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Wash Trading or Defrauding Users in Tether (USDT) May Not Trigger Extradition to the US

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Tether, the company behind the USDT stable coin, continues to be the most infamous cryptocurrency firm, ever. Over the past two years, the company has been accused of numerous shady deals, with the latest one being the withdrawal of a large sum of money to cover up BitFinex losses.

In a tweet by Loomdart, the cryptocurrency trader believes there are some reasons why Tether continues to take part in shady transactions. The tweets saying:

 “The reason that most wash trading exchanges use USDT for volume spoofing and not USD is that wash trading against a token is probably not going to get you extradited to the US, but wash trading against USD probably will.”

According to Loomdart, the fact that cryptocurrency exchanges make use of USDT and not the real US Dollars makes it highly unlikely that the United States would request extradition of Tether officials. This “immunity” of sorts and the fact that they execute their operations away from US soils allow them to evade justice by striking deals that put user funds at risk.

Read: Tether (USDT) Losing 30% Of Its Market Cap A Blow, BitConnect Tokens?

Tether’s Long History of Scandalous Deals

A research paper by professors at the University of Texas last year revealed that Tether and BitFinex played a role in the Bull Run of late 2017 that saw the Bitcoin price surge to an all-time high of $20,000 per coin.

The paper accused Tether of using its USDT tokens to artificially inflate the price of Bitcoin at various intervals in 2017, especially when the prices are down. Researchers noted that Bitcoin (BTC) did expand on retracement days after Tether Limited minted USDT. By doing that the company kept the {pump” going, shoring prices and creating a false image of a healthy market weeks after demand from China had been cut off.

Besides, before the mega rally, US bank Wells Fargo suspended its services for BitFinex and Tether blocking roughly $180 million of the two companies’ funds. Additionally, Wells Fargo also restricted a few banks from doing business with Tether and BitFinex. Since then, they have been using Crypto Capital, a Panama-based payment processing firm.

While BitFinex claims to have severed its relationship with Tether last year, investigations carried out shows that the companies have been involved with each other for a long time as they share the same executives.

The “Paradise Papers” leak published by the International Consortium of Investigative Journalists ties the two companies together as far as 2014. The report shows that an offshore law firm Appleby assisted the CSO and CFO of BitFinex, Philip Potter, and Giancarlo Devasini in setting up Tether in the British Virgin Islands five years ago.

Also Read: Bitcoin (BTC) Hits $5,200 As Tether News Propagates, Traders Flee BitFinex

In November 2017, Tether made an announcement revealing that there was a security breach that led to them losing $31 million in USDT tokens. From the official blog post, hackers did remove the funds from the Tether Treasury wallet, and they couldn’t redeem any coins in possession of the hackers.

The latest scandal comes as the New York State Attorney General reveals that it is suing Tether and BitFinex for taking part in fraudulent activities. From what is publically available, the NYOAG reveal that BitFinex lost roughly $851 million in the hands of Crypto Capital and Tether covered for the loss from its reserve funds.

Lack of Proper Audit

Even so, a conspicuous dent against Tether is the fact that its funds haven’t undergone an adequate inspection from a third party firm. Even if the company maintains that it has the reserve to cover for the USDT tokens in the market, the lack of proper audit makes that point invalid.

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Ethereum News

NY Judge Grants Motion To Modify Preliminary Injunction Against Bitfinex

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May 17, 2019 6:01 PM

Bitfinex is calling it a victory, but the exchange is still barred from using Tether as a line of credit.

Read the full article here.

The media team is the collaborating entirety of the writing staff at ETHNews.

ETHNews is committed to its Editorial Policy

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Ethereum News

Gab’s New Strategy: Fork Open-Source Software And Add Bitcoin

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May 16, 2019 4:34 PM

After Keybase announced integration of Stellar on its platform, Gab has threatened to fork the open-source chat software and swap its XLM wallet for a Bitcoin Lightning Wallet. The famously anti-censorship social network previously forked the Brave browser. It’s all part of Gab’s evolution into what CEO Andrew Torba calls a “free speech software company.”

Read the full article here.

The media team is the collaborating entirety of the writing staff at ETHNews.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Gab, Keybase or other Ethereum technology news.

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Binance Halting Trades, Deposits and Withdrawals in System Upgrade

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Leading cryptocurrency exchange Binance will be undergoing a system upgrade starting at 11PM EST.

According to the post published on the official exchange website, Binance will be suspending trades, deposits and withdrawals during the planned maintenance, which will take approximately 6-8 hours. In the update Binance states that deposits not finished by the start of the update will be forced to wait until the process is over,

Binance will suspend deposits, withdrawals, and trading during this period. Deposits that are not completed before the start of the upgrade will be processed after the upgrade is complete. Please allow some time for deposits to be reflected in your account following the system upgrade.

Once the upgrade is complete, we will make a further announcement and provide users with a 30 minute window to cancel orders, process deposits, withdrawals, and use all other account related functions before trading resumes.

We apologize for any inconvenience caused, and thank you for your patience.

Changpeng Zhao, the affable and popular CEO for the cryptocurrency exchange also took to Twitter to announce the update. In addition to providing the start time, he also claimed that the company would continue with its regular process of updating users every 2 hours on the progress of the upgrade,

Final stretch, 11PM Tuesday, EST + a few hours. Thank you for patience, cooperation and support so far! 🙏🙏🙏

During trading halt, we will update no less than every 2 hours, as per usual.

Binance has been at the center of both trader and investor concern following a hack that stole over 7,000 BTC from the exchange’s hot wallet, worth $54 million following the most recent price rally. While Binance reports that their SAFU Fund will cover the expenses lost, investors were wary of the high-profile nature of the hack. After months of outpacing the market, the price of Binance Coin fell sharply before recouping losses over the weekend’s bullish run.

