 A small Canada-based crypto exchange called MapleChange has pulled off an exit scam, disappearing with user funds. The exchange has deleted its website, Twitter account, and other social media handles along with the identity of its executives and chief executive officer. The disappearance of MapleChange with user funds has led experts in the sector to encourage crypto investors to prevent the utilization of minor exchanges with no reputation and cold wallets that accurately represent their holdings. Suffered a “Hack” But Can’t Refund Users, CEO Hunted DownOn Oct. 29, MapleChange claimed that it suffered a security breach that led to the loss of user funds. However, the exchange did not mention the involvement of law enforcement or any technical intricacy of the supposed hack. Suspicious about the incident, users started to demand more information and almost immediately after the “hack,” the exchange decided to shut every channel of communication down. The MapleChange team said: “Due to a bug, some people have managed to withdraw all the funds from our exchange. We are in the process of a thorough investigation for this. We are extremely sorry that it has to come to end like this. Until the investigation is over, we cannot refund anything.” Absurdly, the exchange said that due to the hack, the exchange is not able to pay any user back and closed down all of its social media accounts. “We have sustained a hack, and we are investigating the issue. Because we have no more funds to pay anyone back, the exchange has to close down unfortunately. This includes all of our social media.” As seen in previous security breaches of major exchanges like Bithumb in South Korea and Coincheck in Japan, in an event of a hack, exchanges cooperate with local financial authorities and government-backed intelligence agencies to investigate the hack and potentially recover the funds lost in the hack. A small crypto exchange pulled off an exit scam, taking all customer funds. There is no incentive for using small exchanges. Use established exchanges that are regulated, & transparent. Small exchanges also focus on maximizing profitability, not security or investor protection pic.twitter.com/iKEO8rDv5z — Joseph Young (@iamjosephyoung) October 28, 2018 MapleChange showed no intent of recovering user funds or compensating its customers, instead of shutting down the platform and social media accounts related to the business. Investors affected by the fraudulent operation formed a group called “Maplechang’ed,” to disclose the identities of executive behind the exchange and locate the team responsible for the exit scam. Within hours after the incident, the group of investors found the identity of the CEO of MapleChange to be Glad Poenaru, a service technician at American Piledriving Equipment, whose location matched that of MapleChange. His name is Glad Poenaru. Glad Poenaru's location matches with https://t.co/hecIHyNUHW's location. Thanks to some members from the $LMO telegram. $CCX #Maplechange #scam pic.twitter.com/XstZhC0pFd — maplechang'ed (@Maplechanged) October 28, 2018 At this time, it remains unclear if Poenaru is wholly responsible for the operation but if he is, Maplechang’ed firmly stated that the group will initiate legal action against the individual. Binance CEO Calls For Transparency, Cold Wallet Holdings of ExchangesChangpeng Zhao, the CEO of Binance, the world’s largest crypto exchange which recently expanded to Singapore to operate its second fiat-to-crypto trading platform, called for the ranking of exchanges by amount held in cold wallets, as it is not possible for exchanges to fake holdings in cold wallets. Wow, some one should rank exchanges by wallet storage. https://t.co/TffMHOnS1J — CZ Binance (@cz_binance) October 28, 2018 Small crypto exchanges often focus on maximizing profitability over security and investor protection. Several exchanges in South Korea were hacked because the trading platforms allocated all of their resources in listing new tokens and building features without establishing necessary infrastructure and security measures to protect user funds. For security and protection, it is of utmost importance for crypto investors to rely on established, reputable, transparent, and regulated cryptocurrency exchanges that have the capability of protecting user funds and compensate investors in an unfortunate event of a security breach. Source: https://cryptoslate.com/minor-crypto-exchange-pulls-off-exit-scam-steals-all-user-funds/ |
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 Cryptocurrency exchange Bitstamp has been acquired by NXMH, an investment firm based in Belgium and owned by South Korean conglomerate NXC. In a deal signed last Thursday, the firm took a majority ownership stake in the exchange. Bitstamp CEO Nejc Kodrič will retain a minority ownership stake and continue running the startup's operations. The terms of the deal, including the sale price, were not disclosed. Bitstamp backer Pantera Capital will also retain a 6 percent ownership stake in the exchange, according to statements, and Bitstamp will continue to operate independently. NXMH's parent company, NXC, also owns the South Korean cryptocurrency exchange Korbit. NXC owns Nexon, a maker of popular games for both desktop and mobile platforms. Public filings released earlier this year had linked NXC and Bitstamp. Bitstamp's customers will not see any immediate change in services, Kodrič told CoinDesk. The exchange has an existing roadmap for improvement, which it intends to stick to for the time being. During negotiations with NXMH, the investment firm essentially agreed with Bitstamp's goals, he said. "We realized very early on that our outlook for the crypto industry is very much aligned with them," he explained. "They've given us a lot of confidence that our execution will proceed … They understand the industry." NXMH and Bitstamp will continue to work to "bridge the gap between traditional finance and crypto," a goal that Bitstamp has been working toward for several years already, Kodrič said. He added: "Unlike some of our competitors who take more of a lax approach, we want to [set standards] … We've already taken the regulatory framework seriously starting back in 2014, we started doing [know-your-customer] before it was an industry standard. All of it comes down to us viewing crypto as being a spark of everyday life." In a statement, NXMH investment manager Hendrik Ghys said, "Bitstamp is one of the oldest and most-respected cryptocurrency exchanges and we see positive growth potential as the industry continues to evolve ... We acquired Bitstamp because we see it as a strategic, long-term investment." Source: https://www.coindesk.com/bitcoin-exchange-bitstamp-confirms-sale-to-gaming-group-nxc/ |
