On May 26, the trader known as GCR was allegedly hacked, possibly by the team behind the Solana-based meme coin CAT, as suggested by onchain sleuth Zachxbt. Prior to the hack, an address linked to CAT’s team used funds from a manipulated token launch to open long positions in ORDI and ETHFI, accumulating over ,000 […]
Bitcoin News
Fight for Lost BTC in Garbage Dump Continues for British Man, SBF Possibly Abused in Jail, and More — Bitcoin.com News Week in Review
Former IT professional James Howells is still struggling to recover 7,500 lost bitcoins from a hard drive in a South Wales landfill, after years of failed negotiations with a local city council. Howells is now preparing to take legal action in order to sift through the waste to find his misplaced fortune. In other news, disgraced FTX co-founder Sam Bankman-Fried is possibly being “extorted and physically harmed” in jail. This and much more, just below, in the latest Bitcoin.com News Week in Review.
Former FTX CEO Sam Bankman-Fried Allegedly Being ‘Extorted and Physically Harmed’ in Jail
Jeremy Lorenzo, aka “Poops,” has given more insights on the difficulties that former FTX CEO Sam Bankman-Fried is allegedly facing during his stay at Brooklyn Metropolitan Detention Center (MDC). Lorenzo shared that Bankman-Fried had computer code confiscated and that he might have been moved due to being “extorted and physically harmed daily.”
Rich Dad Poor Dad Author Robert Kiyosaki: Airbnb to Lead Real Estate Market Crash
Rich Dad Poor Dad author Robert Kiyosaki has warned that Airbnb will lead the incoming real estate market crash. Noting that many people are worried that the “Airbnbust” is finally here, an economist cautioned that “it could get a lot worse between a looming recession and excess savings about to dry up.”
Man Plans to Sue City Over Refusal to Dig for 7,500 Lost Bitcoin in Landfill
James Howells, a bitcoin enthusiast who misplaced 7,500 bitcoin (BTC) in a South Wales landfill, is gearing up to take legal action against the local city council for barring his efforts to unearth the missing hard drive from 2013. This former IT professional, now 38, has been at odds with Newport City Council for ten long years, rallying a 16-person crew to help retrieve the drive, now valued at 4 million.
Binance CEO Urges Hardware 2FA Use for All Crypto Platforms After Vitalik Buterin’s X Account Hack
Binance CEO Changpeng Zhao (CZ) has urged everyone to use hardware 2FA for all crypto platforms after a social media account belonging to Ethereum co-founder Vitalik Buterin was hacked and used to post a crypto scam link. “In the past, I have had my Twitter account locked a few times due to hackers trying to brute-force it (trying different passwords repeatedly),” CZ shared.
Do you think James Howells will ever recover his lost bitcoins? Let us know in the comments section below.
Binance Halts Deposits and Possibly Withdrawals for Aussie Users After Being Cut Off by Australian Payment Service Provider
Binance Australia said on May 18 that it is “unable to facilitate PayID AUD deposits for Binance users” due to a third-party payment service provider’s decision to discontinue support for the crypto exchange. Binance Australia said while it works to find an alternative, users can still “buy and sell crypto using credit or debit cards.” Scott Collary, an executive at the service provider, claimed that “scammers are increasingly using overseas exchanges.”
Binance Australia Seeks an Alternative Third-Party Payment Service Provider
Crypto exchange Binance Australia announced on May 18 that it had “temporarily” suspended Australian dollar services after its payment service provider Westpac abruptly discontinued support for the platform. As a consequence, the crypto exchange said it is now “unable to facilitate PayID AUD deposits for Binance users.” The exchange warned users that the action taken by the third-party payment service will also likely impact bank transfer withdrawals.
Fellow Binancians,
We regret to inform you that with immediate effect we are unable to facilitate PayID AUD deposits for Binance users due to a decision made by our third party payment service provider. We understand from our third party payment service provider that Bank…
— Binance Australia (@Binance_AUS) May 18, 2023
However, in its May 18 tweet, Binance Australia did not explain why it has been banned or offer a hint of when the temporary suspension of the service is likely to be lifted. Instead, the tweet said the crypto exchange is working to find an alternative. The tweet also advised Binance Australia users to switch to its peer-to-peer marketplace.
