Some information about us
FED Unwillingly Pushed Bitcoin Up, Kraken Has Problems with the US Ministry of Finances due to Sanctions, 181 Mln USD in a Landfill - all that in our new release of crypto news!
On the day before FED's meeting on July 27th, the market froze awaiting the decision on the US key rate that would definitely have a strong effect on crypto. Then, the decision was announced - the rate was raised by 75 basis points to 2,25-2,5%. The FED representatives explained that raise with the good job market situation: lower unemployment rates and a growing number of jobs. However, inflation keeps rising: the FED connects it to the disrupted balance of supply and demand caused by the situation in Ukraine, the consequences of the pandemic, and growing prices on energy carriers.
Meanwhile, the rising rates have had a very positive impact on the Bitcoin rate and made the first crypto skyrocket. It managed to break the level of 23'000 USD dragging all the others with it, as usual; for instance, the ETH rate has reached the level of 1'500 USD. So far, it is hard to say how stable this crypto growth is going to be. The FED's rising key rate already gave a hand to Bitcoin this year when it made it grow in March, May, and June, but every time the rise was followed by a fall.
Back in 2019, the exchange had troubles because of a lawsuit filed against it and allegations of circumventing the US sanctions. It is no secret that this country's government loves to put sanctions on other countries for literally anything. Dozens of countries around the globe are blacklisted, and the US Ministry of Finances takes any help in circumventing these restrictions as a personal insult, so it keeps a close eye on preventing and cutting off any attempts.
But Kraken managed to settle the lawsuit in 2021. However, the break didn't last long: and now, the Department of the Office of Foreign Assets Control (OFAC) started another investigation against the exchange with similar allegations of helping Iran, Syria, Cuba, and other unwanted countries find a way around the restrictions. According to OFAC, some users from these countries had accounts with the Kraken platform which may result in a big fine for the company.
This year, the exchange leaders also voted against closing the accounts of Russian clients. Well, let's wait and see what the investigation comes to.
This wonderful story dates back to 2013 when James Howells from the UK happened to mistake one hard drive for another and threw away the one that had 7500 BTC on it. Since then, unlucky James has been haunted by the idea to find the lost device. Which is no wonder, 180+ mln USD are worth the effort.
As a result, Howells came up with a whole business plan worth 11 mln to clean and recycle around 100 tons of trash in a search for his precious harddrive. According to the developer, the process will take up to 3 years, will involve robots and AI, and in the end, the processed trash will be recycled.
However, the city services have been reluctant to support his project and have been rejecting his requests for over 10 years by now claiming that the search will cause damage to the environment. James says he's ready to go to all lengths and will go to court if the city authorities don't allow him to look for the Bitcoins he threw away.