aml - Pwim.Net

What are the 7 Key Takeaways from Facebook's Libra Hearings?

The debate on Facebook’s Libra continues with the hearing with the Senate Banking Committee (“Senate hearing”) on 16 July and the United States House Committee of Financial Services (“House hearing”) on 17 July. Here are the 7 key takeaways from the two hearings.

Libra is centralized

Regulators believed that the composition of the Libra Association has made Libra “highly centralized”. In the House hearing, New York Congresswoman Alexandria Ocasio-Cortez (AOC) questioned if the members of the Libra Association is democratically elected. David Marcus, the Head of Calibra said that the members are not elected but was governed by membership standards. When AOC realized the investment of $10 million as the criteria of founding members, she concluded Libra as “a currency controlled by an undemocratically-selected coalition of largely massive corporations.”

With regards to the eligibility of using Calibra and Libra, Marcus responded to Representative Sean Duffy’s question that anyone can use Calibra and Libra in jurisdictions where Facebook operates after they performed KYC procedures. However, when Marcus was asked by North Carolina Representative Alma Adams on whether any user can become a node on Libra blockchain, he denied and said that only large corporations with blockchain technology or finance backgrounds can become a member of the Libra association and a node on the Libra blockchain.

With the lack of decentralization, Representative Warren Davidson slammed Libra in the House hearing suggesting Libra falls in the same category as a run of the million sh*tcoins.

Can Facebook protect data privacy with its notorious track record?

In the Senate hearing, Ohio U.S. Sen. Sherrod Brown commenced with the poor history of Facebook in privacy protection, saying “Facebook has demonstrated scandal after scandal that it doesn’t deserve our trust.” Such skepticism continued in the House hearing, where committee chair Rep. Maxine Waters condemned Facebook with a “demonstrated pattern of failing to keep consumer data private on a scale similar to Equifax.” For example, Facebook purportedly influenced the 2016 U.S. Presidential elections by allowing malicious Russian state actors to purchase and target ads.

The discussion switched to data portability. Sen. Warner questioned if Facebook allows data portability in wallets.

“If a Facebook user wishes to use a wallet other than Calibra, will you make it easy to allow the export of other data?”

Marcus answered that Facebook will facilitate data export for wallets other than Calibra, and he hedged the same commitment for Whatsapp and Messenger. He added that the Calibra network will separate social and financial data and they will impose the highest privacy standard to earn people’s trust Sen. Warren expressed her concern on Facebook’s ability to monetize personal data among platforms. Senator McSally followed up on this and stressed that there are no grounds for committees to trust Facebook with “the track record of failing and violating and deceiving in the past”.

In the Senate hearing, Senator Robert Menendez asked if Facebook will inform users in 48 hours in cases of the data breach. Marcus replaced “48 hours” with “a reasonable length of time”.

Why Switzerland?

Both hearings questioned the registration venue for Libra Corporation. In the Senate hearing, committee chair Mike Crapo wondered why Libra Corporation is registered in Switzerland but not the U.S. Marcus replied that Libra Corporation will also register with U.S regulators in the future.

The committees are clearly not satisfied with what Marcus said in the Senate hearing. Representative Patrick McHenry raised similar concerns and Marcus explained that Switzerland is an “international place” to conduct businesses. He further addressed Representative Josh Gottheimer’s concern that the choice of Switzerland has nothing to do with evading U.S. regulations.

Several lawmakers also worried about the threat of Facebook’s Libra towards the dominance of USD. Marcus stated that the reserve is 50% backed by USD, with the Euro, the British Pound, and the Japanese Yen included as the collateral.

How about KYC and AML?

In the Senate hearing, Senator Cortez Mastro, former District Attorney of Nevada seek Marcus’s commitment to the compliance of AML and sanction laws. Marcus highlighted that they are working to comply with FinCEN regulation.

In the House hearing, Rep. David Scott explicitly expressed his concern on how Facebook Libra complies with KYC, AML and ensures the safety of the existing financial system. Marcus replied that they will launch AML guidelines to satisfy the needs of AML, KYC, and counter-terrorist financing. With regards to potential illegal activities on Libra blockchain, Marcus believed that this can be improved by system design and proper KYC controls to ensure on and off-ramps are properly regulated.

Can Facebook protect consumer’s funds on Libra?

Senator Tester questioned Libra’s ability to protect consumers against loss of funds or fraudulent purchases, along the line of credit cards or the FDIC.

