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Leader of South Africa’s Largest Historical Bitcoin-Based Pyramid Scheme Convicted In Brazil, Receives R595,000 Fine.

The CEO of Mirror Trading International (MTI), Johann Steynberg, has been found guilty in Brazil of using a forged identity document. The judge imposed an aggravated sentence in light of the circumstances. The court proceedings also unveiled information about Steynberg’s lifestyle while in hiding in Brazil, indicating that he had allegedly acquired property under the false identities of two girlfriends.

Despite the gravity of his crime, Steynberg’s original three-year and six-month prison sentence was reduced to a monetary fine to be donated to a court-designated charity. Steynberg’s defense team has filed an appeal, arguing that his culpability is related to a smaller offense that warrants a shorter term. They claim that Steynberg’s conduct is punishable under Brazilian Penal Code Article 307 for assuming a fraudulent identity, although the state accused him under Article 304 of using counterfeit documents.

Simultaneously, the state prosecutor has filed an appeal, requesting a heavier sentence for Steynberg. While it has not been proved, it appears that the founder of South Africa’s greatest pyramid scam is still being held in preventative imprisonment while extradition processes are ongoing.

Attempts to obtain feedback from Steynberg’s associates and law enforcement were futile. MTI, a Bitcoin-based pyramid scheme, began in South Africa and has attracted participants from all around the world. MTI used network marketing strategies to recruit participants into the scheme while promising high profits on Bitcoin deposits.

In April, Acting Judge Alma de Wet of the Western Cape High Court declared MTI to be an illegal pyramid and Ponzi-type scam, cementing its illegal status. Clynton Marks, a 50% shareholder and former head of MTI’s referral program has asked for permission to appeal Alma de Wet’s verdict.

According to individuals familiar with MTI’s demise, over 46,000 bitcoins passed through the scam, valuing it at around R26 billion based on the current Bitcoin price of R565,000. According to liquidators’ records, when MTI failed, it was intended to hold around 22,222.548 bitcoins, which is almost R12.6 billion at current rates.

MTI has already surpassed the previous legendary Krion Ponzi scheme and Travel Ventures International (TVI) as the greatest pyramid or Ponzi scheme in South African history. While the exact worth of Africrypt is unknown, it is thought to be between R200 million and R1 billion. MTI was named the most serious cryptocurrency scam of 2020 by Chainalysis.

Johann Steynberg made his last public appearance before disappearing during a monthly MTI leadership Q&A Zoom call. MTI’s collapse occurred after a trip to Brazil in December 2020, along with complaints about delayed withdrawals. He was apprehended by the Goiás State Military Police team, Giro, in December 2021.

Steynberg allegedly used three false identities upon arriving in Brazil: “John,” Cleisson Veira da Silveira, and Edson Pereira de Almeida. During his arrest, Steynberg presented a false identity document named Cleisson Veira da Silveira, which did not match his appearance. Police also revealed that Steynberg had at least two girlfriends during his time in Brazil, one of whom witnessed him using the Cleisson identity.

Steynberg’s defense contests the events, suggesting unlawful evidence gathering by the police. They note the absence of arrest warrants against Steynberg in South Africa or any other country at the time of his arrest. Steynberg claims he bought fake IDs due to safety concerns in South Africa.

Steynberg’s lavish lifestyle was exposed in court documents, including the use of a helicopter for leisure, real estate transactions, and substantial money transfers using his forged identity. Steynberg’s guilty verdict resulted in a 3-year and six-month prison sentence, alongside a fine calculated from his wages. However, under Brazilian law, sentences under four years for non-violent crimes can be commuted to fines. Thus, Steynberg’s prison term was transformed into a charitable donation equivalent to twenty months’ wages. Despite this commuted sentence, Steynberg remains in custody as his extradition proceedings continue. Attempts to seek comments from various individuals, including Club Swan, yielded no response.

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Zimbabwe Central Bank Says Gold-Backed Tokens Set To Be Used For ‘Transactional Purposes’

The Reserve Bank of Zimbabwe (RBZ) has progressed significantly in preparing for the rollout of Gold-Backed Digital Tokens (GBDT) for transactional purposes. This initiative seeks to integrate gold tokens alongside the U.S. dollar in domestic transactions, providing retailers with a secure, convenient, and value-preserving medium of exchange.

