Crypto News

How much Bitcoin can Berkshire Hathaway buy?

Key takeaways:Berkshire holds $347B in cash, enough to buy ~18% of Bitcoin’s supply.Greg Abel has not signaled a shift from Warren Buffett’s anti-Bitcoin stance.Berkshire already has indirect crypto exposure via Nu Holdings, Jefferies.Warren Buffett announced at Berkshire Hathaway's annual shareholder meeting on May 3 that he will step down as CEO by the end of 2025, with Greg Abel taking over. This transition raises speculation about Berkshire’s financial capacity to purchase Bitcoin (BTC) under the new leadership.Source: Discover CryptoBerkshire can easily surpass Strategy’s BTC stash Berkshire ended Q4 2024 with a record $347 billion in cash and US Treasury bills, representing about 32% of its $1.1 trillion market capitalization. The company could acquire approximately 3.52 million BTC if it purchases the cryptocurrency at May’s approximate price of $95,000. This equates to about 17.88% of Bitcoin’s circulating supply of 19.69 million coins.If the company tapped only its estimated $295.98 billion in US Treasury, it could buy around 3.12 million BTC, or 15.85% of the circulating supply, positioning it as a dominant player in the crypto market.Berkshire Hathaway is 20th Century Bitcoin.— Michael Saylor (@saylor) May 3, 2025Such a move would easily eclipse Nasdaq-listed Strategy Inc. (formerly MicroStrategy), the world’s largest corporate Bitcoin holder, which owns 553,555 BTC worth approximately $52.2 billion as of May 6.In other words, Berkshire can theoretically match Strategy’s stash with roughly one-sixth of its cash pile if it converts it to Bitcoin. Related: Strategy, Semler bag 2K Bitcoin as price edged toward $100K last weekStrategy Inc. Bitcoin holdings over time. Source: BitcoinTeasuries.netBernstein analysts forecast roughly $330 billion in corporate treasury-driven inflows into Bitcoin by 2029, with $205 billion expected from listed companies between 2025 and 2029. Much of this, analysts say, will come from smaller, slow-growing companies trying to copy Strategy Inc.’s Bitcoin strategy. They see it as one of the few ways to boost their value when other growth options are scarce.Source: X/Matthew Sigel, Head of Digital Asset Research at VanEck USBernstein’s bull case anticipates an additional $124 billion of Bitcoin purchases from Strategy alone, backed by the company’s recently upsized capital-raising plans, which aim to secure $84 billion by 2027, nearly double its previous target.Is Greg Abel pro-crypto? Whether Berkshire would buy Bitcoin under Abel’s leadership is speculative. The new Berkshire Hathaway leader has not publicly indicated a shift from Buffett’s value-investing philosophy, prioritizing assets with tangible cash flows over speculative ones like Bitcoin, which Buffett once termed “rat poison squared.”BTC’s price has climbed by nearly 900% since Buffett’s criticism in May 2018.BTC/USD two-week price chart. Source: TradingViewHowever, Berkshire, despite its anti-crypto stance, has indirect exposure in the sector through investments in crypto-friendly companies like Nu Holdings and Jefferies Financial Group, which holds shares in BlackRock’s iShares Bitcoin Trust (IBIT).The strategy is similar to how Berkshire approached gold, which Buffett repeatedly ridiculed for lacking productivity. However, Berkshire surprised markets by buying Barrick Gold shares (a gold mining company) in 2020, though it later sold that position.Under Abel, Berkshire may not dive straight into Bitcoin, but its cautious, indirect approach could expand as markets evolve. Whether that leads to full adoption or careful toe-dipping remains to be seen.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Published Date: 2025-05-06 11:15:34
Creator: Cointelegraph by Yashu Gola
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Is the Paws Telegram mini app legit? What you need to know

