Binance Charged with Embezzling $860k Worth of Crypto Funds

Binance US Considers 18 new assets

Crypto exchange Binance was accused of freezing an account worth around $1 million. The owner accuses the platform of embezzlement, but the company says it simply followed the requirements of the South Korean police.

Binance Blocks Account Worth Almost $1M
In November 2018, Binanace blocked an account that had over $850,000 worth of crypto funds. The owner claims that the exchange led by Changpeng Zhao (CZ) stole the money, Russia-based crypto news site Forklog reports, citing HackControl.
The account owner claims that Binance froze crypto funds worth $$858,999 at the time. Specifically, Binance blocked:

4.5609 BTC (worth $28,610 at the time and $33,416 as of today);
1,600.215 ETH ($342,446 at the time and $271,159 as of today);
4,290.39 ETC ($40,244 at the time and $24,582 at the moment of blocking by Binance);
726 LTC ($73,763 at the time and $55,000 as of today);
169,646 IOTA ($98,395 at the time and $28,619 as of today);
33,895.14 EOS ($187,780 at the time, $92,194 at the moment);
810 807 TRON ($16,216 at the time and $11,002 as of today);
365 ZEC ($29,557 at the time, $8446 as of today);
128 XMR ($14,336 at the time);
6 DASH ($26,000 at the time);
765 BCH ($482 at the time);
1170 USDT.

What Happened?
Binance required additional KYC/AML verification procedures and an explanation regarding the origins of the funds. The exchange said that the account was blocked at the request of the South Korean police, though the user claims that he had not received any complaints from South Korean authorities.
It all started with an Ethereum transaction. Binance turned its attention to 2,844.881 ETH transferred to the trading account. While the owner claims that he had explained the origins of the funds, Binance insisted on suspension, citing a request from the South Korean police.
Binance spokespersons told ForkLog that a portion of ETH transferred by the user had been stolen from a Korean project on November 8, though it didn’t disclose its name. Binance said that it eventually transferred the amount to the South Korean police.
In April last year, Ukrainian law enforcement spoke to Binance, to which the exchange responded with the same explanation.
However, the user cannot find any ruling by the South Korean police. The latter denies that they made any claims about the Binance account owner.
User’s correspondence with South Korean police. Source:
Also, the police stressed that they hadn’t asked to freeze or transfer any crypto funds, the user says.
He added that he sent the correspondence with the South Korean police to Binance, but the exchange is unresponsive. The user concluded:
I have every reason to believe that Binance misappropriated my money for itself. Communication with them continues from November 21, 2018. It has been 18 months already.
It seems that it’s not the first incident with the exchange. HackControl discovered similar cases whose damages total $3 million. The users will launch a class action lawsuit against CZ’s company.
Interestingly, Binance and 10 other crypto firms have been recently accused of selling unregistered securities on the US territory.
Do you think Binance’s move was illegal? Share your thoughts in the comments section!

Images via Shutterstock, ForkLog

Source: Bitcoininst

Ripple Co-Founder Unlocks 63.7 Million XRP From Settlement Wallet

Ripple XRP

Guess who’s at it again moving the latest part of his Ripple settlement? Co-Founder Jed McCaleb just transferred 63,704,590 XRP ($12,293,769) to his personal wallet. XRP holders brace for the possible incoming dump.

Former Ripple Founder’s Massive XRP Transfer
Late last night, Whale Alert flagged up the gigantic XRP transfer from Jed McCaleb Settlement to Jed McCaleb’s wallet. More than $12mn worth of XRP could be getting ready to be dumped on the market.

