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Damian Williams, the United States Attorney for the Southern District of New York; Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI); and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today the unsealing of an Indictment charging KEONNE RODRIGUEZ, the Chief Executive Officer and a co-founder of Samourai Wallet (Samourai), and WILLIAM LONERGAN HILL, the Chief Technology Officer and also a co-founder of Samourai, with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. These charges arise from the defendants development, marketing, and operation of a cryptocurrency mixer that executed over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets, such as Silk Road and Hydra Market; a web-server intrusion; a spearphishing scheme; and schemes to defraud multiple decentralized finance protocols. RODRIGUEZ was arrested this morning and is expected to be presented today or tomorrow before a U.S. Magistrate Judge in the Western District of Pennsylvania. HILL was arrested this morning in Portugal based on the U.S. criminal charges. The United States will seek HILLs extradition to stand trial in the United States. The case is assigned to U.S. District Judge Richard M. Berman.

In coordination with law enforcement authorities in Iceland, Samourais web servers and domain (https://samourai.io/) were seized. Additionally, a seizure warrant for Samourais mobile application was served on the Google Play Store. As a result, the application will no longer be available to be downloaded from the Google Play Store in the United States.

U.S. Attorney Damian Williams said: As alleged, Keonne Rodriguez and William Lonergan Hill are responsible for developing, marketing, and operating Samourai, a cryptocurrency mixing service that executed over $2 billion in unlawful transactions and served as a haven for criminals to engage in large-scale money laundering. Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of criminal proceeds from the Silk Road, Hydra Market, and a host of other computer hacking and fraud campaigns. Together with our law enforcement partners, we will continue to relentlessly pursue and dismantle criminal organizations that use cryptocurrency to hide illicit conduct.

IRS-CI Special Agent in Charge Thomas Fattorusso said: $2 billion in transactions with an unlicensed money transmitter means $2 billion flowed without any oversight, from whomever to wherever. Because of the companys disregard for regulation, its alleged that Samourai Wallet laundered more than $100 million in criminal proceeds. Special Agents with IRS:CI New York and IRS:CI LAs Cyber units worked with our federal and international law enforcement partners to not only arrest the founders and CEO, but to also seize their domain. Samourai Wallet is now closed for business.

FBI Assistant Director in Charge James Smith said: Threat actors utilize technology to evade law enforcement detection and create environments conducive to criminal activity. For almost 10 years, Keonne Rodriguez and William Hill allegedly operated a mobile cryptocurrency mixing platform which provided other criminals a virtual haven for the clandestine exchange of illicit funds, the facilitation of more than $2 billion in illegal transactions, and $100 million in dark web money laundering. The FBI is committed to exposing covert financial schemes and ensuring no one can hide behind a screen to perpetuate financial wrongdoing.

According to the allegations in the Indictment unsealed today in Manhattan federal Court:[1]

Background on Samourai

From about 2015 through February 2024, RODRIGUEZ and HILL developed, marketed, and operated a cryptocurrency mixing service known as Samourai, an unlicensed money transmitting business from which they earned millions of dollars in fees. Samourai unlawfully combined multiple unique features to execute anonymous financial transactions valued at over $2 billion for its customers. While offering Samourai as a privacy service, the defendants knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion. Indeed, as the defendants intended and well knew, a substantial portion of the funds that Samourai processed were criminal proceeds passed through Samourai for purposes of concealment. During the relevant period, Samourai laundered over $100 million of crime proceeds originating from, among other criminal sources, illegal darkweb markets, such as Silk Road and Hydra Market; various wire fraud and computer fraud schemes, including a web-server intrusion, a spearphishing scheme, and schemes to defraud multiple decentralized finance protocols; and other illegal activities.

RODRIGUEZ and HILL began developing Samourai in or about 2015. Samourai is a mobile application that users can download onto their cellphones, and the application has been downloaded over 100,000 times. After users download Samourai, they can store their private keys for any BTC addresses they control inside of the Samourai program. These private keys are not shared with Samourai employees, but Samourai operates a centralized server that, among other things, supervises and facilitates transactions between Samourai users and creates new BTC addresses used during the transactions. Samourai is used by customers all over the world, including customers located in the United States and in the Southern District of New York.

