Former BitMEX CEO Arthur Hayes Turns Himself in To US Authorities

Former BitMEX CEO Arthur Hayes Turns Himself in To US Authorities

Former chief executive officer of cryptocurrency exchange BitMEX, Arthur Hayes, has turned himself into the US authorities on Tuesday in the case against the platform, him and other top executives, Benjamin Delo and Samuel Reed, for violating the Bank Secrecy Act.

Hayes, a Singapore resident, surrendered in Hawaii six months after federal prosecutors charged them with conspiring to skirt U.S. laws requiring the implementation of money-laundering controls.

As agreed previously, he appeared before a federal judge in Honolulu and was released on a $10 million bond.

Hayes’ lawyers said in a statement that the “self-made entrepreneur” had been wrongly accused of crimes that he didn’t commit. Having already voluntarily appeared in court, Hayes now looks forward “to fighting these unwarranted charges,” they added.

Launched in 2014, Seychelles-based BitMEX was first probed by CFTC in 2019 regarding whether the exchange broke the rules by allowing US customers to trade on the platform. Serving US customers requires registration with the agency.

Back in October, the same day charges were unveiled by the agencies; Reed was arrested in Massachusetts while Delo turned himself in March. Delo has vowed to fight the charges, calling them unfounded and an overreach by U.S. authorities. Both have been pleaded not guilty and released on bond.

Gregory Dwyer, the company’s first employee and head of business operations who was also charged, meanwhile remains at large. Dwyer’s lawyers said they have been in touch with the government and have informed them of his whereabouts as well. The lawyers said in a statement,

“They are also aware that he has every intention to defend himself in court against these meritless charges and is eager to do so.”

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Author: AnTy

Former TD Ameritrade Digital Assets Head Joins Fed Reserve as Chief Innovation Officer

Former TD Ameritrade Digital Assets Head Joins Fed Reserve as Chief Innovation Officer

Sunayna Tuteja has joined the Federal Reserve System as the Chief Innovation Officer. Before heading this position, Tuteja was previously working at TD Ameritrade as the Managing Director, Head of Digital Assets & DLT (Blockchain, Crypto), reads her LinkedIn profile.

TD Ameritrade has been providing its services to cryptocurrency users for some time now. It also made a strategic investment in ErisX, the cryptocurrency spot, and futures exchange during the bear market.

Tuteja joined the broker in 2014 to head its digital strategy department, following which she changed the department that specifically dealt with cryptocurrencies and blockchain technology. Here, Tuteja only spent less than two years.

Under her latest role, she will be working on the Federal Reserve System’s digital innovation strategy. As a CINO, the official is required to stay abreast of the technology industry and market trends to understand their impact on the Fed system. The description for this position reads,

“This role will be responsible for identifying, researching, enabling and evangelizing for innovative new technologies while fostering a culture of technical innovation, encouraging System-wide collaboration and experimentation.”

This is another positive development for the cryptocurrency market, bringing us all that much closer to positive and clear regulations.

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Author: AnTy

Bank of Singapore’s Chief Economist Says Cryptocurrencies Could Edge Out Gold

Bank of Singapore’s Chief Economist Says Cryptocurrencies Could Edge Out Gold

But certain risks, such as trust, volatility, and regulatory clarity, need to be addressed first.

The Bank of Singapore is the latest institution to favor cryptocurrencies in its push to usurp gold. Optimism over the asset class is high, with the industry showing signs of more growth.

While Bitcoin and several other large-cap cryptos appear to be on the upsurge again, sentiment about the crypto market is gaining momentum.

However, many are still hung up on the leading cryptocurrency’s recent performance, and talks of the asset usurping gold as the global reserve currency have continued.

No Way Over Fiat, but Time’s Up for Gold

The latest body to weigh in on the prospect of Bitcoin overtaking gold is the Bank of Singapore. According to a report from The National news, the bank recently published a research note where it touted cryptocurrencies as a possible replacement for gold down the line.

In the report, the Bank of Singapore argues that cryptocurrencies are unlikely to replace fiat currencies – practically pouring cold water on the hopes of those who are touting the digital yuan and other Central Bank Digital Currencies (CBDCs).

Mansoor Mohi-uddin, the bank’s chief economist, explained that cryptocurrencies are an inefficient unit of exchange, and central banks won’t be able to print them at will in times of crisis. However, he also explained that digital assets are more likely to become the major safe-haven asset. With the market showing significant potential over the past few years, there is every reason to believe that cryptocurrencies could easily overtake gold.

To do this, the bank believes that cryptocurrencies will need to overcome some hurdles. For one, it pointed out the need for trusted institutions that will provide custody for investors. Many cryptocurrencies would also need to be more liquid, allowing high levels of trading and other activities to take place. Improved liquidity will also reduce volatility, a problem that the crypto industry has had for years.

