The Big Winners: $145 Million Worth Of Bitcoin Transferred ...

US/UK/EU BTC Traders need more legal & regulatory advocacy

The legal compliance issues that are cited as the reason for our governments tormenting us and regulating us to death are actually in fact pretty goddamn complicated. A lot of it is about the Patriot act and them basically treating us like criminals and holding bitcoin to a double standard compared to cash.

Soon US citizens are not going to have access to any offshore leverage trading, it's quickly moving towards that with the increasing regulation. And yes there will be those of you who complain about leverage, but realistically, any trader who is a full time professional trader will simply move back to legacy if they lose leverage on btc. I have to focus on my career, I will move back to commodities, forex, and energies in a heart beat if I lose Mex to KYC. That's just the reality of it.
The Dutch are talking about effectively banning foreign firms from offering derivatives and services to dutch citizens. Multiple EU countries are talking similar things, and proposing massive deleveraging to comply with the ESMA laws. The goddamn FCA in the UK wants to outright ban bitcoin derivatives, which is insane.

From a legal standpoint we are just getting pummeled. States in the west are absolutely using double standards legally and punishing bitcoin traders in retail, while allowing complex legal institutional loopholes to remain open that allow hedge funds, banks, institutions, and family offices and ultra high networth individuals to continue to trade bitcoin on leverage and with special perks. If you think that type of double standard classist elitist thing is good for the fundamental nature of bitcoin, then I don't know what rock you've been living under, that's not how bitcoin is suppose to work man.

Kraken, Bitfinex, Binance, and FTX do not offer to US customers. Binance kicked us off, bitrrex delisted half of its coins, Circle left. Who's calling their representative? Who's calling the CFTC? Who's complaining? I have, I have called and faxed. But I seriously feel like we are getting steem rolled with no fight being put up.
submitted by samdane7777 to Bitcoin [link] [comments]

TestGains

Crypto News Summary- October 10
🔹 General News: 💪 Bitwise still bullish as it plans to refile its Bitcoin ETF application 🔥 CME Group expects its new Bitcoin options to be highly popular in Asia 💥 Crypto liquidity provider B2C2 has launched a gold derivative, settled in bitcoin 🚀 CFTC says Ether $ETH is a commodity, and Ether futures are next 🙅‍♂️ Alipay denounces Bitcoin transactions after Binance adds it into its fiat gateway 🥂 Skew and CryptoGarage settle S&P 500 derivatives on Bitcoin Blockchain 💸 Grayscale tempts high rollers with zero-premium GBTC
🔹 Coin Specific News: 🤝 Coinbase Custody to support Telegram Open Network, Solana & Orchid
🔹 Exchanges: ❌ OKEx suspends trading support for Monero, DASH, Zcash, Horizen and Super Bitcoin 📱 Coinbase launches a mobile platform for its Coinbase Pro users
💡 Did you know A brute-force attack occurs when an attacker submits many passwords or passphrases with the hope of eventually guessing correctly.
🔹 Cool tech fact: In mobile games, 60% of all revenue came from only 0.23% of players.
💬 Quote of the day: "Life is 10% what happens to you and 90% how you react to it." – Charles R. Swindoll
🔹 Brought to you by @GainsANN
submitted by gainsTest to CryptoNews [link] [comments]

Have You Been Able to Get A Hold of a Crypto Policy Maker/Lobbyist/Legislator?

I thought about linking or sharing a legalish letter I wrote the CFTC in the hopes to gain some exposure and eyes on the issue, but it would go over the heads of a lot here and wouldn't get to the point.
I don't know how else to make this clear, anyone who is a trader in crypto who is american who relies on leverage and complex trading and hedging and management of their portfolios, we are as American Investors, and American US Citizen completely under threat regulatoryily from our own SEC and CFTC and a hostile Trump administration.

They are fully aiming to shut us out of foreign exchanges. They are actually taking a more harsh stance than they did with retail forex. They are basically going to break the industry at this point. A industry without derivatives is not sustainable, it's going to wreck the domestic market and push US citizens into other asset classes.