What is the Paws Telegram Mini App? Paws is a Telegram-based Mini App created by the same team behind other projects, such as Notcoin and Dogs. If you’ve been cruising around Telegram lately, chances are you’ve stumbled upon Paws, the viral crypto Mini App that’s got everyone tapping, clicking and inviting their friends like it’s 2010 FarmVille all over again. Originally launched in October 2024 on The Open Network (TON) blockchain, Paws exploded in popularity with its ultra-simple tap-to-earn concept. Think of it as a gamified rewards engine embedded directly in Telegram, where users rack up points by completing tasks, referring others and interacting with mini-game elements. Within just eight days of going live, Paws pulled in over 20 million users, and within a few months, that figure soared past 80 million.But the real twist? Paws, in March 2025, migrated from TON to Solana, a move that brought more scalability, lower fees and deeper integration with a broader decentralized finance (DeFi) ecosystem. Alongside this shift came the launch of the PAWS token — used for governance, staking, in-game purchases and more — positioning Paws as more than just a viral hit. The app’s core philosophy is simple: You create value every time you engage online, so why not earn for it? With no extra downloads needed, Paws is frictionless. You just activate the bot on Telegram (@PAWSOG_bot), and you’re in. From there, it’s all about interacting: tap items, read posts, join groups, complete quizzes, and get rewarded with points that convert into real tokens.So, is it legit? Before answering that, we’ll unpack how it actually works. How does the Paws Telegram Mini App actually work? PAWS tracks and monitors users' activity in Telegram and allows them to claim rewards for their engagement.The core mechanics involves monitoring users' activities, such as message frequency, participation in groups and interactions with other mini apps. Within the app, users can find a number of tasks to complete or allow it to perform checks on their engagements. This varies from following social channels to reading articles. For example, you can earn 250 $PAWS for reading Cointelegraph articles like this:The rewards are distributed on predetermined criteria and actions users take. In the long run, your earned points and referral contributions will determine your airdrop allocation when the official $PAWS crypto token launches. There are currently no specific dates for the airdrop or token exchange listing. With the project gaining such huge momentum, it is expected to finish its launch campaign in the coming months. Why Paws migrated to Solana and why it matters At first, Paws ran on TON, but in a move that surprised some and excited others, Paws announced a major shift to Solana in early 2025.In early 2025, Telegram introduced a policy mandating that all Mini Apps and third-party crypto wallets on its platform exclusively operate on TON. This move forced projects like Paws to choose between remaining confined to TON or migrating to a different blockchain.Paws opted to migrate to Solana, a decision that has had significant implications:​User base migration: Over 80 million Paws users transitioned to Solana, leading to more than 9 million downloads of the Phantom crypto wallet and the creation of over 1 million new Solana addresses. NFT integration: PAWS introduced non-fungible token (NFT) vouchers on the Solana-based marketplace Magic Eden, resulting in over 100,000 transactions within two weeks.Ecosystem expansion: The migration has allowed Paws to evolve from a viral Telegram application into a full-fledged Web3 brand, with plans to integrate DeFi features, gaming partnerships and social engagement tools.This strategic move not only circumvented Telegram’s restrictive policies but also positioned Paws to leverage Solana’s scalability and active DeFi ecosystem, paving the way for broader adoption and innovation.Did you know? The migration to Solana led to over 9 million new downloads of Phantom Wallet, with more than 1 million fresh Solana addresses created by Paws users. That’s one of the biggest onboarding waves in Solana’s history. The PAWS airdrop: What you need to know No viral Web3 game is complete without an airdrop, and Paws is no exception.Users who engage with the app, tapping, referring and completing tasks earn points, which are later converted into PAWS tokens. These tokens are distributed via an airdrop, and the team has already completed early reward rounds with plans for future drops as the ecosystem expands.The PAWS token officially launched on March 18, 2025. Here’s a breakdown of the key events that took place:​March 11-15: Withdrawals opened to exchanges.March 17: Token deposits became available on exchanges.March 18: Withdrawals to Phantom Wallet and the official PAWS listing commenced.