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BitClub Network Promoter Pleads Guilty For His Involvement In The $722M Scheme

A promoter in the BitClub Network Ponzi scheme worth over $700 million has pled guilty and faces up to five years in prison.

The post BitClub Network Promoter Pleads Guilty For His Involvement In The $722M Scheme appeared first on CryptoPotato.

Republished by Plato

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Joseph Frank Abel has pled guilty regarding his involvement in the notorious Bitcoin mining scheme BitClub Network worth over $700 million. The development follows the alleged owner’s arrest in June and a Romanian programmer also admitting to his participation in July.

Another BitClub Operator Pleads Guilty

According to a statement from the US Internal Revenue Service (IRS), Joseph Frank Abel has admitted via video conference to conspiring to offer and sell unregistered securities and subscribing to a false tax return in connection with his role in BitClub.

The IRS described the Bitcoin mining network’s operations as a “fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools.” Additionally, BitClub operated as a classic Ponzi scheme as it “rewarded investors for recruiting new investors.”

Abel had a vital role in the project as a large-scale promoter. Despite knowing that the network and its operators haven’t registered the company’s shares with the US Securities and Exchange Commission (SEC), he sold BitClub shares to countless victims.

Abel also admitted failing to report on a Form 1040 US Individual Income Tax Return for the tax year 2017. At the time, the income he earned from his role at BitClub was more than $1 million in cryptocurrencies.

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The sentencing is scheduled for January 2021. The maximum penalty for selling unregistered BitClub shares is five years in prison and a fine of $250,000. For his tax charge, he faces up to three years in jail and a fine of $100,000.

BitClub’s Rise And Fall

Although it failed to provide the promised payouts to investors, the Bitcoin mining Ponzi scheme remained active for over five years. From April 2014 to December 2019, BitClub Network managed to defraud at least $722 million from investors, according to the IRS.

However, the number of complaints filed from victims quickly grew. Ultimately, the US Department of Justice, with the assistance of the Federal Bureau of Investigations (FBI), brought down the scheme and charged the alleged operators.

One of them was Russ Albert Medlin. Several reports linked him to be the actual owner of the scheme. As CryptoPotato reported recently, he was captured in South Jakarta, Indonesia, where he was also charged with sexual assault on minors.

Shortly after, a Romanian programmer Silviu Catalin Balaci pled guilty for his involvement in the scheme after being arrested in Germany in December 2019. Balaci’s role was similar to Abel as he promoted and sold unregistered company shares. As such, he also faces up to five years in prison and a maximum fine of $250,000.

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Source: https://cryptopotato.com/bitclub-network-promoter-pleads-guilty-for-his-involvement-in-the-722m-scheme/

Blockchain

Pollen: Simplifying decentralized finance and asset management

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One of the biggest names – and the pioneer — in the fast-growing decentralized finance ecosystem, Pollen leads the pack for investors who are seeking to maximize their digital portfolio and more.

A Decentralized Autonomous Organization (DAO), Pollen allows investors to “customize” their asset management preferences without the need to comply with a centralized decision-making process, giving them greater flexibility and authority.

Pollen is on a campaign to “rethink” asset management, reduce market risk, and create safety nets for market uncertainty. Its platform allows others to select, maintain and organize custom asset pools that are dynamically rebalanced and can be customized for a specific use.

Unlike in a centralized management system, where clients have limited options and control on how to manage their assets, Pollen’s decentralized system provides more choices and authority.

DeFi for the people

With Pollen, participants collectively have better control over their digital asset pools, either directly or by entrusting their voting authority. The DAO platform’s community-governed protocol gets rid of centralization points and enhances portfolio performance while generating a new yield-bearing asset class.

Pollen was created in the belief that portfolio management is better maintained by members who have a significant stake in the business, where decisions are clear and straightforward, and where all stakeholders have sovereignty and supervision.

Pollen’s platform is specifically conceptualized to maintain its decentralized appeal by setting in place reputation-based governance and incentivized liquidity infrastructure.

Its platform’s capabilities allow people to deploy a custom governance model that enables others to launch their own asset indexes. Custom asset indexes can be deployed for specific use cases like Synthetics or NFT Indexes.

Pollen has an impressive track record in DeFi and blockchain. It is DeFi by the people and for the people.

