Bitmex Charged With US Rules Violations - news.bitcoin.com

~ Awareness of a HUGE Vulnerability for All of Us ~


Just looked-up Alexander Vinnik on wiki. Regardless of the charges, I don't know how to feel, why does the US have the right or ability to size a domain name or site ? Doesn't that expose a HUGE vulnerability to all of us and the very few sites we depend upon to interact with cryptocurrency and our funds?
From wiki;
On 28 July 2017, US authorities seized the BTC-e.com domain name and 38% of all customer funds. To repay its customers BTC-e created WEX tokens, which were used to represent customers' seized equity. The WEX tokens represented $1 and were issued to account for the value of customers cryptocurrencies at the time of the theft.
Alexander Vinnik
On 25 July 2017, suspected BTC-e operator Alexander Vinnik was arrested at the behest of the United States Justice Department while vacationing with his family in Greece. Wanted for money laundering by both France and Russia, in addition to the US. Vinnik agreed to be returned to Russia, where he was charged only with fraud. In October 2017 the extradition request by Russia was approved by one Greek court, but the request by the United States was approved by another. The decision to extradite Vinnik to the United States was upheld by the Greek Supreme Court on December 13, 2017. However, in July 2018 Greece agreed to extradite Vinnik to France instead, giving precedent to the European warrant. A final ruling is scheduled for September 19, though Vinnik's lawyer claims that "the decision on Vinnik's extradition to Russia has been made".
A plot to murder Vinnik in prison was uncovered in early 2018. In September 2018, Bloomberg News reported on a potential link between Vinnik and Russian hacking group and intelligence service Fancy Bear. An Elliptic) blockchain analysis of a bitcoin transaction linked Vinnik's former employer, BTC-e to the group and this strengthened the American interest of extradition. Vinnik maintains his innocence of any wrongdoing, but has chosen to cooperate from Greece.
Also, here is a Max Kaiser video that kind of relates to this exact question; Not Your Settlement Layer - Not Your Bitcoin
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morning briefing

Shares of Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet (GOOG, GOOGL) were hit after the close on Tuesday, all falling over 1%, as the DOJ followed Attorney General William Barr's interest in launching a broad antitrust investigation into Big Tech. Much of the rally on U.S. indices has been fueled by the FAANG stocks and a prolonged legal affair - as well as Netflix (NASDAQ:NFLX) growth worries - could erode some of that sentiment. Nasdaq futures are off by 0.7% on the news, ahead of today's quarterly report from Facebook, and Q2 results from Amazon and Alphabet on Thursday.
Brexit team
Boris Johnson will formally take office this afternoon, unveiling the names of his Cabinet and the team he has tasked with delivering Brexit. Investors are particularly interested to see who will be handed the top jobs such as chancellor of the exchequer, foreign secretary and Brexit minister. Johnson has pledged to negotiate a new Brexit agreemnt with the EU before Oct. 31, but if the bloc refuses, he has promised to leave without a deal on Halloween. Go Deeper: Tim Worstall sees life in the U.K. economy.
IMF trims growth projection
The International Monetary Fund cut its global growth outlook yesterday to 3.2% in 2019 and 3.5% in 2020, both down 0.1 percentage points from its April projections. "Dynamism in the global economy is being weighed down by prolonged policy uncertainty as trade tensions remain heightened despite the recent U.S.-China trade truce, technology tensions have erupted threatening global technology supply chains, and the prospects of a no-deal Brexit have increased," the IMF said in a statement. Go Deeper: Review economic performance by country over the past year.
Restructuring costs bite
Deutsche Bank (NYSE:DB) is off 3.5% premarket after reporting a €3.15B loss in the second quarter, due to a large restructuring charge that wiped out what would have been a modest profit. "This decline is mainly due to our decision to exit substantially all of our equities sales and trading business," the bank said in a statement. Deutsche's shares have fallen more than 30% in the last 12 months, hit by a host of scandals relating to historical anti-money laundering failures. Go Deeper: Check out Deutsche Bank stats and ratings vs. its peers.
Car cuts
A big wave of layoffs is coming to Nissan Motor (OTCPK:NSANY) as the automaker plans 10,000 job cuts globally as part of efforts to turn around its business, Kyodo News reports. The number, which represents around 10% of its global workforce, is much larger than an earlier 4,800 estimate. The announcement will be revealed along with Nissan's Q2 results tomorrow and comes as the automaker struggles to restructure its management team following the arrest of former Chairman Carlos Ghosn.
More auto news
Due to legal risks for diesel-related issues and the cost of replacing Takata (OTCPK:TKTDQ) airbags, Germany's Daimler (OTCPK:DDAIF) said it would intensify cost cuts after reporting a €1.56B loss before interest and taxes in the second quarter. French peer PSA Group (OTCPK:PEUGF) still managed to turn a profit in that period despite a weaker outlook for car sales. Recurring operating income at the maker of Peugeot and Citroen cars rose 10.6% to €3.34B, lifting its operating margin to a new record of 8.7% in January-June. Go Deeper: Look at the holdings in the Global Auto Index ETF (NASDAQ:CARZ)
F-35 parts sourcing
Lockheed Martin (NYSE:LMT) is working to establish alternate supply sources for F-35 parts in the U.S. after the Pentagon decided last week to remove Turkey from the fighter jet program. "We have a timeline that we're working towards... it's out through March of 2020 that we think it will all be resolved," CEO Marillyn Hewson said on a conference call. Turkey previously said it planned to buy a total of 100 aircraft over the years, but following President Trump's sanctions, Ankara will not be able to buy the jets.
KKR devours Arnott's
Just weeks after offloading its Kelsen snacks line to Nutella maker Ferrero, Campbell Soup (NYSE:CPB) is selling its Australian snacks unit Arnott's to KKR (NYSE:KKR), in a deal local media reported was worth $2.2B. Food M&A in Australia is getting hot. Last Friday, Anheuser-Busch InBev (NYSE:BUD) agreed to divest its Australian operations - with best-selling labels like VB and Carlton Draught - to Japan's Asahi (OTCPK:ASBRF) for $11B. CPB +1.3% premarket.
Sunday and drone delivery
United Parcel Service (NYSE:UPS) will start delivering packages on Sundays starting in January, following FedEx's (NYSE:FDX) announced move to seven-day delivery as the two work to meet the demands of online shopping. UPS also announced a new drone delivery subsidiary called UPS Flight Forward and said it has applied for FAA certifications needed to expand the business. Those would allow drone flights beyond an operator's visual line of sight, at night and without limit to the number of drones or operators in command. Go Deeper: See the LATEST ANALYSIS on the stock and join the discussion.
What else is happening...
'Generate a 50% return from the corn market,' writes contributor Atlas Research.
Apple (AAPL) seeking Mac Pro parts tariff exclusion.
LinkedIn moving to Microsoft's (NASDAQ:MSFT) Azure three years after $27B acquisition.
Tilray (NASDAQ:TLRY) acquires boozy candy company to develop CBD edibles.
Sooner-than-expected? WeWork (VWORK) aims for IPO in September.
Coca-Cola (NYSE:KO), PepsiCo (NASDAQ:PEP) break ties with plastic lobbying group.
Starbucks Delivers (NASDAQ:SBUX) to go nationwide in 2020.
Tuesday's Key Earnings Biogen (NASDAQ:BIIB) +4.9% topping forecasts. Coca-Cola (KO) +6.1% boosted by new products. Chipotle (NYSE:CMG) +3.2% AH with comp sales increasing 10%. JetBlue (NASDAQ:JBLU) +1.7% surpassing Q2 estimates. Hasbro (NASDAQ:HAS) +10% as Disney initiatives paid off. Harley-Davidson (NYSE:HOG) +6.4% topping EPS expectations. Kimberly-Clark (NYSE:KMB) +0.6% raising 2019 guidance. Lockheed Martin (LMT) +0.1% amid strong sales. Snap (NYSE:SNAP) +9.1% AH smashing estimates. Texas Instruments (NASDAQ:TXN) +7.2% AH beating expectations. Travelers (NYSE:TRV) -1.5% on elevated weather losses. United Technologies (NYSE:UTX) +1.5% raising outlook. Visa (NYSE:V) -0.5% AH toning down 2019 EPS guidance. Today's Markets In Asia, Japan +0.4%. Hong Kong +0.2%. China +0.8%. India -0.4%. In Europe, at midday, London -0.8%. Paris -0.5%. Frankfurt +0.2%. Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.7%. Crude +0.4% to $56.97. Gold +0.4% to $1426.80. Bitcoin -2.1% to $9758. Ten-year Treasury Yield -2 bps to 2.05%
Today's Economic Calendar 7:00 MBA Mortgage Applications 9:45 PMI Composite Flash 10:00 New Home Sales 10:30 EIA Petroleum Inventories 11:30 Results of $20B, 2-Year FRN Auction 1:00 PM Results of $41B, 5-Year Note Auction
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What Are the Biggest Alleged Crypto Heists and How Much Was Stolen?