​The airdrop distribution was as follows:​62.5% allocated to Paws app users.7.5% reserved for established Solana communities.The remaining percentage is designated for ecosystem growth, partnerships and liquidity.Despite the successful migration and platform enhancements, the PAWS token launch faced some challenges:​Price volatility: The token experienced a significant drop in value shortly after launch.Airdrop confusion: Many users were unsure about eligibility criteria, leading to dissatisfaction.Communication gaps: Delays and a lack of clear communication regarding the token generation event (TGE) affected community trust on X.As of April 2025, the PAWS token is listed on a few exchanges, including Bybit, MEXC and KuCoin. There’s growing speculation that listings on more centralized exchanges (CEXs) may follow, especially given the size of the community and early engagement.Did you know? After migrating to Solana, Paws launched NFT vouchers on Magic Eden. In just two weeks, these NFTs generated over 100,000 transactions. Is Paws legit or just another hype train? Paws has demonstrated substantial growth and user engagement; however, users must do their own research before joining in. Let’s get to the big question: Is Paws legit?Paws has demonstrated substantial growth and user engagement. The following help to make a better assessment on how to approach Paws:​Pros:Developed by a team with a track record (Notcoin and Dogs).Successful migration to Solana indicates long-term planning and future orientation.Rapid user adoption and community growth.​Cons:Limited transparency with no public team page or comprehensive white paper.Potential for bot-driven airdrop farming, as has been seen on Telegram Mini Apps.The project is navigating regulatory uncertainty, particularly as airdrops via Telegram Mini Apps remain in a legal gray area, often lacking clear Know Your Customer (KYC) requirements.So, what’s the verdict? While Paws appears to be a well-used platform for casual engagement, users should conduct thorough research and exercise caution, especially when considering financial investments. What’s next for Paws? As the platform matures and cements its place, the team behind it has hinted at a much bigger vision: one that turns Paws from a simple viral game into a dynamic Web3 super app. Here’s what’s reportedly on the roadmap:In-app marketplace: Users will soon be able to spend their PAWS tokens within an integrated marketplace. This could include digital goods, services and utility items tied to the app’s gaming ecosystem, such as power-ups, skins or access to exclusive features.NFT rewards and avatar customization: Paws plans to introduce customizable avatars powered by NFTs. These will not only let users personalize their experience but also function as tradable digital assets. The team has already launched early NFT vouchers on Solana’s Magic Eden, showing a clear direction toward gamified asset ownership.Social leaderboards and guild mechanics: Paws is building out more community-first features. Competitive social leaderboards will reward the most active players, while upcoming guild mechanics will allow users to team up, compete and share rewards, blending social gaming with decentralized coordination.DeFi integrations: With its migration to Solana, PAWS has opened the door to deeper DeFi utility. Upcoming features could include staking, lending pools, yield-based games or partnerships with native Solana DeFi protocols, adding more financial layers to the Paws economy.With a user base now exceeding 80 million and growing, Paws is laying the groundwork to evolve into a full-blown Web3 social and gaming hub — though its rapid rise also warrants caution, as regulatory clarity and long-term sustainability remain key concerns.

