14 May 2025, 14:12

U.S.-Registered Xinbi Guarantee Linked to $8.4 Billion in Illegal Activity

The post U.S.-Registered Xinbi Guarantee Linked to $8.4 Billion in Illegal Activity appeared first on Coinpedia Fintech News A company registered in Colorado, USA, has been secretly running one of the world’s biggest illegal crypto networks. Called Xinbi Guarantee, this company has helped criminals move $8.4 billion worth of crypto since 2022, right under the nose of U.S. authorities. From money laundering and scams to sex trafficking and fake ID sales, Xinbi’s dark business shows how dangerous and fast-growing the crypto crime world has become. Xinbi Guarantee’s Criminal Empire Built on Telegram Xinbi Guarantee mainly works through Telegram, where it runs a major black-market service. Though it claims to serve Chinese-speaking clients, but it proudly claims to be registered in Colorado, showing its U.S. legal status on its website. According to a report by blockchain firm Elliptic , Xinbi uses Tether (USDT) for most transactions. In just the last three months of 2024, more than $1 billion flowed through the platform. Xinbi also helped North Korean hackers launder stolen money from the $235 million hack of the Indian crypto exchange WazirX. Just days after the attack, its wallets received around $220,000 in USDT. From Fake IDs to Human Trafficking The number of Xinbi users has doubled in just a few months, jumping from 119,000 in August 2024 to 233,000 now. But it’s not just the numbers that are concerning—it’s the nature of what the platform offers. This isn’t just about stolen crypto. Vendors are also selling fake IDs, stolen personal data, and fraudulent documents. Even worse, the platform reportedly facilitates sex trafficking, harassment-for-hire, and access to egg donors and surrogates, blurring the line between digital crime and human exploitation. U.S. Registration, But No Real Oversight Despite all this, Xinbi Guarantee was officially registered in Aurora, Colorado, in 2022. However, the firm’s status turned “Criminal” in early 2025 for failing to file required reports. This raises serious questions about how such platforms exploit U.S. corporate systems to operate globally without scrutiny. Telegram Takes Quick Action After Elliptic’s report, Telegram shut down many Xinbi-related channels, including some linked to another illegal platform, Huione Guarantee. This is a good step, but experts say much more needs to be done.

