Bitfinex and Tether Lawsuit Analysis: The Severity of Roche Freedman’s Case

Stablecoin firm Tether and its associate exchange Bitfinex have received a suit filed by a New York-based legal firm Roche Freedman against Tether token (USDT, stating that it is engaged with market manipulation as the consequence of an unpublished paper. The case encloses that the above-mentioned firms were involved in a “sophisticated scheme” on account of “part-fraud, part-pump-and-dump, and part-money laundering.” We see a significant decrease of approximately 10% as of press time in the market value of the USDT/BTC trade pair because of this lawful dramatization.

Roche Freedman believes that the Tether’s case of all its Tether tokens (USDT) equaling to one U.S dollar is an unmitigated lie. According to the suit, it guarantees that the firm under question has consistently been giving huge amounts of unbacked tokens to not only control the local crypto market but also the digital resource showcase at large. The agents for Tether and Bitfinex gave separate articulations asserting that they have been made aware of an unreleased paper blaming them for controlling the digital currency market. The statements were made just a couple of days before the lawsuit was declared open. The organizations guaranteed that the claims were ridiculous and that if such an article is presented in court against them, they were going to protect themselves.

Regarding the matter of whether these recent charges are authentic, Braden Perry – a government investigation attorney calls for attention to the case that it does not uncover anything new given that the Justice Department and Commodity Futures Trading Commission (CFTC) have been investigating the two firms for quite a while. In any case, these are just claims and no defense has yet been witnessed. He accepts that no genuine damage should originate if the lawsuit is filed. But if any data that confirms these cases ends up open sooner or later, at that point Bitfinex and Tether will no doubt experience some genuine reputational harm.

Daniel Ameduri, writer of “Don’t Save for Retirement: A Millennial’s Guide to Financial Freedom,” was contacted by Conitelegraph to reveal some insight into the circumstances. He believes that the case will probably fail due to the absence of sheer insights.

Felix Shipkevic, an attorney told Cointelegraph that it wasn’t astonishing to find a legal suit against both Tether and Bitfinex considering the lawful interest these firms have received by the New York lawyers over the previous year. Not just that, Felix believes that it will be very hard for the firms to back their charges of crypto market control as they will need to show rationale to manipulate and gain from the damages.

The case thereby highlights that the stablecoin market is in critical need of specific guidelines that can keep such occasions from surfacing again later on.

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Author: Sritanshu Sinha

What Impact Will Samsung’s New Blockchain SSD Patent Have On The Crypto Mining Industry?

Samsung recently filed for a patent called Programmable Blockchain Solid State Drive and Switch. While not a lot of details about this new project are currently known, many people in the industry have already been pointing out how useful this new technology can be.

So, how will this new technology work? It can be used to mine crypto’s better than some ASIC miners, which are specialized mining devices created by crypto mining manufacturers. Their only purpose is to be used for mining so, if someone else creates a better technology, they will be obsolete.

Despite the obvious effects that the patent can cause, no one is actually sure that the final product will be ever developed. Sam Town, a crypto analyst, told Coindesk, who reported on this story, that parents can be a defensive weapon to stop other companies from creating a similar product.

They do not necessarily need to be created in order to defend your idea. It’s not that you want to use it, you just want other people not to be able to do it.

It is no surprise that Samsung is entering the crypto mining industry, as the company develops some of the chips which are used in ASIC miners. In fact, some people may even say that it took too long.

If a company with the size and power of Samsung enters the market, other companies will certainly have problems, especially if they are not so big and are very focused on mining only. Even big ones such as Canaan and Bitmain may be affected. It is important, however, to wait and see what will happen. It is impossible to measure the effect of some technology before it is on the market.

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Author: Ali Qamar

Multi-level Marketing Promoter of Bitcoin Funding Team and My7Network Will Settle With FTC

The United States Federal Trade Commission (FTC) has agreed to settle the charges it filed in 2018 against a pyramid scheme that involved 4 individuals. As part of the settlement, the promoters of recruitment-based cryptocurrency schemes are permanently banned from operating or participating in any multi-level marketing program. Additionally, they are supposed to pay a fine of $500,000.

The press release states that the defendants had the structure of the schemes made sure that few would profit. Most associates failed to get back their initial investments. YouTube, conference calls, and various social media platforms were used to source new victims.

It states:

“As part of their proposed settlements with the FTC, Dluca will pay $453,932, and Chandler will pay $31,000. Pinkston also agreed to a $461,035 judgment, which will be suspended upon payment of $29,491, due to his inability to pay the full amount. If he is later found to have misrepresented his finances, he will be required to pay the full amount.”

