effectively cashed out of his trade without incurring slippage — or losses from selling a large position all at once. Instead, those losses were borne by Hyperliquid’s HLP liquidity pool. Hyperliquid’s HLP has more than $350 million in TVL. Source: DeFiLlamaRelated: Crypto market liquidations likely reached $10B — Bybit CEOLeading perps exchangeAs of March 13, HLP has a total value locked (TVL) of approximately $340 million sourced from user deposits, according to DefiLlama. Launched in 2024, Hyperliquid’s flagship perps exchange has captured 70% of the market share, surpassing rivals such as GMX and dYdX, according to a January report by asset manager VanEck. Hyperliquid touts a trading experience comparable to a centralized exchange, featuring fast settlement times and low fees, but is less decentralized than other exchanges.As of March 12, Hyperliquid has clocked approximately $180 million per day in transaction volume, according to DefiLlama. Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Banks push to block stablecoin legislation over market share fears
Bankers and their allies in the US Senate are pushing back against the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act over fears that stablecoins will disintermediate banks and erode banking market share.According to an article from American Banker, the bill requires 60 votes to pass in the Senate, meaning that at least seven Democrats will have to vote with Republicans to push through the Act.This could prove a difficult proposition, as US Senator Elizabeth Warren, one of crypto’s staunchest political critics, is proposing an amendment prohibiting tech firms from issuing stablecoins. Warren wrote:“If these firms want to engage in payments, they must partner with, or facilitate transactions among, regulated financial institutions. But this stablecoin bill breaks that status quo by green-lighting big tech companies and other commercial conglomerates to issue their own stablecoins.”Digital assets continue to be a disruptive force in finance and banking due to near-instant settlement times and cheaper transaction fees, which significantly reduce the burden of cross-border payments and introduce peer-to-peer transactions.Page one of the GENIUS Act of 2025. Source: US SenateRelated: The GENIUS stablecoin bill is a CBDC trojan horse — DeFi execStablecoins: The way forward for USD in the 21st century?The GENIUS stablecoin bill was introduced by Senator Bill Hagerty on Feb. 4 as a comprehensive regulatory framework for tokenized US dollars.Shortly after the bill was introduced to the US Senate, Federal Reserve Bank Governor Christopher Waller said non-banks should be allowed to issue stablecoins.Waller argued that stablecoins could expand payment use cases, particularly in the developing world, due to their cost-savings and efficiency.Stablecoin fees vs. legacy payment processing solutions. Source: Simon TaylorBank of America CEO Brian Moynihan told an audience at the Economic Club of Washington DC that the bank may enter the stablecoin business — likely launching its own dollar-pegged stable token.During the first White House Crypto Summit on March 7, Treasury Secretary Scott Bessent said the US will use stablecoins to extend US dollar dominance.Overcollateralized stablecoin issuers are collectively the 18th largest buyers of US government debt in the world — putting these firms ahead of countries like Germany and South Korea.By adopting pro-stablecoin policies and promoting stablecoin usage worldwide, the US government can use stablecoins as a sponge to soak up inflation and protect the dollar’s status as the global reserve currency.Magazine: Unstablecoins: Depegging, bank runs and other risks loom
Crypto regulation shifts as Bitcoin eyes $105K amid liquidity boost
Bitcoin (BTC) price has risen 8% from its March 11 low of $76,703, driven in part by large investors aggressively buying the dip with leverage. Margin longs on Bitfinex surged to their highest level since November 2024, adding 13,787 BTC over 17 days. Currently standing at $5.7 billion, this bullish leveraged positioning signals confidence in Bitcoin’s upside potential despite recent price weakness.Bitcoin/USD (orange, left) vs. Bitfinex BTC margin longs (right). Source: TradingView / CointelegraphSome analysts argue that Bitcoin’s price is closely linked to the global monetary base, meaning it tends to rise as central banks inject liquidity. With recession risks mounting, the likelihood of expansionary monetary policies increasing the money supply grows. If this correlation holds, Bitfinex whales could be