14 May 2025, 14:06

XRP Price Prediction Points Towards $5 And 12,000% Surge For New “XRP 2.0” Rival

The post XRP Price Prediction Points Towards $5 And 12,000% Surge For New “XRP 2.0” Rival appeared first on Coinpedia Fintech News XRP price predictions are pointing towards a $5 target, with analysts forecasting significant gains ahead. As XRP continues to show strong potential, a new challenger, Remittix , is emerging as an “XRP 2.0” rival. With a predicted 12,000% surge, Remittix’s innovative cross-border payment solution could disrupt the market. Want to know if XRP could reach $5 and why Remittix might outpace it? Read on to discover why Remittix is the next big thing in crypto. UNLOCKING! Remittix A 2025 MUST-HAVE! Can XRP reach $5? Price prediction and future outlook One of the best-performing cryptocurrencies since the bull resurgence is XRP; many experts believe its price might surge above $5. The latest market movement and strong positive signals indicate a possible advance, particularly following a breakout above important resistance levels. After its lowest moments, XRP’s price has been gradually rising, with some projections indicating that, given the correct momentum, the coin might even reach a new all-time high. The rising user base and institutional support the cryptocurrency receives strengthen its future. Another advantage that might provide XRP with long-term stability is concluding its legal battle with the SEC. Source: TradingView Although this is contingent on various elements, including market sentiment, regulatory clarity, and rising acceptance of XRP in real-world use cases, the present trend demonstrates growing confidence from investors, making the $5 aim realistic. The big question is, when is this $5 achievable? Remittix as XRP 2.0: The rival with a possible 12,000% increase Although XRP is still strong, a fresh rival, Remittix, is already being referred to as “XRP 2.0” because of their similarities in key product features. With its creative PayFi system, Remittix seeks to change cross-border transactions. Customers can send money from their crypto wallets to bank accounts without any knowledge of cryptocurrencies. The Remittix token RTX is attracting interest because of its potential. Based on its presale performance, with more than 75% of the total token supply sold, analysts estimate RTX might witness a huge 12,000% increase in the next years. Remittix has generated almost $15 million in presale and might see its value increase as more people and companies choose crypto-to-fiat solutions. Some analysts even think it may eventually outperform XRP. Designed for simple crypto-to-fiat transactions, the Remittix platform might become the preferred method for cross-border payments. Its meteoric surge will help establish Remittix as a fierce rival of XRP in the crypto market. EYES ON THE PRIZE! Remittix THIS CRYPTO IS ON THE PATH TO BLUE CHIP GLORY! XRP vs XRP 2.0: How do they compare? Though their methods differ, XRP and Remittix both operate in the business of enabling quick and cheap cross-border payments. With a sizable market capitalization and past usage in financial institutions, XRP is already well-known. The major benefits of XRP are high liquidity, a great network, and general acceptance. Though being in its early years, Remittix offers something fresh and interesting. The Remittix PayFi technology is special since it lets anyone use crypto for international transactions regardless of their level of expertise in cryptocurrencies. This ease of usage could make Remittix particularly attractive to a broader audience, especially those unfamiliar with crypto. While XRP has experienced a consistent increase, Remittix is positioned for explosive development. Though Remittix’s creative strategy may help it to eventually grab a bigger market share, XRP’s maturity compared with Remittix’s potential for a huge spike indicates both projects could flourish. Finally, supported by rising institutional interest and increased