Everyone Loves Crypto

The Bank of Singapore isn’t the only institution pumping Bitcoin to overtake gold eventually. In a recent opinion piece, Anthony Scaramucci and Brett Messing, two executives at New York-based hedge fund SkyBridge Capital, explained that Bitcoin is ripe for investment as its ownership is now as safe as gold and government bonds.

SkyBridge Capital filed with the Securities and Exchange Commission to launch its Bitcoin fund last December. When the fund launched fully earlier this month, the New York firm claimed that it had as much as $310 million in exposure to the leading cryptocurrency.

Investment banking giant JP Morgan has also touted Bitcoin’s chances of taking up more of gold’s market share. In an investment note, the company’s strategists said:

“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

Institutional investment is sure to push Bitcoin and the entire crypto market even higher. With government regulation expected soon, the future definitely looks bright for this fledgling market.

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Author: Jimmy Aki

Former Goldman Sachs President Not a ‘Strong Believer’ in Bitcoin; It ‘May Fail’

Gary Cohn, former economic chief to Donald Trump, says Bitcoin may fail, despite the digital asset having more than a decade long history, growing adoption, and increasing value from mere cents to $19,550 today.

On being asked about his views on Bitcoin, which is on a tear, and how the digital asset and cryptocurrency fundamentally transform our economy, Cohn had the typical ‘love blockchain but hate bitcoin’ reply. Former Goldman Sachs President and Chief Operating Officer in an interview with Bloomberg on Tuesday said,

“When we talk about blockchain we come back and talk about the infrastructure, that’s the highways and the pipes that are necessary for bitcoin but they’re necessary for many other applications and I think they’re very useful and I’m very bullish on them.”

As for Bitcoin, he doesn’t have a “strong opinion” on the flagship cryptocurrency, which has a market cap of $360 billion. He said,

“In essence, I’m not a strong believer in bitcoin… it is a developing asset potentially and for all the reasons it’s a strong developing asset class it may fail.”

He further explains that part of an asset class’s integrity to a system is knowing who owns it, why it’s being transferred, and if it is used for legitimate causes or corrupt practices. The 60-year old said,

“The bitcoin system today has no transparency to it, so there are a lot of people that question why would you need a system that does not have an audit trail, does not have integrity.”

According to him, Bitcoin “lacks some of the basic integrities of a real market” because “you don’t know who owns it, you don’t know exactly how much exists today, how much has been mined how much has been lost, how much has been thrown away on hard drives because they don’t exist anymore so it.”

This is the weakest argument ever for starters, he is talking about cash, and second, if Cohn had bothered to get himself acquainted with Bitcoin, he would have known the most extensive network is a transparent one, and that’s why the different government agencies have been able to catch people trying to route their funds in BTC to avoid authorities.

Haters are just going to hate and miss being part of this revolution until it’s too late.

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Author: AnTy

SoftBank CEO Sold his $200M Bitcoin Investment in 2018 Because He Couldn’t Stop Price Watching

Every Bitcoiner knows this feeling.

And we can relate to Masayoshi Son, the founder, and chief executive of SoftBank.

But what we can’t relate to is that he still does not understand Bitcoin.

At the DealBook Online Summit on Tuesday, Son, who has made billions from his bets that involves an early investment in Alibaba, said he was convinced by a friend to invest “1% of his personal assets” into bitcoin, as such investing “about 200 million.”

But much like any crypto community member, he would spend five minutes each day looking at BTC prices fluctuating, he said. He was stuck tracking the movement of his Bitcoin investment and found it to be “distracting [his] own focus on [his] own business.”

This led him to sell his stake in BTC in 2018, and according to him, he lost an estimated $50 million, which could actually be closer to $130 million.

“I feel so much better,” Son said.

If he had kept patience and held on to his BTC investment, Son’s investments would have been getting ready to turn into billions. After the bear market of 2018, Bitcoin has been gradually entering the bull market, which came in full force in 2020, especially in the Q4 of this year.

Two days ago, BTC/USD jumped to nearly $19,000, a level not seen since the Bitcoin bull market’s peak in December 2017. The digital asset is now just inches away from hitting a new all-time high.

While personally, Son couldn’t keep up with the bitcoin volatility, he still believes the “digital currency will be useful,” adding, “But I don’t know what digital currency, what structure, and so on.”

Son also missed the opportunity to be an early investor in Tesla and Amazon. In the case of Amazon, despite speaking with its founder and CEO Jeff Bezos about a 30% stake in the company before it went public. But of course, he didn’t take it, “I’m so stupid!” he said. He rather made a big mistake by pouring billions in WeWork.

