Oklahoma senator introduces Bitcoin Freedom Act for BTC payments  

Crypto users are weighing in as Alex Mashinsky, the former CEO of Celsius Network, prepares to stand before a judge on May 8 to face sentencing for commodities fraud and a fraudulent scheme to manipulate the price of the platform’s token.In a May 2 filing in the US District Court for the Southern District of New York (SDNY), prosecutors released several impact statements from individuals affected by the collapse of Celsius filed after the initial deadline. Though at least one suggested clemency for the former CEO, many told the court about the financial and personal losses caused by the crypto firm filing for bankruptcy, and hinted that Mashinsky should be held accountable for misrepresenting the company.“Many of the people who participated in this fraud, benefited from this fraud, and potentially orchestrated this fraud will get away with zero legal consequences,” said Daniel Frishberg of Hillsborough County, Florida, in an April 24 statement. “Please do not allow Mr. Mashinsky to be one of those people (such as with probation/house arrest, as some people supporting him have requested). Please throw the book at him.”A victim impact statement from a Celsius user filed with the SDNY on May 2. Source: PACERProsecutors have requested that Mashinsky serve up to 20 years in prison for his role in Celsius’ fraud, while the former CEO’s legal team asked for a year and one day. The judge will consider guidelines and victim statements at sentencing on May 8.Calls for leniency and harsh prison timeNot everyone who sent in a letter to the prosecutors seemed to be in favor of Mashinsky being sent away for decades, as was former FTX CEO Sam “SBF” Bankman-Fried. SBF stood before a different federal judge in the same district in March 2024 and was handed a 25-year sentence, which he is currently serving in a California prison. “While Celsius [sic] collapse caused significant losses, particularly for Bitcoin holders, shareholders, and borrowers, despite his mistakes, Mr. Mashinsky was, at times, the more conservative voice in an industry overflowing with unchecked greed,” said Artur Abreu in a victim impact statement.“The twenty-year sentence suggested by the US DOJ is fair in my opinion, as Mashinsky caused pain and suffering for many crypto investors across the globe – even resulting in suicide for some of those involved,” said Web3 Deep Dive podcast host and former Cointelegraph reporter Rachel Wolfson, who lost access to Bitcoin worth about $5,000 at the time. “Harsh punishment for bad actors in the crypto industry has become necessary to ensure that the space legitimizes over time.”Mashinsky’s sentencing will be one of the first in significant crypto cases in the district since Jay Clayton became interim US Attorney for SDNY. A Trump appointee, Clayton was previously the chair of the US Securities and Exchange Commission and a crypto proponent on many issues. Critics have suggested that Clayton would take a softer approach to crypto enforcement, given his ties to Wall Street firms and the industry. However, he also released a statement in April regarding a $12-million crypto case, suggesting that he supported accountability for fraudulent actions. His response to Mashinsky’s sentencing and other future cases could be a bellwether for the US Attorney’s approach to crypto.Related: US prosecutors file over 200 victim statements in Celsius ex-CEO’s case

US President Donald Trump will host a gala dinner for top holders of his Official Trump (TRUMP) memecoin on May 22 despite bipartisan criticism and renewed calls for impeachment.In a May 5 Truth Social post, Trump announced that he will hold a gala dinner with major TRUMP holders on May 22. The announcement follows multiple US lawmakers expressing concern over the initiative.In late April, Massachusetts Senator Elizabeth Warren called on government officials to address questions related to Trump’s memecoin and his media company. Controversies grew after Trump announced a dinner and White House tour for some holders of his TRUMP memecoin.“President Trump’s announcement promises exclusive access to the presidency in exchange for significant investment in one of the President’s business ventures,” a letter co-signed by California Democratic Senator Adam Schiff read.A call for impeachment over a memecoinAlso in late April, Senator Jon Ossoff expressed support for impeaching Trump during an April 25 town hall, citing the president’s plan to host a private dinner for top TRUMP memecoin holders. He said:“When the sitting president of the United States is selling access for what are effectively payments directly to him. There is no question that that rises to the level of an impeachable offense.”Pro-crypto Senator Cynthia Lummis and at least one other Republican in Congress were reportedly also