“We are working hard to find an alternative provider to continue offering AUD deposits and withdrawals to our users. Notably, you can still buy and sell crypto using credit or debit cards and our Binance P2P marketplace will also continue to operate as usual. Rest assured that your funds are safe through the Secure Asset Fund for Users (SAFU), an insurance fund that offers protection to Binance users and their funds in the event of extreme situations,” the crypto exchange said in a tweet.
Crypto Exchanges Failing to Deal With Scammers
Meanwhile, reports from local media have said Binance Australia was among several other crypto exchanges that have been cut off by Westpac, which announced a series of so-called scam protection measures on the same day. Explaining why his firm made the drastic decision of banning crypto exchanges, Scott Collary, the group executive of customer services and technology at Westpac, reportedly said:
Digital exchanges have a legitimate role to play in the financial ecosystem. But since the rise of digital currency, we’ve noticed that scammers are increasingly using overseas exchanges.
Collary also claimed that customers of Westpac usually discover they have been scammed when the funds have already left the country. At that point, recovering the stolen funds will be “extremely difficult.”
While an unnamed spokesperson for Australian Payments Plus, which oversees the operation of Pay ID, is quoted confirming the decision, they nonetheless denied any involvement in the matter.
“It is a matter for this organisation and its third-party payment service provider,” the spokesperson said.
Westpac’s decision to ban Binance Australia is the latest in a series of setbacks to befall the crypto exchange in Australia. In early April, a report in the Sydney Morning Herald said the Australian Securities and Investments Commission (ASIC) had canceled the license of Binance Australia’s local entity known as Oztures Trading. The report added that the Australian watchdog had been conducting “a targeted review” of the crypto exchange’s financial services business in the country.
What are your thoughts on this story? Let us know what you think in the comments section below.
Former SEC Enforcement Chief: Coinbase’s Arguments ‘a Surefire Loser’ and Possibly Criminal
According to John Reed Stark, crypto exchange Coinbase’s assertions that its business activities were endorsed by the U.S. Securities and Exchange Commission (SEC) when it approved its initial public offering are “a surefire loser.” According to Stark, the SEC’s approval of Coinbase’s registration statement was done to ensure the latter had made “proper disclosures in their application.”
SEC Not Constrained by Any Doctrine
John Reed Stark, a former chief of the U.S. Securities and Exchange Commission (SEC) Office of Internet Enforcement, has said the arguments that Coinbase’s business activities were endorsed by the commission when it approved its initial public offering (IPO) are “a surefire loser.” Stark also said the assertion that Coinbase has “some sort of regulatory safe harbor” and that the SEC is constrained by some sort of doctrine “has no basis in law or in fact.”
The remarks by Stark came just days after Coinbase chose to publicly disclose its response to the Wells notice it received from the SEC back in March. As reported by Bitcoin.com News, Coinbase made clear its opposition to the SEC’s enforcement actions. Coinbase also implied in its response that the SEC had in fact greenlighted its core business when it allowed the IPO to proceed. The company went public in April, 2021.
Some argue that when the SEC approved Coinbase’s IPO, the SEC also approved Coinbase’s business. What a crock and possibly a criminal offense. Yes, you read that correctly — a criminal offense. Having served as Chief of the SEC Office of Internet Enforcement for 11 years, IMHO,… pic.twitter.com/aIQXgCRVNb
— John Reed Stark (@JohnReedStark) May 1, 2023
However, in his May 1 Twitter thread, Stark, who worked for eleven years as an SEC chief, assailed the assertion that the commission’s approval of Coinbase’s registration statement amounted to an endorsement of the crypto exchange’s activities. According to Stark, the SEC’s approval of Coinbase’s registration statement was done to ensure the latter had made “proper disclosures in their application.”
‘No Approval Clause’
To further support this argument, Stark pointed to regulations which compel companies seeking to raise funds from the public to insert a “No Approval Clause” in their respective prospectuses. The intention of this clause is to inform prospective investors that regulators that include the SEC have neither approved nor disapproved securities being offered.
The former SEC enforcement chief also shared more links which seemingly support the argument that the Commission is not being constrained by some “sort of regulatory estoppel.”
