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Craig Wright Denies Hacking Mt. Gox, Says He Bought Those Bitcoins

The controversial Satoshi Nakamoto candidate says he bought Bitcoin stored in the 1Feex address.

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$20 Million AirBit Cryptocurrency Ponzi Scheme Ringleader Extradited to the US

An Acting US Attorney has announced the extradition of a key member of a cryptocurrency investment scam. Gutenberg Dos Santos was involved in the AirBit Club scam that’s thought to have generated in excess of $20 million. The AirBit cryptocurrency Ponzi scheme promised its victims unbelievable rates of return on investments. Those duped believed they … Continued

The post $20 Million AirBit Cryptocurrency Ponzi Scheme Ringleader Extradited to the US appeared first on BeInCrypto.

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An Acting US Attorney has announced the extradition of a key member of a cryptocurrency investment scam. Gutenberg Dos Santos was involved in the AirBit Club scam that’s thought to have generated in excess of $20 million.

The AirBit cryptocurrency Ponzi scheme promised its victims unbelievable rates of return on investments. Those duped believed they would receive shares of profits from digital asset mining and trading activity that turned out to be entirely fraudulent.

Cryptocurrency Scammers Await Trial in US Custody

Dos Santos was arrested for his involvement in the scheme on Aug. 18, 2020, in Panama. According to a filing by the US Attorney’s Office for the Southern District of New York on Monday, the Brazilian and U.S. citizen was extradited on Nov. 25.

Pablo Renato Rodriguez, Scott Hughes, Cecilia Millan, and Jackie Aguilar, also involved in the AirBit Club scheme, were taken into custody in the U.S. on Aug. 18. Later, authorities arrested another member of the group, Karina Chairez, on Oct. 20.

The arrests were part of a coordinated effort by special agents from Homeland Security Investigations’ El Dorado Task Force, HSI Panama, the HSI Panama City Transnational Criminal Investigative Unit, and HSI New Orleans.

Arrested Jail Prison

The AirBit Club scam was active since early 2015. The filing credits Rodriguez and Dos Santos as its founders. Meanwhile, Millan, Chairez, and Aguilar promoted the scheme.

Hughes, a licensed attorney, had previously represented the AirBit Club founders in a separate case. He would later aid the scheme by removing negative reviews about it from the internet.

According to Monday’s filing, Dos Santos stands charged with one count of conspiracy to commit bank and wire fraud, as well as one count for conspiracy to commit money laundering. The charges each carry a maximum sentence of between 20 and 30 years in prison.

AirBit Scammers Splashed Cash on Recruitment and Luxury Items

The filing details that those behind the AirBit Ponzi spent some of the proceeds on cars, jewelry, and extravagant property. They also reinvested cash in the scheme by throwing lavish events intended to recruit new victims.

Victims that requested withdrawals of apparent profits over the years were given excuses that cited supposed delays. Those that were paid out using newcomers’ money were often charged fees amounting to as much as 50% of their expected profits. One victim was told in April 2020 that the Coronavirus-induced financial crisis had meant that AirBit had to close his account without warning.

Bitcoin Scam

Those involved attempted to cover up the origin of the scheme’s proceeds by insisting on cash payments or the use of third-party cryptocurrency brokers. They also laundered money through numerous domestic and foreign bank accounts.

Hughes himself managed one of the accounts used. The so-called “Hughes Trust Account” was supposed to be that of the attorney’s legal practice.

However, the group used it to direct victims’ money to members of the group. In total, the filing estimates that the group laundered at least $20 million through the various methods used.

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A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.

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Source: https://beincrypto.com/20-million-airbit-cryptocurrency-ponzi-scheme-ringleader-extradited-to-the-us/

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Canaan Sees Over 75% Decline in Net Revenue in Q3 as Bitcoin’s Price Surge

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Chinese Bitcoin mining firm Canaan has recorded a loss in yet another quarter but is showing positive signs of a recovery as share price and market capitalization spikes. Following a disappointing initial public offering (IPO) last year and declining inventory sales, the company has seen the balance of power shift considerably to major competitors MicroBT and Bitmain.