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 According to Yahoo! Finance, Coinbase has eliminated more than 15 people from its customer support, compliance, and fraud departments. All three of these departments would seem to be of the utmost importance to the company, often simultaneously lauded and maligned for its commitment to regulatory compliance. Daniel Roberts, an author of the Yahoo! report, acquired confirmation that there had been firings but could not get an exact count from Coinbase. The number comes from an anonymous source, so could be more or less, but one thing is for certain: Coinbase definitely downsized more than a handful of people. Move Comes At A Time of ExpansionCoinbase made no mention of the downsizing on its blog, and according to Roberts’ source, higher-ups at the firm are “handling communications poorly.” From our perspective, this news is somewhat odd, given that the company has recently appeared in good health and just this past week expanded its offerings for its institutional clients. Of course, financial health is not the only reason for positions to be eliminated. The report notes that most of the employees were remote workers. As it turns out, Coinbase would prefer to bring customer service and the other departments, as a whole, closer to home. Coinbase told Yahoo!: We’ve learned that certain teams who are co-located are more efficient, effective, and happier in their roles. So moving forward, some teams—including Support, Fraud, and Compliance—will only hire employees into Coinbase offices. Trading Down When The Market Is DownCryptocurrencies have been on a downward slope for most of 2018, from the highs at the end of 2017 and the beginning of the year. Smart cryptocurrency people tend to “hodl” when prices are low, and so trading volume at Coinbase and across the market has seen a concurrent decline with perceived value of cryptos. According to the report, Coinbase layoffs have been expected by people at the company for some time now. It therefore makes good sense that remote employees in departments the company would prefer to have tighter control over would be the first to go. Some experts predict an upswing in the value of Bitcoin impending. If this comes to pass, most other cryptocurrencies will inherently trade at higher prices, even if their Bitcoin value is steady or only slightly inclined. Source: https://www.ccn.com/coinbase-downsizes-more-than-a-dozen-people-report/ |
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Floyd Mayweather and DJ Khaled Sued for Involvement in Centra ICO Scam According to TMZ, world-renowned boxing champion Floyd Mayweather and famed record producer DJ Khaled are dealing with the fallout of a class action lawsuit due to their involvement with Centra Tech’s CTR token, a crypto asset the suit claims is a scam that cost investors millions of dollars.
Their RoleMayweather and Khaled both promoted the coin and other forms of cryptocurrency, via social media. Since last year, the celebrities enthusiastically posted about the Centra ICO on Twitter. One with the caption “You can call me Floyd ‘crypto’ Mayweather from now on”, and in another, Khaled referred to the Centra card and wallet app. TMZ did not specify their source, but if they are referring to the first class-action suit, filed in December 2017, it culminated in the Securities and Exchange Commission (SEC) charging Centra’s founders with “orchestrating a fraudulent initial coin offering (ICO).” The SEC’s separate lawsuit specifies that $32 million was stolen from backers of Centra’s fraudulent tokensale in 2017, and hinges on the accusation that CTR tokens were bought and sold as unregistered securities. The two founders were arrested in April 2018. Centra claimed during the ICO, its customers could use their “Centra card” product to spend crypto using their conventional Visa or Mastercard debit cards, according to court documents. CTR was an ERC-20 token built on the Ethereum blockchain. No actual business relationship between Centra and the card companies appears to have existed, and investors contacted the company founders to request a refund based on that misrepresentation. Centra Founders Lied About Paying for Celebrity EndorsementsMayweather and Khaled are being drawn into the suit for their roles as celebrity endorsers of Centra’s product. Centra’s founders Robert Farkas, Raymond Trapani, and Sohrab “Sam” Sharma, lied about paying both celebrities to endorse and promote their product, according to court documents made public by the SEC, which read: “When he was contacted by a Fortune magazine reporter about the celebrity promotions of Centra, Trapani claimed that two well-known celebrities had each been hired as a “managing partner” of Centra. When the reporter asked whether several posts to social media by one celebrity were part of a sponsorship or paid advertisement, Trapani responded, falsely: ‘No [he] is an official brand ambassador and managing partner of Centra Tech now.’” The suit also alleges that Farkas and Trapani knowingly undertook part in manipulative trading to boost CTR’s price in the lead up to their ICO, a common practice in scams used to generate interest in the product. The suit names the three main defendants as Farkas, Trapani, and Sharma as well as their “respective agents, servants, employees, attorneys and other persons in active concert or participation with each of them,” which appears to include paid celebrity endorsers. As mentioned previously, TMZ did not link to the source of the new lawsuit. Both Floyd Mayweather and DJ Khaled are not named in the original class-action lawsuit from December 2017. We will update this article with further details as they become available. Source : https://cryptoslate.com/floyd-mayweather-and-dj-khaled-sued-for-involvement-in-centra-ico-scam/
