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DoJ Charges BitClub Promoter for Role in $722 Million Crypto Fraud Scheme

A Californian man has pleaded guilty for his involvement in perpetrating BitClub Network, a cryptocurrency mining scheme estimated to have generated at least $722 million.

BitClub promoter charged with fraud

Joseph Frank Abel pleaded guilty for conspiracy in fraud, and for offering and selling unregistered securities through BitClub Network. The US Department of Justice (DoJ) also charged Abel for subscribing to a false tax return in 2017, allegedly failing to report $1 million worth of earned cryptocurrency. Along with Abel, four other of his accomplices were indicted for their roles in the BitClub Network.

BitClub Network is a fraudulent crypto mining scheme that solicited money from investors in exchange for shares in purported cryptocurrency mining pools. Investors were promised rewards for recruiting new members to the network. The Ponzi scheme was in effect for 5 years, from April 2014 to December 2019 before being shut down. It generated at least $722 million and was advertised digitally by Abel, who was a big-shot promoter for the fraudulent crypto mining network. Based in the US, BitClub Network membership was also marketed throughout Asia, Africa, and Europe.

Through a video conference with the US District Judge Claire C. Cecchi, Abel confessed to soliciting investors and taking their money in exchange for promised shares in BitClub’s crypto mining pools. According to an Internal Revenue Service (IRS) announcement released yesterday, Abel also advised other American investors to use a virtual private network (VPN) to conceal their US-based IP addresses, in an effort to prevent detection from US law enforcement.

The former BitClub promoter is now awaiting his sentencing, set for January 2021. Abel has been fined $250,000 by US regulators and now faces up to five years in prison. As for the tax evasion charge, the fraud count stipulates a maximum penalty of three years of imprisonment and a fine of $100,000.

Ponzi schemes generate billions

Similar cryptocurrency Ponzi schemes that have also been condemned by the DoJ as fraudulent investment scams have generated billions before being shut down. Some of the biggest crypto schemes include OneCoin and BitConnect, which have respectively generated $4 billion and $2.6 billion through money laundering and bank fraud.

Recently, the US Department of Justice sought to reclaim approximately $400 million dollars in a forfeiture money judgment submitted on Monday. Mark Scott, the former attorney for OneCoin founder Ruja Ignatova, was found guilty of money laundering and bank fraud in the multi-billion dollar Ponzi scheme. Currently, law enforcement is asking the US District Court of New York judge to freeze Scott’s assets to recuperate some of the laundered funds. The former lawyer faces disbarment as well.

Bitcoin Is 10X Better than Gold, Says Tyler Winklevoss

Bitcoin has been increasingly compared to gold as a safe-haven asset, with many BTC bulls such as Tyler Winklevoss making the case that the largest cryptocurrency by market capitalization was a better hedge than gold in many aspects.

Bitcoin to reach $500,000, beating gold

Taking to his Twitter, the Bitcoin billionaire Tyler Winklevoss once again touted Bitcoin’s horn.

He compared Bitcoin to gold and said that BTC was beating gold at its own game. The Gemini co-founder said:

“Bitcoin is better at being gold than gold – and not just incrementally, but by an order of magnitude or 10X better.”

The Bitcoin billionaire then linked a report he wrote. The Gemini co-founder had put together an analysis on Bitcoin, comparing the hedge to other investments, such as oil, gold, and the US dollar.

Tyler Winklevoss further made the case that Bitcoin was inevitably going to reach $500K in pricing on the market. He asserted that Bitcoin was also going to be the preferred safe-haven asset among investors, rather than gold.

The “digital gold” philanthropist had backed his arguments and previously said:

“Bitcoin is ultimately the only long-term protection against inflation.”

With the US dollar gradually depreciating due to mass printing from the US Federal Reserve’s efforts to deliver COVID-19 relief, many investors have turned to Bitcoin in this global economic downtrend to store their assets.

Why is Bitcoin better than gold?

Gold was critiqued by Winklevoss for being hard to store. He also previously argued that no one knew how much supply was in gold. Furthermore, if gold were to be mined from asteroids, as Elon Musk had disclosed he was working on doing, gold’s price would plummet and it would no longer be as valuable.

Bitcoin, on the other hand, will only always have a maximum supply of 21 billion, making the digital currency a scarcer and therefore more valuable asset.

