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BitMEX Continues To Swim In Troubled Waters As Another Lawsuit Haunts The Exchange

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Lady luck was clearly miles away from the prominent cryptocurrency exchange BitMEX. While the exchange is still dealing with the allegations made by the regulators of the United States, another set of changes have come in the way of BitMEX. However, the latest lawsuit is from another country.

BitMEX Slapped With Another Lawsuit

While BitMEX is still recovering from the blow it endured in the first week of October, the exchange was slapped with another lawsuit. This time, it was a Russian citizen, Dmitry Dolgov. Once again, the founders of the platform, Arthur Hayes, Ben Delo, and Samuel Reed were in trouble as the Moscow resident alleged that they were part of racketeering activities.

Dolgov alleged that the trio along a few others had garnered billions of dollars through illicit activities. In a 188-page lawsuit, filed in the Northern District of California suggested that the exchange steered away from anti-money laundering as well as know your customer obligations. Dolgov in his lawsuit accused the exchange of garnering money from anybody and everybody without looking into their background.

The lawsuit read,

“[….]unlimited funds from anyone, without a single question asked. Understandably, because of total lack of controls of any kind, hackers, tax evaders, money launderers, smugglers, drug dealers all flocked to BitMEX flooding the platform with hot money.”

The lawsuit also alleged that the exchange was procuring benefits from engaging in money laundering as well as market manipulation. BitMEX reportedly did so by employing its internal trading desk as well as indirectly. Two exchange accounts were opened by every money launder, where one would be a helper account while the other would be a winner account on BitMEX. The lawsuit detailed,

“The money launderer (Defendants) would then enter into a large leveraged derivatives position on BitMEX and immediately execute market orders from the helper account with maximum slippage to move the index price in a favorable direction.”

Pavel I. Pogodin, the plaintiff’s attorney demanded a trial by jury for all the issues that were triable to a jury.

The previous charges from the CFTC as well as DOJ still remain intact. While Arthur Hayes was still being questioned, Samuel Reed found his way out of prison on bail.

Ukraine, Venezuela Way Ahead Of US In Terms Of Crypto Adoption

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The first cryptocurrency was dropped into the world in 2008. More than a decade later and thousands of cryptocurrencies have been launched so far, the industry has seen a significant increase in both value and popularity. From being associated with the dark web to being widely adopted across the globe, the crypto-verse has come a long way. The rate of adoption and the current value of cryptocurrencies stands as substantial proof. The latest report from Chainalysis further gives a peek into the countries behind the increased adoption rates.

US And UK Far Behind In The Crypto Game

While the world assumes financial leaders like the United States of America or the United Kingdom are open to innovation and encourage digitalization, Chainalysis’s latest report says otherwise. Even though authorities across the globe are realizing the importance of crypto, the adoption rate in several countries is still slow or stagnant. However, beating the US and China to the top, Ukraine, Russia, and Venezuela were the top players in terms of crypto adoption.

Research platform, Chainalysis shared a report titled “The 2020 Global Crypto Adoption Index: Cryptocurrency is a Global Phenomenon.” The report pointed out that Ukraine had the highest rate of adoption. The platform used four metrics to rank a total of 154 countries keeping in mind factors like population and the size of the economy of different countries. The sum of all the metrics further facilitated the ranking of the countries.

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The above table clearly indicates that developing nations were keener on incorporating crypto into their lives. Venezuela has been in the news following its severe economic conditions. The report revealed that the citizens of Venezuela were using crypto more than the country’s native fiat itself. Since Venezuela’s native currency, the Bolivar has been losing its value following inflation. The report further read,

“We also see this pattern in other Latin American countries, as well as Africa, East Asia, and elsewhere. Our data and interviews also suggest that some residents in many developing countries use cryptocurrency to carry out commercial transactions.”

Furthermore, the countries with the lowest rate of crypto adoption included Afghanistan, Algeria, Cape Verde, Chad, Fiji, Laos, Libya, Mongolia, Tajikistan, Turkmenistan, West Bank and Gaza, and Zimbabwe. This list, however, includes countries that are currently under oppression and have limited sources. The web activity in each of these countries was lower than that of the other countries that are ranked higher.