63,704,590 #XRP (12,293,769 USD) transferred from Jed McCaleb Settlement to Jed McCaleb wallet
— Whale Alert (@whale_alert) April 7, 2020

The crypto transactions tracker also added that this transfer was just part of the settlement between McCaleb and Ripple:
From his account Tacostand the #XRP periodically gets sent to the account rLkM…Q1A where it is being sold

This transfer is part of the settlement between Ripple and Jed McCaleb. From his account Tacostand the #XRP periodically gets sent to the account rLkM…Q1A where it is being sold.
— Whale Alert (@whale_alert) April 8, 2020

Just when Ripple’s token looked to be recovering and the company announced a new exchange listing, XRP holders are once again faced with the continued problem of Ripple’s over-supply and Jed McCaleb dumping on them.
The tweet alert was unsurprisingly met with the usual fury of holders and disdain from XRP opponents. The consensus was pretty much the same, however, summing it up in two words:
Dump incoming
Crypto’s Best-Known Whale?
McCaleb joined Ripple in 2014 and was the main mastermind behind the creation of its XRP token. But he later left the company to start Stellar and agreed upon a significant settlement of XRP to be paid out over time.
As pointed out by Whale Alert, this is then usually sold on the open market to the frustration of XRP holders. By the conditions of the contract, however, McCaleb may only sell a certain amount and is obliged to do so with caution liquidating at average market prices. So, does his continued selling of tokens affect the price of XRP?
According to a blog post by Whale Alert:
Compared to the total trade volume per day, the amount he is selling seems insignificant. For instance, from the 1st to the 7th of June 2017, he sold a total of 2.5 million XRP for $741,000 USD. The total trade volume that week for the XRP/USD pair on Bitstamp alone was 127 million XRP, but volume is not a good indicator for how much the market can absorb.
The post goes on to say that there is not enough data to confirm whether his regular dumping has an effect on the price. However, since he is exclusively selling XRP:
He is adding to the net amount available. It is also important to note that it seems that the profits are being cashed out directly through Bitstamp and we found no evidence that any of it is being reinvested into the crypto market.
Do you think Jed McCaleb will dump his latest tranche of XRP tokens? Add your thoughts below!

Images via Shutterstock, Twitter @Whale_Alert 

Source: Bitcoininst

Pro-Bitcoin Jack Dorsey Just Became a Global Super Hero

jack dorsey bitcoin

Bitcoin advocate Jack Dorsey just won the admiration and praise of more than just his Twitter followers. Yesterday, the Square and Twitter CEO announced that he was allocating $1B (28% of his wealth) to fighting the global COVID-19 pandemic.

Bitcoin Advocate Elevated to Super Hero Status
Jack Dorsey has always had kudos in this space. His financial services and mobile payment firm Square allows for Bitcoin transactions. He enabled a ₿ symbol on his social media platform Twitter, and he’s repeatedly spoken out as one of Bitcoin’s biggest advocates. But now, he’s taken his superb human being status to a whole new level. He’s donated 28% of his wealth to fund global COVID-19 relief.

I’m moving $1B of my Square equity (~28% of my wealth) to #startsmall LLC to fund global COVID-19 relief. After we disarm this pandemic, the focus will shift to girl’s health and education, and UBI. It will operate transparently, all flows tracked here:
— jack (@jack) April 7, 2020

He went on to say that after the pandemic was disarmed, the rest of the funds would go toward girls’ health and education and UBI. He also provided a Google document where people can track how the money is spent and can see every movement completely transparently.
Further down in his Twitter feed, he justified his reasons for focusing on girls’ education and UBI. He said:
I believe they represent the best long-term solutions to the existential problems facing the world. UBI is a great idea needing experimentation. Girl’s health and education is critical to balance:
He also stated that it was important to make the process transparent so that “so I and others can learn.” He concluded by saying:
Why now? The needs are increasingly urgent, and I want to see the impact in my lifetime. I hope this inspires others to do something similar. Life is too short, so let’s do everything we can today to help people now.
Setting a Global Example
Dorsey’s tweet garnered thousands of likes and comments, perhaps most notably, a thank-you from ex-Democratic presidential candidate Andrew Yang who was a proponent of a Universal Base Income (UBI) of $1,000 for every American a month. He was also Bitcoin’s choice with high knowledge and support of the cryptocurrency who took the debate to the highest level. He simply said:
Thank you Jack! This is a spectacular commitment

Thank you Jack! This is a spectacular commitment.
— Andrew Yang (@AndrewYang) April 7, 2020

Binance’s CZ also pointed out that Dorsey was a shining example for the next generation of “billionaires.” They should not be measured on how much they own, he said, but by how much they give:

The next generation of “billionaires” are not measured by how much they own, but how much they give. Respect @jack!
— CZ Binance (@cz_binance) April 8, 2020

With all the disinformation, uncertainty, and fear gripping the world right now, it’s comforting to know that there are people like Jack Dorsey in it. Willing not only to step up and take action now but to see their commitment through experimenting with new financial policies. Respect.
What do you make of Jack Dorsey’s huge generosity? Add your thoughts below!

