In a recent development within the cryptocurrency sphere, former professional soccer player, Ronaldinho came forward to deny his involvement in an alleged $61 million crypto pyramid scheme during a congressional hearing in Brazil. The scheme, known as “18kRonaldinho”, was marketed using Ronaldinho’s likeness, offering a substantial daily returns of 2% on cryptocurrency. Ronaldinho’s appearance at the congressional hearing was a denial of partaking in any role in connection with the scheme, suggesting that himself is a victim of the fraudulent operation.
The allegations against Ronaldinho add another layer to the continuing saga on crypto regulations. The firm behind 18kRonaldinho faces a lawsuit of $61 million as damages. During the inquiry, Ronaldinho failed to comment on any possible reimbursement to those who had invested in the company, also refusing to comment on the massive lawsuit.
Incidentally, this is not the first time Ronaldinho found himself in a situation where he had to deny allegiance to a potential scam. He was summoned to appear in two previous hearings connected to the inquiry, both of which he didn’t attend due to various reasons. The current hearing was his one last chance to clarify his stand before facing potential fines or arrest.
The inquiry was initiated to investigate the proliferating crypto pyramid schemes, a brainchild of Brazil’s lower house, the Chamber of Deputies. It is eyeing a total of 11 companies alleged by Brazil’s Securities and Exchange Commission for falsely promising high returns using cryptocurrency. While the allegations against Ronaldinho underscores the unending dilemmas associated with crypto-regulations, it also highlights the dark side of crypto markets.
At the same time, there’s also an ongoing debate regarding centralization concerns in Ethereum staking. Several Ethereum liquid staking providers have either imposed or are considering imposing a self-imposed limiting rule promising not to own more than 22% of the Ethereum staking market. The idea is to ensure that the Ethereum network remains decentralized. Despite its intents, the decision has drawn mixed reactions from the Ethereum community. Although some see it as a move against potential centralization issues, others argue that it’s a self-serving strategy from certain entities.
Crypto-regulations and market dynamics continue to be a complex terrain, navigating which require both understanding and skepticism. While the affair surrounding Ronaldinho accentuates the possible abuses within the crypto ecosystem, the conversation on Ethereum staking limits reminds us of the need for intrinsically balanced controls within the industry.
Source: Cointelegraph