Published Date: 2025-05-06 10:50:00
Creator: Cointelegraph by Shailey Singh
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Crypto spending will grow, but fiat isn’t going anywhere: Mercuryo CEO

Petr Kozyakov, CEO of crypto payments platform Mercuryo, told Cointelegraph that the future of finance may not be a winner-takes-all scenario but a blend of digital assets and fiat, each used where it makes the most sense. In a Cointelegraph interview, Kozyakov said that while crypto payments are seeing an increase in adoption and demand, the asset class won’t be fully replacing fiat money anytime soon. He said the two asset classes will coexist, with people choosing the more convenient payment option in different situations. “We don’t think crypto will replace fiat,” Kozyakov told Cointelegraph. “They will coexist, and people will turn to crypto when it’s the easier, more practical option, whether that’s for payroll, yield or money transfers.”Mercuryo Petr Kozyakov at the Token2049 event in Dubai. Source: CointelegraphCrypto payroll gains momentum as payment options expandCrypto as a salary payment option is no longer a novelty. Kozyakov told Cointelegraph that more companies are settling employee salaries with crypto assets. “That is a growing trend,” Kozyakov said. “I see a lot of businesses that are starting to settle with their full-time employees and with their gig employees all over the world, in crypto.”As more employees receive crypto salaries, new challenges can emerge. According to Kozyakov, workers paid in crypto may ask what they can do next with their funds. “You won’t invest everything and just wait. You need to use it for everyday purchases,” Kozyakov told Cointelegraph. This is where practical spending options are needed. Kozyakov said that crypto earners are looking for ways to use their digital asset incomes in daily life scenarios, whether buying coffee, going out for drinks or settling utility bills. As crypto becomes an option for employee salaries, there has also been a growing acceptance of crypto in employee contracts in some jurisdictions. In August 2024, a Dubai court recognized crypto as a valid form of salary payment. Related: OKX exec warns against hype amid real-world asset tokenization boomCrypto, a powerful tool for moving and storing moneyThe executive also told Cointelegraph that Mercuryo views crypto as more than just a speculative asset but a powerful tool for moving and storing value. “Crypto is not only an asset; it’s the perfect rail to move money and store money. And it is essential to be able to spend it.”The executive said that in practice, spending crypto can still be complex. He said it takes a few steps, including moving it to an exchange, sending it to a bank account and answering “weird” questions from banks. Because of this, he highlighted a need for easier ways to spend crypto directly. The executive said that this is where their company comes in. On April 23, the payment services firm collaborated with the hardware wallet company Ledger on a crypto payment card that allows users to spend crypto where Mastercard payments are accepted. Kozyakov told Cointelegraph that seamless crypto payment options will drive wider crypto adoption, not just as an investment, but as a true medium of exchange for daily life.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Published Date: 2025-05-06 10:27:31
Creator: Cointelegraph by Ezra Reguerra
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IRS appoints Trish Turner to head crypto division amid resignations

Veteran US Internal Revenue Service (IRS) official Trish Turner was appointed to lead the agency’s digital assets division following the departure of two key crypto-focused executives.Turner, who has spent over 20 years at the IRS and most recently served as a senior adviser within the Digital Assets Office, will now head the unit, according to a report from Bloomberg Tax citing a person familiar with the situation.Her promotion marks a significant leadership transition at a time when US crypto tax enforcement is facing both internal and external pressures.On May 5, Sulolit “Raj” Mukherjee and Seth Wilks, two private-sector experts brought in to lead the IRS’s crypto unit, exited after roughly a year in their roles.Mukherjee served as compliance and implementation executive director, while Wilks oversaw strategy and development. Wilks announced his departure on LinkedIn, while Mukherjee confirmed his decision in a statement to Bloomberg Tax.“The reality is that federal employees have faced a very difficult environment over the past few months,” Wilks wrote. “If stepping aside helps preserve someone else’s job, then I am at peace with the decision.”Seth Wilks announced his departure on LinkedIn. Source: Seth WilksRelated: Coinbase files brief with US Supreme Court in support of taxpayers’ privacyIRS ramps up crypto scrutinyThe IRS has ramped up its focus on cryptocurrency in recent years, increasing audits and criminal probes targeting digital asset transactions.It also attempted to introduce broad crypto broker reporting requirements, which drew sharp criticism from industry stakeholders and was eventually overturned by President Donald Trump.Set to take effect in 2027, the so-called IRS DeFi broker rule would have expanded the tax authority’s existing reporting requirements to include DeFi platforms, requiring them to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions.Related: NFT trader faces prison for $13M tax fraud on CryptoPunk profitsTurner’s leadership also comes during a shift in Washington’s approach to crypto regulation.With the return of the Trump administration in January, federal agencies have scaled back regulations perceived as burdensome to digital asset innovation.For instance, the Securities and Exchange Commission has dropped or paused over a dozen enforcement cases against crypto companies. Additionally, the Department of Justice has announced the dissolution of its cryptocurrency enforcement unit, signaling a softer approach to the sector.Internally, the IRS is also navigating instability. Over 23,000 employees have reportedly expressed interest in resigning after Trump reintroduced a deferred resignation policy, raising concerns about long-term staffing and morale within the agency.Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3

Published Date: 2025-05-06 09:50:25
Creator: Cointelegraph by Amin Haqshanas
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Fresh $1B in Tether mints on Tron, closing gap again with Ethereum