While Marcus claimed they will try their best to resolve those issues as soon as possible, Tester stressed that proper solutions must be in place before Libra goes live.

Representative Carolyn Maloney asked Marcus if he would at least promise to conduct a pilot test before the full launch of Libra. She assumed the pilot test would involve less than 1 million users and overseen by the Federal Reserve and the Securities and Exchange Commission (SEC). Marcus did not provide a clear response and merely stated that they will work closely with regulators.

Is Libra public good?

AOC asked Marcus if Libra is a public good. Marcus claimed that “sovereign currency should remain sovereign” and said he is not in the position to decide whether Libra is a public good.

Praise for Bitcoin?

House minority leader Kevin McCarthy told CNBC that unlike Trump, he likes Bitcoin and the security of blockchain technology. He believed that lawmakers are skeptical about Facebook’s Libra because Libra is centralized, which can threaten the safety of the financial system. Lawmakers are not hostile towards cryptocurrency, he added.

Final words..

We believe there are some questions not properly answered in both the Senate and House hearings, such as the main reason for Facebook launching Libra. Going forward, the centralization of the Libra Association and the notorious history of privacy breach will be the main obstacles for Facebook Libra to go public.

A New Era of Smart Banking: Virtual Bank by Standard Chartered Building Digitally-Born Services

Hong Kong’s currency board and de facto central bank, Hong Kong Monetary Authority (HKMA), introduced the virtual banking license in 2017 for a “new era of smart banking.” Since then, there have been eight licenses granted, one of which includes SC Digital Solutions Limited, the Virtual Bank by Standard Chartered (official name to be revealed), a joint venture between Standard Chartered Bank, PCCW, HKT, and Ctrip. HKT and parent PCCW are one of the dominant telecommunication companies in the region. Ctrip is a Chinese online travel agency that is under the same parent company as Trip.com.

During Hong Kong Fintech Week 2019, Blockchain.News spoke with Deniz Güven, the CEO of the Virtual Bank by Standard Chartered, to understand the current developments and the new technology behind it. The Virtual Bank by Standard Chartered was one of the first granted a virtual banking license on March 27, 2019, from the HKMA along with two other licensees, Livi VB Limited and ZhongAn Virtual Finance Limited.

The Journey from Traditional Banking to Virtual Banking

The Virtual Bank by Standard Chartered started around 18 months ago, with preliminary research in ethnographic research to understand the market. Ethnographic research helped with understanding the needs of the market and the consumers’ behavior. Güven said: “If we can understand the real behavior behind it, we can build new services.”

Güven told Blockchain.News that the Virtual Bank by Standard Chartered has reached out to over 2000 people in Hong Kong from different classes and demographics to understand the needs of the market. “We identified different pain points in Hong Kong. There are a lot of good banks in Hong Kong, and Hong Kong’s banking systems are one of the best in the world. From a product perspective, there is a huge maturity.”

He elaborated that the Hong Kong market is very advanced in terms of banking products, but not in terms of services and digital platforms. According to Güven, the most significant problem is that there are relatively fewer mobile users in Hong Kong, which is around 40% compared to the users in Europe and the US, which is approximately 70% to 75%. Güven suggested that the service usage is quite limited in Hong Kong, and the market has been premature.

Blockchain for Virtual Banks?

In terms of whether blockchain will be implemented in the virtual bank, Güven said: “We have some plans, but not for day one. I see blockchain as a digital currency, but it can be more than just a currency. It’s a behavior.”

He believes that instead of going ahead and building blockchain systems first, he explained: “We need to understand real customer needs and put the mental model there, with the right currencies and blockchain as a platform as a technology. If we can identify the right needs, blockchain will be a great use case for us.”

Smart Banking for the ‘Generation Moth’

Güven explained that classifying behavior is not age-specific. This age-agnostic approach allows the bank to classify people not by their income or age, but by their behavior.

“People have been asking me, is it going to be millennials? I don’t believe that it’s a millennial explanation. I believe it’s people who are attracted to the light of their mobile phones – the generation moth,” commented Güven. “Generation moth” refers to the era of people who are always on their mobile phones, who have access to the internet and belong to the digital world, and these are the people the virtual bank is targeting.

Building Digital Services from Scratch

Güven mentioned that the success of mobile and digital banking services relies on building digital services from scratch. “Our starting point was to solve the pain points with the right services and right products, especially with digital-born services.”

