Crypto

‘Cross-chain bridges’ make illicit crypto harder to track

Published

3 years ago

August 10, 2022

‘Cross-chain bridges’ make illicit crypto harder to track

The rising use of “cross-chain bridge companies” — which switch cryptocurrency from one blockchain to a different, bypassing any centralized entities like an change — has made it harder to trace cryptocurrency funds, particularly the place it issues cash laundering. One such service alone, RenBridge, is believed to have laundered over $500 million in prison proceeds.

That is based on a latest report from Elliptic, which supplies cryptocurrency monitoring and compliance options. It famous that transaction quantity on these bridges has risen since October 2020, and whereas the latest peak appears to be this previous January, a whole lot of tens of millions of {dollars} price of transactions nonetheless happen repeatedly. The report urged that a lot of this exercise is linked immediately with prison exercise, noting that this started taking place as crypto exchanges turned extra regulated.

An evaluation by the corporate discovered that one cross-chain bridge specifically, RenBridge, has been used to launder no less than $540 million in cryptoassets originating from theft, fraud, ransomware and different forms of prison exercise since 2020. It additionally mentioned RenBridge is a vital facilitator for Russia-linked ransomware gangs, with over $153 million in ransom funds laundered by way of the service so far.

Purloined cryptocurrency makes up the most important portion of illicit exercise mentioned to be laundered by way of RenBridge, accounting for 49.2% of recognized proceeds, adopted by:

Funds from ransomware assaults, at 28.4%;
The mysterious “different” at 10.8%;
Cash from Ponzi schemes, at 9%;
Darkish internet markets at 2.1%; and,
Stolen bank cards at 0.5%.

Whereas using cross-chain bridges has made cryptocurrency harder to trace, the report says it’s not unimaginable as a result of there stays an excessive amount of transparency within the sector. Doing so, nonetheless, normally entails lengthy handbook searches. Elliptic not too long ago launched software program that gives automation options for such investigations.

Click to comment

Crypto

5 Reasons to Invest in Crypto When You’re Retired — And 5 Reasons to Avoid It

Published

6 hours ago

July 11, 2025

Press Room

5 Reasons to Invest in Crypto When You’re Retired — And 5 Reasons to Avoid It

As cryptocurrency continues to mature as an asset class and Bitcoin reaching new highs, more retirees are considering whether digital currencies deserve a place in their retirement portfolios. The debate over investing in crypto for retirement has intensified as inflation and cost of living depletes savings.

However, this decision involves careful consideration of both compelling opportunities and significant risks.

According to Kiplinger, some financial experts now recommend cryptocurrency for diversification in retirement accounts. Cryptocurrency often moves independently of traditional stocks and bonds, potentially providing valuable diversification during market downturns. For retirees who have most of their wealth in conventional assets, a small crypto allocation could reduce overall portfolio volatility.

With retirees particularly vulnerable to inflation’s impact on fixed incomes, cryptocurrency’s potential as an inflation hedge becomes attractive. Bitcoin’s limited supply of 21 million coins creates scarcity similar to precious metals, potentially protecting purchasing power over time. Unlike cash or bonds that lose value during inflationary periods, crypto assets may maintain or increase value as traditional currencies weaken.

Despite volatility, cryptocurrency has demonstrated remarkable long-term growth potential. Retirees focused on leaving a larger inheritance might allocate a small percentage to crypto for its upside potential. Even modest gains could significantly benefit beneficiaries, while limiting exposure prevents catastrophic losses to essential retirement funds.

According to The Wall Street Journal, Fidelity’s decision to allow Bitcoin in 401(k) accounts highlights the tax advantages of holding cryptocurrency in retirement accounts. Crypto held in traditional IRAs or 401(k)s grows tax-deferred, allowing compounding without annual tax consequences. While eventual withdrawals face ordinary income tax rates, the ability to trade between different cryptocurrencies without immediate tax implications provides flexibility that taxable accounts don’t offer.

As governments worldwide increase money printing and debt levels, cryptocurrency offers exposure to an alternative monetary system. Retirees concerned about long-term currency stability might view crypto as insurance against potential dollar devaluation or economic instability over their retirement years.

The Government Accountability Office warns that crypto assets have often been characterized as high-risk, high-reward, experiencing both record highs and devastating crashes. Retirees depending on their portfolios for living expenses cannot afford the dramatic swings that could eliminate years of savings in weeks. The volatility that creates opportunity also threatens financial security.

Financial experts recommend extreme caution with crypto in retirement portfolios. As reported by TIME, the Department of Labor has stated that cryptocurrencies “present significant risks and challenges” to future retirees, and that employers offering such plans “should expect to be questioned.”

Even when crypto is available in retirement accounts, allocation recommendations remain conservative. Kiplinger notes that while some experts now recommend crypto for diversification, buyer beware remains the watchword.

These cautious positions suggest professionals view crypto as unsuitable for significant retirement holdings.

The regulatory environment surrounding cryptocurrency remains fluid and unpredictable. Government actions can dramatically impact crypto values overnight, from taxation changes to outright bans. The Department of Labor has issued guidance warning that crypto assets are highly speculative and volatile, are difficult to assess and value, have custody issues, and face an uncertain regulatory environment. Retirees need stability, not assets subject to regulatory whiplash.

Charles Schwab points out a significant tax disadvantage: if the cryptocurrency you hold in a traditional 401(k) or IRA appreciates, those gains will be subject to ordinary income taxes upon withdrawal — whereas crypto held in a taxable account for longer than a year would be subject to the more favorable long-term capital gains rates. This means retirees could pay 10-15% more in taxes on crypto gains compared to holding the same assets in taxable accounts.

