JPMorgan Chase CEO Jamie Dimon said in a U.S. congressional hearing that crypto tokens, like bitcoin, are “decentralized Ponzi schemes.” He told lawmakers: “I’m a major skeptic on crypto tokens which you call currency.”
JPMorgan CEO Jamie Dimon Calls Crypto Ponzi Schemes
Jamie Dimon, the CEO of JPMorgan Chase & Co., shared his view about cryptocurrencies, naming bitcoin in particular, in a congressional hearing Wednesday.
Responding to a question by Representative Josh Gottheimer (D-NJ) about the rapid development of digital assets, Dimon emphasized the importance of separating cryptocurrencies from other innovations that he said are “real,” like blockchain, decentralized finance (defi), and “tokens that do something.”
The executive opined:
I’m a major skeptic on crypto tokens which you call currency, like bitcoin. They are decentralized Ponzi schemes.
“And the notion that it’s good for anybody is unbelievable,” he continued. The JPMorgan boss proceeded to reference that billions of dollars are lost each year through crypto, linking cryptocurrencies to crimes such as ransomware payments, money laundering, sex-trafficking, and theft. He emphasized that crypto is “dangerous.”
The JPMorgan executive also talked about stablecoins, which he said would not be problematic with proper regulation. “There’d be nothing wrong with a stablecoin, which is like a money market fund, properly regulated,” Dimon stated. Regarding blockchain, he affirmed that JPMorgan is “a big user of blockchain.”
A longtime bitcoin skeptic, Dimon has warned investors on several occasions to be careful about investing in cryptocurrencies, cautioning that they have no intrinsic value. He previously said bitcoin is worthless and questioned BTC’s limited supply. The JPMorgan chief, however, has repeatedly said that blockchain and defi are real. In May, the global investment bank said it expects increased blockchain use in finance.
Meanwhile, JPMorgan is offering some crypto-related investments, has its own JPM Coin, and has a lounge in the metaverse. JPMorgan’s analysts are also more bullish about bitcoin and cryptocurrency than the bank’s CEO. In May, analyst Nikolaos Panigirtzoglou published a report stating that the bank has replaced “real estate with digital assets as our preferred alternative asset class along with hedge funds.”
Dimon also recently shared his predictions about where the U.S. economy is headed. In August, he warned that something worse than a recession is coming. In June, he cautioned about an economic hurricane, advising individuals and businesses to brace for impact.
What do you think about JPMorgan CEO Jamie Dimon’s comments about cryptocurrencies, including bitcoin? Let us know in the comments section below.
Source: Featured Archives – Bitcoin News
South Korea Seeks to Freeze 3,313 Bitcoin Allegedly Linked to Luna Founder Do Kwon
South Korean prosecutors are seeking to freeze 3,313 bitcoins at two cryptocurrency exchanges allegedly tied to luna founder Do Kwon. The coins were moved soon after a South Korean court issued an arrest warrant for the Terraform Labs co-founder. Luna Foundation Guard has denied transferring the coins. Korean Authorities Ask Crypto Exchanges to Freeze Bitcoin […]
South Korean prosecutors are seeking to freeze 3,313 bitcoins at two cryptocurrency exchanges allegedly tied to luna founder Do Kwon. The coins were moved soon after a South Korean court issued an arrest warrant for the Terraform Labs co-founder. Luna Foundation Guard has denied transferring the coins.
Korean Authorities Ask Crypto Exchanges to Freeze Bitcoin
South Korean authorities have reportedly asked cryptocurrency exchanges Kucoin and Okx to freeze 3,313 bitcoins allegedly tied to Terraform Labs co-founder Kwon Do-hyung, also known as Do Kwon. The coins were transferred to the trading platforms soon after a warrant was issued for Kwon’s arrest in South Korea.
On Tuesday, an official at the Seoul Southern District Prosecutors’ Office confirmed to Bloomberg that requests have been sent to the two cryptocurrency exchanges to freeze the 3,313 BTC.
The coins were transferred to the trading platforms from a wallet allegedly linked to Luna Foundation Guard (LFG) that was created on Sept. 15, according to crypto researcher Cryptoquant. The researcher told the publication:
Cryptoquant specified new bitcoin addresses owned by LFG based on transaction patterns, adjacent flows and material non-public information.
However, Luna Foundation Guard denied the allegation Tuesday evening. The group tweeted its treasury’s bitcoin address, adding: “LFG hasn’t created any new wallets or moved BTC or other tokens held by LFG since May 2022.”
Do Kwon Says: ‘I’m Making Zero Effort to Hide’
The luna founder’s whereabouts are currently unknown. He was believed to be in Singapore but the Singapore police force said earlier this month that he is currently not in the city-state. Kwon has maintained that he is not “on the run,” tweeting Monday:
I’m making zero effort to hide. I go on walks and malls.
A South Korean court issued an arrest warrant for Kwon on Sept. 14. He is accused of fraud after the collapse of the cryptocurrency luna (now called luna classic (LUNC)) and stablecoin terrausd (UST). In addition, the country’s ministry of foreign affairs is reportedly planning to revoke his passport.
Moreover, Interpol has issued a Red Notice for the Terraform Labs co-founder. “A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action,” Interpol’s website details, adding that “Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence.”
Do you think Do Kwon transferred 3,313 bitcoins after his arrest warrant was issued? And, do you think Korean authorities should be able to freeze crypto at exchanges? Let us know in the comments section below.
Source: Featured Archives – Bitcoin News