In a landmark federal case, two men were sentenced for manipulating the price of a cryptocurrency and defrauding investors, marking the first instance where “a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud,” said the head of the Justice Department’s Criminal Division. […]
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Italy Proposes Stringent Measures to Tackle Crypto Market Manipulation
Italy is taking steps to enhance surveillance of crypto assets and address associated risks. According to a draft decree reviewed by a news agency, the plan includes imposing high fines on those who manipulate the market. The fines range from ,400-.4 million (€5,000 to €5 million) for offenses such as insider trading, unlawful disclosure of […]
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Nigeria Detains Two Binance Executives, Crypto Platform Accused of Exchange Rate Manipulation
Nigerian authorities have reportedly detained two senior executives from Binance who had recently arrived in the country. The Central Bank of Nigeria’s governor stated that in 2023 alone, billion flowed through the cryptocurrency exchange from sources and users that the bank could not adequately identify. Passports of Binance Executives Seized Authorities in Nigeria have […]
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Peeling Back the Layers: Ensuring AR Remains a Tool for Expression, Not Manipulation
With the launch of Apple’s Reality Pro headset just a few days away, Augmented Reality (AR) is the topic on everyone’s minds. But the buzz isn’t baseless – the possibilities of AR technology are breathtaking! Fancy the new MSG Sphere in Las Vegas? Imagine having one in your own backyard! But beneath this surface-level spectacle, AR presents a major paradigm shift in technology and introduces several potential threats. AR will add exciting new dimensions to our physical world, but we need to build the infrastructure to ensure they are equitable and resistant to manipulation.
The following is an opinion editorial written by Markus Levin, the co-founder of XYO Network, a technology protocol designed to improve the validity, certainty, and value of data. As a blockchain pioneer and industry visionary, he is known for his integral role in shaping the introduction and growth of oracle technology in decentralized finance.
What Are AR ‘Layers’?
Simply put, AR layers are virtual content overlaid atop the physical world. They allow us to turn the world around us into a canvas for digital experiences – extra information can be added to points of interest, buildings can be draped in digital artwork, and mixed-reality experiences can be placed in the real world around us.
Digital layers can be shared, so you can interact with others, and persistent, meaning they continue to exist when they aren’t being accessed (like how time passes in Animal Crossing even when you’ve logged off). They are continuous universes that change over time as a result of users’ actions, similar to massively multiplayer online (MMO) video games.
The applications of this technology are diverse and abundant. For example, accessibility layers can offer extra audio or visual cues for the physical world, allowing those with hearing or sight issues to receive the exact support they need without inconveniencing others or requiring expensive physical accommodations. Other layers can let artists tuck art installations with impossible scale into any corner of their community and empower creatives to use the physical world itself as a canvas for satire.
The possibilities are endless and enthralling, but share one common thread – they allow us to communicate, express ideas, and exchange information. In many ways, AR is the next evolution of the public square, and as such, we must build the infrastructure necessary to ensure that AR layers remain accurate and resistant to tampering.
Controlling How We See The World
Who will govern these AR layers as they transition from a high-tech novelty to an everyday tool? How will we ensure that the information shown on our screens is an authentic representation of the world around us? As we begin building in a realm that our naked eyes can’t see, we expose a fatal vulnerability: our world can be distorted.
As it stands, AR layers will likely be governed by central authorities – probably the companies manufacturing AR devices such as Apple and Meta. When users build an art installation in their neighborhood, although the project is intended for their local community, it gets stored on Apple or Meta’s servers.
Of course, this is how most internet infrastructure functions now, and no one seems particularly perturbed. We regularly rely on centralized infrastructure every day… Why should we suddenly care when it comes to AR?
For starters, security researchers have been warning about the dangers of centralized infrastructure for years – AR or otherwise. There are countless examples of regimes leveraging their central authority to censor, manipulate, and distort their people’s view of the outside world. However, despite wielding these tools of manipulation, even the most corrupt regime can not distort what people see with their own eyes.
But AR goes further, it’s more intimate. It allows people to design local murals for their communities – not intended for a global audience, but to brighten up their own environment and share their gifts with those around them. It allows people to leave their mark on the world right in front of them, not in theoretical cyberspace. It will inevitably become part of what makes our home our home. It’s content that is too important to who we are as individuals and as a society at large to cede total control to others.
Building the Infrastructure for Accurate AR
Luckily, technology companies have already begun addressing this issue and developing alternative solutions. Decentralized infrastructure has had a renaissance in recent years thanks to the rise of blockchain technology and the development of new cryptographic techniques and validity proofs. The Web3 industry has driven billions of dollars into the advancement of new network architecture, encryption techniques, privacy-preserving data verification, and decentralized protocols; decentralized projects have funded the research necessary to establish sovereign networks as a realistic solution.
