Market
DOJ Arrests $73 Million International Pig Butchering Fraudsters
The US Department of Justice (DOJ) has arrested two Chinese nationals, Daren Li and Yicheng Zhang, for orchestrating a massive crypto scam known as “pig butchering.” This scheme led to the laundering of at least $73 million.
The arrests highlight that pig butchering scams remain a significant concern in the crypto industry.
The Duo Ran an International Scam Syndicate
According to the DOJ, officials arrested Li on April 12 at Hartsfield-Jackson Atlanta International Airport and transported him to the Central District of California. Meanwhile, Zhang was arrested in Los Angeles.
“We announce the arrests of two foreign nationals charged for leading a scheme to launder funds tied to an international crypto investment scam. Crypto investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” Deputy Attorney General Lisa Monaco said.
The DOJ discovered extensive coordination from their communications to facilitate international money laundering, including chats discussing the network’s commission structure, various shell companies used, victim information, and at least one video of a conspirator calling a US financial institution.
Li and Zhang managed an international syndicate of pig butchering investment scams. The duo instructed co-conspirators in the laundering network to open bank accounts in the names of shell companies. Once the victims sent funds to the shell companies, Li and Zhang monitored the lower-level co-conspirators who transferred the proceeds overseas to bank accounts at Deltec Bank in The Bahamas.
The scheme involved more than $73 million converted to the USDT stablecoin. Additionally, a cryptocurrency wallet in the scheme received more than $341 million in virtual assets.
Li and Zhang are charged with conspiracy to commit money laundering and six substantive counts of international money laundering. They face a maximum penalty of 20 years in prison on each count if convicted.
In response to this case, Assistant Director of Investigations Brian Lambert of the US Secret Service explained that the US financial infrastructure is under threat from complex financial fraud schemes.
“Complex financial fraud schemes such as pig butchering present a clear and present threat to the financial infrastructure of the US as countless numbers of Americans continue to be victimized by this predatory activity,” Lambert said.
Lambert’s statement aligns with Federal Bureau of Investigation (FBI) data. According to the 2023 Internet Crime Report from the FBI, investment fraud was the costliest crime tracked by IC3.
Read more: Crypto Scam Projects: How To Spot Fake Tokens
Losses to investment scams rose from $3.31 billion in 2022 to $4.57 billion in 2023, a 38% increase. Confidence/romance crimes accounted for 17,823 complaints throughout the year.
False Promises and Empty Wallets: The Anatomy of Pig Butchering Scams
Pig butchering scams involve fraudsters creating fake identities to connect with potential victims, typically via text messages, social media platforms, or dating apps. Gradually, these scammers build seemingly genuine relationships with their targets through regular and friendly interactions. This method resembles the practice of fattening a pig before butchery, hence the name.
Once relationships are established, scammers introduce cryptocurrency into the dialogue. They typically don’t request money or cryptocurrency directly. Instead, they offer to help victims with their investment strategies and direct them to send money to platforms under their control.
Initially, victims may transfer small amounts to a cryptocurrency exchange. To keep the scam believable, scammers provide fake account information showing the victims’ investments are increasing.
They might even allow victims to withdraw a portion of their initial investment to appear legitimate. Scammers persist in pressuring victims to send more money until they are completely drained of funds.
Read more: 15 Most Common Crypto Scams To Look Out For
A United Nations report describes the Mekong region of Southeast Asia as the primary hub for this criminal activity. An increasing number of casinos blend with ungoverned borders and armed groups in Myanmar’s long-running civil conflict. This background creates ideal conditions for massive money-laundering operations.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
BNB Drops Below $500, Extended Bearish Trend On The Horizon?
BNB has recently fallen below the critical $500 support mark, signaling the continuation of a bearish trend. This decline reflects increased selling pressure and growing bearish sentiment within the cryptocurrency market.
As BNB slips under this significant threshold, analysts and traders are closely watching for further downward movement, potentially targeting lower support levels. The breach of the $500 mark is a key indicator of ongoing market weakness, suggesting that BNB may face continued challenges in the near term.
