1. Supreme Court and Prosecutor General Include “Virtual Assets” Transactions as a Form of Money Laundering link link link

On August 19, the Supreme People’s Court and the Supreme People’s Procuratorate held a joint press conference to issue an interpretation on the application of law in handling criminal cases involving money laundering. The interpretation clarifies that using “virtual assets” for transactions or financial asset exchanges to transfer or convert criminal proceeds and their profits can be recognized as “concealing or disguising the origin and nature of criminal proceeds” under Article 191, Paragraph 1, Item 5 of the Criminal Law.

Attorney Shao Shiwei explained that the inclusion of virtual asset transactions as a method of money laundering means that if one receives illicit funds through the sale or purchase of virtual currency, the nature of those funds will determine the crime. If the funds come from the seven predicate crimes specified in the money laundering laws, it constitutes money laundering; if they come from other crimes, it constitutes concealment of criminal proceeds. Following the implementation of this interpretation, offenders will face stricter penalties under the law. The release of this interpretation indicates a more rigorous approach to combating money laundering in China and brings virtual currency transactions under legal regulation. This serves as a warning to both businesses and individuals to be more cautious in their virtual currency transactions to avoid inadvertently engaging in illegal activities. Shao noted that this will make it harder for businesses to operate and increase legal risks for individuals in such transactions.

Attorney Liu Yang highlighted that this is the first time the concept of “virtual assets” has appeared in a judicial interpretation, particularly in the context of money laundering. Previously, in the interpretation of new illegal fundraising cases, virtual currency transactions were recognized as a method of illegally absorbing public deposits.

Attorney Liu Honglin emphasized that virtual currency transactions do not inherently equate to money laundering, nor do they automatically constitute a criminal offense. The introduction of this judicial interpretation is in response to the frequent use of virtual currencies in money laundering crimes, providing clear guidelines for judicial proceedings. However, it does not imply that all virtual currency transactions in mainland China are considered money laundering. Furthermore, this interpretation does not alter China’s regulatory stance on virtual currency transactions. China has consistently prohibited virtual currency exchange operations within its borders and has banned such exchanges from offering services to mainland Chinese citizens. While individual holding and trading of virtual currency by Chinese citizens is not explicitly prohibited, the new interpretation does not change this policy.

A local court official revealed that this is currently a key focus area for the courts, with strict sentencing and no leniency. In some instances, money laundering cases can account for up to one-third of criminal cases in grassroots courts, with challenges in identifying laundering methods and determining criminal amounts. According to reports, the Supreme People’s Procuratorate prosecuted 2,971 individuals for money laundering in 2023, nearly 20 times the number in 2019. In the first half of 2024, 1,391 individuals were prosecuted, a 28.4% increase year-on-year, maintaining a strong stance against money laundering crimes.

2. Former U.S. President Donald Trump Promotes New Crypto Project on Social Media link

Former U.S. President Donald Trump took to social media to promote his new cryptocurrency project, stating, “For too long, ordinary Americans have been squeezed by big banks and financial elites. It’s time for us to unite and fight back together.” He included a link to a Telegram channel titled “The DeFiant Ones.” This follows the creation of a Telegram channel for the project by his son, Donald Trump Jr.

Meanwhile, according to Polymarket, Trump’s odds of winning the upcoming election have surged, reaching 53%, while Vice President Harris stands at 46%. Harris recently unveiled her economic policy, which includes providing more tax breaks for families and first-time homebuyers and increasing the corporate tax rate from 21% to 28%. Critics have denounced these plans as populist and market-distorting, though some believe they could garner support from families in swing states.

3. Harris Supports Policies to Foster the Growth of the Crypto Industry link

According to Bloomberg, Harris’s senior policy advisor, Brian Nelson, disclosed during a Bloomberg News roundtable at the Democratic National Convention that Harris is committed to supporting the growth of emerging technologies and the cryptocurrency industry. Nelson emphasized that Harris’s policy goals are focused on ensuring the continued development of these sectors.

Nate Geraci, President of The ETF Store, responded to Harris’s crypto-friendly remarks on Twitter, stating, “The current administration (with Harris as a part of it) has been staunchly against cryptocurrency. The current regulatory approach is quite stringent. The government needs to demonstrate a spirit of embracing innovation. Actions speak louder than words.”

4. 60% of the World’s Top 25 Hedge Funds Disclose Bitcoin ETF Holdings link

BitcoinMagazine reveals that 60% of the world’s top 25 hedge funds have disclosed their Bitcoin ETF holdings. Among them:

- Millennium Management holds 27,263 BTC, with an addition of 1,429 BTC this quarter.

- G.S. Asset Management (Goldman Sachs) holds 6,202 BTC, all of which were added this quarter.

- Schonfeld Strategic Advisors holds 6,734 BTC.

5. U.S. Considers Amending the Bank Secrecy Act to Strengthen Reporting Requirements for Crypto Transactions link

The U.S. Treasury Department and the Federal Reserve plan to redefine “money” under the Bank Secrecy Act to include cryptocurrencies and digital assets in new reporting requirements. The revised proposal aims to ensure that the rules apply to domestic and cross-border transactions involving convertible virtual currencies. Virtual currencies, such as cryptocurrencies, serve as mediums of exchange with values equivalent to or substituting for money, though they lack legal tender status.

Crypto Assets TAX Report — Professional,Effortless,Crypto-native. Sponsored by FinTax.

6. SEC Discussed the Security Status of SOL with ETF Issuers link

The U.S. Securities and Exchange Commission (SEC) has discussed concerns about Solana potentially being classified as a security. Subsequently, the SEC reached an agreement with the Chicago Board Options Exchange (Cboe) to avoid filing the related 19b-4 form to prevent initiating the approval process. VanEck’s S-1 registration statement for its Solana ETF remains active, while 21Shares’ application has been withdrawn. ETF Store President Nate Geraci indicates that, under the current Biden administration, approval of a Solana ETF is highly unlikely. Bloomberg analyst James Seyffart adds that the chance of launching a Solana ETF is slim unless there is a change in the U.S. government and SEC by 2025.

