Crypto Fraud Scandals, Blockchain Banking, and Policy Shifts Rock Industry

Amalgam Founder Charged With Running ‘Sham Blockchain’, Taking $1M From Investors

Jeremy Jordan-Jones, the self-proclaimed founder of the now-defunct crypto startup Amalgam, has been charged with fraud after allegedly deceiving investors out of more than $1 million. Prosecutors assert that Jordan-Jones misrepresented Amalgam as a technology company specializing in blockchain-based point-of-sale payment systems, claiming non-existent multi-million-dollar partnerships with high-profile sports teams such as the Golden State Warriors, a Premier League soccer team, and a restaurant conglomerate with over 500 locations.

Authorities allege that Jordan-Jones used these false claims to attract investments, including from a venture capital firm identified as Brown Venture Group. Instead of developing the promised technology, he reportedly spent the funds on personal luxuries, including hotels and restaurants in Miami, car payments, and designer clothing. Additionally, Jordan-Jones is accused of providing falsified documents to obtain a corporate credit card, amassing a $350,000 balance before the account was closed. He faces charges of wire fraud, securities fraud, making false statements to a financial institution, and aggravated identity theft, with a combined maximum sentence of 82 years in prison. The aggravated identity theft charge alone carries a mandatory minimum sentence of two years.

“Jordan-Jones, capitalizing on the publicity around blockchain technology, perpetrated a brazen scheme to defraud investors,” said U.S. Attorney Jay Clayton. “He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships. In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”

Over $1 million allegedly defrauded from investors
False claims of partnerships with major sports teams and restaurant conglomerates
Charges carry a potential maximum sentence of 82 years

Source: CoinDesk

Key Takeaway: The Amalgam case highlights the risks of fraudulent schemes in the crypto sector, with prosecutors emphasizing the need for vigilance among investors.

Guatemala’s Largest Bank Integrates Blockchain for Cross-Border Payments

Banco Industrial, Guatemala’s largest bank, has integrated SukuPay’s crypto infrastructure into its mobile banking app, Zigi, enabling Guatemalans to receive remittances from the United States instantly for a flat fee of $0.99. According to SukuPay, users do not need a crypto wallet or an International Bank Account Number (IBAN) to access these funds, removing technical barriers to adoption.

Banco Industrial, established in 1968, operates more than 1,600 service locations in Guatemala and reported assets exceeding 150 million Guatemalan quetzals (approximately $20 million US) as of 2023. The integration marks one of the first uses of a crypto-native protocol within a major Latin American retail bank. Remittances are vital to the region, with the Inter-American Development Bank projecting $161 billion in remittances to Latin America and the Caribbean in 2024. In Guatemala alone, annual remittances reach $21 billion, with families typically losing 6% to 10% to fees and delays.

Remittances to Latin America and the Caribbean projected at $161 billion in 2024
Guatemala receives $21 billion in remittances annually
Flat fee for instant transfers: $0.99
Banco Industrial: 1,600+ locations, $20 million in assets (2023)

Source: Cointelegraph

Key Takeaway: The integration of blockchain technology by Banco Industrial aims to reduce costs and delays for remittance recipients, addressing a critical financial need in Guatemala and the broader region.

The Blockchain Group Secures €8.6 Million to Boost Bitcoin Strategy

The Blockchain Group (ALTBG), listed on Euronext Growth Paris and recognized as Europe’s first Bitcoin Treasury Company, has announced a capital increase of approximately €8.6 million to advance its Bitcoin accumulation strategy and expand its technology subsidiaries. The funds were raised through two operations: a Reserved Capital Increase and a Private Placement, both priced at €1.279 per share.

The Reserved Capital Increase involved the issuance of 3,368,258 new ordinary shares, raising over €4.3 million from selected investors, including Robbie van den Oetelaar, TOBAM Bitcoin Treasury Opportunities Fund, and Quadrille Capital. The Private Placement raised an additional €4.35 million through the issuance of 3.4 million shares to qualified investors. Following this capital increase, the company’s share capital stands at €4.37 million, divided into over 109 million shares. On May 12, The Blockchain Group also secured approximately €12.1 million through a convertible bond issuance reserved for Adam Back, CEO of Blockstream.

Operation	Shares Issued	Amount Raised	Share Price
Reserved Capital Increase	3,368,258	€4,308,001.98	€1.279
Private Placement	3,400,000	€4,350,000	€1.279

Total capital increase: €8.6 million
Share capital after increase: €4.37 million (109+ million shares)
Convertible bond issuance (May 12): €12.1 million

Source: Bitcoin Magazine

Key Takeaway: The Blockchain Group’s significant capital raise underlines its commitment to Bitcoin accumulation and the expansion of its technology subsidiaries.