adoption, analysts estimate that XRP and Remittix have a bright future and might rise above $5. However, Remittix is an emerging competitor that might just outshine XRP in the coming years. With its innovative cross-border payment system and the explosive growth potential of RTX, Remittix could be the new force in the crypto market. Early involvement with Remittix, particularly during its presale phase, should be taken into consideration by investors since it’s providing returns beyond XRP’s present potential. Available for $0.0757, don’t miss the opportunity to participate in the next major cryptocurrency event, Remittix. Discover the future of PayFi with Remittix by checking out their presale here: Website : https://remittix.io/ Socials: https://linktr.ee/remittix

14 May 2025, 14:05

JPMorgan Chase, With $4 Trillion in Assets, Executes First Public Tokenized Treasury Trade on Ondo's Blockchain Using Chainlink

JPMorgan Chase, managing $4 trillion in assets, has executed its first public transaction of tokenized treasuries using Ondo's public blockchain. The transaction, facilitated by Chainlink, marks the bank's first step onto a public ledger, moving away from its traditional private blockchain approach. This development, reported by Fortune, involves the first tokenized Treasury trade by JPMorgan, symbolized by $JPM, $ONDO, and $LINK, indicating a potential shift in the traditional finance sector's approach to blockchain technology. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io

14 May 2025, 14:03

JPMorgan settles tokenized treasuries transaction using Ondo Finance and Chainlink

JPMorgan Chase has taken a step toward integrating with a public blockchain transaction using Ondo Finance and Chainlink. On Wednesday, the bank announced that it had settled a transaction on a public blockchain for the first time, using technology from Chainlink ( LINK ) and Ondo Finance ( ONDO ), according to Fortune reporting . The transaction, conducted in early May, involved JPMorgan’s blockchain division, Kinexys , moving funds between accounts on its private network to settle a purchase of tokenized U.S. Treasuries on Ondo’s public platform. According to Ondo Finance, the transaction was the first cross-chain, atomic Delivery versus Payment settlement of a tokenized asset on the Ondo Chain testnet. The transaction connected Kinexys’ permissioned bank settlement infrastructure with the public Layer 1 Ondo Chain via Chainlink’s cross-chain technology. JPMorgan used a public blockchain to process a transaction involving tokenized U.S. Treasury bonds. In partnership with $LINK and $ONDO . My bags are pumping. 👀 Until now, JPMorgan operated strictly within private networks. This marks a major shift toward public blockchain… https://t.co/2PpXHqF9IO pic.twitter.com/YzXU3bJPED — Ted (@TedPillows) May 14, 2025 The process relied on Chainlink’s interoperability protocol to trigger the payment, enabling communication between JPMorgan’s private system and the public blockchain. While JPMorgan has previously explored blockchain applications outside its proprietary network, including a 2024 pilot with Siemens Digital, this marks the first time the bank has built an operational framework to interact directly with public blockchains, according to Fortune. You might also like: UBS: Wealthy clients are shifting away from U.S. dollar-based assets and turning to gold and crypto Traditional institutions are venturing into crypto JPMorgan’s move comes amid a broader shift in the U.S. regulatory climate. Traditional financial firms are ramping up their crypto activity. Fidelity is testing a stablecoin, Morgan Stanley is exploring crypto trading through E*Trade, and BlackRock continues to grow its tokenized treasury offerings. Discussions between Kinexys and Chainlink began more than two years ago, and the project has been part of the bank’s long-term strategy, according to Fortune. You might also like: Kazakhstan proposes ’70/30′ model to fund energy upgrades through crypto mining