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 Nearly a decade after the arcane origins of cryptocurrency and skeptics would not yet have depleted their argument that the technology is an A-grade digital detergent for money-laundering. In a bid to tackle the age-old assertion, however, Binance has joined with crypto compliance and investigation provider Chainalysis to keep its transcontinental ecosystem squeaky clean. The new tie-up revealed in a press release Wednesday is a joint effort to tackle “global cryptocurrency money-laundering”, and break down the barriers found at the “intersection of cryptocurrencies, regulators, and traditional financial institutions.” Chainalysis builds trust in blockchains between people, businesses and governments. Backed by Wall Street investment banking heavyweight, Benchmark, Chainalysis in April secured $16 million in VC funding in a mounting push to further its coverage to government entities, cryptocurrency businesses and financial institutions, worldwide — whom the company currently claims to serve more than 150 of, globally. With offices in New York, Washington DC, and Copenhagen, Chainalysis would presumably be no stranger to the sheer height of some regulatory hurdles. Reflecting on some of the challenges that tails the crypto industry across borders, Chainalysis Co-Founder and COO, Jonathan Levin, surmised: “Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users, We expect many to follow Binance’s lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.” Going GlobalThe new partnership sings in harmony with the ambitions of Binance CEO Changpeng Zhao, who in September stated his curveball intention to set up five to ten fiat-to-crypto exchanges in nearly every continent — giving preference to smaller, more collegial, regulatory environments that could work directly with his ever-expanding team. Now with its global campaign map firmly in hand, Binance would be looking to get a running start with Chainalysis’ full suite of tools — which purportedly helps crypto businesses and financial institutions comply with Anti-Money-Laundering (AML) and Know-Your-Customer (KYC) regulations — and companies accepting cryptocurrency to open banks accounts. Know Your TransactionThe wheels have already been set in motion, with Binance, the world’s leading exchange by daily volume, having implemented a complete roll-out of Chainalysis’ compliance solution — an algorithmic ‘Know Your Transaction’ (KYT) software designed to weed out and sound the alarm on suspicious transactions. To Binance CFO Wei Zhou, a former Wall Street financial management executive, stomping out any funny business is a surefire prerequisite to global expansion. The ex-Goldman Sachs investment banker stated: “By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth, Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.” Indeed, as the exchange keeps at its seemingly relentless growth trajectory — having outstripped the profits of Deutsche Bank in Q1 — it will surely be looking to build an impenetrable defense against the type of legal action that may floor even the most well-heeled of companies. Whatever efforts are made to pull the rug out from prospective launderers, however, may do little to diminish the narrative that cryptocurrency is criminal money. As reported previously by CryptoSlate, critics have continued to lambast the asset class despite hard evidence that, each day, banks launder enough to dwarf the net sum of funds ever laundered on cryptocurrency exchanges. Source: https://cryptoslate.com/binance-partners-with-chainalysis-to-stamp-out-money-laundering/ |
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 OKEx, a Malta-based cryptoasset exchange, recently listed TrueUSD (TUSD), USD//Coin (USDC), Gemini Dollar (GUSD), and Paxos Standard Token (PAX). At the time of the announcement, OKEx was the fifth-largest Bitcoin exchange by volume and the third-largest exchange in terms of Tether volume. According to an OKEx support notice, the go-live schedule was as follows, * TUSD, USDC, GUSD, PAX deposit – 17:00, Oct 15 (HKT) * TUSD/BTC, USDC/BTC, GUSD/BTC, PAX/BTC spot trading – 14:00, Oct 16 (HKT) * TUSD/USDT, USDC/USDT, GUSD/USDT, PAX/USDT spot trading – 14:00, Oct 16 (HKT) * TUSD, USDC, GUSD, PAX withdrawal – 17:00, Oct 16 (HKT) Stablecoins in the newsTrustToken, a company focused on traditional asset tokenization, launched TrueUSD in March. The Gemini Dollar, launched by Gemini Exchange, and the Paxos Standard Token, launched by Paxos, debuted in early September after approval from the New York Department of Financial Services. In the case of Gemini, users can convert USD in their Gemini account in Geminar Dollars and withdraw them to a specified Ethereum address. Additionally, users can convert Gemini dollars into USD by depositing them into their Gemini account. The USC//Coin was launched by Circle in late September. All four of these stablecoins are fully collateralized with the USD. OKEx moves to Malta’s Blockchain IslandShortly after Binance announced the setting up of an operational base in Malta, OKEx reported intentions to expand operations to the “Blockchain Island.” OKEx chose to extend business to Malta due to the island’s extensive blockchain initiatives. Before developing any business in Malta, OKEx met with the Maltese government to better understand their legislative and regulatory plans. Coining the moniker “Blockchain Island”, Malta has done a fantastic job publicizing tolerant legislation pertaining to cryptoassets, blockchain, and token sales. In February of this year, Malta published “Malta – A leader in DLT Regulation,” a framework for DLT technology in Malta. This document additionally proposed legislative developments including the establishment of the Malta Digital Innovation Authority, an entity designed to foster growth in the space and protect the public. Source: https://cryptoslate.com/malta-based-okex-lists-four-stablecoins/ |
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What are the major reasons behind for making the bitcoin transactions public for everyone to see?
I know during the early days of bitcoin there are so many things to analyze and improve later by the developers.
After Bitcoin hit the mainstream adoption by the people around the world, then the watchful eyes started joining the race too.
Because of that now people have to use the bitcoin mixing service to cover their tracks while using bitcoin for an anonymous transaction.
Don't you think the ideology of making bitcoin transactions public is not that important anymore? any thoughts? #MakeBitcoinGreatAgain
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The Millionaire Playboy: Dan Bilzerian's Lavish Lifestyle, The King of Instagram - A Guy with Nine Wives!