While talking about the missed opportunities during the Summit, Son said his philosophy is “I would rather accept my stupidity and my ignorance — my bad decisions — so that I can learn from my mistakes,” he said. “It’s better to accept them, so I become smarter.”

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Author: AnTy

Here’s Why An Outspoken Bitcoin Supporter, Hedgeye CEO, Sold All His BTC

Keith McCullough, the chief executive officer of Hedgeye Risk Management, has sold all his Bitcoin to get back into the USD.

McCullough actually has been an outspoken Bitcoin supporter for some time now, but yesterday, he announced on Twitter that he is exiting his bitcoin position.

This certainly got the crypto community talking, with some pointing out how MicroStrategy CEO Michael Saylor decided to buy bitcoin at a higher price than McCullough sold his BTC at.

McCullough first jumped into the leading digital asset right at the height of the 2017 crypto rally.

Interestingly, his latest tweet came just two weeks after he said, “Bitcoin looks like a long” and that he will buy some more BTC. He further noted how it’s “inversely correlated, at an increasing rate, with the US dollar index.”

And this is the reason why he went short on BTC.

As McCullough retweeted Luca Balestrieri’s tweet, “He understands correlations, and he is not a permabull. He sold all his Bitcoins today, he didn’t say he won’t buy Bitcoin anymore. If the USD strengthens so all the (many) correlated things to it will go down, Bitcoin included. He booked a profit today to buy lower next future.”

“USD: was end of AUG the low? #Quad4 is US Dollar Bullish,” tweeted McCullough.

According to Hedgeye Risk management, the US economy is in Quad4 when GDP growth and inflation are slowing. And this is why he sold all his BTC; however, he did make money on his BTC trade.

Besides BTC, he also sold his Barrick Gold, bullion mining company, investment, and is shorting silver as well. And the reason is the same – while the yellow metal enjoyed US dollar weakness in the previous quarter, the precious metal would decline in this quarter with McCullough expecting the dollar to strengthen.

He also tweeted that bitcoin has today fallen under 410,600 “after failing Hedgeye TRADE resistance yesterday #Quad4.” According to him, “Evidently Bitcoin needed stimulus.”

Moreover, he sees Bitcoin as a long-term play.

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Author: AnTy

CoinMarketCap’s Top Execs Jump Ship; Did Binance Push Them Out or Seeking Greener Pastures?

After two years at CoinMarketCap as a chief strategy officer, Carylyne Chan, who has also been the acting CEO, is exiting the renowned cryptocurrency market data firm. Following Chan on the exit door are Spencer Yang and Jeremy Seow, the Vice Presidents in charge of Operations and Product, respectively.

Chan joined CoinMarketCap in January 2018 and announced that she would be leaving the company on Aug. 31. Chan was appointed as the interim CEO following the acquisition of CMC by Binance in April this year.

Seow was appointed as CoinMarketCap’s vice president in charge of products in June 2019. Yang also joined the data firm in June last year as the vice president in charge of operations, growth as well as revenue.

During her time at CoinMarketCap, Chan has implemented various policies which have seen the firm play a major part in the mainstreaming of the crypto market. Chan saw the firm launching on various platforms such as Reuters, Nasdaq as well as Bloomberg, with the firm’s crypto indices offering cryptocurrency data to a larger audience.

Speaking to Bitcoin Exchange Guide, Chan stated that she is leaving the company with hopes that CMC will play a vital role when it comes to crypto education and awareness. A crucial aspect of the strategy that she introduced was a feature known as CMC Alexandria, which is an educational sphere of CMC which looks to orient newbies to the crypto world.

Chan explained that there is a lot to do to ensure the mass adoption of crypto. She explained:

“Apart from shedding light on the complicated inner workings of crypto, I believe that there is also a lot more that we need to do to make the actual use of the technology easier. We’ve all known for a while that better user experiences and simplified interfaces and products will be key to ramping up adoption of crypto.”

Chan noted that she was proud that she was involved in hiring as well as training more than a quarter of CMC staff and is hopeful they will continue offering the best to the clients.

At publication time, the company was yet to communicate on the team that will take over from the departing management.

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Author: Joseph Kibe

Pres. Trump’s Ex-Chief Of Staff Launches A Hedge Fund; Will It Invest in Cryptocurrencies?

Mick Mulvaney, who served as chief of staff under President Trump, has launched a hedge fund. From 2014 after Mulvaney has been acknowledged as a pro-Bitcoin crusader calling for crypto-friendly regulations in the country.

Mulvaney has partnered with ex Sterling Capital Management top manager Andrew Wessel to launch the new fund known as Exegis Capital. The new hedge fund was revealed at a podcast with S&P Global Market Intelligence.