Bololex Ups Ante as BOLO Token and Airdrop Wheel Continue to Make Waves in Cryptocurrency Market

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The cryptocurrency industry has come a long way from the days of light trading with the ecosystem brimming with investors and opportunities. In the midst of this constant flux of developments, cryptocurrency organizations have been trying to keep things interesting by providing new features and improvements.

One of the companies enjoying their time in the limelight is Bololex, a popular cryptocurrency trading platform. Bololex operates under the tagline of “Instant and unlimited trading for everyone” with its officials striving to engage the market alongside the latest offerings.

Bololex was launched in May 2020 with the aim of providing a safe and seamless cryptocurrency trading environment. The Russia based exchange has targeted users across the globe but a large concentration of its base resides in the United States and Brazil. Bololex prides itself on the intense security procedures it follows, an aspect that has become increasingly important in the digital asset world. 

Users on Bololex may opt for non – mandatory KYC submissions and carryout their trading requirements. According to the company, non-mandatory KYC submissions make it easy for users to conduct instant transactions. Customers can be assured that their capital is safe and sound, as Bololex follows two-factor authentication protocols and reduces the risk of attack. Bololex is also known for its airdrops, which it conducts in interesting formats.

In August, users on the platform were in for a pleasant surprise when it announced the launch of the Bololex Airdrop Wheel. The feature has its eyes set on gamifying a common feature so that the company can attract new users to its fold. The airdrop wheel works in a very simple way: a registered user spins the wheel on the screen and whatever gift lies on the fallen sector of the wheel goes to the user. Its popularity was complemented by Bololex’s co-founder who said:

“Airdrop wheel is a unique feature,it redefines the concept of free airdrops. It is both fun and engaging experience.”

Bololex’s surge in popularity can also be owed to the BOLO token, which has been making waves in the cryptocurrency industry. The BOLO token is based on the Stellar Lumens blockchain with a total supply of 10 billion tokens. With a focus on the gamified voting system, the BOLO token serves as a utility token on the Bolonex exchange and ecosystem. Reports also suggest that the BOLO token will also play an important role in a proposed Bololex loyalty program. Sources close to the company have said that the token launch as well as the airdrops will act as important stepping stones towards large scale adoption. 

Proposed Pan-Europe Crypto and Digital Finance Regulation Framework to Boost Crypto Assets Growth

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According to a recent report by the financial news agency IFC Review, the European Commission, the law-making arm of the European Union, is concluding the first-ever crypto and digital finance regulatory structure proposed by Europe. The pan-European structure is intended to strengthen the development of crypto assets in the long run.

If the regulation is successfully passed into law and implemented, its acceptance would give the best possible legal atmosphere for crypto-related entities to thrive and contribute to the European economy.

Bitcoin and stablecoins recognized as financial instruments

Back in 2019, the Commission spent most of the year deliberating with industry experts and specifying crypto terms. Consultations included the acknowledgement of digital assets such as Bitcoin and stablecoins as financing tools and the development of a regulatory structure for blockchain-based entities.

According to the chairman of the European Blocktech Federation, the recognition of cryptocurrency assets as financial tools established them among the broad group of European and national legitimate tools that oversees Europe’s financial market. Moreover, he termed the upcoming crypto and digital finance laws as ‘historic,’ in regards to the immense potential it creates for businesses and individuals to develop digital finance solutions.

The proposal also elaborated a project to develop a single market for digital currencies, to facilitate cryptocurrency trading across all European nations. By comparison, the plan is the same as the launch of the Euro back in 1999, a single currency that united all members of the European Union back then.

Crypto and digital finance regulatory structure will boost European growth

The new crypto and digital finance regulations follow European Commission’s vice president Valdis Dombrovskis sentiment back in June; regulatory uncertainty surrounding digital assets hinder growth and development in the Eurozone. According to the report, the proposed crypto laws are likely to be enacted in Q3 2020. However, the report notes that interruptions can be expected due to the novel coronavirus disaster. 

Two Bulgarian Bitcoin Miners Charged For Siphoning $1.5 Million Worth Of Electricity In Illegal Bitcoin Mining Operations

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Two Bulgarian nationals were charged for siphoning electricity worth $ 1.5 million which was used in illegal Bitcoin mining operations. Sofia ‘s two suspects aged 31 and 38 are said to have based their operations in Kyustendil, a small town. They had been caught illegally channeling power to their crypto-mining farms. Authorities suspect the two siphoned power has been coming to light for a span of 3 to 6 months before their illegal activities.