What Are the Biggest Alleged Crypto Heists and How Much Was Stolen?
https://preview.redd.it/svrbgh5fcyg31.jpg?width=2000&format=pjpg&auto=webp&s=9d5b11523cdd8873d37becbef5726d68dc821460

As the appeal of cryptocurrency has grown, so has the opportunity for scammers to part naive investors from their money. 2019 has been no exception, with cryptocurrency and blockchain forensics company Ciphertrace dubbing it “the year of the exit scam.”
Exit scams are not a new phenomenon, with a 2018 report conducted by Statis Group revealing over 80% of initial coin offerings (ICOs) in that year to have been fraudulent. Here, Cointelegraph explains exit scams and how to spot them, as well as a look at some of the biggest scams that have been discovered by various researchers.

What are exit scams?

The premise of cryptocurrency is simple, a new ICO launches, claiming to offer lucrative returns for investors. Investors can’t believe their luck and clamor to buy in. The business runs for some time on the back of the invested capital, but, sooner or later, disaster strikes and the company shuts down, often with no explanation.
After a while, it becomes obvious that the company is gone for good, along with the invested funds. The poisoned chalice of crypto’s decentralized nature often means that investors are left in the dark when trying to recoup or trace their pilfered funds.

How to spot an exit scam

Many exit scams have tell-tale signs that investors should look out for. The financial content site Investopedia has a handy list of key characteristics.
First, exit scams often have inconsistent or misleading information about the team behind the project. When scouting potential investment opportunities, investors should scour for information on key members of any ICO.
It’s important to remember that online credibility can be faked by purchasing likes, profiles and followers on social media. Celebrity endorsements with verified accounts could also ring alarm bells for investors. A fake Twitter account purporting to be Elon Musk, with a supposedly verified twitter account, raised over $155,000 as part of a 2018 Bitcoin scam.
Investors should verify the credentials of backers, team leaders and promoters of cryptocurrency projects. Although individuals may seem to be legitimate at first glance, brand new social mediaprofiles and few followers or connections should raise eyebrows.
The most significant characteristic unifying exit scams in cryptocurrency is the promise of a huge return on investment (ROI) — chances are that it’s probably too good to be true. Investors should always look through even the smallest details of what they are required to invest and what the company purports to be able to give back to them.
ICOs usually come with a white paper, setting out the design details of the project along with a business plan and other information. Investors should pursue all available information for ICOs, as any vagueness in the white papers should signal a big red flag.
When investing in an ICO, it’s vital to get an understanding of the business model. Investopdia writes that anything powered by concept alone should be a warning to anyone tempted to buy in. Although cryptocurrency projects can and do launch off the back of technological advances, investors should be wary of projects looking to gather millions of dollars before taking a sober look at the project’s ability to return the investment from the published information.
Heavy promotion of an upcoming ICO can also be a sign of an exit scam. Past scams have employed bloggers to promote via numerous forums. Ads both online and in print media could also be suspicious.

$2.9 billion PlusToken scam could be largest exit scam ever

A 2019 report shared with Cointelegraph by the cryptocurrency and blockchain forensics company Ciphertrace dubbed 2019 the year of the exit scam and highlighted the billions of dollars stolen in multiple scams this year alone.
The report shines a light on what, if confirmed, could be the biggest crypto scam ever, with an estimated loss of around $2.9 billion after Chinese police uncovered an alleged Ponzi schemeinvolving the South Korean wallet provider and exchange PlusToken. Although more is being uncovered about PlusToken, mystery still surrounds the key events.
Ciphertrace reports that the platform has enshrouded several Chinese nationals, the government of Vanuatu, the Chinese police and the company’s co-founders — a South Korean man operating under the alias of “Kim Jung Un” and a Russian known only as “Leo.” The alleged PlusToken scam centers around an app with which the wallet provider claimed investors could invest in PlusToken (PLUS).
According to the report, the firm claimed that the token, based on the Ethereum blockchain, was developed by a major technology company. PlusToken is also said to have falsely stated that it could deliver wallet holders an ROI of between 8% and 16% per month, with a minimum deposit of $500 in crypto assets.
Ciphertrace also reported that no verifiable source of revenue existed other than the proceeds from new membership. Those were onboarded per the traditional method of a Ponzi scheme, which require a constant stream of new investment in order to support its semblance of growth. Investors were incentivized to recommend new users with an invitation, which was the only way to join.
Although this was enough for some members to dismiss the legitimacy of the project outright, Leo, the company’s co-founder, published a press release that claimed he had met with Prince Charles, the future head of the English royal family, providing photos as proof. Ciphertrust reported that it had contacted the Prince Charles Foundation, which confirmed that Leo had indeed attended the event, but would not provide other information about the individual due to European Union General Data Protection Regulation, or GDPR.
PlusToken’s fate was seemingly sealed on June 28, after members of the Chinese police touched down in Vanuatu, detained six people involved with the project and extradited them back to mainland China. Ciphertrace reported that the so-called “PlusToken Six” were either Vanuatu citizens or applying for citizenship at the time of their arrest.
Soon after, PlusToken members found that they were unable to withdraw funds from their accounts. Customers were informed that withdrawals via the app were frozen due to “technical difficulties.” By June 20, the PlusToken app had ceased operations due to purported system maintenance.
For investors, there seems to be no secure lead on the final resting place of the allegedly billions of dollars of stolen funds. The Chinese government has yet to comment. A July 12 post from PlusToken stated that the six Chinese individuals were simply service users and not actually involved with the running of the company itself, stating that users should ignore the rumors and not try to log in until they receive confirmation that the servers are back online.

Pincoin

On April 9, 2018, two ICOs — iFan and Pincoin — operating under the umbrella of company Modern Tech based in Vietnam, went silent after reports outed them as scams that had scalped 32,000 investors out of an alleged $660 million in tokens, according to Tuoi Tre News.
Victims claim that the damages amount to roughly 15 trillion Vietnamese dong ($660 million) in token sales. Angered investors held a demonstration outside Modern Tech’s Ho Chi Minh City headquarters on April 8.
One of the initial characteristics that could have alarmed investors was the fact that Pincoin offered service users bonuses for successfully bringing other people on board. Pincoin did initially pay out cash until January 2018, when the company switched to iFan tokens, TechCrunch reported.
The owner of Modern Tech’s office building said that the company left its offices in March and that no one knew their current whereabouts. The firm left behind only an incomplete website that is now inactive. Modern Tech initially tried to pass itself off as a mere representative of both coins in Vietnam, prior to media reports confirming that seven of its Vietnamese executives were in fact behind the projects.
TechCrunch reported that the ambiguous mission statement from the then-functional site is typical of the vague and jargon-filled copy used by exit scammers:
“The PIN Project is about building an online collaborative consumption platform for global community, base on principles of Sharing Economy, Blockchain Technology, and Crypto Currency”
Financial scam directory Behindmlm released a report in February 2018 that found its buy-in method was typical of an ROI Ponzi scheme. Pincoin’s website is currently down, though iFan’s is still online.

QuadrigaCX — regulators catch on

The death of 30-year old Gerald Cotten shook the crypto world — not only because Cotten was the co-founder and CEO of Canada’s largest cryptocurrency exchange, QuadrigaCX, but also because his control of the passwords and keys to accounts rendered all the assets on the exchange forever inaccessible after his death. Cotten took over $195 million of stolen cryptocurrency with him to the grave.
Related: QuadrigaCX Users Lose $190M as Speculations Over Cotten’s Death Swirl
Commenting on the May 9 Ernst & Young report, Ciphertrace said Cotten had played fast and loose with customer funds for many years in order to support a lavish lifestyle for both himself and his wife. Cotten allegedly exercised complete control over the exchange and used his position to perform “unsupported deposits” — i.e., fabricated transactions not represented by either fiat or cryptocurrency.
Cotten also used significant volumes of customers’ cryptocurrency via transfers from the platform into other exchanges he controlled. As per the EY report, Cotten shifted significant amounts of fiat and cryptocurrency between alias accounts, although less than 1% of these transfers was supported by documentation. Ciphertrace notes that as the admin, Cotten was in a perfect position to hide his fraudulent activities.
In a pattern that may now seem familiar, Cotten used customer funds to pay for QuadrigaCX operating costs after the company suffered liquidity issues due to his reported fraudulent use of user deposits. As QuadrigaCX began to struggle to stay afloat, EY reported that Cotten gambled customer funds in off-platform margin accounts to meet margin calls.
The report also states that Cotten traded unsupported deposits for legitimate funds thereby generating artificial trading markets, abused his position to override Know Your Customer requirements and hoarded all passwords:
“The Monitor understands passwords were held by a single individual, Mr. Cotten and it appears that Quadriga failed to ensure adequate safeguard procedures were in place to transfer passwords and other critical operating data to other Quadriga representatives should a critical event materialize (such as the death of key management personnel).”
As of April 12, EY estimated that Quadriga held around $20.8 million in assets and around $160 million in liabilities. The debts and assets are spread over three subsidiary companies, 0984750 B.C. LTD. (the “Quadriga Estate”), Quadriga Fintech Solutions and Whiteside Capital Corporation. On July 31, the Supreme Court of Nova Scotia approved over $1.6 million in fees for parties seeking remuneration from the exchange, according to court documents.PDF) seen by Cointelegraph.

