Cryptocurrencies

Filmmaker accused of stealing $11 million from Netflix to trade crypto and shares

US prosecutors have charged filmmaker Carl Erik Rinsch with fraud and money laundering, alleging he misused $11 million of Netflix’s funds on risky investments instead of producing a sci-fi series.

The US Department of Justice (DOJ) unsealed the indictment on 18 March, stating that Rinsch could face up to 20 years in prison.

Authorities claim Netflix provided the filmmaker with funds in 2020 to finance the production of Conquest, originally titled White Horse. Instead of completing the project, he reportedly used $10.5 million to make speculative trades, losing over $5.5 million on share options.

However, he made significant gains in cryptocurrency, later purchasing luxury items, including five Rolls-Royces, a Ferrari, and high-end watches.

Prosecutors also allege that Rinsch used nearly $1.8 million to pay off credit card bills and $1 million for legal fees in his lawsuit against Netflix.

The streaming giant cancelled Conquest in early 2021, citing concerns over his erratic behaviour. Despite receiving at least $44 million for the show, no episodes have aired.

Rinsch now faces multiple charges, including one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years.

He was arrested on 18 March, with the case assigned to New York federal Judge Jed Rakoff. His lawyer has declined to comment on the matter.

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Minnesota pushes Bitcoin bill to modernise state investments

Minnesota has taken a significant step towards embracing digital assets with a newly introduced Bitcoin bill.

The Minnesota Bitcoin Act (SF2661), presented by Senator Jeremy Miller, seeks to modernise the state’s financial system and position it as a leader in the cryptocurrency space.

The proposed legislation would permit the Minnesota State Board of Investment to allocate state funds to Bitcoin and other digital assets, treating them similarly to stocks and bonds.

Additionally, state employees would have the option to include cryptocurrencies in their retirement plans, expanding their investment choices.

Under the bill’s provisions, residents could also pay state taxes and fees using Bitcoin. Furthermore, tax incentives would allow certain cryptocurrency gains to be deducted from taxable income, potentially encouraging further adoption of digital assets in the state.

Minnesota joins a growing number of US states considering cryptocurrency-related policies. Texas recently introduced a bill to invest $250 million in Bitcoin, while Senator Cynthia Lummis proposed expanding the US government’s Bitcoin holdings through an updated Strategic Bitcoin Reserve Act.

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America’s Bitcoin gamble: A power play for financial dominance 

For years, the US government has maintained a cautious stance on cryptocurrency, often treating it as a regulatory challenge rather than an economic opportunity. Recent policy moves under President Donald Trump suggest that a dramatic shift is underway—one that could redefine the nation’s role in the digital asset space. During his pre-election campaign, Trump promised to create a Strategic Bitcoin Reserve, a move that generated significant excitement among crypto advocates. In the post-election period, a series of measures have been introduced, reflecting a deeper recognition of cryptocurrency’s growing influence. But are these actions bold steps towards financial innovation, or simply political manoeuvres designed to capture a rising economic trend? The answer may lie in how these policies unfold and whether they translate into real, lasting change for Bitcoin and the broader crypto ecosystem.

Digital Asset Stockpile: Has the promise of Bitcoin as a reserve been betrayed?

The first major step in this shift came on 23 January, when Trump signed an executive order promoting cryptocurrency and paving the way for the establishment of the US Digital Asset Stockpile. At first glance, this move appeared to be a groundbreaking acknowledgement of cryptocurrencies as valuable national assets. However, a closer look revealed that the stockpile was not focused on Bitcoin alone but included a mix of digital assets, all sourced from government seizures in criminal and civil procedures. This raised immediate concerns among Bitcoin advocates, who had expected a more direct commitment to Bitcoin as a reserve asset, as promised. Instead of actively purchasing Bitcoin to build a strategic reserve, the US government chose to rely solely on confiscated funds, raising questions about the long-term sustainability and intent behind the initiative. Was this a step towards financial innovation, or simply a way to repurpose seized assets without committing to a larger crypto strategy?

The ambiguity surrounding the Digital Asset Stockpile led many to doubt whether the US government was serious about adopting Bitcoin as a key financial instrument. If the goal was to establish a meaningful reserve, why not allocate funds to acquire Bitcoin on the open market? By avoiding direct investment, the administration sent mixed signals—recognising digital assets’ importance while hesitating to commit real capital. This move, while significant, seemed to fall short of the expectations set by previous pro-crypto rhetoric. 

America’s bold Bitcoin strategy could set off a global wave, reshaping the future of digital finance and economic power.

