Take Archives -
In today’s edition of The Daily, we look at the cryptocurrency entrepreneurs who now rank among the richest people in China, the limited return to operations of 1Broker, and a rather amusing attempt to explain Bitcoin to older folks by the AARP.
China’s Wealthiest Whales
The Hurun China Rich List 2018, the Chinese answer to the Forbes 400, was released on Wednesday and for the first time includes a total of 14 people working in the cryptocurrency space. This is the 20th annual ranking of the richest individuals in China, with a wealth cut-off of 2 billion yuan ($ 290 million). A total of 1,893 individuals made the list this year.
Two Bitmain executives — Zhan Ketuan (95th place with 29.5 billion yuan), age 39, and Jihan Wu (204th place with 16.5 billion yuan), age 32 — led the way. The third Chinese crypto whale, 41-year-old Binance founder Zhao Changpeng, took 230th place on the list at roughly 15 billion yuan. The report also noted that the blockchain industry is now officially the fastest-growing source of billionaires in China.
Other well-known crypto personalities on the list include Okex’s founder Star Xu, with 10 billion yuan, who took 354th place, as well as Leon Li of Huobi, who was ranked 556th, with 7 billion yuan.
1Broker to Start Processing
Withdrawal Requests Today
Marshall Islands-registered contracts-for-difference broker 1pool Ltd., which operates the 1Broker brand, has announced that the company will revive some if its functions today. The team tweeted that they will start processing clients’ withdrawal requests at 12:00 (UTC).
Three U.S. agencies took action against the international, bitcoin-funded securities dealer last month, including seizing its website domain for a period. The U.S. authorities alleged at the time that an undercover special agent with the Federal Bureau of Investigation “successfully purchased several security-based swaps on 1Broker’s platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws.”
‘A Bunch of Computer Code’
It can be very difficult to explain the invention of cryptocurrency in a sentence or two, given that it’s a topic involving cryptography, computer science and economics. This is particularly true if one is trying to reach an audience that might be frightened or put off by new technologies and unfamiliar terms.
The AARP (formerly the American Association of Retired Persons) published a glossary of “Wall Street buzzwords” this week to help senior citizens improve their financial literacy and cut away the confusion when talking with high-finance big shots. But the list took a somewhat funny swipe at Bitcoin, while echoing some particularly tired tropes.
The glossary defines Bitcoin as “a bunch of computer code that a bunch of criminals, idealists and speculators agree is worth ‘real’ money. Sadly, its real-money value swings widely, making it impractical except for criminals, idealists and speculators.”
The AARP also defines Blockchain as: “1. A different bunch of computer code containing an unalterable record of a series of transactions. The most famous is a digital ledger recording all bitcoin transfers. 2. A word often uttered by companies hoping to snare investors’ attention — and dollars.”
The rest of the terms were also written in a comical way. For example, one entry defines an ETF as “marry a mutual fund to a stock and this is their baby.”
What do you think about today’s news tidbits? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.
The post The Daily: Whales Join China’s Richest Ranks, Seniors Take a Swing at Bitcoin appeared first on Bitcoin News.
U.S. stock indexes ended Tuesday nearly where they began, as interest rates let off the accelerator following their sharp rise last week. But the modest moves for indexes masked some roiling underneath.
Raw-material producers plunged on worries that inflation and weaker demand are eating into their…
Three U.S. agencies have taken action against international bitcoin-funded securities dealer 1pool Ltd., aka 1Broker. The Securities and Exchange Commission (SEC) says 1Broker violated federal securities laws. The Commodity Futures Trading Commission (CFTC) says it violated the Commodity Exchange Act. Meanwhile, the company says it is working on letting customers withdraw their funds.
The SEC announced Thursday that it has filed charges against Marshall Islands-registered 1pool Ltd., aka 1Broker, and its Austria-based CEO, Patrick Brunner, “for allegedly violating the federal securities laws in connection with security-based swaps funded with bitcoins.” The agency explained:
Investors could open accounts by simply providing an email address and a user name – no additional information was required – and could only fund their account using bitcoins.
The SEC alleges that an undercover special agent with the Federal Bureau of Investigation (FBI) “successfully purchased several security-based swaps on 1Broker’s platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws.” The commission further alleges that Brunner and 1Broker failed to transact these swaps “on a registered national exchange, and failed to properly register as a security-based swaps dealer.”
The SEC’s complaint “seeks permanent injunctions, disgorgement plus interest, and penalties.”
On the same day, the CFTC filed a civil enforcement action against 1pool Ltd. and Brunner, stating:
The CFTC’s complaint charges the defendants with engaging in unlawful retail commodity transactions, failing to register as a Futures Commission Merchant (FCM), and supervisory violations for failing to implement procedures to prevent money laundering as required under federal laws and regulations.
From at least February 2016, the defendants “offered or engaged in unlawful retail commodity transactions in the form of ‘contracts for difference’ (CFDs) that had as underlying assets commodities,” the CFTC alleges. However, these transactions are not conducted in accordance with the Commodity Exchange Act (CEA).
