CFTC Fines JPMorgan with $65 Million For Manipulating USD Index

The Commodity Futures Trading Commission (CFTC) has recently announced that JPMorgan traders have been trying to manipulate the US Dollar International Swaps and Derivatives Association Fix (USD ISDAFIX) for five years, between the years 2017 and 2012….

Former Top JPMorgan Trader Says Banks ‘Have Absolutely Failed’ With Cryptocurrency

Source : Former Top JPMorgan Trader Says Banks ‘Have Absolutely Failed’ With Cryptocurrency A former high-flying JPMorgan trader turned cryptocurrency fund manager says banks “have absolutely failed to innovate in any way, shape, or form and now they’re paying the price” in the cryptocurrency market. Daniel Masters ran JPMorgan’s energy trading business in the 1990s and now oversees cryptocurrency investment at the firm Global Advisors. In an interview with Business Insider, he called cryptocurrency a “true revolution” that traditional financial institutions are dismissing as a “criminal enterprise, Ponzi scheme and a scam.” Masters, who started out as an oil trader for Shell in the 1980s, said he became interested in cryptocurrency around five years ago and refocused his firm on digital currencies two years later in 2014. He said established financiers, or what he calls “analogue financial service companies,” are in “trench warfare” with upstart digital financial servicers. In the interview, Masters said: The analogue financial services companies are not in this game at all. They don’t want to touch the core currency, which is bitcoin or ethereum, they’re suspicious about the industry itself. A lot of people think it’s a criminal enterprise and a Ponzi scheme and a scam. And the great dragon was thrown down, that ancient serpent, who is called the devil and Satan, the deceiver of the whole world—he was thrown down to the earth, and his angels were thrown down with him. #bitcoin  https://t.co/Z7tqIfKFtG — Danny Masters (@dannylmasters) February 6, 2018 ‘Ponzi Scheme’? Masters’ remarks follow a slew of negative comments by financial brass on Bitcoin and cryptocurrency just over the course of this month. European Central Bank executive board member Yves Mersch said bitcoin is “not money” and like “Mr. Ponzi’s schemes” at the Official Monetary and Financial Institutions Forum in London. The general manager for the Bank of Settlements, Augustin Carstens, said Bitcoin is a “combination of a bubble, a Ponzi scheme and an environmental disaster” at a lecture at Frankfurt University. And World Bank president Jim Yong Kim also said Bitcoin was a Ponzi scheme at an event in Washington, Bloomberg reports. Charlie Munger, the 94-year-old vice chairman of Berkshire Hathaway, has even called Bitcoin a “noxious poison” the government needs to regulate during a shareholder meeting earlier this month for the Daily Journal, a publishing firm where he serves as chairman and director, Business Insider reports. JP Morgan CEO Jamie Dimon faced backlash for calling bitcoin “a fraud,” which he has since apologized for. The remark triggered a market abuse lawsuit by algorithmic blockchain liquidity provider Blockswater for alleged violation of Article 12 of the European Union’s Market Abuse Regulation. Financiers Cozy Up To Bitcoin But some financial institutions appear to be warming up to cryptocurrencies following Bitcoin’s 1,500 percent rise in value against the dollar last year. The CBOE stock exchange started the world’s first bitcoin futures trading in December, which crashed its website due to heavy traffic. Goldman Sachs has also suggested they would open desks for trading cryptocurrency during an earnings call last month. Masters’ …

Plus…Former Top JPMorgan Trader Says Banks ‘Have Absolutely Failed’ With Cryptocurrency

Bank of America Officially States they Might not be Able to Compete with Cryptocurrencies