Currently, the Virtual Bank by Standard Chartered is looking to focus mainly on individual retail banking customers in Hong Kong. “We want to define what is an individual customer and how we do the individual segmentation model. We’re trying to create some behavior classes to understand their needs and behaviors.”

On differentiating the Virtual Bank by Standard Chartered with the other eight licensed virtual banks in Hong Kong, Güven said: “Our aim is to create an end-to-end customer experience.”

Secondly, Güven explained that although many people have bank accounts in Hong Kong, they may not be getting the right or the best services from these banks. He refers to these people as the “underserved.” He explained that the main goal of the virtual bank is to “democratize the old banking services” and provide a “difference in service levels.”

Güven explained the 10 pillars of new operating model for virtual banks during the HK FinTech Week.

PCCW, HKT and Ctrip: The Key Differentiator

One of the members of the Virtual Bank by Standard Chartered is the HKT and parent PCCW Group. Güven elaborated: “They are so important for us because out of the 7.5 million people of Hong Kong’s population, they have more than 4 million customers from a distribution perspective.”

“Ctrip, they have more than 200 million users globally, and they are very good in the travel industry. We see this as we are building services and distribution channels together.” He further mentioned that the average person from Hong Kong travels abroad 4.1 times every year, which emphasizes the value of its partnership with Ctrip. “It’s not only about giving mileage programs, but it’s also giving more than that – it’s giving them the experience. These three things will be so important as a differentiating factor.”

“Clean and Lean” for AML/KYC

“AML [anti-money-laundering], KYC [know-your-customer], security and fraud are our first priorities, we are not compromising any of these, but this doesn’t mean that we cannot create new experiences for our customers,” explained Güven.

AML on the onboarding side can be processed in a few minutes, while machine learning can help to make this process more automated in a clean and lean manner. Güven stated that the main purpose of using new technology is to make the services “leaner.”

2020: The Year to Look Out For

Güven said that the virtual bank would be open early next year, in 2020. “Once we open, you will see new and interesting services and products from us. The experience will be totally different, and we will share all these things in the near future.”

Güven concluded that with the eight licensed virtual banks in Hong Kong, a lot of value would be created for the citizens in Hong Kong.

Credits to Edwin Hui for his support to the interview

New Zealand Police Seize about $6.7m Cryptocurrency from Jarothe n David McIvor for Alleged Money Laundering

According to a report on November 23, the New Zealand police confiscated about $6.7m cryptocurrency from Jarothe n David McIvor, a software developer, in Hamilton for alleged money laundering via online movie piracy in the United States.

Jaron David McIvor, a 31-year-old, handed the key codes to unlock more than $6m worth of various cryptocurrencies to the police when they came for him. The relative he lived with was also dragged into the investigation.

The said cryptos were sized owing to McIvor’s involvement in an online movie piracy and were rightly confiscated under the Criminal Proceeds Recovery Act established in 2009.

Following the words of the head of the Asset Recovery Unit in the Waikato, Detective Senior Sergeant Keith Kay, his team became involved after a tip of the illegal transaction by the said culprit from the Inland Revenue Service in the United States.

The IRS received a suspicious activity transaction report from the online payment service, Paypal, the tax officials traced the transactions to McIvor in New Zealand, alleging that McIvor obtained about $2m from the illegal streaming sites which were transferred into his account by PayPal and Stripe.

On the act, Kay said:

“Introducing illicitly-obtained funds into New Zealand constitutes money launderin, and police will thoroughly investigate and restrain the assets of those who undertake such activity regardless of where in the world the crime is committed.”

Kay went further to say that the seized assets will be marketed by order of the High Court while they wait for the final decision on whether the assets are forfeited do as to ensure that the asset does not devalue over time.

Image via Shutterstock

Elliptic to Provide AML Services to Zilliqa’s Blockchain Network

Elliptic, a London-based blockchain analytics startup, has partnered with Zilliqa, a Singapore-based blockchain network provider, to facilitate the infrastructure compliance and security of the latter’s network by offering an anti-money laundering (AML) compliance support.

Through this collaboration, Elliptic will monitor transactions on Zilliqa’s blockchain network, including those involving its ZIL crypto. Moreover, the analytics to be undertaken will also involve XSGD, the Singaporean dollar-pegged stablecoin, set to be released in December 2019.

Partnership Seeks Transparency

One of the primary objectives of these firms joining hands entails shielding Zilliqa from any risk as this will be instrumental in proving to regulators and governments that users are not involved in any form of trafficking pertaining to illegal funds.