14 May 2025, 14:02

Behind Closed Doors Gensler Was Not Anti Crypto: McHenry

Former US Representative Patrock McHenry suggested that Gensler's public hostility was politically motivated. Meanwhile, Senators Cynthia Lummis and Bernie Moreno are pushing the Treasury Department to revise corporate crypto tax rules, and warned that taxing unrealized gains on digital assets harms US competitiveness. Also in the US, Sam Altman’s Worldcoin project is facing more backlash over privacy concerns as it rolls out iris-scanning verification hubs in the country. The patchwork of state biometric laws is also making things more difficult for the project to gain traction. Gensler Accused of Playing Politics on Crypto Former US Securities and Exchange Commission (SEC) Chair Gary Gensler may have had a much more favorable view of crypto in private than his public actions suggested. This is according to former US Representative Patrick McHenry. On the Crypto in America podcast on May 13, McHenry recounted some of his private interactions with Gensler, and revealed that the former SEC chair expressed a nuanced understanding of digital assets behind closed doors. “Did he come across, or was he as anti-crypto in private as he was in public?” McHenry was asked. “No… Nope,” he responded, adding that Gensler “saw the value of digital assets” and acknowledged the promise of blockchain technology, particularly during his academic tenure at the Massachusetts Institute of Technology. Former US Representative Patrick McHenry Gerald Gallagher, general counsel at Sei Labs, supported this view by pointing out Gensler’s lesser-known academic contributions, including his involvement in shaping the concept of the airdrop. Despite these insights, McHenry said he was dismayed by the shift in Gensler’s posture once he assumed leadership at the SEC in 2021. During his tenure, Gensler spearheaded more than 100 enforcement actions against crypto companies, which is a strategy that drew widespread criticism from industry leaders and politicians. McHenry described discussions with Gensler as perplexing, and said that while conversations would begin constructively, they would often descend into contradictions. He suggested Gensler’s hardline public stance may have been driven more by Senate confirmation dynamics than personal conviction. Gensler officially left the SEC on Jan. 20, 2025, after which he returned to MIT to teach courses on fintech and AI. Unfortunately, his time at the SEC left a trail of industry resentment. In late 2024, Coinbase CEO Brian Armstrong announced the company would cut ties with law firms employing former SEC officials who participated in what he described as a campaign to “unlawfully kill” the crypto industry. Similarly, in early 2025, Gemini declared that it would no longer hire MIT graduates unless the institution severed ties with Gensler. Senators Push Treasury for Crypto Tax Relief While Gensler’s actual stance on crypto is still unclear, other lawmakers are making their voices heard. Two US senators urged the Treasury Department to revise how corporate taxes apply to digital assets. They believe this move is necessary to preserve America's competitive edge in the digital finance space. In a letter dated May 12, Senators Cynthia Lummis and Bernie Moreno called on Treasury Secretary Scott Bessent to amend the definition of “adjusted financial statement income” under current law. Their proposal seeks to ease the tax burden that is imposed by the Inflation Reduction Act, which levies a 15% minimum tax on corporations earning over $1 billion in profits for three consecutive years. Under the current framework, companies could be taxed on unrealized gains from crypto holdings, which is a prospect that Lummis and Moreno argue puts US firms at a disadvantage compared to their international peers. Lummis is a longtime advocate for digital asset innovation, and she placed a lot of emphasis on the importance of quick action in a May 13 social media post. She warned that failure to adapt could threaten the nation’s leadership in digital finance. (Source: Follow the Crypto) Moreno is a freshman senator whose campaign was supported by crypto-aligned political action committees, and had similar concerns in the letter. Both senators argued that modifying the tax code could provide much-needed relief to corporations investing in digital assets. This initiative comes amid wider legislative efforts related to crypto, including renewed attempts to pass the GENIUS Act — which is a bill that is aimed at creating a regulatory framework for payment stablecoins. A May 8 motion to consider the bill in the Senate stalled after Democrats objected to former President Donald Trump's connections to the crypto industry. Despite the setback, Lummis indicated that she will continue to support advancing digital asset regulation and suggested the Senate could revisit the stablecoin bill vote. Worldcoin Raises Alarms in US Privacy Debate Meanwhile, regulators are more uncertain about World Network, the digital identity and crypto project launched by Sam Altman’s OpenAI. It is facing mounting global criticism and regulatory scrutiny as it prepares for its launch in the United States. Formerly known as Worldcoin, the initiative uses iris-scanning technology to create a unique digital identity for users, which the company claims will help distinguish humans from AI in an increasingly automated world. However, privacy advocates argue that the project poses a serious threat to personal freedom and security, and warned that biometric data collected could be used for profiling, surveillance, and discrimination. Despite its promise of privacy protection, World has already been banned in countries like Spain, Brazil, and Hong Kong, while authorities in India, South Korea, Kenya , Germany, and others have launched investigations or ordered the deletion of user data. Critics claim the project offers insufficient transparency, targets vulnerable populations, and fails to offer clear consent withdrawal mechanisms. Additionally, Privacy International and Amnesty International both warned that without strict legal frameworks and oversight, biometric data collection initiatives like World risk enabling mass surveillance and eugenics-based profiling. World now plans to expand into the US and establish verification hubs in Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco, where users can scan their irises to obtain digital IDs. Yet the project faces a very complex patchwork of biometric privacy laws that vary a lot between states. World’s orbs Only California and Texas currently have state-level protections for biometric data, and enforcement in Texas is limited to the attorney general’s discretion. Legal experts warn that users in states without these kinds of protections are particularly vulnerable, as there is no federal law specifically governing the collection of biometric data like iris scans. Cyberlaw attorney Andrew Rossow explained that user protections depend heavily on the willingness and capacity of local authorities to act, which may vary widely. While Ethereum community figures like Tomasz Stańczak and Paul Dylan-Ennis have voiced cautious optimism about World’s privacy protocols, others are still deeply skeptical.

