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Showing posts with label crypto. Show all posts
Showing posts with label crypto. Show all posts

Thursday, October 10, 2024

Corruption is Everywhere > Especially in Crypto Markets

 

U.S. charges 4 crypto companies,

14 individuals with fraud



Four cryptocurrency companies and 14 individuals have been charged in what U.S. prosecutors on Wednesday called the first criminal prosecution of financial services firms for market manipulation and sham trading in the crypto sector.

Federal prosecutors in Boston charged the firms Gotbit, ZM Quant, CLS Global and MyTrade and their leaders and employees in a case that also involved charges of people overseas. Five people have agreed to plead guilty or have already done so.

Prosecutors accused the defendants of engaging in the crypto equivalent of stock market “pump and dump” schemes that involved sham trades to artificially inflate the trading volume of various cryptocurrency tokens before selling them off.

Prosecutors said the largest of the companies involved in the various schemes, Saitama, at one point came to have a market value of $7.5 billion, after its leadership began manipulating the market for its tokens and secretly selling them.

Its chief executive, Manpreet Kohli, was arrested on Monday in the United Kingdom. Five other current or former employees were also charged, and three have pleaded guilty.

Click to play video: 'Sam Bankman-Fried sentenced to 25 years in prison for $8B fraud related to FTX cryptocurrency exchange'
1:39
Sam Bankman-Fried sentenced to 25 years in prison for $8B fraud related to FTX cryptocurrency exchange

Others charged were Aleksei Andiunin, the chief executive of Gotbit, a cryptocurrency “market maker” who lived in Russia and Portugal. He was charged along with two of his company’s employees in Russia and could not be reached for comment.

Prosecutors said that from 2018 to 2024, Gotbit engaged in a form of market manipulation called “wash trading” on behalf of several cryptocurrency clients, earning tens of millions of dollars at the expense of investors. In wash trading, a financial asset is bought and sold for the express purpose of misleading the market.

Prosecutors cited a 2019 interview Andiunin gave in a YouTube view in which he detailed how his business had developed a code to artificially inflate trading volume for tokens for the purposes of getting them listed on crypto exchanges.



Three other individuals residing overseas who worked at cryptocurrency “market makers” that prosecutors said advertised market manipulation services to clients were also charged.

They are Liue Zhou, the Chinese founder of MyTrade, who according to court papers has agreed to plead guilty; Baijun Ou of Hong Kong, who worked at ZM Quant, and Andrey Zhorzhes of the United Arab Emirates, an employee of CLS Global.

They could not be immediately reached for comment.

Others charged were Michael Thompson of Virginia, who worked at a cryptocurrency company called VVZZN founded by a former Saitama employee, and Bradley Beatty of Florida, who prosecutors said fraudulently promoted his crypto company, Lillian Finance.

(Reporting by Nate Raymond in Boston; Editing by Leslie Adler and David Gregorio)

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Saturday, August 12, 2023

Corruption is Everywhere > Zelensky fires all Recruitment Commissars; Colombians arrested for murder of Ecuador politician; Bankman-Fried's bail revoked; 160 Medical Execs in China corruption probe

 ..

Corruption in Ukraine? Can you even imagine? Pfft!



Ukraine's Zelensky fires military recruitment officials

over corruption allegations

By Patrick Hilsman
 
Ukrainian President Volodymyr Zelensky announced Friday that he has fired officials responsible for military recruitment
amidst corruption allegations in recruitment practices. File Photo by Ukrainian President Press Office/UPI


Aug. 11 (UPI) -- Ukrainian President Volodymyr Zelensky announced Friday that military officials in charge of recruitment would be replaced with wounded war veterans after allegations of corruption in recruitment.

On Friday, the National Security and Defense Council met to assess the results of an investigation into corruption allegations. The council said that combat officers would have to be checked by the SBU, Ukraine's intelligence service, to take positions on military commissions.

"The Prosecutor General's Office, together with the NACP and the SBI [State Bureau of Investigation], is still recommended to take additional measures to counteract the commission of corruption offenses," the Presidential Office said of the meeting.

Last week Zelensky denounced corruption after a military official charged with recruitment in the Odessa administrative region, Yevhen Borisov, was found to have a $5 million in assets in Spain.



Borisov's mother allegedly registered a residence worth at least $3 million and a Mercedes worth about $100,000, along with other properties.

"Corruption in military recruiting will be eliminated. The heads of all regional recruitment centers will be fired and replaced by brave warriors who have lost their health on the frontlines but maintained their dignity. The decision was approved at today's NSDC [National Security and Defense Council] meeting," Zelensky tweeted Friday.

"In total, there are already 112 criminal proceedings against officials of the territorial recruitment centers, 33 suspects. Regional, city and district "military commissars," employees of the military medical commissions, other official's abuses in different regions: Donetsk, Poltava, Vinnytsia, Odessa, Kyiv, Lviv. Some took cash, some took cryptocurrency -- that's the only difference," Zelensky said in a short clip posted along with his tweet.

"The cynicism is the same everywhere. Illegal enrichment, legalization of illegally obtained funds, illegal benefit, illegal transportation of personas liable for military service across the border," Zelensky continued.

Separately, an investigation by the Ukrainian website ZN.ua found that the Ministry of Defense had significantly overpaid for military clothing, including summer camouflage and winter coats, in one case paying $421,000 for jackets that should have cost about $142,000.