Blockchain technology can be leveraged to ensure immutability, meaning whatever information is recorded is permanent and cannot be altered. Zero-knowledge proofs allow us to verify that a piece of information is accurate, without gathering personal data on the person who collected or transported it. Decentralized oracles allow us to gather and cross-reference information in real-time, affording us protections from manipulation, censorship, and spam.
Eschewing centralized infrastructure and closed ecosystems is no longer a pipe dream. We’ve assembled the tools to build decentralized networks and open ecosystems that let users own their own content, keep their personal information private, avoid distorted content, and guarantee that the information on their AR screen is the same as on everyone else’s. Now it’s time to put them to use.
AR That Belongs to The People
We’re on the precipice of a thrilling shift in technology, expanding our world into new dimensions and redefining the way we interact with others. But amidst the glamor of sleek AR devices, quirky new games, and impressive features, we must remain vigilant of the potential for manipulation and continue building the infrastructure to ensure AR is a tool for expression, not oppression.
What do you think about the Augmented Reality (AR) topic? Share your thoughts and opinions about this subject in the comments section below.
SEC Postpones Verdict on Global X Spot Bitcoin ETF, Cites Market Manipulation Concerns and Need for Public Insight
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Global X Bitcoin Trust’s application to list a spot bitcoin exchange-traded fund (ETF). The delay, announced on November 17, 2023, marks a continued period of uncertainty in the spot bitcoin ETF space.
Global X Spot Bitcoin ETF Delayed by SEC
The Global X Bitcoin Trust seeks to offer investors exposure to bitcoin (BTC) through an ETF structure, a move that could potentially broaden the crypto asset’s appeal to a wider investor base. Initially filed by the Cboe BZX Exchange on August 4, 2023, the proposal aims to list and trade shares of the trust under the exchange’s commodity-based trust shares rules.
In its order, the SEC outlined its rationale for the delay, stating the need for further analysis on whether the proposed ETF aligns with the Securities Exchange Act’s requirements. Specifically, the securities watchdog is evaluating the proposal’s consistency with the Act’s mandates, which include the prevention of fraudulent and manipulative acts and practices and the protection of investors and public interest.
The SEC’s main concerns revolve around the liquidity and transparency of the BTC market and its susceptibility to manipulation. The commission’s proceedings will allow for additional public input and a thorough assessment of these concerns. “Do commenters agree with the exchange’s statements regarding the bitcoin market’s resistance to price manipulation?” the SEC asks the public in the order.
A key aspect of the SEC’s review is the sufficiency of the exchange’s statements supporting the proposal, along with the overall structure and safeguards of the proposed Trust. The trust’s objective is to mirror the performance of bitcoin’s price, less the trust’s operational expenses, and its assets will consist primarily of BTC held by its custodian. The Trust’s unique mechanism of “in-kind” transactions for selling or redeeming shares is also under scrutiny.
The SEC’s decision to delay does not indicate a final disapproval. The regulator is actively seeking public comments on the proposal, inviting interested parties to submit their views, data, and arguments. There will be a timespan of 35 days until the SEC has to decide again on the Global X filing and the public can comment in the meantime.
What do you think about the SEC delaying its decision on the Global X spot bitcoin ETF? Share your thoughts and opinions about this subject in the comments section below.
Amid Rising Bitcoin ETF Hopes, Critics Warn of Vulnerability and Echoes of Precious Metal Manipulation
In recent months, the buzz around a potential bitcoin exchange-traded fund (ETF) has surged, echoing in its climbing price. But the enthusiasm isn’t universal. Some fear a spot bitcoin ETF could make BTC vulnerable, much like the gold and silver markets. The approval might open doors to manipulative practices reminiscent of those alleged in precious metals.
With a Physically-Settled Bitcoin ETF on the Horizon, Skeptics Foresee Gold-Like Manipulation Risks
A tangible bitcoin ETF might seem like a boon for crypto growth and valuation. However, there are concerns it could mirror gold and silver ETFs, using fictional BTC supplies as leverage for futures. Rapid price hikes could be countered by releasing this made-up supply. Instead of acquiring real bitcoin, buying into a bitcoin ETF wouldn’t diminish the actual supply. Operators of the ETF might leverage positions far exceeding their verifiable assets, swaying prices.
On October 16, 2023, Josef Tětek, a BTC analyst at Trezor, remarked that an “ETF is fiatization of bitcoin.” Tětek opines that long-term, an ETF might not benefit BTC. He asserted, “[A] bitcoin ETF is one of the worst things that can happen to bitcoin adoption. It is an attack on self-custody, substituting actual usage (whether as a MoE or SoV) for dumb price speculation.”