CFTC action launched after $147 million BTC scheme

On June 18, 2019, the United States Commodity Futures Trading Commission (CFTC) initiated a civil enforcement action against now-defunct Control-Finance Limited for a scheme involving $147 million worth in Bitcoin.
It is alleged that Control-Finance Ltd. defrauded over 1,000 investors by laundering around 22,858 Bitcoin. In mid-September 2017, its website was abruptly taken offline, payments to clients were suspended and advertising content from social media accounts was deleted.
The firm initially said that it would reimburse customers by late 2017. However, the company allegedly began transferring laundered Bitcoin by using the crypto wallet service CoinPayments. According to Ciphertrace’s Q2 2019 Anti-Money Laundering (AML) report, the CFTC complaint charges the company and its founder Benjamin Reynolds with:
“Exploiting public enthusiasm for crypto assets by fraudulently obtaining and misappropriating at least 22,858.22 Bitcoin from more than 1,000 customers through a classic high-yield investment (HYIP) Ponzi scheme called the Control-Finance Affiliate Program.”
Per the CFTC, the company claimed that investors who buy Bitcoin through the firm would be guaranteed daily profits thanks to their team of expert cryptocurrency traders. The complaint also stated that the firm falsely claimed market volatility would ensure funds invested through Control-Finance would result in profit.
The CFTC also alleged that Control-Finance misleadingly promised that it could earn customers a 1.5% ROI daily and 45% monthly. Control-Finance is also reported to have sent partial amounts of new clients’ BTC deposits to other customers, which were disguised as profit from trading, a tactic typical of Ponzi schemes. The legal action seeking civil monetary penalties and permanent trading bans continues.

Co-owner of Bitmarket found shot dead after alleged exit scam

On July 8, the Poland-based exchange Bitmarket shut down, citing liquidity issues. According to Ciphertrace’s Q2 2019 AML report, the shutdown cost users around 2,300 Bitcoin, approximately $23 million. Users attempting to log on to the site were met with the following message:
“We regret to inform you that due to the loss of liquidity, since 08/07/2019, Bitmarket.pl/net was forced to cease its operations. We will inform you about further steps.”
Ciphertrace reports that Bitmarket had a history of partners pulling out. In 2015, the firm lost payment processors CashBill and BlueMedia after the companies' banks requested they end their working relationship with Bitmarket. PKO Bank Polski, Bitmarket’s own bank, also terminated its relationship with the firm only six months after Bank BPH had done so earlier in 2015.
Bitmarket’s two founders, Marcin Aszkiełowicz and Tobiasz Niemiro, have contradicting accounts about the misplaced user funds. Aszkiełowicz claimed that the exchange had been hacked for 600 BTC in 2015, an incident from which the company was unable to recover.
Niemiro, however, claimed that he was not responsible for activities on the exchange. Niemiro also purported to have been told that the company was purchased with a deficit of 600 BTC, which he allegedly repaid with his own money. Niemiro said he could not confirm that his partners had indeed used the money to purchase the 600 BTC.
Two weeks after the interview, Niemiro was found dead in a forest near his home with a gunshot wound to the head, which the police deemed to be self-inflicted. The District Attorney’s Office stated that it is not looking into the involvement of third parties in Niemiro’s death, but are still actively investigating the misappropriation of funds.
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NEO & BEE: THE FULL PICTURE

NEO & BEE: THE FULL PICTURE
This is a reconstruction of the events that took place from the 17th of March up to the 18th of April 2014, surrounding the collapse of Neo & Bee (N&B). Within one month N&B, initially believed by many to be a promising bitcoin start up, vanished from the surface of the earth with its CEO still being on the hide with an arrest warrant issued for him for serious criminal charges.
The timeline is derived from press reports, N&B announcements, Cypriotic police announcements, posts of Danny Brewster on Reddit and Bitcointalk, the post of N&B management team on Reddit and the subsequent AMA session, tweets by Brewster, tweets and posts on Reddit by Tuur Demeester and Andreas Antonopoulos, and other publicly available sources.
September 2013 - February 2014: Brewster raises, through an IPVO in 3 exchanges, approximately 9,400 BTC for LMB Holdings, a UK “virtual entity”.
September 2013 - March 2014: Brewster spends around 4,400 BTC in setting up N&B in Cyprus amidst one of the most aggressive marketing campaigns ever launched by a bitcoin company, with the motto "Who is Neo?”.
On the 24th of February 2014 N&B opens its first branch in Nicosia Cyprus amidst a lot of enthusiasm, with the share price at Havelock almost doubling the IPVO price.
17th March: 6 months have passed since the publication of the original LMB Prospectus (September 2013) and even though investors were promised quarterly financial statements (copy from prospectus: “Quarterly financial statements will be published across all supported platforms where LMB Holdings shares are available to be purchased”), the company has not published a single financial statement. Investors that inquire about this in Reddit and Bitcointalk as early as December 2013, are always reassured by Brewster (“Cryptocyprus”) that the financial information “will be out very soon”. On March 17th, Brewster tweets that all financial information, projections and appendices "will be released later this week".
18th March: Brewster publishes an Updated LMB Prospectus of LMB (v.2.0) against the advice of his management team because, according to a later statement of them, "a lot of content was incorrect". To the surprise of many, the Updated Prospectus does NOT include any historic financial statements for the first 6 months of operations, nor any financial information or projections. Actually it does not include any “accounting or finance items” whatsoever. In spite of the absence of any finance and accounting numbers, on the same day, Tuur Demeester tweets: “The Neo & Bee prospectus is teaching us about the future of finance, so important reading!”. Apart from the "incorrect content", the prospectus includes misrepresentations such as the presentation of PricewaterhouseCoopers as the auditors of the company – copy from Prospectus: “We are also subjecting ourselves to external auditors for added transparency, we are working with Price Waterhouse Coopers (PwC)”. The Prospectus refers to an “advisory board” whose only member is Antonopoulos. The sole member of the Board of Directors is Danny Brewster as no other board members are revealed.
18th March: Brewster tells a member of the management team "we have 5,000 BTC left".
As from March 18th, Brewster, an active user of social media with daily presence for months, goes completely silent and absent from Reddit, Bitcointalk, Facebook and Twitter.
19th March: The next day Brewster shocks the management team by telling them that the 5,000 BTC have…..overnight become only 140! "Actually I thought we had 5,000, but I have checked the wallet and the coins are not there, I spent them somewhere but I don't remember on what.......we have only 140 coins left. I am going to the UK to find investors. I will send you the 140 coins left and also sell my Mercedes and Bentley and will send you the money to pay the March salaries and the creditors".
20th March: Brewster goes to N&B offices for 1 hour. Management team tells Brewster that they want him to step down from CEO. Brewster agrees to step down after transferring control of the company to “investors”, without these investors being identified.
21st March: Brewster goes to N&B offices for 1 hour and then disappears and remains out of contact with anybody from the management team.
21st - 27th March: The Mercedes is reported sold but the funds from the sale and the 140 N&B coins "travel" together with Brewster to the UK, instead of being sent to the management to cover salaries and creditors as promised. The Bentley is reported to be in a car dealership in Nicosia with changed plates, it is unknown whether it has been sold as well with proceeds being taken by Brewster, or whether it is up for sale.
Rumors start spreading on Reddit and Bitcointalk that N&B collapsed and that Brewster ran away with the investors’ coins, leaving behind unpaid employees and around €1M unpaid creditors.
Many members of the bitcoin community, investors etc., reach out to Brewster on social media asking for clarifications. Brewster is nowhere to be found.
Members of the community post on Reddit and Bitcointalk and tweet Demeester, Antonopoulos and N&B asking what the hell is going on. None of them has a clue and no official announcement is made. Some persons visit the branch and find it closed. Other persons call the company and the reply is “leave your details and we will call you back”.
27th March: With Brewster into the hide the management notes "abnormal trading" on the shares of the company on Havelock and the N&B Compliance Officer sends recommendation to Havelock to stop trading of the shares.
28th March: TAT (ThickAsThieves) terminates his contract as pass-through manager for NeoBee shares on Havelock. Havelock suspends trading of NeoBee shares.
Brewster finally makes a contact with the management and says he received a threat for his daughter on the 26th. However, he cannot explain why he disappeared from all social media since the 18th and from the company since the 21st (!). Also strange is the fact that although he claims that the “threat” was for his daughter, he decides that the best course of action is to leave her in Cyprus and him to go into the hide in the UK (!). Brewster says the threats "have been reported to the relevant authorities".
29th March: Management team contacts Cypriotic Police asking about the threats against Brewster. Police says this is the first time they heard about it and no reporting of any threats has been made.
31st March: With Brewster into the hide, the management sends him a demand letter requesting he returns and give explanations regarding his absence in the face of dire problems with the company
2nd April: Brewster posts on Bitcointalk saying staff might be responsible for the threats and that's why he is out of contact with them.
A new shocking assertion comes to light. Even though Brewster publicly and proudly claimed in the last weeks that he did not lose any coins on Mt.Cox as "the signs were there", in his post on Reddit he now claims that he lost coins on Mt.Cox. He also claims that "all bitcoins (raised in the IPVO) are accounted for". Furthermore, he claims that he doesn’t hold any funds/bitcoins that belong to customers: He writes: "I would like to reiterate that ZERO customer funds are under my control" (“capital letters” in ZERO being his emphasis)
4th April Trading of NeoBee shares on Havelock restarts without an explanation whether this was done by Havelock deciding on their own or under instructions from Brewster.
2nd - 15th April: Brewster’s disappearance continues, all employees resign, the offices and the branch close down, and the N&B brand becomes a joke in Cyprus with the media making derisive and derogatory comments "Where is Neo?" (paraphrasing the motto of the marketing campaign "Who is Neo?"). Brewster remains on the hide until news break out that an arrest warrant has been issued by the Cypriotic Police. Police says that Brewster is wanted for criminal charges including theft, forgery, counterfeiting and money laundering and for taking customers' and employees' coins and running away
15th April: Brewster posts for the second time on Reddit saying that although there is an arrest warrant for serious criminal charges he doesn't plan to return to Cyprus soon because he has to...attend a funeral in the UK (!), and that he can clear out all criminal charges whilst being in the UK. Also, in his post on Reddit, he instructs the Cypriotic Police to...pick up their phones and ....open their emails because he calls and emails them for days, and nobody cares to answer him (!). He also hints that “The manner in which the investigations are being carried out are concerning”, implying that the police might have set him up. He admits publicly that even though a threat was made against his daughter, he actually left her in Cyprus and he went into hiding in the UK. Even though on his posting on Bitcointalk on 2 April he reiterated that “ZERO customer funds are under my control", he now admits that he does, in fact, hold the coins of several customers and instructs the customers via the posting on Reddit “to provide me with their addresses so I can arrange for the bitcoins to be sent to them”. In this post a new shocking assertion is now made by Brewster, as he now presents a new excuse for the "lost coins". He now claims that he had sold all company coins that were at his disposal on the date Silk Road was busted (2 October 2013) at low prices and that's why he is now insolvent!
16th April: Official Spokesman of Cypriotic Police says the investigations against Brewster are "in an advanced stage" and does not rule out the issuance of a European or even an International arrest warrant.
18th April: Ex-senior N&B management team posts a detailed statement on Reddit saying "it is appropriate and justified to make the following statement regarding the mistruths and outright lies being fed by Brewster to investors, creditors and the public". Team says that there was never any accountability by Brewster about the money raised in the IPVO, in spite of repeated attempts by CFO and Compliance Officer to extract information from him. Even though Brewster claimed that "every coin can be accounted for", the CFO and the management team say that several thousands of coins "cannot be accounted for". CFO hasn't got a clue about what happened and around 5,000 coins are missing. Brewster said he had them on the 18th but “were lost” on the 19th of March. Later he claimed that they were all sold on 2 October 2013. Management also reveals that there have never been any financial reports or financial statements that were promised on several occasions by Brewster to the investors (in the original prospectus, in the updated prospectus and in social media). Management also reveals that in the prospectus issued on March 18th by Brewster against their advice, "a lot of content was incorrect" and included misrepresentations such as presenting PricewaterhouseCoopers as the auditors of the company. Management also reveals that Brewster took away with him customers' as well as employees' coins, even though Brewster claimed that "ZERO customer funds are under my control".
Tuur Demeester posts on Reddit admitting that “things have taken a dramatic turn for investors and employees with N&B. The gist of it is that CEO Danny Brewster has disappeared, and with him apparently thousands of bitcoins from investors”. Andreas Antonopoulos posts on Reddit stating that “I was as surprised and bewildered by these events…dismayed that another bitcoin company had imploded amidst allegations of fraud and leaving many investors, creditors and employees with serious losses…all of whom betrayed by Danny”.
N&B has collapsed, with thousands of coins missing and unaccounted for. It is revealed that after 6-7 months of operations the company didn’t manage to come up with any product, had zero revenue, and never produced any type of financial statements.
The CEO is still in the hide and wanted by the Cypriotic Police.
submitted by NBFullPicture to Bitcoin [link] [comments]