The authorities also found mining equipment believed to have been on the scene for more than a year. The Bitcoin miners were arrested for and detained  24 hour  and were released later awaiting trial. CEZ Deputy Director Phillip Yordanov referred to the incident as the biggest theft of power ever discovered by the firm in recent times.

It is worth noting that the quantity of power siphoned is more than capable of powering the neighboring town for even a month.

Illegal Bitcoin mining operations on the rise as more miners target tokens

Of late reports have emerged from different parts of the world involving incidences of miners siphoning power for their mining activities. In particular, one of the biggest power siphoning incidents occurred in China. Chinese authorities arrested 22 suspects allegedly involved in operating a Bitcoin mining farm and siphoning power estimated worth $3 million. Also, 4000 mining rigs were confiscated in 9 different workshops.

Russia too, has faced occurrences of illegal power siphoning activities. In June, the Russian authorities arrested a 30-year-old middle-aged man in connection with siphoning power worth $150 000. The suspected allegedly siphoned power from the state powered national grid. Also, the country reported another incident where ten individuals were arrested in connection with siphoning power worth $200 000 every month that they were operational.

More crypto miners after profits made from tokens

In conclusion, the lure of handsome profits made from tokens is inventively pushing more illegal miners into the game. The profits generated from illegal Bitcoin mining activities motivate miners to set up mining farms for this sole purpose.

 

Three PlexCoin ICO Scammers Face Allegations Over $8Million Fraud

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According to recent reports, three Canadians face charges of allegedly swindling investors of $8 million for the 2017 PlexCoin ICO scam.

Conspiracy to Commit Wire Fraud and Securities Fraud

The three individuals, Dominic Lacroix, Sabrina Paradis-Royer and Yan Oullet, face five counts, including money laundering conspiracy and wire fraud conspiracy; securities fraud and wire fraud charges.

Investigators believe that the scammers have taken part in the transfer of millions of investment funds swindled from them through the Initial Coin Offering (ICO) dubbed PlexCoin.

According to the legal team behind the investigation and the case, the three individuals used the funds; for their daily living expenses and the renovation of their homes. In addition, the indictment continues to argue that the three have misinterpreted PlexCoin to investors through a number of websites and social media campaigns.

Misrepresentation of  PlexCoin Management

Oullet, Paradis-Royer and Lacroix made false presentations on behalf of the management of PlexCoin and stated that the management of the company consisted of a team of professionals based in Singapore. The three promised investors a return of 1,354 percent within 30 days of investing their money in the ICO. The ICO raised $8,269,218 for the alleged PlexCoin firm.

This is the most recent ICO fraud charge. Meanwhile, the United States Securities and Exchanges Commission has frozen Paradis-Royer and PlexCorps with an emergency asset freeze back in 2017. This was part of a legal indictment that accused the firm of going against security legislation. The Exchange Commission renewed the freeze in 2018 and described Dominic Lacroix as a “recidivist Quebec securities violator”

Meanwhile, the Chainanalysis report indicates that scammers and thieves hold approximately 300,000 bitcoins. The report went on to state that cryptocurrency exchanges were the final destination for illegal crypto.

Venezuela Outlaws Crypto Mining Activities in the Country

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Venezuela has recently banned the trade in crypto mining in the country. The ban is mainly aimed at citizens who reside in all government-owned houses and in all their surrounding vicinity. In a maiden announcement on Friday, Minister of Habitat and Housing, Iidemaro Villarroel, said that the continued use of crypto mining could have an impact on the distribution of electricity in the country.

Besides, the Minister said Crypto ‘s ban on mining was part of the Great Home Project. In his speech, the Minister revealed that crypto mining and other instruments involved in its operations consumed a lot of power. This, in turn, violated the government’s already formulated electricity distribution policy. He added,” In this coordinated work, we have detected the harmful effects of these elements of high electrical demand in the public houses of the Grand Mision Vivienda project.”

Venezuela’s Great home project plans

The Great Home Projects (Gran Misión Vivienda) involve the government’s plans to provide grant housing to local Venezuelan citizens with low incomes. The government is targeting the poor and providing them with adequate housing despite the harsh economic environment that the county is currently facing. And the government has also managed to deliver around 3 million homes to the citizens in their efforts towards the project.