They have no plans of offering us a fair market or letting a domestic exchange provide proper leverage. Their motives for shutting down binance and all the other exchanges to US citizen are ulterior, bad faith, anti competitive, and absolutely draconian. Don't tell me, and don't let them tell you that it is to protect American investors. that is profound bullshit.

Every single asset class has derivatives. Everything that isn't a security can and is highly leveraged in order to manage portfolios. And Securities have Options. Modern finance cannot work without this. The US governments refusal to allow domestic American derivatives is unacceptable. Their neglect to this market and hyper regulation and lack of clarity is unacceptable. If you know ANY pro crypto policy maker and legislator, and lobbyist please reach out to them about the regulatory overreach and please list their name in this thread. You guys need to take this serious.

Stop running on and on about the meme leverage of Bitmex. This isn't about that. Study other finance and asset classes. This is about Bitcoin and Crypto having a fair normal comparative market infrastructure to all the other commodities and futures in the United States. And we should be allowed to use foreign brokers. This ECP shit has to end. IF you can get a foreign stock account, a foreign commodity account in Europe with KYC, it should be that way with crypto. this is unfair bullshit and unfair discrimination of Crypto just like retail forex, under the same rules. The US government is unduly applying Forex regulatory law to Bitcoin. That's why we get banned from every foreign exchange, thats why we aren't allowed. Because of Dodd Frank Act.
submitted by samdane7777 to Bitcoin [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to Buttcoin [link] [comments]

Cryptocurrency and Blockchain – Industry News – (06.28.19 – 07.05.19)

Total Market Cap, as of 07.05.19 at 12:00pm (PST): U.S. $320,641,857,854 (-5.35%)

Missed last week’s update? Click here

STORY OF THE WEEK

• A Cloudflare outage which occurred at 10:00AM EST caused several cryptocurrency websites to experience downtime. Websites impacted by the outage include: Coinbase, CoinMarketCap, Poloniex and U.S. based exchange itBit.

CRYPTOCURRENCY TRADING SERVICES

Binance announces launch of futures trading platform supporting BTC/USDT contracts with up to 20x leverage.
BitFlyer resumes onboarding for domestic users after halting registrations for over one year.
Binance lists Dogecoin (DOGE), scheduled to go live for trading on July 5th, 2019 at 12:00pm (UTC).

REGULATION

• Cryptocurrency exchange ErisX has obtained a Derivatives Clearing Organization (DCO) licence from the U.S. Commodity Futures Trading Commission (CFTC).
• Members of the U.S. House of Representatives issue a letter to Facebook calling for a moratorium to halt development associated with Libra.
The Financial Conduct Authority (FCA) considers an outright ban on the “sale, marketing and distribution to all retail consumers” of cryptocurrency-based derivatives.

TECHNOLOGY

• A security vulnerability has been found on Monero that could allow a hacker to allegedly send counterfeit XMR to an exchange in exchange for legitimate XMR. The vulnerabilities have since been resolved.
Nestle announces a pilot program that will leverage blockchain to track the supply chain of various products.
Fujitsu unveils a blockchain-powered identity verification system for online payments, providing a framework to rate trustworthiness for online transactions.

INSTITUTIONALIZATION

• Latin America’s largest standalone investment bank, Banco BTG Pactual SA has teamed up with Dalma Capital to sell over U.S. $1 billion worth of security tokens issued on Tezos. The partnership aims to transform real estate into tradable digital contracts live on a blockchain.

PEOPLE

• Former head of XRP institutional Liquidity at Ripple, Catherine Coley has joined Binance.US as its CEO.