Arrested by the police for localbitcoins business

In September and October, I sold 213 BTC (gradually) to some random guy on localbitcoins. Everything went fine, each time I got the money, I sent the bitcoins. 5 days after the last transaction, I get arrested by the police. "Where does this money come from?" I explain about bitcoins, and tell them all I know about the random guy, I volunteer my phone to analyse my emails and check my story. Once they were sure that the guy contacted me and not the other way around, I was finally free to go. Later they told me that the money was stolen and they thought I was doing money laundering.
Now after almost 3 months and a lot of back and forth with the police, they are now suggesting that I send back the money. I would gladly do that if they arrested the criminal and found out he can not repay. Right now if I send back the money, the innocent person who got his money stolen gets it back, but then I become the innocent person who got his money stolen, so that makes no sense to me.
Edit: I just saw a lawyer. According to him I already won the case. But it's going to cost me some serious money in lawyer's fees... More than my cumulated profits. I take that as the cost of a great life lesson and a wake-up call.
He also told me I can disclose the info that the police already knows. So here we go. I'm in Brisbane, Australia. The reason the police froze my account and not the criminal's account is that they wanted to know where the money was going. The police are regularly checking my house to make sure the criminal is not seeking revenge (he has my full address and I have 2 kids).
submitted by throw_localbitcoins to Bitcoin [link] [comments]

Prelim analysis of latest Q drops

Something Styxhexenhammer666 said that he lifted from 4chan:
"super bowl" <==> "superb owl"
Reference to Molach Owl at bohemian grove, since it's ok to talk about 'secret societies' from the memo drop
Q posts
Why did the #Memo drop a Friday [& before the SB]?
Because they were going to try to assassinate you at the SB or have a false flag BAIN type event there, just like batman BAIN did at a large sporting event or like black sunday film 1977 with PLO group black september) at the superbowl
Stock market DIVE [666 - coincidence?]. Soros transfer of wealth.
Funny how they put it in your face and you STILL think that the market is not rigged...Bitcoin will be the same thing
What's Soros need all that money for? Oh that's right Trump froze his assets
Rothschild estate sale [Black Forest].
90M EU is nothing to the Rothschilds. They needed fast liquidity for some reason...or worse, they needed to change ownership quickly to inhibit investigations into the land...after all it was hunting land. Think that's deer they were hunting? Deer is for the mundane / vulgar humans to hunt. We're Rothschilds, we have a more impressive quarry
Dopey FREED.
Who is dopey? John McCain? Or Hillary? or Al Waleed?
Marriage for POWER, not LOVE.
Duh
Hilton/Roth.
http://www.abovetopsecret.com/forum/thread1194643/pg1
http://media.gettyimages.com/photos/james-rothschild-and-nicky-hilton-rothschild-attend-the-opportunity-picture-id672598888?s=612x612
https://opportunitynetwork.org/wp-content/uploads/2016/03/BDP_0594.jpg
https://proxy.duckduckgo.com/iu/?u=http%3A%2F%2Fstatic5.businessinsider.com%2Fimage%2F5a27fe723dbef4b5748b9eca-1746%2Fgettyimages-51571158-1.jpg&f=1
https://epeak.in/wp-content/uploads/2018/01/paramount-network-boss-addresses-harvey-weinsteins-involvement-in-twc-series-waco-yellowstone.jpg
Think Mirror. Which team?
??
THEY don't know. APACHE.
I assume apache helicopter coming to pick them up for the bad place. Could also be reference to alt theory of vegas incident where stephen paddock was selling those arms to waleed in the us to do the hit, but it went sideways and they killed paddock left him as a patsy. People being shot was cover fire for an escape.... that apache were waleeds and THAT was the escape I'm talking about the black helicopter shooting at people NOT the police/fbi copters
20/20 coming.
Revelations / Red pill for the left is coming
PUBLIC is VITAL. RELEASE of INFO VITAL. OUTRAGE. JUSTICE.
Lots of infoplops are forthcoming to convince the left of the veracity of the vast conspiracy
Can we simply arrest the opposition w/o first exposing the TRUTH?
Rhetorical. No you cannot. Government governs by public consent and so public opinion is more important than law
FOLLOW THE LIGHT.
"You betcha"
More on Nicky Hilton / James Rothchild*
More damn russian foster kid adoption with weird ties to health and experimentation. This charity could be a money laundering operation, to take aids charity money to fund playgrounds in russia, pocketting half; where of course charity operators would have to provide oversight...over seeing, over sea-ing kids, putting them in [un]safe houses, putting them into psychology programs and other 'experimenta curricula' for developmentally disabled kids.
https://www.nakedheart.org/en/
http://i.magaimg.net/img/2km0.png
http://i.magaimg.net/img/2km2.png
https://www.nakedheart.org/en/what-we-do/every-child-deserves-a-family/
submitted by 911bodysnatchers322 to TruthLeaks [link] [comments]