Around 151 houses were also distributed to different families in the nation’s capital of Caracas; back last year. It is precisely these government-owned houses and their surroundings that have notified the ban. They insist that all crypto mining trades in these households are considered illegal and a crime punishable by law.

Crypto mining effects on the country’s electricity supply system

The Venezuela government has attributed the Crypto mining trade to directly affecting the power grid. They insist the mining process tends to consume a lot of power, thus affecting the distribution of electricity throughout the country. Back in 2019, there were reports of the national electrical shutdown after the Guri hydroelectric dam failed; further proving a significant problem that needs to be addressed.

Perkshield Blockchain Security Analytics Reveals $1.4B of Laundered Money was Moved Across Crypto Exchanges

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The security incident on Twitter on Wednesday left a lot of people wary of crypto and bitcoin in particular. While the social media company has investigated and fixed security loopholes, its share price on the stock market has decreased significantly by almost 4 percent. 2020 as in the past years, cryptocurrency hacks are not without blame. After the incident, the hacker walked away with nearly $116,000 laundered money.

However, these hacks also fuel a movement dubbed “Ban Bitcoin;” arguing that the absence of bitcoin would lay the foundation of a scam-free World. Mainly because some critics believe that bitcoin is the most loved incentive for scams. The fact that the bitcoin blockchain is encrypted and transactions seem to be untraceable, bitcoin haters have turned to claim that the coin allows criminals to supposedly hide their trail. On the other hand, several bitcoin fanatics have come out to dismiss the hack as a colluded event to outlaw bitcoin. 

“Why?”They are asking, 

Could cybercriminals bypass Twitter’s two-factor authentication just like that and hack into high-profile individuals. Some allegedly questioned why hackers did not take over President Trump ‘s active twitter account.

It’s impossible, however, to ban bitcoin. The Federal Bureau of Investigation is leading the Twitter probe. Which, by far, seems to be one of the worst social media attacks in history.   Crypto analysts believe that leading exchanges, such as Binance and Okex, have the opportunity to track the recipient of the $116,000 sent by approximately 300 people in the four-hour record hack.

$1.4 Billion of Laundered Money in the Hands of Crypto

It’s a Peckshield Security Company report that has revealed exchanges are the recipient of at least $1.4 billion of the world’s laundered money this year.

The report highlighted data collected from online and offline sources over the past year. Following a thorough verification and analysis of the data, the company identified at least 100 million transaction addresses. Approximately 50 million major crypto addresses were identified at exchanges. The company then ranked the exchanges according to the amount of stolen cash they contained and found the top ten included: Coinbase, Bithum, HaoBTC, Luno, Bitmex, Gate.io, ZB, Okex, Binance and Huobi.

Peckshield suspected crypto wallets containing illicit money related to the dark web economy gambling and hacker attacks. A large segment of which included funds stolen during major crypto and exchange hacks.

A New Legislation to Regulate Digital Currency Payment Suggested by G20

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A new digital currency payment bill proposed by the G20 is set to propel the adoption of cryptocurrencies to levels never seen before. The G20 countries announced on 11 July that they might introduce a regulatory framework to payment of digital currencies and allow “digital currency” instead of just cash payment methods.

The Group of Twenty or G20  is an international forum for governments and central bank governors from 19 countries and the European Union. Members of the G20 are Argentina, Australia , Brazil , Canada, China , Germany, India , Indonesia, Italy , Japan, Mexico , Russia, Saudi Arabia, South Africa, Turkey, United Kingdom , United States of America and the European Union.

G20 ‘s attention to cryptocurrencies is a big deal for the entire industry. The successful approval of the proposed new bill is lucid: it will stimulate the mass adoption of digital currencies. This massive adoption is due to the fact that G20 nations account for 90 % of the world’s gross revenues.

In addition, more than 80% of all trade activities worldwide take place in these countries. And also the G20 countries account for more than 50% of the world’s total land area and two-thirds of the world’s total population.

G20 to enact FATF digital currency payments guidelines

The Financial Action Task Force ( FATF) is a body founded in 1989 to battle money laundering. The Authority held its annual Private Sector Consultative Forum in Austria this month, and digital currency payments were among the topics discussed.

