Blockchain analytics firm Bubblemaps released a report on Aug. 25 alleging that Hayden Davis coordinated a sniping operation on Kanye West’s YZY token that generated $12 million in profits through 14 connected wallets.

The investigation began with a timing analysis showing Davis, also known as Kelsier, received access to $57 million in previously frozen funds, with YZY launching the following day.

Davis has faced previous controversies related to the LIBRA token collapse, where he denied fraud and insider trading accusations.

A US judge unfroze $57.6 million in USDC stablecoins tied to the LIBRA token scandal on Aug. 20, giving Davis and former Meteora DEX CEO Ben Chow access to funds that were frozen in May as part of a class-action lawsuit.

Bubblemaps tracked several addresses funded from centralized exchanges the day before YZY’s launch, discovering a cluster prepared to snipe the token through funding transactions, Cross-Chain Transfer Protocol transfers, and shared deposits linking back to Davis.

The connected wallets purchased YZY tokens as early as 1:54 A.M. UTC, just one minute after the announcement. The firm noted this pattern reflects Davis’s previous involvement in sniping high-profile tokens, including MELANIA and LIBRA.

Bubblemaps said it could not confirm whether Davis had insider information or direct connections to the YZY team, but documented the coordinated purchasing pattern and profit extraction.

The investigation continues as blockchain forensics firms examine celebrity token launches for potential manipulation.

Controversial launch followed by price colapse

YZY’s controversial launch saw trading activity drive its market capitalization near $3 billion before collapsing within hours.

The token initially attracted rapid inflows, pushing its fully diluted valuation into multibillion-dollar territory before prices retreated more than 90%, leaving its capitalization closer to $137 million.

Independent analysis from Conor Grogan estimated that 94% of the initial supply was controlled by insiders, including a single multisig wallet that held 87% of tokens before dispersing.

The YZY pool featured a 1% base fee with dynamic adjustments reaching 2.68%, combined with wider bin steps introducing additional 4-5% slippage, creating estimated 10% round-trip costs for traders.

YZY is down 82% from its all-time high of $3.1633 and was trading at $0.5670 as of press time.

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A multi-state, multi-million dollar investigation dubbed Operation Teller-to-Telegram just concluded with the arrest of several individuals who allegedly engaged in a bank fraud scheme that targeted the elderly.

In a statement, the office of the Florida Attorney General James Uthmeier says that eight individuals behind an $8.8 million bank fraud ring are now facing RICO charges, criminal use of personal information and other serious felonies. 

The fraud operation involved three bank employees in Maryland, identified as Barbara Frazee, Camala Shafer, and Antonio Penn, who allegedly sold and shared the account information of senior customers using the encrypted mobile messaging app Telegram.

The other perpetrators used the victims’ names, dates of birth, Social Security numbers and bank account information to drain savings, then transferred the stolen funds to accounts that they opened.

Says Polk County Sheriff Grady Judd,

“This wasn’t some small-time scam, this was a well-organized fraud ring stealing millions from innocent victims across the country. They thought they could hide behind mobile apps and fake accounts, but we found them, and we’ll continue to go after anyone who targets hardworking people’s life savings. Racketeering is a serious crime, and we will pursue as many felonies as possible against each one of these suspects.”

Frazee, Shafer and Penn are now facing charges along with their alleged co-conspirators: Okeroghene Akushe, Michael Nevarez, Roshado Durrant, Hassan Phillips and Kevin Clayton.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A US bank has agreed to pay up to $10,000 to customers affected by an alleged data breach that exposed personally identifying information.

According to a settlement administrator’s portal, The Bank of Canton will pay $300,000 to settle a lawsuit accusing the Canton, Massachusetts-based lender of negligent data security practices.

Class members in the lawsuit, defined as the existing, former and prospective clients of The Bank of Canton in the US impacted by the cybersecurity incident, will receive up to $2,500 for ordinary losses and up to $10,000 for extraordinary losses.

Claimants must provide documentation to prove the losses they suffered as a result of the data breach. Class members who choose not to file documentary evidence can opt for an alternative cash payment of $100.

Claims must be submitted by October 9th, with a final approval hearing for the settlement scheduled to be held in a Massachusetts court on October 21st. Payments will be made once the settlement is approved by a judge.

The Bank of Canton is settling the lawsuit a little over a year after the incident occurred. On or around May 27th of 2023, cybercriminals allegedly gained access to MOVEit Transfer, a file transfer software system used by a third-party service provider of the bank.

The lawsuit alleged the incident led to the sensitive data of the Bank of Canton’s customers, potentially including, account name, account number(s), and Social Security numbers being exposed. The lawsuit was subsequently filed in November of 2023.

