Arrests, Hackers, and Vaccine Concerns

Originally published at: Arrests, Hackers, and Vaccine Concerns – Peak Prosperity

In a significant development in the cryptocurrency world, the founders of Bitcoin mixer Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have been arrested by US authorities on charges of money laundering and operating without a money transmitting license. The wallet, accused of facilitating over $2 billion in illicit financial transactions, has seen its operations halted, with its servers and domain seized. This event has ignited a debate within the crypto community about the balance between financial privacy and regulatory oversight, highlighting the ongoing tension between privacy advocates and authorities aiming to curb illegal activities in the digital currency space.

Meanwhile, the Federal Deposit Insurance Corp. (FDIC) is contemplating new measures to increase scrutiny over investment companies seeking significant stakes in banks. This move underscores a growing concern among regulators about the influence of non-banking entities on the financial sector. Although specific proposals were tabled for further discussion, the FDIC’s actions signal a potential shift towards tighter regulatory oversight in the banking industry, reflecting an ongoing reassessment of the roles and risks associated with investment firms in the financial ecosystem.

In the realm of financial stability, the G20’s Financial Stability Board (FSB) has recommended the adoption of “bail-in” bonds among other tools to ensure the resilience of clearing houses in the event of a failure. This initiative aims to protect the financial system without resorting to taxpayer-funded bailouts, marking a significant step in the post-2007-09 financial crisis regulatory reforms. The FSB’s guidelines emphasize the importance of having mechanisms in place to maintain the continuity of critical financial services, highlighting the interconnectedness of global financial markets and the need for robust safeguards against systemic risks.

On the geopolitical front, U.S. lawmakers have urged the Internal Revenue Service (IRS) to investigate the financial ties between China and groups organizing anti-Israel protests in the United States. This request reflects growing concerns over foreign influence in domestic affairs and the potential for adversarial nations to exploit financial networks to sway political activities. The investigation aims to uncover whether such groups are receiving foreign funding in violation of U.S. laws, spotlighting the broader issue of transparency and national security in the context of international financial transactions.

Adding to concerns about China’s global activities, FBI Director Christopher Wray has warned of the potential for Chinese hackers to launch attacks on U.S. critical infrastructure. The campaign, known as Volt Typhoon, has been linked to efforts to infiltrate American companies and could pose a significant threat to national security. Wray’s comments underscore the escalating cyber tensions between the U.S. and China, with implications for both countries’ preparedness and response strategies in the face of potential cyber warfare.

In health news, a study published in the medical science journal Cureus by Japanese scientists has raised alarms over the potential adverse effects of the COVID vaccine, particularly concerning an increase in cancer mortalities. The research suggests a correlation between mass vaccination and a rise in certain types of cancer, proposing a mechanism involving the vaccine’s spike protein and its interaction with estrogen receptors. While the study calls for further investigation, it contributes to the ongoing debate over the vaccine’s long-term safety and efficacy, emphasizing the need for comprehensive research and transparency in public health initiatives.


Bitcoin Mixer Samourai Wallet Founders Arrested by Feds: A Blow to Cryptocurrency Privacy

The U.S. Attorney’s Office of the Southern District of New York alleges that the wallet conducted more than $2 billion in unlawful financial activities, with over $100 million specifically traced to money laundering from notorious dark web markets such as Silk Road and Hydra Market.

Source | Submitted by 0007

FDIC Considers New Regulations for Investment Companies’ Influence in Banks

The regulator debated on Thursday competing proposals to bolster scrutiny of influence that investment companies exert over bank holding companies.

Source | Submitted by Shplad

Regulators Urged to Use “Bail-In” Bonds to Deal with Failed Clearing Houses

Regulators must equip themselves with tools such as ‘bail-in’ bonds to deal quickly with a failed clearing house for stocks, bonds or derivatives without having to call on taxpayers for cash, the G20’s risk watchdog said on Thursday.

Source | Submitted by Redneck Engineer

Lawmakers Call for IRS Investigation into Chinese Funding of Anti-Israel Protests

“Not only do these activities raise serious national security concerns, but they also raise questions about whether organizations like this receive foreign funding from America’s adversaries and whether the Internal Revenue Service (‘IRS’) is conducting oversight of entities like these,” said the letter sent by lawmakers to IRS commissioner Daniel Werfel.

Source | Submitted by bcoop

Chinese Hackers Pose Serious Threat to U.S. Critical Infrastructure, Warns FBI Director

The Chinese are well down the road to being able to shut down the electrical grid, turn off the water, and turn off our communications.

Source | Submitted by bcoop

Shocking Study Reveals Increased Cancer Mortality After Third COVID Vaccine Dose

In plain English, this study revealed the mRNA COVID jab is likely the cause of the extra deaths that occurred in Japan.

Source | Submitted by PhilH


Regulators Urged to Use “Bail-In” Bonds to Deal with Failed Clearing Houses

Over on Telegram, Ed Dowd shared this link and commented:
“More financial bread crumbs to follow towards something that doesn’t sound wholesome to me. “

I take this as a sign of another step closer to using bail-in legislation.

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Heads up!

Like clockwork, the Really Bad News is no longer hidden on page 19 of the paper, it gets released after 5pm EST on Fridays. Either way the lede gets buried with the reporting pause until Monday morning.

So looks like bank failures are back in fashion:

Giddy up!


What does this mean?

They take my money in the bank or they take my stocks if the system fails?

The article reports on a specific bank failure, which is consistent with the idea that many banks are at risk. I expect to see a rising number of bank failures going forward. Depositors should be kept whole so long as the failure count is low enough.

Above that level (and I don’t know what the level is), extraordinary measures would be taken. Perhaps a bail in but I suspect the US would resort to money printing / QE / TBFP to throw money at banks.

At some point the whole system goes down. Not sure what happens then.

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The FDIC insures deposits up to a certain limit, which is all fine and good when the system is working, but if too many banks start to fail then this all falls apart. Depositors have basically been moved to last in line when it comes to being made whole if there is systemic financial collapse. Check out Chris’s series on the Great Taking to see just how bad it could get. We’ll be talking about a number of measures you can take to prepare yourself at our upcoming event in June.