critical of Trump for offering the top holders of his memecoin a dinner and White House tour. Lummis reportedly said that the idea of the US president offering exclusive access to himself and the White House for people willing to pay for it “gives [her] pause.”In a May 4 post on X, Warren claimed the Trump family’s stablecoin surged in market value due to a “shady crypto deal with the United Arab Emirates,” which involved settling the investment using USD1. She argued this raised serious national security concerns and warned against the Senate passing crypto-friendly legislation.Warren expressed concerns around foreign involvement in the US president’s finances. She also suggested that the Senate should refrain from approving pro-crypto bills:“The Senate shouldn’t pass a crypto bill this week to facilitate this kind of corruption.“Related: America’s crypto renaissance is already failing; but we can fix itSource: Elizabeth WarrenWarren’s post included a clip from a recent interview during which Trump gave conflicting answers to whether he has profited from the crypto memecoin he launched in January, just days before he reentered the White House. During the clip, the president claims not to have “even looked” to check whether he profited off his endeavours.Related: Elizabeth Warren joins call for probe of Trump over crypto tokensThe United Arab Emirates dealWarren was likely referring to the recent deal that saw Abu Dhabi-based investment firm MGX use USD1 to settle a $2 billion investment in Binance, the world’s largest cryptocurrency exchange. According to CoinMarketCap data, the stablecoin’s market cap shot up from under $137 million on May 1 to nearly $2.13 billion on May 2.USD1’s Market Capitalization. Source: CoinMarketCapEric Trump announced the deal during a panel discussion at Token2049 in Dubai. Trump, the son of the president, serves as executive vice president of the Trump Organization. He said during the event:“The US is seeing that the financial world has to progress. It’s a joke. Why do banks run nine to five, Monday to Friday, with an hour and a half of lunch break? It doesn’t make sense.”Much like the memecoin, the USD1 stablecoin also attracted its fair share of criticism. In early April, some US lawmakers went as far as to allege that Trump wanted to replace the US dollar with USD1.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Binance co-founder Changpeng “CZ” Zhao has proposed Bitcoin and BNB as the first digital assets to form Kyrgyzstan’s national crypto reserves.On May 5, Zhao shared on X that he advised Kyrgyzstan to start with Bitcoin (BTC) and BNB (BNB) when building its national crypto reserve. In 2024, Forbes claimed that Zhao holds about 94 million BNB tokens, about 64% of BNB’s circulating supply. At the time of writing, these tokens are worth about $55 billion. The proposal follows Zhao’s earlier announcement that he had begun advising Kyrgyzstan’s National Investment Agency (NIA) on blockchain and crypto-related matters. On April 3, Zhao confirmed he’s been officially and unofficially advising governments on crypto frameworks and blockchain solutions. The former Binance CEO said that he finds the work extremely meaningful. Source: Changpeng ZhaoBinance to launch crypto payments in KyrgyzstanA month after CZ announced his role in advising Kyrgyzstan, Binance announced a partnership with the country to launch a crypto payments service. On May 4, Binance signed a memorandum of understanding (MOU) with the NIA to introduce Binance Pay to the country, enabling crypto transactions. The partnership also aims to boost crypto education in the country, with Binance Academy set to work with government agencies to develop blockchain-focused educational programs. Binance also said that the exchange had been advising multiple governments and jurisdictions on crypto-related policy. On April 17, Binance CEO Richard Teng said in a Financial Times interview that the exchange had been advising countries on crypto reserves. Kyrgyzstan has been making moves to become a digital asset-friendly jurisdiction. On April 17, Kyrgyzstan President Sadyr Zhaparov signed a law authorizing a central bank digital currency pilot project while giving the national currency’s digital form a legal tender status. Related: Pakistan appoints Changpeng Zhao as crypto adviser as adoption heats upKyrgyzstan reportedly plans a gold-backed stablecoinThe country also reportedly plans to launch a gold-backed stablecoin. The gold-backed stablecoin will be pegged to the United States dollar and called the Gold Dollar (USDKG). This will be backed by $500 million in gold provided by the country’s Ministry of Finance. Cointelegraph reached out to the country’s Ministry of Finance to confirm the reports but did not get a response before publication. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight