Crypto Market in Recovery Mode After ‘Fake’ News Volatility Amidst Increased Regulatory Scrutiny

The mainstream media outlets decry crypto after jumping fast on the fake Walmart press release announcing support for Litecoin payments while CT started dissecting the news right from the moment it got published and declared it “fake.”

The crypto market had a rough Monday as rumors of crypto derivatives exchange FTX being hacked floated on Twitter which turned out to be fake.

FTX CEO and founder Sam Bankman-Fried then took to Twitter to clarify that,

“For those who don’t know, Bitcoin withdrawal processing involves combining together UTXOs from deposit addresses etc; a few days ago we consolidated some UTXOs into an address to make processing quicker.”

Before this, Litecoin (LTC) pump and dump news shook the market as crypto asset prices experienced a bout of volatility. Today, we are back on track, i.e., upwards with Bitcoin (BTC) trading above $46k, Ether (ETH) $3,300, and the total market nearly at $2.2 trillion.

However, the mainstream media outlets picked up on the fake Walmart press release announcing support for Litecoin payments pretty quickly.

This news sent the price of Litecoin up by more than 30%, only to tumble back on the ground after it became clear that the press release sent out by GlobeNewswire was fake. Walmart spokesman also confirmed the inauthenticity of the PR.

GlobeNewswire then issued a “notice to disregard” the original release and said that a fraudulent user account was used to issue the release. A spokesperson said,

“This has never happened before, and we have already put in place enhanced authentication steps to prevent this isolated incident from occurring in the future.”

“We will work with the appropriate authorities to request – and facilitate – a full investigation, including into any criminal activity associated with this matter.”

Even the Litecoin Foundation tweeted out the fake news, which was then quickly deleted. In a statement, the Litecoin Foundation said one of their social media team members “was a little too eager” and shared the story and that they have taken steps to correct the future issues.

Charlie Lee, the creator of Litecoin and managing director of the Litecoin Foundation, also described the incident as an “unfortunate situation.”

The Crypto community started dissecting the news right from the moment it became public and already declared it “fake” with Neeraj Agrawal of CoinCenter noting how it was not in Walmart’s newsroom, the wire account for “Walmart Inc” didn’t post anything, and Walmart’s contact email in the PR was owned by a squatter. Not to mention, ​​the retail giant’s email domain used in the PR was registered just last month and didn’t link back to any official website.

In the aftermath, mainstream media is now talking about the industry needing regulatory oversight.

“It’s hard to know what’s legitimate in the anything-goes world of cryptocurrencies,” reads an opinion piece on Reuters.

Bloomberg also wrote that the incident “will only add to the perception that cryptocurrency is at best a play thing for investors and at worst a hotbed of corruption.”

Meanwhile, the article on Reuters talked about US regulators routinely cracking down on such scandals in the stock market and expects similar enforcement here.

“This happens with the regular stock market also. It happens a lot more with the regular stock market than with crypto,” said Litecoin creator Lee.

The Securities and Exchange Commission, meanwhile, has said it does not comment on such matters.

SEC Chair Gary Gensler has recently called crypto the “Wild West,” adding,

“This asset class is rife with fraud, scams, and abuse in certain applications. We can do better.”

Regulators around the world have already increased their scrutiny of the cryptocurrency industry and are working on trying to strike a balance in regulating the market to protect investors and punish the wrongdoers while ensuring that innovation continues to flourish.

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Author: AnTy

Binance CEO Reportedly Will Sue The Block Crypto Media Publication Over False Story

Changpeng Zhao, the CEO of Binance, called out The Block on Twitter for not apologizing to the community for its “fake” headline news concerning the “non-existent” police raid, which damaged Binance’s reputation and the BTC price. He also stated that “We will be suing them.”

According to a Cointelegraph report, the piece that had offended Zhao was part of several reports concerning a new crypto clampdown by China. And that The Block then issued a report titled, Binance’s Shanghai office shut down following visit by authorities, sources say.” Cointelegraph reports that the original title referenced “police raid,” which was then changed to “visit from authorities”.

Zhao wrote,

“Instead of apologizing to the community for the fake headline news of the non-existent ‘police raid’, which damaged our reputation, and $btc price, The Block now tries to argue if there was an office, if CZ had a meeting… who cares? Own up & apologize for your mistake.”

Even though Zhao demanded an apology for the publication, The Block instead released another piece in defense of its position.

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Author: Silvia A

Chainalysis Report: With A ‘High Degree of Certainty,’ BitForex is Faking Its Trading Volume

Chainalysis has released on Friday a report that’s saying the crypto exchange BitForex may fake its trading volume.

The report also presents how for every Bitcoin (BTC) that has been recorded on-chain from January to November, BitForex claims trades of 40,000 Bitcoins, which is comparable to the average of major exchanges, at about 6 Bitcoins being traded to one on-chain.