WEF Backs Blockchain-Based Trade Digitalisation Tool

The World Economic Forum (WEF) has joined five other organizations to launch the Twin Foundation, a non-profit responsible for the Trade Worldwide Information Network (Twin). Twin leverages blockchain infrastructure to enable real-time data sharing within supply chains, allowing exporters to share trade-relevant data such as bills of lading, commercial invoices, and specialist information like sanitary and phytosanitary data for agri-food products.

The Twin Foundation’s initial implementation took place in Kenya, integrating with the country’s single-window system for trade, the Kenya TradeNet System. This allows export data to be transferred directly from the single-window system to Twin, providing permissioned access to relevant parties while ensuring data integrity through blockchain technology. The organization is now working with the UK government to integrate Twin with the largest port community system and the London Port Health Authority, which will cover 50% of all trade entering the UK. The Twin Foundation was launched on May 8 at the African Continental Free Trade Area (AfCFTA) Digital Trade Forum in Zambia.

WEF and five partners launch the Twin Foundation
First implementation in Kenya with the Kenya TradeNet System
UK integration to cover 50% of all trade entering the country
Launched May 8 at AfCFTA Digital Trade Forum in Zambia

Source: Global Trade Review (GTR)

Key Takeaway: The Twin Foundation’s blockchain-based tool aims to enhance trust and efficiency in global trade by enabling secure, real-time data sharing across borders.

GENIUS Act Clears Senate Motion, House Lawmakers Reintroduce Blockchain Certainty Act

On May 21, US lawmakers advanced two significant blockchain-related legislative efforts. The Senate approved a motion to proceed with the Government and Enterprise Need for Innovation in the United States Act (GENIUS Act) by a 69–31 vote, following a 66–32 cloture vote on May 19. The GENIUS Act sets standards for stablecoin issuance, requiring issuers to maintain high-quality liquid reserves, such as US Treasuries or insured deposits, fully backed 1:1 against outstanding liabilities. The Act prohibits yield-bearing products and mandates compliance with know-your-customer (KYC), suspicious activity monitoring, and anti-money laundering (AML) programs.

Meanwhile, in the House, Congressmen Tom Emmer (R-MN) and Ritchie Torres (D-NY) reintroduced the Blockchain Regulatory Certainty Act. This bill proposes a federal safe harbor for software developers and blockchain service providers who do not custody customer assets, preventing them from being treated as money transmitters or financial institutions. The bill clarifies that developers or service providers cannot be subject to state or federal licensing obligations unless they control users’ digital assets. The House has not yet scheduled a markup or floor vote for the bill.

GENIUS Act: 69–31 Senate vote to proceed
Stablecoin issuers must maintain 1:1 high-quality liquid reserves
Prohibition on yield-bearing products for stablecoins
Blockchain Regulatory Certainty Act reintroduced in the House

Source: CryptoSlate

Key Takeaway: The US legislative process is moving forward on key blockchain and stablecoin regulations, with bipartisan support for clearer standards and protections for developers.

Astar Network Raises Funding to Take Blockchain Content to Japan

Astar Network, a platform focused on bringing blockchain projects to Japan and beyond, has received a strategic investment from Animoca Brands to accelerate the growth of Web3 entertainment. Animoca Brands, with investments in over 540 companies, aims to deliver digital property rights and help establish the open metaverse.

The collaboration will focus on deploying Japanese and Asian intellectual property (IP) onchain for global Web3 adoption, with key integrations such as Anime ID serving as a premier identity and reputation layer on Soneium, an Ethereum Layer 2 blockchain developed by Sony Block Solutions Labs. Initiatives like the Anime Art Fest on Soneium aim to onboard users to Web3, creating new opportunities for artists, developers, and digital creators. The Astar (ASTR) token is central to the ecosystem, driving liquidity and engagement through incentivized DApps.

Animoca Brands: 540+ Web3 investments
Focus on onchain deployment of Japanese and Asian IP
Key integrations: Anime ID, Soneium (Ethereum Layer 2)
Astar (ASTR) token drives ecosystem engagement

Source: VentureBeat

Key Takeaway: The partnership between Astar Network and Animoca Brands aims to advance Web3 entertainment and digital property rights, with a strong focus on Japanese and Asian content.

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