Dan Bilzerian Lifestyle in 3 minutes - YouTube! https://www.youtube.com/watch?v=yAdp0DkORTE          Before getting any further, you guys should check isn't this guy the real Satoshi - Our missing prophet? lol They said, DAN Bilzerian, the poker-playing multi-millionaire, has become famous for blowout bashes that easily rival Playboy Mansion bacchanals. Revelers pile into Bilzerian’s 31,000-square-foot Bel Air, Calif., compound, where, he told The Post, “clothing is always optional.” When the bachelor, 37, isn’t at home in California, he’s often at his luxe pad in Las Vegas, or snowboarding with Olympian Shaun White in New Zealand, or partying with friends in Tahiti or Ibiza, or racing dune buggies in the desert, or yachting around Italy’s Pontine Islands. One Instagram post shows him visiting Shanghai, China, “for no reason at all.” In August, he and his brother flew to their ancestral homeland of Armenia. After the adventure ended, Azerbaijan issued an arrest warrant for Bilzerian — something to do with allegations that he obtained grenades illegally and “demonstratively” shot off missile launchers at a gun range. It’s a high-flying lifestyle that’s earned him some 24.5 million followers on Instagram, where he shows off his world with no shame — even as critics say he objectifies and exploits the bikini-clad (or -less) women who pose for his photos. In March 2017, he created an uproar by posting a picture of himself relaxing in a hot tub and using a topless, bent-over female as a dinner table. “It’s national women’s day, be thankful,” he wrote. It certainly didn’t help things when, in January, he wrote: “This #metoo s*** is getting out of control, guys getting their lives ruined over touching a girl’s back or hitting on someone.” Reference https://twitter.com/DanBilzerian/https://www.instagram.com/danbilzerian/https://www.news.com.au/sport/sports-life/meet-the-playboy-millionaire-blowing-up-instagram/news-story/ec1f4729b8eca9925be249c4b70473bc
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 Bitcoin (BTC), the world's largest cryptocurrency by market capitalization has enjoyed a staggering price increase in excess of 150,000 percent since it was first listed on exchanges back in July 2010. Since then, the cryptocurrency has also experienced multiple bull runs, bear runs (the longest of which consumed much of 2014 and 2015) and stronger media attention year on year. From a technical perspective, the relationship BTC has with traditional charting patterns is occasionally counter-intuitive to what one would normally expect. Take, for example, the descending triangle which is typically bearish in nature. While it does contain the prospect for breaking either way, the repeated failed (bearish) descending triangle breakdowns over the course of bitcoin's life cycle, leaves an unanswered question, are we viewing these patterns the wrong way? And if so what makes this year different? The case for bitcoin's bullish breakout
Weekly chart Bitcoin's relationship with the 200-day moving average (DMA) and descending triangle pattern has been significant. Descending triangles are measured by connecting a series of lower highs, usually angled at 45 degrees and breaking down left to right thus creating a primary trendline. The secondary baseline connects two or more of the lowest lows in a series to form the horizontal 'floor'. What you end up with is a descending triangle pattern that demonstrates a gradual loss of confidence in the asset you are looking at. When the patterns and indicators are combined on bitcoin's weekly chart they show a consistent counter-play to their traditional bearish norms. As can be seen, price generally breaks bullish from the formation instead of continuing to lower supports as it normally should. The only other time bitcoin broke down from the descending triangle was back in March 2014. Post-breakdown, the bulls managed a short-term rally before being rejected by the 200-DMA, which held price under for 1.2 years. It's clear that the price of bitcoin being under the 200 DMA firmly establishes the market as bearish, and this time around is no exception. That said, history would suggest an upside break of the current descending triangle may be on the cards soon, and that could initiate a move above the DMA as a sign of a larger trend reversal. While it does offer insights into the relationship bitcoin has with the 200-DMA, it is key to remember that the patterns also vary in scope and size, which is usually telling of the price action that follows. So, based off the previous 1.2 year bear run, it's possible bitcoin could turn bullish by early next year, especially if all fundamentals are taken into account, as suggested by CNBC cryptotrader, Ran Nuener. The case for bitcoin's bearish breakdownsOn the flipside, bitcoin has been staring down a bear market for the last 7 months and has dropped below the significant 200-DMA beginning Feb. 5. Traditional patterns such as descending triangles are still worth viewing in bearish terms since the onset rush from 2017/18 was unprecedented and the subsequent sell-off that followed has seen bitcoin drop 67 percent to date from its all-time-high in December 2017. Daily chart As stated earlier, price falling below the 200 DMA has proven to be a sign the market has officially turned bearish. A bearish trend combined with a bearish price pattern, the descending triangle, creates an ideal technical set up for further depreciation even though bitcoin tends to negate the bear view. If price does break down as it technically should, there is a prior resistance and support zone in the $4,900 to $5,400 that may once again offer support to the falling price. If price breaks up as it historically should, the nearby lower highs need to be surpassed on the higher time frames in order to prove a bearish to bullish trend change is in order. The first lower high that price needs to find acceptance above is near $6,850 (differs among exchanges dealing in USDT), while the next is closer to $7,400. View * Bitcoin has ignored the bearish implications of the descending triangle in the past, so there is merit in considering a bullish resolution. * Beginning in 2012, prices dropped below the 200-DMA (including 2018) twice. The prior bear market lasted 1.2 years, leaving some to speculate a possible ending in sight for the current retracement in price from the all-time-highs seen late last year. * A weekly close below the triangle would likely provide confirmation to bearish continuation and set the stage for a prolonged bear market. * Only finding acceptance above the 200 DMA and the descending triangle would revive bullish market settings Source: https://www.coindesk.com/do-these-indicators-suggest-a-bitcoin-price-rally-early-in-2019/ |