Meanwhile, Stark also suggested in his tweet that Coinbase’s own Form S1 Registration Statement under the Securities Act of 1933 proved that the crypto exchange was aware that its business activities had the potential to cause problems. He said:
Finally, Coinbase’s Form S1 Registration Statement under the Securities Act of 1933, the form that Coinbase filled out to become a public company and the form that the SEC reviewed, disclosed that there is regulatory uncertainty regarding the status of their activities and that Coinbase could be subject to a litany of civil, criminal, and administrative fines, penalties, orders and actions (which is exactly what is happening right now).
Stark ended the long tweet by reiterating that the “no approval clause” was a sufficient warning to Coinbase executives who may face potential jail time should the crypto exchange lose its fight against the SEC.
What are your thoughts on this story? Let us know what you think in the comments section below.
Reddit User Discovers 7zip File Possibly Linked to Julian Assange Hidden in Bitcoin Blockchain
According to a post on the Reddit community r/bitcoin, an old file was discovered that may be linked to Julian Assange, the whistleblower and founder of Wikileaks. The encrypted 7zip file is in the output script from a transaction that took place on Jan. 5, 2017, and was mined at block height 446,713.
Speculation Surrounds Purpose of 7zip File Called ‘Julianassange.Txt’ Found in Bitcoin Blockchain
Amid the thousands of inscriptions added to the Bitcoin blockchain via Ordinals, a 7zip file possibly linked to Wikileaks founder Julian Assange was recently discovered. A Reddit user under the name “u/sprxzk34620” informed the r/bitcoin subreddit of the discovery. The post stated, “An encrypted 7zip file possibly related to Julian Assange is hidden in the Bitcoin blockchain.” The author also noted that the file could be obtained by splicing the pubkhash seg of all the output scripts from a specific transaction.
“The encrypted 7zip file contains a file named ‘Julianassange.txt,’ but attempts to crack the file have failed,” added the Reddit user. Commenters on the Reddit post asked why Assange would add this to the Bitcoin blockchain and some referred to speculation that he created a “dead man’s switch.” “It could be an encrypted link to the switch or files exposing secrets,” wrote one person. Others were doubtful and stated that a zip file named “Julianassange.txt” sounds like a hoax.
Coincidentally, the Jan. 5, 2017 transaction with the 7zip file occurred five days before Assange read the Bitcoin blockchain hash from block height 447,506 in a recorded video. At the time, many believed that the whistleblower used this tactic to prove he was alive. Despite being alive, Assange stated that he was not okay while he was confined in the Ecuadorian embassy in London.
“Don’t take some cryptographic proof as evidence that I am okay,” he emphasized at the time. “I’m not. I have been held here for eight years. I haven’t been okay the entire time.” Since then, Assange’s Ecuadorian asylum was revoked and he was arrested on April 11, 2019, when police raided the embassy. The contents of the 7zip file are unknown until someone successfully cracks it, as it may not belong to or be associated with Assange at all.
The Reddit post written by u/sprxzk34620 ended with a heated discussion about whether adding arbitrary data to the Bitcoin blockchain through Ordinals was a legitimate practice, as it has sparked controversy among some bitcoin advocates. “If everyone is going to post stupid cat JPEGs on the blockchain, I can keep buying new hard drives for my node … F*** that sh**. Keep it compact folks,” one Redditor stressed.
What do you think the contents of the encrypted 7zip file could reveal? Let us know your thoughts about this subject in the comments section below.
Ethereum Price Will Rally If This Happens; What Could That Possibly Be?
- ETH’s price shows the first sign of bounce after forming a bullish pattern as the price gets rejected into a descending range channel.
- ETH bounced off its downtrend movement as the price builds more momentum in a descending triangle with a breakout on either side open.
- The price of ETH continues in its range movement as the price gets rejected and trades below the 50 and 200 Exponential Moving Averages (EMA).
The price of Ethereum (ETH) after its “Ethereum Merge” hasn’t been encouraging as the price has dropped far below the expectations of many. After rallying to a high of ,030 before its merge, the price of Ethereum (ETH) has seen its price decline with little or no bounce to the upside as the market continues with so much uncertainty as to where the crypto market could be headed in the next few weeks. Despite so much speculation of a better month, with many referring to it as Uptober based on past data and price movement, the result has yet to see much change. (Data from Binance)
Ethereum (ETH) Price Analysis On The Weekly Chart.
