Digital Currency

Nigerian Authorities Put Mastermind of the Inksnation Crypto Scam on Wanted List

16/11/2020 by Idelto Editor

Nigeria’s Economic and Financial Crimes Commission (EFCC) is seeking the public’s help in locating Omotade Sparks Amos Sewanu, the mastermind behind the Inksnation crypto scam. According to a notice published in the local media on November 11, the EFCC wants Sewanu to respond to fraud charges relating to Inksnation’s purported crypto token- Pinkoin.

The Inksnation scam, which gained popularity just before the start of lockdown restrictions, has duped many Nigerians with its promise of a lifetime income. Interested investors are asked to choose from five different investment packages. Each package promises a different monthly salary.

Fraud Charges

However, according to information on Inksnation website, all salary payments are in the form of the Pinkoin crypto token. Furthermore, the token is not listed on any crypto exchange in Nigeria therefore raising questions about its liquidation.

Despite this, the Inksnation masterminds continue to post testimonials on social media of some Pinkoin investors who claim that they are getting the monthly salaries as promised. The use of testimonials is a common tactic used by many Ponzi schemes. They are intended to blunt scam allegations and to hoodwink fence-sitting potential investors.

However, in its public notice, the EFCC specifically states that Sewanu is facing charges of “obtaining by false pretences, name dropping as well as fraud,” an amount of $84,200 (or 32 million Naira). According to the notice, Sewanu received the money in question after “floating the online digital currency.”

By raising fraud charges against Sewanu, Nigerian authorities appear to be escalating the fight against the defiant Inksnation team. This follows the Nigeria Securities and Exchange Commission’s (NSEC) public notice that labelled Inksnation an illegal operation. Similarly, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) issued its own notice which labelled Pinkoin a scam.

Both warnings did not stop the Inksnation team from continuing to solicit for funds from unsuspecting Nigerians. However, the EFCC notice raises the stakes as Sewanu and his accomplices face possible criminal indictment.

Systems Upgrade

Interestingly, some two days after the EFCC published the notice that features Sewanu’s photo, the Inksnation team issued an apology and urged calm after one of its websites went down. In a tweet, in which the organisation is eager to assuage followers, the Inksnation team says:

Be informed!!! If you are experiencing difficulty logging in to your account or any other thing. Do not worry, do not panic and do not start raising alarm. Before informed that website maintenance is ongoing, keep calm.

Still, in another tweet, the Inksnation ring leaders appear unfazed and continue to invite more people to register.

It should be noted that claims of a computer error or systems upgrade normally precede the collapse of Ponzi scams. Just recently, the masterminds of a Spanish scam froze accounts of tens of thousands of investors after a computer error caused heavy financial losses.

Smaller scams also use the excuse of a systems upgrade to keep investors at bay while they make their escape. News.Bitcoin.com is following the events at Inksnation and will provide updates on new developments as they unfold.

Do you think the public notice by EFCC will stop Inksnation from continuing to solicit for money? Tell us what you think in the comments section below.

The post Nigerian Authorities Put Mastermind of the Inksnation Crypto Scam on Wanted List appeared first on Bitcoin News.

Hedge Fund Manager Brian Kelly Says Increasing Institutional Interest in Bitcoin Down to its Fixed Supply

14/11/2020 by Idelto Editor

Hedge Fund Manager Brian Kelly Says Increasing Institutional Investor Interest in Bitcoin Down to its Fixed Supply

Hedge fund manager Brian Kelly says the surging number of institutional investors owning bitcoin is down to the digital currency’s core value proposition- a fixed coin supply. On the other hand, the same institutional investor interest is helping to build confidence in the top cryptocurrency while taking away some of the perceived risks.

Bitcoin Value Proposition

Kelly’s comments follow reports that the European Central Bank (ECB) wants to issue its own digital currency. Speaking in an interview, Kelly, who is the founder of BK Asset Management, dismisses the notion that a central bank-issued digital currency poses a threat to bitcoin.

