JPMorgan Chase to Add New Features to Blockchain-Powered Network for Global Banks

JPMorgan Chase (JPM) is expanding the use of its blockchain technology to help reduce the number of global payments rejected by errors, the Financial Times reported on April 21.

The United States financial giant is adding new features to its Interbank Information Network (IIN,) which is now used by more than 220 banks around the world. The technology was initially designed to help institutions share payments data in real time — cutting delays in processing times.

John Hunter, JPM’s head of global clearing, said it has built a new feature that can instantly verify whether a payment is heading to a valid bank account. At present, transactions can be rejected days after they were sent because of typos in sort codes, account numbers and addresses. He told the FT:

“Banks straight through processing rates are in the mid-80s to mid-90s. It’s that gap — the 5 to 20 percent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain.”

The new feature is going to be live by the fall, and while the IIN is currently free to use, the report revealed subscriptions may be introduced over time.

Meanwhile, JPM is also trying to attract fintech firms to its network by enabling them to develop applications in a specially created sandbox where they can gain access to data modeling, file transfers and secure messaging. Hunter told the newspaper that this could remove many hurdles for startups, adding: “Developers only need to bring their intellect.”

JPM first launched IIN as a pilot scheme in 2017. As reported by Cointelegraph in January, experts at the financial institution believe the technology will provide benefits to banks and financial systems.

In February, the banking giant announced it was launching its own cryptocurrency, dubbed the “JPM Coin,” to increase settlement efficiency. Later that month, CEO Jamie Dimon suggested that the coin could evolve to have a consumer use.

Some crypto executives have been dismissive of the JPM Coin, with Ripple CEO Brad Garlinghouse claiming it “misses the point” of crypto altogether.

AllianceTraders – Cryptocurrency Automated Trading Platform

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Out of hundreds of cryptocurrency trading and exchange platforms operating on the market today, Alliancetraders is surely one of the best offering access to a highly professional, global and safe market. Founded by two experienced entrepreneurs, it’s the fastest cryptocurrency trading platform providing top-notch security measures to protect the investor’s digital assets.

Availability

In terms of availability, Alliancetraders, unlike most platforms, acts like a trader overseeing your account, so you don’t trade it yourself. However, you can sign in to the platform any time using your PC, laptop or smartphone and find out what exactly is happening to your account. Apart from your balance, net benefit, losses, and full history, you can see all trades your account is invested in while monitoring the results in real time.

What does Alliancetraders do?

Alliancetraders is an online trading service taking advantage of professional traders’ signals worldwide while using MetaTrader 5 for automated trading. Alliancetraders offers customers the benefits of working with a ‘team’ of about 1,200 traders making trades using their accounts with their brokers who are also signal providers, as well as thousands of other traders who chose their own signal providers and allowed the system to use them for automated trading purposes.

MQL5 is a high-level programming language intended for writing automated trading strategies which is 5 to 10 times as fast as its predecessor, MQL4. It delivers more accurate forecasts and better-automated trading results. We take pride in the fact that Alliancetraders is one of the fastest, most efficient and cost-effective cryptocurrency trading platforms currently available on the market.

The company’s monthly profit is about 15-20% on a whole investment portfolio. All trades are made in real time with little to no risk involved for the investors. The investor’s profit is paid in US dollars which is quite unusual for cryptocurrency trading platforms. Investors have the option to cash out or keep the interest earned on their profit. The deposit is returned to the investor in full upon the expiration of the contract. Yet what helps our company stand out is transparency. You can log in and see your balance whenever and trade order execution in real time.

Pros:

  • Full control over your assets and access to all trading transactions from your smartphone any time
  • About 20% return on your deposit monthly
  • High speed and efficiency. Low speed and efficiency of other software solutions tend to cause delays in displaying current exchange rates, which in turn slows down trades – a characteristic critical for successful intraday trading.
  • Functionality. What does it mean? It reflects the number of analytical tools available, including technical indicators, charts and their timeframes, the amount of windows showing exchange rates which can be opened simultaneously, an ability to create your own indicator and automated trading, available automated trading software (trading robots and expert advisors), trade order modes and types, fundamental analysis and economic calendar services, scope of financial markets and trading platforms, available financial tools, etc.
  • User-friendly interface. Intuitive interface, interface customization, and personalization options and other factors contributing to a positive user experience.
  • Safety. Safety and confidentiality of trades are naturally ensured by the platform, yet they also depend on each specific broker selected by the customer.
  • Mobility. It includes mobile trading support which means the ability to install and use the app on mobile devices which is essential in today’s fast-paced world enabling users to monitor their trades on the run, if need be, giving them the ultimate freedom, as well as compatibility, i. e. the ability of this software to run on different operating systems.