Ethereum’s price has struggled to regain its bullish momentum in recent times; despite the uncertainty that has befallen the crypto space, the price of ETH has yet to enjoy the measure of relief it had in previous weeks before its merge. ETH showed much strength on the weekly chart rallying from a low of 0 to a high of ,030 before facing rejection from that region.
After the price of ETH rallied to a high of ,030, the price has faced rejection to break higher to a region of ,500-,000, and the price has continued to struggle to stay afloat, considering how tough the crypto market has been lately.
ETH’s price was rejected to a region of ,600, where it had formed strong Support before rallying to a high of ,030. The price of ETH after rejection could not hold this support area which would be a good area to push prices higher as the price fell to ,400. With the price further losing ,400 support, the price battled to hold above ,200, acting as a key demand zone for prices.
Weekly resistance for the price of ETH – ,450.
Weekly Support for the price of ETH – ,200.
Price Analysis Of ETH On The Daily (1D) Chart
In the daily timeframe, the price of ETH continues to trade below the key resistance formed at 50 EMA after forming a descending triangle as the price attempts to break into a higher price range.
The price of ETH needs to break and hold above ,400 for the price to trend higher to a region of ,550 and possibly ,600, which is a key supply zone ETH price in recent weeks.
Daily resistance for the ETH price – ,400.
Daily Support for the ETH price – ,270.
Featured Image From Uopeople, Charts From Tradingview
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Bitcoin Price Could Possibly Rally Provided These Levels Are Crossed
Bitcoin price has been defeated by the bears after it traded around the ,000 mark for quite some time. Over the last 24 hours, the coin fell by 2.1% and in the past week Bitcoin price lost close to 5% of its value.
At the current moment, the coin was trading at the ,000 price level.
The price of the asset has been directly tied to the U.S Federal Reserve hiking the interest rates. Bitcoin similarly continued to face selling pressure on its chart.
The technical outlook continued to demonstrate a fall in buying strength.
The price of the asset currently has been demonstrating consolidation on its chart. If the coin continues to display minimum price action, Bitcoin price could again drop to the ,000 zone.
There is a tight zone within which the coin has been trading and without the help of the buyers, a move above the current resistance zone seems unlikely.
In such as case, the asset could travel south in a matter of the text trading sessions.
Bitcoin Price Analysis: One Day Chart
Bitcoin was priced at ,100 on the one-day chart | Source: BTCUSD on TradingView
BTC was trading for ,100 at the time of writing. After trading around the ,000 price level for a considerable period of time, the selling pressure intensified.
Overhead resistance for the coin stood at ,200 but in between Bitcoin could make a stop at ,600. A move above the ,200.
If the coin continues to move down due to selling pressure, it could break below the ,000 price mark and fall to trade near ,000.
A move above the ,000 price level can also help Bitcoin price rally to ,000. The amount of Bitcoin traded fell significantly in the last session indicating an increase in selling strength.
Technical Analysis
Bitcoin displayed a fall in buying strength on the one-day chart | Source: BTCUSD on TradingView
BTC noted a sharp fall in demand on its one-day chart. This meant that demand for the coin above the ,000 price level was high.
A move above the ,000 price mark could again bring the demand back for the coin which could increase the influx of buying strength.
The Relative Strength Index was below the half-line and was quite close to the oversold zone. There was a tiny uptick however, that didn’t mean buyers were back.
Bitcoin price moved below the 20-SMA line and that signalled that sellers were driving the price momentum in the market.
Bitcoin flashed sell signal on one-day chart | Source: BTCUSD on TradingView
The coin’s other technical indicators have also pointed towards bearishness on the chart.
Moving Average Convergence Divergence underwent a bearish crossover and displayed red bars under the half-line which was a sell signal for the coin.
Bollinger Bands read the price volatility and chance of a price fluctuation. The bands have tightened and that is a sign of incoming price volatility or an explosive price movement.