Someone's dyslexic, I guess!

"Our decisions are the following. We are dismissing all regional 'military commissars.' This system should be run by people who know exactly what war is and why cynicism and bribery during war is treason," Zelensky said.

"Instead, soldiers who have experienced the front or who cannot be in the trenches because they have lost their health, lost their limbs, but have preserved their dignity and do not have cynicism, are the ones who can be entrusted with this system of recruitment," Zelensky said.

That sounds like a great idea, but I think the original commissars are the ones who really know that war is about making money whatever the cost to the military or country.





Colombian nationals arrested after Ecuadorian presidential candidate

assassinated

By Darryl Coote
 
Ecuador's presidential candidate and former legislator Fernando Villavicencio was shot dead while he exited a campaign event in a central sector of Quito. Minister of the Interior Juan Zapata confirmed the crime and claimed that the attack was perpetrated by hitmen who also injured other people. Photo by Jose Jacome/EPA-EFE


Aug. 9 (UPI) -Ecuadorian presidential candidate Fernando Villavicencio was shot and killed Wednesday afternoon during a political rally in the country's capital of Quito just days before the election.

Late Thursday, Ecuador's interior minister, Juan Zapata, announced that six suspects had been arrested in connection to the killing, saying all were Colombian nationals, according to the New York Times.

The six were arrested in Quito soon after Villavicencio's assassination, authorities said.

The assassination was confirmed by Ecuadorian President Guillermo Lasso, who called a Security Cabinet Meeting in response.

Video of the shooting posted online shows the 59-year-old former journalist being escorted outside a high school into a white pickup truck. As he enters the vehicle, around a dozen gun shots are heard in footage that has not been verified by UPI.

Carlos Figueroa, a close friend of Villavicencio and present during the shooting, said in a video posted online that was reported on by local TV network Ecuavisa that Villavicencio was shot in the head three times.

"Outraged and shocked by the assassination of presidential candidate Fernando Villavicencio," Lasso said in a statement. "For his memory and for his fight, I assure you that this crime will not go unpunished."

The president seemingly placed blame for the shooting on "organized crime," stating "the full weight of the law is going to fall on them."

A suspect badly injured during a shootout with police was apprehended, but died from his injuries, the attorney general's office said in a statement published to X, the social media platform formerly known as Twitter.

"An ambulance from the fire department confirmed his death," the statement said. "Police proceeds with the removal of the cadaver."

At least nine people have been reported injured in the attack, including a National Assembly candidate and two police officers, the attorney general's office said, adding the shooting was under investigation.

Villavicencio, president of the center-right Movimiento Construye party, was assassinated less than two weeks before the general election scheduled for Aug. 20.

His death also comes amid a swath of political violence that has rocked the country.

Late last month, Agustin Intriago, the mayor of Ecuador's central coast port city of Manta, was shot and killed in an attack that Lasso has also blamed on organized crime. Ariana Chancay was also killed, seemingly as a collateral victim.

In February, Omar Menendez, a candidate for the mayor of Puerto Lopez, was also assassinated.

Following Intriago's assassination, Movimiento Construye said there was discussion on whether to suspend Villavicencio's campaign for a few days or beef up security, but the party said their president was adamant to keep going.

"Fernando Villavicencio courageously confronted the mafias and his voice did not tremble to denounce his connections with politics," the party said in a statement. "We demand responses from the state, from justice, so that Fernando's murder does not go unpunished."

Villavicencio was one of eight candidates running for president. Following his death, at least three candidates -- Yaku Perez Guartambel, Bolivar Armijos and Jan Topic -- announced the suspensions of their campaign activities.

"This is an attack against the country, democracy and peace of all Ecuadorians," presidential candidate Daniel Noboa Azin said in a statement on X.

It certainly leaves no doubt as to who is in charge in Ecuador. 




U.S. judge revokes Sam Bankman-Fried's bail, saying

FTX founder tampered with witnesses


Prosecutors allege he shared ex-girlfriend's writings with the New York Times


The Associated Press · Posted: Aug 11, 2023 12:40 PM PDT | Last Updated: August 11


Sam Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, arrives at a courthouse in New York City on Friday. (Eduardo Munoz/Reuters)

FTX founder Sam Bankman-Fried left a federal courtroom in handcuffs Friday after a judge revoked his bail after concluding that the fallen cryptocurrency wiz had repeatedly tried to influence witnesses against him.

Bankman-Fried looked down at his hands as judge Lewis A. Kaplan explained at length why he believed the California man had repeatedly pushed the boundaries of his $250 million US bail package to a point that Kaplan could no longer ensure the protection of the community, including prosecutors' witnesses, unless the 31-year-old was behind bars.

At the conclusion of the hearing, Bankman-Fried took off his suit jacket and tie and turned his watch and other personal belongings over to his lawyers. The clanging of handcuffs could be heard as his hands were cuffed in front of him. He was then led out of the courtroom by U.S. marshals.

It was a spectacular fall for a man once viewed by many as a savvy crypto visionary who had testified before Congress and hired celebrities including Larry David, Tom Brady and Stephen Curry to promote his businesses.

