Author: Cristian Lipciuc

Cristian Lipciuc is a blockchain journalist working with startup companies across multiple domains such as freelancing, app development & cryptocurrency. Cristian specializes in applied blockchain technologies, cryptocurrency integration, the adoption of new technologies by governments, and cybersecurity.

Categories
Blockchain Cryptocurrencies DeFi

Cosmos Investors On Track To Implement Inter-Blockchain Systems

Blockchain technology has led to the rise of DeFi and better banking technology. However, since Ethereum implemented the features that allow this, more and more companies have created their own blockchains and restricted tokens created on it from being accessed by those using other technologies.

Now, Cosmos – the company behind the ATOM token – has voted to include this protocol, ending it’s isolation from those not in the Cosmos Hub.

The IBC protocol aims to decentralize DeFi once again, by allowing communication between blockchains without having to go through extra steps.

Overwhelming Support

The vote for enabling IBC passed with a clear majority in favour of implementation.

According to Zarko Milosevic – the chief scientist at blockchain consulting firm Informal Systems – the move will allow any 2 IBC-enabled blockchains to pass information back and forth permissionlessly. This would also allow DeFi firms who deal in token exchanges and the like to use products confined on an application-specific blockchain from a completely different blockchain.

“At its core, IBC is a method of securely exchanging data between two independent (sovereign) blockchains. This means that any two blockchains that support IBC can send communication back and forth in a permissionless manner. Previously, ATOM was relegated to the Cosmos Hub with regard to its utility as a governance token. It is now transferable and interoperable with all blockchains that support IBC.”

Like with any technology, the adoption of a new protocol may have a domino effect. For every Cosmos that decides to adopt IBC and open up for more DeFi business, there are probably 2 more companies waiting in the wings to see if it catches on. Hopefully, this trend will catch on – and DeFi banking will gain on traditional banking systems in leaps and bounds.

Categories
Australia Europe Gold Coast Scams

Modern Assets Australia Sued For 800K After Deal Gone Bad

Modern Assets Australia, a cryptocurrency advisory and research company based on the Gold Coast, is being sued in the Federal Court of Australia for $800k plus damages by a French man by the name of Alexandre Raffin, following a cryptocurrency buying deal that fell through and ultimately ended up with him getting scammed.

Agreement Not Reached, Direct Contact Established

Alexandre Raffin, who runs the cryptocurrency brokerage firm GAINS Associates out of Paris, was originally supposed to receive $800k worth of the cryptocurrency Klaytn from Mordern Assets, in exchange for fiat. However, the deal went nowhere for an undisclosed reason – and as a result, Raffin was introduced directly to the supplier.

A new deal was reached with the mysterious supplier, who was allegedly supposed to provide 937,500 Klaytn in exchange for about $93k.

Unfortunately, the mysterious contact made off with the money, and went off the grid, deleting his messaging accounts.

At the time, Klaytn was only worth about 10 cents – but the cryptocurrency has increased in value 30 times over. In other words, if the deal had not fallen through, Mr. Raffin and his associates would have been nearly 2 million in the green, seeing as $93k worth of Klaytn at the time is now worth around $2.8 million.

Mr. Raffin says that although he’s been in the crypto world for a while – and as a result, is no stranger to losses and risky moves – this was a huge loss, even for him. He’s paid investors for the loss out of his own pocket, which was a big blow to his assets.

“I’m a pretty tough guy. I’ve become quite desensitised to money through these years in crypto. You lose some, you win some. But this was hard, even for me. We thought they did their due diligence. It seems they didn’t do research on their own contact. Maybe they’re just very good at marketing.”

Mr. Raffin originally enlisted a blockchain investigation company to help him get his assets back – but when that failed, he took it up with the courts.

On their end, Modern Assets have denied the allegations and have stated via a spokesman that they would be “vigorously defending” themselves in the Federal Court (which is yet to determine the claim).

Categories
Bitcoin Cryptocurrencies Scams

UK National Ordered By US Court To Pay Millions To Defrauded BTC Customers

The U.S. District Court for the Southern District of New York has ordered Benjamin Reynolds – assumed to be based out of Manchester  – to pay a total of $571 million due to his alleged scamming of BTC buyers back in 2017.

The court order in question was decided upon in cooperation with the Commodity Futures Trading Commission (CFTC) and consists of $143 million to be paid back to scammed customers, as well as a civil monetary penalty of $429 million.