RODRIGUEZ and HILL designed Samourai to offer at least two features intended to assist individuals engaged in criminal conduct to conceal the source of the proceeds of their criminal activities. First, Samourai offers a cryptocurrency mixing service known as Whirlpool, which coordinates batches of cryptocurrency exchanges between groups of Samourai users to prevent tracing of criminal proceeds by law enforcement on the Blockchain. Second, Samourai offers a service called Ricochet, which allows a Samourai user to build in additional and unnecessary intermediate transactions (known as hops) when sending cryptocurrency from one address to another address. This feature similarly may prevent law enforcement and/or cryptocurrency exchanges from recognizing that a particular batch of cryptocurrency originates from criminal activity. Since the start of the Whirlpool service in or about 2019, and of the Ricochet service in or about 2017, over 80,000 BTC (worth over $2 billion applying the BTC-USD conversion rates at the time of each transaction) has passed through these two services operated by Samourai. Samourai collects a fee for both services, estimated to be about $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions over the same time period.

RODRIGUEZ and HILLs Knowledge and Intent for Criminal Proceeds to be Laundered by Samourai

RODRIGUEZ and HILL operated Twitter accounts that encouraged and openly invited users to launder criminal proceeds through Samourai. For example, in or around June 2022, Samourais Twitter account operated by RODRIGUEZ posted the following message regarding Russian oligarchs seeking to circumvent sanctions:

Similarly, in a private message on or about August 27, 2020, HILL using a Twitter account with the username Samourai Dev discussed the use of Samourai by criminals operating in online black markets such as Silk Road in private messages with another Twitter user (the Twitter User) (emphasis added):

Twitter User: Silk Road is why I first found Bitcoin and the desire to keep engaging in those types of markets is one reason that I want to defend/strengthen those use cases . . .

Samourai Dev: No, not at all. We probably have different views on some basic tenets of bitcoin, you and I so to each his own so to speak. At Samourai we are entirely focused on the censorship resistance and black/grey circular economy. This implies no foreseeable mass adoption, although black/grey markets have already started to expand during covid and will continue to do so post-covid. . . .

Additionally, in response to Europol highlighting Samourai as a top threat to the ability of law enforcement to trace the proceeds of criminal activity, HILL posted a message in or around March 2021 suggesting that Samourai would not change its practices in response to allegations that Samourai was being used for money laundering:

Similarly, RODRIGUEZ and HILL possessed and transmitted to potential investors marketing materials that discussed how Samourais customer base was intended to include criminals seeking privacy or the subversion of safeguards and reporting requirements by financial institutions. For example, in Samourais marketing materials, RODRIGUEZ and HILL similarly acknowledge that the individuals most likely to use a service like Samourai include individuals engaged in criminal activities, including Restricted Markets.

In the below excerpt from Samourais marketing materials, RODRIGUEZ and HILL acknowledge that its revenues will be derived from Dark/Grey Market participants seeking to swap their bitcoins with multiple parties to avoid detection:

In Samourais marketing materials, RODRIGUEZ and HILL promoted Samourais Wallet and its Mixing Service as a Premium Privacy Service for transactions involving the proceeds of goods and services that include, among other things, Illicit Activity.

* * *

RODRIGUEZ, 35, of Harmony, Pennsylvania, and HILL, 65, a U.S. national who was arrested in Portugal, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison.

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the investigative work of IRS-CI and the FBI. He also acknowledged the assistance of the Justice Departments Office of International Affairs. Mr. Williams also thanked Europol, the Portugal Judiciary Police, the Icelandic Police, the FBI Field Office in Pittsburgh, the FBIs International Operations Division, and the IRS-CI Los Angeles Field Office for their assistance in the investigation of this case.

This case is being handled by the Offices Complex Frauds and Cybercrime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and David R. Felton are in charge of the prosecution.

The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

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Founders And CEO Of Cryptocurrency Mixing Service Arrested And Charged With Money Laundering And Unlicensed ... - Department of Justice

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From bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when youre first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation.

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A cryptocurrency is a digital asset that is based on blockchain technology and can circulate without the centralized authority of a bank or government. To date, there are 24,630 cryptocurrency projects out there in the cryptocurrency market that is estimated to reach $4.94 billion by 2030.

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.

Bitcoins price has skyrocketed as its become a household name. In May 2016, you could buy one bitcoin for about $500. As of Apr. 25, 2024, a single bitcoins price was around $64,427. Thats a growth of 12,785%.

Related: How To Buy Bitcoin

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the end of April 2024, its price went from about $11 to around $3,158, increasing 28,605%.

Related: How To Buy Ethereum

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning its backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tethers value is supposed to be more consistent than other cryptocurrencies, and its favored by investors who are wary of the extreme volatility of other coins.

Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binances exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or bitcoin.

BNBs price in 2017 was just $0.10. By late April 2024, its price had risen to around $613, a gain of 613,003%.

Related: How To Buy Cryptocurrency

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Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solanas native token, powers the platform.