According to Cointelegraph, despite Cboe Global Markets removing VanEck’s 19b-4 filing for the Solana ETF from its website, VanEck remains committed to advancing its Solana ETF plans. VanEck’s Head of Digital Assets Research, Matthew Sigel, confirms that although the document is no longer visible, VanEck’s S-1 filing is still valid. Sigel asserts that VanEck views Solana (SOL) similarly to Bitcoin (BTC) and Ethereum (ETH) as a commodity rather than a security. This belief is guided by evolving legal perspectives, with courts and regulators increasingly recognizing that some cryptocurrencies may function as securities in the primary market but behave more like commodities in the secondary market.

7. Consensys Senior Legal Advisor: Binance and CZ Face Class Action Lawsuit in Seattle Federal Court link

Bill Hughes, Senior Legal Counsel at ConsenSys, referenced relevant documents indicating that last Friday, Binance and CEO Changpeng Zhao were sued in federal court in Seattle by a class of plaintiffs. This class action, led by prominent class action attorneys, accuses Binance of facilitating money laundering that harmed consumers. The lawsuit, anticipated following earlier government prosecutions and enforcement actions, seeks to profit from alleged wrongdoing. Essentially, the plaintiffs, representing U.S. consumers, claim that cryptocurrency lost in hacks and thefts was laundered through Binance, which was aware of and to some extent encouraged these activities as part of its profit-driven business model. The plaintiffs argue that Binance’s role in money laundering constitutes illegal extortion under the RICO Act, potentially leading to treble damages.

8. Tether Treasury Minted 33 Billion USDT Over the Past Year, Q2 Net Profit Reaches $5.2 Billion link

Over the past year, Tether Treasury has minted a total of $33 billion USDT, with $19 billion minted on the TRON network and $14 billion on the Ethereum mainnet.

Additionally, Tether Holdings Limited has released its Q2 2024 audit report, revealing a record net profit of $5.2 billion for the first half of 2024, with $1.3 billion in net operating profit for the quarter. The report also highlights Tether’s U.S. Treasury holdings reaching a record $97.6 billion, placing it as the 18th largest holder of U.S. debt globally. As of June 30, 2024, Tether Group’s consolidated net assets amounted to $11.9 billion. Management stated that as of June 30, 2024, Tether’s circulating token reserves stood at $118.4 billion, with liabilities at $113.1 billion.

9. China Successfully Extradites Major Economic Criminal Involved in Virtual Currency Ponzi Scheme from Thailand link

China has successfully extradited a major economic crime suspect, Mr.Zhang, from Thailand. This marks the first time since the China-Thailand Extradition Treaty came into effect in 1999 that China has extradited an economic crime suspect from Thailand. Zhang, starting in 2012, led the MBI Group and used the issuance of virtual digital currency to conduct a massive pyramid scheme involving over 100 billion RMB, affecting more than 10 million members. The Chongqing Public Security Bureau opened an investigation into him in 2020, and in 2021, Interpol issued a red notice for his arrest. Zhang was apprehended in Thailand in July 2022. Following law enforcement cooperation between China and Thailand, the Thai court ultimately ruled in favor of extradition, and Zhang was successfully extradited back to China on August 20, 2023.

10. Binance Founder CZ Expected to Be Released on September 29, Possibly Transferred to RRM Long Beach link

According to information from the U.S. Bureau of Prisons, Binance founder Changpeng Zhao (CZ) is expected to be released on September 29. This follows his recent transfer from a minimum-security prison in Southern California to RRM Long Beach, a residential reentry program designed to help inmates transition back into society before their full release. Although CZ remains under U.S. government supervision and does not have complete freedom of movement, he is expected to regain his full freedom by the end of September and may return to Dubai to reunite with his wife and two children.

As part of a settlement, CZ has been barred from operating or managing Binance for three years. During this period, he may focus on educational initiatives and passive investments.

Fundraising

• SatLayer, a Bitcoin re-staking platform, announced the completion of $8 million in Pre-Seed funding. link

• Base ecosystem DeFi protocol BSX has secured $6.2 million in funding. link

• PIP Labs, the developer of Story Protocol, announced the completion of $80 million in Series B funding. link

• Ethereum MEV solution Sorella Labs has completed $7.5 million in Seed funding, with Paradigm leading the round. link

• Cryptographic hardware startup Fabric Cryptography has raised $33 million in Series A funding. link

• Stablecoin infrastructure company WSPN announced the completion of $30 million in Seed funding. link

• Cryptocurrency payment network Skyfire announced $8.5 million in Seed funding. link

• YeagerAI completed $7.5 million in Seed funding, led by North Island Ventures. link

• Web3 social gaming ecosystem Soulbound announced $4 million in funding. link

• Bitcoin ecosystem yield network Corn announced $6.7 million in funding. link

• The Holonym Foundation announced $5.5 million in Seed funding. link

• Web3 infrastructure layer KIP Protocol announced $5 million in private funding. link

• Cryptocurrency lending platform Arch announced $5 million in Seed funding. link

• Web3 oracle service provider Stork Network announced $4 million in Seed funding. link

• Fanton Fantasy Football has secured $1 million in Seed funding. link

• Bitcoin Lightning Network payment company TMRW announced $1.3 million in Pre-Seed funding. link

• On-chain private credit fund Credbull has completed $5.2 million in funding. link

• zkMe announced $4 million in Seed investment, led by Multicoin Capital. link

Learn more, check out crypto-fundraising.info.

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