Latest news with #Chainalysis
Yahoo
2 days ago
- Business
- Yahoo
Iran enforces emergency curfew after devastating heist by pro-Israel hackers
Iran enforces emergency curfew after devastating heist by pro-Israel hackers originally appeared on TheStreet. The Central Bank of Iran has reportedly asked all local crypto exchanges to operate only during limited trading hours between 10 AM and 8 PM, the on-chain analytics platform Chainalysis reported on June 18, citing reports. The Iranian authorities have taken the urgent step following an Israel-linked hacking group called Gonjeshke Darande conducting a cyber heist on Nobitex, the largest crypto exchange in Iran, that led to a loss of more than $90 million. Chainalysis' head of national security intelligence, Andrew Fierman, told TheStreet Roundtable that it is possible that operational restrictions accomplish multiple goals for the Iranian regime. He explained: Firstly, operational security is likely top of mind for the regime and domestic Iranian exchanges at this time and incidents are more easy to triage if they're not happening in the middle of the night. Secondly, while the people of Iran leverage cryptocurrency exchanges to facilitate cross-border transactions, the Iranian regime may want to assert more control over their citizens' transactions. Fierman added this isn't the first time that Iran's central bank had earlier tried restricting crypto exchange operations. But then, the reasons behind the decisions seemed altogether different — combating the devaluation of the Iranian Rial, the local currency. As reported earlier, Iran has relied on crypto for years to circumvent global economic sanctions. The country has also emerged as a major hub of crypto mining operations due to its relatively cheaper power rates. Finance remains among the most prominent targets during the Israel-Iran war, with neither physical nor virtual financial infrastructure being spared. Iran enforces emergency curfew after devastating heist by pro-Israel hackers first appeared on TheStreet on Jun 19, 2025 This story was originally reported by TheStreet on Jun 19, 2025, where it first appeared.
Forbes
4 days ago
- Business
- Forbes
The Crypto Yield Hunger Games Coming This Stablecoin Summer
Two people help themselves to slices from a pie decorated with a dollar sign, 1979. (Photo by ... More) Stablecoins are having a moment. This spring, a flurry of stablecoin activity has taken global financial markets by storm and captured mainstream attention. Investors rushed into Circle's 20-25x oversubscribed initial public offering on the New York Stock Exchange in May, immediately tripling the share price of the second largest stablecoin issuer. With a market capitalization of nearly $250 billion, stablecoins are on the verge of breaking out of the niche cryptocurrency markets and into the mainstream. In the right interest rate environment, stablecoins are yield-generating machines. On the surface, they are almost the perfect financial product. A depositor pays a stablecoin issuer cash, the issuer places deposits in yield-bearing, high quality assets, like U.S. Treasury bills, and returns the depositor a tokenized version of the currency. While holders are typically not entitled to a share of the interest, stablecoins unlock inexpensive, global and around-the-clock payments and remittances. For those in the developing world, dollar stablecoins often serve as a better store of value than the hyper-inflationary local currency. According to the Chainalysis 2024 Geography of Crypto Report, the top 10 nations with rapidly increasing crypto usage (including stablecoins) includes India, Nigeria, Indonesia, Philippines, Pakistan and Brazil. Nations with high inflation, like Venezuela, Argentina, and Turkey, also rank in the top 20. In the crypto industry, skilled practitioners—and now AI agents—deploy stablecoins to optimize yield across an array of decentralized finance strategies. It feels like a modern day gold rush. Tether was the first stablecoin to really strike gold. In 2024, it reaped $13 billion in profit with only a handful of employees. With profitability like that, it's no surprise that companies are about to pour into the space. Big banks, including J.P. Morgan, Citi and Well Fargo, are talking about teaming up to launch a joint stablecoin. Walmart and Amazon are considering stablecoins of their own. Even Meta, which folded its Libra stablecoin amidst a tirade of regulatory backlash, has considered re-entering the space. In fact, U.S. Treasury Secretary Scott Bessent testified that he expects stablecoins to drive $2 trillion in U.S. treasury bill demand in the near future. Regulatory clarity makes institutional adoption possible. This week, the Senate is expected to vote on the GENIUS Act, paving the way for stablecoin legislation. The bill requires reserves to be held in high-quality, liquid assets like Treasuries, imposes transparency requirements, and clarifies which institutions can issue dollar-backed digital tokens. However, it forbids any payment of interest to stablecoin holders. Traditional institutions, including the banks, have been waiting for this moment. At a Morgan Stanley conference in New York last week, Brian Moynihan, CEO of Bank of America said, 'We're working with the industry, working individually.' For many issuers, however, there will be a downside to regulatory clarity. 