Russian President Vladimir Putin’s adviser, Dmitry Kobyakov, accused the US of orchestrating a crypto strategy to eliminate its $35 trillion national debt through the manipulation of stablecoins.

During his speech at the Eastern Economic Forum on Sept. 6, Kobyakov claimed that Washington seeks to “rewrite the rules of the gold and crypto markets” as alternatives to traditional currency systems while addressing declining dollar confidence.

The debt problem

The adviser drew parallels to historical US debt strategies from the 1930s and 1970s, arguing America plans to solve financial problems “at the world’s expense.”

He stated:

“The US plans to solve its financial problems at the world’s expense—this time by pushing everyone into the ‘crypto cloud’. Over time, once part of the US national debt is placed into stablecoins, Washington will devalue that debt.”

He described a multi-stage process where the US would transfer its currency debt into crypto instruments before implementing devaluation.

Kobyakov characterized this as a deliberate scheme to eliminate sovereign obligations through digital asset manipulation:

“They have a $35 trillion currency debt, they’ll move it into the crypto cloud, devalue it—and start from scratch.”

The accusations come amid increased global interest in stablecoins, propelled by thriving regulation in the US. In July, President Donald Trump signed the GENIUS Act into law, creating a regulatory framework for these dollar-pegged tokens.

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Strategic tool

However, Kobyakov positioned crypto adoption as a strategic tool rather than a technological innovation, suggesting that the US promotion of digital assets serves debt management objectives.

The adviser warned that global crypto enthusiasm enables Washington’s alleged financial restructuring plans.

The Eastern Economic Forum, held annually in Vladivostok, serves as Russia’s primary platform for discussing Asia-Pacific economic cooperation and alternative financial systems.

Kobyakov’s remarks reflect ongoing Russian criticism of US monetary policy and dollar dominance.

The accusations align with Russian narratives challenging Western financial infrastructure following international sanctions. Moscow has promoted alternative payment systems and criticized dollar-based settlement mechanisms since 2014.

Kobyakov’s claims reflect broader tensions over global financial architecture as countries explore central bank digital currencies and alternative monetary systems.

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Gemini co‑founder Tyler Winklevoss said JPMorgan froze the crypto exchange’s effort to regain banking services after he accused “banksters” of trying to strangle fintech and crypto firms.

In a thread on July 25, Winklevoss claimed the bank told Gemini that his earlier tweet had prompted a pause in re‑onboarding, an effort underway since JPMorgan off‑boarded the company during what he calls “Operation Choke Point 2.0.” 

He added:

“They want us to stay silent while they quietly try to take away your right to access your banking data for free […] We will continue to call out this anti‑competitive, rent‑seeking behavior.”

The cause

The July 19 post that he said “struck a nerve” accused large banks of fighting the US Consumer Financial Protection Bureau’s (CFPB) open‑banking rule under Section 1033 of the Consumer Financial Protection Act. 

That rule, still being implemented, would guarantee consumers free third-party access to their account data through aggregators such as Plaid.

Plaid is a conduit many Americans use to connect their checking accounts with crypto platforms, including Gemini, Coinbase, and Kraken.

Winklevoss alleged that JPMorgan and other institutions want to replace free data feeds with “exorbitant fees,” a shift he warned would “bankrupt fintechs” and stifle the on‑ramp that lets retail customers fund crypto purchases with dollars.

Strangling the crypto industry

He framed the banks’ lawsuit against the CFPB as an example of “egregious regulatory capture” and cast the fight as a direct challenge to President Donald Trump’s stated goal of making the US “the crypto capital of the world.”

JPMorgan has not publicly addressed Winklevoss’s allegations.

Several exchanges lost long-standing accounts in 2023 and early 2024 amid heightened regulatory scrutiny, forcing them to seek new partners or international workarounds.

Gemini, which previously used JPMorgan for corporate banking, has been courting new and former providers as it expands its international derivatives venue and bids for broader US offerings.

Some crypto voices, such as CoinMetrics co-founder Nic Carter, link these actions to a series of enforcement actions by banking authorities under the former President Joe Biden administration, known as Operation Chokepoint 2.0.

Federal Deposit Insurance Corporation (FDIC) Acting Chairman Travis Hill acknowledged a targeted effort from the agency towards “debanking” crypto firms. 