Kaplan said there was probable cause to believe Bankman-Fried had tried to "tamper with witnesses at least twice" since his December arrest, most recently by showing a journalist the private writings of a former girlfriend and key witness against him and in January when he reached out to FTX's general counsel with an encrypted communication.


Bankman-Fried was arrested on charges that he defrauded investors in his businesses and illegally diverted
millions of dollars' worth of cryptocurrency from customers using his FTX exchange. (Leon Neal/Getty Images)


The judge said he concluded there was a probability that Bankman-Fried had tried to influence both anticipated trial witnesses "and quite likely others whose names we don't even know" to get them to "back off, to have them hedge their cooperation with the government."

Bankman-Fried's lawyers insisted that their client's motives were innocent and he shouldn't be jailed for trying to protect his reputation against a barrage of unfavourable news stories.

Attorney Mark Cohen asked the judge to suspend his incarceration order for an immediate appeal, but Kaplan rejected the request. Within an hour, defence lawyers had filed a notice of appeal.

Correspondence with New York Times


Bankman-Fried has been under house arrest at his parents' home in Palo Alto, Calif., since his December extradition from the Bahamas on charges that he defrauded investors in his businesses and illegally diverted millions of dollars' worth of cryptocurrency from customers using his FTX exchange.

His bail package severely restricts his internet and phone usage.

The judge noted that the strict rules did not stop him from reaching out in January to a top FTX lawyer, saying he "would really love to reconnect and see if there's a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other."

At a February hearing, Kaplan said the communication "suggests to me that maybe he has committed or attempted to commit a federal felony while on release."


U.S. district Judge Lewis Kaplan, left, and Bankman-Fried are seen during a hearing in New York City on Friday
in this courtroom sketch. (Jane Rosenberg/Reuters)


On Friday, Kaplan said he was rejecting defence claims that the communication was benign.

Instead, he said, it seems to be an invitation for the FTX general counsel "to get together with Bankman-Fried" so that their recollections "are on the same page."

Two weeks ago, prosecutors surprised Bankman-Fried's lawyers by demanding his incarceration, saying he violated those rules by giving the New York Times the private writings of Caroline Ellison, his former girlfriend and the ex-CEO of Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses.

The New York times building is seen in February 2018. (Mark Lennihan/Associated Press)


Prosecutors maintained he was trying to sully her reputation and influence prospective jurors who might be summoned for his October trial by sharing deep thoughts about her job and the romantic relationship she had with Bankman-Fried.

The judge said Friday that the excerpts of Ellison's communications that Bankman-Fried had shared with a reporter were the kinds of things that somebody who'd been in a relationship with somebody "would be very unlikely to share with anybody, lest The New York Times, except to hurt, discredit, and frighten the subject of the material."

Ellison pleaded guilty in December to criminal charges carrying a potential penalty of 110 years in prison. She has agreed to testify against Bankman-Fried as part of a deal that could lead to a more lenient sentence.

Bankman-Fried's lawyers argued he probably failed in a quest to defend his reputation because the article cast Ellison in a sympathetic light and that prosecutors exaggerated the role Bankman-Fried had in the article.

They also said prosecutors were trying to get their client locked up by offering evidence consisting of "innuendo, speculation and scant facts."

David McCraw, a lawyer for the Times, had written to the judge, noting the First Amendment implications of any blanket gag order, as well as public interest in Ellison and her cryptocurrency trading firm.

Ellison confessed to a central role in a scheme defrauding investors of billions of dollars that went undetected, McCraw said.

"It is not surprising that the public wants to know more about who she is and what she did and that news organizations would seek to provide to the public timely, pertinent and fairly reported information about her, as the Times did in its story," McCraw said.




China corruption watchdog nabs 160 hospital bosses in healthcare blitz


‘More heads to roll’ as investigations continue into sector given over US$15.2 billion

in public funds during Covid-19


Health spending is among the ‘three burdens’ on China’s ageing population and

one of the largest sources of public grievance

William Zheng, SCMP
Published: 2:00pm, 12 Aug, 2023

More than 160 hospital bosses and secretaries across China have been netted in an anti-corruption drive,
with more heads expected to roll. Photo: Shutterstock


Chinese anti-corruption investigators have netted more than 160 hospital bosses this year, as Beijing targets the lucrative medical sector, which received public funding worth billions of US dollars under Covid-19.

Sources and observers expect more heads to roll in the sector, which has been one of the largest sources of public grievances over high costs and rampant corruption.

State media reports said more than 150 hospital bosses and secretaries have been identified in the targeted campaign that began earlier this year, but tallies by the South China Morning Post suggest the total may have reached 168 this week.

It was also reported last month that at least two senior pharmaceutical company executives – Winning Health Technology Group chairman Zhou Wei and Fan Zhihe, chairman of Shanghai Serum Bio-Technology – were under investigation for alleged corruption.

Corruption in Big Pharma - say it ain't so! Pfft!

The sector-specific anti-corruption campaign kicked off just months after China emerged from its three-year zero-Covid strategy, but stepped up a gear as a July 30 deadline neared for people to hand themselves over in exchange for leniency.

Data released in March by the National Health Commission showed health facilities across the country have received more than 110 billion yuan (US$15.2 billion) since 2020.

A source – who asked for anonymity because of the matter’s sensitivity – said the campaign to rid the sector of systemic corruption will continue into 2024.