The Tron network has drawn closer to regaining the lead from Ethereum in Tether circulation after another big mint by the US stablecoin issuer.On May 5, Tether minted another $1 billion Tether (USDT) on the Tron network, according to Arkham Intelligence. This brings the total USDT on Tron to $71.4 billion, according to the Tether Transparency report. In comparison, there is currently $72.8 billion USDT circulating on the Ethereum network, so just $1.4 billion more USDT on Tron will see it become the leading network for the world’s largest stablecoin issuer, as it has been previously over the last two years. Tron was ahead of Ethereum for USDT circulation between July 2022 and November 2024, but a large $18 billion mint on Ethereum pushed the network ahead again, according to CryptoQuant. The third-largest network for USDT is Solana, which has $1.9 billion circulating, and there are smaller amounts on Ton, Avalanche, Aptos, Near, Celo and Cosmos. USDT circulation on Ethereum and Tron. Source: CryptoQuantTether’s total circulation is currently at a record high of $149.4 billion USDT, having increased by 8.6% since the beginning of this year. This gives the firm a commanding stablecoin market share of 61%, according to CoinGecko. Related: Tether AI platform to support Bitcoin and USDT payments, CEO saysIts closest competitor, Circle, has a market share of 25% with almost $62 billion USDC (USDC) in circulation.Stablecoin issuance has surged over the past six months, and they currently represent 8% of the total crypto market capitalization.In a report in late April, the United States Treasury Department predicted that the stablecoin market could reach $2 trillion by 2028 if regulatory clarity is achieved. Stablecoin legislation nearing next vote It is widely believed that two key pieces of legislation need to be passed into law in the US to cement the position of stablecoins. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act sets out clear definitions for “payment stablecoins” and reserve rules for stablecoin issuers.Lawmakers in the US Senate will move forward with a vote on the GENIUS stablecoin bill before May 26, according to reports. Meanwhile, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which governs the approval and supervision of “federally qualified nonbank payment stablecoin issuers,” is also going through Congress. Tether is also planning to launch a US-based stablecoin later this year, with timing dependent on the passing of legislation.  Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest

Published Date: 2025-05-06 02:57:27
Creator: Cointelegraph by Martin Young
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New crypto bill draft seen to curb big crypto firm influence

The new “Digital Asset Market Structure Discussion Draft” introduced by House Republicans on May 5 could work to reduce the dominance of large crypto firms and promote more participation in the broader market, according to an executive from Paradigm. The discussion draft, led by the House agricultural and financial services committee chairs Glenn Thompson and French Hill, is an “incremental, albeit meaningful, rewrite” of the Financial Innovation and Technology for the 21st Century Act (FIT21), Paradigm’s vice president of regulatory affairs Justin Slaughter said in a May 5 X post.One-pager of the digital asset market structure discussion draft submitted by House Republicans on May 5. Source: US House Agriculture CommitteeOne of the major changes from FIT21 is that the draft defines an affiliated person as anyone who owns more than 1% of a digital commodity issued by the project — down from 5% in the FIT21 bill — a move Slaughter said may curb the influence of big crypto firms and lead to more participation in the crypto market.“This is a portent of the entire bill. There are often criticisms of crypto being too dominated by a few large firms. This bill makes clear the regulatory regime proposed is going to push against that fact and strongly encourage more small-d ‘democratization’ of the space.”The draft also defines a “mature blockchain system” as one that, together with its related digital commodity, is not under the “common control” of any person or group.Source: Justin SlaughterThe Securities and Exchange Commission would be the main authority regulating activity on crypto networks until they become sufficiently decentralized, Slaughter noted.The draft also clarified that decentralized finance trading protocols are those that enable users to engage in a financial transaction in a “self-directed manner.” Protocols that meet this criterion are exempt from registering as digital commodity brokers or dealers.The draft also referred to digital commodities as “investment contract assets” to distinguish their treatment from stocks and other traditional assets under the Howey test.According to Slaughter’s analysis, securities laws won’t be triggered unless the secondary sale of tokens also transfers ownership or profit in the underlying business.Crypto firms would also have a path to raise funds under the SEC’s oversight while also having a “clear process” to register their digital commodities with the Commodity Futures Trading Commission, the committee members said in a separate May 5 statement.Joint rulemaking, procedures, or guidelines related to crypto asset delisting must be established by the CFTC and SEC should a registered asset no longer comply with rules laid out by the regulators.A ‘clear opportunity’ to advance crypto innovation, rules once and for allSpeaking about the need for a comprehensive crypto regulatory framework, the House committee members said crypto is a “clear opportunity” to advance innovation in the US — most notably through modernizing America’s financial infrastructure and reinforcing US dollar dominance.The Republicans criticized the previous Biden administration and the Gary Gensler-led SEC for adopting a regulation-by-enforcement strategy rather than creating clear rules for market participants.Related: VanEck files for BNB ETF, first in USMany crypto firms were stuck in “legal limbo” as a result of the unclear rules, which pushed some industry players overseas, where clearer rules exist, the House committee members said.“America needs to be the powerhouse for digital asset investment and innovation. For that to happen, we need a commonsense regulatory regime,” said Dusty Johnson, chairman of the subcommittee on commodity markets, digital assets and rural development.Slaughter added: “This is the bill that will, finally, provide a clear regulatory regime on crypto that many have been calling for.”Republicans already facing roadblocks over discussion draftHouse Financial Services Committee Ranking Member Maxine Waters plans to block a Republican-led event discussing digital assets on May 6, a Democratic staffer told Cointelegraph.The hearing, “American Innovation and the Future of Digital Assets,” is expected to discuss the new crypto markets draft discussion paper pitched by Thompson, Hill, and other committee members.However, according to the unnamed Democratic staffer, the current rules require all members of the House Financial Services Committee to agree on such hearings.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Published Date: 2025-05-06 02:38:34
Creator: Cointelegraph by Brayden Lindrea
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Samourai Wallet says feds hid advice that crypto mixer was in the clear