well-positioned to capitalize on a rally above $105,000 in the next two months.Source: pakpakchickenFor instance, X user Pakpakchicken claims to have identified an 82% correlation between the global money supply (M2) and Bitcoin’s price. When central banks drain liquidity by raising interest rates or reducing bond holdings, traders become more risk-averse, leading to weaker demand for Bitcoin. Conversely, periods of monetary easing tend to fuel greater investor interest in the asset, increasing its price potential.Bitfinex whales go long BTC as M2 bottomsIn early September 2024, Bitfinex margin traders added 7,840 BTC in long positions, coinciding with a period of bearish momentum as Bitcoin struggled to reclaim the $50,000 level for over three months. Despite the downturn, Bitfinex whales held their positions, and Bitcoin’s price surged past $75,000 less than two months later. Notably, the global M2 money supply bottomed out around the same time these traders increased their Bitcoin exposure, further reinforcing the correlation.It may be impossible to establish a direct cause-and-effect relationship between money supply and investors’ willingness to accumulate Bitcoin, especially given the influence of major events during these periods. For example, Donald Trump’s election as US president in November 2024 significantly fueled Bitcoin’s rally due to the new administration’s pro-crypto stance, regardless of global M2 trends and liquidity conditions.Spot Bitcoin ETF net flows, USD. Source: CoinGlassSimilarly, Michael Saylor’s latest plan to raise up to $21 billion in fresh capital for Strategy to acquire more Bitcoin could shift market dynamics, even accounting for the $4.1 billion in net outflows from Bitcoin spot exchange-traded funds (ETFs) since Feb. 24. Strategy remains the largest corporate Bitcoin holder, with 499,096 BTC acquired at a total cost of $33.1 billion, reinforcing its long-term bullish strategy.Clearer crypto regulation, Strategy capital increaseIn essence, the expansion of the global money supply may have influenced the increase in Bitfinex margin longs, but Bitcoin’s push toward $105,000 could be primarily driven by industry-specific news and events. A Wall Street Journal report on March 13 revealed that representatives of Donald Trump have held discussions about potentially acquiring a stake in Binance.Related: US Bitcoin ETFs break outflow streak with $13.3M inflowSo far, the market impact of a more crypto-friendly US government has yet to yield concrete benefits. For example, the Office of the Comptroller of the Currency (OCC) has not yet clarified whether banks can custody digital assets and manage stablecoins without prior approval. Similarly, Acting SEC Chairman Mark Uyeda announced plans to remove crypto-specific provisions from a proposed rule that would expand exchange definitions.The US Securities and Exchange Commission is currently reviewing requests from spot Bitcoin ETF issuers to permit in-kind creations and redemptions, allowing shares to be exchanged directly for Bitcoin instead of using the traditional cash-based method.Meanwhile, global macroeconomic conditions have deteriorated, putting pressure on Bitcoin’s price. However, these same factors gradually push governments toward economic stimulus measures and expand the M2 money supply.If this trend continues, it should ultimately create conditions for Bitcoin’s price to meet Pakpakchicken’s $105,000 prediction by May 2025 and possibly go even higher.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Robinhood lists PENGU, POPCAT amid crypto ramp-up
Robinhood has listed memecoins Pengu (PENGU), Pnut (PNUT) and Popcat (POPCAT) as the online brokerage doubles down on cryptocurrency trading, it said on March 13. The listings mark Robinhood’s latest effort to expand its crypto offerings and compete with incumbent exchange Coinbase. Memecoin trading has become a key battleground as rival exchanges — including Coinbase and Binance.US — accelerate new coin listings after US President Donald Trump’s November election win.Robinhood listed new memecoins. Source: RobinhoodRelated: Robinhood tips Singapore launch, touts memecoin interest: ReportStrong demandIn February, Robinhood Crypto said its customers had shown strong demand for more memecoin trading options. In addition to its newly launched coins, Robinhood lists Dogecoin (DOGE), the largest memecoin by market capitalization. It also launched crypto futures trading in January. “We don’t want to make decisions for the customer but if customers are asking for something and we feel like we have a way