Governor John Mangudya revealed plans for awareness programs focused on teaching the public about the benefits of GBDTs in the recently published mid-term monetary policy statement. For example, the Confederation of Zimbabwe Industries (CZI) has committed to updating its systems to accept GBDT-denominated cards.

The RBZ recently introduced gold-backed tokens in response to the local demand for U.S. dollars in May. Notably, just a few months post-launch, Governor Mangudya asserted the effectiveness of GBDTs as a potent instrument for monetary policy. He emphasized that the inherent divisibility of digital gold tokens allows accessibility and acquisition by individuals from diverse economic backgrounds.

Regarding the implementation of actual gold coins, the RBZ’s head stated that just a small fraction—769 gold coins, or around 2% of the total—were redeemed after the 180-day vesting period. This suggests that residents and companies are using actual gold coins as an alternate means of retaining value.

Concerning the central bank’s digital currency (CBDC), Governor Mangudya stated that a consumer survey revealed that residents were unaware of the proposed digital currency. However, a sizable 71.7% of respondents said they would support a CBDC if it were created by the central bank.

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NITDA And SiBAN Engage Stakeholders On Implementation Of National Blockchain Policy In Nigeria

The National Information Technology Development Agency (NITDA), in partnership with the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has successfully concluded a Stakeholders’ Policy Dialogue in Nigeria. The event aimed to foster discussions on how the country’s blockchain ecosystem can collaborate and thrive.

Kashifu Inuwa, the Director-General of NITDA, emphasized the significance of implementing the National Blockchain Policy in Nigeria. He highlighted that this move would not only enhance the nation’s digital economy but also expand financial inclusion, bolster security, ensure accountability, improve service efficiency, and generate job opportunities.

In his keynote address titled “Driving Sustainable Economic Growth and Development through the Adoption of Blockchain Technology,” Inuwa underscored the importance of technology-related dialogues. He explained that blockchain, being a decentralized technology, provides a secure way to record and verify information, rendering it tamper-resistant and trustworthy.

Inuwa pointed out the groundbreaking potential of blockchain to revolutionize industries, citing research by PricewaterhouseCoopers (PwC) indicating that it could contribute up to US$1.76 trillion to the global economy by 2030. He also highlighted that various governments, including those of Estonia, Georgia, the United Arab Emirates, Switzerland, and Singapore, are exploring blockchain’s potential to drive innovation, enhance service delivery, create jobs, and stimulate economic growth.

Inuwa assured that the National Blockchain Policy serves as a roadmap to facilitate the adoption of this transformative technology, fostering higher quality services in both the public and private sectors.

Nigeria, he added, is the first African nation to establish a Blockchain Policy. The objective behind this strategic initiative is to promote the use, integration, and adoption of blockchain across various sectors of Nigeria’s digital economy, enhancing efficiency, innovation, transparency, security, and trust.

Inuwa highlighted talent development, innovation, and adoption as the key areas in which the government will collaborate with stakeholders to harness blockchain’s potential. He stressed that focusing on talent development will attract and retain a skilled workforce, thereby enhancing innovation and the competitiveness of the national blockchain ecosystem.

The emphasis on innovation, Inuwa stated, will create an environment that encourages experimentation, provides resources for innovation, and addresses regulatory barriers. The focus on adoption aims to integrate blockchain into financial services, government, and corporate digital services.

The dialogue sought to develop a strategy for policy implementation, outlining the roles and responsibilities of various stakeholders. Inuwa expressed gratitude to the Federal Ministry of Communications & Digital Economy for its unwavering support in creating an enabling environment for stakeholders to promote the adoption of blockchain technology in Nigeria.

Engr Salisu Kaka, Acting Director of Digital Economy Development at NITDA, emphasized that blockchain technology has emerged as a transformative force globally, revolutionizing industries and unlocking new possibilities.

