$ 3 billion in BTC from PlusToken scam seized by Chinese authorities

China announces seizure of $ 4.2 billion in cryptos under the PlusToken Ponzi scheme.

Chinese authorities plan to liquidate the “coins” confiscated under existing laws.

PlusToken was one of the biggest crypto Ponzi schemes.

A Chinese court has released a detailed analysis of the total crypto assets seized as part of the PlusToken scam, including around $ 3.3 billion worth of Bitcoin (BTC).

Some commentators say the timing of the news points to an attempt by FUD to create panic in the market.

Chinese police confiscated over 194,000 BTC from PlusToken

According to the court ruling published on Scribd , Chinese police seized nine major digital assets as part of their crackdown on the PlusToken Ponzi scheme.

Along with 194,775 BTC worth $ 3.3 billion, the confiscated reserve also includes 833,083 ETH, 487 million XRP and 79,581 BCH, as well as 27.6 million EOS, 6 billion DOGE, 74,167 DASH and 213,724 USDT.

In total, Chinese police have transported more than $ 4.2 billion in cryptocurrency based on current market prices. The Bitcoin horde alone accounts for over 1% of the current supply of BTC in circulation.

China Bitcoin

Perhaps a bit of comic relief from the news is the fact that China now owns $ 6 billion of a “same crypto” like Dogecoin. The entered DOGE represents almost 5% of the token’s circulating supply at the time of printing.

The disclosure of the seized PlusToken funds comes in the wake of the Yancheng Intermediate People’s Court denying appeals filed by key agents convicted of the scam.

As previously reported by BeInCrypto, Chinese police arrested 109 people associated with the Ponzi scheme in June. The news of the arrests marked the first major crackdown by Chinese authorities against participants in a crypto Ponzi scam.

China to liquidate seized PlusToken cryptos

A rough translation of the court document revealed that there were plans to liquidate Bitcoin and other seized assets „in accordance with applicable laws.“ The court statement also revealed that the funds from the sale of these assets will be sent to the National Treasury.

In 2019, some entities sold several crypto tokens linked to the PlusToken Ponzi scheme. Indeed, reports of large crypto holdings associated with the scam in the market triggered some price drops in 2019.

The PlusToken scam is said to have defrauded more than 2 million victims for an amount of approximately $ 5.7 billion. Along with OneCoin and BitClub, it remains one of the biggest cryptocurrency scams in industry history.

If Bitcoin goes up, Coinbase falls: interruptions of the largest US exchange trigger fury among traders

Coinbase has suffered several interruptions since March, often coinciding with volatile Bitcoin trading days.

Coinbase seems to be experiencing a crisis in its capacity. As users have pointed out for years, when Bitcoin Legacy and other cryptoactives become especially volatile, the exchange drops without notice. These interruptions can prevent customers from buying or selling their assets and are usually viewed unfavorably by traders.

US regulator wants to prohibit banks from boycotting legal companies, including cryptocats

Between March and November, the exchange recorded nine different problems, leading to various types of interruptions or connectivity problems, although the direct impact on customers is not yet measurable. The problems vary in severity. The status update posted by Coinbase said, „Coinbase.com is experiencing connectivity problems.

Four of these occurrences coincided with the volatile price action of Bitcoin, according to TradingView.com’s 30 minute price candles.

On April 29th, Coinbase reported connectivity issues. In a later update, Coinbase.com claimed to have experienced problems between 10:00 and 12:30 PDT that day. The price of Bitcoin changed 4.54% during that time. Cointelegraph also published about the platform difficulties that day.

On May 9th, Coinbase notified customers of another difficulty, publishing again: „Coinbase.com is facing connectivity problems“. This time, the price of Bitcoin changed 15.26% between 17h and 18h PDT – period in which the exchange was off the air, and details were only published several days later.

It’s a coincidence that every time we have great market movements, @coinbase falls? That @SEC_Enforcement seriously investigates this. We need some transparency.

