## Coinbase Sued Over Wrapped Bitcoin Delisting

Cryptocurrency exchange **Coinbase Global Inc.** is currently embroiled in a lawsuit alleging that it unlawfully removed a rival's **wrapped token product** from its platform. This action has raised serious questions regarding potential violations of **federal and state laws**.

The lawsuit suggests that Coinbase's decision to delist the **wrapped Bitcoin** token was not only detrimental to the rival company but also infringed upon established regulations governing cryptocurrency exchanges. The case is expected to draw significant attention as it underscores the ongoing complexities and legal challenges within the cryptocurrency market.

As Coinbase navigates this legal turmoil, the implications for both its operations and the broader cryptocurrency landscape remain to be seen. Investors and users alike will be watching closely to see how this situation develops and what it means for future regulatory standards in the industry.

Cryptocurrency exchange Coinbase Global Inc. is facing a lawsuit alleging that the company kicked a rival’s wrapped token product off its platform in violation of federal and state laws.

Coinbase Faces Legal Battle Over Wrapped Bitcoin Controversy

### Key Companies Joining Nasdaq 100
**Palantir (PLTR)**, **MicroStrategy (MSTR)**, and **Axon Enterprise (AXON)** are set to join the **Nasdaq 100 Index** on **Monday, Dec. 23**. They will replace **Super Micro Computer (SMCI)**, **Moderna (MRNA)**, and **Illumina (ILMN)** as part of an annual reconstitution of the index.

### Nasdaq 100 Milestone
This week has been significant for the Nasdaq 100, which recently **topped the 20,000 level** for the first time, driven by surging tech stocks following **inflation data** that reinforced expectations for a **rate cut** by the Federal Reserve.

### Annual Reconstitution
The Nasdaq 100 includes the **100 largest non-financial sector companies** within the Nasdaq Composite Index, and it is reconstituted annually in December, with quarterly rebalancing based on **market capitalization**.

### Other Index Changes
Moreover, the **Dow** and **S&P 500** have announced changes as well, with **Apollo Global Management (APO)** and **Workday (WDAY)** set to join the S&P 500, while **Nvidia (NVDA)** and **Sherwin-Williams (SHW)** have recently joined the Dow.

### Palantir's Strong Year
Palantir’s stock has experienced a remarkable rise this year, largely due to increased demand for its **AI offerings**. Its recent move from the New York Stock Exchange to the Nasdaq has made it eligible for this prestigious index.

### MicroStrategy and Bitcoin
Shares of MicroStrategy have surged alongside the price of **bitcoin (BTCUSD)**, particularly in light of **Donald Trump’s** reelection, who aims to position the U.S. as the **"crypto capital of the planet"**.

### Super Micro Computer's Challenges
The removal of **Super Micro Computer** is due to its challenges, including a **February deadline** to file its delayed annual report or risk delisting. The company has faced volatility amid concerns of **accounting manipulation** and has seen its stock fluctuate significantly this year.

![Palantir, MicroStrategy, and Axon Enterprise](https://www.example.com/image.jpg)

Palantir, MicroStrategy, and Axon Enterprise are set to join the Nasdaq 100 Index on Monday, Dec. 23, replacing Super Micro Computer, Moderna, and Illumina.

Exciting Changes Ahead: Palantir, MicroStrategy, and Axon Enterprise Join the Nasdaq 100!

MicroStrategy, the leading **high beta stock** closely tied to **Bitcoin's price**, is set to join the **Nasdaq 100 index** on December 23. This move could significantly boost demand for MicroStrategy shares, which have surged over sixfold this year, outperforming Bitcoin's nearly **140% gain** in the same timeframe.

![MicroStrategy CEO Michael Saylor at Bitcoin 2021 Conference](https://image.cnbcfm.com/api/v1/image/106919656-1627660193396-gettyimages-1321733357-ay4i8577_20210604112001247.jpeg?v=1734036661&w=1858&h=1045&vtcrop=y)

### Why This Matters
The **Nasdaq 100** is composed of the largest non-financial companies, and MicroStrategy's inclusion means that ETFs like the **Invesco QQQ Trust**, which has **$325 billion** in assets, will automatically buy shares of MicroStrategy. This is expected to lead to a significant one-time purchase and ongoing inflows.

### Analyst Insights
Analysts, including Gautam Chhugani from Bernstein, believe that this inclusion will enhance MicroStrategy's visibility and may set the stage for potential inclusion in the **S&P 500 in 2025**. However, challenges remain due to its current profitability status.