With the help of technical indicators to provide comprehensive insights into potential future movements, key support levels to watch, and strategies for investors and traders to navigate the ongoing downturn, this article explores the bearish sentiment surrounding BNB’s price.
At the time of writing, BNB’s price was down by over 10%, trading at about $471, with a market valuation of more than $69 billion and a trading volume of more than $2 billion. In the last 24 hours, the market capitalization of BNB has dropped by 10.88%, while trading volume has increased by 37.43%.
Technical Indicators Highlight Sustained Bearish Market Conditions
The price of BNB on the 4-hour chart is actively bearish trading below the 100-day Simple Moving Average (SMA). As of the time of writing, the price has made a huge drop below the $500 support mark which has triggered more bearishness for the crypto asset.
With the formation of the 4-hour Moving Average Convergence Divergence (MACD), the price of BNB is set to face further decline as the MACD histograms are trending below the zero line with strong momentum. Also, the MACD line and signal line have sharply dropped and are trending below the zero line with a good spread.
On the 1-day chart, it can be observed that BNB is trading below the 100-day SMA and is attempting to drop the third bearish candlestick in a row with strong momentum. This development suggests that the price is still actively bearish and may continue to decline.
Lastly, the 1-day MACD signals a potential further decline in the price of BNB since the MACD histograms are trending below the zero line with strong momentum. Both the MACD line and the MACD signal line are also observed to be trending below zero after a cross below it.
What To Watch Next For BNB
Current analysis reveals that the price of BNB could be heading toward the $357 support level. If BNB’s price reaches the $357 support level and breaks below, it may continue to drop to test the $202 support level and potentially move on to challenge other lower levels if it breaches the $202 level.
However, should the crypto asset encounter a rejection at the $357 support level, it will begin to move upward toward the $500 level once again. If it moves above this level, it may continue to climb to test the $635 resistance level and potentially move on to test other higher levels if it breaches the $635 resistance level.
Featured image from Adobe Stock, chart from Tradingview.com
Market
Crypto Whales Boost Holdings of These 3 Altcoins
The first week of July has been a difficult one for the market. But amid the growing sell-offs, crypto whales loaded their wallets with some altcoins that some may term undervalued.
Whales are large investors, and their influence on price cannot be underestimated. Therefore, market participants may need to keep an eye on Dogecoin (DOGE), Optimism (OP), and Pepe (PEPE), as they are among the altcoins crypto whales bought this week.
Dogecoin (DOGE) Large Holders Overlook The Decline
Like other cryptocurrencies, the price of DOGE tumbled. Specifically, the value has dropped by 23.76% in the last seven days.
However, this did not stop crypto whales from buying more of the coin. BeInCrypto observes this after evaluating the Large Holders Inflow shown by IntoTheBlock.
This inflow shows strong buying activity by market participants who hold between 0.1% to 1% of the cryptocurrency. On Tuesday, July 2, the inflow was 61.88 million DOGE.
But one day later, the inflow reached 516.08 million, suggesting that whales were buying the dip. Currently, the figure has decreased to 215.90 million.
At an average price of $0.11, crypto whales bought $23.74 million worth of Dogecoin in the first week of July. This is a 175.44% increase from the holdings in the last week of June.
Optimism (OP) Whales Ignore the Unlocks, Bullish About the ETF
Second on this list is OP, the token of the layer-two blockchain built on Ethereum. This week, OP’s price has fallen by 27.82%. Apart from the broader market decline, OP’s decline can be linked to the series of token unlocks between July 1 and 5.
While the unlocks put selling pressure on the price, crypto whales decided to scoop the token at discount prices.
According to Santiment, whales hodling between 1 million to 10 million OP added to their balance in the first week of this month. As a result, this cohort now holds 11.27% of the total OP supply.
Read More: What Is Optimism?
The decision seems to be largely due to the upcoming Ethereum ETF approval. For most market participants, the official trading of the products may raise ETH prices.