When it launched in 2020, SOLs price started at $0.77. By late April 2024, its price was around $148.30, a gain of 19,159%.

Like Tether, USD Coin (USDC) is a stablecoin, meaning its backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of Apr. 25, 2024, its price reached $0.53, equal to a rise of 8,676%.

Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoins price in 2017 was $0.0002. By April 2024, its price was at $0.15, up 75,904%.

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Originally developed as a layer-1 blockchain for Telegrams encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to The Open Network from its original name Telegram Open Network, both of which are referred to by their acronym: TON.

Toncoinfirst known as Gramis the native token for TON. It is an application that allows users to buy, send and store funds on TONs incredibly fast, environmentally friendly network.

Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.

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10 Best Cryptocurrencies To Buy In April 2024 - Forbes

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The TDR Three Key Takeaways regarding BNY Mellon and Cryptocurrency:

Last week, BNY Mellon, one of the oldest and largest financial institutions, announced its investment in Bitcoin ETFs, indicating a notable move by a major institution into cryptocurrency investments. This announcement comes at a time when the financial sector is keenly observing how prominent banks are engaging with the cryptocurrency market. The companys approach highlights its leadership in adopting digital currencies, which are increasingly considered mainstream. This initiative could reflect a growing acceptance and incorporation of Bitcoin into institutional investment strategies.

BNY Mellon, recognized as the oldest bank in America and the worlds largest asset custodian, has now invested in spot bitcoin exchange-traded funds (ETFs), as per its latest quarterly filing with the U.S. Securities and Exchange Commission (SEC). The bank, managing over $2 trillion in assets, has chosen BlackRocks iShares Bitcoin Trust and the Grayscale Bitcoin Trust for its bitcoin investments, following their SEC approvals earlier this year.

BlackRock iShares Bitcoin Trust has notched its first day of $0 in inflows since Bitcoin exchange-traded funds (ETFs) were introduced in the United States in January. Ever since its launch on Jan. 11, IBIT has consistently attracted investments worth millions of dollars daily, racking up nearly $15.5 billion in just 71 days. The inflow streak ended for BlackRock on April 24 after it recorded $0 of inflows. Bitcoin has been sitting at 12% lower than it all time high reached last month. The all time high reached last month was based on excitement about Bitcoins halving event that happened last week and they inflows to ETFs.

The decision to include Bitcoin ETFs in its asset management options indicates a significant shift in strategy for BNY Mellon, addressing the increasing demand for cryptocurrency options from its clients. This decision not only broadens the variety of assets offered but also enhances BNY Mellons standing in a market that is rapidly embracing digital assets. BNY Mellons participation in the cryptocurrency market through Bitcoin ETFs is significant, potentially impacting market stability and regulatory frameworks.

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BNY Mellon's Role in Cryptocurrency and Banking - The Dales Report

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The legislation aims to limit the use of non-Russian digital assets to strengthen the ruble's dominance, allowing only digital financial assets and digital rubles issued within Russian jurisdiction.

Russia will implement strict regulations on the general circulation of cryptocurrencies like Bitcoin, starting September 1,according to Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market. Aksakov will spearhead this policy change, marking a significant effort by the Russian government to exert control over the cryptocurrency landscape

The forthcoming legislation is designed to curtail the use of non-Russian digital assets, promoting the ruble as the primary currency within the nation. Aksakov emphasized the necessity of these measures, stating,

"Digital financial assets issued in Russian jurisdiction, and digital rubles will be allowed. The need for a ban is due to the fact that today cryptocurrency is a quasi-currency that replaces the ruble in the country. But only the Russian ruble fulfills the mission of the monetary unit, so this decision has been made."

While the new policy introduces severe restrictions, it notably carves out exceptions for specific activities within the cryptocurrency sector. The bill does not outright ban cryptocurrencies but instead targets the creation of crypto exchanges and other platforms facilitating cryptocurrency transactions outside the scope of a new experimental legal regime.

Anton Gorelkin, a member of the State Duma, clarified:

Of course, the circulation of cryptocurrencies will not be banned. The creation of exchanges outside the zone of the experimental legal regime will fall under the ban.

Crypto mining, a significant contributor to Russia's tax revenues, will also see tailored exceptions. Crypto miners in Russia generated over $2.59 billion in liquidity for foreign trade settlements, underscoring the economic importance of this sector, Statista reported.

The policy has ignited a internal debate among Russian policymakers.

Artem Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy, stressed the importance of precise, clear regulations, codified digitally to ensure consistent judicial enforcement.