Cryptocurrency requires technical knowledge that many retirees lack. Private key management, wallet security, and exchange risks create additional layers of complexity beyond traditional investments. Exchange failures, hacking incidents and lost access credentials have cost investors billions. Retirees who struggle with digital technology face heightened risks of permanent loss through technical errors.

The cryptocurrency decision for retirees ultimately depends on individual circumstances, risk tolerance, and financial goals. According to Kiplinger, crypto may be coming to more 401(k) plans, making this decision increasingly relevant for retirement savers. Those considering crypto should evaluate several key factors:

Financial Stability: Only retirees with solid emergency funds and secure income streams should consider crypto exposure. Essential living expenses should never depend on volatile investments.

Risk Tolerance: Retirees comfortable with potentially losing their entire crypto investment might allocate 1-5% of their portfolio to digital assets. Those requiring stability should avoid crypto entirely.

Technical Competence: Successful crypto investing requires ongoing education and technical skills. Retirees uncomfortable with digital wallets and security protocols should reconsider.

Time Horizon: Retirees with 10-20+ year time horizons might weather crypto volatility better than those needing immediate income stability.

Given cryptocurrency’s complexity and risks, retirees considering crypto investment should consult qualified financial advisors with digital asset experience. The decision involves not just investment analysis but tax planning, estate considerations, and overall retirement security.

The crypto question for retirees isn’t black and white. While digital assets offer compelling diversification and growth potential, they also present risks that could jeopardize retirement security. The key lies in understanding both sides and making informed decisions aligned with individual financial situations and goals.

For most retirees, the prudent approach involves either avoiding crypto entirely or limiting exposure to amounts they can afford to lose completely. The promise of cryptocurrency gains must be weighed against the paramount importance of retirement financial security.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 5 Reasons to Invest in Crypto When You’re Retired — And 5 Reasons to Avoid It

Crypto

HMRC to Require Crypto User IDs for Tax Starting 2026 – Regulation Bitcoin News

Published

1 day ago

July 10, 2025

Press Room

The United Kingdom’s tax authority will implement new regulations starting January 1, 2026, requiring crypto asset users to provide tax identification numbers and other personal information to service providers. Streamlining Tax Assessments and Penalties The United Kingdom’s tax authority, His Majesty’s Revenue and Customs (HMRC), has announced new regulations that will require crypto asset users […]

Crypto

Truth Social Files for Cryptocurrency Blue-Chip ETF

Published

3 days ago

July 8, 2025

Press Room

Truth Social Files for Cryptocurrency Blue-Chip ETF

Truth Social, the social media platform backed by former U.S. President Donald Trump, has submitted an application for a cryptocurrency blue-chip ETF S-1 filing. This move marks a significant shift for the platform, which has been primarily known for its social media presence, into the realm of cryptocurrency investments. The filing indicates that Truth Social is aiming to capitalize on the growing interest in digital assets, particularly among its user base, which includes a significant number of individuals who are already engaged with cryptocurrencies.

The Trust’s assets are primarily composed of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cronos (CRO) held by the Trustee. Under the terms of the Trust Agreement, the Trust will allocate its assets to a percentage of the portfolio assets (allocation ratio) initially expected to be approximately 70% Bitcoin, 15% Ethereum, 8% SOL, 5% CRO, and 2% XRP. This allocation reflects a strategic focus on blue-chip cryptocurrencies, which are seen as more stable and less speculative compared to smaller, more volatile tokens.

The decision to file for a cryptocurrency ETF comes at a time when the cryptocurrency market is experiencing renewed interest. The market has seen a resurgence in activity, driven by factors such as declining interest rates and a more crypto-friendly regulatory environment. This shift has led many investors to reconsider their positions in cryptocurrencies, particularly in blue-chip tokens like Bitcoin and Ethereum.

The filing for a cryptocurrency ETF is a significant step for Truth Social, as it allows the platform to offer its users a more diversified investment option. By providing access to a blue-chip cryptocurrency ETF, Truth Social can attract a broader range of investors who are looking for a more secure and regulated way to invest in digital assets. This move also positions Truth Social as a forward-thinking platform that is adapting to the evolving financial landscape, where cryptocurrencies are becoming an increasingly important part of the investment ecosystem.

The submission of the S-1 filing is a crucial step in the process of launching an ETF. It involves providing detailed information about the fund’s structure, investment strategy, and risk factors to regulatory authorities. Once approved, the ETF will allow investors to gain exposure to a basket of blue-chip cryptocurrencies without having to directly purchase and manage individual tokens. This can be particularly appealing to investors who are new to the cryptocurrency market or who prefer the convenience and security of an ETF.

The filing also highlights the growing integration of cryptocurrencies into mainstream financial products. As more platforms and companies enter the cryptocurrency space, the demand for regulated and secure investment options is likely to increase. This trend is driven by the recognition that cryptocurrencies offer unique benefits, such as decentralization, transparency, and the potential for high returns, which make them an attractive addition to traditional investment portfolios.

In summary, Truth Social’s submission of a cryptocurrency blue-chip ETF S-1 filing is a strategic move that reflects the platform’s commitment to innovation and its recognition of the growing importance of cryptocurrencies in the financial landscape. By offering a regulated and secure investment option, Truth Social can attract a broader range of investors and position itself as a leader in the evolving world of digital assets.