Daily Crypto News | June 17th, 2022

1. Elon Musk Facing $258B Lawsuit for Promoting Dogecoin.

Recently, a federal court in Manhattan has filed a class-action lawsuit against Elon Musk and his 2 firms Tesla, SpaceX. Both of them are being sued for $258 billion over claims that they are engaged in a crypto Ponzi scheme by promoting dogecoin cryptocurrency. The lawsuit states that Musk and his companies falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all.

According to the court document, Johnson is the victim in American who said to be defrauded out of money by defendants dogecoin crypto pyramid scheme. He claimed that Musk, Tesla, and Spacex constitute an illegal racketeering enterprise to inflate dogecoin’s price.

Johnson is seeking to represent a class of crypto investors who have lost money trading in dogecoin since April 2019. He is asking for $86 billion in damages and triple damages of $172 billion.

2. Kazakhstan: Registered CEX can Open Local Banks’ Account.

Officially, Kazakhstan’s Government has approved regulations that will form interactions between authorized coin trading platforms and traditional financial institutions. The new rules will allow registered cryptocurrency exchanges (CEXs) to have bank accounts in the country.

Crypto exchanges registered at the Astana International Financial Center (AIFC) to be serviced by local banks in Kazakhstan. The regulations have been adopted by a working group comprised of representatives of the Ministry of Digital Development, the central bank, financial regulators, as well as members of the financial and digital asset sectors, the ministry announced.

This is an initiative part of a project aimed at introducing a regulatory framework that will facilitate the development of Kazakhstan’s potential as a regional crypto hub. It will be implemented as a pilot throughout 2022 with the participation of crypto trading platforms licensed by the AIFC.

3. Celsius is Targeted by 5 States.

This week, Celsius Network has suspended customers’ withdrawals. Soon, securities regulators in 5 US states have set their sights on this crypto lending company. The 5 states include Texas, Alabama, Kentucky, New Jersey, and Washington which are making it a priority to investigate the crypto lender.

In a blog post, Celsius told over 1.7 million customers that it would pause withdrawals, swaps, and transfers between accounts, due to extreme market conditions. Right after that, Celsius’ native token $CEL plunged 70% in one hour from $0.49 to $0.15, according to CoinMarketCap.

On Wednesday, Celsius CEO Alex Mashinsky broke a three-day silence and took to Twitter to say that the company is focused on its customers’ concerns. Meanwhile, Celsius began hiring restructuring attorneys from the law firm Akin Gump Strauss Hauer & Feld LLP for financial guidance.

4. Circle Launches 2nd Stablecoin Backed by the Euro.

Circle’s CEO Jeremy Allaire announced that the company has successfully launched a new stablecoin pegged to the euro (EUR). He said that the new $EUROC token is now live on the Ethereum network and will be available to mint and redeem on June 30th.

This move followed Tether Limited, which introduced the euro stablecoin called $EURT in August 2016. There’s currently €195.99 million worth of Tether’s EURT and roughly $7 million in global trade volume during the past 24 hours.

Allaire details that the new EUROC is fully regulated and will follow the same compliance framework as USDC. The CEO believes that $EUROC will expand payment opportunities and also bolster trade finance and commerce as well.

5. President of Panama says NO again to crypto bill.

Panama’s President Laurentino Cortizo has turned down ‘crypto’ Bill No. 697 saying it requires more work to better fit Panama’s financial regulations. Local media outlet La Prenda reported the President wrote it’s imperative for the cryptocurrency laws conform to new regulations recommended by the Financial Action Task Force (FATF) outlining “fiscal transparency and prevention of money laundering.

President Cortizo has previously described the legislation as an “innovative law”, and indicated approval of certain aspects of the bill, but has said possible illicit uses of cryptocurrencies needed addressing.

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