Source : Bank of America Officially States they Might not be Able to Compete with Cryptocurrencies “The competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products as well as new innovative products. This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services as we grow and develop our internet banking and mobile banking channel strategies in addition to remote connectivity solutions. We might not be successful in developing or introducing new products and services”. Those very exact words from the Bank of America’s report to the SEC may have been ignored by many, as they are merely one paragraph of what is a 190-page report. But for those who pay attention and are interested in the potential impact that blockchain technology could have on the world, these words mean a lot, as it is the first time a bank of renowned reputation has warned of a situation that many have taken for granted (unofficially). With the publication of such a report, it can be noted that the Bank of America issues an official declaration in which they claim that they may be losing the war against cryptocurrencies. These statements, while not having the same impact or purpose as a public announcement or a press conference, are in sharp contrast to previous opinions given by other banking personalities who, after attacking crypto, have had to accept that their elimination is a lost battle. The most exemplary case is that of Jamie Dimon, chief executive of JPMorgan Chase, who at one time referred to bitcoin by saying “(it is) a fraud (…) worse than tulip bulbs. It won’t end well. Someone is going to get killed” and that whoever traded with bitcoin was “stupid” , an opinion that 3 months later he claimed to have “regretted having said”  Similarly, other financial actors have already acknowledged that banks do not have the possibility of exerting sufficient pressure to ban cryptocurrencies: Indonesia, Korea, Japan, Venezuela, Russia, Israel, the United States and the European Union have already issued similar opinions. Now, Bank of America’s report confirms that not only is a problem at a regulatory level, but cryptos are taking a significant market share that could lead to serious financial losses resulting from the monopolization of services. The report seriously takes the existence of the crypto market as an important competitor for the banking sector, which could force them to invest in infrastructure upgrading: “Technological advances and the growth of e-commerce have made it easier for non-depository institutions to offer products and services that traditionally were banking products, and for financial institutions to compete with technology companies in providing electronic and internet-based financial solutions including electronic securities trading, marketplace lending and payment processing. Further, clients may choose to conduct business with other …

Plus…Bank of America Officially States they Might not be Able to Compete with Cryptocurrencies

British Man Charged With Using Bitcoin to Launder 11.5 Million Euros

Source : British Man Charged With Using Bitcoin to Launder 11.5 Million Euros A British man has been arrested on money laundering charges in Holland. He is alleged to have been running a “money cleaning” service for clients trading on the dark web between the years 2014 and 2016. The Dutch Public Prosecutor demanded on Wednesday that he serves at least five years in prison.Funds Likely Came From Illicit SourcesAccording to NL Times, the laundered money is thought to have come from various dark web dealings in illicit goods. The man accused is a 38-year-old British man living in Amsterdam. It’s alleged that he was responsible for “cleaning” over 11.5 million euros during the years he was active. It’s thought that he received Bitcoin from dealers of narcotics and other contraband items and sold them using his own bank account. He then withdrew the funds in local currency and returned them, minus a cut for himself, to the original party.The Public Prosecutor alleges that the man took an “unusually high” percentage of the funds. It’s thought that he charged between five and eight percent for carrying some of the burdens of risk for his clients. The accused and his spouse were living predominantly off their ill-gotten gains. The Prosecutor added that neither of them earns much in the way of legal income.Along with the charges of money laundering, the suspect is also thought to have been previously cultivating cannabis illegally. Photos on his computer of large cannabis plantations at his previous home support this. The Prosecutor stated:“He thought he had seen a gap in the market and jumped into it… He started with a cannabis plantation, sold the harvest on the dark web and was paid in bitcoins. Soon he noticed that he no longer needed the weed to make a substantial turnover and a fine profit.”The man accused is adamant that all those he dealt with over the years 2014-16 were law-abiding citizens. He refutes the allegation that they were involved in any illicit trade. It’s thought that the court will rule on the matter in early March.Bitcoin and other cryptocurrencies have long been associated with money laundering. However, just because something illegal is possible using a certain tool doesn’t mean the tool ought to be forever tarred with that brush. It’s possible to murder someone with a lump hammer. Are all lump hammers associated with murder? No, of course they’re not.Critics of Bitcoin love to play the money laundering card whenever they can. The fact is there are plenty more examples of money laundering that takes place using other forms of currency. Recently, US Bankcorp were forced to pay a hefty fine for the very same crime. Also, one of Bitcoin’s fiercest naysayers, Jamie Dimon of JP Morgan Chase, has repeatedly stated that crypto is only good for criminal use. This includes money laundering. Just weeks after making his famous “fraud” remarks JP Morgan themselves were charged with money laundering. Evidently, current money laundering laws are failing and …

