Russian Court: Bitcoin Theft Not a Crime
A Russian district court has dismissed bitcoin theft as a crime since cryptocurrency is not regulated in Russia and there is no legal status for bitcoin. The accused were found guilty, sentenced to prison, and ordered to return only the fiat money stolen — not cryptocurrencies.
St. Petersburg’s Petrogradsky District Court has announced the verdict in a theft case involving bitcoin filed in December, the joint press service of the judicial system of St. Petersburg announced on Tuesday.
The two accused, Peter Piron and Yevgeny Prigozhin, disguised as officers of the Federal Security Service of the Russian Federation (FSB) in 2018, forced the plaintiff to transfer cash and cryptocurrencies to them. Under the threat of torture, the cryptocurrency owner transferred five million rubles and cryptocurrencies, including 99.7035 bitcoins. The BTC was worth more than 48 million rubles ($680,640) based on the exchange rate on June 3, 2018, the court announcement details. Currently, this amount of BTC is worth about $908,024. The other cryptocurrencies amounted to approximately 7 million rubles, bringing the total loss suffered by the plaintiff to more than 60 million rubles.
The victim sought the return of all properties stolen. The court admitted that cryptocurrencies were transferred to the accused under threat. However, citing information from the central bank, the Bank of Russia, and the criminal code, the court concluded:
Cryptocurrency [theft] is not a crime against property. Due to the lack of legal status, it is not possible to recognize it as an object of civil law.
“This type of virtual money does not fall into any category and is not a recognized means of payment in the territory of the Russian Federation. The legislator has assigned it to surrogates of funds,” the court added.
Prigozhin was sentenced to eight years and Prion 10 years in a maximum-security prison. They have also been ordered to return the five million rubles, but the cryptocurrencies worth 55 million rubles at the time of the theft were excluded from the verdict.
Russia still has no cryptocurrency regulation even though a bill on digital financial assets was submitted to the State Duma back in March 2018. Recently, a bill was proposed to outlaw cryptocurrencies with a jail term, but several ministries do not support this bill.
What do you think about this Russian court’s decision regarding crypto? Let us know in the comments section below.
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Trouble in Defi Paradise: Compound-Issued DAI Surpasses DAI in Circulation | Bitcoin News
A number of cryptocurrency proponents have been discussing the stablecoin DAI this week, as the DAI allegedly held on the Compound platform is much larger than what is recorded in circulation.
At press time, Compound statistics show there’s $523 million worth of DAI held in reserves, while the web portal daistats.com shows there’s only 160 million DAI in circulation.
There seems to be another mystery in the world of decentralized finance (defi) again as the crypto community is now discussing the stablecoin DAI and the algorithmic money market protocol Compound.
Essentially, the Compound platform allows users to earn interest or borrow assets against collateral by leveraging a myriad of crypto assets. The platform is a well known tool and the stablecoin DAI is the most popular asset on the market today.
According to stats on the compound. finance markets detail page, there is $523 million worth of DAI held in reserves. In fact, the market overview of the compound.finance total supply is $1.3 billion to-date. That specific data metric includes all the tokens that are leveraged on the Compound platform.
However, looking at the website daistats.com shows there is only 160 million DAI in circulation. This has caused many defi proponents and the crypto community, in general, to start theorizing on why there is more DAI allegedly held in reserves on Compound, than what’s ostensibly minted in the real world.
A number of people on Twitter started making fun of defi projects and specifically criticized Compound, DAI, and Maker proponents. In the official Maker Chat governance channel, one individual said: “This whole thing is just a little frustrating — Compound is not being a good actor right now.”
Other’s discussed whether or not there is a major issue with farmers, farming yields, and market makers. Just recently, the Compound project introduced a new governance proposal that affected “yield farming.”
On Twitter, some people discussed an ostensible issuance loophole that could grow the DAI held on Compound infinitely, while others didn’t believe it was possible. “This doesn’t seem [like a] possible/error. I don’t believe you can borrow DAI against a collateral of DAI…can you?” an individual asked.
One person responded: “Yeah you can, check out Instadapp. You can do it easily via the [Compound Finance] UI if you buy cToken of w/e too.” Another person confirmed the fact that it is entirely possible to borrow DAI against a collateral of DAI.
Whatever the case may be, in the defi world there is trouble in paradise once again. In the Maker governance chat, some people thought that simply changing the interest rate lower on another stablecoin like USDC would solve the issues Compound is dealing with at the moment.
However, some people thought that a decision like that would be tricky and cause yield farmers to move to other assets. “I mean what is a few hundred million DAI backed by a few hundred million worth of cDAI between friends,” another individual discussing the DAI/Compound situation remarked.
A concerned individual on Twitter wrote: “DAI will skyrocket above peg – that means the debt value will increase accordingly, [and] that’s dangerous for my collateralization. Many farmers will get rekt on Compound.”
What do you think about the discrepancy between DAI in circulation and what’s held on Compound? Let us know in the comments section below.
Compound, Compound Farmers, Compound Finance, Cryptocurrency, DAI, DAI Token, decentralized finance, defi, Governance, Maker, Maker Chat, Stablecoin, yield farming
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