Since ETH shares a strong correlation with OP, whales deem it fit to buy the token lower before the potential rally begins.
Whales Put Pepe (PEPE) At the Top of the Chain
A look at PEPE’s Large Holder Netflow shows a staggering 2237.18% increase in the last seven days. This means the crypto whales buying PEPE outpaced those selling it by the abovementioned ratio.
Despite intensifying their purchase, the accumulation has had little to no effect on PEPE’s price. At press time, PEPE trades at $0.0000078— the lowest price it has hit since May 4.
If these large investors continue to buy the token as the price dips, stability may eventually appear.
Read More: Pepe (PEPE) Price Prediction 2024/2025/2030
However, considering the current market condition, whale accumulation alone may not be enough to prevent prices from further declining. This is because Bitcoin (BTC) seems to be the crypto dragging the market back.
Should BTC fail to stop its correction, DOGE, OP, and PEPE may continue to face downward pressure. However, a rebound for the number one cryptocurrency may prevent another nosedive.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Indicators Point To Possible 7,500% Rally To $35
A crypto analyst has identified key indicators that point to a substantial rally for XRP, the native token of the XRP Ledger (XRPL). According to the analyst, XRP is poised to rebound from its bearish trends and soar to new all-time highs
XRP To Mirror 2017 Rally To New Highs
In an X (formerly Twitter) post in June, crypto analyst, Tylie Eric expressed bullish optimism about XRP, emphasizing the cryptocurrency’s potential for a major rally this year. He shared an XRP price chart depicting the cryptocurrency’s price movements from as early as 2014 to 2025.
Related Reading
Eric disclosed that XRP has met all the necessary requirements and conditions to support a potential bull rally to new highs. The analyst also revealed that XRP is completely prepared to continue with “wave 3 and wave 5” of the renowned Elliott Wave Theory.
The Elliott Wave Theory is a tool used to determine price movements in a cryptocurrency. The technical analysis is based on viewing long-term recurrent price patterns in a cryptocurrency.
In his post, Eric disclosed that XRP was currently displaying similar patterns and conditions to those seen during its bull rally in 2017. Earlier in 2017, XRP witnessed a massive price rally, which preceded its surge to new all-time highs of $3.84 in 2018.
Eric has suggested that XRP’s price action was displaying the same bullish patterns, as a result, he has projected a substantial price increase to $36.36 before the end of 2024. The analyst also revealed that XRP will have to witness a whopping 7,637.22% surge for it can reach the projected price target.
Despite being a cryptocurrency analyst, Eric is an avid supporter of the XRP cryptocurrency. The analyst has constantly made bullish predictions for the altcoin, anticipating potential rebounds from bearish sentiment. Moreover, the crypto analyst revealed in his earlier post that XRP’s price action was significantly “boring.” This could be attributed to the cryptocurrency’s recent downward spiral.
As of writing, the price of XRP is trading at $0.45, reflecting a 4.12% decrease in the past 24 hours and a 11.71% drop over the past month. The popular cryptocurrency has continually recorded steep declines since the beginning of June.
Previously, the cryptocurrency was consolidating slightly above $0.5, however now the cryptocurrency is on a major downward trend, triggered by market volatility and Ripple’s ongoing legal battle with the United States Securities and Exchange Commission (SEC).
Bullish Sentiment Rises
Despite its waning value, XRP’s bullish sentiment from crypto analysts continues to rise. A particular crypto analyst identified as ‘Egrag Crypto’ predicted that the altcoin was getting closer to the Fibonacci (Fib) 1.618. The analyst disclosed that this unexpected development could indicate possible areas for a price reversal or continuation in XRP.
Related Reading
Egrag Crypto also shared a price chart depicting XRP’s price actions from 2014 to 2024. In his post he emphasized that if history repeats itself XRP could potentially see a price surge to $27. The analyst has urged investors to remain prepared and optimistic about XRP’s projected surge to to $27.
Featured image created with Dall.E, chart from Tradingview.com
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