Images via Shutterstock, Twitter @cz_binance @Jack @Andrew Yang

Source: Bitcoininst

Bitcoin Cash Jumps 7.7% as Halving Arrives, BTC Rally Next?

Bitcoin cash halving

Bitcoin is fast approaching the much-awaited halving event, but its main forks will start first. BCH will reduce its block reward today, while BSV will do this later this week.

BCH, BSV Price Hit 1-Month High
The Bitcoin community is preparing for one of the most important events that takes place once every three or four years – the halving. After block 630,000, Bitcoin miners’ reward will be reduced from 12.5 to 6.25. The resulted scarcity is expected to push prices to new highs.
Bitcoin’s main forks, BCH and BSV will start earlier. Bitcoin Cash will slash the reward later today. At the time of writing, 629,933 have been mined so far.
The price of BCH is already surging, gaining 7.70% during the last 24 hours, to $274, as per Coinmarketcap data. The BCH/BTC ratio is also increasing, hitting the highest level since March 7. While the halving event will likely impact the supply/demand ratio in Roger Ver’s cryptocurrency, about a third of BCH coins haven’t been moved since the fork, which makes it scarcer than thought, at least for now.

What about Bitcoin Cash? Circulating supply is generally reported as 18.4M, but is it really 12.4M? Since 6M $BCH has never moved since the fork, should they be considered as circulating supply?
— (@coinmetrics) April 6, 2020

Elsewhere, Craig Wright’s BSV will experience its halving event tomorrow or on Thursday. However, the coin is performing even better than BCH for now, as it jumped 13% in the last 24 hours, making it the second-best performer among top 100 coins. BSV is now trading at $213.

The halving of BCH and BSV is happening earlier than in BTC because BCH had a different blockchain algorithm at one point, which eased the difficulty of mining. BSV forked from BCH in November 2018. Some analysts expect the halving to be a disaster for BCH, suggesting that many will move Bitcoin.
Will Bitcoin See Similar Price Surge in May?
It’s interesting to observe the price rally in BCH and BSV. It is very likely that Bitcoin will experience the same. The media attention and the general fuss about it will probably support a rally, even though some investors claim that the halving has been already priced in.
But Bitcoin might turn bullish even before halving, as BCH and BSV miners will move to BTC for a while given that the two are less profitable now.
Besides, Bitcoin will benefit from its safe-haven status amid the market turmoil and the Fed’s cash injections.
Bitcoin halving is expected to happen on May 13. Currently, the cryptocurrency is trading below $7,350, gaining 0.60% during the last 24 hours.
Do you think Bitcoin will surge next month? Share your expectations in the comments section!

Images via Shutterstock,, Twitter:@coinmetrics

Source: Bitcoininst

Stock Rebound is Trap, Go Bitcoin Instead: Galaxy Digital CEO

With bitcoin price registering gains of over 20% in the last 24 hours, many holders are getting excited. But, it seems that the jury is still out on just how positive this latest pump is. Could the bulls be running into a trap?

Billionaire Michael Novogratz said that the recent rebound in stocks might lead to another decline soon. Instead, he is confident in Bitcoin and gold.