to offer it safely, we will do it,” Johann Kerbrat, Robinhood Crypto’s vice president and general manager, reportedly told Bloomberg. Robinhood, best known as a stock trading platform, has been investing heavily in crypto products since last year. In February, the online brokerage reported a 700% year-over-year jump in crypto revenues. Trump’s election win and rising market prices fueled across-the-board increases in crypto trading in the fourth quarter of 2024. Robinhood’s change in trading volumes for equities, options contracts and crypto. Source: RobinhoodRegulatory reversalTrump — who has promised to make America the “world’s crypto capital” — has appointed industry-friendly leadership to key regulatory positions. In February, the US Securities and Exchange Commission said most memecoins do not qualify as securities and thus do not fall under the regulators’ jurisdiction. This was a stark reversal from its stance under Joe Biden’s administration when former SEC Chair Gary Gensler said he thought most cryptocurrencies constituted securities. The same month, the agency dropped an enforcement action against Robinhood for alleged securities law violations tied to its crypto trading platform. X Hall of Flame: Memecoins will die and DeFi will rise again — Sasha Ivanov
Circle plans to bring $900M money market fund under DABA license
Circle, the creator of stablecoin USDC (USDC), announced on March 13 plans to bring its Hashnote Tokenized Money Market Fund (TMMF) under Bermuda regulatory oversight through the company’s existing Digital Assets Business Act (DABA) license.Hashnote, which Circle acquired in January 2025, is the issuer of USDY, the largest tokenized treasury and money market fund with a total value locked (TVL) of $900 million, according to DefiLlama. The fund’s TVL has fallen from $1.9 billion as of Jan. 7.Hashnote USYC TVL over time. Source: DefiLlamaRelated: Wall Street is betting on $30T RWA tokenization market prospectsAccording to the announcement, Circle intends to fully integrate USDY with USDC, which would allow for access between the TMMF and the stablecoin. The company believes that this will make USDY “the preferred form” of yield-bearing collateral on crypto exchanges, including for custodians and brokers.According to Freeman Law, Bermuda enacted one of the first legal and regulatory frameworks for governing digital assets. Circle was the first firm in crypto to receive a license under the Bermuda Monetary Authority in September 2021. Bermuda’s Digital Assets Business Act currently permits three types of licenses for companies conducting business under the Act.Tokenized RWAs a “$30-trillion opportunity”In August 2024, Colin Butler, Polygon’s head of institutional capital, said that tokenized real-world assets (RWAs) are a $30-trillion market opportunity globally. He believed that the push would likely come from high-net-worth individuals who will allocate money to alternative assets as tokenization creates liquidity in previously illiquid markets.Also, in August 2024, it was predicted that tokenized US Treasurys would surpass a $3 billion market capitalization by the end of 2024. According to RWA.xyz, the tokenized US Treasurys market cap sits at $4.2 billion at the time of this writing. Hashnote is the No. 2 protocol for tokenized US Treasurys, according to the platform, although its market cap has fallen 21% in the past 30 days.Related: Infrastructure for legally viable RWA tokenization: AMA recap with MantraThe overall market cap for RWAs surpassed $15.2 billion at the end of 2024, driven largely by institutional players who piloted tokenization projects related to a host of real-world goods, including real estate, gold, diamonds and carbon credits. The market cap initially reclaimed an all-time high of $17.1 billion on Feb. 3 but has since gone even further, rising to $18.1 billion at the time of this writing.Tokenization is changing different areas of finance, including creating liquidity for illiquid assets and leveraging the blockchain to facilitate transparent and efficient transactions. It isn’t limited to a single type of asset, which gives the technology broader use cases.Magazine: Tokenizing music royalties as NFTs could help the next Taylor Swift
Changpeng Zhao denies reports of a Binance.US deal, defends Trump
Former Binance CEO Changpeng “CZ” Zhao has recently been at the center of controversy after a Wall Street Journal report claimed that he was seeking a federal pardon from US President Donald Trump. However, CZ has come out to deny these claims and defend himself against the accusations.