Cryptokidnapping, or how to lose $3 billion of bitcoin in India

Investigators across Gujarat and in the Indian capital of New Delhi say complaints about crypto frauds began pouring in after the U.S. cease-and-desist letters.
Accusations of tax evasion and police corruption, a kidnapper who was kidnapped, a fugitive politician, and billions in bitcoin lost. This is crypto-trading Gujarat-style.
The ingredients are part of an investigation in Indian Prime Minister Narendra Modi’s home state into allegations that investors poured cash into a bitcoin-based Ponzi scheme that could exceed the country’s largest banking scandal. The fallout extends as far as Texas and has embroiled a former lawmaker, tarnishing Modi’s ruling party months before an election.
It began in February, when property developer Shailesh Bhatt charged into the Home Minister’s office in Modi’s home state of Gujarat, claiming he had been kidnapped by a group of policemen and told to pay 200 bitcoin, worth some $1.8 million at the time, for his release. He said he had nowhere else to go.
The state’s elite Criminal Investigation Department was called in and the evidence it has uncovered points to a potential fraud on an epic scale. Eight policemen have been indicted and suspended pending trial. The abduction was allegedly spearheaded by Bhatt’s associate, Kirit Paladiya, and masterminded by Paladiya’s uncle Nalin Kotadiya, a former lawmaker in Modi’s ruling Bharatiya Janata Party, according to Ashish Bhatia, the lead CID investigator. Bhatt has been charged too, as the allegations of kidnapping widened.
Paladiya is now in jail, facing charges of abduction and extortion, and Bhatt and Kotadiya are both absconding, according to police. Kotadiya posted a video via Whatsapp in April denying wrongdoing and saying he’d informed authorities about the crypto scam, said Prashant Dayal, a senior Gujarati journalist who broke the story.
In the video, reposted on Youtube, Kotadiya says Bhatt is responsible for the scam and threatens to release evidence that could implicate other politicians. Both Bhatt and Paladiya have denied wrongdoing, according to their lawyers.
Between late 2016 and early 2017, Bhatt invested in BitConnect, a cryptocurrency firm that was being promoted in Gujarat by a man called Satish Kumbhani, according to Bhatia, the CID investigator, in an interview at his office late June.
Kumbhani is one of the founders of BitConnect, which has allegedly scammed individuals across the globe, according to Crypto Watchdogs, a group of six investors who’ve filed a U.S. federal lawsuit against the company. The firm recruited clients worldwide to deposit bitcoin and receive BitConnect coins they could lend at interest rates of more than 40 percent a month. The interest they earned was higher if they recruited others to invest. Attempts to contact the company and Kumbhani for comment were unsuccessful.
As the price of bitcoin soared last year from less than $1,000 to more than $19,700, so did BitConnect’s value. Bhatt and other investors in Gujarat poured bitcoin worth $3.2 billion into Bitconnect, according to Bhatia.
The vast inflows from Indian investors were partly the result of Modi’s shock move in November 2016 to invalidate banknotes worth 15 trillion rupees in an effort to curb tax evasion, according to a chartered accountant in Gujarat. Modi, who faces federal elections in early 2019, ruled the state as chief minister for more than a decade before becoming prime minister in 2014 with the promise of stamping out corruption.
As a result of Modi’s 2016 demonetization, about 45 billion rupees ($650 million) flowed to Gujarat’s port city of Surat, to be hidden away in assets including cryptocurrencies, said the accountant, who asked not to be identified because his clients include some of the city’s biggest diamond and textile traders.
Surat, the heart of the scandal, is famed for its entrepreneurial merchants who travel the world to set up a “dhandha,” or family business. Their tight-knit communities dominate Antwerp’s diamond trade and own a quarter of U.S. motels.
In the days following Modi’s demonetization -- when Indians were given about 60 days to bank their higher-value banknotes or lose them -- Google marked a surge in queries from the country on how to launder untaxed cash, or black money. Most of the searches came from Gujarat, Google Trends show.
One answer was to switch to cryptocurrencies. Crypto chatrooms around the world soon were abuzz about a surge in demand from Indians who were paying a 25 percent premium for bitcoin.
“After demonetization, we were watching India,” said Kiran Vaidya, a product manager at Toronto-based U.Cash and a blockchain adviser to Canadian banks. “We’d seen how bitcoin rose after the Greece economic crisis and similarly after things went south in Venezuela. The volumes were so high that it was obviously people who had the capacity to move markets."
While the initial rush may have been black money, there were cases of people selling houses and cars in hopes of doubling their investment, said the CID’s Bhatia.
Then, on Jan. 4, 2018, the state of Texas filed a cease-and-desist order against BitConnect. North Carolina followed five days later. The news came as the price of bitcoin crashed.
Amid the ensuing market turmoil, the Reserve Bank of India announced measures that virtually banned crypto transactions. Cryptocurrency exchanges responded with a lawsuit that is due to resume hearings in the Supreme Court in September.
Investigators across Gujarat and in the Indian capital of New Delhi say complaints about crypto frauds began pouring in after the U.S. cease-and-desist letters.
Still, those who had been trying to hide untaxed cash were in a quandary. If they went to the authorities, they would have to declare their investments.
So Bhatt and nine accomplices -- including Paladiya -- kidnapped two BitConnect representatives in Surat and demanded 2,256 bitcoin as ransom, CID investigators alleged. Paladiya, however, wanted more. He contacted his influential uncle, Kotadiya, and tapped the latter’s network in the local police to double-cross Bhatt and allegedly extort his bitcoin, according to allegations in police documents and interviews with investigators.
They were confident of success, gambling that Bhatt wouldn’t go to the authorities and certain that the anonymity of bitcoin would make the heist untraceable, according to the investigators.
They were wrong. Bhatt pressed charges.
Bhatt himself has gone “underground” -- Indian parlance for hiding to avoid arrest -- because his appeal for bail was rejected, said his lawyer Rupesh Rupareliya. In a July 26 telephone interview, Rupareliya said Bhatt denies any wrongdoing and says that Paladiya handled all the bitcoin transfers as Bhatt wasn’t tech savvy.
Paladiya’s lawyer Yogesh Ravani denied any wrongdoing by his client and said Paladiya was a victim of the kidnappers.
On July 5, the opposition Congress Party held a press conference demanding the ruling BJPinvestigate the matter in Gujarat.
Kotadiya is no longer with the BJP and since the Gujarat government initiated the investigation, it shows the government is dealing with the matter, said GVL Narasimha Rao, a New Delhi-based BJP spokesman. He asked Bloomberg News to speak to the state administration about Kotadiya’s threat to reveal more political involvement. Jitendrabhai Vaghani, BJP president for Gujarat, answered a call but disconnected when told the question was about the cryptocurrency fraud. He didn’t answer subsequent calls.
The BJP had its worst showing in more than two decades when state elections were held in Gujarat last December. Shailesh Kumar, Asia director with political risk advisory Eurasia Group, said the alleged scam follows a string of high-profile frauds.
“If more names of politicians do come out, there could be a price to pay,” he said. “The government will have to find the absconders and bring them back.”
Source: https://www.economictimes.com/markets/stocks/news/cryptokidnapping-or-how-to-lose-3-billion-of-bitcoin-in-india/articleshow/65347828.cms
submitted by lorrissimon to CryptoCurrency [link] [comments]

