USDT and BTC at Center of $180 Million Brazilian Banking Heist
In a historic cyberheist targeting Brazil's banking system, attackers siphoned off $180 million, utilizing cryptocurrencies like Tether (USDT) and Bitcoin (BTC) to launder the stolen funds. The breach, potentially the largest in the nation's financial history, exploited instant payment systems such as Pix for fiat conversion. The funds were funneled through undisclosed cryptocurrency exchanges, highlighting the growing use of digital assets in large-scale financial crimes. This incident underscores the dual-edged nature of cryptocurrencies, offering both innovation and challenges in the financial sector.
$180 Million Hacked From Brazilian Banking System via Crypto Cash-Out
Brazilian financial institutions suffered a historic $180 million breach, with attackers leveraging cryptocurrencies to launder funds. The operation marks potentially the largest cyberheist in the nation's banking history, exploiting instant payment rails like Pix for fiat conversion.
Tether (USDT) and Bitcoin (BTC) served as primary exit vehicles, funneled through undisclosed cryptocurrency exchanges. The incident underscores growing regulatory concerns about digital assets' role in cross-border financial crimes.
DOJ Recovers $40K in Crypto from Trump-Vance Inaugural Committee Impersonation Scam
The U.S. Department of Justice has thwarted a cryptocurrency scam involving a Nigerian national who impersonated a member of the Trump-Vance Inaugural Committee. The fraudster, posing as co-chair Steve Witkoff, used a lookalike email address (@t47Inaugural.com) to deceive a victim into transferring 250,300 USDT.ETH on December 26, 2024. USDT.ETH is a dollar-pegged stablecoin issued on the ethereum blockchain.
Authorities recovered $40,300 of the stolen funds and issued a stark warning to donors about verifying cryptocurrency recipients. U.S. Attorney Jeanine Ferris Pirro emphasized the challenges of tracing blockchain transactions but vowed aggressive prosecution of such crimes. The case underscores the persistent risks of phishing and impersonation in crypto transactions.
China’s Tech Giants Advocate for Yuan Stablecoin to Challenge USDT Dominance
JD.com and ANT Group are actively lobbying the People's Bank of China to authorize a yuan-pegged stablecoin in Hong Kong. The MOVE aims to reduce reliance on US dollar-backed digital currencies like Tether's USDT, which currently holds a 68.2% market share. Both companies plan to issue Hong Kong dollar-backed stablecoins under new regulations effective August 1.
A yuan-based stablecoin could significantly enhance the currency's international use, particularly as Chinese exporters increasingly turn to USDT for cross-border payments. This shift allows businesses to bypass currency risks and capital controls, despite China's 2021 cryptocurrency ban.
Hong Kong's upcoming Stablecoin Ordinance provides a regulatory framework for such initiatives, enabling firms like JD.com and Ant Group to apply for licenses. Approval of a yuan stablecoin WOULD mark a pivotal moment in China's digital asset strategy and potentially reshape global finance dynamics.
Amundi Warns U.S. Stablecoin Regulation Could Disrupt Global Payments
European asset manager Amundi has raised concerns that the U.S. GENIUS Act, recently passed by the Senate, may destabilize the global payment system. The legislation aims to regulate dollar-pegged stablecoins, treating them as payment instruments rather than securities. This approach subjects issuers to heightened scrutiny from both state and federal regulators.
Coinbase's Chief Policy Officer Faryar Shirzad views the bill as a strategic move to position the U.S. as a leader in digital asset innovation. Meanwhile, Circle CEO Jeremy Allaire notes bipartisan support, with the bill now advancing to the House of Representatives. Critics argue that overly permissive policies, particularly those allowing interest-bearing features, could siphon deposits from traditional systems and create systemic risks.
