Sen. warren compliance bill for crypto

sen. warren compliance bill for crypto

Please help me be whole again as this situation Celsius created is wreaking havoc on my mental health.”


Voyager customers asked a judge to unfreeze their accounts. A hearing on that motion is scheduled for today.

Crypto lender Celsius and crypto broker Voyager Digital filed for Chapter 11 bankruptcy in July, freezing their customers’ assets. Celsius has 1.7 million customers and $6 billion in assets. Voyager counts 3.5 million users and over $5.9 billion of cryptocurrency assets.


Corporate bankruptcies are generally battles between rival groups of Wall Street investors backed by lawyers who often bill $1,000 or more per hour.

The Celsius and Voyager cases are exceptions.

Elizabeth Warren, D-Mass

This May 4, 2021, file photo shows the Federal Reserve building in Washington.(AP Photo/Patrick Semansky, File / Associated Press)

The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve have ordered Voyager to stop making false and misleading statements concerning its FDIC deposit insurance status and to take immediate corrective action.

Celsius allowed customers to get loans in real dollars by using their crypto holdings as collateral. Customers could also earn interest by lending their deposited coins, according to the company’s white paper.

Voyager offered a secure way to trade over 100 different crypto assets using a mobile app and advertised rewards on more than 40 cryptocurrencies, the company’s white paper said.

At least one person has turned to crowdfunding for help.

Sen. warren compliance bill for crypto

Warren said today during a Senate Committee on Banking, Housing, and Urban Affairs hearing.

This legislation comes amid concerns from Federal agencies that Russian actors could try to evade economic sanctions by using digital currencies. However, the Biden administration said there is currently no evidence of cryptocurrencies being used by Russia to evade sanctions.

“Putin and his cronies can move, store, and hide their wealth using cryptocurrencies, potentially allowing them to evade the historic economic sanctions the U.S. and its partners across the world have levied in response to Russia’s war against Ukraine,” Sen.

Sen. warren compliance bill for cryptocurrency

Eduardo Dorrance wants to save his family’s animal rescue with a GoFundMe campaign. His family is a month away from losing the business.

Crypto winter

The Binance Exchange website on a laptop computer arranged in Dobbs Ferry, N.Y., Feb. 20, 2021. (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)

Crypto investors who used other platforms are not immune from losses.

Cryptocurrencies lost an estimated $2 trillion in value since peaking last year in a market collapse nicknamed the “crypto winter.”

Bitcoin, the biggest cryptocurrency, topped out at $68,789 per coin Nov.

Sen. warren compliance bill for cryptography

Warren said in a press release.

“I’m glad to introduce the Digital Asset Sanctions Compliance Enhancement Act with my colleagues to strengthen our sanctions program and close off any avenues for Russian evasion,” she said.

In addition to authorizing President Biden to act on foreign crypto actors, the legislation also authorizes the Treasury Secretary authority to prohibit digital asset trading platforms and transaction facilitators under U.S. jurisdiction from doing business with cryptocurrency addresses “that are known to be, or could reasonably be known to be, in Russia.”


Pat Toomey, R-Pa., raised concern over the legislation during today’s hearing, saying, “I know the intent is to go after oligarchs, but it looks to me like it would have a hugely negative impact on anybody in Russia engaged in any kind of crypto transactions.”

Michael Chobanian, the founder of KUNA Exchange and the president of the Blockchain Association of Ukraine, agreed with Sen. Toomey and reminded lawmakers to ensure they “don’t block the regular people in Russia who are actually opposition within Russia.”

“We only have to go after the sanctioned list and sanctioned people,” Chobanian said. “We have to make sure that we don’t block these people and we still allow for the opposition to survive both within Russia and outside because, as you know, they can’t use Visa, MasterCard cards outside of Russia right now. So, the only means of payments they have is cash or crypto.

I used Voyager to replace my savings account as it was advertised as FDIC insured,” Hourigan said. “I am now filled with regret for doing so and fear that I pretty much lost everything for trusting this company.”

“They made astonishing claims, like offering up to 20% interest while claiming they were FDIC insured and quote ‘safer than banks,’” Sen. Elizabeth Warren, D-Mass., said at last week’s hearing. “No risk. Twenty percent return. That was a lie from the start.”

They made astonishing claims, like offering up to 20% interest while claiming they were FDIC insured and quote, “safer than banks.”

– Sen.

One investor named Donald said he feels “completely ashamed and embarrassed” for sinking $31,000 into Voyager Digital Holdings.

“Losing this money with no end in sight has been unbearable for my family and I,” Donald said. “I wake up most nights and just walk up and down the stairs contemplating on my own mistakes and wondering if this will ever end.”

John Dalisay, who is paralyzed from the neck down, sent a letter to a judge saying he is depressed and unable to work after his life savings were frozen.

“I already suffered a tragic loss of my ability to ever walk again and did my best to be strong and fight to start over with my life,” Dalisay wrote. “I feel humiliated and defeated.”

Dalisay invested money from his $8-per-hour job at Celsius Network.

“I do not seek luxuries, your honor,” he wrote. “I only wanted to be able to afford basic necessities.

“There’s rarely enough money to cover the investor,” said Melanie Senter Lubin, president of the North American Securities Administrators Association, who testified last week at a Senate Banking Committee hearing on crypto fraud.

“If those investors are considered unsecured creditors, they’re going to be put in the pool with everybody else, and they’re typically at the end of the line.”

Safer than a bank?

Celsius and Voyager promoted the safety of their investments.

“Celsius stated overwhelmingly … that putting our funds into [their] custody was much safer than having it at a regular bank account,” wrote Paul Niehe, who transferred his pension savings into crypto.

Ryan Hourigan invested a portion of his paycheck into Voyager every month on top of rolling his life savings into his account.

Many put their life savings into virtual currency only to see their money frozen while the courts decide the fate of their investments.

Their plight has members of Congress calling for investor education and greater regulation.

Senators Debbie Stabenow, D-Mich., and John Boozman, R-Ark., introduced a bill Wednesday to give the Commodity Futures Trading Commission new tools and authorities to regulate digital commodities.


The logo of the crypto company Celsius on a computer screen June 14, 2022.(Silas Stein/picture alliance via Getty Images / Getty Images)

New laws will come too late for customers of Celsius Network and Voyager Digital.

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