TWITTER

@Rhythmtrader – “$124 billion dollars of wealth has been stored on the bitcoin network, and not withdrawn, for an entire year. Over 10.5 million Bitcoin hasn't moved in one year. That's about 60% of all bitcoin. Hodling will turn bank accounts into the landlines of today, nonexistent. 🔥”
@lopp – “There's one perspective that Bitcoin need not do anything else in order to become a global reserve currency: all it needs to do is nothing as it watches other systems inevitably fail under the follies of fickle fallible humans.”
submitted by Edmund_N to CryptoMarkets [link] [comments]

Cryptocurrency and Blockchain – Industry News – (07.12.19 – 07.19.19)

Total Market Cap, as of 07.19.19 at 12:00pm (PST): U.S. $281,949,000,890 (0.04%)

Missed last week’s update? Click here for a summary

STORY OF THE WEEK

· The U.S. Department of the Treasury holds a press briefing addressing regulatory issues associated with cryptocurrency and Facebook’s upcoming cryptocurrency – Libra.

CRYPTOCURRENCY TRADING SERVICES

· Hacked Japanese exchange BITPoint announces reimbursement process to an estimated 50,000 users who lost funds in its recent hack on July 12th, 2019.
· Coinbase has imposed a minimum deposit of 1,000 British Pounds for users based in the United Kingdom. Funds must be sent via SWIFT, and fiat onramps using Faster Payments has been temporarily suspended.
· Binance Jersey, the European subsidiary of Binance has launched Binance GBP (BGBP), a British pound-pegged stablecoin.

REGULATION

· The New York Department of Financial Services (NYDFS) has granted two virtual currency licences of the subsidiaries of upcoming derivatives exchange Seed CX. The two being Commodities Market LLC and Zero Hash LLC.
· The U.S. Commodity Futures Trading Commission (CFTC) launches an investigation on cryptocurrency derivatives exchange BitMEX on allegations of servicing U.S. customers.
· The Financial Markets Authority of France looks to new set of regulations on digital assets, scheduled to be released by the end of the month (July) though a concrete date has not been specified.
· From a court ruling, The Hangzhou Internet Court has recognized bitcoin as virtual property and as such legally protected by laws of People’s Republic of China.

TECHNOLOGY

· On July 17th, 9:45 UTC, privacy coin Grin introduced a hard fork upgrade that will increase miner decentralization and usability.
· The operators of Tether have accidently minted and subsequently burned 5 billion USDT tokens. This occurred during the swap of 50 million Omni-based USDT tokens and migrating them to the Tron blockchain.
· At block height 570,000, privacy focused cryptocurrency Zcash has forked into a new blockchain network dubbed Ycash.

INSTITUTIONALIZATION

· No significant developments this week pertaining to institutional players in the space

PEOPLE

· Former CEO of WEX, Dmitri Vasilev was arrested in Italy on a pending criminal investigation of a cryptocurrency exit scam.

TWITTER

· @Rhythmtrader: Reminder: The halvening is in ~300 days. Bitcoin's inflation rate will be cut to 1.8%. Why is that important? It will be lower than central banks target of 2% inflation and even with gold's supply rate yearly increase. An absolute huge moment in financial history. 🚀
· @_JustinMoon_: Fiat money was designed to empower the state Bitcoin was designed to empower the individual.
· @ThomasSchultz: Bitcoin was discussed by: The President, Congress, Secretary of the Treasury. This is f\cking crazy .We’re witnessing the beginning of an absolutely insane* paradigm shift
submitted by Edmund_N to CryptoMarkets [link] [comments]

Big Events And General Trend Of The Crypto Market In the 2nd Half Of 2019

Big Events And General Trend Of The Crypto Market In the 2nd Half Of 2019


On November 15, 2018, the BCH hard fork led to the “earthquake” of the crypto market, and the price started a bluff slump, nowhere has this seen to be more evident than in the change of BTC price, falling from $6,500 to $3,155 in just a month.
However, after entering 2019, Bitcoin rallied through 4,000 US dollars, 6,000 US dollars and 8,000 US dollars in three months, and it has broken through $10,000, continuously hitting the new highs within the year. On the morning of June 22, BTC successfully rose above $10,000 for the first time in 18 months. As of June 26, BTC increased more than 246% during the year. (Source: 58COIN Exchange)