Once, the Bitcoin price rises above the 20-SMA then the coin might briefly move north on its chart.
Featured image from UnSplash, chart from TradingView.com
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Lucky Buyers Possibly Bag $8K Bitcoin During Early Morning Flash Crash
Highly volatile cryptocurrencies like Bitcoin, Ethereum, and other altcoins can behave irrationally at any given moment, especially when turbulence strikes. But what happened this morning on the US branch of Binance, was shocking for even those who have seen flash crashes happen in real time.
The result of a massive wick left on the BTCUSD chart was a violent trip to ,000 where coins were potentially exchanged for prices that are currently 87% lower than where Bitcoin is trading at right now. Here is a closer look at what went down, and what might have happened as a result.
Flash Crash On Binance US Takes BTC Back To ,200
If you’ve been in crypto for some time, chances are you’ve heard some horror stories. Other users have lost funds due to hacks, sent funds to the wrong address, or worse. What few ever experience, however, is getting caught up in a flash crash.
Related Reading | Bitcoin Price Sets New All-Time High Above ,000
We don’t mean a particular strong selloff, but a “flash crash” that sends the price of an asset diving so deep, it can often bring them back to close to zero.
While this morning Bitcoin price didn’t fall back to nothing, it did get a digit knocked off its price tag, and about 87% of the value per coin, according to the Binance US BTCUSD price chart.
The wick left behind on Binance US reached August 2020 levels | Source: BTCUSD on TradingView.com
The flash crash took the cost per BTC back to pre-bull market breakout levels from back in August 2020. It also was roughly an 87% fall from current prices, which was a larger drawdown percentage wise than the bear market from ,000 to ,200 at the low.
Bloody Bitcoin Wick Leaves Shock And Awe Behind
The hourly chart below is a better demonstration of how ridiculous the wick looked on lower timeframes as it was happening. The wick reached as low as around ,200.
The hourly chart shows how deadline the wick was | Source: BTCUSD on TradingView.com
Any lucky Binance US users with a limit order ready to go could have gotten filled during the madness, which also means that some poor pleb could have sold their coins at a cost of ,200 – significantly lower than the current price per Bitcoin, which just yesterday reached a new all-time high.
Related Reading | Bitcoin Price Prepares To Blast Off Back Into RSI “Bull Zone”
In the past, assets like Chainlink and even Ethereum have flash crashed down to nearly zero. Keeping orders ready on an exchange can take advantage of situations like the above. But these rare events aren’t predictable and can strike at any moment.
So which legend bought $BTC at 00 today?
— Simon Dedic (@scoinaldo) October 21, 2021
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
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New U.S Regulatory Agency Possibly In The Works To Oversee Crypto Exchanges Directly
The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, said Congress needs new regulatory frameworks for crypto exchanges. At present, no single agency is directly responsible for them, leading to an incoherent regulatory approach.
A possible solution lies in the formation of a new agency to oversee crypto exchanges directly. Alternatively, an existing agency would see an expanded role. Either way, regulatory clarity remains a central sticking point for the cryptocurrency industry. Can we now expect to move forward on the issue?
The U.S. Crypto Industry May Finally Get Regulatory Clarity
Newly appointed Gensler addressed the House Financial Services Committee yesterday. Among the many topics discussed was the fact that no single agency is in charge of crypto exchanges in the U.S.
The statement was Gensler’s first regarding his approach to cryptocurrency regulation. He pointed out that crypto businesses must deal with multiple regulators. The issue is compounded by a mishmash of rules at both the state and federal levels.
By putting in place a regulatory framework for exchanges, Gensler hopes more direct oversight will lead to a vibrant crypto marketplace that’s safer for investors.
“That could instill greater confidence. Right now there’s not a market regulator around these crypto exchanges. And thus there’s really not protection against fraud or manipulation.”
Chief Legal Officer at Coinbase, Paul Grewal, said he welcomes the opportunity to discuss how to get crypto regulation right. Adding, his firm is willing to share its knowledge on what works and what doesn’t.
Earlier this year, in responding to SEC allegations of selling unregistered securities, Ripple CEO Brad Garlinghouse said the regulatory landscape is a mess. Going further, he explained that Ripple deals with eight different agencies, and each has its own take on cryptocurrency.