The FATF reiterated that the guidelines and recommendations for implementing digital currency payments are still in place. Subsequently, the authority advanced to show its support for virtual assets, stating that crypto assets could have a significant impact on the world economy.

The G20 nations have also accepted  to support the guidelines recommended by the FATF by enforcing them. In particular, Russia, one of the G20 nations, has agreed to establish a regulatory structure for crypto assets in the country. The enactment of a clear structure in line with the FATF Directives was planned for July last year, but Russia is set to implement it this month.

Bottom line

In addition, another G20 member in Japan is actively working to establish a policing guideline for crypto assets in the country. South Korea is also reportedly prioritizing a clear regulatory structure and is working towards the realization of a consistent structure. On the other hand, South Africa and China could potentially see a change in cryptocurrency policing in their respective countries this year.

Common Cryptocurrency Myths You Shouldn’t Believe

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Blockchain and crypto are concepts that are difficult for many people to understand. Because of this, there are many misunderstandings when it comes to their use and what they are. Let us debunk some of the most common cryptocurrency myths.

Common Crypto Myths

They Don’t Have Any Value

The first cryptocurrency myth is that cryptocurrencies are not physical objects, existing only on computers as lines of code. But that does not mean they have no value. There are plenty of services that accept Bitcoin and other coins.

The price of crypto is a different matter, as it is hard to establish a fixed value. Their prices are more volatile than that of traditional fiat currencies.

But as cryptocurrency users believe in their inherent value, this system will continue to exist.

Bitcoin and Blockchain Are the Same

Blockchain is the base on which all cryptocurrencies rely to function and it is distributed ledger that uses cryptography to record the ownership of an asset such as Bitcoin. Blockchain is basically the platform on which the cryptos are created.

While most cryptos work on a blockchain, the technology can be used for various other purposes, such as hosting dapps or smart contracts. There are also many different types of blockchains and coins, but the two terms are not interchangeable.

They Are Illegal Digital Money

In certain countries, such as Bolivia, Russia, Algeria, Ecuador, and Trinidad, the use of cryptos is illegal, but EU nations, G7 nations, and the USA have all recognized crypto as legal tender.

Cryptocurrencies Are All the Same

There are thousands of cryptos in the crypto space, and while some have the same role, there are plenty of differences between them. For example, Bitcoin was designed to serve the purpose of currency and be used as payment. Ripple was created to facilitate remittance transfers at a higher speed. BAT was launched to enable online advertising. Monero uses a number of privacy implementations to provide anonymity. There are many other coins that have different features and were designed to serve distinct roles either within or outside their blockchain.

They Are Not Secure

The structure of a blockchain prevents any entity from modifying the information in the blocks that have already been added to the chain. Any attempt of alteration would be detected by the network, which makes it harder to compromise.

They Are Only Used in Illegal Purposes

While there have been and still are many criminal cases in which cryptocurrency has been used to bypass authorities, more and more exchanges are using mandatory KYC (Know Your Customer) procedures when trading to decrease the possibility of illicit crypto use.

They Are Not Accepted as Payment

Since the first Bitcoins were made in 2009, cryptocurrencies have come a long way. More and more big companies, such as Microsoft, Dell, Newegg, and Expedia, have already integrated Bitcoin payments for their services. And not only that but other platforms are broadening their list of available cryptos.

A platform that accepts a wide variety of cryptos is the online crypto sportsbook and casino 1xBit. Here crypto owners can start gambling or betting by using any one of the over 20 different digital assets supported by this online casino.

The registration process is fully anonymous, as the crypto casino does not ask for any personal data, not even an email address. An account number and password are generated for you by the online sportsbook with just the click of a button, and that is it. You will then be able to fund your multi-currency account with any crypto you want. Payouts are fast, and there are no transaction fees to worry about.

What’s more, new users are eligible to claim a welcome bonus of up to 7 Bitcoin, which can be collected through 4 initial deposits where the bonus reward is between 1 and 3 BTC.

VIP members can benefit from a cashback reward that can be as high as 11% of any bets made, regardless if they win or not. The percentage of the cashback depends on how high your status is on the crypto casino.

Crypto owners can easily use their digital funds to bet and gamble anonymously on 1xBit, where plenty of bonuses and promotions are waiting for them.