Tětek elaborated further:
ETFs are much worse than exchanges, as we can at least incite bank runs on exchanges and test their solvency – and if they prove to be running a paper bitcoin ponzi scheme, they collapse before they grow too large (FTX, Blockfi, etc.).
The first gold exchange-traded product (ETP) debuted in 1961 as a closed-end fund. By 1983, it opened its doors to a wider investor base. In 1986, after two decades on the Toronto Stock Exchange, it found its place on the U.S. Stock Exchange. March 2003 saw the listing of the first physical gold ETF, “Gold Bullion Securities.” Since these introductions, many have pointed fingers at ETFs and financial powerhouses for allegedly rigging precious metal prices.
This suspicion extends to a bitcoin ETF, where an ETF’s 100,000 BTC might be overshadowed by unchecked paper. Such an ETF could conveniently leverage fictitious supplies, assisting corporations in hedging vast derivatives bets. When prices balloon suddenly, this illusory supply might be released to curb the surge. Gold has allegedly been a victim of such practices. For example, two ex-JPMorgan metals traders faced fraud convictions last year for a gold market ploy, along with other precious metals.
In 2020, JPMorgan settled U.S. allegations of precious metals futures price manipulation from 2008-2016. Silver is also believed to suffer similar manipulation. Large financial entities are often accused of using short positions to suppress silver prices. Such underhanded tactics against gold and silver have been highlighted in various research papers and exposés. There’s a growing apprehension that the decentralized crypto world might face the same fate.
“A spot bitcoin ETF will be bad because it will allow Blackrock to purchase and control bitcoin, bought with other people’s dollars,” explained an individual on the social media platform X. “They will get a seat at the table, they didn’t earn. I don’t think you realize how bad this will be for plebs. We don’t want Mr. Fink at our table.”
While bitcoin ETFs may democratize access, naysayers believe they mask leverage and speculative practices from oversight bodies and investors. As with precious metals ETFs, price discovery might be twisted. “Best State attack on bitcoin ever – An ETF,” explained another bitcoin enthusiast on social media this week. “The funniest part is that bitcoiners are desperate for an ETF.” Another X user echoed the sentiment, foreseeing a gloomy future for the decentralized crypto.
“The approval of the spot ETF will be good for short-term traders as price will skyrocket,” the person posted. “But it will be bad for all the small retail bitcoin investors, as we won‘t see the actual price level again. As soon as the big boys step in, bitcoin becomes political.” Yet, not all concur with this thesis. Another user on X argued that painting an ETF as a villain is ludicrous, believing that the indomitable decentralized nature of bitcoin will always prevail.
“Bitcoin ETF bad [for] bitcoin,” the person said in jest. “People who say this think bitcoin is like gold. They do not understand that you cannot control bitcoin in the long run. Let Wall Street create all the ETFs they want. They will never be able to control bitcoin.”
What do you think about the critics of a spot bitcoin ETF? Do you think they have valid fears? Share your thoughts and opinions about this subject in the comments section below.
Immutable (IMX) Up By 23% In A Single Day, Analyst Suspects Market Manipulation
IMX, native token of Ethereum layer-2 scaling solution Immutable X, recorded massive gains on Thursday, soaring by over 23% within the last 24 hours. Before this price gain, IMX had been relatively stable all week, hovering around the .52 price zone, according to data from Coingecko.
Behind IMX’s Rise, Analysts Points To Price Manipulation
Although there may be no clear reasons for the token’s positive price movement, Chinese reporter Colin Wu speculated about potential price speculation.
According to a post on X by Wu, 10.95 million of the token, valued at .1 million, were transferred to the Upbit exchange from several other crypto exchanges, including Binance, OKX, Bybit, Crypto.com, Gate, etc.
Korean traders are manipulating the price of IMX and driving a surge. Today, 10.95 million IMX (.1 million) flowed into Upbit from multiple CEXs such as Binance, OKX, Bybit, Cryptocom, Gate, etc. The price quickly rose from US.56 to US. https://t.co/JjUcqi7CKS
— Wu Blockchain (@WuBlockchain) September 21, 2023
Following these transactions, the token surged from .56 to .74, representing a 34.5% price gain. Wu has stated that Korean traders are “behind this move.” The Upbit exchange is mainly popular in South Korea, dominating over 83% of the nation’s crypto market.
Providing more insight into these transactions, on-chain analytics firm Lookonchain reports that these transfers to Upbit were sent to the same wallet with the address “0x2F77.” This indicates a single crypto whale was likely behind this price surge.
