This Week in Crypto – Bitcoin Blasted by New York Post, Tether Admits BTC Investments

Binance Coin (BNB) has climbed unrealistically to the seventh largest market-cap crypto.

In January, Binance Coin traded at $6, which was well below its all-time high of $24.50 a year ago. BNB lost over 75% of its value in 12 months and suffering a similar fate to other crypto currencies.

This month BNB reached a new high record where it broke the $29 mark. This is a record for this year with a 380% increase this year. Is Binance legit with this kind of increase of their own coin?

Tether invest in BTC

2019 has been profitable for most cryptocurrencies; however, BNB has continually outperformed other coins.

BNB may lack flashy quality and any of the BTC status, but it offers investors a sense of utility beyond just price speculation.

With roots in the main cryptocurrency exchange, BNB is growing into one of the more powerful areas in the market. The result has been a significant increase in demand for Binance Coin.

Tether Admits BTC Investments

This is the sort of thing that doesn’t come to light in a Bitfinex review. Still the New York Attorney General Office, Tether and Bitfinex are still in a wrangle.

Tethers management and ownership overlaps into Bitfinex, and they have now openly said the company used reserves to invest in BTC and “other assets.”

This is the latest insight according to documents in the court proceedings concerning the ties between Bitfinex and Tether.

The NYAG earlier last month issued a ruling against Bitfinex. It alleged they blended funds from customers and borrowed a significant financial amount from their sister company.

This was to cover seized funds seized. Jean Louis van der Velde, Bitfinex CEO replied. The trial is “full of inaccuracies and false claims.”

During proceedings, they revealed new details of activities. For example, cash backed only 74% of the outstanding Tether Tokens in the reserve.

In February, Tether changed the website wording to state its reserves included “currency, and traditional cash equivalents.”

It also claimed there were “other assets and receivables from loans made to third parties.”

Tether always claimed it was 100% guaranteed by “traditional currency.” The statement used to read, “Every tether is always backed 1-to-1, by traditional currency held in our reserves.”

Audience transcripts said: Tether invested in other areas rather than cash or cash equivalents. This was including BTC.

New York Post has attacked Bitcoin

Bitcoin Blasted by New York Post

The New York Post has attacked Bitcoin, again. In his latest article on crypto assets, journalist John Crudele used less than 100 words to claim the most popular digital asset by market cap, will ultimately represent $0.

This isn’t the first time the New York Post has published a Crudele attack on Bitcoin. The crypto space didn’t respond favorably to the criticism. BTC is used to being attacked, it disrupts global power structures.

With some of the world’s most intelligent computer scientists are working on the protocol, and BTC’s followers are well equipped to jump to the defense of BTC.

The New York Post reporter apparently took a total of two minutes to write proof and publish his latest masterpiece.

With the title, “Bitcoin will soon be worth zero.” Crudele tackles all too familiar themes. It briefly highlights use of Bitcoin by criminals:

Until then, criminals can use it, or any other digital currency to transfer money around the world.

There is no evidence of the criminal use. He also does not mention, only a fraction crypto users do so for illegal purposes. This tiny percentage is caught by the efforts of the judicial police.

New guidlines for crypto tax

Crypto Tax Guidelines

The Internal Revenue Service recently announced they would set the new crypto tax guidelines.

The IRS identifies crypto as property and not as a currency. This means it is will be taxable to buy and sell any cryptocurrencies.

As a result, the tax rules applicable to property transactions. This is the same if you have the sale of any collector‘s items or vehicles. These also apply to BTC and other alt coins.

The fair market value of any transactions needs reporting and is to be measurable in US dollars.

If you bought a famous Bitcoin pizza, you would have the Bitcoin available in dollars equivalent to the costs of the pizza to give it a fair market value.

The IRS Commissioner said in his latest address, the agency “has a priority” to provide the correct guidance. The Directive addresses acceptable means of calculating the cost base, cost-based allocation and tax treatment of crypto forks.

Recent Twitter surveys show the vast majority of crypto investors refuse to report taxes. They are also prepared to face harsh penalties if the IRS discovers their unreported income.

Investing Crypto is risky to begin with because the market is still emerging, and the technology is not fully tried and tested.

However, it is ludicrous to avoid paying taxes on cryptocurrency. Exchanges will actively work along with the IRS to provide client details.

They will use this information to compare reported profits or losses. Investors who do not report correctly are risking of a full audit.

Stolen ETH Deposited to Another Exchange

According to one analysis, part of the stolen Ether (ETH) from a New Zealand crypto exchange has been part of a transfer and deposit into another crypto exchange.

Coinfirm, the startup of Crypto Anti-Money Laundering, tweeted on May 20th.

According to the company, more than $7.778 million of the stolen Ether was transferred to a new address and 10 ETH valuing over $2,500 moved to a hot wallet on another exchange.

Whale Alert, which is a Twitter account dedicated to large crypto transactions. They claim 500 of the stolen Ether were moved to EtherDelta, and another 1,000 moved to an unknown wallet

AMLT the blockchain data crowdsourcing platform. They also claimed almost all tokens other than ETH were already on exchanges.

The news arrives after Cryptopia named David Ruscoe and Russell Moore of the Grant Thornton New Zealand consulting and auditing firm as the nominated liquidators last week.

In January, Cryptopia first told users it was experiencing unplanned maintenance. The company were posting updates before officially reporting the breach.

Elementus an analysis blockchain company an estimated $16 million of ETH and other tokens were stolen during the attack.

After this, they traced $3.2 million to being liquidated on exchanges such as EtherDelta, Binance and Bitbox.

Binance, one of the major crypto exchanges, was also hacked. They lost over 7,000 bitcoins in the attack.

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