“With 8 different govt agencies, each with their own (and sometimes opposing) views of crypto, U.S. market participants are facing conflicting policies and no surprise, some act conservatively.“
Robinhood Under Fire
Also on the agenda with the House Financial Services Committee was Robinhood. Lawmakers raised concerns over the possible conflict of interest that comes with zero commission trading apps.
Under its “payments for order flow” business model, the firm receives compensation and other benefits for directing orders to different parties for trade execution, with Citadel Securities executing near half of Robinhood trades.
Julian Emanuel, the Chief Equity and Derivatives Strategist at BTIG, said zero commission at the front end increases the likelihood of users trading.
“When you can engage in an activity that used to cost you something and no longer seemingly costs you anything, the inclination is particularly if you’re making money doing it, you’re likely to do it more often. It’s a perfect example of the law of unintended consequences.”
Similarly, accusations of “gameifying” trading have the same effect. Regulators widely criticized the use of confetti and other techniques to entice customers into trading.
In December last year, Robinhood agreed to settle with the SEC for million over charges it failed to disclose its “payments for order flow” model adequately.
Was the Massive Bitcoin Rally Engineered by a Single Whale? Possibly
Yesterday, Bitcoin broke above ,000 with a ,500 daily price candle and a push to above ,400 at the high. During the rally, however, there was evidence of a whale manipulating the crypto market for maximum profit.
Was this whale responsible for the Bitcoin pump, or were they simply well prepared in advance to take advantage of any major market movements?
Strategic Whale Makes Big Splash, Bigger Profit From Bitcoin Market Manipulation
Bitcoin price had been trading in a tight, sideways range for three months, but this week finally broke free and released pent up momentum. The rally propelled Bitcoin through resistance at ,500 with ease, sending the crypto asset rocketing higher above ,000 and beyond.
At the daily peak, BTCUSD had tapped ,419 on Coinbase Pro. It was that exchange that was potentially used as part of a whale’s sinister strategy to capitalize on the pump by manipulating the market.
Related Reading | This Golden Bull Market Factor Predicts Bitcoin Will Rocket to k
Whales and other market makers have the ability to move the market with their large-sized positions and enormous capital. One particular whale was spotted late in yesterday’s Bitcoin surge, using the index price of Bitcoin to make a huge splash on a completely different exchange.
According to order book data from crypto derivatives trading platform BitMEX, a whale was seen going short million worth of BTC across 22 separate orders.
Sell 44 million over 22 separate orders on mex. Get into posistion.
Then, market dump 1000 coins on Coinbase with max slippage to move index price.
I think we just saw someone do some crazy shit and make a ton of money. pic.twitter.com/5OkCX9KmjO
— lowstrife (@lowstrife) July 27, 2020
Moments after the position was filled to the whale’s satisfaction, a 1000 BTC market dump took place on Coinbase Pro, causing the BitMEX index price to crash.
BitMEX, a derivatives platform, utilizes a funding method tied to an index price that pulls from multiple sources such as crypto exchanges. If the price of the index deviates from spot price on these platforms, funding will adjust until the index price comes back to equilibrium.
But because BitMEX index price is based on Coinbase Pro and other platforms, it can be used to the right strategic actor’s advantage.
While it is impossible to know for certain, that appears precisely what took place. Such a sizeable leveraged short position coinciding with the rejection from above ,400 could have led to substantial profits being made.
Bitcoin BTCUSD Whale Manipulation | Source: TradingView
The initial rejection dropped Bitcoin’s price back to ,800. Short orders began filling from ,000 and up.
This isn’t the first time a single whale or strategic actor has been speculated to be responsible for a major Bitcoin pump. Back in April 2019, research showed that the rally may have been the result of a single actor with well-timed buy orders on multiple exchanges during the late, low-volume hours of the night.
That pump took Bitcoin from ,000 to ,000 before it reversed, with whatever whale behind it taking profits all the way up.
Related Reading | How Crypto Market Fear And Greed Be Used Profitably As A Trade Trigger
If the last time around is any indication of what’s to come, this pump may only be just beginning, and this whale will strategically take the largest amount of profit using manipulation at each major pullback.