### MicroStrategy's Bitcoin Strategy
Once primarily a software company, MicroStrategy has transformed into a **Bitcoin holding company**, accumulating **423,650 bitcoins** since 2020. CEO Michael Saylor has been vocal about using Bitcoin to bridge traditional capital markets with the crypto economy, employing strategies such as issuing **convertible notes** to fund its Bitcoin purchases.

### Market Reaction
The market has responded positively to the news, with MicroStrategy's stock reflecting the volatility often associated with Bitcoin. As the company continues to push its Bitcoin agenda, other firms are also beginning to explore similar strategies, showcasing a growing trend in the corporate adoption of cryptocurrency.

MicroStrategy’s rise and the upcoming Nasdaq change signal a pivotal moment for both the company and the broader cryptocurrency market.

MicroStrategy, the high beta play on the price of bitcoin, will join the Nasdaq 100 index. 

MicroStrategy Joins Nasdaq 100: What This Means for Bitcoin Investors

Cryptocurrency has been positioned on the digital frontier for some time now, promising financial freedom and, for some, a siren’s call for slipping beneath the government’s radar. With perceived promises of **anonymity** and **decentralization**, Bitcoin has attracted investors, innovators, and evaders.

**Frank Richard Ahlgren III** was one such enthusiast—an early adopter of Bitcoin who amassed millions in gains but neglected to pay over **$1 million in capital gains tax**. His belief that cryptocurrency’s **opacity** could shield him from the IRS proved to be his downfall.

Ahlgren’s [recent sentencing](https://www.justice.gov/opa/pr/early-bitcoin-investor-sentenced-filing-tax-returns-falsely-reported-his-cryptocurrency) of **27-months in prison** should stand as a stark reminder that the promise of anonymity in the digital world is often illusory—and untraceable laundering strategies, more often than not, prove to be anything but.

## Ahlgren and His Bitcoin Gains
Ahlgren wasn’t just a passive cryptocurrency investor; he was an evangelist for its potential to revolutionize finance and disrupt government control. As an early adopter, he began accumulating Bitcoin in **2011**—when the currency was still in its infancy. By **2017**, the value of his holdings had surged, and court documents revealed that he sold over **$4 million** in the cryptocurrency.

Through blogs and public forums, Ahlgren extolled Bitcoin’s anonymity and the financial freedom it offered. In one post, he reportedly noted how cryptocurrencies could mask income and capital flows, allowing individuals to evade taxation—effectively painting an enormous “audit me” target on his back in the process. Despite his technical knowledge and foresight, he underestimated how quickly government agencies would evolve to combat the anonymity he traded on.

## The Tactics
To keep his Bitcoin gains from the IRS, according to court filings, Ahlgren deployed a multi-layer strategy, combining cryptocurrency tools with classic methods of **evasion**. Each step was calculated to obscure his financial trail and, in so doing, reduce his taxable income.

First, Ahlgren made use of **mixers** and **tumblers**, tools designed to anonymize Bitcoin transactions. By pooling his Bitcoins with others’ holdings and redistributing them, these services made tracing the origin of funds more complex. He transferred his cryptocurrencies through a series of multiple wallets and intermediary “hops,” adding layers to the transaction history and leaving a trail that was difficult to trace.

When it ultimately came time to turn virtual currency into cash, he opted for **peer-to-peer cash sales**, avoiding exchanges that would report the transactions to tax authorities. These face-to-face cash trades left no digital record and, to his mind, minimized his visibility to regulators.

Ahlgren took it a step further. To evade bank reporting requirements, he engaged in **“structuring”**—that is, breaking large cash deposits into amounts just under the **$10,000 threshold** that would trigger mandatory currency transaction reports. He also inflated his cost basis of his Bitcoin purchases, claiming he had bought them at much higher prices than the market ever reflected.

Ultimately, the bookkeeping for this scheme proved too much for one person, so he deliberately misled his accountant, presenting false summaries of his Bitcoin transactions and indicating incorrect purchase prices and misclassified sales.

## The Unraveling
Ahlgren’s scheme relied on the anonymity of cryptocurrency and the assumption that his digital movements would go unnoticed. Unfortunately for him, those assumptions appear to have been incorrect.

The key to Ahlgren’s undoing was **blockchain analytics**. Despite Bitcoin’s popular reputation for anonymity, all transactions are recorded on a public ledger—the blockchain. By using sophisticated tracing software, investigators were able to piece together his digital trail and identify patterns, wallets, and transaction records even across mixers and multiple hops.

