Attorney, Four Others Charged With Running Global Cryptocurrency Ponzi Scheme

By RTTNews Staff Writer | Published: 8/20/2020 10:27 AM ET

An attorney in California and four others were charged with fraud and money laundering for running a global Global Cryptocurrency Ponzi Scheme, according to a statement by the U.S. Department of Justice (DoJ).

Scott Hughes and Pablo Renato Rodriguez of California, Gutemberg Dos Santos of Panama, Cecilia Millan of North Carolina, and Jackie Aguilar of Texas, were charged in the Southern District of New York for defrauding victims of tens of millions of dollars. These included victims in the Southern District of New York.

The defendants were allegedly running a global multimillion-dollar cryptocurrency investment fraud and money laundering ring that defrauded individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.

The defendants promised extraordinary rates of guaranteed return on phantom investments in cryptocurrencies. They also allegedly spend their victim's money on luxury cars, jewelry, and homes. They laundered at least $20 million in proceeds of the Scheme through various methods.

The alleged fraudsters conducted enticing recruitment events, and then used proceeds of their scheme to recruit additional victim investors through even more aggressive and lavish marketing pitches. These events were hosted across the U.S., and around the world in Latin America, Asia, and Eastern Europe.

According to the charges, the defendants allegedly marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry from late 2015. They falsely promised Victims that AirBit Club earned returns on crypto-mining and trading, which will enable the Victims to earn passive, guaranteed daily returns on any membership purchased.

While Victims saw "profits" accumulate on their Online Portal, those representations were false and no Bitcoin mining or trading on behalf of Victims in fact took place. Victims who attempted to withdraw money from the AirBit Club Online Portal were met with excuses, delays, and hidden fees amounting to more than half of the Victim's requested withdrawal, if at all they were able to make any withdrawal.

They were also forced to "bring new blood" into the AirBit Club Scheme in order to receive her returns. Some victims also saw their accounts closed and principal investment lost by quoting some policy under the terms and conditions they signed.

According to the DoJ, wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty, the DoJ said.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Top 5 DeFi Projects for 2020

John P. Njui   •   ETHEREUM (ETH) NEWS   •   AUGUST 21, 2020

Quick summary:

• 2020 will go down in crypto history as being the year of DeFi.
• Several DeFi projects have made the headlines due to their popularity amongst Yield Farmers.
• They include Compound, Yearn, Yam, Curve and Just, just to name a few.
• With new DeFi projects being launched every day, the future of DeFi solely rests on the ability to keep these projects attractive to Yield Farmers.

After the Coronavirus crash of mid-March, the crypto-verse entered a state of limbo despite the Bitcoin halving being only a few weeks away. The latter event had been projected as being a catalyst for a crypto-wide bull run that would reignite retail and institutional interest in the digital asset industry.

What many investors had not realized, was that a bigger catalyst for a crypto-wide bull run was in the making. This catalyst was DeFi.

In the second and third quarters of 2020, several DeFi projects have risen to prominence as shall be elaborated.

Compound Finance (COMP)

Compound Finance (COMP) was one of the first projects to shift investor focus away from Bitcoin due to the handsome investor earnings through Yield Farming. By lending out digital assets through Compound’s liquidity pool, investors instantly start earning continuous compound interest.

Furthermore, in June, the COMP token was listed on Poloniex thus causing a spectacular increment in value from $55 to $385 (600% in returns). COMP was then listed on both Coinbase and Binance soon after.

It is with the latter fact of COMP being listed on prominent exchanges such as Coinbase, Binance and Poloniex, that solidifies Compound Finance’s presence in the DeFi arena for 2020.

Furthermore, according to DeFiPulse.com and at the time of writing, $801 Million in digital assets is currently locked in Compound finance thus providing more proof that investors are confident about its future.

Yearn Finance (YFI)

With a circulating supply of 29,961 YFI, Yearn finance has taken the crypto-verse by storm. Due to demand, the value of the token has managed to skyrocket past Bitcoin’s current value of around $12k. At the time of writing, YFI is trading at $14,500 and after hitting an all-time high value of $16,700.