In contrast, Russias Finance Minister, Anton Siluanov, advocates for a moderated stance that would enable the use of cryptocurrencies in both domestic and international transactions, potentially easing the strictures of the new law.

Meanwhile, Elvira Nabiullina, Head of the Bank of Russia, supports the experimental use of cryptocurrencies in international settlements, indicating a possible softening in certain areas of the financial landscape.

Report from the US Department of Treasury indicate that Russian entities have procured military technology components using cryptocurrencies, particularly Tether's USDT.

The cryptocurrency market has experienced volatility influenced by regulatory changes worldwide. Notably, Chinas blanket ban on cryptocurrencies and mining significantly impacted the global market.

However, Russia's cryptocurrency market, smaller in comparison to China's during its peak, is unlikely to provoke a similarly dramatic global effect due to the planned restrictions.

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Russia Plans to Ban Public Cryptocurrency Use: What to Know - BSC NEWS

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Penny stocks tend to be volatile, illiquid and (in many cases) poor companies with limited financial standing and worse long-term outlooks. But that isnt always the case, especially with penny stocks on the rise.

Penny stocks saw per-share pricing drop further than expected in 2023, with ETFs like the iShares Micro-Cap ETF (NYSEARCA:IWC) dropping 2% compared to the wider markets respectable 7% return since Jan. 1. That may be changing, though, as rate cut prospects, combined with the worst in class penny stocks being squeezed, combine to make todays remaining micro-cap top contenders in their category.

The best part about penny stock investing is that you can diversify holdings across a range of sectors, geographies, business types, and more creating a bespoke, customized portfolio best suited to your unique needs. Here are a few of the top penny stocks on the rise you may want to consider today.

Source: PHOTOCREO Michal Bednarek / Shutterstock

Starting from the cryptocurrency side of penny stocks on the rise, Bit Digital (NASDAQ:BTBT) is a Bitcoin (BTC-USD) mining stock priced far cheaper than well-known alternatives like Riot Platforms (NASDAQ:RIOT). The companys mining units number in the tens of thousands, and to date, theyve mined more than 6,600 Bitcoins (worth more than $430 million at todays pricing). Thats a drop in the bucket compared to mega-miners like Riot, which has mined about the same amount in 2023 alone. To offset the disparity, Bit Digital is also diversifying sales streams by leaning into AI-centric infrastructure.

Bit Digital AI is Bit Digitals new business line, which provides[s] specialized infrastructure to support generative artificial intelligence workstreams.

In other words, Bit Digital is deploying a suite of Nvidia (NASDAQ:NVDA) units in a high-end data center to help smaller companies access greater artificial intelligence utility by offering multiple computing power access points.

To me, this is the future of digital crypto mining: whether due to regulation or cost-prohibitiveness, as mining becomes pricier, these companies will increasingly use their vast computing power to solve peripheral problems. And Bit Digital is a penny stock leading the charge into the emerging paradigm.

Source: christinarosepix / Shutterstock.com

Destination XL Group (NASDAQ:DXLG) stands out among penny stocks as a longstanding retailer with a proven business model and operational success. The company specializes in big and tall mens clothing and has experienced a slight sales slump throughout 2023. However, its not enough to justify its current valuation.

Recently, Destination XL posted fourth-quarter and end-of-year results with adjusted earnings of 10 cents per share for the quarter and 50 cents for the year. Although these figures marked a 16% and 20% drop, respectively, from the previous year, the companys 10.7% EBITDA margin remains impressive. Despite this, Wall Street reacted negatively, sending shares down about 10% post-earnings.

This dip has brought the stock to a very appealing 6x price-to-earnings ratio and a share price of just 0.42x sales. Moreover, the companys effective cash management has allowed it to remain debt-free and maintain high buyback levels. With a total yield of 12.52%, Destination XL Group is a compelling penny stock on the rise.

Source: Wirestock Creators / Shutterstock.com

Lithium Americas (NYSE:LAAC) ranks among the top penny stocks on the rise this year, despite a sluggish lithium market. However, trends could reverse in 2024, potentially catapulting this Argentinian-focused mining stock. Demand for lithium, driven largely by batteries and renewable energy transitions, is expected to surge more than 30% annually through 2030.

Like other lithium producers, Lithium Americas encountered slow demand and a significant oversupply in 2023, which depressed spot prices. But demand is accelerating, and some analysts predict an imminent undersupply, likely pushing spot prices upward and benefiting Lithium Americas.

More importantly, Argentinias new president, Javier Milei, is sparking bullish sentiment about the lithium-rich regions mining potential, as he wants to reduce hurdles for mining operations and recently spoke to Elon Musk about the issue (lithium, of course, being a critical component in EV production).