Legality of cryptocurrencies

Regulations or positions of some countries about cryptoworld Because governments can sometimes be a bit touchy about attempts to create alternatives to the legal tender they enjoy a monopoly on printing, a wise investor might wonder about the legal status of cryptocurrencies. Indeed, the disruptive potential of these technologies has made governments around the world nervous, as they have struggled to devise appropriate regulations for the cryptocurrency realm without stifling innovation. Most potential investors have nothing to worry about from a legal standpoint, but it pays to do one’s homework.
Regulations or positions of some countries about cryptoworld Some countries have banned or ruled unconstitutional the use of cryptocurrencies within their borders, while others have embraced them or even announced plans to issue their own. Of course, due to the inherently decentralized nature of cryptocurrencies, enforcement has proven difficult. Taxes levied on profits made trading cryptocurrencies vary based on their legal classification. Check the laws in your country, and make sure you abide by them when investing. Questions of legality in major markets have caused temporary dips in cryptocurrency prices over the years, but they have always recovered. Keep reading for a brief history of legal rulings and government announcements related to bitcoin that have helped shape the current ecosystem.
February 2012
Payments services firms Paxum and Tradehill temporarily cease bitcoin exchange activities due to legal concerns raised by Canadian regulators.
28 March 2013
Cypriot investors drive up bitcoin prices seeking a refuge for savings when a government bailout program threatens to tap bank deposits.
14 May 2013
The United States Department of Homeland Security seizes almost $3 million from a subsidiary of the Mt. Gox exchange, claiming that the business is illegally engaged in money transmission without a license.
30 August 2013
Tradehill stops exchanging bitcoin, again due to regulatory uncertainty, indicating a growing need for government clarification on the legal status of cryptocurrency.
October 2013
The U.S. Federal Bureau of Investigation arrests operator of Silk Road dark web marketplace Ross Ulbricht, alias “Dread Pirate Roberts,” charges him with computer hacking, money laundering, drug trafficking and attempted murder, shuts down the site and seizes over 170,000 bitcoins. In the wake of the shutdown, numerous other illicit marketplaces emerge, but are prone to exit scams in which operators abscond with bitcoins held in escrow.
18 November 2013
U.S. Senate holds hearing titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies.” Members express reservations about the potential illicit applications of cryptocurrencies so vividly illustrated by Silk Road, frustration at the difficulty of regulating something so difficult to understand, but ultimately hope that government will be able to create a system in which decent people have a “chance to try and play by the rules.”
22 November 2013
China’s central bank issues an equivocal statement on bitcoin that nonetheless greenlights Chinese participation in cryptocurrency exchange and investment, prompting huge price gains over subsequent weeks.
05 December 2013
Backpedaling somewhat in response to the widespread use of bitcoin to circumvent limits on capital outflows, China bans banks and other financial institutions from dealing with or offering services relating to bitcoin, ruling that it is not a currency.
25 March 2014
The U.S. Internal Revenue Service issues its first guidelines for bitcoin, ruling that it is to be taxed as property, not treated as currency.
10 April 2014
Under government pressure, Chinese banks begin to shut down accounts belonging to bitcoin exchanges. Prices drop 10%, but many exchanges exploit loopholes and offshore parts of their businesses to continue operating.
July 2014
The state of New York announces plans to develop licensing requirements for businesses dealing in bitcoin or related services, which proves extremely unpopular with cryptocurrency advocates.
06 November 2014
Trendon Shavers, alias “pirateat40,” arrested for defrauding bitcoin investors in Ponzi scheme in 2012.
19 December 2014
Bitcoin entrepreneur and proponent Charlie Shrem sentenced to two years in prison for illegal money transmission charges related to the Silk Road marketplace.
25 January 2015
Coinbase navigates regulatory frameworks to win approval to operate a fully-fledged bitcoin exchange in 25 U.S. states and sets sights on further expansion.
25 March 2015
Hong Kong officials warn against potential fraud on exchanges, but indicate they will take a light hand regulating cryptocurrencies, classifying them not as legal tender but as “virtual commodities.”
29 May 2015
Ross Ulbricht receives sentence: life in prison without parole. Judge Katherine Forrest explicitly seeks to make an example of him and thereby discourage others from using cryptocurrency and the relative anonymity of the Internet to flout the law.
01 August 2015
Mark Karpeles, former Mt. Gox CEO, arrested in Japan and charged with falsification of records relating to the solvency of the exchange during its collapse.
10 August 2015
Deadline hits for compliance with New York regulators’ “BitLicense” rules, leading many exchanges to stop serving customers in the State.
22 October 2015
Crypto advocates hail a European court ruling that VAT does not apply to bitcoin and other cryptocurrency transactions, thereby classifying them as currency, not property.
10 November 2016
The state of North Carolina creates legislation to address bitcoin and money transmission, which regards businesses dealing in virtual currencies as subject to the same set of rules and licensing requirements that govern transmission
10 March 2017
The U.S. Securities and Exchange Commission denies Cameron and Tyler Winklevoss authorization to create a bitcoin-based ETF, citing inadequate regulation of cryptocurrency exchanges.
28 March 2017
The SEC denies the Winklevoss brothers’ second request for authorization of a bitcoin ETF, again citing concerns about the lack of regulation and potential for fraud on the exchanges.
01 April 2017
Japan recognizes bitcoin and other cryptocurrencies as legal tender and lays the groundwork for supportive regulations intended to permit legitimate investment while discouraging money laundering and terrorist financing.
04 September 2017
China prohibits fundraising via initial coin offerings, which it considers illegal.
07 September 2017
The European Central Bank rules out the possibility of Estonia launching its own national cryptocurrency, reaffirms the privileged status of the Euro as legal tender, and cites concerns that national cryptocurrencies would undermine financial regulations.
06 December 2017
Softening its initial stance, Russian regulators indicate that new rules may allow the purchase of cryptocurrencies, but forbid or heavily restrict mining activities.
07 December 2017
Regulators in South Korea ban trading in bitcoin futures as well as initial coin offerings(ICO), but will permit cryptocurrency exchanges to continue operations.
submitted by Which_Blockchain to u/Which_Blockchain [link] [comments]

Bitcoin Trading Intelligence [09.01.15]