(BTC Chart, 2019)
Compared with gold, crude oil, stocks, and other mainstream assets, the growth rate of Bitcoin has more than doubled this year. The return rate of Bitcoin is close to 10 times that of the stock market this year, a complete victory over other markets.
Bitcoin Surges Past $13,000, Hitting A 18-Month High
Why has BTC surged sharply in the past three months? There is a variety of opinions regarding the matter.
1) Some analysts believe that the launch of Libra by the social media giant Facebook is pushing the winning streak of Bitcoin price. Besides, the launch plan of the physically-settled bitcoin futures contracts by Bakkt serves as another big part of the price surge.
2) According to the experience, every time the bitcoin is halved, the digital market will welcome a bull market.
3) Some believe that hyperinflation is a catalyst for the development of bitcoin.
4) It is said that the most important reason for this round of rising is the continuous involvements of various types of investment financial institutions, such as Fidelity, it has stepped into the BTC mining, etc.
5) Data shows that more new investors are attracted by the digital currency. Since there is a continuous USDT premium, the willingness of the out-floor to enter the market is strong.
6) From the technical perspective, Bitcoin has maintained a bullish parabolic trend, and it is expected to continue to rise once it breaks through the previous high.
7) Some even hold the grounds that the Sino-US trade war has led to the depreciation of the renminbi, and a large number of funds to choose bitcoin for hedging, becoming one of the reasons that result in the surge in BTC prices.
8) Of course, the abovementioned opinions are some of the reasons for the skyrocketing of bitcoin. Undoubtedly, the bull market of BTC has indeed arrived! Research into the root cause is meaningless, as people will always find reasons for price rise, and the rise does not need a reason.
Entering The Bull Market, Five Hotspots To Follow
1. Bakkt is to be Launched
Bakkt's highly regarded bitcoin futures plan was initially launched in November 2018 and has been pushed back several times due to delays in obtaining regulatory approval from the U.S. CFTC (Commodity Futures Trading Commission). Recently, it was reported that Bakkt plans to launch physically-settled of bitcoin futures contracts in July.
Bakkt's on-line has been widely interpreted by various parties as the fuse for the arrival of the bull market. The main reasons are: 1) Providing a compliant and reliable access channel for the “regular investment army”; 2) Physical delivery regulates the market order and hangs a “Sword of Damocles” on the shorts. Bakkt was the best and even the only admission channel for the mainstream investors before the bitcoin ETFs passed. On Tuesday, June 25, the US Commodity Futures Trading Commission (CFTC) has approved bitcoin derivatives provider LedgerX to provide physically-settled bitcoin futures contracts. It is expected that Bakkt will be launched soon.
2. Bitcoin ETFs will be Approved
Investors are not strangers to the Bitcoin ETF, it is one that mimics the price of the most popular digital currency in the world. This allows investors to buy into the ETF without going through the complicated process of trading bitcoin itself. As of now, there have been dozens of ETF proposals, but they were all been rejected by the SEC. Investors often compare bitcoin ETFs to gold ETFs and the price of the latter has skyrocketed since the first launch. Therefore, after the approval of bitcoin ETFs, a large influx of institutional investors will enter with a large number of investment funds, which will certainly serve as the driving force of the rise of bitcoin price.