With the stock trading below its book value and at a lower price-to-forward earnings ratio than in recent years, Lithium Americas is a unique commodity penny stock set to surge as markets realign.

Source: Billion Photos / Shutterstock.com

Desktop Metal (NYSE:DM) is a surging penny stock. The 3D-printing stock climbed over 15% since Jan. 1. Despite trading below previous highs, the penny stock is poised to broaden its market reach by targeting new audience segments with substantial growth potential.

Desktop Metals healthcare-focused subsidiary, Desktop Health, has rolled out an expansive initiative called ScanUp aimed at dental professionals. This move capitalizes on the fact that half of the dentists in the United States have not yet adopted intraoral scanning, representing a significant untapped market, as noted in a company press release. The ScanUp platform requires a 36-month commitment and promises to generate more predictable, recurring revenue for the small-cap 3D-printing penny stock.

Closing out 2023, Desktop Metal notably reduced its net loss to $323.4 million from $740.3 million the previous year. Although it is still on the path to profitability, Desktop Metal presents a high-risk but potentially high-reward penny stock investment opportunity within the expanding 3D-printing sector.

Source: John Brueske / Shutterstock

A few weeks ago, I briefly examined The Metals Company (NASDAQ:TMC) from a legislation perspective, theorizing that GreenTech initiatives might benefit the deep-sea metals mining firm. However, renewed Federal interest in sourcing essential metals and minerals from the ocean is not the only factor buoying this penny stock.

The company recently added Steve Jurvetson as Vice Chairman and special advisor to the CEO. Jurvetsons track record includes early investments and board roles at SpaceX, Tesla (NASDAQ:TSLA), and Planet Labs (NYSE:PL), among others. Although relying solely on one individual to turn a company around is risky, Jurvetsons experience nurturing small, speculative companies could significantly impact this deep-sea mining penny stock.

A current concern for The Metals Company is its burn ratedeep-sea mining exploration is expensive and slow to yield results. The company currently has enough cash and credit to sustain its operations for approximately another year. However, with Jurvetsons appointment, expect strategic investment opportunities to surface soon, as he may begin leveraging his Silicon Valley connections for potential capital influx.

Source: John Brueske / Shutterstock.com

Enovix Corporation (NASDAQ:ENVX), an energy-centric penny stock, is leading the charge in cutting-edge battery technology. Unlike prominent battery producers like Tesla, which shifted their lithium-ion batteries away from rare earth materials while maintaining the basic battery structure, Enovix is revolutionizing the entire concept.

The company produces 3D silicone lithium-ion batteries, which are inherently more scalable and suitable for high-capacity applications such as smartphones and tech wearables. Enovix demonstrated this capability with two significant achievements recently. First, the company obtained FDA approval to include its batteries in vital sign monitors, such as blood pressure and heart rate monitors. Soon after, Enovix secured a major contract with the US Army to supply batteries for next-generation military wearables, thus integrating 21st-century technology into soldiers toolkits.

Although still focused on R&D, Enovixs recent victories suggest a rapid acceleration as the company begins marketing its innovative batteries.

Source: viewimage / Shutterstock.com

Finally, on the cannabis stock side of the penny stocks spectrum, Tilray Brands (NASDAQ:TLRY) is a leading competitor thanks partly to German legalization efforts opening new global market opportunities for cannabis stocks. The stock surged 26% in just a few days, a spike that rapidly reverted to early 2024 per-share pricing after the hype slowed.

Looking at broader sector-specific trends, the outlook strengthens further. U.S. legislators continue to advocate for rescheduling cannabis from Schedule I to Schedule III, though full legalization remains off the table for now. Even a slight federal relaxation of cannabis regulations could trigger a broad increase in cannabis stock prices. In the meantime, Tilray has a unique advantage that buffers against potential setbacks.

Owning 5% of the national craft beer market provides Tilray with a critical lifeline while awaiting U.S. legalization and enhances profitability in regions where cannabis is legal despite thin profit margins. Additionally, Tilrays acquisition of Anheuser-Buschs (NYSE:BUD) craft beer division included valuable marketing, distribution, and compliance expertiseassets that will distinctly benefit Tilray as legal environments evolve.

On Penny Stocks and Low-Volume Stocks:With only the rarest exceptions,InvestorPlacedoes not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. Thats because these penny stocks are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand thatInvestorPlace.comswriters disclose this fact and warn readers of the risks.

Read More:Penny Stocks How to Profit Without Getting Scammed

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremys work can also be found at http://www.jeremyflint.work.

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From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace

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