'But the problem before was it wasn't clear we were allowed to do it under the banking regulations, ' Moynihan said, driving that point home. One of the great lessons learned from the global financial crisis is that regulation forces consolidation. Derivative markets serve as a good example. When the Dodd Frank Act required the clearing of the $700 trillion derivatives market, many believed that there would be a proliferation of clearing members. Instead, the opposite happened, and clearing members declined from 177 in 2004 to 64 in 2024. With regulation, costs increased and intense competition compressed fees. Similar dynamics are likely to play out in the stablecoin industry. The truth is that stablecoins are highly sensitive to short-term interest rates. Interest income accounts for 99% of Circle's revenue, and they project that a 1% drop in interest rates could wipe out $441 million. While markets suggest that there is little chance of an interest rate cut this month, the future is less certain. And, while issuers do not pay individual holders interest, that does not mean that they keep it. According to its financial statements, Circle paid over $1 billion in distribution and transaction costs—over 50% of its revenue—for the privilege of reaching Coinbase's 89 million registered users. As the next wave of players enter the space, many arrive with existing distribution. Citi alone boasts 200 million accounts. Companies with large, coveted distribution networks will charge handsomely for that access. Or, they become stablecoin issuers themselves. Just like gold rushes of the past, 'picks and shovels' stand to benefit. Infrastructure that unlocks distribution and scales issuance will be in high demand. Stablecoin exchanges and platforms that enable 'vampire' yield attacks, where competitor stablecoins are accepted, redeemed and re-issued by a new issuer will be in vogue. Issuers will ask, 'Why should they have the interest when it could be mine?' Decentralized finance protocols will benefit as well. Without yield, U.S. dollar stablecoins, which account for 99% of issuance, depreciate due to inflation. So, holders will continue to seek yield elsewhere. Tokenized money markets, which pay interest and are regulated as securities, could also see explosive growth. Stablecoin summer has finally arrived. As stablecoin panacea turns into the yield version of the 'Hunger Games,' it will be a period of intense competition and quest for scale. So, to the issuers, may the odds forever be in your favor.
Reuters
4 days ago
- Business
- Reuters
The return of stolen crypto can be a taxing event
June 17, 2025 - Digital assets have been subject to some of the largest thefts in history. In fact, the largest crypto theft — in connection with the February 2025 $1.5 billion Bybit hack — dwarfs the Guinness Book of World Records' entry for the largest bank robbery of $282 million. See "Crypto's biggest hacks and heists after $1.5 billion theft from Bybit," Reuters, Feb. 24, 2025. Sometimes, however, all is not lost and at least some portion may be recovered and available for restitution or return to victims. While any recovery may be cause for celebration, unforeseen or unintended tax consequences can put a damper on the festivities. The tax due on the recovery of stolen crypto can depend upon several factors, including any deductions taken in connection with the initial theft, the type of property returned and intervening changes to its value, and other taxpayer circumstances. Yesterday's hacks; tomorrow's recoveries (and taxes) In the past five years, an estimated $189 billion in total cryptocurrency value was reportedly transferred to illicit addresses, and there are undoubtedly more thefts to come. See "2025 Crypto Crime Trends: Illicit Volumes Portend Record Year as On-Chain Crime Becomes Increasingly Diverse and Professionalized," Jan. 15, 2025. Over 300 hacking incidents were reported in 2024 alone. See id., "$2.2 Billion Stolen from Crypto Platforms in 2024, but Hacked Volumes Stagnate Toward Year-End as DPRK Slows Activity Post-July," Dec. 19, 2024. And during the first quarter of 2025, over $1.63 billion in crypto was lost to hacks. See "Crypto crooks targeted $244M in May, hack losses down 40% — PeckShield," CoinTelegraph, June 1, 2025. When cryptocurrency is stolen, recovery rates vary significantly on a case-by-case basis, but the silver lining is an industry average recovery rate of approximately 70%. See "Most Legitimate Crypto Recovery Service in 2025," TheChain, June 6, 2025. Crypto investors may have several paths to recover their stolen crypto. For example, where the government has recovered stolen crypto, investors have been provided the opportunity to seek restitution as a victim under the Crime Victims' Rights Act or recover their stolen assets through proceedings ancillary to the criminal forfeiture proceedings. Whether an investor receives the actual assets that were taken, substitute property, or their cash liquidation value (or anything at all), may depend upon such factors as whether the assets were laundered, ownership of the