This Week in Crypto – Exchange Owner Found Dead, Libra Coin Idea Copied, Bitcoin Bubble Bounces

Bitfinex Still Accessible to US-Based Traders

It appears traders, which are United States-Based, can still gain access to the Bitfinex crypto trading services. This is on top of claims the company isn’t active in the State of New York.

Sources remained anonymous, yet they made the information available to “The Block” they accessed Bitfinex inside New York State.

This access occurred because the person who created the account just said they were not a U.S resident.

Bitfinex crypto trading services

The Bitfinex services were supposed to have ceased back in 2017 because of banking difficulties.

U.S traders were told to stop using the service by the end of a determined grace period, yet by declaring they live outside the country, they could carry on using the platform.

As it stands, Bitfinex is still wrapped up in legal battles with the state of New York over a supposed loan of $850 million between the exchange and Tether.

Like any case. Bitfinex admits they never served any individuals from NY.

Defunct Exchange Owner Found Dead

BitMarket was a Polish crypto exchange, which is no longer in operation. Tobiasz Niermio purchased the exchange a year after it went into operation.

At the start of July, the exchange claimed they were suffering from a lack of liquidity.

It ceased operations because of this, and Polish users were faced with a message stating the exchange had ceased operations, and they would be advised on any progress.

Around 400 users of the exchange were affected by the collapse. Even Niermio said he was affected and lost everything.

It was on July 25, 2019, the local police said he was found dead close to his home in Olsztyn.

He was found with a wound to the skull, yet reports are claiming he committed suicide. Police are still trying to determine the cause of his death.

Libra Coin by Facebook

Libra Coin Idea Copied from Co-authored Paper

Some things just stick to Facebook. Again, they are hitting the news with their Libra Coin but for a very different reason.

It has been claimed by Alexander Lipton that the Libra whitepaper concepts of Libra were copied from work he had done on such a coin concept.

In his paper titled “Digital trade coin: towards a more stable digital currency,” which he wrote back in July 2018, he says the structure of Libra is the same as what was written by Sandy Pentland, Thomas Hardjono and himself.

Adding to this, his work was not cited anywhere in the document for Libra. If this wasn’t enough, there were other speculative ideas that Libra has parts of its operation, which were taken from a decentralized public network project “Hedera Hashgraph.”

While this case is a standout, it is reported that around 16% of all ICO white papers are flagged as being fraudulent with returns that are impossible to achieve and are covered with plagiarism.

The IRS Does Know of Your BTC Trades

The old saying there is nothing certain in life apart from death and taxes. This holds true because buyers of crypto’s and Bitcoin who think they can avoid taxes have a rude awakening.

The IRS is now dishing out notices to over 10,000 crypto investors who have not divulged their trading in crypto.

This has come about from Coinbase who has submitted reports on 13,000 user accounts at the request of a federal court order.

The reality may not be too much for investors to worry about, yet it shows that these investments are not as anonymous as once believed.

For small investors of less than $20,000, the likelihood they will be contacted is small.

What is often forgotten in a rush to make a crypto trade is that every transaction is verified and viewable by anyone? This makes it easy for government agencies such as the IRS to perform their tracking.

Many have been led to believe in the case of money laundering, it is easier to use crypto, yet this is proven wrong, and cash is less traceable than Bitcoin.

Bitcoin Bubble Bounces Better than Dot-Com

With all the difficulties on the price of Bitcoin over the last few months, there has been lots of scrutineering on its performance.

Crypto analysts are now concluding that the Bitcoin Bubble bursting recovered much faster than the dot-com days with the likes of Amazon.

It has been shown that even with the two assets being very different, they both faced times of being traded on by nothing more than speculation.

When compared, the crypto winter was much more bullish than the checkered past of Amazon, and BTC is further ahead in the stage of its existence.

However, when looking at many other alt-coins, the picture is very different. A bull run for the leading cryptocurrency won’t extend to the majority of these coins, and there will be casualties.

The speed at which BTC is progressing is far faster than anticipated when compared to the breakout of the internet and the early dot-com era.

Bakkt future platform

Bakkt Ready to Launch in Q3

The BTC futures platform Bakkt is still in development and is heard to be ready for launching later in Q3 of this year. However. Sources say Bakkt still requires to be approved from the New York Department of Financial Services (NYDFS) to approve the companies warehousing service.

The cold storage solution that will be used for storing private keys is slowly gaining approval but has yet to be given the green light. Once they receive this, they can operate as a limited-purpose trust company.

Along with this, there is lots of supposed hype and willingness to adopt this product as soon as it launches Bakkt states.

The launch has been delayed several times, yet this time it seems they could be finally releasing one of the most anticipated BTC services.

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