Within three hours on Thursday, 12.54 million of the token, valued at .45 million, was transferred to “0x2F77,” allowing this address to become the 9th largest holder of the token, owning 20.4 million worth million.
Furthermore, Lookonchain also revealed that several IMX investors opted to take profit following the token’s price gain. These investors include GSR Markets, a crypto investment firm that moved 2 million IMX, worth .52 million, to Binance right after IMX rose.
In addition, three investors withdrew 3.5 million IMX, valued at .3 million, from the Foundation Treasury Locked wallet and may be planning a market dump. Following such transactions, it is no surprise that IMX soon experienced a price decline of about 13.33% a few hours after its boost.
IMX Gets Listed On Japanese Exchange
In other news, IMX has also been listed on the Japanese exchange Coincheck. According to a blog post by the crypto exchange on Thursday, IMX will now be eligible for its various services, including Coincheck NFT and Coincheck crypto lending service.
In addition to IMX, Coincheck also announced listing other cryptocurrencies, namely Apecoin (APE) and AXS, the governance token of the Axie Infinity gaming metaverse.
At the time of writing, the IMX trades at around .64, with a price loss of 1.8% in the last hour. Based on more data from Coingecko, the token’s daily trading volume rose by 238.20%, valued at 8.50 million.
SEC Sues Tron Founder Justin Sun for Market Manipulation and Offering Unregistered Securities
The U.S. Securities and Exchange Commission (SEC) has taken action against Justin Sun, the founder of Tron, and the Tron Foundation, issuing charges for offering unregistered securities and market manipulation. Additionally, a group of influencers have been charged by the organization for promoting tron without disclosing that they were being compensated for their endorsements.
Tron Founder Justin Sun Charged for Selling Unregistered Securities and Market Manipulation
The U.S. SEC announced today a series of charges against Tron founder Justin Sun, and the Tron Foundation, declaring that the foundation offered TRX as an unregistered security, violating securities laws. Bittorrent token (BTT), which was launched after Sun took over Bittorrent Inc. in 2018, was also mentioned as being part of these offerings. In the filed complaint, the SEC states:
All TRX purchasers, including those who tendered value for TRX other than cash or crypto assets, invested in a common enterprise alongside Sun and the Tron Foundation, who at all times retained significant TRX holdings.
The statement makes similar allegations regarding BTT, stating it “was offered and sold as a security, specifically as an investment contract.”
The SEC also declares that Justin Sun orchestrated a scheme to manipulate the price of tron (TRX) on crypto exchanges using different accounts involved in daily wash trading activities, tasking part of his team in moving significant amounts of TRX through different exchanges. One of the accounts involved, according to the SEC complaint, belonged to Sun’s father.
Through this scheme, between 4.5 million and 7.4 million TRX were allegedly wash traded daily, in more than 600,000 operations.
Celebrities Also Charged for Illegal Promotion of Tron and Bittorrent Token
As part of the action of the U.S. SEC, a series of influencers and celebrities were also charged for promoting these securities without disclosing they were being paid to do so. The SEC claims that Sun indirectly instructed these celebrities to not disclose they were being part of a campaign, using employees as messengers.
Among the celebrities that were included in the lawsuit are Lindsay Lohan, Jake Paul, DeAndre Cortez Way (AKA Soulja Boy), Austin Mahone, Michele Mason (AKA Kendra Lust), Miles Parks McCollum (AKA Lil Yachty), Shaffer Smith (AKA Ne-Yo), and Aliaune Thiam (AKA Akon). All of them, except for Cortez Way and Mahone, have already settled with the regulator, paying more than 0,000 in “disgorgement, interest, and penalties.”
SEC chair Gary Gensler stated:
This case demonstrates again the high-risk investors face when crypto asset securities are offered and sold without proper disclosure.”
What do you think about the legal actions that the U.S. SEC is exerting against Justin sun and the Tron Foundation? Tell us what you think in the comments section below.
Coinbase Exec Accuses Binance Of Crypto Price Manipulation
The world’s largest cryptocurrency exchange Binance was in the crossfire of critics for a long time after the FTX collapse. In particular, there was harsh criticism because of an opaque proof of reserves issued by the auditing firm Mazars, which paused the cooperation with the exchange shortly thereafter.
Over the turn of the year, however, the criticism has become quieter and Binance has disappeared from the spotlight as DCG and Genesis became the crypto industry’s biggest headache. But Conor Grogan, Head of Product Business Operations at Coinbase, presented new serious allegations against Binance today.