Obinna Iwuno, President of SiBAN, emphasized the collaborative implementation of the National Blockchain Policy, envisioning a blockchain-powered economy that supports secure transactions, data sharing, and value exchange across people, businesses, and the government. He stressed that this would enhance innovation, trust, growth, and prosperity for all Nigerians, positioning the country as a leader in the global blockchain ecosystem.

The two-day event, organized by NITDA in collaboration with SiBAN, featured diverse panel discussions addressing regulatory frameworks, governance models, privacy and security considerations, culminating in the presentation of a communique at the conclusion of the deliberations.

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Cardano Partners With Africa Blockchain Center To Launch A Training Program In Kenya


The African continent, renowned for its extraordinary diversity and untapped potential, is rapidly becoming a hub of blockchain innovation, with Cardano taking the lead. Cardano, a distinguished blockchain platform celebrated for its exceptional security measures and swift transaction speeds, is poised to extend its innovative protocols into Kenya through its most recent partnership endeavor.  In a recent announcement by Input Output Global (IOG), the formidable force behind the Cardano protocol revealed the strategic collaboration that seeks to nurture the next generation of intelligent contract developers in Kenya.

This intensive two-month training program, organized in collaboration with the Africa Blockchain Center, goes beyond a mere introduction to blockchain technology. The selected participants will gain an exceptional opportunity to interact with foremost experts in the field. They will receive hands-on instruction in Haskell programming, delve deep into Marlowe financial smart contracts, and become proficient in working with Plutus and Mithril contracts, among others.

The beauty of this initiative lies in its inclusivity. Cardano’s IOG, supported by its community, has meticulously crafted these operational protocols. By broadening the pool of technocrats and developers with hands-on expertise in blockchain, Cardano envisions an ecosystem where blockchain innovations seamlessly integrate into pragmatic real-world applications. This aligns perfectly with the broader global trend towards Web 3.0, an evolution set to redefine our understanding and utilization of the internet.

Amidst the array of blockchain protocols, Cardano has distinguished itself through a multitude of factors. Central among these is its foundation in rigorous academic and scientific research, ensuring a robust protocol that places security at the forefront. Moreover, its swiftness in transaction processing is a significant asset in a world where time translates into currency.

Yet, beyond these technical attributes, Cardano’s dedication to empowering the youth sets it apart. By focusing on youth empowerment, Cardano not only contributes to the community but also nurtures a generation that will engage with and shape the crypto sphere from multifaceted perspectives.

It’s worth noting that Cardano’s ongoing initiatives in Africa are not its inaugural endeavors. The platform boasts a track record of both humanitarian and technical projects aimed at enhancing the socio-economic landscape of the continent. This persistent commitment to bridging the digital divide in Africa underscores Cardano’s visionary outlook and unwavering commitment to fostering global inclusivity.

In reality, these groundbreaking initiatives accomplish more than elevating Cardano’s standing in the blockchain realm. They set a precedent and serve as a model for other top-tier blockchain protocols to follow suit. It’s a clarion call for other chains to transcend mere technological adoption and strive for meaningful integration that brings about positive changes in communities. A consensus is emerging within the blockchain sphere: protocols with diverse and extensive developer bases are bound to witness deeper and more holistic enterprise adoption. And through its latest strides, Cardano unmistakably positions itself as a frontrunner in this competitive race.

Cardano’s fresh partnership aimed at expanding Mithril’s reach in Kenya stands as a testament to its dedication to cultivating a new wave of blockchain developers in Africa. By placing emphasis on education and practical training, Cardano not only fortifies its ecosystem but also plants the seeds for a more inclusive and decentralized digital future, accessible to all. As Cardano continues to chart its course in Africa, the global blockchain community watches attentively, ready to learn, replicate, and actively participate in its transformative mission.

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EMURGO Africa Invests $250K in Changeblock

EMURGO Africa, the venture arm of EMURGO focused on Africa and the Middle East, has made a significant investment of $250,000 in Changeblock, a move that underscores their commitment to driving positive change within the carbon market. As a prominent entity behind the Cardano blockchain, EMURGO Africa’s investment not only signifies their financial backing but also their endorsement of innovative blockchain-based solutions in the region.