“The campaign will continue for another 10 months and the investigators will report to the leadership next June. New rules and regulations will be introduced based on the results of the investigation,” the source said.

“So, more heads of health commissions, hospitals and medical suppliers will roll in the coming months.”

The urgency of the anti-corruption campaign was reflected in a notice issued last month by the Guangdong Health Commission, which gave major hospitals and medical bodies in the southern province two days to review an audit report of their finances.

“You must provide feedback officially even if you have no objections,” the notice said.

A Guangdong health official, who asked not to be identified because he is not authorised to speak publicly, said authorities had promised leniency for hospital bosses and officials who surrendered before August.

Cross-agency collaboration in the campaign underlines the clear mandate from the country’s leadership for the anti-corruption drive.

On July 15, the finance ministry issued a joint notice with the National Medical Insurance Administration ordering spot checks of local medical funds and a “thorough investigation” of any violations.

About a week later, the National Health Commission announced a year-long “rectification campaign” for the medical sector in a video conference held jointly with the education and public security ministries, as well as the General Audit Office.

Further political momentum was injected into the campaign on July 28, when China’s top anti-corruption agency – the party’s Central Commission for Discipline Inspection (CCDI) – held a video conference calling on inspectors and supervisors to double their efforts.

The crackdown was “essential in promoting the healthy China strategy by Xi Jinping”, the watchdog said.

Nearly 300 billion yuan evaporated from the medical sector’s market value in the six trading days after the CCDI meeting, according to Wind, a financial data provider in China.




Saturday, February 19, 2022

Bits and Bites from Around the World > Teen linked Minecraft to terrorism; Preschool blackface - seemed like a good idea at the time; Crypto - VD

..

Russian teen sentenced to 5 years in prison for 'Minecraft'-

linked terrorism


Nikita Uvarov planned to blow up a security service building

after practicing on video game

By Ailis Halligan

Russian teen sentenced to 5 years in prison for 'Minecraft'-linked terrorism
Police cars outside the Federal Security Service (FSB) building on Lubyanka Square in Moscow.
© Sputnik / Evgeny Odinokov


A Russian teenager has been sentenced to five years in prison after planning to blow up a local headquarters of Russia’s Federal Security Service (FSB), and first practicing on a video game.

According to the Investigative Committee, 16-year-old student Nikita Uvarov planned to destroy the building on Minecraft, a popular world-building game, and then replicate the measure in real life. Uvarov, who comes from the small Siberian town of Kansk, was sentenced on Thursday morning, and was also told to pay a 30,000 ruble ($400) fine.

The investigators said that the teenager and two of his friends had been learning how to manufacture explosives since 2019, and had practiced throwing Molotov cocktails on abandoned land in Kansk. It was also alleged that they studied extremist literature and watched videos with instructions for making explosives, and successfully made four bombs.

The Eastern District Military Court found Uvarov guilty of charges of terrorism, namely, undergoing training to carry out criminal activity, his lawyer Pavel Chikov announced.

Chikov heads Agora, an organization that represents those who may be victims of suspected human rights abuses by the authorities. The group is classified in Russia as a ‘foreign agent’ due to receiving funding from abroad.

According to the investigators, Uvarov and two other males used the video game to construct the buildings of the Kansk police department and the city’s FSB division, and plotted to virtually blow them up. Russian newspaper Kommersant reported that the teenagers used the gaming world to demonstrate how a real explosion of the buildings would take place.

While being taken into custody following the court decision, Uvarov cried, “I'm a child, I’m not a terrorist,” it was reported. His co-defendants were exempted from criminal liability for “facilitating the investigation.”

Uvarov was first detained back in 2020 along with two school friends, Denis Mikhaylenko and Bogdan Andreev, for crimes committed in their hometown of Kansk, including flyer distribution and the use of fireworks.

Specifically, the trio was arrested for distributing posters backing the release of self-described anarchist and mathematician Azat Miftakhov, one of which appeared on the local FSB building. Miftakhov was arrested in 2019 for allegedly attacking the Moscow offices of the ruling political party United Russia.

After the schoolboys’ detention, law enforcement officers were able to gain access to their online communications and found details of how they would construct virtual buildings. Authorities also uncovered criticisms of the FSB and discussions about anarchism and pyrotechnics. This is also where investigators found plans to blow up buildings in the Minecraft computer game, the Baza Telegram channel reported.




Preschool shuts down after forcing toddlers to wear ‘blackface’ masks


A peculiar classroom activity meant to celebrate Black History Month

triggered outrage among parents


A Massachusetts preschool is closing its doors indefinitely after a class assignment saw children don a form of ‘blackface’ to mark Black History Month, with the facility issuing a lengthy apology to irate parents amid the controversy. 

In a statement shared online late last week, the ICKids preschool in Newtown, Massachusetts said a teacher at the school had “carried out an activity that involved black mask/black face,” and that a parent later complained that the assignment was “offensive.” 

While the school noted that the staffer in question was fired over the incident, it added, somewhat cryptically, “Considering of protests [sic] happening at the center that will put the children at risk… we are closing the ICKids daycare at this time.” 


The preschool did not elaborate on what the controversial ‘blackface’ activity entailed, however, a Facebook post by a self-described relative of a student there shared a photo taken in the classroom, in which children are seen with what appear to be paper plates with black faces painted on them. One little girl is seen holding a plate to her face as a mask. 