BitForex Didn’t Comment on the Report. Philip Gradwell, the Chainalysis chief economist and the report’s compiler said:

“There should be a relationship with the bitcoin moving onto the exchange and how much it is traded.”

The report was shown at the New York Chainalysis Links conference and didn’t receive any response from BitForex.

New Tools for Tracking Trading Volume Suspicious Activity

The report made by Chainalysis comes after entities in the crypto world have put more pressure on exchanges suspected to fake trading volume. There are new tools and metrics to identify fakers. More than this, a report made by Bitwise Asset Management and presented in March at the Securities and Exchange Commission says that almost 95% of the reported Bitcoin trading volume doesn’t present the situation accurately. This means BitForex’s fake trading volume is only a small part of a much bigger whole.

The ratio reported by the company is very high when compared with one of 10 other exchanges, when its Bitwise 10, the leading exchanges’ metric, the volume is being analyzed. While the average ratio is 6:1, BitForex’s is 40,000:1.

Exchanges Gain More Popularity When Their Trading Volume is Ranked High

Gradwell said in an interview that exchanges become more popular and gain new users when their trading volume is highly ranked. Just like with search engine optimization (SEO), where digital strategies are being used for websites to rank higher on Google, the exchanges are increasing their visibility with a high-ranking trading volume. This is what determines them to manipulate their data. Here’s what Gradwell had to say further about the matter:

“It’s really going to degrade the trading experience. If you’re a new entrant to crypto, and you think you’re going to a popular exchange – that actually has faked volume – it’s not going to be a very liquid exchange. You’re not going to get the best prices or be able to buy or sell quickly.”

BitForex Failed 5 Out of 6 Tests Conducted by Alameda Research

Market manipulators, researchers, and investigators are choosing BitForex because it has comparably lax standards, as it practices transaction mining. The Chainalysis report is not the only one saying the company is issuing fake reports, seen in July, Alameda Research made an exchange volume report on 48 crypto exchanges, and BitForex failed 5 out of 6 of its tests. Chainalysis looked in 2018 at 12 of the exchanges suspected to fake trading volume, when it also examined Huobi and Bithumb. After the final report, the ratios in volume started to have more consistency, just like the ones of market leaders.

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Author: Oana Ularu

Latest Bitcoin Investment Scam is Marketed as Elon Musk’s Creation with a 4,000% ROI Claim

A new crypto scam has appeared. According to Cointelegraph, this new scam uses fake articles to advertise a non-existent platform and uses the names of several famous people such as Elon Musk, Bill Gates and Richard Branson.

The new site, called Bitcoin Profit, uses fake celebrity testimonials and news to market its product. Known as, the site uses the image of Elon Musk and some famous Australian actors to draw people. Each of the celebrities who appear on the site has its own balance sheet of alleged investments.

This scam is so obviously fake that all the celebrities have the same balances and the scammers claim that people could get a return of over 4,000% in a single week. Anyone who understand a bit about investments would be skeptical, but unfortunately, there are some people who are lured by the faces of famous people and invest their money without understanding the market.

Kate Winslet, an Australian actress, was informed about the scam and told the media that she had no part in it and that they were using her image without her permission.

Bitcoin Profit is not unlike the several initiatives that show up on Twitter all the time. The scammers impersonate figures such as Elon Musk and offer free Bitcoin to people if they “show their interest” by sending a small amount of BTC. Obviously, people never receive the money later.

In most of these cases, the criminals exploit the fact that most people have heard about Bitcoin and possibly that it was profitable but don’t understand it very well.

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Author: Gabriel Machado

Swindling Advertisements on Facebook Try to Con Investors About Joining TON Investment

Fake news has been making rounds on Facebook about being part of the Telegram Open Network platform.

Kommersant, the Russian news outlet reported that ads were appearing that promoted a certain “Successful Investor” account on Facebook. Upon clicking the ad, you are directed to a website that purports to be Russian economics and technology media outlet RBC.

You will find a publication that resembles an investigation article; it has links to a website. The site has got a video that shows “unique scheme” of getting cash and also provides you with a registration form that is allegedly for TON platform.

A domain search service, Whois says that the domain for that website was registered back on Aug 30. The scheme promises users that they could take home $150 to $235 on a daily basis after they have given out their telephone numbers and email addresses. It is to be treated as a fraud because TON platform is yet to be unleashed.

However, as we drew close to the end of August during the $1.7 billion initial coin offering for Telegram, three anonymous investors said that Telegram was prepared to sell the foremost Gram tokens by October of this year.

TON Platform

Telegram unleashed its node software and TON testnet explorer on its website earlier this month. This is already 2 months ahead of the scheduled instigation of the digital currency (Gram).