 

Image courtesy of Pollen DAO/YouTube Screenshot

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/blockchain/pollen-simplifying-decentralized-finance-and-asset-management/

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Blockchain

Bad guys can’t cash out their loot in 2016 Bitfinex hack

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Assets stolen from Bitfinex crypto exchange in a hacking incident back in 2016 will take over a century to be cashed out, blockchain intelligence firm Elliptic said in its latest report.

On Thursday, the company published a statement about the infamous hack that resulted in Bitfinex losing 120,000 bitcoin (valued today at around $7 billion). It detailed nearly 80% of the illegally obtained funds are still in the hacker(s) wallet.

The remaining 21% have been moved around by the malicious cyber attackers that have only managed to launder 4% of their total haul, which is approximately $270 million.

A roadblock for the attackers

Elliptic pointed out that the reason for their thesis is the evolution of crypto tracking tools, regulations, and law enforcement methodologies that make stolen or ill-gotten digital assets very challenging to cash out today.

The intelligence company explained that the hackers used “peel-chains” to exchange the stolen funds. In this method, crypto tokens are moved around numerous times, moving fast from wallet to wallet, and only a small amount of the bitcoin is “peeled off to their actual destination along the way.”

Back then, it was extremely hard to track crypto-assets laundered using this method. But today, the emergence of automatic tracing systems capable of determining the ultimate source or funds in an address makes the job a lot easier for the authorities.

The hacker after the cyber attack

After the successful attack on Bitfinex in 2016, the laundering process started in 2017 through the largest darknet market that time – Alphabay. Later that year, it was shut down by law enforcement, prompting the move to Hydra – the biggest illegal marketplace today.

Cryptoslate cited part of the report from Elliptic, stating, “After a hiatus in 2019, the launderers returned to Hydra in 2020 and are currently depositing $3 million of the stolen bitcoin every month.”

According to the report, to date, there is now approximately $72 million worth of the stolen cryptocurrency sent to Hydra.

 

Image courtesy of Cointelegraph News/YouTube

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/blockchain/bad-guys-cant-cash-out-their-loot-in-2016-bitfinex-hack/

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Blockchain

Three reasons why Cardano is going on this price trajectory

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Rising trade volume across spot and derivatives exchanges have supported Cardano’s ongoing price rally over the past few weeks and months. The altcoin, at the time of writing, was trading at the $2.32-level, with the crypto gaining by 20% in 24 hours to touch one ATH after the other. The aforementioned hike in price and trade volume were evidenced by the increase in market capitalization as well.

Thanks to the aforementioned factors, Cardano is now ranked third among the market’s top-10 altcoins, based on data from CoinMarketCap.

What’s more, based on the attached chart, currently there is more ADA staked than in the past 30 days. In fact, it is at nearly half a million. With 100% of its HODLers profitable at the press time price level, ADA’s rally is likely to be a long one, especially with the altcoin’s staking rewards data offering a similar conclusion. With a relatively high percentage of ADA staked, a direct relationship has emerged between staked ADA and ADA’s price.

While the current on-chain sentiment is slightly bearish, the net network growth stood at a positive 5%. Further, while there has been a slow drop in large transactions, that could mean that more retail traders are buying ADA v. HODLers and institutions. Unless trade volume drops and cascading sell-offs occur, the price is likely to hold at its current price level.

In the case of Cardano, the concentration by large HODLers has remained largely below 30% and this is key to its ongoing rally. Top memecoins and altcoins that are rallying like DOGE, LINK, BNB, and ETH, among others, have a high concentration by large traders. This is essential to supporting the price at its key levels.

$80 billion worth of large transactions have transpired over the past week and the inflows are anticipated to increase even more. Less than 15% HODLers have held ADA for over 12 months, despite YTD gains of over 500%. And, ADA’s HODLers are lower in numbers than expected. Ergo, the short-term ROI could be the key reason for the short HODLing duration.

Based on data from Messari, the ROI over the past week was nearly 40%.

Why Cardano's price rally is a long one

ADA short-term ROI || Source: Messari

In the past year, the ROI was over 700%. This is a relatively high gain for HODLers, despite several dips.

ADA’s latest developments and the increasing demand in the second phase of the altseason make it one of the hottest altcoins to buy and HODL. In fact, one can argue that ADA continues to remain undervalued at the press time price level.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/three-reasons-why-cardano-is-going-on-this-price-trajectory

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