“My cousin sent me a picture of… her child’s daycare in the town of Newton, Ma. This is how they decided to celebrate Black history month, by having the students make Black Face,” the family member wrote alongside the photo.

Nadirah Pierce, the mother of a student at the Newton school, told a local NBC affiliate the assignment was “unacceptable,” adding “I don’t really understand the concept of this project.”

It's very likely that the staffer didn't understand the concept either. Much like Justin Trudeau when he was an elementary school teacher.

The mother was also critical of the school’s initial apology, which stated: “To all who are offended, we sincerely apologize for what happened with one of our classroom activities: blackface. 

“Unfortunately we didn’t do enough research on black history and carried out a wrong activity. We are sorry about it and we mean it!” the original statement went on. Pierce described that missive as “empty,” and said the lengthier mea culpa posted to Facebook was still “disheartening.”

However, while the Newton school said it would be shutting down for an unspecified period of time, it did suggest it could someday resume operations, stating “In the event that we reopen our doors all staff will be trained in Diversity” and that “multicultural issues in child care and other mandated professional development will be done continuously through the year.”




I have to agree with him...


Billionaire compares crypto to ‘venereal disease’


Berkshire Hathaway Vice Chairman Charlie Munger wants virtual currency banned


© Getty Images / Julian Popov / EyeEm


Charlie Munger, the longtime business partner of Warren Buffett, has ripped cryptocurrencies, likening them to a sexually transmitted disease. In a comment that went viral, the veteran investor also called for virtual currencies to be banned.

“I certainly didn’t invest in crypto. I’m proud of the fact I’ve avoided it. It’s like a venereal disease or something. I just regard it as beneath contempt,” Munger said at a shareholder’s Q&A session at the annual meeting for LA-based newspaper company, Daily Journal Corp, where he serves as chairman.

The 98-year-old billionaire investor added that he “admire[s] the Chinese for banning it.”

The news, first reported by Bloomberg, comes months after Berkshire Hathaway bought $1 billion worth of stock in a digital bank that focuses on crypto. The SEC filing submitted earlier this week confirmed the holding’s crypto investments into Nubank, a digital bank based in Brazil.

Last December, Nubank raised $2.6 billion in its New York IPO, valuing the fintech firm at over $40 billion.

Munger and Buffett have been long-standing critics of cryptocurrencies. Buffett has previously derided Bitcoin for being an asset that “does not create anything,” calling it “rat poison” and saying that crypto is nothing more than a “delusion that attracts charlatans.”

Exactly! And blockchain is a horrendous waste of power that could be used for something useful.

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Thursday, November 18, 2021

Economics > Inflation Inflating; China's Wealth Surpasses the USA; EU Car Sales Affected by Chip Shortage; Billions in Crypto Lost

..

US inflation crisis deepens as wholesale prices soar

9 Nov, 2021 20:33

Fuel costs were among the top contributors to record US wholesale price increases in October.
© Reuters / Lucy Nicholson


US wholesale prices continued to balloon at the fastest rate on record in October, portending further pressure on household budgets as rising costs ripple through the world’s largest economy.

The producer price index (PPI) last month climbed 8.6% from a year earlier as energy costs jumped, the US Bureau of Labor Statistics said on Tuesday. Excluding food, energy and trade, the index climbed 6.2% on year.

PPI is a key measure of US inflation, as increases in the prices that producers pay for goods and services tend to be passed on to consumers – at least to the extent that the market will bear. Consumer prices rose at an annual pace of 5.4% in September, the highest rate in 13 years.

October’s 8.6% jump in PPI on an annual basis matched the all-time high set in September. Prices increased by 0.6% from the previous month, following a 0.5% advance in September, the government said. Energy costs surged 4.8% on month, rising at eight times the rate of the overall index. 

After rising at an annual rate of less than 1% in each of the final three months of 2020, PPI began to accelerate. The index rose 1.6% in January, the month that President Joe Biden took office, then nearly doubled in February and continued to gain steam throughout the year, exceeding 7% from May through October.

Biden has tried to downplay the inflation crisis as a “transitory” phenomenon amid the US economic recovery from the Covid-19 pandemic. Left-wing media outlet MSNBC on Monday argued that the current inflationary trend is being overblown and is actually a “good thing” because it reflects a strong economy.

Biden’s Treasury secretary, Janet Yellen, has said that prices will stabilize by the end of this year, but Goldman Sachs economists warned on Sunday that “the inflation overshoot will likely get worse before it gets better.” Inflation metrics will remain “quite high” for much of 2022, the bank said after previously predicting a quick end to the crisis.

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China overtakes US in global wealth race

15 Nov, 2021 17:58

FILE PHOTO. ©  Reuters / Dado Ruvic


China has overtaken the US as the nation which has amassed the biggest net worth as global wealth surges, a fresh report by McKinsey & Co suggests.

China’s wealth skyrocketed over the past two decades, the consulting company said according to Bloomberg, explaining that its net worth increased by a whopping 17 times from $7 trillion in 2000 to $120 trillion in 2020.

The nation accounted for about one third of the global net worth increase over that period. In 2000, China joined the World Trade Organization, which sped up its economic ascent. 

The US saw its wealth double over the same time period. Washington had to give way to Beijing on the list of top 10 wealthiest nations since its net worth only amounted to $90 trillion in 2020, McKinsey says. 

In both countries, more than two thirds of the amassed wealth sits in the pockets of the richest 10% of households, the report said, adding that this share has been increasing.

In total, global wealth reached $514 trillion in 2020, up from $156 trillion in 2000.

Some 68% of this wealth is stored in real estate, McKinsey said, adding that its fast growth surpassed the increase of the world’s GDP over the same period. The global wealth increase has been prompted by ballooning property prices, the company said, warning that surging real estate values might be unsustainable. 

High prices might make it unaffordable for many people to buy residential property, McKinsey said, adding that such a situation could lead to a fresh financial crisis similar to that of 2008, which was triggered by the US housing bubble burst. This time, it could affect China as well due to the debt owed by its property developers. 

A collapse of asset prices could make as much as one third of the global wealth disappear, the consultancy company said.

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Oil price eases on move from world’s largest importer

18 Nov, 2021 09:56

© Getty Images / Artinun Prekmoung / EyeEm


The world’s biggest oil importer, China, is working on a release of crude from strategic storages, Beijing’s reserve bureau said on Thursday – a day after Washington’s suggested they jointly tap reserves to ease prices.

“We are carrying out the work of releasing crude oil reserves. And for any details related to the releasing, we will put out a statement on our website,” China’s National Food and Strategic Reserves Administration stated. The regulator did not comment on the connection between this decision and Wednesday’s suggestion from US President Joe Biden regarding the joint release of crude to rein in prices.

Nice to see these two countries showing what can be done when they cooperate!

Beijing held a public auction of state crude reserves with a group of refiners in September, but did so in order to ease energy prices at home. In addition to China, the United States asked a number of other major crude consumers to make a coordinated release of reserves, including Japan, India, and South Korea. Officials in Tokyo and Seoul signaled that their respective countries were not legally allowed to tap reserves to lower prices, however.

Oil prices further slipped on China’s upcoming crude release and Washington’s proposal to near six-week lows on Thursday morning, easing further after reaching seven-year-highs in mid-October. Global benchmark Brent crude lost 41 cents, or 0.5%, to $79.87 a barrel by 07:12 GMT, after earlier plunging to $79.60 – its lowest price since October 7. US benchmark West Texas Intermediate dropped 70 cents, or 0.9%, to $77.66 a barrel, earlier falling to $77.40 – also a figure not seen since early last month.

The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) recently said the oil supply was starting to catch up with the demand, as OPEC and allied producers were sticking to the plan to boost output by 400,000 barrels per day every month. Washington has repeatedly asked OPEC to pump more, but the group refused, so as not to flood the market with supply.

Or, lower the price!




Chip shortages take major toll on European car industry

18 Nov, 2021 19:38

© Getty Images / deepblue4you


Car sales across Europe plunged to their lowest level on record in October, the European Automobile Manufacturers’ Association (ACEA) said on Thursday.

Registrations of new vehicles dropped 29% to 798,693 cars, with total sales for the first ten months of 2021 a mere 2.7% higher than for the same period in 2020.

The drop comes amid lingering semiconductor supply shortages, triggered by renewed outbreaks of Covid-19 in Southeast Asia and resulting in manufacturing delays, as well as port closures. Despite the recent drawbacks, carmakers say the chip crunch is finally showing signs of easing, but it will continue to some extent well into next year.

“We’re getting by. We’re trying to deal with it. I hope we’re through the worst,” Herbert Diess, CEO of Volkswagen – the EU’s biggest car manufacturer – said at a conference in Berlin earlier this week.

Volkswagen saw a 42% decline in deliveries in October compared to the same time last year, the worst among European manufacturers, while Fiat and Peugeot producer automaker Stellantis saw a 32% drop.

Given the current figures, market researchers suggest annual European car sales for 2021 are likely to miss even last year’s pandemic-affected levels, when global sales plunged nearly 15 percent.




IMHO - crypto should be illegal. This is just one of the reasons why:


‘Billions’ lost through hacks of crypto lending platforms

18 Nov, 2021 15:00

© Getty Images


New research by blockchain analytics firm Elliptic showed that fraud and theft at decentralized finance platforms have led to $10.5 billion in losses so far this year.

According to the report, published on Thursday, cash has been pouring into the so-called DeFi platforms, reflecting the explosive interest in cryptocurrencies. DeFi platforms allow users to lend, borrow and save (usually in crypto) while bypassing traditional gatekeepers of finance such as banks. The technology offers cheaper and more efficient access to financial services, supporters say.

Data by sector tracker DeFi Pulse shows that cryptocurrency worth $86 billion is currently stored on DeFi platforms, compared with some $12 billion a year ago.

However, the explosive DeFi growth came along with booming crime in the mostly unregulated sector, Elliptic said. Users have suffered over $12 billion in losses through crime at DeFi apps, lending platforms and exchanges since 2020, with the majority of losses coming in 2021 alone.

Those losses were mainly attributed to bug and code flaws, as well as a hacking technique that involves exploiting loopholes in how the DeFi service operates.

“Decentralized apps are designed to be trustless in that they eliminate any third-party control of users’ funds,” said Tom Robinson, chief scientist at Elliptic. “But you must still trust that the creators of the protocol have not made a coding or design mistake that could lead to a loss of funds,” he added.