3. The Popular Influx of Large Companies
In addition to Bakkt and ETF, there are many other projects that can help institutional funds flood into the cryptocurrency market. This is one of the most important advances in terms of market confidence and price impact.
Various ETF-like products have been very active. BinckBank offers Bitcoin ETN (Bitcoin Exchange Trading Voucher), and the SIX Swiss Exchange in Switzerland is approved for listing cryptocurrency exchange-traded products (ETPs) that allow investors to hold a package of various digital currency combinations...
In the next few years, the largest global financial companies are also expected to launch a variety of encryption platforms. For example, Fidelity, one of the world's largest asset management companies, the Stuttgart Stock Exchange, the second largest exchange in Germany, and the Nasdaq in the United States, will provide bitcoin futures services.
4. Quality Projects and Technical Breakthroughs Accelerate Market Rally
For investors, it is the most unwilling to go through a bear market. But in turn, the bear market is also a sieve that cleans up all the fraud and junk items in the cryptocurrency market, which is crucial for the industry. According to incomplete statistics, in 2018, more than 1,000 cryptocurrency projects were phased out, and countless digital currency exchanges were eliminated.
Exchanges that completed the competition for survival of the fittest have been working hard to develop the products they promised over the past year. Therefore, quality projects and technical breakthroughs will surely have a positive impact on the long-term market.
5. Increased Supervision and Compliance
The rapid emergence and development of cryptocurrencies have led the government to lag far behind in terms of regulation. Since there are huge risks in the daily transactions of investors, some governments have banned such transactions. Good supervision on the digital market is urgently needed to make the market more reliable and stable, so as to realize the real potential of the blockchain. Therefore, “supervision” is still one of the keywords in the second half of 2019.
The beginning of the bull market has brought more hope and confidence in the market. Bitcoin has been well received by investors regardless of spot or futures. For the bitcoin price in the second half of the year, a digital currency analyst suggested that there are technical indicators show that bitcoin may rise to $60,000. Zhao Changpeng, CEO of the Binance, said: "There is no upper limit on the price of bitcoin."
The bull market has started, however, compared with the past, this round of bull market boasts two main features: 1) A lot of institutional investors have indeed participated in this bull market, which indicates that bitcoin is gradually accepted by the mainstream financial investors; 2) The correlation between the bitcoin and other financial market core factors such as the conversion rate has become stronger and is gradually more affected by the international financial situation. As the volume of the bitcoin market becomes larger, it is becoming more standard and international.
In a word, the bull market is coming, haven’t you got involved in bitcoin investment? 58COIN exchange is the right choice for you, it has launched the USDT contract and delivery contract based on the innovation of perpetual contract. Besides, with the rally of the cryptocurrency price, its cloud mining products have been well received by the market. Whether you are an adventurous or a conservative investor, you can always find a tailored product for you at 58COIN exchange.
Website: https://www.58ex.com/
Facebook: https://www.facebook.com/coin.58COIN
Twitter: https://twitter.com/58_coin
Telegram: https://t.me/official58
submitted by 58CoinExchange to u/58CoinExchange [link] [comments]

In case you missed it: Major Crypto and Blockchain News from the week ending 12/14/2018

Developments in Financial Services

Regulatory Environment

General News


submitted by QuantalyticsResearch to CryptoCurrency [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to btc [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to Tether [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to CryptoMarkets [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to BitcoinMarkets [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to bitfinex [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to CryptoCurrency [link] [comments]

[Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by Yanlii to Bitcoin [link] [comments]

[uncensored-r/BitcoinMarkets] [Manipulation] Notes on the transparency of Tether and Bitcoin market manipulation