14 May 2025, 13:57

BTCI: Tax Efficient Bitcoin Income

Summary BTCI employs a covered call strategy, buying Bitcoin via VanEck's Bitcoin ETF and selling Bitcoin futures to generate income, limiting upside but providing steady returns. The fund's performance trails Bitcoin and MAXI, but aligns closely with YBTC, indicating typical underperformance of covered call funds in volatile or bull markets. BTCI's use of Bitcoin futures offers capital efficiency, maintaining significant upside potential, which can be seen in its comparison to YBTC. Distributions made by BTCI are largely tax-efficient, and this article discusses why it is suitable for taxable brokerage accounts despite its high income. Introduction In my quest to build the perfect portfolio, I've stumbled across quite a few Bitcoin ( BTC-USD ) funds, in particular those that trade options on top of Bitcoin holdings. Most recently, I've reviewed Simplify's MAXI and Roundhill's YBTC . In both reviews, I received the same question from readers: What about the NEOS Bitcoin High Income ETF (BATS: BTCI )? Okay, they don't write the name out like that, but it's all the same. The people want to know if BTCI is worth its salt, especially after I gave green lights to both MAXI and YBTC. Let's take a look at BTCI to see how it stacks up. The fund's investment strategy is fairly straightforward. Like most covered call funds, it buys its reference asset and then systematically sells call options against that long position. This limits the upside of the asset, but provides income. More on that later. We can see how much of BTCI's returns are made through this income by comparing its price returns and total return, which includes dividends paid but not reinvested. Data by YCharts The fund has kept up with Bitcoin over time, although its underperformance to the asset itself is to be expected, as the income produced by BTCI is a direct result of the capped upside. That doesn't make it a bad investment, especially for those that are wanting to use the income and are willing to pay the difference in total return in order to have the income hit their account each month without their intervention or timing of selling shares. Data by YCharts BTCI Strategy Covered call strategies are fairly straightforward, given how complex options strategies can get. The fund buys Bitcoin, which it owns via VanEck's HODL ETF, and then sells Bitcoin futures contracts to generate income. Futures are settled in cash, so the fund doesn't have to sell its Bitcoin if the strike on the call option is breached; they just pay the losses in cash. This is part of why NAV may decline even as Bitcoin rises, and one of the reasons to focus on total return. When looking at BTCI's holdings, we see that it owns HODL as only part of its long exposure. The fund also owns long Bitcoin futures, which act as a source of capital efficiency for the fund. This is because futures often give investors more exposure than they pay for, i.e., leverage. This allows the fund to own less than 25% of its NAV in HODL and less than 10% of its NAV in long Bitcoin futures, and still maintain an upside target of nearly 80% for Bitcoin. Note that the short put, is a long position as well. Combined with the long call, it produces a "synthetic" position in Bitcoin, which functions with the same PnL of being long the asset itself. NEOS This combination of assets, and the use of capital-efficient leverage like futures, allows the fund to also hold over 70% of its NAV in T-Bills, which is effectively a cash position. BTCI Performance Against Peers When looking at all three of the funds I've covered up against each other, and against uncovered Bitcoin (measured by IBIT ), limited by BTCI's history as it's the newest fund, we see an interesting pattern emerge. While MAXI has been far more volatile than the other funds, due to its equities-based options overlay, it has actually exceeded Bitcoin's return over this timeframe (which is fairly arbitrary, for the record), while BTCI and YBTC trail behind it. This is par for the course, and we should expect underperformance against the reference asset, Bitcoin, over the long run. Such is par for the course with covered call funds, which will only outperform in sideways markets, and even then, they may still underperform depending on how volatile the asset is. In bull markets, these funds limit their upside exposure with the covered calls and pad their downsides with the income generated from a total return perspective. Data by YCharts MAXI is a bit unfair as a comparison, because it does not cap the upside of Bitcoin, and instead gets its income from its equities and commodities options trading. YBTC is a far closer comparison to BTCI's strategy, given they both directly cap the upside of Bitcoin. BTCI Dividends & Taxes Now, we can get to the main course, the reason most folks are reading this article (I imagine, I suppose I could be wrong on this one): the income. Data by YCharts Its dividend is fairly variable, and really depends on the trading done by management. Expect it to be inconsistent moving forward, as it has been in the past. BTCI doesn't offer the mammoth 55% yield that YBTC does, clocking itself in at a distribution rate of 27%. However, it has outperformed YBTC in total return over its lifespan, which is a great reminder that a higher yield doesn't always mean better results. NEOS Note that I used "distribution rate" and not the 30-day SEC yield, which is at a far, far lower 2%. This is because the distributions that BTCI makes are not primarily net investment income ("NII") or "ordinary income," such as