Good morning. Here’s what’s happening:

Prices: The price of bitcoin fell to its lowest level in late June, below $29,700 before recovering some lost ground.

Insights Jarek Jakubcek is Binance’s head of law enforcement training. He trains law enforcement to be aware of global crypto scams.


Bitcoin Recovers $300K

Bitcoin’s Monday plunge to $29 769, its lowest price since June, was a far cry from the good times that followed Ripple’s partial victory over the SEC last week.

The largest cryptocurrency in terms of market capitalization has recovered some lost ground and is currently trading at $30,130. This is within the same range that it has been trading for most of the last month. Bitcoin soared above $31,700 on Thursday, after the U.S. District Court of the Southern District of New York ruled Ripple’s sale of XRP tokens through exchanges and algorithms did not qualify as investment contracts.

Analysts believe that bitcoin could continue to dip below this threshold, until the SEC approves one of the many spot bitcoin ETFs that financial giants including BlackRock filed last month. These filings sparked a dramatic increase in BTC, and other cryptos that were waiting for a catalyst to drive their prices.

The SEC is unlikely to act for several months given its slow pace in making previous decisions. The agency is gathering information on the proposals.

Edward Moya said this in a CoinDesk interview. He is a senior market analyst at Oanda. “People will not be as optimistic unless we receive a further update on the progress of this ETF in the States.”

He said: “There may be a lot more back and forth (before we get a firm signature from the SEC).

Ether, second-largest crypto by market capitalization, traded at $1,913, down nearly half a percentage point since Sunday. It was also well below its highs of last week, which were above $2,000 Some of the other major cryptos that also rose last week sagged Monday, before recovering slightly. XRP, the token for the Cardano platform of smart contracts, and ADA, its token, have recently fallen by 1.5% and 0.6% respectively. SOL, native cryptocurrency of the Solana Blockchain, has dropped more than 2.8%.

The Nasdaq Composite, the S&P 500 and other equity markets rose in response to encouraging earnings reported by major banks last week. These results showed that second quarter earnings were up 0.9% and 0.3% respectively. Bank of America’s and Goldman Sachs’ Q2 results will be announced on Tuesday and respectively Wednesday.

In an early Monday email, Moya noted that “small crypto companies are finding banks who can facilitate transactions. Customers Bancorp emerged as the victor from the collapse of Signature Bank and Silvergate Capital Corp.”

He added that “Bitcoin’s range between $29,500 to $31,500 could hold until we have a major cryptocurrency headline.”

The Biggest Gainers

Biggest Losers


Jarek Jakubcek’s Complex Work

Jarek Jakubcek is the head of Binance Law Enforcement Training and a former cryptocurrency expert in Europol Cybercrime Centre (EC3) Dark Web Team.

Jakubcek, who is based in Dubai, has global responsibilities, which include the Asia Pacific, where cryptocurrency retail adoption, but also bad actors, scams, and frauds, have increased.

He said that “Cryptocurrencies are a practical technology and criminals will abuse it because they find it convenient.”

Jakubcek trains law enforcement in the region to gather evidence and track down those behind these schemes. Often, they are the same criminals who operate in the traditional financial sector: scam centers throughout Southeast Asia.

We all know there are no high-profit guarantees. “But to people who are less financially savvy, this might sound reasonable,” explains he. “This is the reason it’s so important to promote cryptoliteracy and raise awareness about the potential risks associated with cryptocurrencies.”


Years Of Investigation

The law enforcement community has been investigating crypto-crimes for many years, and they have found great success in their operations thanks to the transparency of blockchain.

It is not only user-friendly for everyone but also for criminals. The activity is visible on the chain and isn’t hidden in logs of banks and shell companies.

It’s often more effective to trace wallets back to exchanges, and to request KYC information than it is to trace IP addresses to telcos due to the prevalence of VPNs.

Jakubcek works with law enforcement agencies from all over the world. However, his team sometimes encounters fraudulent requests. These are not always bad actors but private investigators who pose as police officers to obtain more information for their clients.

Jakubcek, a private investigator recalls that after Binance initially refused to provide customer data to an individual, he sent a second request, but using a fake domain.

Jakubcek explained that the domain was registered a day before the request. It was obvious that the private detective wanted to pretend that he wasn’t who he claimed to be.


Fake court order and political problems

Another thing that his team has had to deal with is fake court orders asking funds to be transferred.

He said, “We’re very fortunate to have a group of nearly 30 former law enforcement officers because we understand how requests for law enforcement should be written.”

Binance is a global company that operates in many markets around the world. This makes it difficult to avoid geo-politics.

Sometimes, law enforcement requests may conflict with the national interests of different countries. In 2021 the United States announced sanctions against Hong Kong’s key political leaders and law enforcement officials for their role in undermining Hong Kong autonomy and implementing a controversial national security law.

Binance has not yet given a clear answer to the question of how it will balance a legitimate request for law enforcement under local regulations with competing global interest.

“There are certain jurisdictions that we must be sensitive to; we also need to take into account the nature of the crimes and the people who will be the subject of an investigation.” “We will not respond to some requests if they are from individuals of sensitive nationality,” he explained.

Jakubcek claims that from Hong Kong, 90% of the requests so far are “pure fraud related.”

He said, “I don’t recall any politically sensitive requests from Hong Kong.” “I don’t say there haven’t been, but I can’t recall it in my career as an investigator in APAC.”


Important events.


CoinDesk TV

If you haven’t seen it yet, here is the latest episode of “First Mover” on CoinDesk TV.

In the most recent episode of “The Hash”, it tackled hot-button topics such as XRP surpassing BNB to become the fourth largest digital asset in terms of market capitalization after Ripple’s partial victory in court. The panel discussed what the decision could mean for future crypto regulation. Separately the group discussed Alex Mashinsky’s bail, which was set by a court at $40 million after his arrest. The Hash also discussed new details about what luxury fashion label Gucci is doing with NFTs.

Don’t expect a flood of spot-Bitcoin exchange traded funds anytime soon: Experts: BlackRock’s recent application for a Bitcoin ETF raised hopes that SEC will approve an instrument considered to be key to crypto’s growth. CoinDesk contacted a number of market watchers who said that there are still several roadblocks to overcome.

BNB token is being heavily shorted. Perpetual futures show: The funding rates of perpetual futures linked to BNB have been the most negative for nearly three months.

Due to non-compliance, Binance terminates its partnership with Argentina’s Soccer Association: The Argentine soccer team was the reigning champion of the world.

SEC Gensler Disappointed’ with Part of Ripple’s XRP Judgment, Still Assessing the Opinion: Ripple won a partial victory last week in its battle with the SEC. A court ruled that sales on exchanges or programmatic sales do not violate federal securities laws.

James Rubin is the editor.