The success of the YFI token is one reason that Yearn Finance is a top DeFi project for 2020. Over $750 Million in total value is locked in the DeFi project. YFI has been listed on major exchanges such as Binance and Bibox thus providing legitimacy for the project.

Additionally, Yearn’s decentralized ecosystem aggregates lending services such as Aave, Compound, DyDx and Fulcrum to optimize token lending. Depositing funds into Yearn means that they are rebalanced to choose the most profitable lending service.

Yam Finance (YAM)

The story of Yam Finance (YAM) has a few similarities with DogeCoin’s in the sense that the project was launched as an experiment. The creators of Yam Finance even warned investors that its code was yet to be audited but by the time YAM experienced its first hiccup, over $477 Million was already locked on the DeFi platform.

The fact that its creators have learned from their mistakes and started the process of migrating to YAMv2, proves that it is a top project for 2020. Its migration contract has been audited by PeckShield and YAM finance looks set to have another go at the DeFi arena.

Curve Finance (CRV)

Like Compound, Curve Finance (CRV) rose to prominence in the third quarter of 2020. At the time of writing, approximately $1 Billion in assets is locked in the platform. Launched in January of 2020, Curve allows its users to trade between stablecoins with minimal slippage and low fees.

Its liquidity pools are provided by Compound and Yearn Finance thus providing the necessary volume to allow for efficient swapping of assets on Curve. With the Ethereum network being a beehive of activity leading to high gas fees, Curve provides the perfect solution for those looking for a safe and cheap option to convert between stablecoins.

Curve Finance can be considered as the UniSwap for stablecoins. Currently, the fee on all pools stands at 0.004% and there is no admin fee thus providing incentives for crypto traders to prefer Curve Finance.

Just (JST)

All the above popular DeFi platforms are built on the Ethereum network and the Just (JST) DeFi project breaks away from this pattern for it is built on the Tron (TRX) network.

The latter protocol is the reason Just (JST) is a DeFi project to consider this year. The Tron network is extremely fast when compared to Ethereum at its current state. Furthermore, transactions on the Tron network cost next to nothing thus catching the attention of DeFi investors who are looking for lower fees and faster speeds.

Key to the future of Just (JST) is the JustSwap decentralized platform that allows for the seamless exchange of TRC20 tokens in a manner similar to Ethereum’s UniSwap.

All the developments surrounding the Just (JST) ecosystem are through the efforts of Justin Sun and the Tron Foundation. Mr. Sun is known for his unrelenting work ethic and he has decided to go all-in on DeFi as explained in his most recent letter to the Tron community.

TRON and Just team are going All-In on the DeFi ecosystem. We will not back down until we see the decentralized financial revolution end in triumph. I have faith that as long as we race against time and keep upgrading our products, JustSwap will one day become the powerhouse of 100x cryptos and TRON will build a DeFi protocol that parallels Ethereum’s.

Conclusion

Summing it up, 2020 will go down in crypto history as being the year of DeFi. During the second and third quarter of 2020, several DeFi projects have risen to prominence due to their ability to attract Yield Farmers and the vision of their creators.

The five projects of Compound, Yearn, Yam, Curve and Just stand out from the rest but as time goes by, new DeFi projects will be launched that will enhance these protocols as was seen with the ICO boom of 2017. In the weeks and months to follow, Yield Farmers will be spoilt for choice as they migrate their capital to the newest and most attractive DeFi platform.

As with all analyses of DeFi projects, traders and investors are advised to do their own research. Furthermore, chasing the newest DeFi project poses a significant financial risk as seen with the initial collapse of Yam Finance due to a bug.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin Price Set To Explode Once It Breaks $13,000: Prop Trader

By Brenda Ngari – August 20, 2020

Bitcoin recently breached the $12,000 checkpoint after weeks of consolidating gains. This was a psychological milestone that BTC has been battling for a long time as it has always rejected the crucial mark. 

So, what’s next for the bitcoin market? A prop trader believes the asset breaking through $13,000 would act as a launchpad for further highs.