In a Twitter thread, Grogan wrote that there is a “pattern of Binance front-running over 18+ months.” He found Binance-connected wallets which were buying 0.000 RARI seconds before the listing and dumped them minutes after.
He also found an incident where around 78,000 ERNs were bought between June 17th and 21st and sold immediately after the listing was announced. The same thing was done with TORN, where “hundreds of thousands were bought and sold right after the announcement.”
Another example is the purchase of RAMP, worth more than 0,000, of over multiple days, “before sending it to Binance minutes after the listing announcement. Assuming they sold it was a ~100K payday.” Grogan explained:
I found all of these via looking at the original wallet’s OKX deposit address and looking at the other counterparty wallets. Not great opsec by them. I just started digging in so there might be more examples.
According to the Coinbase exec, the front-running could have a variety of causes. Most likely, according to Grogan, is insider MNPI (Material Nonpublic Information) which is operated by a rogue employee who is connected to the listing team and has details of new asset announcements.
Another explanation could be a trader finding a leak in an API or test trade exchange. In any case, regulators and law enforcement agencies are likely to be very interested in the case, as evidenced by the recent cases against Coinbase for insider trading.
Bitcoin Price Manipulated By A Singe Entity At Binance?
Notably, rumors surfaced last week that the entire Bitcoin move from ,000 to ,000 was initiated by an entity at Binance. First, an anonymous trader pointed to the move being fueled by a BUSD stablecoin whale, citing the BTC Spot CVDs (Cumulative Volume Delta). On January 15, he shared the following chart and wrote:
Whole move from 17k to 21k was made by someone on Binance aggressively buying Bitcoin with BUSD. Other exchanges started to buy around 19.5k with USDT + USD. Green CVD includes all exchanges with Binance USDT as well, yellow CVD – only BUSD.
Yesterday, the trader wrote that both CVDs are showing a Bitcoin bearish divergences since yesterday. “Green line – spot CVD with all stablecoins including our loved one BUSD, blue line – perps CVD with all stablecoins as well. Looks like passive seller won this time,” the trader said.
However, the trader also clarified that while he was the first to report the huge BTC buying with BUSD on Binance, he never mentioned the words “cartel” or “manipulation.”
At press time, the Bitcoin price was once again attacking the ,000 level.
Expert Take: Bitcoin Has Become A Monetary “Manipulation Gauge”
Bitcoin price is once again soaring, retesting resistance near the current all-time high. According to a top expert on the leading cryptocurrency, the asset’s price chart has become a sort of “manipulation gauge” that measures ongoing economic growth “engineering” by governments.
If that’s the case, resistance won’t be able to hold Bitcoin back much longer, as the US House of Representatives has passed another historic .9 trillion relief package. Here’s a closer look at how the “manipulation gauge” has reacted so far.
Bitcoin Becomes Solution To Ongoing Government Economic Engineering
During the Great Recession, there were unprecedented bank bailouts and other measures to avoid a catastrophic economic collapse. The Pandora’s box of quantitative easing once opened cannot be stopped.
Since that day, wage gaps and financial inequality only widened. The best attempt at instilling change, was created by Satoshi Nakamoto in 2008.
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Today, Bitcoin is actively fighting that same fight, and winning. The cryptocurrency’s scarce 21 million BTC supply is proving its value during a time when the fiat money supply is expanding at its fastest pace ever.
Dollars and other global currencies have been created at unprecedented rates to combat the impact of the pandemic, and more stimulus will always be necessary each time the economy weakens.
The rate at which this is happening, is appearing directly on the Bitcoin price chart itself, according to expert Preston Pysh, effectively acting as a “manipulation gauge” against the “engineering” governments are doing in hopes of stimulating economic activity.
Bitcoin has become a manipulation gauge of sorts according to Pysh | Source: BTCUSD on TradingView.com
What The Monetary “Manipulation Gauge” Says Currently
Looking at Bitcoin’s price chart above, the price action is relatively stable – as stable as it gets for a volatile cryptocurrency. But when Black Thursday happens last year, and there’s an enormous spike downward unlike ever before seen.
The extreme move down resulted in such a strong polar move to the upside, further fueled by what has been a perfect storm for the nascent cryptocurrency.
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In addition to price rising due to hyperinflation, adoption of the technology is exploding, and institutions are involved for the first time ever, and it has only recently just begun. Gold, which typically performs in this type of environment, has suffered and seen outflows go directly into Bitcoin.
The current bull market uptrend is only poised to continue, as more stimulus packages are on the verge of being passed and funds being distributed directly to businesses and individuals. The risk of hyperinflation remains high, and buying Bitcoin remains the best defense.
Featured image from Deposit Photos, Charts from TradingView.com