assets, and the crimes for which the hackers are charged. Although such factors are mostly outside the control of the investor, the form of distribution has a significant impact on the taxes owed. As discussed below, understanding the potential form of recovery should inform an investor's tax position at the time of the loss (and whether they should take a deduction at all in the year that the assets are stolen). You may or may not want to claim a crypto theft tax loss In most cases, when investment property such as cryptocurrency is stolen, the owner of that cryptocurrency can claim an ordinary (as opposed to capital) deduction for the loss. This deduction is equal to the taxpayer's adjusted basis in the property. For cryptocurrency, the adjusted basis is generally the amount paid for it, or if the cryptocurrency was directly mined or won by the taxpayer, the value included in the taxpayer's income tax return when the taxpayer received the cryptocurrency. For example, say an individual bought five Bitcoin in 2020 for $10,000 each, the taxpayer would have a total basis in those five Bitcoin of $50,000. If the Bitcoin were stolen in 2022, when the value of a single Bitcoin equaled $40,000, the taxpayer would only be entitled to deduct the basis in the stolen Bitcoin, or $50,000 (even though the total value is $200,000). This $50,000 deduction would be available to offset income taxes the taxpayer would otherwise owe. However, the value of the theft deduction can potentially be very small in comparison to the potential value the investor may eventually recover, which is especially the case for early-stage crypto investors. Take the previous example: assume the taxpayer claimed a $50,000 taxable deduction in 2022. If the Bitcoin were returned to the taxpayer in 2025 (when Bitcoin is valued at around $100,000), the taxpayer would owe taxes on $500,000 of ordinary income (regardless of whether the taxpayer sells the Bitcoin in 2025). This is because once a loss for theft is claimed on property for tax purposes, any subsequent recovery of that property is treated as a taxable gain. And, the amount of such gain is added to the basis of that property to offset future gains upon disposition. On the other hand, if the taxpayer did not claim a loss in 2022, he or she could have potentially avoided any tax in 2025 when the cryptocurrency was returned. The form of recovery matters (even if a deduction was not taken at the time of theft) If cryptocurrency is returned to its rightful owner in its original form, and the owner didn't previously take a theft deduction for that cryptocurrency, then the return is a non-taxable event. If, however, the cryptocurrency is returned to the owner in the form of its cash value (and the owner did not take a previous theft deduction), this recovery still may result in taxable income to the owner. Using our previous example, assume the investor bought five Bitcoin in 2020 at a price of $10,000 each, the Bitcoin were stolen in 2022, and the government sends the taxpayer $500,000 in 2025 as recovery for the five stolen Bitcoin. Here, the investor would have taxable income on the cash received ($500,000) minus the taxpayer's basis in the cryptocurrency ($50,000), meaning the investor would have to pay taxes on $450,000 of capital gains in 2025. This sudden tax bill from recovered cash can be disadvantageous for multiple reasons. First, most obviously, the tax could easily eat away a substantial portion of the cash recovery received. Second, even if the investor wanted to realize cash from their cryptocurrency, doing so all at once may result in a higher tax bill than if the investor sold the cryptocurrency over a matter of years. In other words, the investor could have potentially reduced his or her total tax bill by spreading out their taxable income from recovered cryptocurrency by selling it in different years. Third, individuals generally pay state income taxes on realized gains from cryptocurrency based on their state of residence when the gain is realized. If an individual lives in a high-tax state at the time they recover previously stolen cryptocurrency, the taxpayer may have an opportunity to move to a lower-tax state before ultimately selling the cryptocurrency and realizing gain from it. If the recovery is in the form of cash, however, the owner will recognize all the gain in their current state of residence. Conclusion Crypto thefts are bound to increase in the future with the expansion of Decentralized Finance (DeFi) and the increasing sophistication and technology of hackers, especially if Bitcoin and other digital assets continue their growth trajectory. Before taking any tax position at the time of loss, investors should consider their potential right to participate in distributions if assets are recovered in the future and the tax implications under possible scenarios. Though much of the process for recovery and participation in recovered assets is beyond investors' control, tax liability resulting from the recovery of assets may be anticipated and possibly deferred or reduced with advanced planning and analysis. Joseph Cioffi is a regular contributing columnist on consumer and commercial financing for Reuters Legal News and Westlaw Today.
