Here’s what happened in crypto today
Today in crypto, Heritage Distilling, a Washington-based crafts spirits producer, will now accept Bitcoin as payment, Wolf Capital’s co-founder pleaded guilty to one count of conspiracy to commit wire fraud, and US regulators want to extend banking protections to users of cryptocurrency accounts and wallets.US distillery adopts BTC for treasury useHeritage Distilling, a Washington-based craft spirits producer, said that it will begin accepting Bitcoin as payment and hold it as a treasury asset.On Jan. 10, the company adopted a Bitcoin (BTC) treasury policy to accept Bitcoin for products and services via its e-commerce platform. This makes Heritage the first publicly traded spirits company to integrate Bitcoin into its business model.The company’s new policy states that it is willing “to sell its products and services in return for Bitcoin as a form of payment knowing that even if the price of Bitcoin falls at any given time.” “The benefits of attracting a new set of buyers, consumers, and fans, along with the margin cushion the Company can create, coupled with the potential to see Bitcoin increase in value, more than offsets the risk of loss,” reads the new policy.Heritage Distilling’s website currently indicates that Bitcoin will be accepted for online purchases “soon.”The company’s decision to accept Bitcoin follows the formation of its Technology and Cryptocurrency Committee, chaired by Matt Swann, a former chief technology officer at Nubank. Heritage announced the appointment of Matt Swann to its Board of Directors, effective Jan. 6.Wolf Capital co-founder pleads guilty to $9.4 million Ponzi, promised 547% returnsThe co-founder and head trader of a cryptocurrency investment firm has pleaded guilty to wire fraud conspiracy charges for his role in raising over $9 million from investors with false promises of significantly high returns.Wolf Capital co-founder and head trader Travis Ford lured in around 2,800 investors to invest approximately $9.4 million between January and August 2023, as per a Jan. 10 statement published by the United States Department of Justice (DOJ).The DOJ said Ford presented himself as a “sophisticated investor” capable of generating “1-2%” daily returns, equating to an average of approximately 547% annually.The DOJ said Ford attracted investors through Wolf Capital’s website, social media, and other various online promotions. Rather than using the funds for the promised purpose, they were redirected for the personal financial gain of Ford and others involved in the scheme.The DOJ also said that Ford “admitted” that those returns were not viable to “achieve consistently.”A sentencing date has yet to be scheduled, but Ford’s guilty plea to one count of conspiracy to commit wire fraud carries a maximum penalty of five years.CFPB wants to extend similar banking protections to crypto usersThe United States Consumer Financial Protection Bureau (CFPB) has proposed a new rule that could allow crypto wallet users to receive similar protections as traditional bank accounts.According to the proposed rule, which was published on Jan. 10, crypto users who have lost funds due to hacks or scams could be eligible for a refund by crypto service providers. The regulator suggested the same protections that “guard against error and fraud” under the Electronic Fund Transfer Act also apply to consumers using “emerging payment mechanisms,” such as crypto accounts or wallets. Consumers transacting in stablecoins or “any other similarly-situated fungible assets that either operate as a medium of exchange or as a means of paying for goods or services” would fall under the new protections. “The CFPB interprets the term ‘funds’ to include assets that act or are used like money, in the sense that they are accepted as a medium of exchange, a measure of value, or a means of payment,” the regulator said.Scammers continue to plague the crypto industry, causing billions of dollars worth of losses. In 2024, crypto users lost $3 billion due to hacks and scams, according to data from PeckShield. Chainalysis estimated this figure to be around $2.2 billion over the past 12 months.