Major DeFi platforms say they take measures to bolster security that range from hiring external firms to audit code for vulnerabilities to maintaining keys and passwords needed to access user wallets in secure environments.

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Tuesday, July 27, 2021

Corruption is Everywhere > Mining Crypto in Russian Metro; Buying ICU Beds in Free Hospital in Lima; Presidential Coup; Vatican Cardinal $412 Million

..

Two engineers for Russian Metro system under investigation after

covertly stealing electricity to mine cryptocurrency at work

22 Jul, 2021 15:34

© Global Look Press / Michael Gruber

The chief engineer of a Russian Metro system has handed in his resignation after being caught using the subway’s electricity grid substation to mine for bitcoin, consuming thousands of dollars of energy at the company’s expense.

That’s according to MUP Metroelectrotrans, the company that powers the Kazan Metro. Kazan is the capital of Tatarstan, a city around 800km (500 miles) east of Moscow.

The resignation comes after a report on Thursday from the Tatarstan Investigative Committee, which revealed that it had opened a criminal case against two employees of the Metro for abuse of official powers. They are suspected of unauthorized installation of cryptocurrency mining equipment at a power substation, consuming electricity worth 352,000 rubles ($4,700).

They have both admitted to the crime, it was reported.

Cryptocurrency mining uses electricity and high-powered computers to solve computational math problems. The solutions are so complex that they are impossible to be solved by hand and would even be difficult for regular computers to successfully complete.

Once a problem is solved, the computer owner is rewarded with a cryptocurrency coin, such as bitcoin. The two Kazan Metro employees were found to be stealing electricity for their high-powered devices, and they, therefore, could have potentially made a lot of money.

While bitcoin is not legal tender in Russia, a bill signed by President Vladimir Putin last summer allowed for cryptocurrency assets to be counted on a par with physical assets, enabling Russian citizens to legally own virtual money from the start of 2021. Before then, currencies such as bitcoin were in a legal ‘grey zone,’ having been neither legalized nor prohibited.




$21,000 per bed: State hospital workers arrested in Peru

for charging desperate Covid patients to access ICU

22 Jul, 2021 10:55

© REUTERS/Sebastian Castaneda


Nine people have been arrested in Lima for having allegedly illegally profited from patients suffering from the deadly coronavirus. The state hospital workers are suspected of selling access to intensive care unit (ICU) beds.

Arrests have been made following a raid on Guillermo Almenara Irigoyen public hospital, in the Peruvian capital, on Wednesday, local police said. According to a prosecutor, administrators of the hospital that provides free care are among the alleged criminal network that illegally charged their seriously ill patients, local media reports.

There are 80 beds in the hospital’s ICU, and many patients have had to be added to the unit’s long waiting list due to a lack of capacity. However, in a suspected scam scheme, the family of people severely ill with Covid have allegedly been asked to pay as much as 82,000 soles (around $20,800) to gain access to an ICU bed. A patient’s relative tipped off the police after making the payment to skip the line for a family member in need of urgent care. The patient, who had been the 20th on the waiting list, had not been transferred to the ICU even after his relative paid the money, and subsequently died.

Speaking to the press following the arrests, Peruvian Health Minister Oscar Ugarte called the case “totally reprehensible” and said no one would get away with it.

The Latin American nation has registered the world’s highest fatality rate among Covid-19 patients per capita. More than 195,000 people have died, and more than two million Covid cases have been recorded among the nation’s 32.5 million-strong population. During pandemic peaks, when there has been a shortage of beds in state-run hospitals, many have paid large sums to access Covid treatment at private clinics.

While the virus has been raging worldwide, various corruption scandals have emerged. A similar scam involving hospital beds was recently uncovered in India. An official in Bengaluru claimed beds had been allocated to Covid patients in exchange for bribes, after an “artificial shortage” had been created, local media reported in May. According to the official, hospital care had been provided to asymptomatic patients, while those who were severely ill and needed urgent treatment had been denied it. Those asking for payment had since been arrested, he claimed. Meanwhile in Uganda, a different Covid-related scam has been uncovered, with hundreds having been injected with “more water than anything else,” instead of real vaccines.




Tunisian president accused of launching 'coup' after sacking PM,

freezing parliament


Kais Saied's moves come as Tunisia grapples with an economic, COVID-19 crisis

Thomson Reuters · 
Posted: Jul 25, 2021 4:52 PM ET

Tunisian President Kais Saied is seen on TV announcing the dissolution of parliament and Prime Minister Hichem Mechichi's dismissal on Sunday. (Fethi Belaid/AFP/Getty Images)

Tunisia's president dismissed the government and froze parliament on Sunday in a dramatic escalation of a political crisis. Huge crowds filled the capital in his support, but his opponents labelled the moves a coup.

President Kais Saied said he would assume executive authority with the assistance of a new prime minister, in the biggest challenge yet to a 2014 democratic constitution that split powers between president, prime minister and parliament.

Crowds of people quickly flooded the capital's streets, cheering and honking car horns in scenes that recalled the 2011 revolution that brought democracy and triggered the Arab Spring protests that convulsed the Middle East.

However, the extent of support for Saied's moves against a fragile government and divided parliament was not clear and he warned against any violent response.