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 Bitcoin (BTC) is defending a key long-term price floor as it recovers from Friday's three-week lows near $6,200. After a strong bearish move last Thursday, the leading cryptocurrency looked set to pierce the 21-day exponential moving average (EMA), which has been serving as a strong support since June. However, yesterday's rally to over $6,800 ensured that the crucial EMA support remains intact. At press time, BTC is changing hands at $6,730 on Bitfinex, having clocked a high of $7,788 yesterday. Meanwhile, the 21-month EMA is located at $6,160. The argument that the bear market has likely run its course remains valid as long as prices are trading above the 21-month EMA. However, while the solid bounce from the area around the crucial EMA support is encouraging, a bullish reversal is still not confirmed, as discussed yesterday. Continue reading: https://www.coindesk.com/bitcoin-price-is-defending-one-key-support-for-the-fifth-month-running/ |
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Crypto Exchange Bitfinex Restarts Fiat Deposits Claiming 'Improved' Process
 Cryptocurrency exchange Bitfinex has just announced a new process for depositing fiat currency after the platform halted the service in recent days. Announcing the news in a blog post Tuesday, the exchange said the "new, improved and increasingly resilient" deposit system would again allow users who have been verified for know-your-customer (KYC) compliance to top up their accounts with U.S. dollars, pounds Sterling, Japanese yen and euros. In a previous post on Oct. 5, Bifinex said "processing complications" had caused it to suspend fiat deposits for "certain customer accounts" and "user groups," last week. It was not made clear what categories of customers it was alluding to. There have also been numerous user complaints across social media, as reported by CoinDesk Monday, saying that withdrawals are also not available, at least for some. Despite that, firm stated in yesterday's post that withdrawals are being processed "as usual without the slightest interference." Today's announcement, describing the new deposit process as a "distributed banking solution," indicates that verified customers can send money to their wallets by initiating a deposit request. The exchange will then review the account – which may take up to 48 hours, it warns – and approved users will be provided details ("specific to the individual's transaction") as to how to send the fiat currency. It also adds that deposits must be a minimum of $10,000 (a seemingly pre-existing condition) and will be processed in six–10 days. In a comment responding to unspecified "attacks," Bitfinex said: "We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters. Ongoing campaigns against us will only result in our company becoming stronger and better." It also appealed for "continued understanding throughout the entirety of this situation." Source: https://www.coindesk.com/crypto-exchange-bitfinex-restarts-fiat-deposits-claiming-improved-system/
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 Thai citizen Prinya Jaravijit, who allegedly defrauded a Finnish investor of $24 Million worth of Bitcoin (BTC), has recently been detained in Suvarnabhumi Airport in Bangkok, the Bangkok Post reports Friday, Oct. 12. According to newspaper, Jaravijit arrived in Bangkok on a flight from South Korea en route from the U.S., where he allegedly spent two months after his brother’s detention in connection with the same crime. Shortly after the arrest Jaravijit, who was wanted on charges of conspiracy to defraud and money laundering, was delivered to local police where he was questioned. His lawyers are reportedly preparing to apply for bail. As per the Bangkok Post, in January Finnish investor Aarni Otava Saarimaa along with his Thai business partner Chonnikan Kaewkasee complained to the Thai Crime Suppression Division (CSD). They claimed that Jaravajit along with six other suspects had duped them into investing $24 million worth of BTC into a scheme involving three companies and gambling-focused crypto token Dragon Coin (DRG). However, Saarima and Kaewkasee never received any dividends from the so-called investment, proof of investment in DRG, nor were they invited to a shareholder’s meeting. CSD states that the funds were withdrawn from their BTC wallets, converted into baht and then spent by the alleged fraudsters. As Cointelegraph previously reported, the case came to public attention when soap-opera actor Jiratpisit "Boom" Jaravijit — Prinya’s younger brother — was detained in August. In October, the Thai Money Laundering Office confiscated funds worth $6.4 million from Jaravijit's family and other people connected to the case, and is preparing to charge the suspects with fraud. Following the detention of his brother, Prinya Jaravijit reportedly fled to the U.S. to avoid charges. He was ordered to return to Thailand by Oct. 8, but failed to do so. The Thai Foreign Ministry then revoked his passport which made his further stay in the U.S. illegal. Source: https://cointelegraph.com/news/prime-suspect-in-24-million-bitcoin-scam-arrested-in-thailand |
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 Blockchain research firm Chainalysis released a report stating “whales,” or holders with a large token holding, are stabilizing cryptocurrency prices, instead of the popular belief that they manipulate the $215 billion crypto market. Whales Stabilize BTC PricesThe rumors seem to originate from outsized bitcoin holders selling off their currencies at periodic intervals, causing considerable drops in BTC prices each time. Of such reports, the most recent originated in August 2018 after a holder sold 50,000 BTC, cumulatively worth over $2 billion, in a month and created a 15 percent plunge in the asset’s price. Bitcoin’s infamously steep price drops cause panic amongst investors and industry observers while propagating a myth of the market being controlled by a few investors. However, an analysis of the 32 largest wallet holdings proves these statements are mere speculation.