Plain old falsehoods in his tax filings also exposed him. For instance, he claimed purchase prices for Bitcoin far exceeding historical market values—a glaring inconsistency for an asset for which there is readily available historical market data.

Ultimately adding to the weight of evidence against him were his own words. His public writings, just as public as the Bitcoin blockchain, extolled the virtues of the latter’s anonymity. According to court documents, in one post he mused about how difficult a time the government would have taxing assets that cannot be found.

## The Lesson
Bitcoin’s price is surging—but Ahlgren’s story serves as a warning to anyone tempted to evade their tax obligations by hiding behind the perceived anonymity of cryptocurrency or taking guidance from so-called “experts.”

The public blockchain, once thought to be a technological black box, is now a treasure trove for investigators. Advanced investigation methods, and those utilizing artificial intelligence coming on the horizon, can trace transactions across wallets, mixers, and borders. Governments and agencies like the IRS are rapidly adopting and adapting these technologies, closing the sophistication gap between evaders and regulators.

The issue is not so much of whether tax authorities can catch a given evader with today’s methods—it is that they will eventually catch up. Regulators may lag behind but, with billions of dollars on the line, they have every incentive to innovate.

His belief that cryptocurrency’s opacity could shield him from the IRS proved to be his downfall.

From Bitcoin Enthusiast to Convicted Tax Evader: The Cautionary Tale of Frank Ahlgren

Chainlink’s cryptocurrency, **LINK**, has seen a remarkable **11% surge**, reaching a **nearly three-year high** of **$30.68** this week. This increase is indicative of a **renewed interest** in **decentralized finance (DeFi)**, fueled by **investor enthusiasm** and strategic partnerships with traditional finance institutions.

### LINK’s Price Surge
LINK had previously been fluctuating between **$9 and $12** for several months, but its recent performance has almost **doubled** its value since the beginning of the year. This surge can be attributed to the involvement of major investors, often referred to as **whales**. Notably, **World Liberty Financial**, associated with President-elect Donald Trump, purchased **78,387 LINK tokens** for approximately **$2.2 million** as part of a broader investment strategy in DeFi tokens like **Ethereum** and **Aave**.

### Partnerships and Market Interest
Chainlink's expansion in the DeFi space has been significant, with recent initiatives and partnerships driving up interest in its token. The company recently launched a **new protocol** designed to enhance communication between different blockchains, initially implemented on the **Ronin network**, which is tailored for gaming.

In addition to this, Chainlink has partnered with **Emirates NBD**, a major UAE bank, and **Coinbase's Project Diamond** to foster the adoption of digital assets among traditional finance entities. Moreover, Chainlink is collaborating with **SWIFT**, the global bank messaging system, to improve blockchain transaction capabilities.

### The Future of Chainlink
As Chainlink co-founder **Sergey Nazarov** stated, the integration of Chainlink into traditional finance and capital markets is becoming increasingly active, positioning LINK as a standard in both DeFi and TradFi sectors.

Chainlink’s partnerships with traditional finance institutions are driving investor interest.

Chainlink's LINK Token Skyrockets 11% as DeFi Gains Momentum

## Unveiling the Allegations

A group of investors is claiming that a **bitcoin mining company** accepted their **$33 million** investment without disclosing crucial information regarding the impending sale of its Texas facilities. This transaction, they argue, was not only a breach of trust but also a significant oversight that could have impacted their investment decisions.

## The Investors' Claims

The investors assert that they were misled about the operational status of the Texas facilities, which were reportedly on the verge of being sold to a much larger competitor. This lack of transparency has raised questions about the company's **ethical practices** and commitment to investor relations.

## Implications for the Cryptocurrency Industry

Such allegations highlight the ongoing challenges within the **cryptocurrency sector**, where issues of **transparency and trust** remain paramount. Investors are becoming increasingly vigilant about the disclosures made by companies in this rapidly evolving market.

## The Broader Context

This incident sheds light on the importance of **due diligence** in the cryptocurrency space, as investors must navigate a landscape filled with both opportunities and potential pitfalls. The outcome of this situation could set a precedent for how similar cases are handled in the future, emphasizing the need for clearer regulations and standards within the industry.

A group of investors say a bitcoin mining company accepted their $33 million assistance without revealing that its Texas facilities were on the verge of getting sold to a much larger competitor.