Business Upturn
5 days ago
- Business
- Business Upturn
Victus Global Launches Real-Time FX Tools Empowering Frontier Markets
Road Town, British Virgin Islands, June 16, 2025 (GLOBE NEWSWIRE) — In many frontier and emerging markets, local currencies are not a source of stability—they are a source of fear. From Argentina to Nigeria, from Lebanon to Zimbabwe, the value of national currencies has been eroded by inflation, capital controls, and geopolitical instability. As citizens struggle to protect their savings and businesses fight to settle cross-border transactions, one tool is quietly gaining ground: stablecoins. Amid this growing shift, Victus Global has announced the expansion of its FX and stablecoin settlement platform, VictusMarkets, offering real-time hedging tools for businesses in high-volatility markets. This development aligns with the company's mission to bring greater transparency and efficiency to currency exchange in underserved economies. A New Kind of Dollarization Stablecoins—digital currencies pegged to traditional fiat, often the U.S. dollar—are being increasingly adopted as a grassroots form of economic resilience. Unlike conventional dollarization, which relies on physical USD notes or bank accounts, stablecoins allow anyone with a smartphone and internet access to store and transmit dollar-equivalent value with speed and transparency. Platforms such as USDT (Tether), USDC (Circle), and BUSD (now winding down) have seen massive adoption spikes in high-volatility markets. According to Chainalysis, stablecoin transfers in Sub-Saharan Africa reached over $50 billion in 2023, mostly through informal peer-to-peer networks. In Argentina, where annual inflation topped 140% in 2023, local exchanges such as Lemon and Buenbit saw record volumes of USDC and USDT purchases. In Turkey, stablecoins are now one of the top forms of crypto volume, often used to hedge against lira depreciation. Use Cases: From Payroll to Procurement What began as a store of value has evolved into full-fledged payment rails. In Nigeria and Kenya, freelancers and tech workers are increasingly being paid in USDC or USDT through platforms like Bitwage or local crypto wallets like Busha. Cross-border traders in Eastern Europe and the Middle East use stablecoins to pay suppliers, avoiding the complexity of bank wires and exchange rate losses. Case Study: Lebanon With banks largely insolvent and capital controls still in place, Lebanese citizens have turned to stablecoins as a life raft. Local crypto groups report that USDT and USDC are now used for everything from rent to school fees. 'When the banks froze our accounts, stablecoins became our dollar bank,' said Nour, a Beirut-based graphic designer. 'It's not perfect, but it's better than holding lira.' Institutional Recognition The use of stablecoins in volatile economies is no longer an underground phenomenon. In 2023, the Central Bank of Nigeria issued guidelines for licensed fintechs engaging in stablecoin operations. The IMF has also acknowledged that digital dollars are 'outcompeting' local currencies in some fragile states and has urged governments to consider regulation instead of resistance. Companies like Victus Global are now building FX platforms tailored to this demand. Their product, VictusMarkets, offers a hedging solution that enables local businesses to swap unstable fiat into USDT or USDC, compare quotes from liquidity providers, and settle transactions efficiently across borders. Their tools allow local businesses in resource-rich countries like Kazakhstan or the DRC to hedge exposure to volatile currencies and settle with offshore suppliers in stablecoins. The Risks: Dependence, Regulation, and Systemic Fragility Still, reliance on stablecoins raises serious questions: Monetary sovereignty : Does widespread use of USDC/USDT threaten central bank control? : Does widespread use of USDC/USDT threaten central bank control? Counterparty risk : What happens if the issuer of a stablecoin collapses or is sanctioned? : What happens if the issuer of a stablecoin collapses or is sanctioned? Regulatory arbitrage: Are stablecoins enabling shadow banking in fragile economies? These risks are not hypothetical. In 2022, the collapse of algorithmic stablecoin UST caused over $40 billion in losses. In contrast, fully reserved stablecoins like USDC promote transparency and compliance—but require robust infrastructure and legal clarity. The Road Ahead For millions living under currency chaos, stablecoins are not speculative instruments—they are lifelines. Their rise in frontier markets speaks to a failure of traditional monetary systems and a demand for decentralized alternatives. While regulation will shape the future, the underlying truth remains: in the absence of trust in national money, people will find their own. And in 2025, increasingly, they are finding it on the blockchain. As policymakers and platforms alike wrestle with how to govern this new form of finance, one thing is clear: stablecoins have moved from niche to necessary. Website: Twitter X: Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Forbes
5 days ago
- Business
- Forbes
The Crypto Yield Hunger Games Ahead This Stablecoin Summer