Why BTC Will Explode Upon Breaching $13K

Bitcoin opened this week with strong momentum as it raced past $12K. The world’s largest cryptocurrency had been trading in a tight range between $11,200 and $12,000 for around two weeks.

Well, BTC cleared the $12K level, rocketing past $12,400 for the very first time in over a year. And for some observers, the cryptocurrency could moonshot if it can take out $13,000. In an August 17 tweet, trader Julien observed that the BTC futures spreads suggest the cryptocurrency will continue trending upwards.

To be specific, the trader noted that the bitcoin futures contracts set to expire in March next year are trading 6% above bitcoin’s spot price. “If #BTC breaches 13k+ this thing is going to explode,” the trader posited.

Bitcoin’s Upsurge Is A Picture Perfect Advance So Far

The famed inventor of the Bollinger Bands that are used to measure bitcoin’s volatility, John Bollinger, has asserted that bitcoin’s recent surge was a picture-perfect advance.

The technical analyst further stated that Bitcoin’s move above $12,000 was well within the Bollinger Bands:

“I imagine that someone is complaining about the $BTCUSD rally. Not me, a picture-perfect advance so far.

Squeeze, confirmed break out, walk up the upper band, consol, support at middle band, mini-Squeeze, break to new highs. How much more could one ask for?!”

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin’s (BTC) Rally is a Picture Perfect Advance So Far – Bollinger

John P. Njui   •   BITCOIN (BTC) NEWS   •   August 18, 2020

In brief:

• According to John Bollinger, Bitcoin’s current rally is a picture-perfect advance.
• BTC has broken the $12k ceiling and managed to turn it into a support zone.
• $13,000 could be in sight if Bitcoin’s momentum is maintained.

The inventor of the popular charting tool/indicator of Bollinger Bands, John Bollinger, has stated that Bitcoin’s current rally is a picture-perfect advance so far. Mr. Bollinger made the comments via Twitter and added that the move by Bitcoin above $12k followed a textbook path within its Bollinger Bands.

His comments were as follows.

I imagine that someone is complaining about the $BTCUSD rally. Not me, a picture perfect advance so far.

Squeeze, confirmed break out, walk up the upper band, consol, support at middle band, mini-Squeeze, break to new highs. How much more could one ask for?!

$13k Could Be In Sight for Bitcoin

Prior to Bitcoin (BTC) breaking $12k, the King of Crypto had printed an ascending triangle. By breaking the $12k ceiling, Bitcoin has set itself on a path to test the 2019 peak value of $14,000.

However, before Bitcoin traders can look forward to a retest of the $14k price level, BTC has to go through another difficult zone between $12,900 and $13,100.

For a better feel of Bitcoin’s price movement, the 6-hour BTC/USDT chart below will be used to provide clues as to what the future holds for BTC.

(Click image for larger view)

From the chart, the following can be observed.

• As explained by Mr. Bollinger, Bitcoin’s rally above $12k was picture perfect.
• BTC broke the ascending wedge as anticipated.
• Bitcoin’s current price at $12,200 is above the 50, 100, and 200 moving averages confirming a bullish environment.
• However, the 6-hour MACD and MFI point towards some exhaustion for Bitcoin on the 6-hour chart.
• Trade volume is also in the red highting of a possible dip to the $12k area to test this area as support.

However, zooming out to the daily MACD, it is observed that it is about to cross in a bullish manner hinting that BTC could be gearing up for another move to retest its recent peak of $12,500. If the $12,500 resistance area is broken, Bitcoin could well be on a path to retest the $13,000 area.

As with all analyses of Bitcoin, traders and investors are advised to use stop losses and low leverage when trading on the various derivatives platforms.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Walmart Enables Crypto Cashback On Purchases

By RTTNews Staff Writer | Published: 8/17/2020 10:36 AM ET

Retail giant Walmart has enabled cashback in cryptocurrencies for their shopping customers in partnership with blockchain-powered gamified shopping loyalty platform StormX.

Users of the platform can earn up to 4 percent in crypto cashback while shopping online from Walmart stores. Diamond members of StormX are eligible to receive up to 14 percent on most purchases. It has added Walmart cashback to its incentives.