Expressly, Elliptic will assist in identifying and blocking any potential transactions associated with illicit activities on Zilliqa’s blockchain network.

Elliptic’s co-founder and chief scientist, Tom Robinson, asserted: “One interesting trend we’re seeing is that regulators are increasingly looking to see whether blockchain monitoring capabilities are available on specific stablecoins, when considering regulatory approval. […] Financial institutions are more likely to engage with blockchains and crypto-assets for which tools exist to identify and trace risky transactions.”

Zilliqa’s president and chief scientific officer, Amrit Kumar, noted: “They have assessed risk on transactions worth several trillion dollars, uncovering activities related to money laundering, terrorism fundraising, fraud, and other financial crimes.”

Zilliqa is hopeful that this collaboration will drive more enterprises to use its blockchain network based on the compliance effort.

Image via Shutterstock

ECB Report: Striking the Balance Between Allowing Privacy and Ensuring Compliance with CBDC

The European Central Bank has recently developed an “anonymity voucher” to safeguard potential central bank digital currency (CBDC) users’ privacy for low-value retail transactions, while ensuring that high-value transfers are subject to anti-money laundering (AML) approvals.

The new concept provided by the ECB aims to solve the issue of anonymity in digital currency transactions, striking a balance between allowing Europeans to have private transactions as well as satisfying the need for regulators’ demand of AML rules.

The report read: “Against the background of the ongoing digitalization of the economy, the payments ecosystem needs to find an answer to an issue that concerns all citizens: the question of how to allow some degree of privacy in electronic payments, while still ensuring compliance with AML/CFT regulations.”

The proof of concept was drawn up by the European System of Central Banks (ESCB), to demonstrate the possibility of a simplified CBDC payment system, allow for some degree of privacy for transactions.

With the support of Accenture and R3, the digitalization solution via distributed ledger technology (DLT), the user’s identity and transaction history would not be seen by the central bank or intermediaries other than the user, while still complying with AML/CFT compliance procedures.

There are four main principles the proof of concept is based on. The first, the CBDC is assumed to have cash-like features, emphasizing on the users’ privacy on lower-value transactions, and balances are not remunerated.

Source: ECB

The second, the design is built around intermediaries in a two-tier model. The central bank would rely on intermediaries that have access to central bank accounts and draw on balances held at the central bank and provide CBDC to the users, rather than the central bank servicing the users directly.

Third, the central bank is the only entity that would issue CBDC units, also allowing them to remove them from circulation at any time.

Lastly, a “dedicated AML authority” would be responsible to perform AML/CFT checks, checking the identities of users involved in large-value transactions.

Image via Shutterstock

Mastercard CEO Answers: The Reasons Behind Leaving Facebook’s Libra Association

Mastercard’s CEO, Ajay Banga, stated the reasons behind the company leaving Facebook’s Libra Association in an interview with the Financial Times. Having left the Libra Association in October last year alongside Visa and other firms, the Libra Association has seen eight firms quitting the project.

Banga said,“When you don’t understand how money gets made, it gets made in ways you don’t like.” He added that the social media giant’s data integrity was also another reason behind quitting the project.

The CEO does not understand the stablecoin project’s business model. At the same time, the need for a proprietary digital wallet made it clear that the project may not have positioned itself as a financial inclusion tool, as it was initially stated to be.

Banga also had concerns about the Libra Association’s members to adhere to compliance measures, including anti-money laundering and know-your-customer regulations.

Mastercard beat Wall Street’s estimates in quarterly profit during an economic slump in October last year. Despite abandoning development efforts with Libra, Sachin Mehra, the Chief Financial Officer of Mastercard, said that the company would instead develop initiatives on its own. He added, “We’re very engaged on the blockchain technology. Much like a lot of other companies, we believe the technology has the capability to solve a lot of pain points. It still needs to be proven at scale depending on the use case and question.”

With over 100 blockchain patents filed globally, Mastercard has ranked in the top 3 among top blockchain innovators. Mastercard’s Provenance Solution is industry-agnostic and allows brands to provide record product journeys to contribute to consumer confidence, trust, and awareness. The Provenance Solution also provides governance capabilities for supply chain networks.

Image via Shutterstock

Tether Brings into Play Anti-Money Laundering Solutions with Chainalysis Tool

Tether, the most leveraged stablecoin provider based on market capitalization, has deployed a tool provided by Chainalysis, a blockchain analytical company, in its quest to have anti-money laundering (AML) compliance solutions. Tether stated in a press release that the company will usethe Know Your Transaction (KYT) tool by Chainalysis to get more AML tracking insights.