Chainalysis researchers found out that most whales are dormant traders, and have held most of their BTC since purchase. Only 33 percent of analyzed wallets seemed to take part in the markets actively, and while they certainly have the funds to move the market on a whim, active whales were seen buying more BTC during market lows instead of causing the sell-offs. Whales appear to stabilize the market during meltdowns, and from a trading standpoint, their vested interest could lead to “buying the dip” instead of participating in a market crash. Also, most whales used OTC platforms to manage large transactions, instead of selling their coins on a liquid cryptocurrency exchange. “Whale” Groups ExplainedChainalysis classified crypto-whales into four groups based on the trading activities of the 32-largest BTC wallets. Together, they hold 1 million bitcoins or 4.7 percent of the total supply and account for $6.3 billion of the market cap. The first group, whale traders, are those who transfer their holdings to exchanges to readily buy, sell, and trade bitcoin. For instance, nine observed wallets hold $2 billion in 332,000 BTC and make for the largest whale category. Interestingly, most of these whales entered the market in 2017, indicating the wallets and could be actively-managed crypto hedge funds as they saw an uptick last year. The second group is made up by early adopters and Bitcoin miners, which entered the market much earlier than 2017. The classification includes 15 investors holding more than 332,000 BTC, and display “extremely low” trading activity. Most of these whales liquidated their holdings in 2016/17, and are likely “extremely wealthy.” Moving on, the third group consists of “lost” whales, which hold 212,000 BTC worth $1.2 billion as per current prices. Unfortunately, these whales have presumably lost the private keys to access their wallets, as observed addresses shown no transactions since 2011. Criminal wallets make up the last category in the list, consisting of Silk Road entrepreneurs and money launderers who hold 125,000 BTC, or $750 million, on their now-locked wallets. Chainalysis researchers noted Bitcoin whales might continue to be a “mysterious” fixture for the cryptocurrency community; they have “less of an impact on market prices than many people believe.” In conclusion, collated data suggests trading whales were net purchasers of BTC during December 2017 and “most of 2018.” Whales have not sold their holdings in a large amount yet, and instead, received more bitcoins from exchanges in 2016 and early-2017. Source: https://cryptoslate.com/research-bitcoin-btc-whales-not-moving-the-cryptocurrency-market/ |
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 Cryptocurrency services provider Coinbase shut down its index fund service aimed at institutions this week, after reports suggesting a shift-of-focus to its retail users. Another report indicated the business has lost over 80 percent of its clientele in 2018, which validates its move from institutions towards retail. Failing to Entice InvestorsAt the time of launch, the index fund service was touted as the “S&P 500 index equivalent” of the cryptocurrency world. But, investors failed to adopt into Coinbase’s narrative and the fund attracted little interest. The fund was part of a line of institutional-focused products launched by Coinbase. Launched in June, it aimed to attract accredited investors–who could allocate $250,000 to $20 million–for providing huge liquidity to the crypto-market. The fund was open to U.S.-accredited investors only. Other institutional products include Custody, the business’ custodian service, and a rebrand of its exchange offering from GDAX to Coinbase Pro. The fund provided investors with exposure to the crypto-market via a professionally-managed portfolio of the best-performing cryptocurrencies in a given period. At the time, Coinbase believed the old adage of index funds beating traditionally-managed funds would be their USP, and attract wealthy investors. But, the exchange’s high fees and absence of most altcoins meant institutional investors were skeptical before investing in Coinbase fund. To address concerns, however, fees were brought down to one percent annually, a reduction of 50 percent. Later, the fund was rebalanced to include altcoins – which typically swing much more than the relatively stable bitcoin – based on their addition to the platform. The index fund has closed shortly after the announcement of Coinbase Bundle, a mini-index fund aimed at retail investors and amateurs. The so-called “basket product” was announced last month and allows users to buy five market-weighted cryptocurrencies with a minimum investment of $25. During the launch Coinbase stated: “We expect that millions of people will make their first cryptocurrency purchase in the coming years.” While the institutional move failed to attract investors, which eventually led to the exchange focusing on the retail demographic a majority of its $8 billion-valued company was based on, even the latter group is shying away from the company, based on a report by Tribe Capital. 80 Percent Retailers now InactiveAs reported by Bloomberg, Tribe found out Coinbase has taken one of the biggest hits following the cryptocurrency slump of 2018. Active users on the platform have reduced by 80 percent, according to research firm Diar, which confirmed a similar decline in its latest report. Tribe researchers analyzed credit card information and bank transfers to Coinbase for their survey. While the research was limited to U.S.-based transactions and did not reflect the firm’s comprehensive business activity, Tribe notes the findings capture “overall trends” for Coinbase, which other crypto-exchanges are “likely” facing as well. Coinbase’s faltering business is presumably a mix of 2018’s notorious bear market and a small pool of liquidity that fails to attract institutional investors. Meanwhile, venture firms are investing heavily in the infrastructure facilitating the future cryptocurrencies, creating a perfect example of investing in spades prior to a gold rush. Source: https://cryptoslate.com/coinbase-shuts-down-institutional-index-fund-while-retail-activity-down-80-percent/ |
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Princeton Research Claims China Motivated to “Kill” Bitcoin, Selfish Miners Governing 74 Percent of Network A research study published on Oct. 5 claimed growing Chinese influence over the Bitcoin protocol is a “looming threat” to the $114 billion network. The paper alleged that China presents a problem to the security, stability, viability of the pioneer cryptocurrency.