False Representation

Reynolds allegedly used multiple social media channels, a website and email address – among other methods of communication – to request at least 22,190.542 bitcoin – which were worth around $143 million at the time, from over 1,000 customers around the globe. 169  of these individuals are assumed to be living in the U.S., although there may be others who remain unknown.

Allegedly, Reynolds pretended to be running a company that traded the Bitcoins customers sent him, which were traded around by “specialized virtual currency traders” on a variety of platforms and who generated “guaranteed trading profits”.

No matter how great a trader is, everyone takes a loss sometimes – so this line should have tipped off most people regarding the nature of the “business”.

The CFTC also stated that although they have done their best to help victims of the purported scam recover their funds, they cannot guarantee the return of any funds – seeing as the accused may not have enough funds to cover the payments, if any.

“The CFTC cautions victims that restitution orders may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure wrongdoers are held accountable. “

The CFTC also thanked the British Columbia Securities Commission and the UK Financial Conduct Authority for their help in the investigation.

Categories
Australia Bitcoin Scams

BTC Sports Betting Suspect Peter Foster Out On Bail

Back in August, alleged serial scammer Peter Foster was arrested by Queensland law enforcement over an international sports betting scam worth millions of dollars in BTC.

Peter Foster has now been released on bail (with strict conditions), due to issues regarding the jurisdiction in which he should be tried.

After being arrested in Queensland, he was extradited to Sydney to face the charges brought against him over high-roller bets that were apparently never placed.

Alleged Repeat Offender

At the time, Peter Foster was charged with “five counts of publishing false and misleading material to obtain an advantage, 10 counts of dishonestly obtaining financial advantage by deception, and one count of knowingly dealing with proceeds of crime with intent to conceal.”

However, it turns out that Peter Foster should have been charged in Queensland – not in NSW – which is why NSW will be allegedly dropping the case, citing a lack of reasonable prospects for a successful conviction. The charges, however, will remain.

Until the proper jurisdiction for the court case can be confirmed, Peter Foster was granted bail under very strict conditions. Currently, Foster is scheduled to face the court on the 22nd of April.

Although slightly wary, Magistrate Margaret Quinn did not oppose the request for bail – provided the suspect is kept under close observation.

“[It is] a risk, but not an unacceptable risk. Mr Foster, I say this to everybody: if you breach these conditions you may not get bail again.”

Under these conditions, Foster will have to remain at his home in Dover Heights, except for medical emergencies, consulting with his legal team, or reporting to the police – the latter of which he will have to do daily. He will also be required to wear an electronic monitoring device, cannot access the internet, and will have his passport temporarily confiscated.

In addition, Peter Foster must deposit a $180k surety before being released on bail.

Categories
Australia Cryptocurrencies Cryptocurrency Law

BitMEX Hotshot Greg Dwyer Still In Talks With U.S. Authorities Regarding Surrender

Following the surrender of BitMEX founder Ben Delo to US authorities, Greg Dwyer – another senior employee of BitMEX – is still in talks regarding his surrender, and has not been taken into custody.

In Breach Of Sanctions

The Australian national from Sydney is accused – alongside CEO Ben Delo and high-profile individuals affiliated with BitMEX, namely Sam Reed and Arthur Hayes – of violating Anti-Money Laundering (AML) regulations, as well as allegedly allowing sanctioned individuals to access the services BitMEX offered.

More precisely, the US Department of Justice (DOJ) accused the individuals involved of “deliberately and willfully breaching money laundering laws including knowingly accepting fake passports by traders from Iran”. They are also accused of breaching US sanctions and letting bad actors engage in money laundering on the BitMEX platform. If found guilty, the defendants could end up facing up to 5 years behind bars. Mr Reed and Mr Delo have turned themselves in and are currently out of custody, having paid bail. Both founders have pleaded not guilty on all counts.

Arthur Hayes has reached a deal with US authorities and will be turning himself in after the Easter holiday in Hawaii. He will then be immediately released on bail, after handing over the necessary $10 million.

Greg Dwyer, however, is at large in an unknown location – last seen in the Bermudas.

However, Mr. Dwyer’s’ lawyer – Jenna Dabbs – has stated that he intends to defend himself in court.

