US Distillery Adopts Bitcoin for Payments and Treasury
Heritage Distilling, a Washington-based craft spirits producer, has become the first publicly traded distillery to integrate Bitcoin into its business operations. The company announced on January 10 that it will accept Bitcoin as payment for products and services through its e-commerce platform. Additionally, it plans to hold Bitcoin as a treasury asset.
Heritage’s decision is part of a broader policy to attract new customers and fans while capitalising on the potential for Bitcoin’s value to rise. The company acknowledged the risks of price volatility but believes the benefits, including profit margins and buyer engagement, outweigh the downsides.
The initiative follows the formation of a Technology and Cryptocurrency Committee led by Matt Swann, a former Chief Technology Officer at Nubank, who joined Heritage’s Board of Directors on January 6. The distillery’s website currently indicates that Bitcoin payments will be available “soon.”
Wolf Capital Co-Founder Pleads Guilty to $9.4 Million Fraud
Travis Ford, the co-founder and head trader of cryptocurrency investment firm Wolf Capital, has pleaded guilty to a wire fraud conspiracy. Ford admitted to orchestrating a Ponzi scheme that defrauded approximately 2,800 investors of $9.4 million between January and August 2023.
The United States Department of Justice (DOJ) revealed that Ford falsely promised investors daily returns of 1-2%, equating to an annual return of 547%. Instead of fulfilling these promises, Ford and his associates misappropriated the funds for personal gain.
The DOJ noted that Ford knowingly made unrealistic claims to attract investments via the firm’s website, social media, and online promotions. Ford faces a maximum penalty of five years in prison, with sentencing yet to be scheduled.
US Regulators Propose Bank-Like Protections for Crypto Wallets
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to extend similar protections as those provided to traditional bank accounts to cryptocurrency users. The proposal, announced on January 10, aims to safeguard crypto wallet users against fraud and errors.
Under the rule, consumers who lose funds due to hacks or scams could potentially receive refunds from crypto service providers. The CFPB’s proposal applies to stablecoins and other digital assets used as a medium of exchange or payment for goods and services.
The CFPB stated that these protections would fall under the Electronic Fund Transfer Act, which mandates error resolution and fraud protection for electronic transactions. This development comes in response to the billions of dollars lost annually in the crypto sector due to hacks and scams.
In 2024, crypto-related losses from scams and hacks amounted to $3 billion, according to blockchain security firm PeckShield, while blockchain analytics firm Chainalysis estimated the figure at $2.2 billion over the past year.
The proposal reflects ongoing efforts to address the vulnerabilities faced by crypto users and provide a regulatory framework to build trust in digital finance.