Noting that China and the U.S. have similar plans, Kelly is quick to point out that none of the central bank-issued digital currencies can match bitcoin’s value proposition. Kelly explains:

I cannot imagine the ECB issuing a digital currency that has a fixed supply. In fact, I would think it (digital Euro) will make it a lot easier for them to digitally print more money.

Furthermore, he says it is this creation of excess money by central banks that “carry risks for holders fiat currency.” Creating excess money highlights why bitcoin (BTC) is seen as “digital gold.”

Bitcoin vs Gold

However, when asked about his bitcoin price prediction, an evasive Kelly offers an explanation of what is likely to happen first before the top crypto makes its biggest break. He says:

Bitcoin has been above $15,000 for more than 12 days in its entire history. I suspect that some people who bought in late 2017 and in 2018 might want get out of it. So I would not be surprised to see a pullback.

Still, the fund manager says that he will not be surprised if the value surged further in the “longer term.” Bitcoin, which trades above $16,150 at the time of writing, has a total market value of over $300 billion. In contrast, the total value of known gold stocks is $9 trillion, a figure that dwarfs bitcoin’s total market value several times over.

Without being specific, Kelly says the current disparity between bitcoin and gold prices means “there is a lot scope for upside.”

Large Traders Double on CME

Meanwhile, backing Kelly’s strong assertions that institutional investors are heavily involved in the bitcoin, is the latest weekly report by Arcane Research. According to the report, the number of large bitcoin traders on the CME “has more than doubled this year” while open interest is nearing $1billion.

Arcane Research cites a report by the Commodity Futures Trading Commission (CFTC) showing almost 100 large traders that hold the bitcoin contracts on CME. This contrasts with the year 2019 when there were only 45 such large traders.

The report concludes that “this is perhaps one of the best indications of increased
institutional demand for bitcoin exposure.”

What are your thoughts about Kelly’s bitcoin price prediction? Tell us what you think in the comments section below.

The post Hedge Fund Manager Brian Kelly Says Increasing Institutional Interest in Bitcoin Down to its Fixed Supply appeared first on Bitcoin News.

Court Filing Accuses Bitmex Cofounders of ‘Looting’ $440 Million Before the Fed Crackdown

02/11/2020 by Idelto Editor

A civil lawsuit has been filed against the firm HDR Global Trading Limited, the parent company of the exchange Bitmex, alongside the three cofounders Arthur Hayes, Ben Delo, and Samuel Reed. Plaintiffs allege “the defendants’ Hayes, Delo, and Reed looted about $440,308,400 of proceeds of various nefarious activities.”

The cryptocurrency derivatives platform Bitmex is facing a lawsuit that claims the exchanges three cofounders “looted” $440 million from the platform. BMA LLC, Vitaly Dubinin, and Yaroslav Kolchin have filed the lawsuit against the popular crypto trading platform.

The recently filed lawsuit follows the charges against the exchange stemming from the U.S. Department of Justice (DoJ) and the Commodities Futures Trading Commission (CFTC).

The filing alleges that the defendants were “keenly aware” of the DoJ and CFTC investigations and criminal charges before law enforcement acted.

“While preparing to go on a lam from the U.S. authorities, defendants’ Hayes, Delo, and Reed looted about $440,308,400 of proceeds of various nefarious activities that took place on the Bitmex platform.”

The court filing was invoked by a litigation team called “Consensus Law” and Bitmex categorically denies the allegations.

“Pavel Pogodin of ‘Consensus Law’ has filed a series of increasingly spurious claims against us, and others in the cryptocurrency sector,” an HDR Global Trading Limited representative insists.

“We will deal with this through the normal litigation process and remain entirely confident the courts will see his claims for what they are,” the HDR rep added.

Pavel Pogodin believes that prior to the CFTC and DoJ crackdown, Bitmex executives were “trying to make its funds unavailable for the collection of future judgments against it.”

“Furthermore, such a remarkable surge in proceeds distributions may also indicate that Defendants are looting Bitmex Insurance,” Pogodin’s court filing details.

What do you think about the lawsuit against the Bitmex executives? Let us know what you think about this subject in the comments section below.

