DoJ crypto announcement - live: ‘Major’ move expected as press release teases new cryptocurrency action

FTX Bankrupcy (Copyright 2022 The Associated Press. All Rights Reserved.)
FTX Bankrupcy (Copyright 2022 The Associated Press. All Rights Reserved.)

The US Justice Department issued a vague statement on Wednesday that it would “announce a major, international cryptocurrency enforcement action,” and noting that the US Treasury Department would also be making its own statement.

“The U.S. Department of the Treasury will also announce an action in this space,” the statement said.

US officials from each agency will give their remarks around 12pm in Washington DC, according to the statement.

It’s unclear what the DOJ and Treasury Department mean by “enforcement action,” but the announcement comes at a time when former FTX crypto exchange CEO Sam Bankman-Fried is facing charges of wire fraud, securities fraud, and conspiracy.

His company — long considered one of the biggest crypto exchanges alongside Binance — declared bankruptcy after allegedly using — and losing — customers’ funds as investment capital. Investigators believe FTX lost nearly $8bn worth of its customers’ money before declaring bankruptcy.

‘Dr Doom’ economist says ‘90 per cent of crypto is a scam’ at Davos

16:37 , Graig Graziosi

Dr Nouriel Roubini — who is sometimes called “Dr Doom” for his grim economic predictions — said that “literally 90 per cent of crypto is a scam” during the Davos World Economic Forum on Wednesday.

“FTX and SBF are not an exception — they’re a rule,” he said during a Yahoo Finance event.

He went on to predict a forthcoming bust.

“Literally 90% of crypto is a scam. A criminal activity,” he said. “A total real-bubble Ponzi scheme that is going bust.”

Welcome to the live blog

16:20 , Graig Graziosi

Welcome to The Independent’s live coverage of the Department of Justice and the Treasury Department as they announce “major international cryptocurrency enforcement action” later today.

Stay with The Independent for the latest updates.