Tether seeks real-time monitoring

By leveraging on the KYT tool, Tether intends to maximize the surveillance of its US dollar-backed stablecoin USDT usage in its blockchain network. This approach will be instrumental in red-flagging suspicious transactions in real-time.

Tether will, therefore, benefit from full-cycle surveys of its stablecoins from the time they were issued to the redemption moment. The data provided will be beneficial in mitigating any risks that may be prompted by suspicious activities on its entire network.

Tether’s CTO, Paolo Ardoino, asserted that they have the responsibility to have automated and transparent compliance solutions to regulators and the entire crypto ecosystem. As a result, the Chainalysis KYT tool will be useful in realizing this objective. He, however, noted that a user’s vital data would not be shared as it is safely stored in servers.

Jonathan Levin, CSO and co-founder of Chainalysis, acknowledged, “By putting proper AML transaction monitoring in place, Tether is demonstrating its commitment to transparency and regulatory compliance, further building trust among its growing user base.”

Regulators on the watch out

Tether’s intentions of deploying the KYT tool come, at a time when regulators across the globe have become more stringent on money laundering measures in the crypto space. This is intended to stamp more confidence and authority in this sector.

Tether has also shown its plan to propel its dominance in the stablecoin arena by forming formidable partnerships. For instance, it recently collaborated with Algorand making it the first stablecoin to be integrated into Algorand 2.0. Some of the benefits rendered will include reduced block confirmation to be accomplished in under four seconds.

Meeting new and existing regulatory compliance standards

Cryptocurrency exchange Bittrex has also been using Chainalysis Know Your Transaction (KYT) to meet new and existing regulatory and compliance standards, and establish a safer, more secure platform for their users. Chainalysis KYT software enhances the compliance and transparency of cryptocurrency exchanges, like Bittrex, by monitoring large volumes of cryptocurrency activity and identifying high-risk transactions on a continuous basis, feeding the exchange more accurate data on each of their users.

Image via Shutterstock

New Jersey State Considering New Bill to Set New Requirements for Cryptocurrency Businesses

The New Jersey state legislature received a new bill, the Digital Asset and Blockchain Technology Act by Assemblywoman Yvonne Lopez. This new billwould require cryptocurrency and virtual currency to obtain a license to operate, allowing for more consumer-friendly protections.

Cryptocurrency businesses would be required to disclose their legally registered names, follow anti-money laundering (AML) and anti-terrorist financing (ATF) policies, and legal records to New Jersey’s Department of Banking and Insurance.

The bill additionally requires digital currency companies to disclose their terms and conditions for consumer accounts, which are protected by the Federal Deposit Insurance Cooperation (FDIC), alike traditional bank account holders.

Unlicensed Bitcoin exchange faced charges

William Green, a 46-year-old American citizen of New Jersey has been indicted on one count of operating an unlicensed money transmitting business through his website, Destination Bitcoin in July last year.

Green was involved in the business of selling over $2 million worth of Bitcoin through his unlicensed money transmitting business. He received money from his customers, which he then deposited into bank accounts under his name. Green later converted the money he received into Bitcoin and charged his customers for a fee.

According to US federal law, any individual who owns or controls money transmitting business must register with the Secretary of Treasury including when Bitcoin is sold for cash. This applies to all involved businesses whether or not the business is licensed as a money transmitting business in any state in the US.

The charges for Green’s alleged crimes of operating an unlicensed money transmitting business carries a maximum penalty of 5 years in prison and a $250,000 fine.

Image via Shutterstock

French-Austrian Collaboration on Blockchain Forensics Instrument to Enhance Cryptocurrency AML

The Austrian Institute of Technology (AIT) and the French cybersecurity firm Nigma Conseil have partnered to develop a new blockchain forensics tool. The two companies have signed a deal to strengthen their collaboration to work on e-Nigma, a proposed compliance tool designed to fight against crypto and financial crime. AIT is the largest research and tech company in Austria owned by the government.

New Blockchain Detective

Nigma Conseil and the AIT have teamed up to make their cooperation stronger against financial crimes associated with cryptocurrencies. The two firms have been working for many months to enhance the e-Nigma platform’s anti-money-laundering (AML) capacities and blockchain analytics built on AIT’s open-source crypto forensics platform, GraphSense.