During a speech in January, he deemed such actions “unacceptable.”

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Stocks and crypto lost a little bit of ground on Friday as President Donald Trump accused China of violating a recent trade agreement.

Trump says on Truth Social that he had previously decided to make a deal with China because his tariffs were plunging the Asian giant into “grave economic danger.”

But according to Trump, his efforts did not pay off, as he says China breached a deal with the United States.

“I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen. Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH the US. So much for being Mr. NICE GUY!”

The Nasdaq Composite dropped by 0.32% on Friday, while the S&P 500 traded closer to even, only slumping by 0.0081%.

Crypto, on the other hand, fell further, with the overall digital market cap dropping by more than 4%. Bitcoin (BTC) fell by more than 1%.

The Trump Administration announced multiple waves of tariffs on China in early April, which China responded to with retaliatory measures. Earlier this month, the White House announced that it had reached a deal with China to suspend and lower many of those tariffs, which kickstarted the equities market.

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The decision, which effectively restores the original supply to 100 billion CRO, has led to widespread backlash among investors who believed the burn was permanent.

Community Outrage and Allegations of Betrayal

ZachXBT, known for exposing unethical practices in the crypto space, did not hold back in his criticism. In a post on X (formerly Twitter), he stated:

“CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community’s wishes as you control the majority of the supply.”

This comment was a direct response to Marszalek’s announcement that Crypto.com had partnered with Trump’s Truth Social to launch a series of ETFs, including one featuring CRO.

Expanding on his criticism, ZachXBT pointed out that investors had bought CRO under the assumption that its supply was permanently capped at 30 billion tokens.

The sudden re-issuance of 70 billion tokens has dramatically altered the tokenomics, leading to accusations that Crypto.com has engaged in misleading practices.

A user reacted to ZachXBT’s post with a simple “Damn…,” to which he responded:

For many in the crypto space, the issue goes beyond dilution. Token burning is widely regarded as an irreversible action that enhances scarcity and increases value.

Crypto.com’s decision to reverse a previous burn breaks this fundamental principle.

The Strategic Reserve and ETF Ambitions

Unchained Crypto, who was among the first to report the issue, noted that Cronos Labs, a Crypto.com subsidiary, decided to reissue 70 billion CRO as part of a broader plan to establish a “Strategic Reserve.”

The stated goal is to fund growth initiatives, including launching the world’s first CRO-backed exchange-traded fund (ETF).

However, critics argue that the move is primarily about control and profit. The re-issuance effectively grants Crypto.com and Cronos Labs the power to manipulate supply and demand at will.

The decision was made unilaterally, with Crypto.com holding enough voting power to push it through despite widespread opposition.

CRO’s price performance further amplifies the controversy. The token is currently down 23% in the past year and 51% from its all-time high in November 2021.

While Crypto.com’s leadership insists that the move is necessary to drive institutional adoption, many investors see it as a blatant cash grab that could ultimately damage CRO’s long-term value.

Crypto.com’s push for an ETF follows the success of Bitcoin and Ethereum ETFs. However, CRO’s prospects remain uncertain.

The token ranks 56th by market capitalization, far behind other digital assets like Solana and XRP that are also seeking ETF approval.

Growing Unethical Practices In the Crypto Space

In relation to the growing unethical practices in crypto, ZachXBT has recently exposed the identity of the “HyperLiquid Whale,” a trader who amassed nearly $20 million through high-leverage crypto trading.

The trader, identified as William Parker, a convicted fraudster with a history of financial crimes, used illicitly obtained funds from phishing scams and casino exploits to place high-risk bets on platforms like Hyperliquid and GMX.

His connections to gambling platforms, phishing schemes, and illicit wallets further suggest that his market success was built on deception rather than skill.

As the crypto community watches closely, the exchange must answer the question of the re-issuance of 70 billion CRO before investor confidence can be restored.

Whether Crypto.com can weather the storm and convince investors of its long-term vision remains to be seen, but for now, the move has left many questioning the integrity of one of the industry’s most prominent exchanges.

The post ZachXBT Accuses Crypto.com of Betraying Trust Over 70B CRO Reissue appeared first on Cryptonews.