Despite agreeing to settle, The Bank of Canton denies the allegations made in the lawsuit.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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China’s foreign ministry has reportedly confirmed that a visiting Atlanta-based banker who works for the financial service behemoth Wells Fargo has been prohibited from leaving the country.

CNN reports that the Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun said on Monday that the exit ban placed on Chenyue Mao is due to her involvement in a criminal case.

Mao serves as managing director at Wells Fargo Bank N.A.

“According to Chinese law, the case is under investigation, and Ms. Mao is temporarily unable to leave the country and is obligated to cooperate with the investigation. During the investigation, the authorities will ensure that her legal rights are protected.”

The bank, which operates overseas branches in Shanghai and Beijing, decided to suspend all travel to China following the exit restrictions.

“We are closely tracking this situation and working through the appropriate channels so our employee can return to the United States as soon as possible.”

It is not clear how Mao is linked to the criminal case. Just last month, she was elected the new chair of FCI, a global association of companies formerly known as the Factors Chain International.

In a statement to the BBC, the US embassy in Shanghai says that the Chinese government has long imposed exit bans on US citizens and other foreign nationals, often without a clear and transparent judicial process.

“We track these cases closely, and have raised our concern with Chinese authorities about the impact these arbitrary exit bans have on our bilateral relations and urged them to immediately allow impacted US citizens to return home.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The U.S. Department of Justice (DOJ) is charging a fashion tech CEO for allegedly defrauding investors of hundreds of millions of dollars by lying about its profits.

In a new press release, the DOJ says it’s charging 48-year-old Christine Hunsicker of New Jersey – the CEO and founder of clothing tech firm CaaStle – with numerous crimes after she allegedly forged documents to make it appear as if the firm was financially healthy.

Authorities say that Hunsicker knew that CaaStle was in financial distress “with limited cash and significant expenses.” However, to raise more funds to operate the company, she allegedly fabricated income statements, bank records, and other documents as a means of tricking investors into thinking the firm was profitable and had cash on hand.

According to the DOJ, Hunsicker raked in a staggering $275 million for CaaStle. Some of her alleged fraudulent activities include providing an investor with fake bank account screenshots showing the company had $200 million in cash when in reality it had 1,000x less.

She also allegedly falsified the signature of a board director to make it appear that the firm’s board had authorized the grant of stock options, allowing her to raise another $20 million.

Authorities also allege that Hunsicker defrauded investors of a new business venture, P180, getting them to invest $30 million by using fake information about CaaStle’s success.

All in all, Hunsicker allegedly raised more than $300 from fraudulent practices.

As stated by US Attorney Jay Clayton,

“As alleged, Christine Hunsicker defrauded investors of hundreds of millions of dollars through document forgery, fabricated audits, and material misrepresentations about her company’s financial condition.

The promise of pre-IPO (initial public offering) technology companies can be fertile ground for fraudsters who play on investor euphoria. Investors should be aware of these incentives and that pre-IPO companies are not subject to the rigors of SEC registration.”

Hunsicker is charged with aggravated identity theft, wire fraud, securities fraud, money laundering, and making false statements to a financial institution. If convicted, she faces decades behind bars.

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An associate banker at a large national bank is accused of stealing hundreds of thousands of dollars from customers in a span of just two months.

According to the Northern District of California’s U.S. Attorney’s Office, Sixto Christopher Porras allegedly stole approximately $440,000 from two retail bank customers while stationed in San Francisco.

In each of the cases, Porras managed to drain the bank accounts using the customer’s existing debit cards or replacements.

The first incident occurred in August of 2023 after a customer walked into the bank to conduct a wire transfer, according to the Northern District of California’s U.S. Attorney’s Office.

“As the transfer was processed, Porras obtained from the customer the security personal identification number associated with the customer’s debit card. Unbeknownst to the customer, Porras kept the customer’s debit card. Porras allegedly proceeded to use the debit card to embezzle approximately $100,000 from the customer’s account.”

The second incident took place about a month later.

“In or about September 2023, another retail bank customer visited the branch to address a fraudulent charge. As Porras assisted the customer, he obtained the security PIN associated with the customer’s debit card. Porras then caused the customer’s debit card to be reissued and sent to Porras’ San Francisco residence. Porras allegedly proceeded to use the debit card to embezzle approximately $340,000 from the customer’s accounts.”

Porras, who currently no longer works with the unnamed bank, is now facing charges of embezzlement of bank funds and access device fraud. For the embezzlement charge, Porras could get a maximum of up to 30 years in prison and a $1 million fine if convicted. The access device fraud charge carries a maximum of 15 years in prison and a $250,000 fine if convicted.