Bitcoin Will Be Among Ideal Safe-Havens
Novogratz, CEO of crypto merchant bank Galaxy Digital, told CNBC’s “Squawk on the Street” that investors shouldn’t be misled by the recent spike in stock prices. Instead, buying non-stock assets, including cryptocurrency and gold, would be the right approach.
The US stock indexes have been bullish amid cautious optimism around the coronavirus pandemic. However, Novogratz doesn’t buy it.
I think this is short covering. I think one or two more days and people will sell into it, the billionaire said.
He stressed that he was still bullish on Bitcoin, even though the largest cryptocurrency experienced one of its worst crashes last month. The price has recovered a big chunk of its losses since then however, and is currently trading above $7,300. Novogratz added:
I have a big bitcoin position. I continue to add to it partly because I think this is an amazing environment for both being long gold and long Bitcoin.
He suggested that the fiat supply is growing on steroids, as the Fed is pumping trillions to save the US economy.
Money is growing on trees right now. And I learned when I was a little kid that money really doesn’t grow on trees. And when you have a global, money printing orgy going on… at one point that comes home to roost, and so I think hard assets are going to be a big buy, Novogratz concluded.
Should You Listen to Novogratz?
Galaxy Digital boss has always been bullish on Bitcoin, so there is nothing unusual about his latest comments. The interesting thing about Novogratz is that he has big connections on Wall Street, and his voice might reflect the mood of some of his fellows from the financial elite.
For example, the billionaire is a member of Kappa Beta Phi, a very secretive Wall Street organization that has been around for about a century. The society, whose recruits are dressed in drag and ridiculed by veterans, includes top executives and officials like former New York City mayor Michael Bloomberg and BlackRock CEO Laurence Fink. Interestingly, BlackRock was hired by the Fed to buy corporate bonds and other assets on behalf of the US Treasury.
Do you think Bitcoin will update the ATH by the end of this year? Share your thoughts in the comments section!

Image via Shutterstock

Source: Bitcoininst

Canaan Crypto Mining Firm Lawsuit to Get Underway Next Month

canaan crypto Mining Texas

As litigation begins for crypto mining equipment manufacturer Canaan over its IPO, shareholders must decide on the lead plaintiff by May.

The Crypto Class Action Lawsuit Against Canaan IPO
In an official release today, leading law firm Robbins Geller Rudman & Dowd LLP announced that the decision deadline to choose the lead plaintiff in the Canaan Inc. (NASDAQ: CAN) securities class action lawsuit will be May 4, 2020.
That is, Canaan shareholders have until that date to decide who will represent their interests in the case. In November 2019, Bitcoinist reported that the Chinese bitcoin mining hardware maker’s plans to raise $400 million through the public sale of its stocks may be a bumpy ride.
Bumpy, indeed, it has been. A securities class action lawsuit was filed later that month in the District of Oregon charging Canaan and certain members of its team with violations of the Securities Act of 1933 over its IPO.
The lawsuit alleges that Canaan’s Registration Statement for the IPO was false. It was misleading to investors, and it withheld important information. For example, the relationship between Canaan and Hangzhou Grandshores Weicheng Technology Co., Ltd., the company’s financial health, and several distributors the company had previously worked with that were deemed suspicious. 
Added to that, not all of the company’s clients pertained to the Bitcoin mining industry. In fact, Canaan’s largest clients were unlikely to be repeat customers, raising questions about the sustainability of its customer base. By Feb 2020, Canaan’s ADSs had dwindled to almost half their IPO price at $4.66 per share.
Shareholders Must Decide on the Lead Plaintiff in the Case
According to the Private Securities Litigation Reform Act of 1995, any Canaan investor who purchased its securities before the IPO can seek to be appointed as the lead plaintiff in the lawsuit. This is the person who acts on behalf of all other shareholders during the case. The lead plaintiff can decide on which law firm represents the company and is not restricted in sharing in any future profits.
Any shareholder wishing to be considered for the job, can visit Robbins Geller Rudman & Dowd LLP’s website here or call Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at Keep in mind the deadline is May 4.
What do you think the outcome of the Canaan crypto lawsuit will be? Add your thoughts below!

Images via Shutterstock

Source: Bitcoininst

Bitcoin Price Breaks $7.3K But Analyst Sees $13.8K Soon

Bitcoin Is Re-Entering A Bull Market, Fundstrat’s Tom Lee Confirms

Bitcoin price has been rallying on Tuesday, but that’s only the beginning, according to a market analyst. His technical analysis suggests that might update the 12-month high by June.