Cointelegraph in April said that Telegram had granted access to a testing version that was to be discreet on the TON blockchain to several developers. The blockchain platform had extremely high transaction speed according to the anonymous test developers. This meant that the technology would be useful and ease out stress on lengthy transactions.

TON Labs, a software startup, is allegedly developing a solidity compiler for this technology. The Labs is currently managed and run by token offering investors for Telegram. Solidity compiler is a programming language that is also used in unfolding smart contracts on Ethereum platform. This, therefore, makes the Ethereum DApps compatible with the TON blockchain technology.

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Author: Daniel W

Canadian Citizens Charged by the US Government for Stealing Over 23 Bitcoin from Oregon Women

US watchdogs have got hold of two Canadians for a betrayal of $233,220 worth BTC with a fake HitBTC twitter account.

Scammers Pretended to be Customer Service Reps of HitBTC

Two citizens of surrey, a city of British Colombia, ostensibly stole 23.2 Bitcoins. The robbery was performed on a lady who happens to live in the state of Oregon.

As per the reports, the offenders used a fake account on twitter that goes by the handle @HitBTCAssist to mislead victims and making them believe that they are the customer service representative of the Hong-Kong based crypto exchange. The scammers kept on operating from 2017 to the month of August 2019.

By plying fake HitBTC account, professed cheaters apparently induced the lady to share her data with them to defalcate her E-mail alongside HitBTC and Kraken account.

Depleting the facts, the offenders moved 23 BTC from victim’s account at HitBTC to Karanjit’s Kraken account, who in response shared 11.6 in filched BTC to Jagpoor’s Kraken account. Karanjit and Jagpoor are the two scammers in question.

Various Accusations

Now the mobsters are fronting different illegal services and are compelled to use illicit services such as wire crime and money laundering.

Karanjit got arrested on entrance at McCarran Airport on July 2019 in Las Vegas.

At the beginning of this month, Bitmain, the most significant crypto mining equipment provider sued a crypto firm of using its identity to sell out the product the company in question was offering with the name being ”Bitcoin Cloud Minor.”

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Author: Ali Qamar

Quadriga’s Fraud is Surfacing as Founder Moved Customers’ Funds in his Personal Account

Quadriga’s Fraud is Surfacing as Founder Moved Customers’ Funds in his Personal Account
  • Ernst & Young report: Quadriga late founder Gerald Cotten created fake accounts
  • Over $200 million stolen from customers, 9,450 BTC, 387,738 ETH, and 239,020 LTC
  • QuadrigaCX’s late founder and CEO moved the funds of users to his own account on other cryptocurrency exchanges, according to the fifth report by Ernst & Young.

In a 70-day page report released Wednesday, one of the big four accounting firms claimed that Gerald Cotten, who died last December transferred millions of dollars in cryptocurrency out of customer accounts into others exchanges. These funds were used by Cotten to furnish his trading habits and personal lifestyle.

Cotten, it appears stole more than $200 million from his customers.

“Significant volumes of Cryptocurrency were transferred off Platform outside Quadriga to competitor exchanges into personal accounts controlled by Mr. Cotten,” the report said. “It appears that User Cryptocurrency was traded on these exchanges and in some circumstances used as security for a margin trading account established by Mr. Cotten.”

Fake Accounts, Poor Practices, Mismanagement

Cotten reportedly created fake accounts on Quadriga under multiple aliases and credited them with fake fiat that did not exist. This resulted in:

“inflated revenue figures, artificial trades with Users and ultimately the withdrawal of Cryptocurrency deposited by Users.”

EY further noted that in trading on competitor exchanges, Cotten incurred trading losses and incremental fees that adversely affects the crypto reserves of the exchange.

Between 2016-29, Cotten transferred 9,450 Bitcoin (BTC), 387,738, Ether (ETH) and 239,020 Litecoin (LTC) out of exchange’s accounts.

The report also detailed poor practices and mismanagement, noting that Quadriga had no contingency plan for the loss of its funds or the owner. The exchange even engaged in poor accounting practices and did not maintain any documentation.

EY Recovers $32 Million in Fiat

While Cotten had full access to the platform, the system didn’t register its activities within the site that EY says this approach could be made on Cotten’s request.

It has also been found that a significant amount of fiat currency was transferred to both Cotten and his widow. Per the report, the acquired assets of the pair worth about $12 million including a boat, aircraft, luxury cars and 16 properties in Nova Scotia.

As reported previously, Quadriga initially filed for creditor protection when the exchange lost access to its cold wallets and corresponding keys that held the assets owed to clients. This was after the death of co-founder Gerald Cotten.

So far, EY has recovered $32 million in fiat currency, with most of the funds collected from third-party payment processors and identified an additional $1 million in cryptographic competition.

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Author: AnTy