Walmart is one of over 650 partner stores integrated with StormX, making it the only platform of its kind offering crypto cashback for Walmart purchases. Walmart joins stores such as Microsoft, eBay, Nike, Adidas, Target, Dell and Samsung, with reward percentages varying between merchants.

StormX has until now paid out more than $2 million in rewards to over one million users. With the pandemic a surge in ecommerce and growing demand for digital assets, StormX has on boarded a wave of new users seeking exposure to the cryptoconomy.

The StormX platform is available as an Android and iOS mobile app, as well as a Google Chrome extension. StormX includes a non-custodial wallet for storing assets like BTC, ETH, LTC, and the native STMX token.

"As the only crypto cashback program for Walmart worldwide, we are confident that users will take advantage of the rewards program to earn their favorite cryptocurrency while shopping at their favorite retailer," said StormX CEO Simon Yu.

StormX said its members can deposit their STMX tokens in the app to earn even higher crypto cash back rewards with their highest level members earning up to 14 percent at Walmart.

StormX is a gamified microtasks platform that enables members to shop online and earn up to 87.5 percent crypto back.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Five Crypto Miners Arrested In Malaysia For Stealing State Electricity

By Brenda Ngari – August 13, 2020

Five cryptocurrency miners have been arrested in Malaysia for their part in stealing electricity worth approximately RM 250,000 (equivalent to $59,580.58) a month to mine crypto, local news agency The Malay Mail reported on Wednesday.

The publication noted that the five individuals were caught during an operation conducted by the Sarawak Energy Berhad (SEB), the Electrical Inspectorate Unit (EIU) from Sarawak Ministry of Utilities and police officers.

The two-day investigation into the matter uncovered five different centers at Jalan Tun Ahmad Zaidi Adruce, Jalan Pahlawan, and Jalan Tunku Abdul Rahman in which the illegal mining activities were taking place.

Further investigation showed that the criminals had attached cables that were hidden in the gypsum ceiling directly to their mining rigs, thus bypassing electricity meters.

While these culprits operated their mining facilities 24/7, initial checks of all the five facilities revealed that the overall monthly bills amounted to around RM800 ($191) to RM1000 ($238).

The SEB, however, stated:

“Actual load readings taken on-site showed that all five premises were consuming at least RM250,000 worth of electricity per month.”

The illegal connections erected by the individuals were all removed and presented as evidence and five official police reports have already been lodged. In addition, the owners of the buildings where these illicit activities were taking place will also be called in for questioning.

Electricity theft is a serious criminal offense in Malaysia under Section 33 (5) of the Sarawak Electricity Ordinance. The five individuals in custody are looking at five years behind bars and/or a fine of up to RM100,000, should they be found guilty.

Since 2018, the SEB and EIU have been looking into 50 cases of electricity theft in the country involving individuals siphoning free electricity to power their cryptocurrency mining operations.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

SEC Charges Virginia-based Boon.Tech And CEO For Running Fraudulent ICO

By RTTNews Staff Writer | Published: 8/14/2020 10:48 AM ET

The U.S. Securities and Exchange Commission (SEC) charged Virginia-based Boon.Tech and its CEO Rajesh Pavithran for fraud and registration violations in connection with a $5 million initial coin offering (ICO) of digital asset securities.

Boon.Tech and Pavithran are charged of raising about $5 million by selling Boon Coins to more than 1,500 investors in the U.S. and worldwide to develop and market a platform to connect employers posting jobs with freelancers seeking work.

According SEC's order, Boon.Tech and Pavithran failed to register the offering as the Boon Coins were offered and sold as investment contracts and were therefore securities. They also made false and misleading statements, including claiming that Boon Coins were stable and secure as they use patent-pending technology to hedge Boon Coins against the U.S. dollar.

The company also misrepresented to investors that Boon.Tech's platform was faster and more scalable than its competitors because it was built on Boon.Tech's own blockchain, while it was developed on the same public blockchain as its competitors.

Pavithran and Boon.Tech defrauded investors by convincing them to fund this endeavor based on the allure of innovation that simply did not exist.