$12.7 Million Loss for Q3 2020

Bitcoin miner maker Canaan has reported a 75.7% year-on-year (YOY) decline in net revenue as part of its Q3 2020 financials published on Nov. 30. In the report, Canaan revealed that its net revenue for the period was $24 million, which also amounts to an 8.5% reduction from the earnings recorded in the previous quarter.

Following the significant drop in quarter-on-quarter (QOQ) net revenue, it is unsurprising to see Canaan post another quarterly net loss in 2020. According to its Q3 2020 financials, the bitcoin mining chip maker recorded a net loss of $12.7 million, compared to a $2.5 million loss in Q2 2020 and $14.3 million in Q3 2019.

Commenting on the firm’s Q3 financial performance, Nangeng Zhang, Canaan’s CEO and Chairman said:

“During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost.”

Canaan Market Cap on the Rise

Net loss aside, Canaan has been recording some positives in the latter part of 2020. Indeed, the company’s market capitalization has more than tripled from $300 million in September to about $900.8 million as of press time.

Canaan’s share price has also been on a tear in recent months, rising over 200% within the same period. With one-third of Q4 remaining, the company’s stock has risen over 170%. Maintaining the current price action could see the Bitcoin miner manufacturer’s stock price challenge its IPO float price of $9, which incidentally is its all-time high share price.

Tweeting on Canaan’s Q3 performance, @WuBlockchain identified rising inventory sales and the release of the company’s A1246 miners are contributing factors to the firm’s recent resurgence.

Canaan was also among a group of Chinese mining hopefuls looking to float IPOs in the last couple of years. However, Canaan’s offerings fell short of the mark, failing to even realize a quarter of the $400 million estimate.

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Source: https://cryptopotato.com/canaan-sees-over-75-decline-in-net-revenue-in-q3-as-bitcoins-price-surge/

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Ethereum Prices Return to $620 Resistance on ETH 2.0 Launch Day

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Today marks the long-awaited genesis of Phase 0 in the Ethereum 2.0 upgrade roadmap which stretches ahead for the next couple of years. According to the Beacon Chain countdown, there is now less than seven hours to go before the genesis event spawns the first block on the new chain.

The Beacon Chain explorer reports that there is currently 872,000 ETH staked which equates to approximately $525,000 at today’s prices.

No Native Scaling For a Year

The excitement over the launch is palpable but many are still unaware that the new blockchain will not actually function as anything other than providing staking rewards to validators. All of the smart contracts, dApps, and transactions will continue as usual on the original ETH 1.0 chain.

Researchers at Messari Crypto pointed out;

“When the Beacon Chain launches tomorrow, outside of bootstrapping a network of proof of stake validators, it will have little functionality.”

This also means that there will still be issues with high gas prices when the existing network comes under heavy load which is bound to happen over the next year if DeFi momentum continues and the space evolves even more.

Phase 1 will introduce scaling through sharding, which will introduce 64 parallel side chains to take the load off the main chain and increase throughput. This is unlikely to occur for at least another year from today, and even then ETH 1.0 and 2.0 will operate independently until Phase 1.5 merges them together sometime in 2022.

Either way, the Ethereum community is hyped up over the event which is the culmination of five years of research and development for the world’s largest smart contract and decentralized application network. In his latest Bankless newsletter, David Hoffman aptly said;

“We were born too late to explore the globe, too early to explore the galaxy, but we were born at the perfect moment to explore the infinite whitespace of Ethereum 2.0.”

Ethereum Prices at Resistance

Ethereum prices have returned to their June 2018 price high of $620 just hours before the launch. This level appears to have formed a double top and heavy resistance zone as it did in early 2018. A next leg up could take prices to $800 where further resistance lies, but on the downside, support can be found at around $520.

At the time of press, ETH prices had retreated a little to trade at $605 but the momentum and potential is still with it.

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Source: https://cryptopotato.com/ethereum-prices-return-to-620-resistance-on-eth-2-0-launch-day/

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