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Former Binance CEO Changpeng Zhao allegedly supported crypto projects tied to the Trump family while privately seeking a presidential pardon, according to a July 11 Bloomberg News report.

The report claimed that Binance wrote the foundational smart contract code for USD1, a stablecoin issued by World Liberty Financial, a company affiliated with President Donald Trump.

Three people familiar with the matter told Bloomberg that Binance’s involvement enabled USD1 to be used in a $2 billion investment in Binance made by UAE-based MGX.

Blockchain data reviewed by Bloomberg showed that approximately 90% of USD1’s $2 billion total supply is held in Binance wallets. The token’s prospectus indicates the Trump family could receive around $30 million annually from interest earned on reserves backing the stablecoin.

A Binance spokesperson told Bloomberg the USD1 listing followed its “standard process,” emphasizing that Zhao’s pardon application is “a personal one” and unrelated to company activities.

Zhao, who pleaded guilty in 2023 to anti-money-laundering violations and spent time in a California halfway house, confirmed his pardon request during a Farokh Radio podcast interview.

World Liberty denied the allegations, calling them “factually deficient and designed to further a political agenda.” Zhao has also denied the allegations levied by previous reporting by the Wall Street Journal.

Ethics experts raised concerns about potential conflicts of interest. Richard Painter, former chief ethics counsel under President George W. Bush, said, “We have never had this since the Civil War: a president whose personal financial interests conflicted with his official duties.”

The Trump administration maintains that the President has no conflicts, citing a trust structure overseen by Donald Trump Jr. An ethics agreement released before Trump’s presidency stated he receives only general business updates.

Bloomberg reported that crypto initiatives tied to Trump have added at least $620 million to his fortune in recent months. Two sources said Zhao met World Liberty co-founder and Trump ally Steve Witkoff at a Bitcoin conference in Abu Dhabi in December 2024, although a person close to Witkoff denied the meeting took place.

Witkoff, now Trump’s special envoy to the Middle East, plans to transfer his World Liberty Financial interests to his adult sons, according to White House counsel David Warrington.

By mid-March, Binance and World Liberty were reportedly discussing a new stablecoin, and weeks later, World Liberty announced plans to issue a token on BNB Smart Chain. Around the same time, the Wall Street Journal reported that Zhao was requesting a pardon from Trump.

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The Russian government is attempting to seize a gold mining firm owned by a billionaire accused of breaking a rule that bans public officials from engaging in entrepreneurial activity.

The Russian Prosecutor General’s Office has filed a lawsuit to seize shares of billionaire Konstantin Strukov’s gold mining company, Yuzhuralzoloto, state-owned media Tass reports.

Strukov, who has been a deputy of the Legislative Assembly of the Chelyabinsk Region for 25 years, while also the deputy chairman of the Legislative Assembly, acquired the firm through a bankruptcy procedure. He was also the company’s CEO between 1997 and June 2001 before he became chairman of the board of directors.

The government’s lawsuit alleges that Strukov violated a ban on all public officials from engaging in business activity.

The rule also requires politicians to sell all their securities, shares, or stakes in companies before taking office.

According to Tass, Yuzhuralzoloto produces over 450,000 ounces of gold per year, which is $1.505 billion annually with a profit of 34 billion rubles – $432.43 million.

Prosecutors allege that Strukov frequently takes profits from the mine and transfers them abroad to Montenegro, Belgium, Switzerland, Luxembourg, Latvia, Estonia and Turkey where he and his family purchased houses, yachts and other luxury items.

The Russian government is requesting that 100% of Strukov and his daughter’s ownership of the company be transferred to the state.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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About 14 million Android users are set to receive a massive $314.6 million payout from Google, after a jury declared the company wrongfully transferred customer data without permission.

A jury in California has found the tech giant must pay damages for transferring data from idle Android smartphones without permission, reports Reuters.

Google says it will appeal the decision, which the lawsuit claimed triggered “mandatory and unavoidable burdens shouldered by Android device users for Google’s benefit.”

The jury found the data transfers violated California’s privacy laws, and the money will be handed exclusively to users in the state.

According to the lawsuit, which was initiated in 2019, the company used customers’ cellular data to transfer information that was used for things like targeted advertising.

In court, Google argued that the transfers were fully legal and covered by the company’s privacy policies and terms of service, and no users were harmed in any way.

After the verdict was announced, Google spokesperson Jose Castaneda said the jury’s decision “misunderstands services that are critical to the security, performance, and reliability of Android devices.”

Google is also facing a lawsuit on the transfers that represent customers in the rest of the country, which is set to start in the first half of next year.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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