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Crypto news summary: Tether, Thodex and Mt. Gox

Tether attacked by Wall Street Journal, Michael Saylor attacked by the government, and more news is summarized in this article from the crazy world of crypto.

Thodex founder arrested for $100m fraud

Thodex, formerly a well-known cryptocurrency exchange in Turkey, was founded by Faruk Fatih Ozer. Users of the platform lost millions of dollars in deposits, but they are getting justice as the founder of the company was arrested and given a 40,564-year prison sentence by Turkish prosecutors. What a day for Faruk Fatih Ozer.

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Unfortunately, or fortunately, he will never leave his prison cell, even if he behaved in the nicest way imaginable and received a lower prison sentence. Faruk was arrested for stealing more than $100 million and leaving Turkey behind in April 2021. After months of searching, they found him in the city of Vlora. 

Michael Saylor sued over income tax evasion

Even more spotlight coming on Michael Saylor as he resigned as the CEO of MicroStrategy in early August. In Washington, DC, Saylor is now being sued for tax fraud amid claims he has lived there for years without paying income tax. Karl A. Racine, the attorney general for the District of Columbia, said that MicroStrategy is being sued for conspiring to assist him in avoiding paying. 

These taxes are reportedly in hundreds of millions of dollars he is legally obligated to pay. Saylor could be in big trouble and face significant penalties if he loses the lawsuit because courts can impose “treble damages,” three times the amount of the taxes evaded. MicroStrategy Inc. stock fell by almost 10% in a week as a result.

137,000 BTC released from Mt. Gox

After stealing 850,000 BTC, the once-largest Bitcoin exchange in the world was shut down in 2014. 137,000 BTC were recovered, and crypto investors fear that these former customers of Mt. Gox may decide to dump all of them at once on the market. But the victims will either get BTC all at once, in small amounts, or wait until the civil rehabilitation is over and new money is distributed.

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There would be no need to fear even if everyone sold their BTC at once. There is enough liquidity because these 137,000 BTC are currently priced at $2.8 billion, and BTC has a market cap of $390 billion, or less than 1% of the total market cap. In addition, the typical daily trading volume is at least $25 billion, creating a lot of liquidity. 

Vitalik Buterin is publishing a book

A book written by Vitalik Buterin called Proof of Stake will be published in September. The book discusses the theory behind blockchains as well as how his network was constructed. According to the publisher, the book is being released under a Creative Commons license, and sales proceeds will go to open-source public goods through Gitcoin grants. The book will be available in print, but Buterin’s followers can also purchase signed digital copies as NFTs.

Crypto exchange user gets $10.5m as error

By mistake, Crypto.com paid an Australian woman entitled to a $100 refund of $10.5 million. Thevamanogari Manivel had already gone spending big time when the exchange finally realized their enormous error after seven months. Reportedly, a Crypto.com employee inadvertently included a bank account number in the payments field. Surprisingly, the error wasn’t discovered until a routine audit. 

Since December 2021, there have been legal proceedings, and now the judge has determined that Manivel must repay the full amount plus interest. The remainder of the money is still being sought after, and a court hearing is scheduled for October. This is the crazy world of crypto.

WSJ claims Tether is almost insolvent – Tether fights back

After a Wall Street Journal article indicated that the stablecoin was actually at risk of going bankrupt technically, Tether reacted angrily. According to data from the issuer’s website, the stablecoin issuer has declared assets and liabilities totaling approximately $67.7 billion. WSJ points out that even a 0.3% decline in these assets’ value would prevent the company from having adequate capital to back all of the USDT that is now in circulation. 

All of this occurs as the cryptocurrency markets wait for Tether to finish an exhaustive audit. But according to Tether, this is just “a series of unsubstantiated conclusions. In a time where false information is being weaponized to cause harm across the globe, it is our responsibility to clarify the facts for readers.” Tether also states:

“Tether is committed to maintaining its role as the leading stablecoin in the market and we will continue to demonstrate our transparency, regardless of naysayers.” 

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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