The Case Against ChinaAccording to the paper, which was published by Florida International University and Princeton University, China has strong motives and a regulatory and technologically “mature” capability to launch an attack against the Bitcoin network, owing to the former’s strict economic control rules over the global internet infrastructure. The country is aware of the significant increase in Bitcoin’s value and economic utility, and the implication of disrupting such a vast network. The paper begins its conjecture by calling out the dominance of Chinese businesses mining Bitcoin, making the protocol “heavily centralized.” Researchers allege that six mining pools control mining–with five located in China–and together, they make up 80 percent of the Bitcoin’s hashing power. Bitcoin primarily faces a threat from the evil “51 percent attack,” which if executed, could result in the creation of fraudulent side-chains containing transactions that never took place. With much of the hashing power pooled by the Chinese, miners can influence what happens on the Bitcoin network, and perhaps, even spoof transactions to China’s benefits. Chinese Mining Situation “Unsettling”The research pointed out the five mining pools in China comprise 74 percent of Bitcoin hash power, an evidently “unsettling” situation. Given the country’s harsh policies, control over the network could mean censorship and other damaging attacks. Blocks mined in China are in proximity to a large share of hash power, meaning validations and consensus are reached faster than blocks elsewhere. In addition, as the managers of mining units can control the inputs of outputs of their rigs, the hashing power is indirectly in control of strict Chinese authorities, who are authorized by law to influence a corporation’s business decisions. The point mentioned above implies that the Chinese government can wholly-assume control of regional hashing power, giving them an advantage in selecting specific blocks for the ledger, which is essential for 51 percent-styled attacks. Source: https://cryptoslate.com/princeton-research-claims-china-motivated-to-kill-bitcoin-selfish-miners-governing-74-percent-of-network/
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Breaking: Harvard, Stanford, & MIT Have All Invested in Cryptocurrency Funds At least five more university endowments have invested in cryptocurrency funds, suggesting that the “herd” of institutional investors is finally beginning to place at least a small bet on the nascent asset class. As first reported by The Information, a cadre of major educational institutions including Harvard University, Stanford University, Massachusetts Institute of Technology, Dartmouth College, and the University of North Carolina have each invested in at least one cryptocurrency fund through their respective endowments. Citing an unnamed source familiar with the investments, the publication reported that these five university endowments have invested tens of millions of dollars in these funds, which in turn invest in both physical cryptocurrencies and equity in cryptocurrency companies. CCN previously reported that Yale University, which controls the second-largest university endowment next to Harvard, had allocated a portion of its $29.4 billion in assets into two cryptocurrency funds operated by Andreessen Horowitz (a16z) and Paradigm. Even with these investments, the six universities that are now said to have invested in crypto funds still have very little exposure to this asset class. Nevertheless, the fact that they are engaging with the market at all could help legitimize the space. As The Information journalist Jon Victor explained: “A move by endowments into funds that will directly bet on cryptocurrencies signals a major shift in investor sentiment toward the asset class, in the same way that institutions over the past decade became more willing to invest in private tech companies. Backing from such closely watched institutions could help validate cryptocurrencies, which are still considered too risky by many institutional investors.” Cryptocurrency investors and analysts such as Mike Novogratz had long predicted that a “herd” of institutional investors would power the next bitcoin bull market. Ari Paul, a cryptocurrency fund manager and a former portfolio manager at the University of Chicago’s endowment, said in April that he believed that a number of institutions were interested in investing in cryptocurrency but were waiting for major names such as Yale to make the first move so that they would have an “excuse” to do so themselves. Notably, though institutional investors are generally viewed as having a more sober view of cryptoassets than retail investors, a recent survey by Wall Street strategy firm Fundstrat found that institutions that have already invested in cryptocurrency are actually more optimistic about bitcoin’s near-term prospects than retail investors. Source: https://www.ccn.com/breaking-harvard-stanford-mit-have-all-invested-in-cryptocurrency-funds/
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Binance Co-Founder on Launching Fiat Exchange, Confident in Crypto Market Trend [INTERVIEW]Yi He, the co-founder and Chief Marketing Officer at Binance, spoke to CryptoSlate in an exclusive interview on how the exchange decided to launch a fiat-enabled trading platform in Singapore, discussed the country’s regulatory frameworks around crypto, and the state of the cryptocurrency market.  Yi He is the co-founder and Chief Marketing Officer of Binance.I thought she is a man... She's beautiful, though - LOL Since its debut in mid-2017, Binance has experienced exponential growth in terms of daily trading volume and user base, evolving into the biggest cryptocurrency exchange in the global market. In the past nine months, Binance has released a blockchain startup accelerator called Binance Labs, Binance Charity, and a prototype for a decentralized exchange. Earlier this month, Binance officially announced the launch a fiat cryptocurrency exchange in Singapore, equipped with seamless user experience and fiat (Singaporean dollar) integration. On Binance Singapore, users are able to deposit and withdraw the Singaporean dollar to trade cryptocurrencies with the national currency. Yi said: “Our mission at Binance is to contribute to the development of the blockchain industry by building the infrastructure for the ecosystem. Fiat currencies are a very important part of blockchain transactions. By launching a fiat exchange, we hope to provide users with a more complete user experience, and enable not only the exchange and transaction of fiat currency but also future investments in blockchain projects, media, education and other blockchain fields.” Source: https://cryptoslate.com/binance-co-founder-on-launching-fiat-exchange-confident-in-crypto-market-trend-interview/