Conclusion

Alliancetraders is a comprehensive cryptocurrency trading platform offering a wide variety of options for beginning and experienced investors, while its extensive personalization and customization capabilities contribute to an experience tailored to each user’s interests and needs. Alliancetraders takes pride in being able to execute orders faster than any other trading platform does per second, and support and transfer over 150 cryptocurrencies at the same time. In terms of safety, the platform uses FIDO U2F along with 2FA, and allows customers to hold up to 100% of all assets in cold storage.

This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release.

Crypto Markets See Mild Green, Global Stocks and Futures Mixed as Oil Spikes

Monday, April 22 — after yesterday’s mild market teeter, almost all of the top twenty cryptocurrencies are seeing mild green on the day to press time, seeing growth of between 1 and 7%, as Coin350 data shows.

Market visualization

Market visualization courtesy of Coin360

Bitcoin (BTC) is up 0.4% on the day and is trading at $5,315 by press time, according to CoinMarketCap. After yesterday’s dip to below $5,260, the top coin has just reclaimed ground above the $5,300 price point — but remains shy of its intra-week high of above $5,350 on April 20. Bitcoin nonetheless remains almost $300 higher than its April 16 dip down to $5,026.

Mild renewed growth has brought Bitcoin’s weekly gains to a solid 2.76%.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap

The largest altcoin by market cap, ether (ETH), is up a mild 0.8% on the day to trade near $171. The alt has seen a jagged and volatile week — ranging from below $160 on April 16 to almost $177 on April 20. Having recovered from yesterday’s losses, ether is now up by close to 2.3% on the week.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: CoinMarketCap

XRP has reported stronger growth of 1.7% on the day, and is currently trading at around $0.327. The asset’s price movements over the week have not correlated with bitcoin and ether, with XRP seeing an 7-day price high on April 18 at $0.34. After several days of consistent decline, XRP sharply spiked today, and has thus tempered its weekly performance to a 0.4% loss.

XRP 7-day price chart

XRP 7-day price chart. Source: CoinMarketCap

The top ten cryptocurrencies are almost uniformly green, with the exception of EOS — which is breaking virtually even, litecoin (LTC) — down a fractional 0.13%, and tether (USDT), which has lost 0.2% to cleave more closely to its USD peg.

The strongest top 10 performer is native exchange token binance coin (BNB), ranked the seventh largest cryptocurrency, growing 6.76% on the day to trade at $24.65 by press time. Cardano (ADA) has also seen higher-than-average growth of 3.3%, and is trading at $0.08 to press time.

Widening out to the top twenty, the remaining coins are all green: the highest gainer is NEO — up 3.6% on the day to trade at $10.86 — followed by tron (TRZ), up by 2.3% at $0.025.

Most other top 20 coins are seeing gentle gains around 1-2%.

The total market capitalization of all cryptocurrencies is currently around $178.7 billion, up roughly 1.3% on the week.

Total market capitalization of all cryptocurrencies

Total market capitalization of all cryptocurrencies. Source: CoinMarketCap

In crypto and blockchain news, a report has revealed that more South Koreans are buying cryptocurrency than ever more, with 7.4% of the surveyed population reporting they had invested in the new asset class, each with an average investment of over $6,000 — up 64% from 2017.

Also today, Cointelegraph reported that the British Virgin Islands — a United Kingdom Overseas Territory in the Carribean — has partnered with a blockchain firm to launch an alternative crypto-enabled payments infrastructure for residents across its network of islands.

In traditional markets, futures on the S&P 500 Index fell 0.3% as of 11 am (GMT+1), within the Shanghai Composite Index decreasing 1.7 percent — reportedly the largest decline in over three weeks, according to Bloomberg.

Meanwhile, oil prices have spiked to the reportedly highest level in almost six months, following the revelation that the United States government will abolish sanction waivers that had allowed buyers to import Iranian crude supplies.

Here’s Why Crypto Traders are Abandoning Altcoins to Bullishly Buy Bitcoin

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Since January, in less than four months, the valuation of the crypto market is up around $52 billion from $125 billion with the bitcoin price comfortably hovering above the $5,300 mark.

Historically, alternative cryptocurrencies, or altcoins, have performed particularly well when bitcoin demonstrates a sideways price movement or remains stable in a tight price range.

The valuation of the crypto market is up nearly $52 billion year-to-date, boosted by the positive sentiment around bitcoin (source: coinmarketcap.com)

While bitcoin has been relatively stable in the $5,200 to $5,300 range, due to the lack of upside momentum of altcoins, some traders have become less confident in the near-term prospect of altcoins.