Samourai Wallet’s lawyers allege federal prosecutors suppressed advice that the firm didn’t need a license before they charged executives at the crypto mixing service months later. In a May 5 letter to a Manhattan federal court, lawyers for Samourai co-founders Keonne Rodriguez and William Hill said prosecutors disclosed that the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) representatives told them six months before they charged the pair “that under FinCEN’s guidance, the Samourai Wallet app would not qualify as a ‘Money Services Business’ requiring a FinCEN license.”“Shockingly, six months later, the same prosecutors criminally charged Keonne Rodriguez and William Hill with operating just such a business without a FinCEN license,” the lawyers added.The letter claimed that prosecutors were required to share their discussions with FinCEN over Samourai two weeks after they unsealed charges, making the deadline May 8 last year, but instead “suppressed this information for over a year, disclosing it only on April 1, 2025.” Prosecutors charged Samourai CEO Rodriguez and its technology chief Hill with conspiracy to operate an unlicensed money transmitting business and money laundering conspiracy in February 2024, unsealing the charges and arresting the pair in April that year. Samourai’s mixing service took crypto from multiple users and blended it together to hide its origins. The government alleged the platform helped with over $2 billion in illegal transactions and facilitated over $100 million worth of money laundering transactions from online black markets and scammers.Rodriguez and Hill both pleaded not guilty.In the letter, their lawyers said prosecutors shared details of a call with Kevin O’Connor, chief of FinCEN’s Virtual Assets and Emerging Technology Section in the Enforcement and Compliance Division, and Policy Division staffer Lorena Valente.According to an email from one of the prosecutors summarizing the call, FinCEN said that “because Samourai does not take ‘custody’ of the cryptocurrency by possessing the private keys to any addresses where the cryptocurrency is stored, that would strongly suggest that Samourai is NOT acting as an MSB [money services business].”An excerpt of an email from prosecutor Andrew Chan said FinCEN “did not have a sense” of what it would decide on Samourai. Source: CourtListenerThe email said O’Connor and Valente agreed that the government could try to argue that Samourai functionally controlled the crypto, “but that has never been addressed in the guidance, and so it could be a difficult argument” for prosecutors.Samourai’s lawyers asked the court for a hearing “to determine the circumstances surrounding the Government’s late disclosure” and to administer a remedy.Samourai to renew dismissal bid if case goes onRodriguez and Hill’s lawyers said that, using this latest information, they would again ask for the charges to be dismissed, arguing they lacked fair notice and “understood they were acting lawfully.”Related: US Treasury’s OFAC can’t restore Tornado Cash sanctions, judge rules Prosecutors and Samourai asked the court for more time on April 28 to consider potentially dismissing the case after the Justice Department rolled back its crypto enforcement.Rodriguez and Hill bid to dismiss the case in early April, arguing it should be dropped as Deputy Attorney General Todd Blanche said in an April 7 memo that the Justice Department wouldn’t prosecute crypto mixers for “unwitting violations of regulations.” In the latest letter, their lawyers said if the government “were to resist the Blanche Memo’s directive and push forward,” then they would bid to dismiss as “if they were not money transmitters under FinCEN’s guidance, then they could not possibly be prosecuted for not having a license.”Magazine: Tornado Cash 2.0 — The race to build safe and legal coin mixers 