Strategic Bitcoin Reserve: A step towards recognising Bitcoin’s unique role

Just when it seemed like the US was betraying its promises to the crypto community, a new executive order emerged, offering a glimmer of hope. Many were initially disillusioned by the creation of the Strategic Bitcoin Reserve, which was to be built from confiscated assets instead of fresh, direct investments in Bitcoin. This approach raised doubts about the administration’s true intentions, as it seemed more focused on repurposing seized funds than on committing to Bitcoin’s long-term role in the financial system. However, the following executive order signalled a shift in US policy, opening the door to broader recognition of Bitcoin’s potential. While it might not have met the bold expectations set by early promises, it was still a significant step towards integrating cryptocurrency into national and global financial strategies. More importantly, it signalled a move beyond viewing all cryptocurrencies as the same, recognising Bitcoin’s unique position as a digital asset with transformative potential. This was a step further in acknowledging Bitcoin’s importance, distinct from other cryptos, and marking a pivotal moment in the evolution of digital finance.

White House Crypto Summit: Bringing legitimacy to the table

As these initiatives unfolded, the White House Crypto Summit added another layer to the evolving policy content. As the first event of its kind, it brought together industry leaders and policymakers in an unprecedented dialogue between government officials and crypto giants. This move was not just about discussing regulations—it was a strategic effort to strengthen the foundation for future pro-crypto actions. Consulting industry insiders provided a crucial opportunity to grasp the true nature of cryptocurrency before finalising legislative measures, ensuring that policies would be informed rather than reactive. By involving key industry players, the administration ensured that upcoming measures would be shaped by those who understand the technology and its potential. It was a calculated step towards framing future policies as collaborative rather than unilateral, fostering a more balanced approach to crypto regulation.

A new memecoin, Everything is Computer (EIC), has emerged following Trump’s viral comment, recording over $15 million in trading volume in a single day.

Bitcoin Act Unveiled: America is ready to HODL

And then, the moment the crypto community had been anticipating finally arrived—a decisive move that could reshape global crypto adoption. Senator Cynthia Lummis reintroduced the Bitcoin Act, a proposal to solidify Bitcoin’s place within the US financial system. Unlike executive orders that can be overturned by future administrations, this bill aimed to establish a permanent legal framework for Bitcoin’s adoption.

What made this proposal even more historic was its bold mandate: the US government would be required to purchase one million BTC over the next five years, a colossal investment worth around $80 billion at the time. To finance this, a portion of the Federal Reserve’s net earnings would be allocated, minimising the burden on taxpayers. Additionally, all Bitcoin acquired through the programme would be locked away for at least 20 years before any portion could be sold, ensuring a long-term commitment rather than short-term speculation. It seems like America is ready to HODL!

Trump’s crypto plan: Bringing businesses back to the US

Not just that—President Trump revealed plans to sign an executive order reversing Biden-era crypto debanking policies, a move that could significantly reshape the regulatory landscape if enacted. These policies have made it increasingly difficult for crypto businesses to access banking services, effectively cutting them off from the traditional financial system and driving many firms to relocate offshore.

If implemented, the reversal could have profound repercussions. By removing banking restrictions, the USA could become a more attractive destination for blockchain companies, potentially bringing back businesses that left due to regulatory uncertainty. Easier access to banking would give crypto businesses the stability they need, cutting out the risky loopholes they have had to rely on and making the industry more transparent.

For now, this remains a plan, but its announcement alone has already garnered strong support from the crypto community, which sees it as a critical step towards re-establishing the USA as a leader in digital asset innovation. Senator Cynthia Lummis stated, ‘By transforming the president’s visionary executive action into enduring law, we can ensure that our nation will harness the full potential of digital innovation to address our national debt while maintaining our competitive edge in the global economy.’

Flag, Gold, American Flag

Global impact: How US measures could accelerate worldwide crypto adoption

This is not just a story about the USA; it has global implications. The effect of these measures goes beyond American borders. By officially recognising Bitcoin as a strategic asset and rolling back restrictive banking policies, the USA is setting an example that other nations may follow. If the world’s largest economy begins accumulating Bitcoin and incorporating it into its financial framework, it will solidify Bitcoin’s standing as a global reserve asset. This could prompt other countries to rethink their positions, fostering broader institutional adoption and possibly triggering a wave of regulatory clarity worldwide. Moreover, the return of crypto businesses to the USA might spark competition among nations to establish more attractive regulatory environments, speeding up innovation and mainstream adoption.