The upgrades comes on the heels of a cooling in the general crypto markets, with the price of BTC slipping to $7800 after scorching to new levels over the weekend. The entire market capitalization of cryptocurrency gained $20 billion in 24 hours, with analysts adjusting their price outlook for BTC in a substantial turnaround for the market.

However, Binance is still recovering from the wake of the hack, with tonight’s upgrade likely in response. Changpeng Zhao and his team have been careful to update traders without compromising any unnecessary information, which the CEO claimed the hackers could use to further evade the exchange’s security.

Some community members are skeptical of the update, and fear it may be related to further losses or breaches in security other than what Binance has publicly released. While the exchange has been fairly transparent in their handling of the theft, initial reports were startling in the extent of user data that was potentially uncovered during the security breach. However, others have voiced their approval of CZ and his team, claiming that the open communication with traders has been a welcome change compared to how other exchange’s have operated in the wake of a hack.

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Bitcoin News

Bitwise Bitcoin (BTC) ETF Verdict Delayed By The SEC… Again

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Bitcoin ETF Verdict Delayed Again


According to a breaking report from CoinDesk, the verdict on the Bitcoin (BTC) exchange-traded fund (ETF) application from California-based crypto upstart Bitwise Asset Management has been delayed once again. In a document published Tuesday morning, the U.S. Securities and Exchange Commission (SEC), who presides over such products, revealed that it won’t be issuing a final verdict (approve or deny) just yet.

It appears that the SEC will need to issue its next comment on this crypto-backed investment vehicle in another 45 days or so.

This latest news was somewhat expected, as in March, a delay to May occurred. As reported by Ethereum World News, the SEC used its right to give itself another 45 days to discuss the proposals.

Interestingly, the regulatory entity has yet to comment on the proposal from VanEck and SolidX, which many investors believe has a higher chance of succeeding.

Bitwise Hopeful

While this occurred, Bitwise still believes its proposal should be approved. In a comment made to CNBC earlier this year, Hunter Horsley remarked that cryptocurrencies as an asset class are in their “most viable” state ever. That led Horsley to his next point, as he remarked that considering the market conditions, a crypto-linked ETF could be the logical next step.
When questioned by the CNBC anchor regarding the SEC’s apparent fears of market manipulation, a byproduct of nascent, overseas-based markets, and custody, Horsley responded with confidence.

Interestingly, the SEC’s Hester Pierce is also bullish on a Bitcoin-backed ETF. According to Decrypt Media, the commissioner explained that “the time [for an ETF] was right a year ago”, adding that she is dismayed that regulators are hampering the adoption of this newfangled technology.

Some have been a bit skeptical of an ETF, however. Per previous reports from this outlet, Sam Ahn of Hana Trading released a six-page, nine-point tear down of Bitcoin and the proposed ETF product, which would open the floodgates to BTC. While Ahn’s points were drawn-out, a clear theme of anti-mining, Satoshi Nakamoto cynicism, and “BTC doesn’t have intrinsic value” was apparent. The investor remarked that not only is Satoshi’s magnum opus hard for him to process, but that the cryptocurrency isn’t like gold as in “a string of 64-digits, with about 17 leading zeroes” (hash) cannot be likened to a physical item used in electronics, jewelry, and as a value store.

Title Image Courtesy of Andre Francois Mckenzie Via Unsplash 

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Ethereum News

Coinbase Rolls Out Its USDC Stablecoin to 80+ Countries, Showing Aggressive Global Expansion

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The Coinbase platform has voiced a rollout of its stablecoin to a pack of new countries to let traders around the world use it to their benefit

On May 14, the San-Francisco-based Coinbase exchange has written in its blog that from now on their stablecoin dubbed USD Coin (USDC) will be added for support in 80+ countries globally.

Previously, USDC could be traded only in the US, including New York. The stablecoin can be traded both on Coinbase.com and Coinbase Pro.

Aggressive global rollout of Coinbase

Top centralized digital exchanges in the current market are fighting for every customer, offering new products and expanding in every possible manner. Coinbase is eager to expand and the new 85 countries where USDC can now be traded is a confirmation of that.

Leaving the stablecoin aside, Coinbase can be now accessed by traders in slightly over 100 countries.

Just last month, Coinbase added 11 new countries to the list of its clients. Those include India, where the local central bank, RBI, initiated a crypto ban last year, prohibiting banks to work with crypto startups and exchanges. Apart from India, Coinbase is now accessible in New Zealand, South Korea, Mexico and others.

Recently, Ethereum World News also reported that Coinbase now offers its customers to take advantage of using a crypto Coinbase card, based on collaboration with such a conventional giant of the financial services business as Visa. The card can be used via a special Coinbase app.

Peers are getting ahead

Another crypto exchange, a peer of Coinbase, that has also been expanding quite aggressively is Binance, the Malta-based platform. Binance is considered to have the largest actual trading volumes in the world. Recently, it has launched a decentralized exchange (DEX) on a specially created ledger Binance Chain and is currently moving its native BNB tokens from Ethereum to Binance Chain.

Besides, Binance is famous for its Blockchain Charity Foundation (BCF) and Binance LaunchPad. The latter has been a platform for Initial Exchange Offerings (IEO) for such projects as BitTorrent, and several others, which have conducted their token sales successfully on it.

About USD Coin

USDC was launched by Coinbase and the Circle startup. It is pegged to the USD rate and is backed by actual US dollars stored in the accounts of the partner banks.

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