The agency detailed:
The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the CEA and CFTC regulations as charged.
Also on Thursday, the FBI seized the 1Broker.com domain. A notice on the agency’s website states three violations: money laundering, “willfully operating as an unregistered broker/dealer of securities,” and “willfully operating as an unregistered futures commission merchant.” An FBI seizure notice now appears on the 1Broker.com website.
Responding to the SEC’s announcement, 1Broker tweeted:
All funds are currently secure and we will fully cooperate with the authorities. If approved by the SEC, we will enable withdrawals for US customers as soon as possible.
The company clarified that the above statement “also applies to non-US customers.” 1Broker further tweeted, “All open positions were closed at the current market prices. Market price movements will not affect your trades from now on,” noting, “Our top priority now is to get the permission from the SEC to process customer withdrawal requests on an alternative domain.”
What do you think of the SEC, CFTC, and FBI taking action against 1Broker? Let us know in the comments section below.
Images courtesy of Shutterstock, SEC, CFTC, FBI.
Need to calculate your bitcoin holdings? Check our tools section.
The post SEC, CFTC, FBI Take Action Against Bitcoin-Funded Securities Dealer 1Broker appeared first on Bitcoin News.
Kim Kardashian & Kanye West hit the town in NYC on the eve of Kanye’s ‘SNL’ performance. Kim and Kanye were leaving the Electric Lady Studio Friday night, where Ye has been recording music. His new album drops Saturday, and he’s already conceded…
Maxine Waters is one of Trump’s fiercest critics. She’ll get a powerful, new platform if Democrats take the HouseSeptember 26, 2018 | dailybusinessnews
Rep. Maxine Waters has tried for months to get a House committee chairman to subpoena documents from Deutsche Bank about Russian money laundering and the finances of President Trump and his family.
If Democrats win the House majority in November, the 14-term Los Angeles lawmaker is almost certain…
Tax reform is enabling Ohio businesses to invest in workers, innovation, and future generations.
If you’re one of the millions of US adults taking aspirin daily as a preventative measure, two new studies have bubble-bursting news: Doing so may not do any good—and could actually cause harm. Researchers in both studies found that even low-dose aspirin carries a risk of internal gastric bleeding,…
Since its implosion back in 2014, the Mt. Gox exchange hacks continue to loom large within the cryptocurrency ecosystem. The U.S. District Court for the Eastern District of Pennsylvania determined recently it does not have jurisdiction in a case involving Gox victims and a bank closely associated, in effect condemning victims to redress their grievances at the scene of the crime, Tokyo, Japan.
Also read: Philippines Okays PDAX Crypto Exchange
Gox Victims Must Take Up Claims in Japanese Courts
Gregory Pearce, according to court documents, picked the perfectly worst time to attempt withdrawing $ 5,900 through Mizuho Bank Ltd of Tokyo, Japan. The bank had the sole US market for Gox withdrawals and deposits at the time. Mizuho and Gox were both under suspicion for crimes, with the bank allegedly thought to be funding organized crime in various aspects. Gox, then processing something like 70% of the world’s bitcoin, was equally under investigation for suspected money laundering.
According to the court decision, “Mizuho facilitated international cash wire transfers from Mt. Gox users into the exchange and processed user requests to withdraw fiat currency from the exchange to their outside bank accounts,” the judge wrote. “When a user wished to deposit money in their Mt. Gox account, Mizuho would accept the payment that had been wired through the user’s outside banks and deposit the funds into Mt. Gox’s Mizuho account. Such wire transfers not only designated Mt. Gox as the beneficiary of the wire and Mizuho as the beneficiary’s bank, but also included the Mt. Gox user’s account number to which the funds were to be directed.” He continued:
Likewise, when a user wished to withdraw fiat currency from their Mt. Gox account, Mt. Gox would provide the request to Mizuho for processing. Such requests included the user’s banking information and the amount to be transferred. Mizuho would then transfer out the requested amount to the user’s outside bank.
Right around this exact time, exchange clients began agitating about not being able to withdraw from accounts. Either unknowingly or willingly, the bank continued to take deposits and collecting requisite fees up until Gox, and not the bank, blocked users. Mr. Pearce was among them. He received notice of a “delay” for international withdrawals.
Mizuho Off the Hook in US
The rest is cryptocurrency history, and the broader community has been fighting Gox and its creditors and receivers to get at funds owed. Mr. Pearce brought a class action against Mizuho, claiming it had balked on its contract. Mr. Pearce also brought claims of fraud and negligence against disgraced exchange CEO and president Mark Karpeles. Unfortunately for Mr. Pearce, he brought his suit in the wrong jurisdiction, Philadelphia.
Mizuho quickly moved to have the claims dismissed on the grounds the bank is a Japanese company operating under Japanese law, and therefore a US court was clearly out of bounds. The bank doesn’t have a single employee in Philadelphia, much less a branch. Other than Mr. Pearce being a resident, the bank’s ties are exactly zero. Judge Robert F. Kelly agreed, granting the dismissal.