“We have been in touch with the government on this matter and Mr Dwyer has every intention to defend himself in court against these meritless charges. (He) always worked collaboratively with his colleagues, and in good faith, to comply with all applicable regulations and requirements”.

Mrs Dabbs has also stated that Mr Dwyer was not the one responsible for setting up the AML side of the business.

Categories
Bitcoin Industries Payments

Tesla Enables Bitcoin Payments

Earlier this year, Elon Musk announced that Bitcoin would be accepted as payment for Tesla cars – and now, the option has been made available to customers in the US.

In a follow-up tweet, Musk added that the futuristic hybrid cars would be made available for purchase in Bitcoin sometime by the end of this year.

Bitcoin Will Not Be Converted To Fiat

Elon Musk has also stated that the Bitcoin received in exchange for Tesla cars will not be converted to fiat.

“Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”

Following the company’s $1.5 billion investment into Bitcoin earlier this year, it seems the top brass has decided to continue investing in Bitcoin, undeterred by prior twitter spats which resulted in tongue-in-cheek emojis directed at notorious bears.

The company has also added a FAQ for Bitcoin payments to their website. Most of the advice offered is common sense advice, such as to only send BTC to Tesla’s BTC address.

The car’s price will remain unchanged and tied to the US Dollar. As a result, the amount of BTC needed to purchase a Tesla may vary wildly from one day to another – and if a refund is requested, the amount refunded may also be substantially less than requested.

Elon’s tweet has gone viral, and the comments are full of good-hearted quips about Tesla cars being the new Lambo and the like.

Following this announcement, we may start seeing even more high-profile companies enabling cryptocurrency platforms.

Unfortunately, Dogecoin payments have not been enabled yet, and there have been no reports of Tesla plans to enable the endearing cryptocurrency.

Categories
Cryptocurrencies Cryptocurrency Law Ripple

New Developments In SEC Case Possibly Lean In Favour Of Ripple

In a video published on YouTube by Attorney Jeremy Hogan – who, according to the video – attended the discovery hearing in the SEC vs Ripple case, the judges dropped some hints that they may be leaning in favour of Ripple.

Although no court documentation has been made available yet – and as a result, the conclusions drawn from the video must be approached with caution – Judge Sarah Netburn, who assists Primary Judge Analisa Torres in the current case, has made two comments in the court case that may show that Ripple already has the upper hand.

The Utility Of XRP Is Key

According to Attorney Hogan, Judge Netburn allegedly interrupted the ongoing debate to say that – as far as she can tell – XRP is not only an asset with monetary value but one with a specific utility that is not a store of value.

“My understanding about XRP is that not only does it have a currency value, but it has a utility and that utility distinguishes it from bitcoin and ether.”

 Later on, Judge Netburn also reportedly inquired whether, according to the SEC, all those who’ve sold XRP have sold illegal securities – to which the SEC attorney responded that according to Section 4 of the U.S. Securities Act, only Ripple and its affiliates could be accused of illegal sales.

Hogan himself weighed in on the proceedings, stating that since a currency and a security are fundamentally different.

“No matter what the SEC may try and argue, a currency and a security are, by definition, in opposite … These are two different things. […] If I’m Ripple, I’m feeling pretty good that my mediator and consulting summary judgement judge just said on the record what I essentially argued in my pleadings.”

In late January, Ripple issued a FOIA request demanding to know how Ethereum (and Ethereum’s treatment by the SEC) differs from XRP. According to these alleged statements, the difference seems to have been found in court. At the time, Ripple argued that XRP is not a security, and as such is outside of the SEC’s jurisdiction.

Categories
Australia Blockchain DeFi

Unido Partner With Moonstake To Cement Their Leading Staking Position

Unido – an Australian Polkadot-powered crypto custody service and enterprise platform has joined forces with Moonstake, whose goal is to become the largest staking platform in Asia.

Staking and Hedge Funds

Unido will gain access to the staking vaults owned by Moonstake, which will allow their clients to gain extra yields through their DeFi vaults. At the moment, Moonstake supports staking for cryptocurrencies such as Cosmos, IRISnet, Ontology, Harmony, Tezos, Cardano, Qtum, Polkadot, Quras and Centrality.

In return, Moonstake clients will have access to a wider range of custody solutions, brought to them by Unido’s network.