Bitcoin Price Rally Will Get Steeper
Bitcoin almost touched $7,500 earlier today, updating the highest level since March 12. On that day, the crypto market crashed, with Bitcoin breaking below $4,000 to the lowest level in a year. The largest cryptocurrency is about to double its value from March low, but it can go further than that.
A crypto trader shared his view on Twitter, predicting that Bitcoin price might touch $13,800 by the end of June. However, he stressed that it’s impossible to accurately foresee BTC’s price, which is true.

It’s never possible to make a 100% accurate prediction of how price will move in the future
But if I had to visualize what I’d think is most likely in to June, this is it
— //Bitcoin 𝕵ack (@BTC_JackSparrow) April 6, 2020

According to his technical analysis, Bitcoin will initially consolidate above $9,100 by the end of this month. While this is plausible, the cryptocurrency has to go through a small test in the coming hours, as it just formed a double top. The latter is a bearish pattern that often precedes a trend reversal.
If the leading cryptoasset manages to break above $7,500, it’s fair to say that $9,000 will be the next strong resistance test. At the beginning of March, Bitcoin price started to suddenly crash specifically from that level, following the stock market collapse amid the coronavirus panic.
There Are Enough Fundamentals to Support Bullish Stance
Besides the bullish reasons explained by technical analysis, Bitcoin has even more support from the fundamental side. First, stock markets returned to growth amid hopes that the pandemic has just reached a peak in Europe, as Italy, Spain and the UK reported fewer new cases.
Also, the Fed has pumped trillions into the foreign exchange market, buying government and corporate bonds to support the economy. This excess of cash will be reflected in the BTC price sooner or later.
Finally, an aggressive bullish rally could trigger the FOMO effect, which could send Bitcoin to new 12-month highs.
Do you think Bitcoin has the potential to update the 12-month peak? Share your thoughts in the comments section!

Image via Shutterstock, Twitter:@BTC_JackSparrow , BTC/USD Charts by TradingView

Source: Bitcoininst

Ethereum Surges 14% Today, Here’s 3 Reasons Why

ethereum crypto price taps $9k

Ethereum price has surged in value over the past week, posting its largest gains in the last twenty-four hours. Several notable factors have contributed to this rise, which could have strong effects on the platform moving forward.

Over the past year, decentralized finance (DeFi) has emerged as a major element of the blockchain space. DeFi includes any project that uses smart contracts to lend, hedge, or swap assets. Whereas there are many blockchain platforms capable of performing these functions, Ethereum has established a dominant position in the sector..
Presently more than USD $745 million is locked up in DeFi, almost all of it on the Ethereum network. This is more than double the number from one year ago, and although it declined in March, it is once again growing. There is no doubt that investors are taking notice, and understand that this has a strong potential to move Ethereum into the mainstream financial markets.
Maker is by-far the most popular DeFi platform, which only adds to Ethereum’s strength. However, many more DeFi projects are emerging. Also, Chainlink is the most popular oracle network, which also operates on Ethereum and is becoming a crucial player in many DeFi projects.
As prices have recovered, so too have trading volumes. Most notably, Ethereum has seen a significant spike in futures trading over the past twenty-four hours. SkewAnalytics has just posted data on Twitter showing the close correlation between Ethereum’s present price gain and futures volume.

Futures volumes doubled vs average of last two weeks
— skew (@skewdotcom) April 7, 2020

OkEx is clearly leading the increase and was recently announced as the largest derivatives exchange by volume last month, indicating a strong interest for Ethereum trading in Asia.
It is worth noting that big jumps in futures volume generally leads to volatility, and a price correction could rapidly occur if too many investors bet long on Ethereum’s price.
In July the #2 cryptocurrency is slated to undergo its largest upgrade to-date. Ethereum 2.0, named “Serenity,” will transition the platform into a proof-of-stake consensus architecture. It will also play a key role in Ethereum’s scaling solution, thus enabling vastly more transaction capability.
In February the development team held a Reddit AMA where they expressed great confidence in Serenity launching on time. Once active, Ethereum 2.0 is expected to radically transform the entire platform ecosystem and open the door to mass use on a global scale. It thus stands to reason that investors are taking advantage of the present price before what they expect will be a major jump in value.
What do you think is the reason for the latest Ethereum price surge? Add your thoughts below!