Hope all is well guys. Our third Intelligence report is out. Again, thank you all very much for the feedback on our last Bitcoin Trading Intelligence newsletter. We hope we were able to address some of the issues from last time. Feedback and any other comments are welcome.
If you like this and want more, you can now reserve your spot in our Bitcoin Trading Intelligence platform. We haven't figured out pricing for the course yet. I would appreciate if you guys took a look at the Bitcoin Trading Intelligence platform and let me know what you think is a fair price for this. BTCVIX is our trader and with his real time alerts subscribers have a chance of making some serious money
Bitcoin in August
August has witnessed the rapid devaluation of Bitcoin, accelerated by fundamental data and augmented by technical glitches. The possible forking on the minds of the Bitcoin community, the repeated blows following the Mt Gox disaster and the effects of the BitLicense have cast a bearish shadow over the market which resulted in a month that managed to breach significant lows.
“After the stunning price action of the last couple weeks we have seen BTCUSD grind up the traders seeing patterns that aren’t there, complete chopfest. Rather than whittling away hard earned profits remember NO position IS a position — just need to know when them time is. Just like me, many other traders in the Whaleclub believe that sometimes not trading is a right decision and people should appreciate that.” BTCVIX, Professional Bitcoin Trader
Post the flash crash last week, the market has tested 200 and has been on a correction curve ever since. With many countries calling for increased regulation, let’s see how market emotions fared last week.
Nigeria’s central bank has called for Bitcoin regulation in order to stop money laundering and avoid international penalties. Dr. Okwu Nnanna the governor of the financial system at Nigeria’s Central Bank has cited that cryptocurrencies have no borders and hence are an easy channel for money laundering and thus there is a need to monitor them. AB 1236, a proposed California law to regulate virtual currencies has faced lot of opposition from industry lawyers.
It has now been amended saying companies that take ‘full custody’ of the currency are to be licensed and the bill is being backed by other major companies who are mostly made up of software developers. Another important country to look out for whose ecommerce demographic can play a pivotal role in the development of bitcoin system would be India.
With major companies like Microsoft and IBM backing bitcoin based startups, the Governor of RBI has made it clear that cryptocurrencies are being observed for now and would be regulated in the future.
The collapse of Mt Gox has racked up many controversies and the latest one, the arrest of Mark Karpeles, is over the issue of a fresh warrant for allegations that he has pocketed over $2.6 million from the company funds of Mt Gox. While Japan’s cryptocurrency scenario is restructuring for the best after the impact of Mt Gox, the Japanese Government has decided to regulate cryptocurrencies so as to avoid the risk of money laundering and terrorist funding.
How these coordinated regulations among different countries would affect/aid the growth and development of bitcoin is to be seen. While the ‘one-off’ depreciation of the Chinese Yuan has beaten the stock markets down in the USA and China, BTC China’s Greg Wolfson has remarked that the corresponding dip in prices in bitcoin is not devastating and in the times of uncertainty just like Gold, people are turning towards bitcoin as their safe haven.
The immediate correction after the dip is being seen as people hedge their positions in bitcoin.
Meanwhile on the Korean front, things are looking bright with a new exchange traded fund (ETF) tracking the value of bitcoin planned for launch on Korea Exchange next year.
This news coupled with Korean Bitcoin Exchange ‘Korbit’ announcing the launch of Bitwire, which allows people to send money using Bitcoin to any Korean bank account in less than two hours, the bitcoin ecosystem in Korea is trending towards a positive position.
On the European continent, the sentiment is consolidating with the launch of Mycelium Gear with Cashila’s API being integrated, this enables merchants to accept bitcoins that are automatically converted to Euros.
The financial crisis in Greece is here to stay for some time and bitcoin services providers like Cubit are trying to do what they can to help. Cubit in coordination with BTC-Greece is helping Greek citizens move their money out of the country to business partners and suppliers.
The aim is to try and work around the various capital controls that have been enforced in Greece in the hope that some private businesses can get back up and running once more. They have plans to install 1000 ATMS in order to make the this work. Even in the Black Sea Basin there are more than 13,600 locations where you can access bitcoin related stores, ATM and service providers.
On a corporate front, things have been picking up pace with Intel expressing its intention to unify the Internet of Things with bitcoin transactions. World Wide Web creator Tim-Berners-Lee leads the W3C to establish online payment standards, including Bitcoin, another sign of positive acceptance.
UBS’s Alex Batlin’s statements about Blockchain, saying that the technology will be an opportunity or threat to companies like UBS basing on how quick they act on it, has once again clarified that the technology is here to stay and is slowly gaining traction.
Patrick Byrne, the founder of Overstock.com, has acquired a broker-dealer firm built deep into the DNA of Wall Street. When the technology at the center of the acquisition is switched on, Byrne said, it will mark the first time the decentralized ledger behind bitcoin is plugged directly into Wall Street. This way it will be possible to bridge the gap between bitcoin technology and the blockchain.
With Coinbase reaching a valuation of $1 billion, it is listed as one of the top 50 tech startups in the USA. Fortifying their market share, they have launched services to purchase bitcoins through debit cards and credit cards and most recently launched in Canada.
While the service providing companies are doing well, the exchanges have taken a back step last week. The Bitfinex trade engine was blamed for the flash crash and many people experienced problems with exiting their positions during the crash, Australian Exchange, iGot, halted their trading activity and this has led to angst among its traders and customers.
So in conclusion, it is fair to say this past week of has seen lots turmoil in bitcoin trading with loads of negative factors contributing to the market sentiment bearish.
Long Term Technical Analysis
On a weekly scale, the market has tested its long term support level at 200 and retraced quickly to 227. The bearish arc of this swing was a strong move ranging over a month, driven by fundamental factors. The Bollinger bands in the weekly chart still remain parallel showing that the market is in bounds and judging by the regression lines, is setting up for a bull trend after consolidation.
On a long term scale, RSI is approaching oversold region while MACD just took a bearish turn crossing the signal line. Since the market is yet to consolidate, taking a long term position right as of now wouldn’t be feasible. Short term trades around 224 region with stop loss around the lows of previous week’s candle, targeting 5 SMA would be feasible. Long term trades can be planned on basis of consolidation. As soon as both Bollinger and 5 SMA become trending in the upward direction after significant consolidation, entering into trades with a long term plan would be profitable. Proper entry points for such trades would be around 220 region with stops below 217. With Market trending, possible exit points could be 266, 300 and 317.
If the market breaks out on the downside, breaking the support zone at 200, possible targets can be 157 and further drop in prices would seem likely.
Midterm Technical Analysis
In the daily chart, the support encountered around 217 region was breached and market has now found long term support at 200. With the Bollinger bands and SMA’s pointing downwards, the setup is going to remain bearish for some time until a base of consolidation is formed. The descending triangle as shown in the daily chart between the downward trend line and support line at 200 might possibly see good number of volumes being traded in the coming days. In which direction the break out would be or the setup would change will depend on how the market approaches the vertex of the triangle.
If the Bollinger bands and short term SMA’s don’t straighten out or change direction, the break out might as well be in the downward direction, continuing the set trend. The MACD is about to cross the signal line and turn bullish, RSI has crossed 30 from the downside indicating impending bullishness in the market but when the bull run takes off is to be seen.
In the medium term, it appears that it is going to be bearish/sideways for some time. Shorting opportunities at the trend line and retracement trades with 5 SMA as support hold good potential.
Short term Technical Analysis
On a short term scale, the market has retraced over 220 levels and is expected to trade in this range for some time before either consolidating and going for a reversal or crashing down further more.
We can observe that 100 SMA is offering good support and market has not been able to go beyond 34 SMA. Picking longs over 100 SMA with 34 SMA as target would be a good short term trade. With the Bollinger bands and SMA’s still pointing downwards and higher time frame charts supporting, shorting around 34 SMA would be a good option.
The possible targets for such trades would be 100 SMA and if the market gets further trendy, a crash down back to 200 levels can also be expected, although these trades have to be done with tight stop loss. The MACD and RSI don’t give much indication as the market is sideways in the short term and retracing.
Sentiment Analysis
This week saw a lot of action with countries announcing regulation moves and unveiling of technologies which ease bitcoin and blockchain adoption. While the sentiment was bearish majorly, let’s take a look at what happened in the market:
The Bank of England has announced that Bitcoin is ‘harder money’ than Gold because of Deflation. During a presentation on digital currencies, Andy Haldane, Chief Economist and the Executive Director of Monetary Analysis and Statistics of the Bank of England stated the above statement explaining that sustained adoption would see ongoing deflation.
An article from ibtimes has given a thorough analysis of how adopting blockchain technology to the existing banking system would be difficult and how Deutsche bank’s economist sees blockchain as a threat because of the lack of the IT infrastructure to support the technology involved. On educational front, Stanford has joined NYU and Duke University in offering bitcoin course, Princeton has launched its own bitcoin course on Coursera, strengthening the sentiment that cryptocurrencies are here to stay and further studies and research in these fields embedded into the course work is a strong possibility.
On the technological front, with e-coin launching Bitcoin Debit card affiliate program, which aims at bridging the gap between traditional financial services and bitcoin, it’s now possible to load bitcoins into debit cards and make payments for the transactions. With Coinbase also enabling purchase of bitcoin through debit-card/credit-card, we are now in a transformative phase where the traditional financial services are being used to develop and adopt systems that would be framework for the future bitcoin usage.
How the technology will evolve to accommodate or change the traditional banking system is to be seen.
Developments in Blockchain
On August 20th, Nasdaq revealed its plans with the underlying technology of Bitcoin and Blockchain. In an interview with efinancialnews Fredrik Voss, Vice President and head of Blockchain strategy at Nasdaq answered questions about how the program is progressing and what other applications Nasdaq is thinking of.
Nasdaq is planning to launch the private market initiative later this year and is clearly looking at commercial uses for the Blockchain now. The application of distributed ledgers in financial markets for things like settlement and custody, to create efficiency in back-office processes is the primary aim.
Another application of Blockchain this week would be the launch of John McAfee SwiftMail which is a new free peer-to-peer, proof-of-work, encrypted mail system that uses the technology underlying Bitcoin to replace email. The system is said to have very high encryption as privacy is one of the key aspects of SwiftMail.
Technocorner
On the techspace, what has been hogging all the limelight is the new chip for Antminer S7 by Bitmain that is believed to be more powerful than its predecessor. Bitmain, the bitcoin mining ASIC provider, announced on August 20th it is launching its fourth-generation ASIC, the BM1385. This chip is claimed to generate a 45 percent increase in hashrate while needing 50 percent less electricity than its former chip, the BM1384.
Another interesting development would be Netcoins which can supposedly turn any device (iPad, Android devices) into a bitcoin ATM. It is ideally designed for retailers to enable transactions in bitcoin and attract tech savvy customers.
News that’s also been doing rounds is about the Mike Tyson ATM. While initially the prospect was heralded to be a scam, the ATM was launched in Las Vegas with Bitcoin Direct backing the launch.
While security threats in Windows 10 has put the wallet developers in a tight situation, the iOS space is now crowded with launch of new wallets everyday making it hard for the users to choose from the many apps. Most people believe that the advanced bitcoin demographic belongs to iOS users and this is the primary reason for the competition while some say that the lack of a secure wallet in Android and security issues with Windows has led to this development.
For the same report with the Technical Graphs please see the original post: Bitcoin Trading Intelligence: September 1st, 2015
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Moscow Seeks Extradition From Greece Of Russian Cybercrime Suspect Wanted By U.S.