Published Date: 2025-05-06 01:17:18
Creator: Cointelegraph by Jesse Coghlan
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New York district gets interim US Attorney as ex-SafeMoon CEO trial kicks off

Acting US Attorney for the Eastern District of New York (EDNY) John Durham has departed as President Donald Trump’s pick takes control of the office.In a May 5 notice, the US Attorney’s Office for EDNY said Joseph Nocella will serve as interim US Attorney for the region for 120 days or until a Senate-confirmed nominee assumes the role. Nocella’s appointment came as jury selection began in the criminal trial of Braden John Karony, the former CEO of crypto firm SafeMoon.It’s unclear how the advancement of Nocella, appointed by US President Donald Trump this month, could affect prosecutors’ case against Karony, who faces charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. Nocella said he intended to help prosecute “narcotics-traffickers, gang members, terrorists, human-traffickers and other criminals.”The former SafeMoon CEO asked the court in February to consider pushing back the start of the trial based on “significant changes” Trump had proposed affecting US securities laws, potentially impacting his criminal case.Related: What do crypto users want to happen to Alex Mashinsky?Though not as well known for criminal cases involving high-profile figures in the crypto industry, the Eastern District of New York has been responsible for overseeing cases against individuals tied to digital assets, including a Securities and Exchange Commission (SEC) complaint against Hex founder Richard Heart and fraudsters. Its neighboring district, the Southern District of New York, will oversee the sentencing of former Celsius CEO Alex Mashinsky on May 8. Jay Clayton, a Wall Street insider and the former chair of the SEC, became the interim US Attorney for the district in April.Criminal trial to start on May 6SafeMoon’s Karony, Kyle Nagy, and Thomas Smith were charged in November 2023 for “diverted and misappropriated millions of dollars’ worth” of the platform’s SFM token between 2021 and 2022. Karony has pleaded not guilty to all charges and has been free on a $3 million bond since February 2024.In a May 5 filing, Karony agreed to have jury selection for his trial proceed under US Magistrate Judge James Cho. District Judge Eric Komitee is expected to oversee the trial starting on May 6.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Published Date: 2025-05-05 22:10:00
Creator: Cointelegraph by Turner Wright
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OpenAI to stay nonprofit, scrap proposed overhaul