The SEC's order finds that Boon.Tech and Pavithran violated the antifraud and registration provisions of the federal securities laws. Without admitting or denying the SEC's findings, Boon.Tech and Pavithran agreed to settle the charges.

According to the settlement order, Boon.Tech will be required to disgorge the $5 million raised in the ICO plus prejudgment interest of $600,334.

Boon.Tech and Pavithran will also have to destroy all Boon Coins from where ever they are available and refrain from participating in any future offerings of digital asset securities. Further, the order requires Pavithran to pay a penalty of $150,000 and bars him from serving as an officer or director of a public company.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

DeFi Tokens BAND, LINK, Outpace Bitcoin Price by Gaining 100% in 10 Days

Strong growth in the DeFi sector led Band Protocol (BAND) and Chainlink (LINK) to gain more than 100% over the past few weeks.

Image courtesy of CoinTelegraph

            AUGUST 10, 2020

This week Bitcoin (BTC) price is making waves as the digital asset finally pushed above the $12K mark, but prior to this move, altcoins have been strongly outpeforming BTC for weeks.

Two of the most notable performers are Band Protocol (BAND) and Chainlink (LINK) as both surged by 348% and 88% in the past ten days. Each functions as an oracle blockchain network that supplies data to Decentralized Finance (DeFi) applications.

Since the start of August, BAND price rose from $3.9 to as high as $17.78 and in the same period, LINK surged from $7.6 to $14.45 at its peak on Aug 10.

BAND and LINK performances side by side. Source: TradeBlock (Click image for larger view)

What’s behind the DeFi token pump?

The primary factor behind the strong rally is the explosive growth of the DeFi sector.

DeFi applications allow users to carry out various financial activities like trading, loans, and also earning interest from crypto lending.

In order for DeFi platforms to run seamlessly, they need to fetch market data from various websites and blockchain networks and this is where orcacles come into use. Oracles are required within smart contracts to obtain necessary data to run DeFi platforms. Hence, when the DeFi sector expands, the blockchain networks providing oracles benefit from it.

A TradeBlock research paper explains:

“Oracles allow for off-chain data to be integrated with the smart contract parameters that exist on public blockchains. In the figure below, we compare price gains between ChainLink (LINK) and Band Protocol (BAND) over the past three months.”

Data from Defi Pulse shows that since June 1, the total value locked in DeFi apps surged from $1.048 billion to $4.76 billion. As more capital has entered the DeFi market, the demand for oracles also increased.

The main difference between Band Protocol and Chainlink is that the former is based on Cosmos, and the latter operates on top of the Ethereum network. Cosmos is a proof-of-stake (PoS) blockchain, while Ethereum is in the process of moving over to PoS through ETH 2.0.

BAND has seen substantially larger gains than Chainlink over the past several weeks due to a large gap in valuation. Currently, LINK is valued at over $4 billion, whereas, BAND is valued at $308 million despite its 348% gain.

Researchers at Messari explained that BAND followed a similar path as Chainlink, which spurred its growth. They said:

“BAND has recently taken a page straight out of the LINK handbook with a slew of partnership and integration announcements, including a Coinbase Pro listing. Up over 32x on the year, its relative valuation play and anchor to LINK has worked so far.”

The timeline of BAND’s rally. Source: Messari (Click image for larger view)

Will demand for oracles increase?

Kelvin Koh, co-founder of Asia-based venture capital firm Spartan Black said he expects BAND to continue its upward momentum. Over the next 12 months, Koh said he anticipates BAND to close the valuation gap. He said:

“Despite BAND’s significant re-rating YTD, it is worth noting that its circulating market cap is still only 5% of LINK’s while FD market cap is 10%. This is fair currently given BAND’s nascent stage but I expect the valuation gap will continue to close in the next 12 months as BAND scales.”

Since BAND and LINK are based on differing blockchain networks, they will also likely support separate DeFi ecosystems based on Ethereum and Cosmos.

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Original article posted on the CoinTelegraph.com site, by Joseph Young.

Article re-posted on Markethive by Jeffrey Sloe