E-Nigma is a comprehensive blockchain forensics instrument that enables users to carry out due diligence in response to anti-money laundering (AML) and know your customer (KYC) regulation. The tool monitors and tracks blockchain transactions of companies dealing with crypto and their derivatives. The instrument is also useful in governmental agencies and banks.

The platform provides many advanced features like wallet clustering and risk scoring. It can identify addresses with real-life identities by scaping through both the dark and clear web.

The technology was built as part of an AIT-led program recognized as TITANIUM that was established to investigate transactions in “underground markets.” The European Union awarded the program $5.4 million to fight cryptocurrency crime.

Fabien Tabarly, Nigma Conseil CEO, said: “The collaboration between AIT and Nigma Conseil has been significant in implementing the most innovative instruments to mitigate financial crime in digital assets.”

Digital Blockchain Forensics

Tracing and tracking payment-flows in crypto assets by analyzing transactions in the underlying blockchain has become a competitive business. E-Nigma is engaging in a competitive field, with similar transaction mapping tools being provided by CipherTrace, Elliptic, and Chainalysis. Such blockchain forensics firms monitor customer withdrawals and deposits for signs of “tainted” coins, which have been involved in drug dealing, terrorism, or money laundering activities.

For example, CipherTrace assists governments and businesses in making cryptocurrencies trusted and safe. Elliptic, which is recognized as the oldest forensics company, is tasked with identifying illicit activities in cryptocurrencies and providing actionable intelligence to government agencies, financial institutions, and crypto companies. Chainalysis, which is best known for all blockchain forensics companies, generates a wealth of interesting data on hodling patterns, lost coins, and many more.

Image via Shutterstock

KYC on Exchanges Powerless Against PlusToken Ponzi Scammers According to New Report

The PlusToken Ponzi scheme operators are using regulated KYC compliant exchanges to dump their cryptocurrency according to an updated report by investigative firm OXT Research.

In their first report on the PlusToken Ponzi scam, OXT Research introduced estimates for the size of the popular high yield investment scam and the depth of the market impact attributed to the accumulation and distribution of the PlusToken Bitcoin hoard – which is estimated to be an incredible 200,000 BTC.

PlusToken has been blamed for causing Bitcoin prices to fall in 2019 and as recently as March 6 when it was reported that the fraudsters had unloaded 13,000 BTC which sent the Bitcoin price plummeting by over $500.

The second edition report released on March 10, revealed the method used by PlusToken scammers to move their funds through regulated exchanges despite the strictly enforced Know Your Customer (KYC) compliance standards.

KYC Irrelevant

The report explained that the PlusToken scammers have moved their funds from the direct pile of unmixed allotments and locations to mixers like Wasabi wallet which implements a trustless coin shuffler, and then the funds would be consolidated and distributed.

While the first edition by OXT demonstrated that Huobi had been leveraged by the scammers for distribution the new edition found that while the global exchange was still the main source of distribution, a large amount of the coins have ended up on the OKEx exchange. Per the report, “OKEx is a newly labeled and significant coin destination having received nearly 50% of February distributions.”

Both Huobi and the South Korean exchange OKEx are KYC compliant in line with the global push for increased transparency and regulation in cryptocurrency exchanges.

OXT stated the most of PlusToken’s major market effects should have passed as their data reveals that about 70% of their BTC stockpile has already been distributed.

BTC Price and Safe Haven Status

As reported by Blockchain.News, Bitcoin’s status as a safe-haven asset has been under intense scrutiny as the BTC price continues to fall amidst a series of crisis events in 2020 which have continued to create the ideal environment for the digital commodity to theoretically thrive. Beginning with the Iranian – US conflict in early Jan, the coronavirus outbreak triggering a cut in interest rates by the Federal Reserve, and now the plummeting oil price following a disagreement in Vienna between Russia and the OPEC nations.

The data in the OXT reports, highlighted that the Ponzi scheme has sold around $1.3 billion worth of BTC in the past seven months noting the distribution increases into market strength and slowing with market price weakness. The continual dumps by PlusToken scammers each time the BTC price has risen has added drastically to the cryptocurrency’s volatility.

The market manipulation is frustrating as it is now an added variable for analysts to integrate into their inchoate analysis of the nascent asset and could be a huge factor into why Bitcoin has not met the expectations of its safe-haven status.

Source: https://insidebitcoins.com/cryptocurrency-exchanges

Image via Shutterstock