The following post by Yanlii is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ BitcoinMarkets/comments/7bvxo5
The original post's content was as follows:
I would like to share some alarming signs of Bitcoin price manipulation.
Bitcoin price is about 10 times of what it was a year ago. The exchange that decisively sets Bitcoin price is Bitfinex, a secretive institution with unknown beneficiary structure and place of organization.
https://pbs.twimg.com/media/Cs0oGXQWAAAqMRZ.jpg
Bitfinex had its wire services suspended by Wells Fargo in April. To resume trading, Bitfinex enlisted the help of Tether, another company with unknown beneficiary structure and place of organisation, but based on announcements is likely under common share holder control with Bitfinex. Tether sells crypto-tokens known as USD Tethers, or USDTs, that are purportedly backed by an equal number of US dollars. In other words, each USDT is a digital good priced at USD 1.00.
Despite the promise of "100% reserve" and the vague reference to "24×7 access to your funds" on Tether’s website, there is no contractual right, either tacit or express, for one USDT to be redeemed for one US dollar. It is probably through this legal construct that Tether hopes to characterise its USDTs as digital goods and not "convertible" virtual currency covered by FinCEN regulations.
The invention of USDTs led to the proliferation of numerous crypto-currency exchanges. Examples include Bitfinex, Binance, HitBTC, KKex, Poloniex, and YoBit. Instead of providing crypto-to-fiat trading pairs, these "coin-to-coin" exchanges offer crypto-to-tether trading exclusively. Therefore, USDTs not only help these exchanges remove the need for formal banking arrangement, but also enables these exchanges to organise in lesser known jurisdictions (e.g., the Republic of Seychelles) and operate outside of the regulation and supervision of major economies. Most of these exchanges claim to screen-off visitors from the United States and other countries with laws on coin-to-coin trading, but the screen-off is often perfunctory. In almost all cases, the screen can be defeated with a simple mouse click.
It is doubtful that these exchanges perform meaningful due diligence beyond identity verification to combat money laundering, financing of terrorism, and corruption of politically exposes persons. Bitfinex, for example, requires no identity verification at all for most trading activities and imposes no trading amount limits on unverified accounts. The enablement of these exchanges where rampant money laundering is possible is outside of the scope of this note. Instead, I would like to bring to your attention the distinct possibility that Bitfinex, as the likely controller of Tether, is a bad actor.
Strong circumstantial evidence suggests that Bitfinex is creating USDTs out of thin air to prop up Bitcoin prices. Namely, Bitfinex is likely acting as a central bank that issues a fiat money called USDTs. The sole mandate of this central bank is to enrich itself through market manipulation.
https://i.imgur.com/b1Pdsq9.jpg
The first image (above) illustrates how mysterious amounts of USDTs were minted and injected into Bitfinex at precise moments when a crash seemed imminent.
https://i.imgur.com/jAyPlF8.jpg
The second image (above) illustrates a strong correlation (but admittedly not causation) between the total amount of USDTs in circulation and Bitcoin price.
Bitfinex released an internal memo in September to allay concerns that USDTs might have been created at will. The memo purportedly shows that Tether maintained sufficient US dollars to match all USDTs in circulation as of a day in September. The memo, however, is of no probative value. Among other strange things, the author of the memo didn’t verify with banks (names redacted) that account balances from Tethers were in fact correct, couldn’t promise that the balances weren’t overnight borrowings for purposes of producing the memo, and couldn’t promise that Tether indeed had access to those funds.
I therefore urge you to consider the possibility that the current price of Bitcoin is the result of Bitfinex’s manipulation and may collapse when regulators take action.
For example, Tether is almost certainly an administrator of virtual currency — it centrally puts into and withdraws from circulation USDTs, a virtual currency squarely intended as a substitute for real currency as admitted by Tether in the internal memo.
Tether has nominally registered as a money transmitter with FinCEN, but it is unclear if they fulfill any of the BSA filing requirements (e.g., filing SARs).2 As a company, Tether’s USDTs enables large crypto-currency exchanges (including US-based exchanges like Poloniex) to exist and powers trades thereon in the amount of millions every day. So it wouldn’t be surprising if FinCEN eventually decides to enforce its rules against Tether as it did against Liberty Reserve.
Further, CFTC approved recently various swap execution facilities, designated contract markets and derivative clearing organizations with Bitcoin flavor. And the Chicago Mercantile Exchange is expected to launch cash-settled futures on Bitcoin soon. Manipulation of Bitcoin prices referenced by these entities is prosecutable by the CFTC, an agency with broad statutory authority to prosecute manipulation of commodity prices under the Commodity Exchange Act (including Section 753 as amended by the Dodd-Frank Act.).
Although none of these CFTC-registered entities are currently including Bitfinex in the calculation of their Bitcoin reference rates (CME used to), it is well understood and could be easily established (partially because of the transparency of Bitcoin blockchain) that Bitfinex-initiated price movements ripple through all exchanges via manual and automated trading.3 CFTC could then have grounds to investigate Bitfinex’s possible manipulation of Bitcoin price via Tether.
If you are considering investing into Bitcoin at this time, please look closer at the exchanges involved in price discovery and give it a second thought.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

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Stimulus Money Used To Buy Crypto - Bitcoin Volatility Tokens - Tezos $300M - Binance Ethereum BSB

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