Unido’s leadership comes from a strong corporate background – with leading members having a history in Macquarie Bank, Wipro and Goldman Sachs.

Michael Swan – the CCO of Unido – commented on the partnership, stating that the move will be mutually beneficial.

“Unido is committed to delivering a diverse marketplace of DeFi options within the Unido EP dashboard. I’m very excited to include Moonstake staking pools in our dashboard, given their strong market position and compelling yield performance to date. We look forward to providing enterprise-grade custody solutions to encourage further enterprise and hedge fund delegations to Moonstake’s platform.”

In return, Lawrence Lin – the CEO of Moonstake – thanked Unido for the trust shown by the adoption of Moonstake’s SDK API connection, and went on to say that this is only the beginning of a long and fruitful partnership.

“Moonstake appreciates the trust Unido has in our staking solution to utilize our SDK API connection, and we look forward to collaborating further with them to spread awareness and accelerate the adoption of blockchain and distributed ledger technologies globally.”

Doubts have been cast over the ability of DeFi to truly replace traditional banking solutions – but hopefully, Unido will be one of the companies to dispel those doubts.

Categories
Blockchain NFTs Scams

Guggenheim Museum Looking For NFT-Read Intern

The Guggenheim art museum is one of the world’s top repositories of art — and according to new MBA internship opportunities, they may be looking to add some NFTs to their collection. 

Looking To Get In On The Action

Applicants to the internship in question will have to work on the “evaluation of non-fungible token (NFT) based art, a nascent, fast-growing, highly scalable area of the art world.”

They will have to define how blockchain may change the way a museum defines its collection strategy — and more precisely, in what ways should the Guggenheim become a digital experience, alongside more traditional art forms such as paintings.

Just yesterday, a piece of virtual real estate created by artist Christa KIM as an NFT was sold for $500,000. Not to mention the Beeple NFT that sold for over $6 million worth of ETH. 

 Now, the Guggenheim seems to be looking to get in on the action and snap up a few of these NFTs themselves. 

NFTs have soared in popularity within the past month or so —  and generated quite a bit of controversy in the process. While many say that the so-called NFT gold rush is purely a result of the ever-changing nature of art. Others say that they are a fad that will soon pass. 

NFT scams have also started popping up —  for instance, artist Derek Laufman has had his art stolen and made into NFTs without his permission.

 “I was basically kind of annoyed that somebody had, quote, unquote, verified me as on that platform. I dealt with having my art stolen for years. And I’m sort of numb to that. But when somebody is claiming to be you … that kind of, you know, pisses me off.”

But whether NFT should stand for Non-Fungible Token or New-Fangled Token, the past has shown that widespread adoption of crypto assets by well-established companies has only made their value increase – and names like Guggenheim, Sotheby and Christie’s tend to carry weight in the art world.

Categories
Blockchain Crypto Art NFTs

Creator of $500k NFT Mars House Believes Augmented Reality Is Just Around The Corner

NFTs are all the rage now. And although most NFT artworks are simply a rather non-immersive picture or video, the Mars House isn’t. This piece of virtual real estate is “comprised entirely of light”, and “the visual effects of her crypto-home are meant to omit a Zen, healing atmosphere”. It’s also accompanied by a musical score provided by The Smashing Pumpkins – so it’s also yet another musical NFT project.

Digital Real Estate

The Mars House – which recently sold for $500k – was created by artist Krista Kim, a contemporary artist and the creator of the art movement known as Techism. True to the tenets of her vision in which the real world and cyberspace are slowly fusing together, the Mars House can be ported into  a metaverse (virtual world) of the buyers’ choice.

Kim doesn’t see this as a one-off experience though – in fact, she predicts that in the not-so-distant future, we may be living in Augmented Reality.

“Right now, a lot of the [NFT] art that’s currently available on platforms, it’s a very limited parameter of how you can present the art. It’s presented, basically, as a digital file, a beautiful drawing or video on your screen, but my intention was to look beyond that. For me, I actually foresee that we will be living in an augmented reality lifestyle within a very short period.”

Kim commented that her artwork is the beginning of the next generation of NFT art – and that in the future we should expect to see digital customization to people the same way we currently see tattoos.

In fact, this digital customization has already started, with fashion accessories that you can customize by coding them – and coupled with events such as Crypto Fashion Week, the design choices of people both in reality and in virtual environments may be closer than ever to fusing together.