With a strong emphasis on sustainable development and environmental responsibility, EMURGO Africa’s partnership with Changeblock aims to catalyze transformative change in the carbon market landscape.

Ahmed M. Amer, CEO of EMURGO Africa and Executive Director of EMURGO MEA, emphasized the alignment of this investment with their mission to promote climate change reversal technologies on Cardano’s environmentally-conscious blockchain platform.

“Our investment in ChangeBlock is in line with our commitment to foster the development of climate change reversal technologies and impactful solutions on Cardano’s third-generation and environmentally-sustainable blockchain,” he said.

Ahmed M. Amer further emphasized, “Together with ChangeBlock, we hope to bring the world’s regulators, business leaders, and global changemakers to foster and double down on their commitment to a global net zero strategy that is both economically viable and monetizable.”

Billy Richards, CEO of Changeblock, echoed the shared vision between EMURGO Africa and Changeblock, stating, “Our shared vision with EMURGO Africa is to turn sustainable action into a valuable, tradeable asset for Africa. By leveraging the power of blockchain, we’re creating a transparent and efficient market that incentivizes sustainable practices and attracts climate-focused investments.”

EMURGO Africa’s investment in Changeblock is designed to fortify the growth of innovative solutions within the carbon market. This strategic partnership bolsters Changeblock’s position in the realm of carbon market technology while aligning with EMURGO Africa’s overarching goal of propelling blockchain adoption for the betterment of Africa and the Middle East, both in terms of economic advancement and social progress.

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Paypal Launches Dollar-Backed Stablecoin


Paypal‘s entry into the stablecoin arena is generating significant online discussions as the financial giant unveils its dollar-backed stablecoin. In an interview with Bloomberg, Paypal CEO Dan Schulman shared his vision for integrating this new offering, named “PayPal USD (PYUSD),” into the broader payments infrastructure. 

The stablecoin, issued by Paxos Trust Co., derives its support from U.S. dollar deposits, low-risk assets, and short-term Treasury securities, ensuring a strong connection to the U.S. dollar. With plans to gradually roll out to Paypal’s U.S. customer base, PYUSD aims to reinforce Paypal’s dominance in digital transactions by facilitating swift and cost-effective transfers without intermediaries. The launch follows earlier reports in February that indicated regulatory concerns had temporarily halted Paypal’s stablecoin project, with the company committing to close collaboration with financial regulators before proceeding.

Initially, PYUSD is set to facilitate cryptocurrency trading and in-game/app-based payments. As revealed by Bloomberg, Paypal envisions a future where the stablecoin enables affordable remittances and micro-payments. The ability to transfer PYUSD between Paypal and Venmo wallets will be complemented by Paxos’ provision of reserve reports and third-party attestations, adding to the stability and credibility of the new stablecoin offering.

Meanwhile, the two stablecoins issued by Paxos, BUSD and USDP, have seen their supplies decline considerably over the past 12 months. BUSD’s supply dropped by 15.6% over the past 30 days and USDP shrank by 34.1% this month

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Kenyan Police Raids Worldcoin Warehouse In Nairobi

Recent reports from local news organizations have revealed that Kenyan police have carried out a raid on the Nairobi warehouse belonging to Worldcoin, a tech company focused on digital identity verification. During the operation, documents and machinery were confiscated by the police.

Immaculate Kassait, who serves as the commissioner of Kenya’s Office of Data Protection, has alleged that Tools for Humanity, the parent company of Worldcoin, failed to provide accurate information about its intentions when registering in Kenya. According to media sources, Kassait stated that the company’s true motives were not properly disclosed. The confiscated data from Worldcoin has been taken to the headquarters of the Directorate of Criminal Investigations for further analysis, as per the reports.

Worldcoin, co-founded by tech entrepreneur Sam Altman, who is also the CEO of OpenAI, has a vision to revolutionize online identity verification using technologies such as iris scans, artificial intelligence, and zero-knowledge proofs. The company aims to establish a unique and verifiable human presence on the internet. Authenticated users are eligible to receive Worldcoin tokens as grants. Moreover, developers can leverage this identity protocol to create applications and incorporate a wallet for the distribution of Worldcoin tokens.