Images via Shutterstock, Twitter @skewdotcom @

Source: Bitcoininst

Ripple’s XRP Scores New Crypto Exchange Listing

XRP price Ripple

With Ripple’s XRP posting significant gains today, things could be looking up. XRP just scored a new listing on top-50 cryptocurrency exchange WhiteBIT paired with BTC and USDT.

Things Looking Up for XRP?
Ripple’s XRP suffered a catastrophic 2019 as the worst-performing of the top 10 coins last year, finishing the year at less than 20 cents a coin. But, in 2020, XRP seems to have followed the trend of most major coins.

It started out recovering slowly, then gaining momentum before suffering the extreme market volatility in March. Now, at still just below 30 cents, XRP is looking promising with an 8.49% gain over the last 24 hours.
What’s driving XRP’s recovery? Well, likely several factors, but a new exchange listing will certainly be helping. This weekend, WhiteBIT exchange released the announcement that XRP would be joining its exchange.

Good news! $XRP is joining our exchange! It is paired with BTC and USDT.
— WhiteBIT (@WhiteBit6) April 4, 2020

Launched in Dec 2018, WhiteBIT has a solid European base. It offers low trading fees at 0.1% and both crypto to crypto and crypto to fiat transactions. It also holds required European Exchange and Custody licenses, and allegedly meets all KYC and AML requirements.
Traders on this exchange can enjoy instant transactions, have the possibility of staking USDT while making up to 9% interest. The exchange also offers a number of trading tools and additional features. WhiteBIT also has margin trading listing as “coming soon” and with the popularity of XRP futures, this could bring in more customers.
RippleNet Tech Continues to Make Waves
Despite fears of central bank digital currencies threatening Ripple’s payment technology, Ripple Labs continues to find new use cases for its RippleNet technology.
With more than 300 partners including Money Gram, American Express, and Santander bank, RippleNet has been gaining traction.
It has recently added the Southeast Asian market to its growing list signing partnerships with major remittance institutions in Thailand.
Lawsuits and controversial dumping issues aside, a new listing is a bullish sign for XRP which will hopefully see a better performance in 2020.
What do you think is driving the XRP market today? Let us know in the comments below!

Images via Shutterstock, Twitter @WhiteBit6

Source: Bitcoininst

Bitcoin Google Searches Fall to Pre-March Levels

bitcoin searches fall

The number of Google searches for Bitcoin has decline close to pre-March levels, suggesting that the interest in the cryptocurrency could be declining despite its safe-haven potential amid the looming crisis.

Investors Worried About by Market Crash
Google Trends data shows that the interest in Bitcoin has gradually declined worldwide to previous levels. Last month, Google searches for the term “Bitcoin” skyrocketed and almost touched a 12-month high on March 13, the day after the stock markets crashed to multi-year lows. The collapse was a result of the coronavirus panic and the aggressive lockdown measures imposed by governments across all continents, including in Europe, Asia, and North America.
People were probably searching for a way to preserve their savings, given that many have lost their jobs. In the US alone, the applications for unemployment benefits surged to 6.65 million in the week ending March 28, which is a record high and an unprecedented figure. For example, previous record highs were way below 1 million.

However, despite surging interest in Bitcoin, many were probably disappointed to see that the largest cryptocurrency also crashed, losing half of its value.
While the Bitcoin price has recovered most the losses, the interest in the cryptocurrency continues to decline to pre-March levels, at least according to Google Trends.

Bitcoin Will Prove to Be a Reliable Safe Haven
However, despite the potential declining interest in the cryptocurrency at the moment, Bitcoin will likely prove itself as a safe haven soon when prices of goods and services soar amid US dollar inflation. The Fed is now pumping cash like crazy, and this portion of new money will be reflected in prices soon. Obviously, Bitcoin will also get a boost from this as well.
The upcoming halving event and the increasing interest from many new investors will support the cryptocurrency.
In fact, Bitcoin is already rallying right now, gaining over 9% over the week.
Do you think more people will invest in Bitcoin to preserve value? Share your expectations in the comments section!

Images via Shutterstock, Google Trends, Business Insider

Source: Bitcoininst