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Last week, the crypto market experienced one of the biggest shocks in recent years. The cryptocurrency Luna almost completely devalued. The market lost $200 billion in just 24 hours. This was largely due to the collapse of the staple currency, Terra UST, which is pegged to the dollar. It has a paired currency, Luna, which was used to create new tOkens and support Stablecoin at $1. High volatility “overloaded” Stablecoin, causing it to lose its peg to the dollar. The cryptocurrency Luna collapsed following and is actually worth $0. The collapse was also helped by the fact that Terra’s blockchain stopped processing transactions twice – in less than 24 hours. The situation hit market confidence hard. Overall, most cryptocurrencies fell by more than 50% in the moment.
U.S. law enforcement officials have arrested the head of a cryptocurrency brokerage company, Emini FH. The FBI charged Eddie Alexander, 50, with fraud to the tune of $59 million. The head of the organization faces up to 30 years in prison.
According to the Manhattan court – from September 21 to May 22 – Eddie Alexander’s project misled several hundred people. The brokerage company’s concept of operations, experts said, was just another pyramid scheme. The deputy head of the FBI stated that: the criminal group “guaranteed” weekly profits of 5% of passively invested amounts – ranging from $99,000 to $250,000.
The Middle East is also struggling with crypto-frauders. Iran has closed almost seven thousand illegal mining farms. Mining of digital assets was legalized in the country back in 2019 – the Ministry of Industry began issuing licenses for mining virtual currencies. Registered businesses must pay high export tariffs for electricity, so many firms prefer to operate underground. Since 2020, Iranian authorities have discovered and shut down more than six thousand illegal farms. Iran is currently fined for shadow mining of digital assets, but the government plans to toughen liability as soon as this year – violators could face criminal penalties.
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