the interest from treasuries (where that 2% comes from to begin with). Instead, as per the IRS rule Section 1256, futures gains are taxed as capital gains. As per Cornell Law School : ... any gain or loss with respect to [futures] shall be treated as... ( A ) short-term capital gain or loss, to the extent of 40 percent of such gain or loss, and ( B ) long-term capital gain or loss, to the extent of 60 percent of such gain or loss, and Because of this rule, distributions made from futures gains inside an ETF are classified as return-of-capital ("RoC"). When looking at BTCI's 19a-1 forms , where the tax classifications for distributions are initially declared (although subject to some later revision, potentially), we see that the vast majority of their distributions are made this way. Here is the latest 19a-1 form from the April distribution: NEOS RoC isn't a bad thing, necessarily. As mentioned earlier, it is an accounting gimmick, more or less. It changes how your taxes are paid. Distributions that include RoC are counted against the cost-basis of your shares, and only create a taxable event when you sell those shares. This means that the income is tax-deferred until the sale of the shares, or until your cost-basis becomes zero. If you get to zero on your cost-basis, new RoC distributions would be considered long-term capital gains, according to this IRS publication . A nondividend distribution reduces the basis of your stock. It is not taxed until your basis in the stock is fully recovered. This nontaxable portion also is called a return of capital; it is a return of your investment in the stock of the company. If you buy stock in a corporation in different lots at different times, and you cannot definitely identify the shares subject to the nondividend distribution, reduce the basis of your earliest purchases first. When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock... Example 1. You bought stock in 2010 for $100. In 2013, you received a nondividend distribution of $80. You did not include this amount in your income, but you reduced the basis of your stock to $20. You received a nondividend distribution of $30 in 2023. The first $20 of this amount reduced your basis to zero. You report the other $10 as a long-term capital gain for 2023. You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. This makes BTCI suitable for taxable brokerage accounts, because its primary income is delivered in this tax-efficient form, which can be cashed in as capital gains at the discretion of the investor (provided your cost basis isn't zero), instead of in the year they are received. Meanwhile, the cash still hits your account and is liquid, despite the taxes on it being put off indefinitely. Suitability Investors need to very carefully consider an allocation to BTCI, as it is a very risky asset to hold long. Bitcoin could plummet, and despite the income generated by the fund, BTCI will get all the same downside. The loss may even be accelerated by the fund's synthetic futures position, which could act against an investor in a sudden crash of the underlying asset. Aggressive investors could consider up to a 3% allocation to BTCI, but should be aware that it is very volatile and only useful for speculation. If an investor has other cryptocurrency exposure, they are advised to lower that allocation to 2% or under. Moderate investors could consider up to a 1% allocation to the fund, and should be aware that they are on the cusp of being intolerable of the kind of risk that cryptocurrency brings to a portfolio. Capping the upside to produce income is a solid strategy for these folks, but the downside they could see if still hefty. Conservative investors should not only avoid BTCI entirely, but Bitcoin itself too. Cryptocurrencies, and funds that sell options against them, are unsuitable for conservative investors entirely. Those investors looking for high volatility income are likely better off with risk-on equities income funds like J PMorgan's JEPQ . Conclusion I am a fan of tax-efficient income funds like the NEOS Bitcoin High Income ETF ( BTCI ) because of its ability to capture some of the upside in Bitcoin, but also provide a tax-efficient way to access the income from its volatility. Of course, risks around underperforming uncapped Bitcoin and still receiving all the downside (less the income received) are worth pausing and considering your own risk tolerance. While the fund receives a buy from me, this is because I see it is a better option than Roundhill's YBTC, which distributes a much higher amount and in return has offered a lower total return, since it misses out on too much of Bitcoin's upside. That being said, my favorite Bitcoin fund is still Simplify's MAXI , as it produces similar amounts of income to BTCI without directly capping the upside of its Bitcoin exposure. That fund is riskier than BTCI, but folks interested in Bitcoin covered call funds are likely to have the risk tolerance for either fund, and could consider even holding both if they have the portfolio space for speculative positions like cryptocurrency. The most important thing to remember is a phrase I've been leaving at the end of a lot of my articles recently, mostly because I think folks need to keep hearing it: Position sizing is often more important than security selection. Thanks for reading. (3) any gain or loss with respect to a section 1256 contract shall be treated as— ( A ) short-term capital gain or loss, to the extent of 40 percent of such gain or loss, and ( B ) long-term capital gain or loss, to the extent of 60 percent of such gain or loss, and