The post Court Filing Accuses Bitmex Cofounders of ‘Looting’ $440 Million Before the Fed Crackdown appeared first on Bitcoin News.

Coinbase Launches Cryptocurrency Visa Card in the US

29/10/2020 by Idelto Editor

U.S. customers can now apply for the Coinbase Visa, a card that allows users to spend digital assets anywhere Visa is accepted. In addition to the U.S. launch, Coinbase cardholders will be able to earn up to 4% back in stellar or 1% back in bitcoin.

A while back, the San Francisco-based cryptocurrency firm Coinbase launched the Coinbase Visa debit card for European customers. Coinbase disclosed that the card is now being leveraged in 30 different countries within the UK and Europe.

On Wednesday, the company announced that American residents can now register for the crypto card.

“Starting today, customers in the U.S. can join the waitlist for Coinbase Card, a Visa debit card that allows crypto to be used for payments and purchases online and in-store as well as for ATM cash withdrawals,” the company announced. The announcement explains that the Coinbase card will allow people to spend with nine different cryptocurrencies.

Similarly to competitor cards from firms like Crypto.com, U.S. card users will be able to obtain purchase rewards from Coinbase. “At launch, customers can opt to earn 4% back in stellar lumens (XLM) or 1% back in bitcoin (BTC),” the San Francisco tech firm detailed. American Coinbase card applicants must be fully verified on the system and there will be a wait time until the firm makes its first approvals.

“The first customers will be approved this winter,” Coinbase disclosed. “Once customers are approved, they can spend with a virtual card right away and will receive a physical card in the mail within two weeks.”

Coinbase notes that there is no fee required in order to issue the card, but standard crypto conversion fees may apply. Much like the Crypto.com Visa or the Bitpay Mastercard, the Coinbase card will also provide a virtual card. The firm detailed during the announcement that users can utilize the virtual Coinbase Visa as soon as they are approved.

The company also details that the card is powered by Marqeta, and issued by the FDIC member Metabank. “Coinbase will automatically convert all cryptocurrency to U.S. dollars for use in purchases and ATM withdrawals,” the company announcement concludes.

According to the firm, U.S. residents from all the states are eligible except for residents from Hawaii.

What do you think about the Coinbase Visa card being made available to U.S. residents? Let us know what you think about this subject in the comments section below.

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JP Morgan Sees Millennials’ Bitcoin Preference Over Gold as Foundation for Its Long Term Success

25/10/2020 by Idelto Editor

JP Morgan says bitcoin’s 2020 surge is set to continue as the digital cryptocurrency competes better against gold as an alternative currency. In a note, the financial institution says that with millennials set to become a more important market participant in the coming years, their preference for bitcoin to gold sets up the crypto for future success.

The financial institution’s assessment comes as the digital currency continues to see increasing adoption by institutional investors and an embrace by corporations like payments giant Paypal.

According to a report, JP Morgan estimates the “physical gold market is worth $2.6 trillion, which includes assets held within gold ETFs.” The financial giant deduces that for bitcoin to catch up with gold market value, “the cryptocurrency would have to surge 10x from current levels.”

At the time of writing, the bitcoin market capitalization was at $242.2 billion while the value of one BTC was just above $13,000.

Meanwhile, JP Morgan, whose CEO Jamie Dimon once labeled bitcoin a fraud, acknowledges in the note that “cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as means of payment.”

The financial giant adds that as “more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”

Although JP Morgan believes that new millennials will be key to bitcoin’s future success, the increasing adoption of bitcoin by large corporations suggests the cryptocurrency might close the gap with gold much faster. Bitcoin has surged by almost 15% from the time Square announced its bitcoin purchase on Oct. 8. Immediately after Paypal’s cryptocurrency announcement, the digital currency breached the $13,000 mark.

However, with more corporations expected to follow in the footsteps of Square and Paypal by acquiring and holding large quantities of bitcoin, the resulting shrinking supply will continue to push the price upwards.

What do you think of JP Morgan’s latest bitcoin assessment? Tell us what you think in the comments section below.

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