Cryptocurrency Update: PGI CEO Acknowledges $200 Million Ponzi Scheme, Bitcoin ETF Prices Decline, BNB Surpasses $1,000, RLUSD Shows Significant Growth
In the world of cryptocurrency, there's always something new and exciting happening. Here's a roundup of the latest developments, from Bitcoin ETFs seeing their first outflow, to BNB reaching new heights, and Ripple expanding into African markets.
Bitcoin ETFs See First Outflow
After a seven-day streak of inflows, Bitcoin spot ETFs recorded their first outflow. Fidelity's FBTC saw outflows of $116 million, marking a slight shift in investor sentiment. The total net asset value of Bitcoin spot ETFs currently stands at $152.45 billion, about 6.62% of Bitcoin's market capitalization.
Grayscale's GDLC Approved by SEC
In positive news for the crypto industry, the US Securities and Exchange Commission (SEC) has approved Grayscale's Digital Large Cap Fund (GDLC) to trade as an exchange-traded product (ETP). The GDLC, which manages $915 million in assets, offers exposure to Bitcoin, XRP, Solana, and Cardano, making it the first multi-asset crypto product to receive SEC approval. The SEC Chairman Paul Atkins stated that the move reflects a commitment to expanding investor choice and encouraging innovation in digital markets.
BNB Surges to New Highs
BNB, the token fueling the Binance ecosystem, surged 4.5% to a new all-time high. This surge briefly pushed its market cap to $140 billion. Technical analysis shows support consolidating just below $1,000 for BNB, with resistance emerging near $1,005. If momentum persists for BNB, analysts say it could test $1,100.
The rally in BNB comes amid reports that Binance is negotiating with the US Department of Justice to remove a court-appointed compliance monitor imposed during its $4.3 billion 2023 settlement. Speculation about the potential return of co-founder Changpeng Zhao (CZ) has also fueled optimism, though Binance has not confirmed leadership changes.
Ripple's Expansion into African Markets
Ripple has expanded its RLUSD stablecoin into African markets through collaborations with Chipper Cash, VALR, and Yellow Card. This move reflects the growing demand for regulated stablecoins in emerging markets. Ripple's RLUSD stablecoin hit a new market cap record of $729 million in September and is expected to surpass $1 billion in the coming months.
In addition, Ripple announced partnerships with DBS Bank and Franklin Templeton to launch tokenized money market funds and repo trades on its XRP Ledger.
Bitcoin Ponzi Scheme Uncovered
Unfortunately, not all news in the crypto world is positive. A Ponzi scheme involving soliciting more than $201 million, including 8,100 BTC, from at least 90,000 investors worldwide has been uncovered. The investments were promised daily returns of 0.5% to 3% through a supposed Bitcoin trading program, but in reality, new investor deposits were used to pay earlier participants. Estimated losses from the scheme are $62.7 million.
Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), pleaded guilty to defrauding investors in the scheme. The name of the victim in the case is not publicly disclosed.
As always, it's important to be cautious and do thorough research when investing in any cryptocurrency. Stay informed and make smart decisions!