Plus…British Man Charged With Using Bitcoin to Launder 11.5
Million Euros

British Man Charged With Using Bitcoin to Launder 11.5 Million Euros

Source : British Man Charged With Using Bitcoin to Launder 11.5 Million Euros A British man has been arrested on money laundering charges in Holland. He is alleged to have been running a “money cleaning” service for clients trading on the dark web between the years 2014 and 2016. The Dutch Public Prosecutor demanded on Wednesday that he serves at least five years in prison. Funds Likely Came From Illicit Sources According to NL Times, the laundered money is thought to have come from various dark web dealings in illicit goods. The man accused is a 38-year-old British man living in Amsterdam. It’s alleged that he was responsible for “cleaning” over 11.5 million euros during the years he was active. It’s thought that he received Bitcoin from dealers of narcotics and other contraband items and sold them using his own bank account. He then withdrew the funds in local currency and returned them, minus a cut for himself, to the original party. The Public Prosecutor alleges that the man took an “unusually high” percentage of the funds. It’s thought that he charged between five and eight percent for carrying some of the burdens of risk for his clients. The accused and his spouse were living predominantly off their ill-gotten gains. The Prosecutor added that neither of them earns much in the way of legal income. Along with the charges of money laundering, the suspect is also thought to have been previously cultivating cannabis illegally. Photos on his computer of large cannabis plantations at his previous home support this. The Prosecutor stated: “He thought he had seen a gap in the market and jumped into it… He started with a cannabis plantation, sold the harvest on the dark web and was paid in bitcoins. Soon he noticed that he no longer needed the weed to make a substantial turnover and a fine profit.” The man accused is adamant that all those he dealt with over the years 2014-16 were law-abiding citizens. He refutes the allegation that they were involved in any illicit trade. It’s thought that the court will rule on the matter in early March. Bitcoin and other cryptocurrencies have long been associated with money laundering. However, just because something illegal is possible using a certain tool doesn’t mean the tool ought to be forever tarred with that brush. It’s possible to murder someone with a lump hammer. Are all lump hammers associated with murder? No, of course they’re not. Critics of Bitcoin love to play the money laundering card whenever they can. The fact is there are plenty more examples of money laundering that takes place using other forms of currency. Recently, US Bankcorp were forced to pay a hefty fine for the very same crime. Also, one of Bitcoin’s fiercest naysayers, Jamie Dimon of JP Morgan Chase, has repeatedly stated that crypto is only good for criminal use. This includes money laundering. Just weeks after making his famous “fraud” remarks JP Morgan themselves were charged with money laundering. …