Bitcoin Price – Will BTC maintain a level above $11k?

At the time of writing, Bitcoin seems to be consolidating around the $10K level and taking a breather. The “digital gold” cryptocurrency surged past the $11,000 mark once again over the weekend but failed to maintain a support level above that.

Bitcoin bulls have remained confident that it will only be a matter of time before Bitcoin breaks $11K and maintains a pricing above that, however. The indication seems to be that with institutional firms buying into Bitcoin, this will inspire other investors to turn towards the safe-haven asset.

Also, other renowned market investors such as the Winklevoss twins and Paul Tudor Jones have been driving the Bitcoin trend forward. Tyler Winklevoss has gone so much as to say that Bitcoin will reach $500,000 in pricing.

At the time of writing, Bitcoin is trading a bit north of $10,400 on the market and has fallen by around 4% from yesterday’s price.

Top Tips for New Bitcoin Investors

Investing in Bitcoin can be a complex and daunting process for beginners. That’s why you should learn tips for investing in Bitcoin. Although you’ve heard stories of people making money from Bitcoin investments, you should be careful when starting.

The cryptocurrency space can be risky for both new traders and experienced investors. Unlike the stock market, there is no central body regulating the cryptocurrency sphere. What’s more, new investors and traders don’t have a body to guide them.

Most investors depend on platforms like the Immediate Edge for information about Bitcoin trading and investing. Luckily, the number of sites and blogs that share information about crypto trading and investing is increasing by the day.

If planning to venture into Bitcoin trading or investing, here are useful tips to guide you.

Research

Start by researching Bitcoin. Learn as much as you can about Bitcoin and how cryptocurrencies work. After that, research about Bitcoin trading and investing. How people trade cryptocurrency keeps changing. Understand what investing in Bitcoin or trading is all about.

Cryptocurrencies like Bitcoin provide a great investment opportunity. However, this opportunity comes with risks. Therefore, ignore all the hype you’ve heard and dig deeper. Find out about Bitcoin technology, investing, trading, and how everything works.

Learn the Basics

Whether you want to buy and sell Bitcoin or invest in the long-term, start by learning the basics. Naturally, you crawl before you start to walk and run. Therefore, take your time to understand Bitcoin trading. Learn how to purchase and sell Bitcoin.

Also, identify the most secure and most straightforward platforms to purchase and sell cryptocurrencies. Do your due diligence to choose a reputable Bitcoin exchange. Just like most financial investments, you should know the best way to safeguard your digital assets. For instance, learn to protect your Bitcoin from cyber-attacks and scammers.

Find out more about digital wallets and choose the best. Your choice should be influenced by how you intend to use your Bitcoins.

Start Small

After researching Bitcoin and the market for a few weeks, you can feel like you’ve known everything about cryptocurrency. Maybe you’ve indeed learned a lot. However, this doesn’t mean you should rush to invest all your savings.

Every investment has its risks, and Bitcoin trading is not different. Bitcoin is still developing. What’s more, its price is highly volatile. Many factors can affect Bitcoin price at any time. That means Bitcoin trading or investing carries an incredibly high risk. You can either lose an entire investment or win big.

Therefore, start by investing a small about. Monitor how the initial investment turns out and then increase or decrease the amount. Essentially, avoid chasing Bitcoin prices because you may end up in tears.

Diversify

Don’t put all your eggs in a single basket. To enhance your chances of success, look for different ways to invest in Bitcoin. For instance, you can opt to purchase Bitcoin at a low price and then sell at a higher price to profit. Alternatively, you can buy and hold. Nevertheless, try different ways to invest in Bitcoin. Additionally, stay updated on the latest industry developments and news. That way, you will know when to buy, hold, or sell your digital assets.

Where Can You Invest in Bitcoin?

You can use a broker or a crypto exchange to invest in Bitcoin. Investing in Bitcoin is like investing in a stock. The main difference is volatility because of daily Bitcoin swings.

Follow these steps to invest in Bitcoin:

Identify a reputable Bitcoin exchange and open an account
Deposit cash in fiat money
Order or buy Bitcoins
Sell your Bitcoin to make a profit or a loss

These are the necessary steps for investing in Bitcoin, but it depends on your chosen crypto exchange. It’s also crucial to note that you need a digital wallet for holding your Bitcoin. Nevertheless, follow these steps to trade or invest in Bitcoin safely.