In a post on March 13, CZ stated that he has had no discussions regarding a business deal between the Trump family and Binance.US. He also refuted the claims that he was seeking a presidential pardon from Trump, which could potentially allow him to take on a management role at Binance.
CZ further explained that as a former felon, he would not mind a pardon, especially since he was the only person in US history to be sentenced to prison for a single BSA (Bank Secrecy Act) charge. He believes that the Wall Street Journal article was motivated by an attack on both the President and the crypto industry, and that the remnants of the “war on crypto” from the previous administration are still at work.
The controversy surrounding CZ and his alleged involvement with the Trump family has caused quite a stir in the crypto community. Many have expressed their support for CZ and believe that the accusations are unfounded and politically motivated.
This is not the first time CZ has faced criticism and backlash. As the former CEO of Binance, he has been at the forefront of the crypto industry and has faced numerous challenges and controversies. However, he has always remained resilient and has continued to lead Binance to become one of the largest and most successful cryptocurrency exchanges in the world.
As this is a developing story, more information will be added as it becomes available. In the meantime, CZ and Binance will continue to focus on their mission of making cryptocurrency accessible and mainstream.
MoonPay acquires API stablecoin infrastructure platform Iron
Cryptocurrency payments company MoonPay is expanding its presence in the enterprise stablecoin market with the acquisition of Iron, an API-focused stablecoin infrastructure developer, for an undisclosed amount. According to a March 13 announcement, the acquisition will give MoonPay’s enterprise customers the ability to accept stablecoin payments instantly and at a low cost. Iron’s integration also means companies can manage their stablecoin treasuries in real time and use the funds to acquire yield-bearing assets like US Treasury bonds. Source: MoonPay“With Iron’s technology, we’re putting the power of instant, programmable payments into the hands of enterprises, fintechs, and global merchants,” said Ivan Soto-Wright, MoonPay’s CEO.The Iron deal marks MoonPay’s second high-profile acquisition this year. In January, the company acquired Helio, a Solana-based blockchain payment processor, for $175 million. Helio’s existing integrations with Shopify and Discord give MoonPay further inroads into crypto on-ramp services and payment solutions. MoonPay isn’t the only company making inroads into stablecoin payments. As Cointelegraph recently reported, Tether-backed fintech Mansa raised $10 million to further expand its cross-border stablecoin payment infrastructure.Related: Bitcoin may benefit from US stablecoin dominance pushBusiness integrations driving stablecoin adoptionAt more than $230 billion in circulation, stablecoins have become one of blockchain’s most viable use cases. The industry’s success is largely owed to stablecoin integrations by major fintech payment providers, according to Polygon Labs CEO Marc Boiron. In a recent interview with Cointelegraph, Boiron said, “Companies like Stripe and PayPal integrating stablecoins is likely the primary catalyst for their growth.”From regulatory scrutiny to widespread industry adoption, the stablecoin market has grown rapidly since 2020. Source: S&P GlobalBoiron said one of the industry’s most promising developments is yield-bearing stablecoins, which allow holders to earn decentralized finance yield through traditional collateralization. Yield-bearing stablecoin alternatives are on the cusp of a major breakthrough after the US Securities and Exchange Commission approved the first yield-bearing stablecoin security in February. The approval goes hand in hand with regulatory efforts to establish clear stablecoin laws in the United States. Magazine: Bitcoin payments are being undermined by centralized stablecoins