The court affirmed not having general jurisdiction in this matter, arguing Mr. Pearce did not establish “a prima facie case for specific jurisdiction over Mizuho.” Beyond even that, it wasn’t clear to Judge Kelly the bank had any idea Mr. Pearce was requesting withdrawal (the spark of the whole matter). What this might mean for US victims in the Gox case as a whole is unclear, going forward. At the very least, the US judicial system is of little use. It appears that for US victims they’ll have to either file in Tokyo proper or hitch their claims to a larger class action suit filed in Japan.
Should US courts assist its citizens in their Gox claims? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
The post Mt. Gox Victims Must Take Claims to Tokyo, Not US, Judge Rules appeared first on Bitcoin News.
Not a ton of players took a knee in protest during the NFL’s fist week of regular season games … but the first to do so were from The Miami Dolphins. Miami wide receivers Kenny Stills and Albert Wilson quietly took a knee during the anthem…
Could you live without cryptocurrency in your life? For its proponents, bitcoin is a drug that’s had them hooked since the day they discovered it. Not all holders feel the same way though. Stung by massive losses and the realisation that cryptocurrency is taking over their life, some traders forced themselves to walk away for good.
Moving On When the Music Stops
“After spending 5 years in crypto I am out,” began the message board confession. “Yesterday’s crash was brutal, and something I can’t wrap my mind around changed when I woke up this morning. I don’t want to wage-cuck but I will. And instead of spending my entire days behind a screen in a room I am gonna get a job, hang out with the friends that I have been neglecting and just be a cucked member of society.”
The prospect of quitting crypto altogether – everything it stands for and the culture that comes with it – is anathema to most. Being in crypto is like supporting your football team; it’s less something you choose, and more something that’s thrust upon you. Buying bitcoin is akin to being inducted into the Mafia: once you’re in, you’re in for life. But life isn’t always understanding, and for some, cursed by their own greed or poor decision-making, cryptocurrency can become a millstone around their neck, a dead weight more burdensome than the heaviest of altbags.
Crypto Is a Hard Habit to Break
Few tears will be shed over those who came for the profits, got burnt, and then scampered back whence they came. The remainder who are, all memes aside, in it for the tech, and for the financial freedom cryptocurrency can provide, won’t be going anywhere. Not all of those planning to abandon the good ship crypto are doing so because they got rekt, it should be noted. Some have simply become too immersed.
“I’m starting to consider what to do in a few months time,” conceded one freelancer, pondering an exit strategy. Having been working full-time in crypto for six months, while racking up long hours, he’s starting to feel the strain. Despite having been enthralled with bitcoin since 2013, being forced to eat, sleep, and talk crypto 24/7 is taking its toll. He continued:
The Men Who Sacrificed Everything
New research has sought to dispel the notion that women are more risk averse than men. That may be the case, but anecdotally at least, crypto’s quitters are overwhelmingly male. While the rage-quitting stories of anonymous message board posters and pseudonymous Telegram users are hard to verify, collectively, the narrative is clear: due to financial or mental health reasons, a growing number of guys are seeking a clean break.
“Just calculated my losses, 76% loss in 2 months, feeling like quitting crypto,” reads one message on the notorious Rekt Plebs Telegram. “I’m literally done with crypto,” mopes another. It is no coincidence that many of the same people who lost years of their lives to World of Warcraft have succumbed to a similar fate with crypto. The dopamine rush that fuels the rewards mechanism in each of these pursuits is identical.
A Serious Addiction
“I am addicted to this shit,” admitted the /biz/ poster mentioned at the outset. “I need to step away and do something else, just like WoW was 5-6 years back, crypto is dictating my daily life. It’s not healthy and it’s damaging relationships with friends, family; and mentally it’s taking its toll too. Maybe I will just a break, but at this point not intending to come back for some time. Crypto is my addiction, I need to get it out to stop a vicious cycle.” As for his portfolio, he recounts:
180k at my peak, 10k now, cashed out 25k along the way. Wouldn’t know what to do with the 180k if I got there again. Dreadful. But I learned many important lessons. I figure I’d say goodbye to the board which kept me entertained for the past 2 years. Leaving 40$ in ETH & MKR since I CBA to cash [out].
Within minutes of the wallet’s private key being posted, it had been emptied of its shrapnel by a grateful fellow anon.
Humans are obsessive in their habits. We have a tendency to do things 100% or not at all. That’s why guys will hammer the gym six days a week or stay rooted to the couch, and women will yo-yo between dieting and binging. Cryptocurrency, like all of the best things in life, is best enjoyed in moderation, but that’s easier said than done.
Most people have the ability to step away from Tradingview when crypto starts to take over. But for those who struggle with impulse control, taking a complete break from cryptocurrency may be the only option. Walking away in the depths of a bear market is one thing. Staying away when the next bull run kicks in may be quite another.
Could you live without cryptocurrency in your life? Let us know in the comments section below.
Images courtesy of Shutterstock, and Twitter.
Need to calculate your bitcoin holdings? Check our tools section.
The post How To Make Sure Crypto Trading Does Not Take Over Your Life appeared first on Bitcoin News.