During the Bitcoin Demo Day conference held in 2014, Mulvaney urged the government not to rush to regulate Bitcoin. At the time, Mulvaney stated that the king coin could easily become a crucial medium of trade as well as a vital means of payment. He explained:

“My interest in it is just to try and make sure that the government doesn’t act too soon in such a fashion that curbs the potential for Bitcoin. Because I see the potential for Bitcoin as a medium of trade and as a transactional tool, and I’d hate to see the government make decisions early that sort of retard its growth.”

From that day, Mulvaney has vigorously urged the government to regulate the crypto sector prudently. After Mulvaney was appointed as White House chief of staff, the crypto industry executives generally supported the move.

However, it remains unclear whether Mulvaney’s optimistic view of Bitcoin will lead the newly launched fund to be active within the crypto market.

In the last few weeks, the Bitcoin market has witnessed a surge in institutional investors. The recent entrant is Fidelity Investments, which is seeking approval from the U.S. Securities and Exchange Commission to launch a Bitcoin fund.

The surge in institutional players within the Bitcoin market has led to speculations on whether other hedge fund players are set to enter into the crypto space.

Although Mulvaney has long left his White House appointment, he still holds a special envoy post. Trump’s administration has maintained a negative stance on cryptos, and it is unlikely that Exegis Capital will immediately jump into the crypto market.

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Author: Joseph Kibe

Insufficient Clarity for Regulations And Taxes May Force US Investors Move On: Coinbase Tax VP

The Chief Tax Officer of Coinbase, Lawrence Zlatkin, believes that lack of clarity in the US’ crypto taxes could alienate prospective investors. He shared these sentiments during a Unitized panel held on July 7, where he joined Rob Massey and Jessica Reif-Caplan, who are also tax leaders at Deloitte and Fidelity, respectively.

According to the point of view of this panel, plenty of countries are advanced when it comes to crypto taxation, compared to the U.S. Therefore, a move to such jurisdictions will soon be a no-brainer if the Internal Revenue Service (IRS) does not match the global pace.

Most of the challenges in tax definition are a result of the complex underpinnings of crypto ecosystems. At the moment, digital assets are still in the grey zone with much ambiguity on operations, including tax issues. For instance, staking rewards that have gained popularity with the DeFi frenzy are still complex assets for a good number of crypto market stakeholders. Fidelity’s Reif-Caplan reiterated that:

“There are so many differences between various digital assets, and staking alone is such a complicated thing to understand if you are not that close to digital assets.”

A Motive for Overseas Expansion

As the IRS continues to forge clarity in reporting crypto taxes, firms like Coinbase, which already operate in the U.S, are already considering a shift to countries with more solid frameworks. Currently, U.S citizens are required to report crypto in their tax filings despite the lack of proper guidelines.

Zlatkin noted that this uncertainty would eventually cause an outflow of capital towards countries with a more mature view on the digital currencies. Coinbase has already considered expanding its footprint beyond the U.S market. Zlatkin said,

“It’s a growth model for us, just where we operate, accessing more customers, being able to trade more assets […]. Generally speaking, most customers in the space particularly would be from major jurisdictions like Canada, the U.K., the EU, and within Asia.”

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Author: Edwin Munyui

VaultAge Solutions CEO Declared Bankrupt After Scamming Crypto Investors Out of Over $13M

Willie Breedt, chief executive officer of the crypto investment firm, VaultAge Solutions, has been declared bankrupt, who is currently on the run after defrauding thousands of investors, reported News24.

Started in 2018, the company traded Bitcoin and other cryptocurrencies on behalf of its investors and promised to act as a “digital vault that grows wealth over time” to “alleviate financial strains from individuals, entrepreneurs, investors, and communities.”

The Gauteng High Court in Pretoria has sent a sequestration order that forces debtors into bankruptcy, to Breedt, who is currently under investigation for defrauding 2,000 investors for 277 million South African rands ($13.3 million).

The order was given after one of the company’s most prominent investors, Simon Dix, who entrusted R7.5 million (just over $440k) to Breedt, applied for it. Insolvency was granted, and previously, two accounts belonging to the company were also frozen.

Breedt went into hiding two weeks ago after some irate investors sent a group of “debt collectors” to recover their money from him. Just before he disappeared, he told police that he was being intimidated.

After the court granted the order, the police and a team of specialist cryptocurrency forensic investigators raided a house in Silver Lake where Breedt was allegedly hiding since mid-June, but he hasn’t been arrested yet.

The police, however, did find several electronic devices, including a laptop and his hardware wallet, Ledger Nano, that store cryptos.

The central bank of the country, South African Reserve Bank has now assigned PricewaterCoopers to investigate ValutAge and all the agents that were involved in selling cryptocurrencies.

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Author: AnTy