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April 2010

Coinroom Exchange Shuts Down and Leaves with Customers’ Crypto

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Coinroom

Coinroom

According to sources from news outlet money.pl, a Polish cryptocurrency exchange known as Coinroom has shut down abruptly and disappeared with all its customers’ funds in tow.

The Polish exchange, first registered in 2016, has even deleted its Twitter page.

Coinroom Shuts Down

The news outlet reportedly received an email from one of the exchange’s customers who said that the exchange ceased operations overnight and disappeared with all the funds in April. Though the exact amount stolen isn’t yet known, many customers reported having over $15,000 worth of cryptocurrency in their account.

Before culling the exchange, Coinroom had reportedly sent emails to its customers regarding contract terminations. It gave them only one day to withdraw their money, which was in accordance with regulations the exchange signed with users.

However, reportedly, the exchange returned only part of the funds to some customers, while many others didn’t receive any of their funds back at all.

One customer reportedly lost 2.005 Bitcoins, which values over $16,000 USD at current prices.

Another user said the following:

“[O]n the second day after sending the e-mail, I went to the Coinroom headquarters. The lady at the reception did not want to let me in, she claimed that nobody was in the office. Instead, she called someone from the company. I was asked to leave my details. Nobody contacted me.”

The issue is now being investigated by the District Prosecutor’s Office in Warsaw. According to sources here, the office has begun “proceedings against Coinroom in connection with unauthorized activities providing payment services that intermediates in the exchange of cryptocurrencies.”

>> Bitcoin (BTC) Price Falls Below $8,000 On Panic Selling

Cryptocurrency Scams

Scams within the cryptosphere have become all too common. As cryptocurrencies gain mainstream traction, it is inevitable that more opportunities to be hacked will appear. In the past two years alone, several scams and exchange hackings have amounted to millions of dollars worth of cryptocurrency being stolen.

Recently, in early May, the NYPD announced a Bitcoin scam whereby callers were impersonating government officials and requesting payments in Bitcoin. In this case, scammers pretended to be from the Social Security Administration (SSA) and even went as far as manipulating their caller IDs to show SSA numbers.

Featured Image: DepositPhotos © vlastas

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Bitcoin Falls 30% from Highs

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Bitcoin

Bitcoin

Regardless of a 30% price correction on Bitcoin, analysts are still bullish on the coin. On Saturday, BTC dropped 8%, and cynics believe that the rally towards a record all-time high is now over.

Bitcoin surged over the past two weeks, establishing an M-top at $13,177 and $13,739 before dipping to $9,600. Despite the drop, the majority of traders are expecting the digital assets to retrace to the 50% and 61.8% Fib retracement level, which is close to the CME futures gap. Equally, the coin has dipped out of the widening wedge that took it to its 2019 high from $4,000, and the parabolic movement is negated; thus there are chances of revisiting the 61.8% Fib retracement.

Bitcoin Turning to Be a Store of Value

In the past five years, the volume of unmoved Bitcoin has significantly increased, with coins being held in a single wallet for close to two years. This demonstrates the potential of Bitcoin being a store of value rather than a medium of exchange. There is a correlation between price increase amounts of unmoved Bitcoin in wallets as a store of value.

Analysts indicate that once the BTC/USD rally peaks, there will be a large volume of Bitcoin that will be available for cheap. BTC bull markets have so far corresponded with miner capitulation, and there is a tendency of BTC price rising from these lows to grow 100 fold. Since the February bottoming, BTC price has rallied close to 300%, and it is mirroring previous cycles.

>> LedgerX Launches Physically-Settled Bitcoin Futures Contracts

Miners Anticipate the 2020 Halving Event

Currently, miners are holding Bitcoin, as they anticipate the 2020 halving event. Despite the present correction, the price is unlikely to go below $3,120. It is expected that miners will be selling a few coins as they wait for 2020, and this will lead to price gains in the short-term. Selling will most likely resume once buying pressure declines.

Analysts expect Bitcoin price to hit $20,000 if it follows its near-term consolidation trend coupled with the pre-halving excitement.

Featured image: DepositPhotos © EdZbarzhyvetsky

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Ethereum Dev Virgil Griffith Pleads Not Guilty in North Korea Case

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Virgil Griffith

Virgil Griffith

Former Ethereum developer Virgil Griffith has pleaded not guilty to conspiracy charges filed against him by the US Attorney’s office in relation to a speech he gave at a blockchain conference in North Korea in April 2019.

Griffith was arrested on Thanksgiving at Los Angeles International Airport after the FBI alleged that he breached the International Emergency Economic Powers Act (IEEPA) in traveling to North Korea without authorization and providing knowledge on how the country can utilize blockchain technology to launder money and evade sanctions. Earlier this month, the former Ethereum employee was indicted by Grand Jury over the claims, and, if found guilty, could face up to 20 years imprisonment.

Brian Klein, the attorney representing Virgil Griffith, said his client “should not have been indicted,” and that “we are going to vigorously contest the charge and look forward to getting all the facts in front of the jury at trial.” Assistant US Attorney Michael Krouse said the government has already produced an initial set of documents for discovery, including statements Griffith made to the FBI, and that a second set of documents should be produced within the next two weeks.

Klein asked Judge P. Kevin Castel if the defense would be able to obtain records relating to any interviews the FBI held with other people who attended the Pyongyang Blockchain and Cryptocurrency Conference last year, particularly any attendees who might be able to refute the allegations against Virgil Griffith. “We anticipate these other attendees will exonerate our client,” Klein said.

>> Bitcoin Futures CME Trading Generates $100 Billion in Volume Since 2017

However, the prosecution argued that the defense had no grounds to make such a request but said the government would comply with production requirements under federal rules of civil procedure. Judge Castel did not make a firm ruling on the request but told Klein, “If there’s an application under [the rules], I would expect you and encourage you to make it as soon as possible.”

The next hearing in Griffith’s trial is scheduled for March 17.

Featured Image: DepositPhotos © aa-w

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