Bitcoin Investors Accuse Mining Company of Concealing Texas Sale

### Texas Proposes Strategic Bitcoin Reserve

DALLAS, Texas – On Thursday, Texas representative **Giovanni Capriglione** introduced a **new bill** aimed at establishing a **strategic bitcoin reserve** in the Lone Star State to combat **inflation and economic volatility**. This initiative will enable Texas to accumulate cryptocurrency within the state treasury through **bitcoin-denominated donations, taxes, or fees**, which must remain untouched for a minimum of **five years** before they can be sold or moved.

**Lee Bratcher**, president of the Texas Blockchain Council, emphasized that **no taxpayer funds** will be utilized to purchase bitcoin, ensuring a higher chance of the bill's passage. The bitcoin will be sourced from **donations by Texans, U.S.-based companies, and other existing state resources**.

**Kadan Stadelmann**, Chief Technology Officer of Komodo Platform, remarked on the proposal's alignment with Texas's financial ambitions, stating that the state aims to become a **global financial powerhouse**. He noted that Texas had previously decided to launch the **Texas Stock Exchange**, set to open next year in Dallas.

Stadelmann highlighted that, among other advantages, the reserve would empower Texas—home to over **30 million residents**—to formulate its own bitcoin strategy, akin to those of nations like **Bhutan and El Salvador**. He asserted that it won't be the stock exchange that positions Texas at the heart of the financial universe, but rather its **leadership in bitcoin reserves** and related matters.

The Texas legislature is slated to convene in **January**, but the bitcoin reserve bill must first undergo a **committee referral, public hearing, debate, and vote** before it can be passed by both chambers and sent to **Governor Greg Abbott** for approval. Stadelmann urged Texas to act swiftly, stating, "**Texas should want to be early and do it now**." He noted that with the rapid adoption of bitcoin, Texas would inevitably need to advance with a bitcoin reserve bill, whether now or later, as other states and nations establish their own reserves.

Texas, home to the world's eighth-largest economy, may create a bitcoin treasury fund to hedge against inflation.

Texas Eyes Bitcoin Reserve to Combat Inflation and Boost Economy

## A Major Breach of Trust

A **former Secret Service agent** has entered a guilty plea regarding the **theft of cryptocurrency** from an evidence vault located in Arizona. This incident raises serious concerns about security and trust within law enforcement agencies.

## Details of the Case

The individual, who was responsible for safeguarding evidence, exploited their position to access and steal digital assets. The implications of this case could lead to a reevaluation of protocols concerning how **cryptocurrency evidence** is handled by authorities.

## Impact on Cryptocurrency Security

This case highlights the vulnerabilities in the **cryptocurrency security framework** and the potential for abuse of power by individuals in positions of authority. It emphasizes the need for stricter controls and oversight in handling digital currencies within law enforcement.

![Cryptocurrency Security](https://cdn.cookielaw.org/logos/static/ot_company_logo.png)

A former Secret Service agent pleaded guilty last week to stealing cryptocurrency out of an evidence vault in Arizona.

Coinbase Faces Legal Battle Over Wrapped Bitcoin Controversy

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Coinbase Sued Over Wrapped Bitcoin Delisting

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Other Latest News

Exciting Changes Ahead: Palantir, MicroStrategy, and Axon Enterprise Join the Nasdaq 100!

MicroStrategy Joins Nasdaq 100: What This Means for Bitcoin Investors

From Bitcoin Enthusiast to Convicted Tax Evader: The Cautionary Tale of Frank Ahlgren

Chainlink's LINK Token Skyrockets 11% as DeFi Gains Momentum

Bitcoin Investors Accuse Mining Company of Concealing Texas Sale

Texas Eyes Bitcoin Reserve to Combat Inflation and Boost Economy

Shocking Betrayal: Former Secret Service Agent Admits to Cryptocurrency Heist in Arizona

Other Latest News

Exciting Changes Ahead: Palantir, MicroStrategy, and Axon Enterprise Join the Nasdaq 100!

MicroStrategy Joins Nasdaq 100: What This Means for Bitcoin Investors

From Bitcoin Enthusiast to Convicted Tax Evader: The Cautionary Tale of Frank Ahlgren

Chainlink's LINK Token Skyrockets 11% as DeFi Gains Momentum

Bitcoin Investors Accuse Mining Company of Concealing Texas Sale

Texas Eyes Bitcoin Reserve to Combat Inflation and Boost Economy

Shocking Betrayal: Former Secret Service Agent Admits to Cryptocurrency Heist in Arizona