Two people help themselves to slices from a pie decorated with a dollar sign, 1979. (Photo by ... More) Stablecoins are having a moment. This spring, a flurry of stablecoin activity has taken global financial markets by storm and captured mainstream attention. Investors rushed into Circle's 20-25x oversubscribed initial public offering on the New York Stock Exchange in May, immediately tripling the share price of the second largest stablecoin issuer. With a market capitalization of nearly $250 billion, stablecoins are on the verge of breaking out of the niche cryptocurrency markets and into the mainstream. In the right interest rate environment, stablecoins are yield-generating machines. On the surface, they are almost the perfect financial product. A depositor pays a stablecoin issuer cash, the issuer places deposits in yield-bearing, high quality assets, like U.S. Treasury bills, and returns the depositor a tokenized version of the currency. While holders are typically not entitled to a share of the interest, stablecoins unlock inexpensive, global and around-the-clock payments and remittances. For those in the developing world, dollar stablecoins often serve as a better store of value than the hyper-inflationary local currency. According to the Chainalysis 2024 Geography of Crypto Report, the top 10 nations with rapidly increasing crypto usage (including stablecoins) includes India, Nigeria, Indonesia, Philippines, Pakistan and Brazil. Nations with high inflation, like Venezuela, Argentina, and Turkey, also rank in the top 20. In the crypto industry, skilled practitioners—and now AI agents—deploy stablecoins to optimize yield across an array of decentralized finance strategies. It feels like a modern day gold rush. Tether was the first stablecoin to really strike gold. In 2024, it reaped $13 billion in profit with only a handful of employees. With profitability like that, it's no surprise that companies are about to pour into the space. Big banks, including J.P. Morgan, Citi and Well Fargo, are talking about teaming up to launch a joint stablecoin. Walmart and Amazon are considering stablecoins of their own. Even Meta, which folded its Libra stablecoin amidst a tirade of regulatory backlash, has considered re-entering the space. In fact, U.S. Treasury Secretary Scott Bessent testified that he expects stablecoins to drive $2 trillion in U.S. treasury bill demand in the near future. Regulatory clarity makes institutional adoption possible. This week, the Senate is expected to vote on the GENIUS Act, paving the way for stablecoin legislation. The bill requires reserves to be held in high-quality, liquid assets like Treasuries, imposes transparency requirements, and clarifies which institutions can issue dollar-backed digital tokens. However, it forbids any payment of interest to stablecoin holders. Traditional institutions, including the banks, have been waiting for this moment. At a Morgan Stanley conference in New York last week, Brian Moynihan, CEO of Bank of America said, 'We're working with the industry, working individually.' For many issuers, however, there will be a downside to regulatory clarity. 'But the problem before was it wasn't clear we were allowed to do it under the banking regulations, ' Moynihan said, driving that point home. One of the great lessons learned from the global financial crisis is that regulation forces consolidation. Derivative markets serve as a good example. When the Dodd Frank Act required the clearing of the $700 trillion derivatives market, many believed that there would be a proliferation of clearing members. Instead, the opposite happened, and clearing members declined from 177 in 2004 to 64 in 2024. With regulation, costs increased and intense competition compressed fees. Similar dynamics are likely to play out in the stablecoin industry. The truth is that stablecoins are highly sensitive to short-term interest rates. Interest income accounts for 99% of Circle's revenue, and they project that a 1% drop in interest rates could wipe out $441 million. While markets suggest that there is little chance of an interest rate cut this month, the future is less certain. And, while issuers do not pay individual holders interest, that does not mean that they keep it. According to its financial statements, Circle paid over $1 billion in distribution and transaction costs—over 50% of its revenue—for the privilege of reaching Coinbase's 89 million registered users. As the next wave of players enter the space, many arrive with existing distribution. Citi alone boasts 200 million accounts. Companies with large, coveted distribution networks will charge handsomely for that access. Or, they become stablecoin issuers themselves. Just like gold rushes of the past, 'picks and shovels' stand to benefit. Infrastructure that unlocks distribution and scales issuance will be in high demand. Stablecoin exchanges and platforms that enable 'vampire' yield attacks, where competitor stablecoins are accepted, redeemed and re-issued by a new issuer will be in vogue. Issuers will ask, 'Why should they have the interest when it could be mine?' Decentralized finance protocols will benefit as well. Without yield, U.S. dollar stablecoins, which account for 99% of issuance, depreciate due to inflation. So, holders will continue to seek yield elsewhere. Tokenized money markets, which pay interest and are regulated as securities, could also see explosive growth. Stablecoin summer has finally arrived. As stablecoin panacea turns into the yield version of the 'Hunger Games,' it will be a period of intense competition and quest for scale. So, to the issuers, may the odds forever be in your favor.