Simultaneously, these moves send a strong signal to global markets: the uncertainty surrounding the role of Bitcoin in the financial system is decreasing. With the USA taking the lead, institutional investors who were once cautious may gain more confidence to allocate substantial funds to Bitcoin and other digital assets. This could drive broader financial integration, positioning Bitcoin not just as a hedge against inflation or a speculative investment, but also as a central element in the future financial systems.

As nations compete to define the future of money, the true test will be whether the world can embrace a decentralised financial system or whether it will ultimately remain tethered to the traditional power structures. One thing is certain: it all comes down to who holds the power in the rise of cryptocurrency, as it will shape the economic relations of the future. 

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Tatarstan to pilot digital ruble subsidies as Russia delays CBDC launch

Russia’s Central Bank has enlisted the Republic of Tatarstan to trial smart contract functions for the digital ruble, marking a significant step in the CBDC’s ongoing development.

The Tatarstan Ministry of Finance confirmed the establishment of a working group to oversee the tests. The initiative will focus on piloting conditional CBDC subsidies, transforming them into smart contracts monitored by the Central Bank’s test platform. Despite the indefinite delay of the nationwide rollout, this move suggests that the digital ruble project remains active.

Alongside these efforts, the Moscow Metro is expanding its own digital ruble trials. The city’s transport network is collaborating with the Central Bank and VTB to facilitate payments via the Troika card, using QR codes linked to digital ruble wallets. This development mirrors China’s digital yuan initiatives, highlighting Russia’s ambitions to integrate CBDCs into everyday transactions.

Although the national launch remains uncertain, these ongoing tests indicate that authorities are determined to refine the digital ruble’s functionality before wider implementation.

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Zhao urges AI projects to focus on utility over tokens

Changpeng Zhao has urged AI projects to reconsider launching their own tokens, stating that AI agents can accept payments using existing cryptocurrencies instead.

In a recent post on X, the Binance founder argued that tokens should only be introduced when a project reaches significant scale and has clear utility.

The AI & Big Data token market has seen a 22% decline over the past 30 days, now valued at $27.44 billion, according to CoinMarketCap. Some of the biggest losses include Virtuals Protocol (VIRTUALS) dropping by 42%, Render (RENDER) by 30%, and Near Protocol (NEAR) by 26%.

Analysts suggest that these declines stem largely from macroeconomic pressures, such as Donald Trump’s tariffs and uncertainty over US regulatory policies. The impact has extended beyond crypto, with Nvidia’s stock falling 6% amid concerns over AI chip restrictions.

Beyond market conditions, some experts share Zhao’s view on the limited utility of AI tokens. Coinbase analyst David Han believes much of the recent AI token hype was driven by speculation rather than actual demand.

On-chain investigator ZachXBT also criticised the industry, claiming that 99% of AI crypto projects are scams and that many mislead investors by presenting their tokens as having real utility.

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SEC may reverse proposed cryptocurrency custody rule

The United States Securities and Exchange Commission (SEC) is considering reversing a proposed rule that would impose stricter custody requirements on investment advisers handling cryptocurrencies.

Acting SEC Chair Mark Uyeda announced the potential change during a conference in San Diego, highlighting concerns over the broad scope of the crypto custody rule and compliance challenges.

Proposed in February 2023, the custody rule would require registered investment advisers to store crypto assets with qualified custodians while implementing additional safeguards. Significant objections from industry participants have led the SEC to reassess its approach.

Uyeda also revealed that the agency is reviewing a separate regulation mandating monthly portfolio holdings reports for unit trusts and exchange-traded funds, a policy that has raised concerns about its impact on AI-driven trading strategies.

These regulatory reviews mark a shift in SEC policy under the Trump administration, which has already rolled back several cryptocurrency-related initiatives introduced under former Chair Gary Gensler.

Recent changes include rescinding accounting guidance for cryptocurrency firms, dropping enforcement actions, and forming a cryptocurrency task force to reassess priorities.

With former SEC Commissioner Paul Atkins set to take over as chair, Uyeda’s push for regulatory revisions signals a more industry-friendly approach, particularly towards digital assets and financial institutions navigating changing compliance requirements.

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Spanish police dismantle Bitcoin-themed crypto scam

Spanish police have successfully dismantled a Bitcoin-themed pyramid scam, uncovering a fraudulent network that swindled around $32.6 million from unsuspecting victims.

According to the National Police Corps (CNP), eight individuals were arrested, including the mastermind, a computer programmer detained in Malaga. The scam targeted over 3,600 people, mostly in Spain, but extended its reach to 36 countries.