Plus…British Man Charged With Using Bitcoin to Launder 11.5 Million Euros

British Man Charged With Using Bitcoin to Launder 11.5 Million Euros

Source : British Man Charged With Using Bitcoin to Launder 11.5 Million Euros A British man has been arrested on money laundering charges in Holland. He is alleged to have been running a “money cleaning” service for clients trading on the dark web between the years 2014 and 2016. The Dutch Public Prosecutor demanded on Wednesday that he serves at least five years in prison. Funds Likely Came From Illicit Sources According to NL Times, the laundered money is thought to have come from various dark web dealings in illicit goods. The man accused is a 38-year-old British man living in Amsterdam. It’s alleged that he was responsible for “cleaning” over 11.5 million euros during the years he was active. It’s thought that he received Bitcoin from dealers of narcotics and other contraband items and sold them using his own bank account. He then withdrew the funds in local currency and returned them, minus a cut for himself, to the original party. The Public Prosecutor alleges that the man took an “unusually high” percentage of the funds. It’s thought that he charged between five and eight percent for carrying some of the burdens of risk for his clients. The accused and his spouse were living predominantly off their ill-gotten gains. The Prosecutor added that neither of them earns much in the way of legal income. Along with the charges of money laundering, the suspect is also thought to have been previously cultivating cannabis illegally. Photos on his computer of large cannabis plantations at his previous home support this. The Prosecutor stated: “He thought he had seen a gap in the market and jumped into it… He started with a cannabis plantation, sold the harvest on the dark web and was paid in bitcoins. Soon he noticed that he no longer needed the weed to make a substantial turnover and a fine profit.” The man accused is adamant that all those he dealt with over the years 2014-16 were law-abiding citizens. He refutes the allegation that they were involved in any illicit trade. It’s thought that the court will rule on the matter in early March. Bitcoin and other cryptocurrencies have long been associated with money laundering. However, just because something illegal is possible using a certain tool doesn’t mean the tool ought to be forever tarred with that brush. It’s possible to murder someone with a lump hammer. Are all lump hammers associated with murder? No, of course they’re not. Critics of Bitcoin love to play the money laundering card whenever they can. The fact is there are plenty more examples of money laundering that takes place using other forms of currency. Recently, US Bankcorp were forced to pay a hefty fine for the very same crime. Also, one of Bitcoin’s fiercest naysayers, Jamie Dimon of JP Morgan Chase, has repeatedly stated that crypto is only good for criminal use. This includes money laundering. Just weeks after making his famous “fraud” remarks JP Morgan themselves were charged with money laundering. …

Plus…British Man Charged With Using Bitcoin to Launder 11.5 Million Euros

Here is what Bitcoin needs to Prove Before Goldman Sachs Would Invest

Source : Here is what Bitcoin needs to Prove Before Goldman Sachs Would Invest Bitcoin should Prove few things before Goldman Sachs would Invest Goldman Sachs says that it has found Bitcoin’s biggest problem. This week, a top Goldman Sachs investment strategist described what Bitcoin and other cryptocurrencies need to do to maintain their prices, which have recently bounced after a continued crash. Allison Nathan, a senior strategist of global investment research at Goldman Sachs said: “We trust that the crucial question underpinning the real value of cryptocurrencies themselves, is what economic problem they solve? As a currency, cryptos can often seem like a solution in search of a problem.” Nathan included that traditional fiat currency and banks work just fine in the majority of the world. There is no such necessity for digital currencies. It is only in few corners of the world that lack reliable banking systems and stable local currencies where cryptos could be a viable alternative. Venezuela, for example, where high inflation has shaken confidence in the local Bolivar, this week launched its oil-backed cryptocurrency called the petro, and Bitcoin has also caught on in politically unstable places like Zimbabwe and other underbanked African nations. While Goldman Sachs acknowledges that cryptocurrencies “solve the economic problem” of keeping money outside the regular banking system, a function that also attracts criminals which will be a minor opportunity. Nathan concluded: “When it comes to regulated markets, we believe that gold is a superior store of wealth to Bitcoin or other cryptocurrencies and a long list of hurdles remain for that to not be the case.” Recently, Goldman Sachs warned its Wealthy Clients against the Cryptocurrency Obsession. JPMorgan and Bank of America said no to Crypto Transactions through Credit Cards. Before few months, Jamie Dimon said he regrets calling Bitcoin a Fraud and believes in Blockchain Technology. He described: “The blockchain is real; you can have cryptodollars in yen and stuff like that. ICOs, you got to look at everyone individually. The bitcoin was always to me what the governments are going to feel about bitcoin when it gets really big. And I just have a different opinion than other people.”