The launch of the project in July introduced a mechanism where users could receive Worldcoin tokens through airdrops in exchange for undergoing scans. However, the project has encountered difficulties in Kenya.

Reports from Kahawatungu, a media outlet, detail that officers, assisted by officials from various agencies, executed a search warrant at the company’s offices along Mombasa Road. The officers forcibly entered the premises and reportedly seized machines believed to store data collected by Worldcoin.

In recent developments, the Ministry of the Interior suspended the operations of the project in Kenya. Eliud Owalo, Kenya’s minister for the digital economy, initially stated that the ODPC had engaged with Worldcoin since April and had determined that the company’s activities aligned with the country’s data protection laws. Subsequently, the ODPC released a statement indicating that a preliminary review had raised legitimate regulatory concerns regarding the project.

Beyond Kenya, authorities in the United Kingdom, France, and Germany are also examining the Worldcoin project and its implications.

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Crypto Market On Edge As Bitcoin’s Boring Price Action Continues

Bitcoin’s price has been relatively stable over the weekend, indicating uncertainty among traders about the next directional move. However, analysts note that the current consolidation phase could lead to increased volatility in the future. Some analysts believe that the increase in exposure by Bitcoin whales could be a positive sign for an upcoming bull move, possibly in September when summer seasonality comes into play.

While Bitcoin experienced significant gains in the first months of the year, major altcoins struggled to keep up. The current consolidation in Bitcoin’s price presents an opportunity for select altcoins to catch up and potentially perform well in the near term.

Analyzing the charts, Bitcoin’s price is currently caught between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861, with the bears having a slight advantage based on the downsloping 20-day EMA and the negative RSI. A break below the support zone could lead to a downward move towards $26,000, while a rebound and break above the 50-day simple moving average ($29,840) might indicate the start of a recovery toward the overhead resistance zone between $31,804 and $32,400.

Shiba Inu (SHIB) has recently broken and closed above the overhead resistance at $0.0000085, suggesting the possibility of a new uptrend. The RSI entering the overbought territory indicates a potential for minor correction or consolidation. If the bulls hold ground and break above $0.000010, the pair may surge to $0.000012 and then $0.000014.

Uniswap (UNI) is in a correction phase, but the bulls are attempting to support the price near the 20-day EMA ($6.04). A rebound off this level could lead to a rise towards $6.70 and $7.50. On the other hand, a sustained move below the 20-day EMA might indicate the end of the up-move and lead to a potential fall toward the 50-day SMA ($5.58).

OKB (OKB) has been moving within a range between $38 and $59, and the recent move above the downtrend line indicates a possible end to the short-term downtrend. The 20-day EMA turning up and the RSI in the positive territory indicate the bulls’ upper hand. A push towards $48 and $50 is possible, but a break below the downtrend line could bring further weakness and a potential slump to $41.

Overall, the cryptocurrency market is in a phase of consolidation, and traders should closely monitor these key levels and indicators to anticipate potential breakouts or continuation of the current trends.

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Worldcoin CEO Responds To Token Launch Complaints


Crypto veterans are expressing their frustration with the recent release of the WLD token by Worldcoin, a crypto project co-founded by Sam Altman.

The launch of the identity-focused crypto project’s WLD token took place on July 24 and garnered over 2 million sign-ups. However, Worldcoin, its market-making partners, and the exchanges listing WLD have all faced criticism regarding the airdrop process.

Matt Batsinelas, the founder of Glass Markets, raised concerns about the distribution of circulating tokens, claiming that around 95% of them were held by market makers. He argued that market makers, with their short-term incentives, could potentially impact the token’s price negatively compared to long-term stakeholders such as team members and venture capitalists.

Critics are particularly focused on the “low float” structure of the token launch, which they fear may artificially inflate the price initially, only to see it crash later when insiders’ tokens, given to team members and investors, are unlocked.

Worldcoin’s whitepaper stated that the launch would have a maximum of 143 million WLD tokens in circulation, out of a total supply of 10 billion. However, due to infrastructure issues during the opening week, the actual distribution was considerably lower. The whitepaper indicated that 43 million tokens went to verified users, while 100 million were lent to five market makers operating outside the U.S. for a three-month term.