– Alex Cobb (@AlexCobb_) May 10, 2020

Before Congress, regulators challenge U.S. pace in developing national digital currency

The third case triggered by a major Bitcoin price action happened on June 1st, when Coinbase once again warned the public about connectivity problems. The incident impacted users between 4pm and 5pm PDT, a period during which Bitcoin moved 6.94% in price. In the days following this particular incident, some Coinbase customers left the platform, as demonstrated by the Bitcoin withdrawals on June 9th.

Coinbase also suffered another connectivity problem on July 28th between 2h and 4h30 PDT, during which Bitcoin moved 3.82% in the price.

However, not all of Coinbase’s problems coincided with BTC’s price fluctuation days. Coinbase notified the public about the problems on November 16, stating: „The site and mobile applications do not load“. Bitcoin changed only about 1.72% in price during the period of the problems, although it was enough to cause more indignation among traders. Connectivity problems also occurred on May 28th, July 17th, August 18th and November 11th, during which Bitcoin moved less than 3% in price during each incident.

Coinbase fell again. Therefore, I strongly encourage everyone to leave Coinbase.

They had years and endless resources to prepare for it. For me, it’s not by chance that these things happen, and it’s very dark.

Market Wrap: Bitcoin henger rundt $ 18K mens Ether låses i DeFi-avslag

Bitcoin sto rundt $ 18.000 etter rekordvolumer på onsdag, mens Ethereum 2.0 kan få noen investorer til å flytte eter ut av desentralisert finansiering (DeFi).

Bitcoin (BTC) handler rundt $ 18,026 per 21:00 UTC (16:00 ET). Får 2,1% i løpet av det forrige døgnet.
Bitcoins 24-timers rekkevidde: $ 17,364 – $ 18,170
BTC over 10-dagers og 50-dagers glidende gjennomsnitt, et bullish signal for markedsteknikere.

Bitcoin-handel på Bitstamp siden 17. november.

Bitcoins prisstigning stoppet noe torsdag, med verdens eldste kryptovaluta som slo så høyt som $ 18 170 før de falt under $ 18 000-nivået, men tilbake til $ 18 026 per pressetid.

Volum bidro til den svekkede prishandlingen. På 1,79 milliarder dollar var onsdag den høyeste volumdagen for store USD / BTC spotbørser siden tilbake 13. mars, da volumene slo 1,98 milliarder dollar dagen etter „Black Thursday“ -krasj. I dag var det daglige volumet på disse børsene på omtrent 867 millioner dollar.

Daglige bitcoinvolumer på store USD / BTC-børser.
Kilde: CoinDesk Research / Shuai Hao
En volumtilbakemelding fra den nest største dagen på USD / BTC spotmarkedet i 2020, avskrekker ikke analytikere om deres bullish prognoser.

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„Den nåværende oppadgående bevegelsen virker mer bærekraftig enn bullet i 2017, ettersom institusjonelle investorer nå posisjonerer seg i Bitcoin Circuit, mens det bare var spekulasjoner i detaljhandel tilbake i 2017,“ sa Elie Le Rest, partner i quant firma ExoAlpha. „Bitcoin bekrefter med sitt nylige prisflyt at det har en plass i en diversifisert portefølje.“

Les mer: Deutsche Bank sier at investorer i økende grad foretrekker Bitcoin fremfor gull

„Markedets infrastruktur, regulatoriske regime og den samlede modenhet er mye mer robust enn tidligere,“ sa John Willock, administrerende direktør for kryptoformuesjef Tritium. „Jeg forventer fullt ut et par tilbaketrekninger fra disse nominelle mil-markørene som $ 18 000, $ 19 000 og $ 20 000, men jeg forventer at vi skal se det totale momentumet fortsette resten av året.“

Siden 20. oktober har bitcoins 30-dagers volatilitet økt jevnt og trutt, noe som indikerer at noen prisforskjeller fortsatt kan være i horisonten.