Thomas Dulca, Eric Pinkston, Louis Gatto, and Scott Chandler were behind a prominent pyramid scheme which was shut down in 2018. Under the names Bitcoin Funding Team and My7Network, the four fraudsters recruited participants to maintain the pyramid. The Commission vote approving the stipulated final order was 5-0. The FTC filed the proposed order in the U.S. District Court for the Southern District of Florida.

Operation crypto sweep is trying to make ICOs safer in the US and Canada. It comes as part of a joint effort between state and provincial securities regulators in the US and Canada. NASAA stated in August of 2018 that the operation had investigated over 200 ICOs in its first four months of activity.

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Author: Sritanshu Sinha

E.ON Energy Network Company Files for Blockchain Patent for a Data Sensor Collection Device

E-ON-Energy-Network-Company-Files-for-Blockchain-Patent-for-a-Data-Sensor-Collection-Device

E.ON Files For Blockchain Patent For A Data Analytics Device

Energy company E.ON has filed for a patent application for a blockchain-based data analytics device with the European Patent Office. The news was announced the company’s official website on July 19. The announcement on the website also gave an insight into how this device for which the company has filed the patent for works. The analytics device makes use of a number of sensors to collect user data which then can be sold to firms in need of those data. The user can supply data from a number of smart devices found in homes.

The user collecting the data would have the sole authority and only they can decide to sell a part of the data or the complete data set. E.ON claims that not even they can access the data from the device without explicit consent.

How Does The Analytic Device Safeguard User Data

As per the website description, the device is shaped in the form of a small box with a size similar to a €5 bill. The device makes use of blockchain technology and high-end encryption to ensure data security and privacy.

Matthew Timms, the chief digital and technology officer believes the device would become a trendsetter for users to save their own data and have the authority to sell it, instead of cooperations simply using it without their consent. He called it a new innovation and explained the reason behind it,

“Our Future Lab team has managed to combine blockchain and big data with a simple hardware solution. We want our customers to have absolute control over the analysis of their data. The ability to sell parts of these analyses within a more secure, traceable framework is completely new.”

The announcement also claims that a prototype of the device has passed the international safety standard test and received a certificate from German testing laboratory SGS. The company plans to start customer testing for the product by the year-end and officially release the product in the open market for sale by the next year.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Bitcoin Exchange Guide News Team

Mt. Gox Founder Jed McCaleb Stands Accused of Misrepresentation in New Lawsuit

Mt. Gox Founder Jed McCaleb Stands Accused of Misrepresentation in New Lawsuit
  • Mt. Gox filed for bankruptcy in 2014 after a hack worth millions of dollars.
  • Two former traders are going after the former CEO for misrepresenting the issues faced by the exchange.

Mt. Gox is one of the most notable failures in the cryptocurrency industry, and the troubles were thought to be over a long time ago. However, for the founder, the troubles are still present. Jed McCaleb is now being faced with a lawsuit, based on his mishandling of the exchange.

Reports from CoinDesk confirm that that the legal action was filed on May 19th by Joseph Jones and Peter Steinmetz, adding that the former CEO knew about the “serious security risks” imposed on the exchange at the end of 2010 and the beginning of 2011.

The lawsuit was filed by two former traders of Mt. Gox, who say that McCaleb was not truthful about the financial situation of Mt. Gox after the hack occurred. The court filing said that the defendants were made aware of the risks that Mt. Gox took that let hackers get into the exchange in the first place. The filing adds:

“Rather than secure the exchange, McCaleb sold a large portion of his interest in the then sole proprietorship and provided avenues to the purchasers to cover-up the security concerns at the time without ever informing or disclosing these issues to the public.”

Towards the end of 2011, Mt. Gox was the largest Bitcoin exchange for their trading volume when it was hacked. The attack took 850,000 Bitcoin with it, which was valued at $400 million at the time.

However, this theft was preceded by a missing 80,000 Bitcoin on the exchange, which was not as highly publicized. As a result, the exchange ended up shutting down all trading operations by 2014 when it filed bankruptcy. At the time, Steinmetz said that he personally owned 43,000.

The complaint claims that McCaleb decided to sell most of his interest in Mt. Gox to Mark Karpeles, rather than have the publicity around the lack of refund to users. Court documents indicate that Karpeles was placed in charge of the exchange in 2011 and happened to hold 88% of the shares for the exchange.

In comparison, McCaleb only held 12%. He was charged with data manipulation in the exchange, prosecuted in the courts in Japan, and found guilty.

Despite being eight years since the hack, there are still creditors of the exchange that are working to get back the funds that they lost. However, the trustee of the exchange was ultimately accused of taking the wrong steps when they liquidated the assets, even extending the deadline in April to continue their efforts.

McCaleb appears to be doing rather well for himself at the moment. After all, he ended up founding Ripple, and he co-founded Stellar, which are both flourishing. Unfortunately, no matter the progress that he has made since the travesty of Mt. Gox, these problems seem to keep following him.

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Author: Krystle M