In defense of the WLD rollout, Alex Blania, CEO of Worldcoin’s main developer, Tools for Humanity, acknowledged that they expected criticism over the low float but believed it was necessary to achieve their goal of reaching billions of people. Blania argued that distributing a significant percentage of the circulating supply would be unfair and impractical.

Worldcoin did not respond to requests for comments regarding the WLD launch.

Upon its launch, WLD’s token valuation surged to $28 billion but has since fallen to $23 billion. The token’s price started at over $3 but dropped below $2 after a day of trading, currently resting at $2.30 according to CoinGecko.

Concerns were also raised about the role of market makers, who provide liquidity for trading new tokens. Some critics expressed displeasure at the token launch, arguing that market makers, exchanges, and venture capitalists should be held accountable for their actions. They believed that the launch strategy was short-sighted and unethical.

After three months, Worldcoin’s market-making partners are required to either repay the WLD loans or purchase the tokens at a predetermined price, according to the project’s whitepaper.

Batsinelas claimed that market makers received WLD token options with a buyback clause, incentivizing them to maintain a high token price at launch. He argued that this low float and high fully diluted valuation created a misalignment between the project, retail participants, and market makers.

Blania, however, refuted the idea that market makers were incentivized to maintain a certain price for WLD and stated that the contracts with market-making partners were made public. He explained that the foundation aimed to provide short-term liquidity to prevent extreme price spikes and crashes, a phenomenon seen historically with many projects.

Ultimately, the goal at launch was to have market makers dampen large spikes in interest, according to Blania.

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Web3 Developers Remain Resilient Despite Declining NFT Trading Volume

Non-fungible token (NFT) trading has faced challenges in recent months, but the Web3 development community remains optimistic about the technology’s future.

According to Alchemy’s latest Web3 Development Report, NFT trading volume declined by 41% in the second quarter of 2023. However, during the same period, there was a significant increase in the deployment of smart contracts, with 5.9 million smart contracts being deployed across Ethereum Virtual Machine (EVM)-compatible networks like Ethereum, Arbitrum, Optimism, and Polygon. This marks a remarkable 302% rise since Q1 and an astonishing 1,107% increase compared to the second quarter of 2022.

Furthermore, Q2 saw the installation of 26.8 million Ethereum software developer kits (SDKs), a 7% uptick from the previous quarter.

While not all the new smart contracts or SDK installations are necessarily dedicated to NFTs, the continued development activity indicates positive momentum for Web3’s growth and its journey towards widespread adoption. Despite the bearish market conditions, Ethereum’s price has risen by 12% since the previous year.

According to Blake Tandowsky, a growth analyst at Alchemy, Q2 2022 witnessed a peak in NFT trading volumes among whales, but the number of new users entering the market has since slowed down. However, the emergence of various NFT use cases, such as in gaming, has fueled developers’ enthusiasm to build on the blockchain.

Tandowsky noted that while there was strong growth in new users during Q2 2022, sustaining that level of growth has been a challenge. This has prompted a call for additional use cases for NFTs beyond their traditional JPEG iterations, paving the way for innovative future applications.

The report highlighted several noteworthy use cases for Web3 during the last quarter. These included Nike’s Our Force 1 collection drop, the expansion of the decentralized social media platform Lens Protocol, and Google Play’s support for games integrating NFTs.

With the ability for developers to deploy certain integrations with decentralized apps (dapps), Tandowsky emphasized the positive impact on gaming, NFTs, and the entire blockchain ecosystem, as it reduces barriers and friction in deploying dapps.

Despite ongoing efforts to mainstream Web3 and NFTs, trading volume for NFTs has seen significant fluctuations since the start of 2023. In March, the trading volume reached a peak of $2 billion, which had not been seen since the Terra death spiral. However, in mid-May, the volume was on track to drop below $1 billion, the lowest level since January. Additionally, popular NFT collections like Azuki and Bored Ape Yacht Club have experienced substantial declines in value from their previous bull market highs.