This is the best tl;dr I could make, original reduced by 50%. (I'm a bot)
Aleksandr Vinnik's lawyer, Xanthippe Moyssidou, told the Associated Press news agency that his client told the Greek authorities on September 19 that he would not contest Moscow's extradition request.
Vinnik is wanted in Russia on fraud charges totaling $11,000, AFP quoted a judicial official as saying on condition of anonymity.
U.S. officials alleged that Vinnik and BTC-e obtained funds from a Japan-based Bitcoin exchange that collapsed in 2014 after being hacked.
The Treasury Department has fined BTC-e $110 million for "Willfully violating" U.S. anti-money-laundering laws, and Vinnik $12 million.
Vinnik is the latest Russian citizen to be accused by the United States of cyber-related crimes, arrested in third countries, and then subjected to extradition proceedings.
Moscow has complained vociferously that U.S. officials were "Kidnapping" Russian citizens abroad. Greece's judiciary will now have to decide whether to extradite Vinnik to Moscow or Washington.
Summary Source | FAQ | Feedback | Top keywords: Vinnik#1 U.S.#2 BTC-e#3 official#4 request#5
Post found in /worldnews, /Bitcoin, /BitcoinAll and /willis7737_news.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
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"Silk Road, in whatever form, is the road to prison [...] We don’t get tired.” Operator of Silk Road 2.0 Website Charged in Manhattan Federal Court

Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Peter Edge, Executive Associate Director of Homeland Security Investigations (“HSI”), announced today the arrest of BLAKE BENTHALL, a/k/a “Defcon,” in connection with his operation and ownership of the Silk Road 2.0 website, a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. BENTHALL was arrested yesterday in San Francisco, California. He will be presented later today in federal court in San Francisco before Magistrate Judge Jaqueline Scott Corley.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Blake Benthall attempted to resurrect Silk Road, a secret website that law enforcement seized last year, by running Silk Road 2.0, a nearly identical criminal enterprise. Let’s be clear—this Silk Road, in whatever form, is the road to prison. Those looking to follow in the footsteps of alleged cybercriminals should understand that we will return as many times as necessary to shut down noxious online criminal bazaars. We don’t get tired.”
FBI Assistant Director-in-Charge George Venizelos said: “It’s been more than a year since the FBI made an arrest of the administrator of the black-market bazaar, Silk Road, and here we stand again, announcing the arrest of the creator and operator of Silk Road 2.0. Following a very close business model to the first, as alleged, Blake Benthall ran a website on the Tor network facilitating supposedly anonymous deals of drugs and illegal services generating millions of dollars in monthly sales. Benthall should have known that those who hide behind the keyboard will ultimately be found. The FBI worked with law enforcement partners here and abroad on this case and will continue to investigate and bring to prosecution those who seek to run similar black markets online.”
HSI Executive Associate Director Peter Edge said: “Blake Benthall’s arrest ends his status as the alleged administrator of a website that allows illicit black-market activities to evolve and expand, and provides a safe haven for illegal vices. HSI will continue to work in partnership with its federal and international law enforcement partners around the world to hold criminals who use anonymous Internet software for illegal activities who seek to hide behind the anonymity of the Internet to carry out illegal activities accountable for their actions.”
According to the Complaint unsealed today in Manhattan federal court:
Since about December 2013, BENTHALL, a/k/a “Defcon,” has secretly owned and operated an underground website known as “Silk Road 2.0”—one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet today. The website has operated on the “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the network’s users. Since its launch in November 2013, Silk Road 2.0 has been used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions. As of September 2014, Silk Road 2.0 was generating sales of at least approximately $8 million per month and had approximately 150,000 active users.
Silk Road 2.0 was created in the wake of the Government’s October 2013 seizure of the website known as “Silk Road” and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.” The original Silk Road website had been designed to enable people anywhere in the world to buy and sell illegal drugs and other illegal goods and services anonymously and beyond the reach of law enforcement. Before its seizure in October 2013, Silk Road was used extensively to facilitate such transactions.
In November 2013, approximately five weeks after the Government shut down Silk Road and arrested Ulbricht, Silk Road 2.0 was launched. Designed to fill the void left by the Government’s seizure of Silk Road, Silk Road 2.0 was virtually identical to the original Silk Road website in the way it appeared and functioned. In particular, like its predecessor, Silk Road 2.0 operated exclusively on the “Tor” network and required all transactions to be paid for in Bitcoins in order to preserve its users’ anonymity and evade detection by law enforcement. Likewise, the offerings on Silk Road 2.0 consisted overwhelmingly of illegal drugs, which were openly advertised as such on the site. As of October 17, 2014, Silk Road 2.0 had over 13,000 listings for controlled substances, including, among others, 1,783 listings for “Psychedelics,” 1,697 listings for “Ecstasy,” 1,707 listings for “Cannabis,” and 379 listings for “Opioids.” Besides illegal narcotics, other illicit goods and services were openly advertised for sale on Silk Road 2.0 as well, including fraudulent identification documents and computer-hacking tools and services.
When Silk Road 2.0 was launched, it was controlled for a short time by a co-conspirator using the same online moniker as that allegedly used by Ross Ulbricht in operating the original Silk Road website—“Dread Pirate Roberts.” In late December 2013, however, BENTHALL, using the moniker “Defcon,” took over administration of the site and has owned and operated it continuously since that time. In that role, BENTHALL has controlled and overseen all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; the small staff of online administrators and forum moderators who have assisted with the day-to-day operation of the website; and the massive profits generated from the operation of the illegal business.
During the Government’s investigation, which was conducted jointly by the FBI and HSI, an HSI agent acting in an undercover capacity (the “HSI-UC”) successfully infiltrated the support staff involved in the administration of the Silk Road 2.0 website, and was given access to private, restricted areas of the site reserved for BENTHALL and his administrative staff. By doing so, the HSI-UC was able to interact directly with BENTHALL throughout his operation of the website.
BENTHALL, 26, of San Francisco, California, is charged with one count of conspiring to commit narcotics trafficking, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; one count of conspiring to commit computer hacking, which carries a maximum sentence of five years in prison; one count of conspiring to traffic in fraudulent identification documents, which carries a maximum sentence of 15 years in prison; and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding joint efforts of the FBI and its New York Cyber Branch and HSI and its Cyber Crimes Center and Chicago-O’Hare Field Office. He also thanked the Drug Enforcement Administration’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, HSI, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the Department of Justice’s Computer Crime and Intellectual Property Section for its assistance and support, the Department of Justice’s Criminal Division Office of International Affairs, and the law enforcement authorities of France, Germany, Lithuania, the Netherlands, and the United Kingdom. Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Timothy Howard, and Daniel Noble are in charge of the prosecution. Assistant United States Attorney Margaret Graham is in charge of the forfeiture aspect of the case. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
http://www.fbi.gov/newyork/press-releases/2014/operator-of-silk-road-2.0-website-charged-in-manhattan-federal-court
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Bitcoin Exchange CEO Arrested For Money Laundering KCN A suspect in a billion bitcoin fraud is arrested How To Launder Bitcoin  Silicon Real Woman Arrested For Laundering Money To ISIS Through Bitcoin Bitcoin: FBI Arrest Founders of Coin.MX

Russian rapper arrested for crypto money laundering. Seemingly a resident of Los Angeles, California, Boiko entered the United States on January 19 with 20,000 dollars. As per the FBI affidavit, Boiko told airport security that the money came from investments in Bitcoin and other rental properties in Russia. The authorities did not trust his ... The person in question, Rossen Iossifov, is the 53-year-old Bulgarian owner of cryptocurrency exchange ‘RG Coins.’ Per court documents, Iossifov has been convicted of one count of conspiracy to commit racketeering and one count of conspiracy to commit money laundering for his part in an international auction fraud scheme.. An Elaborate Fraud ... Cryptocurrency derivatives trading platform Bitmex has been charged with illegally operating in the U.S. Concurrently, its executives, including CEO Arthur Hayes, have been charged with violations ... Fuentes’ arrest stems from lawsuits filed by Arbistar clients who allege pyramid fraud after the bitcoin trading company abruptly froze accounts leaving 32,000 families affected. Bitcoinsnoop – Bitcoin & Altcoins, Crypto News. Home; Coin. All Altcoin Bitcoin Ethereum Litecoin. DeFi season could be over as Bitcoin and Ether pack bags for the moon. Ethereum’s Ongoing Breakout Suggests a Move to $500 Is Possible. CME becomes 2nd biggest Bitcoin futures market. Bitcoin Creates Strong Tailwind as Traders Rotate Capital into Altcoins . Blockchain ...

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Bitcoin Exchange CEO Arrested For Money Laundering

Feds: Woman laundered money to people in China, Pakistan and Turkey, then planned to travel to Syria. From: https://www.youtube.com/user/FoxNewsChannel December 15, 2017 - Feds: Woman laundered money to people in China, Pakistan and Turkey, then planned to tr... Launder Bitcoin with BitLaunder - it is fast, easy, secure and private. We anonymize your bitcoin to make it untraceable in the blockchain. Works faster and ... In recent news the FBI arrest founders of Coin.MX on charges of money laundering relating to ransomeware attacks. Article: https://bitcoinmagazine.com/21334/... Arrested Russian Bitcoin Programmer a Patsy for US Russia Witch-Hunt ... Money Laundering 101 💰 How Criminals Use Bitcoin To Hide Illegal Money 🔫💎🗡 - Duration: 16:33. David Hay 69,204 ...

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