„Ingen eiendeler går parabolsk for alltid,“ bemerket Michael Gord, administrerende direktør for handelsselskapet Global Digital Assets. „Bitcoin har økt med over 50% den siste måneden og skyldes en korreksjon.“

„På lang sikt er jeg fortsatt veldig bullish og ser fortsatt økende interesse fra mer tradisjonelle investorer i bitcoin og andre digitale eiendeler,“ la Gord til.

Les mer: OKEx Exchange sier Crypto-uttak for å starte på nytt innen neste fredag

Investorer ser absolutt på derivatmarkedet, med bitcoin-futures (over $ 6 milliarder dollar) og opsjoner (over $ 4 milliarder) åpen interesse som treffer nye høyder. CME, en profesjonell investorplass, har flørtet med $ 1 milliard i åpen bitcoin-interesse denne uken, et tegn på institusjoner som i stadig større grad sikrer kryptoposisjoner.

Selv permabulls som Henrik Kugelberg, en Sverige-basert reseptfri kryptohandler, er forberedt på noen ujevnheter i veien hvis bitcoin skulle jobbe seg til en heltidshøyde.

„Jeg forventer en mye større nedgang ganske snart,“ sa Kugelberg til CoinDesk. „Men alt i alt kan jeg se at BTC går til $ 23 000 – $ 24 000 i løpet av den neste måneden eller to.“

Ether beveger seg ut av DeFi
Den nest største kryptovalutaen etter markedsverdi, ether (ETH), var opp torsdag, og handlet rundt $ 475 og klatret 0,55% på 24 timer fra kl. 21:00 UTC (16:00 ET).

Mengden eter “låst” i desentralisert økonomi, eller DeFi, synker. Høsten begynte 14. november og gikk fra 8,9 millioner til 7,7 millioner ETH per pressetid, ifølge aggregator DeFi Pulse.

Jean-Marc Bonnefous, administrerende partner for investeringsselskapet Tellurian Capital, mistenker at noe av eterbevegelsen ut av DeFi kan ha å gjøre med Ethereums ambisiøse „2.0“ -prosjekt. Dette krever en viss kapitalallokering til en smart kontrakt som er satt av til å sette noe kjent som „fyrkjeden“ for å lansere det nye nettverket.

„Det er behov for å finne ytterligere 400 000 ETH for å fylle den første fasen av innsatsen i ETH 2.0 innen utgangen av november,“ sa Bonnefous. „Så dette kan forklare noe av lekkasjen fra DeFi.“

Andre markeder
Digitale eiendeler på CoinDesk 20 er blandet torsdag, for det meste grønne. Notabl

Cayman Islands: Regulation for Virtual Asset Service Providers

The well-known tax haven is apparently actually trying to improve its image.

The Cayman Islands Ministry of Financial Services announced that it would develop a regulatory framework for virtual asset providers (VASPs)

In a press release dated October 31, the ministry claimed that it would „better regulate and attract people and companies professionally trading virtual assets.“

The first phase of implementation, which is already underway, is about compliance and enforcement of anti-money laundering and terrorist financing rules.

The new framework includes the latest recommendations from the Financial Action Task Force from 2019.

As Cointelegraph reported at the time , these recommendations include the controversial „travel rule“. This requires Bitcoin Up app to collect and pass on personal data about the originator and beneficiary of transactions.

VASPs must register with the Cayman Islands Monetary Authority and thus demonstrate compliance with global AML / CFT standards

The Cayman Islands AML / CFT actions are currently under review by the FATF and the Caribbean Financial Action Task Force following a recently released mutual evaluation report.

The VASP framework will be submitted for review before the CFATF reassessment in November. The results of the FATF review are to be published at the end of the 1st quarter of 2021.

The second phase of the framework implementation deals with „licensing requirements and regulatory oversight“. It is expected to start in June 2021.

Last month, the Cayman Islands were removed from the blacklist of EU tax havens . The region is making serious efforts to improve its image in the financial world.