ChatGPT-maker OpenAI has abandoned plans to become a for-profit company and reaffirmed commitment to its nonprofit status. In a May 5 blog post, OpenAI confirmed plans to convert its for-profit business unit into a so-called Public Benefit Corporation (PBC), which would remain under the nonprofit’s control. PBCs are for-profit companies that are legally obligated to prioritize a social mission alongside the interests of shareholders. The plans mark a reversal for OpenAI, which had previously floated a for-profit conversion involving spinning out the nonprofit entity. “OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit. Going forward, it will continue to be overseen and controlled by that nonprofit,” the ChatGPT-maker said. This can be done without compromising OpenAI’s ability to raise funds for AI development, which “currently requires hundreds of billions of dollars and may eventually require trillions of dollars,” OpenAI’s CEO, Sam Altman, said in a letter to employees announcing the decision. In 2024, OpenAI took a starkly different view, asserting that the for-profit entity was “necessary” for raising capital to amass the “vast quantities of compute” needed to run AI models. OpenAI’s May 5 governance announcement. Source: OpenAIRelated: OpenAI expects to 3X revenue in 2025 but Chinese AI firms are heating upControversial Plans OpenAI was originally founded as a nonprofit in 2015, and in 2019 it created a for-profit entity purportedly to help AI developers raise funds. The for-profit unit has remained under the nonprofit’s control since then. In 2024, Tesla CEO Elon Musk — one of OpenAI’s cofounders — sued Altman for allegedly “violating terms of Musk’s foundational contributions to the charity,” according to a November court filing. In the lawsuit, Musk alleges Altman “assiduously manipulated Musk into co-founding their spurious nonprofit venture, OpenAI,” while secretly planning to convert OpenAI to a for-profit entity. Musk has since launched xAI, the developer of AI chatbot Grok, which he said has fallen victim to OpenAI’s allegedly anti-competitive practices.OpenAI’s leadership expects its revenue to hit $29.4 billion by 2026, Bloomberg reported in March. It forecasts earning revenues of $12.7 billion in 2025. In March, OpenAI raised $40 billion from Softbank at a $300 billion valuation. Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3

Published Date: 2025-05-05 21:33:00
Creator: Cointelegraph by Alex O’Donnell
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Good actors were 'unfairly targeted' by SEC — OpenSea's CEO

The Securities and Exchange Commission’s (SEC) enforcement approach on crypto firms has left a lasting “regulatory overhang” within the industry, according to Devin Finzer, co-founder and CEO of OpenSea. Speaking to Cointelegraph, Finzer said that during Biden's administration the agency unfairly targeted good actors in the crypto space, including OpenSea. “There's all sorts of digital assets, you know, you shouldn't treat them all the same. That's obvious. But I think the approach that the prior SEC was taking was kind of this, you know, very, very generic.”The SEC issued a Wells notice — a formal notification that is often a precursor to enforcement action — to OpenSea in 2024, alleging that the NFT marketplace was operating as an exchange for unregistered securities. At the time, Finzer criticized the SEC for taking an approach of “regulation by enforcement” and said that OpenSea was prepared to “stand up and fight.”With the SEC under new leadership by Chair Paul Atkins, Finzer is hopeful for a more balanced regulatory framework. “Good crypto regulation needs to balance, sort of, protecting consumers but also preserving the ability to innovate,” Finzer said. “It’s not just a one-size-fits-all problem, right?”Under the Trump administration, the SEC has scaled back enforcement actions against several crypto firms, marking a policy shift in the US after years of enforcement actions led by former Chair Gary Gensler.For instance, the agency has withdrawn legal challenges against exchanges Coinbase and Kraken, NFT companies Yuga Labs and OpenSea, and decentralized finance protocol Uniswap — most of them opened during Gensler’s term. The SEC has even dismissed its years-long case against Ripple.During the 2024 US election cycle, the crypto industry widely backed then-candidate Donald Trump, who promised to make the United States “the crypto capital of the planet.” Overall, crypto super political action committees, or PACs, donated over $119 million into the coffers of pro-crypto candidates, helping shape the elections.Related: Crypto’s debanking problem persists despite new regulationsNFTs: Low trading volume, high innovationThe SEC crackdown on crypto firms had weighed on the markets downturn following FTX collapse in November 2022, driving investors away from crypto products such as nonfungible tokensSince then, NFT trading volume has plummeted from its 2021 peak, affecting protocols and platforms such as OpenSea. In 2023, the company laid off 50% of its staff amid the market turmoil.Finzer says the NFT space is still flourishing, with innovation and new applications coming to life — especially in the gaming industry and art collectibles. Despite this, OpenSea has started exploring other areas, seeking to diversify its business to become a destination for all onchain trading beyond NFTs.“I mean, for the first time in the history of the internet, people have the ability to own digital stuff, right, in a real way,” Finzer said. “[...] you can move them around between different applications and take them with you wherever you go on the internet. And that's something that's really powerful.”Related: OpenSea denies NFT airdrop rumors, calls website a test page

Published Date: 2025-05-05 21:15:00
Creator: Cointelegraph by Christopher Tepedino
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