We believe that crypto is the future, but it’s impossible to ignore that crypto has already been utilized in some of the darkest corners of the world by criminals and bad actors.

And how do I know this?

Because I’ve lived through the best and the worst that crypto has to offer.

I’m Jordan Fried. The fingers behind the keyboard at Coffee&Crypto.

I’ve seen it all. I’ve made it through the boom years and the coldest months of crypto winter.

And I haven’t just survived, I’ve thrived, creating my own fortune and billions for others along the way.

If you want to read more about how I survived the worst markets and came out on top…

Now, back to our regularly scheduled newsletter.

Espresso Shots

☕️ Binance Rides the Lightning 🚲 ⚡

After Binance’s technical problems last weekend surrounding freezes on Bitcoin withdrawals, the exchange is looking for new solutions for its Bitcoin network.

And that solution may come in the form of the Bitcoin lightning network, a layer 2 solution on the Bitcoin network which will speed up withdrawal times.

"We’re looking to enable BTC Lightning network withdrawals for users within the next few months,” said a spokesperson from Binance. “The BTC Lightning network works just like any network; users can withdraw via the Lightning network from the Binance platform into their private wallets.”

Just yesterday, the total number of Bitcoin-based digital assets reached the 4.6 million mark. Binance was struggling to cope with around 500,000 transactions pending on the Bitcoin network, so a new, speedier layer 2 solution was much needed.

Though Binance is excited about the capabilities of Bitcoin’s Lightning network, it seems that they’re entirely ignoring lightning’s potential to make new Frankensteins.

☕️ Pepe Run May Be Finally Over 🐸 ❌

After Pepecoin’s release last month, the memecoin has undergone a staggering rise in the history of altcoins.

PepeCoin rose about 5,000,000% and at one point hit a market cap of $1.8 billion.

This is from a coin that is ostensibly worthless and valued at percentages of one cent.

But it seems that we’re now in the fall section of Pepecoin’s rise and fall hero narrative as the memecoin had dropped 50% from its high.

Traders are getting wise to the fact that the party is over and selling off their Pepecoin. And it would seem that these altcoins are being sold for ETH, which is currently on the rise and poised to break $2k.

It would seem crypto’s plague of frogs is winding down, but that only means we have boils and locusts to look forward to.

☕️ First ChatGPT Arrest 🤖 🚨

The first person in China, perhaps the first person in the world, has been arrested for a ChatGPT based crime, as they used the AI chat bot to maliciously create fake news stories.

The apprehended individual, currently known only as “Hong,” posted a fake story about a train accident using ChatGPT.

China, which doesn’t have that first amendment Americans are always fighting about, actually has some of the strictest social media laws in the world.

Under China’s social media laws, the suspect could face between five to ten years in prison for “picking quarrels and provoking trouble” online.”

Based on these principles, if they ever were to visit China, the entire writing staff of the Onion would be sentenced to lethal injection.

Spilling the Beans

The Dark Side of Crypto 💀 👀

There’s no denying that some of crypto’s greatest critics engage in some serious pearl-clutching.

“It’s a scam!” “Crypto is a pyramid scheme wrapped up in a Ponzi scheme!” “Crypto is used to fund terrorists and criminals!”

Now, we think those first two are totally incorrect criticisms bordering on hysteria. But that last one…

Yes, some of the world’s worst people prefer to conduct their finances through crypto.

In fact, U.S. lawmakers want to learn just how deep the connection between crypto and malicious activity goes, particularly when it comes to terrorism.

That’s why last week a bi-partisan bill was introduced called the “Financial Technology Protection Act,” which will conduct “deep research” into the relationship between crypto currency and terrorism with a focus on money laundering and how terrorists can use crypto to evade domestic and international sanctions.

U.S. Treasury Official Caroline Horres pointed out that, “very few countries have licensing or registration regimes for virtual asset service providers at present, so many of these off ramps still don’t have controls in place.”

And those vulnerable areas lacking oversight can be a hotbed for terrorist activity.

And U.S. lawmakers are correct in their assumption that some of the world’s most infamous terrorist groups such as ISIS, Al-qaeda, and Hamas have at points delved into crypto to finance their illicit activities.

But crypto is now so mainstream that many terrorist groups are moving away from blockchain tech for fear of being caught.

Because of the transparent nature of DeFi, the United States government has already seized millions of dollars in terrorist funds since 2020, including over 300 individual accounts and four websites.

Tracking terrorist’s movements on the blockchain is so easy for law enforcement that Hamas, the Palestinian military group known for their armed resistance to Israel, publicly announced that they would no longer conduct funding through crypto.

See, it’s no longer in terrorist’s best interest to use crypto because the blockchain is so public in nature. It’s actually disadvantageous as a site for money-laundering and crime-funding.

And even if crypto was the choice currency among terrorists, so what?

Terrorists eat vegetables too, does that mean you’re never going to have a salad again?

At the end of the day, crypto is just money. A new and exciting form of money? Yes. A type of money surrounded by tech that we’re all still getting used to? Also yes.

But decrying crypto for its usage by terrorists is like arresting a bank teller because bank robbers exist.

The only thing that this money has in common is that it’s the same currency. The moral or ethical relationship is no more complicated than that.

Meme of the Day

It's as if the government thinks crypto is a game of whack-a-mole.

Crypto 101

Layer 2 Solutions are secondary protocols built on top of existing blockchain networks. They were developed to address challenges related to scalability and transaction speed.

The Bitcoin Lightning Network that we mentioned above is an example of a Layer 2 Solution.

By offloading a significant portion of transactions from the main Bitcoin network, the Lightning Network can help alleviate congestion and improve overall transaction throughput.

The Last Sip

Here are three lesser known terrorist organizations that at one time or another, were all using crypto.

• P.E.T.A.

• Bed, Bath, and Beyond

• The Los Angeles Parking Violations Bureau

Stay Caffeinated,

Coffee & Crypto Team

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.