Most People Will Hold Bitcoin Instead of Investing in Stocks, Bonds or Real Estate, says Market Analyst

After surging to highs of $61,781 over the weekend, Bitcoin (BTC) is experiencing a price correction as the top cryptocurrency is trading at $55,900 at the time of writing, according to CoinMarketCap.

Despite the current pullback, Pierre Rochard, a market analyst and Bitcoin advocate, believes that most people will be inclined towards holding BTC compared to investing in assets like stocks. He explained:

“In the future, most people will just hold Bitcoin instead of investing in stocks, bonds, or real estate. Normal people don’t want to spend time investing; they just want to hold money. Only those actually interested in investing will engage in it.”

His sentiments come at a time when Bitcoin has gained more than 1,200% since it plummeted to lows of $3,800 in March 2020 as the grappling effects of the coronavirus (COVID-19) continued to wreak havoc.

At the time, the leading cryptocurrency shed more than 50% of its value in 24 hours as the pandemic triggered shock waves globally. As a result, a flight to cash was witnessed, pushing risk assets like Bitcoin on the receiving end.

Nevertheless, the narrative is different one year down the line because the top cryptocurrency has gone through the roof, making it the best-performing asset of the decade.

Long-term hodlers are accumulating more Bitcoin

According to crypto writer William Clemente III, long-term Bitcoin hodlers or holders are seeing the present pullback as the perfect opportunity to accumulate more BTC as new ones continue selling. He explained that people who have held Bitcoin for three years and more have continued to accumulate Bitcoin, while newer investors, who have only hodl-ed the digital asset for 6-12 months, “have sold into the recent rally.”

Jan &Yann, the co-founders of leading on-chain data provider Glassnode, have stipulated that they are still optimistic of at least one more leg up in the current bull run as strong BTC support has been formed around the $55k area, and this is confirmed by both on-chain and trading volume.

Time will tell how Bitcoin shapes up going forward as institutional interest continues rising.

Hedge Fund Billionaire Marc Lasry Wishes More Bitcoins To Accumulate

In an interview with CNBC on Tuesday, June 8, Marc Lasry, the founder of Avenue Capital Management and owner of the Milwaukee Bucks, acknowledged that Bitcoin had grown much faster than he thought it could. He stated that he should have purchased a lot more coins earlier.

“I think the probability, as more and more people start using Bitcoin, is that it’s going to keep going up. It’s happened a lot quicker than I thought it would. I should have bought a lot more. That was my mistake.” he said.

In the past, Lasry had predicted that the price of Bitcoin could surge past the $40,000 level.

When asked about his past prediction and commenting on where the leading cryptocurrency currently stands, Lasry stated that once the market is built, it is there and unlikely to go away.

“Once a market is created…That, to me, was the reason why I thought it was interesting on Bitcoin. And I thought that as soon as you add institutional investors (are) coming at, the price would move up,” Lasry said.

The US billionaire investor is bullish on Bitcoin’s long-term situation because of its established market.

In July 2018, Lasry had an interview with CNBC where he successfully predicted that Bitcoin would climb to the $40,000 level within a few years as it becomes easier to trade and more acceptable. He also indicated that individuals who invested in the digital asset would accumulate “5 to 10 times their money in 3 to 5 years.” During this time, the leading cryptocurrency was trading below $7,500.

In 2018, Lasry regretted not purchasing Bitcoin a few years ago, stating that he should have bought the digital currency when it was at $300 just a few years ago.

Bitcoin to Continue Its Uptrend

The extreme volatility in the price of Bitcoin makes several investors wary of investing in digital asset. However, others see it as owning a venture capital-backed asset since the cryptocurrency has obtained more acceptance as an alternative asset.

Marc Lasry is bullish on Bitcoin and believes that the crypto price will continue to rise together with its usability. He is optimistic about the increasing number of institutional investors adopting cryptocurrency.

Lasry’s day job involves running Avenue Capital Group debt investment company he helped to start and operate. The firm currently has about $9.6 billion in assets under management.

Lasry also has Bitcoin investments that he said he has made with his personal money.

Besides running Avenue Capital as CEO and chairman, Lasry owns a stake in the NBA’s Milwaukee Bucks.