Bank of England Exec Calls Cryptocurrency a Failure and bitcoin proves him wrong

Source : Bank of England Exec Calls Cryptocurrency a Failure and bitcoin proves him wrong It is no secret to anyone that every speculative market varies its prices according to buyers’ expectations, which are influenced by statements that could potentially affect their later performance. The cryptocurrency market does not escape from this reality, and its prices have fluctuated with upward and downward trends according to official and unofficial statements made by personalities of renowned trajectory in the world of finances. Just after a downward trend due -among other things- to statements made by governments such as China and South Korea to regulate or even ban the trade in cryptocurrencies, the bitcoin and altcoins market managed to recover after the leaders of these and other countries declared that such bans would not be implemented. In the midst of this statements season, there was someone who wanted to let the world know his opinion about bitcoin: Bank of England’s governor Mark Carney. For him, even though bitcoin was the most profitable currency last year, and the crypto market has grown faster than any other, cryptocurrencies in general are nothing but a failure. In a lecture at Regent’s University in London on February 20, he referred to the bitcoin by saying: “It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange,” However, while previously this kind of statements (similar to those issued at the time by JP Morgan CEO Jamie Dimon saying that bitcoin was a scam) generated nervousness and caused a fall in prices, apparently no one seemed to take them too seriously as a reason to speculate on prices. Bitcoin continued its bullish trend and the rest of the altcoins maintained their traditional behavior. These declarations failed to destabilize markets, after authorities from the European Central Bank, South Korea, the United States, Indonesia and Japan acknowledged that there was no official banking interest in banning the crypto market, as well as other even more ambitious initiatives such as those of the Saudi Arabian Central Bank to use Ripple as a payment platform, and Venezuela to formalize the legality of cryptocurrencies as countrywide accepted means of payment. Index fund outperforms BTC’s ROI Although bitcoin alone can demonstrate that at least since its inception it has been everything but a failure, with a return of 941% in the last year, the investment diversification strategy is much more successful and can counteract risks. For this, there are many strategies, but one that is measurable is the Bitwise HOLD 10 Private Index Fund, which according to the original website “represents the performance of the cryptocurrency market by tracking a basket of the ten largest coins. To protect the integrity of the index, significant robustness is applied through eligibility criteria, inflation adjustment of market capitalization, distinguishing circulating supply, the rebalancing policy, compositing of price data, data sources, and policies for rare events like hard forks. The Index will be evaluated and researched on a periodic basis.” …

Plus…Bank of England Exec Calls Cryptocurrency a Failure and bitcoin proves him wrong

Japanese Crypto Exchange Accidentally Gives Bitcoins Away for Free

Source : Japanese Crypto Exchange Accidentally Gives Bitcoins Away for Free Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.Bitcoin skeptics such as JPMorgan CEO Jamie Dimon have often claimed that Bitcoin is “worth nothing.” For approximately 18 minutes at one cryptocurrency exchange in Japan, these skeptics were right.On Tuesday, Zaif — a cryptocurrency exchange operated by Osaka-based Tech Bureau Corp. — revealed in a statement that a technical error had allowed several traders to purchase Bitcoin for 0 yen, a considerable discount off its fair market value of ~1.2 million yen.Zaif said that the glitch occurred during an 18-minute window on Feb. 16, and seven customers were able to purchase BTC at the 0 yen rate. The company has since corrected customer balances, although it said that is still trying to sort the matter out with one of the traders, who apparently attempted to transfer the coins out of the exchange following the transaction.The glitch caused the system to temporarily report inaccurate trading data but otherwise had no effect on the platform’s other users.“We apologize for any inconvenience and inconvenience caused to you by our customers,” the company said in the statement, according to a rough translation. “We will strive to prevent recurrence and we will continue to work on improving our services.”According to data from CoinMarketCap, Zaif processed $17.3 million worth of trading volume over the preceding 24 hours, ranking it 51st among exchanges that charge trading fees. This, however, does not include the exchange’s BTC volume, which the website reports as depicting abnormal activity.Reuters reports that Zaif is one of 16 cryptocurrency exchanges that are currently licensed by Japan’s Financial Services Agency (FSA). Another 16 — most notably the recently-hacked Coincheck — have been allowed to continue operating while their registration applications are pending.The FSA conducted spot inspections of these exchanges following the Coincheck hack, which occurred at the end of January and resulted in the theft of $530 million worth of NEM tokens (XEM), making it the largest ever cryptocurrency exchange heist.As CCN reported, the 16 licensed exchanges are currently drafting plans to establish a self-regulatory body that will be registered with the FSA.Featured image from Shutterstock.Follow us on Telegram.Advertisement

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