The group operated a seemingly legitimate platform offering various Bitcoin investment plans. Promoted through websites and social media, victims were promised significant returns, with some reportedly offered dividends of 40% in just a month.

However, once funds were invested, obstacles were fabricated to delay or prevent withdrawals.

The police first uncovered the operation in 2022, following a report from a victim in Murcia. Their investigation revealed the scam’s pyramid structure, where older investors were paid with funds from newer ones.

Some victims were even tricked into handing over control of their devices for crypto transfers.

In total, the fraudsters amassed approximately 400 Bitcoin and created a worthless token for investors. Authorities have since frozen 73 bank accounts, seized cars, and impounded various assets as part of the investigation.

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Microsoft warns of new malware targeting cryptocurrency wallets

Microsoft has issued a warning about StilachiRAT, a newly discovered malware that steals cryptocurrency wallet data and sensitive browser information.

The trojan is designed to evade detection while extracting credentials from over 20 different wallets, including MetaMask, Trust Wallet, and Coinbase.

The malware actively scans for cryptocurrency wallet extensions in Google Chrome and monitors clipboard actions for copied keys and passwords.

Attackers can use the stolen data to drain victims’ funds. StilachiRAT also enables remote command execution, allowing cybercriminals to manipulate system settings and maintain control over infected devices.

Beyond stealing data, the malware gathers detailed information about the compromised system, including OS details and hardware identifiers.

It even monitors Remote Desktop Protocol sessions, enabling attackers to impersonate users and spread further across networks.

Microsoft has not yet linked StilachiRAT to a specific threat actor but emphasises the need for caution. Users are advised to download software only from official sources, enable Microsoft Defender real time protection, and use SmartScreen to block malicious websites.

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Kyrgyzstan introduces USDKG, a gold-backed stablecoin

Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin that is entirely backed by the government, marking a significant shift in the nation’s digital currency strategy.

The decision to focus on a gold-backed model contrasts with the global trend of using fiat currencies, like the US dollar, to support stablecoins. The move is seen as pragmatic, especially in a time of uncertainty around cryptocurrency regulations.

Gold, historically considered a hedge against economic volatility, is now being used as collateral to back the stablecoin.

The government hopes that this will instil more trust among users compared to stablecoins backed by traditional digital currencies. However, it remains to be seen whether this approach will gain traction globally, as nations like Abu Dhabi also explore alternative asset-backed stablecoins, such as AE Coin.

Kyrgyzstan’s gold-backed stablecoin strategy is part of a broader trend where countries and corporations are increasingly adopting stablecoins to enhance digital finance.

The Bahamas introduced the Sand Dollar in 2020, becoming the first country to launch a central bank digital currency (CBDC). Meanwhile, Wyoming in the US is planning to launch its stablecoin in early 2025, and private companies, such as Braza, are integrating stablecoins into global payment systems.

USDKG’s success will largely depend on how effectively Kyrgyzstan manages its gold reserves and maintains transparency to ensure user confidence. If successful, this model could inspire other nations to move away from fiat-backed stablecoins, offering a more stable and tangible alternative.

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Thailand’s CIB uncovers illegal crypto mining rig network

Thailand’s Central Investigation Bureau (CIB) seized 63 illegal crypto-mining machines in a raid on Friday, marking a significant step in cracking down on illicit operations in the country.

The mining rigs, valued at approximately 2 million baht ($60,000), were discovered hidden in three abandoned houses in Pathum Thani province.

The raid followed complaints from locals about stolen electricity, with suspicions that it was being used for cryptocurrency mining.

Crypto mining requires substantial power, and the stolen electricity resulted in significant losses, with authorities estimating damages to the Metropolitan Electricity Authority at over 11 million baht ($327 million).

Along with the mining rigs, officials seized equipment including controllers, routers, and modified electricity meters. However, the operations were remotely controlled, so no arrests were made.

The illegal operation appears to have connections to a luxury house in Bangkok’s Khan Na Yao district, where further investigations are underway.

Authorities are concerned not only about the financial losses but also the fire hazard posed by these high-power mining activities, which were carried out without any human supervision.

Illegal crypto mining has been a persistent issue in Thailand and Southeast Asia, with several large operations dismantled in recent months.

In previous raids, authorities seized nearly 1,000 mining rigs and shut down illegal farms in Surat Thani province, which had been stealing electricity worth hundreds of thousands of dollars.

For more information on these topics, visit diplomacy.edu.