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 According to Vitalik Buterin, the co-creator of Ethereum, the days of 1000x growth as seen in 2017 in the cryptocurrency sector is gone. Speaking to Bloomberg, Buterin emphasized that the awareness of cryptocurrencies and blockchain technology has already achieved its high point in Dec. 2017, when the price of major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Bitcoin Cash demonstrated 10 to 300-fold returns. “The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” he said. Moving From Promotion to Real AdoptionThe speculative bubble of last year has led the vast majority to take interest in cryptocurrencies as an emerging asset class. In the upcoming years, Buterin stated that the industry will focus on improving the usability and accessibility of decentralized systems rather than promotion and gathering interest. Buterin explained that the strategy of promoting blockchain technology and cryptocurrencies to the broader consumer base is hitting a dead end and that it is time to improve the infrastructure of decentralized systems, applications (dApps), and protocols to encourage consumers to commit to blockchain-based platforms. “Go from just people being interested to real applications of real economic activity,” he stated, adding “that strategy [promoting the blockchain to the broader consumer base]is getting close to hitting a dead end.” In the upcoming months and years, to reach true mainstream adoption, developers of dApps will have to ensure that the utilization of decentralized systems is as seamless and efficient as centralized platforms. For instance, apps like Peepeth, a decentralized alternative to Twitter, which was recently discussed on the Joe Rogan Podcast, require users to send Ether or gas every time a piece of information has to be broadcasted to the Ethereum mainnet. The simple shift from cash to cryptocurrencies can already be difficult and technically challenging for the majority of people. Then requiring users to utilize MetaMask to process gas on a dApp through the Ethereum mainnet could be highly complicated for most. As decentralized cryptocurrency exchange Kyber Network CEO Loi Luu previously said, in the near future, dApps will have to improve their user interface to refine and simplify the process of utilizing blockchain-based systems. “I think it’s because the UI isn’t good enough. The users aren’t familiar with the Decentralized Exchanges; they’re more familiar with Binance or Bittrex. So that’s why we wanted to make it really easy for the user to use. So we don’t focus on the decentralized aspect of it. We focus more on the usability aspect of it,” Luu said, recognizing that the current UI of decentralized exchanges and dApps is not efficient enough. Improvements on Protocol and dAppsOn the protocol side, the open-source developer community of Ethereum is working on the implementation of Sharding and Plasma, two solutions that are expected to massively increase the scalability of the Ethereum network. Other projects like Cardano and Zilliqa are working on proof-of-stake (PoS) and Sharding-related solutions as alternatives to Plasma and Ethereum-based solutions. Still, the front-end and UI side of dApps and decentralized systems in general need significant improvement, especially if dApps intend to target the consumer base of widely utilized centralized platforms. Source: https://www.ccn.com/why-ethereum-co-creator-believes-days-of-1000x-crypto-growth-is-gone/ |
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A Billion People Will Be Using Cryptocurrency in 5 Years: Brian Armstrong The world of money is revolutionizing in front of our eyes. Cryptocurrency is creating new paradigms for alternative payment systems and decentralized banking. There is no doubt that the user adoption of various cryptocurrencies is rapidly increasing. The cryptocurrency industry has become more fluid as the borders between it and mainstream finance continue to blur. At the same time, regulators are spending long hours at work to regulate the booming circle of crypto-enthusiasts. It could be one of the prime reasons why Brian Armstrong believes crypto-adoption will increase at an astronomical pace in the next half-decade. The Coinbase chief executive was responding to a question about cryptocurrency’s international outreach at TechCrunch Disrupt in San Francisco, to which he predicted that 1 billion people would eventually be using cryptocurrencies in the next five years. Armstrong believes a growing number of cryptocurrency companies will contribute to the overall crypto ecosystem growth. These companies, under a regulated environment, will issue their tokens backed by their respective market caps. In a way, these institutionalized digital assets will prove to be an alternative investment system in addition to equities. “It makes sense that any company out there who has a cap table should have their token,” Armstrong said. “Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their tokens.” Coinbase, the U.S. company Armstrong heads, is one of the world’s largest bitcoin and altcoin exchanges by trading volume. They have only recently entered the U.K. markets to tap the growing crypto-user base in the country. Previously, it had been working actively in the U.S. and Europe, and it has amassed over 13 million users to date. That makes it 32.5 percent of the overall crypto-users — arguably, anyway. Armstrong plans to expand Coinbase to more global territories. They have recently announced their plans to open new offices in Africa. In the long run, Armstrong believes they will function like the New York Stock Exchange (NYSE), with “probably” millions of tokens in their portfolio. “We do feel a substantial subset of these tokens will be securities,” he said. “Our approach has always been to be the most trusted [cryptocurrency exchange] and the easiest to use. So we want to be the legal compliant place where you can start to trade these tokens that are classified as securities.” Source: https://www.ccn.com/a-billion-people-will-be-using-cryptocurrency-in-5-years-brian-armstrong/
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The EOS blockchain project is hoping to boost the onboarding of new users by reducing the cost of opening accounts. EOS New York, one of the network's 21 block producers (the entities elected to verify transactions on the network), announced Thursday that 15 block producers had approved a new protocol update which reduces cost of a new account from 4 kibibytes (KiB) to 3 KiB (roughly $1.84 as of September 6). KiB are used to measure amounts of data. The change also grants new accounts 1,400 bytes of RAM for free, though existing accounts can buy, delegate or undelegate RAM to also receive 1,400 bytes for free. Accounts on the EOS blockchain are necessary for transferring tokens or otherwise launching a transaction on the network. The post further stressed the importance of making account creation easier to bring more decentralized app (dApp) developers on board in the early adoption phase, explaining: "EOS account creation cost is an extremely important aspect of the health of the platform. Many users of EOS decentralized applications are early adopters, people who are eager and willing to spend the time to understand the EOS blockchain. But in the future, users will not be as eager." Because dapp developers will therefore either have to create users' accounts or otherwise force users to pay to create accounts, lowering the cost "dramatically reduces the barriers to development," the post said. Source: https://www.coindesk.com/eos-block-producers-move-to-cut-costs-for-users/ |
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