Tennis Superstar Naomi Osaka Says Dogecoin Prompted Her Interest in Crypto Investing

Naomi Osaka, a top tennis professional tennis player from Japan, is almost getting into cryptocurrencies.

In a recent interview with Bloomberg, Osaka, the four-time Grand Slam tennis singles champion, revealed that she is considering investing in cryptocurrency, saying that Dogecoin triggered her interest.

Osaka has already dominated the world of tennis sports, winning four Grand Slam singles titles over the last three years and achieving the top women’s tennis players globally. She is now potentially looking for success in another industry that is investing in cryptocurrency, thanks to the trading performance of the Dogecoin meme cryptocurrency.

The top-notch tennis player said that although her agent pitched her the idea of crypto investing, she had already noticed some trending information over the social media buzz around Dogecoin.

“I was actually just talking with my agent about cryptocurrencies; I know that online, everything is getting bigger. I remember reading about Dogecoin … there’s going to be something new and interesting that’s going to pop up,”

Osaka already has stepped one foot in the crypto sector through NFT collectables. In April, Osaka released a six-piece collection of one-of-one NFTs through collaboration with her sister, Mari Osaka, a retired tennis pro.

Osaka released the newly signed collectables on Tom Brady’s Autograph platform and collectively sold for almost $600,000. One NFT was sold at $200,200, the high purchase amount, which recently stands at the most expensive sold by a professional tennis player.

Why Investing in Doge?

Stimulated by Elon Musk and Reddit, the price of Dogecoin is up 5,700% at 27 cents per coin this year but is still 60% lower from a peak of about 70 cents hit in May, according to data from CoinDesk. On major cryptocurrency exchanges, trading volumes of Dogecoin soared to nearly $1 billion in a day in the second quarter, according to data from Coinbase Global.

It is hard to ignore such returns, and many investors are scrambling to enter into the crypto bandwagon to get more riches. Some investors can make money with dogecoin, especially those who have extra cash and are willing to invest in the meme crypto token.

Inspired by Tesla CEO Elon Musk, many investors have become millionaires after investing in Dogecoin.

Investors Flock to US Money Market Funds Amid Banking Crisis

As the global banking crisis continues to fuel concerns among investors, the popularity of US money market funds is surging. According to Emerging Portfolio Fund Research (EPFR) data obtained by the Financial Times, more than $286 billion has been invested in these funds so far in March. The inflows are the highest seen in a month since the emergence of the Covid-19 pandemic.

The top beneficiaries of this trend are Goldman Sachs, JPMorgan Chase, and Fidelity. The figures show that Goldman Sachs’ money funds have grown by 13%, receiving $52 billion in investment. JPMorgan’s funds have seen inflows of nearly $46 billion, while Fidelity has enjoyed nearly $37 billion in investment. These funds are offering their best yields in years, as the US Federal Reserve continues to raise interest rates in a bid to curb inflation.

Money market funds are a popular choice for investors during uncertain times because they offer high liquidity and low risk. The current crisis in the banking sector has only served to amplify these qualities. The fear of liquidity constraints and potential bank failures has caused many investors to seek out safer investments, and US money market funds are delivering the kind of stability that investors crave.

In the seven days leading up to March 22, total money market fund assets increased by $117.42 billion to $5.13 trillion, according to a report from the Investment Company Institute. Government funds increased by $131.84 billion, while prime funds decreased by $10.83 billion. Tax-exempt money market funds shrank by $3.61 billion.

The influx of cash into money market funds is driven by fears surrounding the health of the financial system. Banks in the US and Europe are facing liquidity constraints as monetary policy tightens, and investors are wary of the potential risks associated with these developments.

For example, on March 24, shares of Deutsche Bank dropped due to an increase in the cost of insuring against its potential default risk. The bank’s five-year credit default swaps (CDS) climbed 19 basis points from the previous day, closing at 222 bps, according to Reuters, citing S&P Global Market Intelligence data. Meanwhile, in the US, there is still uncertainty surrounding regional banks, as insurance on default for financial services firms Charles Schwab and Capital One soared last week. The latest data shows that credit default swaps jumped over 80% to 103 bps as of March 20.

The surge in popularity of money market funds underscores the ongoing concerns of investors in the face of a global banking crisis. With interest rates continuing to rise, and fears of liquidity constraints and bank failures mounting, it seems likely that this trend will continue in the months ahead.