Saylor gets sued, Crypto.com drops $495M sponsorship and other news


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A week in review: August 28–September 3

We've selected the hottest materials of the past week for you to stay up to date with the latest crypto news:

#1. DC Attorney General sues Michael Saylor and MicroStrategy for tax evasion

MicroStrategy co-founder Michael Saylor faces charges of evading United States income taxes he allegedly incurred while living in Washington, DC. The office of the region's attorney general, Karl Racine, has sued Saylor and MicroStrategy on claims that the firm helped Saylor evade over $25 million in DC income tax. The charges, stemming in part from an amendment to DC's False Claims Act encouraging whistleblowers to report tax evasion, mean Saylor could see $75 million in penalties.

#2. Crypto.com backs out of $495M sponsorship deal with UEFA Champions League: Report

Crypto.com has decided not to go through with a $495 million sponsorship agreement in response to possible regulatory issues. The sponsorship deal with the Union of European Football Associations (UEFA) would have seen Crypto.com advertised in the UEFA Champions League for five seasons. The crypto exchange was reportedly in sponsorship talks after the Champions League removed Gazprom, an energy company owned by the Russian state, as a sponsor. Crypto.com already has several high-profile advertising efforts under its belt, such as a commercial starring American actor Matt Damon.

#3. Central African Republic court says new $60,000 citizenship-by-crypto-investment program is unconstitutional

In July, the Central African Republic (CAR) launched its Sango hub — a new crypto-focused initiative aimed at expanding the adoption of Bitcoin and creating a special economic zone in the Metaverse. The initiative also included the creation of a Bitcoin-backed digital asset called Sango that also allowed foreign nationals to purchase citizenship in the country for $60,000 in crypto, with an equivalent amount of Sango tokens held in collateral for five years. The CAR's Constitutional Court deemed the efforts unconstitutional, however, noting that citizenship does not have a price tag.

#4. Prediction of the week. Bitcoin squeeze to $23K still open as crypto market cap holds key support

For most of this week, Bitcoin could not decide whether it wanted to stay above or below $20,000, trading north and south of the level numerous times, according to Cointelegraph's BTC price index.

In a Friday tweet, pseudonymous Twitter user "il Capo Of Crypto" noted that a possible short squeeze could occur if BTC rose above the $20,700-to-$20,800 price zone. Pending a break of this level, Bitcoin could then hit between $22,500 and $23,000. On the flip side, dropping below $19,500 would likely take the squeeze off the table, especially if the asset continued to drop below $19,000.

#5. FUD of the week. FBI issues alert over cybercriminal exploits targeting DeFi

This week, a public service announcement from the United States Federal Bureau of Investigation (FBI) cautioned the public over a proliferation of decentralized finance (DeFi) exploits, stating that those interested in DeFi should be careful. The agency also noted that DeFi platforms should conduct code audits to check for weaknesses. Dwarfing totals from 2020 and 2021 combined, nefarious actors have pilfered more than $1.6 billion via DeFi exploits so far in 2022 per data from CertiK, a blockchain security company.

#6. FUD of the week. Sneaky fake Google Translate app installs crypto miner on 112,000 PCs

The crypto and technology sectors are often riddled with tech traps and scams. One particular effort, ongoing since 2019, is particularly tricky. A certain type of malware named "Nitrokod" sits hidden within counterfeit computer apps and starts mining Monero (XMR), but only after a few days have passed. The malware lies within convincing versions of fake apps, such as a Google Translate app that boasts numerous positive reviews online. An official Google Translate desktop app does not even exist, however, but this malware-infused app has become a top search result. Nitrokod malware has affected over 100,000 devices spanning almost a dozen countries.