"I warn any who think of resorting to weapons... and whoever shoots a bullet, the armed forces will respond with bullets," he said in a statement carried on television.


People celebrate in Tunis following Saied's announcement on Sunday. (Fethi Belaid/AFP/Getty Images)

Years of paralysis, corruption, declining state services and growing unemployment had already soured many Tunisians on their political system before the global pandemic hammered the economy last year and COVID-19 infection rates shot up this summer.

Protests, called by social media activists but not backed by any of the big political parties, took place on Sunday with much of the anger focused on the moderate Islamist Ennahda party, the biggest in parliament.

'A new page in history is turning': Polls suggest political outsider Kais Saied winner in Tunisia election
"We have been relieved of them," said Lamia Meftahi, a woman celebrating in central Tunis, speaking of the parliament and government.

"This is the happiest moment since the revolution," she added.

Ennahda, banned before the revolution, has been the most consistently successful party since 2011 and a member of successive coalition governments.


Parliament Speaker Rached Ghannouchi, head of the moderate Islamist Ennahda party, speaks to supporters during a rally in opposition to Saied in Tunis on Feb. 27. (Zoubeir Souissi/Reuters)

Its leader Rached Ghannouchi, who is also parliament speaker, immediately labelled Saied's decision "a coup against the revolution and constitution" in a phone call to Reuters.

"We consider the institutions still standing, and the supporters of the Ennahda and the Tunisian people will defend the revolution," he added, raising the prospect of confrontations between supporters of Ennahda and Saied.

Disputes over constitution, economic reforms

Saied said in his statement that his actions were in line with Article 80 of the constitution, and also cited the article to suspend the immunity of members of parliament.

"Many people were deceived by hypocrisy, treachery and robbery of the rights of the people," he said.

The president and the parliament were both elected in separate popular votes in 2019, while Prime Minister Hichem Mechichi took office last summer, replacing another short-lived government.


Prime Minister Hichem Mechichi is seen in Tunis in September 2020. (Riadh Dridi/The Associated Press)

Saied, an independent without a party behind him, swore to overhaul a complex political system plagued by corruption. Meanwhile, the parliamentary election delivered a fragmented chamber in which no party held more than a quarter of seats.

Disputes over Tunisia's constitution were intended to be settled by a constitutional court. However, seven years after the constitution was approved, the court has yet to be installed after disputes over the appointment of judges.

The president has been enmeshed in political disputes with Mechichi for over a year, as the country grapples with an economic crisis, a looming fiscal crunch and a flailing response to the COVID-19 pandemic.

Violent demonstrations broke out on Sunday in several Tunisian cities as protesters expressed anger at the deterioration of the North African country's health, economic and social situation. (Zoubeir Souissi/Reuters)

Under the constitution, the president has direct responsibility only for foreign affairs and the military, but after a government debacle with walk-in vaccination centres last week, he told the army to take charge of the pandemic response.

Tunisia's soaring infection and death rates have added to public anger at the government as the country's political parties bickered.

Meanwhile, Mechichi was attempting to negotiate a new loan with the International Monetary Fund (IMF) that was seen as crucial to averting a looming fiscal crisis as Tunisia struggles to finance its budget deficit and coming debt repayments.

Disputes over the economic reforms seen as needed to secure the loan, but which could hurt ordinary Tunisians by ending subsidies or cutting public sector jobs, had already brought the government close to collapse.




Senior cardinal of Roman Catholic Church and former close ally

of Pope Francis goes on trial in $412mn fraud case

27 Jul, 2021 12:40


FILE PHOTO. Vatican. © AFP / Andreas SOLARO; (inset) Cardinal Giovanni Angelo Becciu.
© AFP / ANDREAS SOLARO

The trial of 73-year-old former Cardinal Angelo Becciu over allegations he fraudulently spent $412 million of church money began in a special Vatican courtroom on Tuesday, months after he was removed from his post by Pope Francis.

The court case marks the culmination of a two-year investigation that discovered the cardinal had been involved in spending €350 million ($412 million) to purchase a property on Sloane Avenue in the posh London neighborhood of Chelsea that went awry.

Prior to his dismissal in September, Becciu was in charge of donations at the Vatican office that handles Church funds. He had been a close ally of Pope Francis and is the most senior Vatican official to stand trial for financial misconduct. The crimes he is accused of include funneling donations to businesses run by his brothers on the Italian island of Sardinia. Becciu has repeatedly denied any wrongdoing.

Alongside the cardinal, nine other defendants, who all deny wrongdoing, are on trial for extortion, embezzlement, money laundering and abuse of office. The case is being heard in a special courtroom set up in the Vatican Museums that has the space required to conduct the trial in a Covid-safe setting.

Two hearings will be held this week before the trial is expected to be adjourned until October. The case is set to last for several months before a judgment will be rendered. It comes after Pope Francis announced in April that he will allow lay judges to oversee cases involving cardinals and bishops, rather than it being handled by cardinals, as had been tradition. 

“I think this trial marks a turning point that can bring about greater credibility of the Holy See in financial areas,” Father Juan Antonio Guerrero, the Vatican’s newly appointed finance chief said. He pledged to make the Church’s financial matters more transparent.


If you are shocked by this revelation, you need to read David Yallop's In God's Name.