Will Bitcoin Dominate?

According to a widely recognized cryptocurrency trader, the altcoin market failed to test a key resistance level during the weekend, unable to secure new momentum to extend last week’s gains.

“Both were rejected from resistance, altcoins a bit harder. A lot of my confidence in altcoins the past few days was predicated on smallcap dominance being able to break up. After this rejection, I’m significantly less interested in altcoins. Shifting my portfolio heavier skewed to BTC,” the trader said.

In the past 24 hours, many tokens in the likes of Basic Attention Token (BAT), Crypto.com Chain (CRO), Ravencoin (RVN), and Golem (GNT) have recorded losses in the range of 5 to 11 percent against both bitcoin and the U.S. dollar.

Other traders have also suggested that as the momentum of altcoins slows down, bitcoin could also retrace slightly in the upcoming days, purely based on technical indicators and the performance of bitcoin in the past week.

Hsaka, a technical analyst, said that a retest of the $5,160 support level is expected for bitcoin and that the short-term price movement of the dominant cryptocurrency remains uncertain at the current juncture of the market.

“Expecting a test of the 5160 level. Since it’s already been tested twice, will watch PA on the LTFs to determine whether I take a long or not,” the analyst said.

In consideration of the past performance of bitcoin and its current volume, another trader said that there exists a possibility bitcoin drops below the $5,000 level.

But, the trader said that a strong recovery is likely to follow the retracement, adding:

Fractals are more unreliable than usual patterns, but still shouldn’t be ignored. Typical correction for altcoins if this happens followed by a stronger recovery once price settles.

According to OnChainFX, the real volume of the bitcoin market measured by evaluating the daily volumes on eight exchanges identified by Bitwise Asset Management that includes Binance, Bitfinex, and Kraken, the volume of bitcoin remains fairly high at $315 million.

Last month, in its research presented to the U.S. Securities and Exchange Commission (SEC), Bitwise estimated the daily spot volume of bitcoin in March 4 to 8 to be $273 million.

“When you remove fake volume, the real BTC volume is quite healthy given its market cap. Gold’s market cap is ~$7T with a spot volume of ~$37B implying a 0.53% daily turnover. Bitcoin’s $70B market cap would imply a 0.39% daily turnover, very much in-line with that of gold,” the Bitwise team said.

Potential Variables

If the volume of bitcoin can be sustained in the upcoming weeks at over $300 million, it is possible that the asset manages to stay above $5,300 despite the presence of key resistance levels in the $5,000 to $6,000 range.

Some reports from major markets in South Korea also suggest that the confidence of investors in the medium to the long-term performance of the crypto market has increased in recent months.

South Koreans Invest an Average $6,000 in Cryptocurrency, Says New Survey

More South Koreans are buying cryptocurrency than ever before and spending more fiat to do so, local daily news network Arirang Daily News reported April 20.

Referencing the results of a December 2018 survey from nonprofit organization the Korea Financial Investors Protection Foundation, Arirang revealed 7.4% of the 2,500 adults surveyed said they had bought cryptocurrency.

That figure was up 1% on the year before, despite the industry facing hurdles locally in the form of shifting regulation and various exchange hacks.

Not only the number of purchasers had changed: out of those who now owned crypto, many were buying more of it than before.

Compared to 2017, the average investment per person shot up 64% to over $6,000, Arirang said.

According to the survey, it was older investors who were the most common crypto buyers — those in their 50s, followed by 30-40-year-olds.

As Cointelegraph reported, bitcoin’s (BTC) price uptick to $5,300 at the start of April has spurred the reemergence of a bullish trend peculiar to the South Korean market. Known as the “Kimchi Premium,” the phenomenon sees local traders pay a premium for bitcoin in particular on exchanges when measured in USD terms.

Problems meanwhile persist for market participants, with one South Korean exchange closing its doors last week and another, Bithumb, continue to grapple with the effect of a hack worth $18 million that occurred in March.

At the same time, Bithumb’s parent company has gained a $200 million investment from a Japanese fund, subsequently revealing plans for both United States and Japan expansion.

John McAfee Promotes Steven Seagal-Endorsed Crypto Scam Coin

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By CCN.com: CCN reported deeply on a pyramid scheme involving cloud mining and a highly pumped-and-dumped cryptocurrency called B2G (“Bitcoiin2G”). It was one of the longest and deepest reports of this reporter’s life. We found that Steven Seagal promoted B2G, and the scheme was hurting enough people that the State of New Jersey officially banned the promotion of it. B2G’s first use case was as a way to avoid paying people out in Bitcoin, via the various DragonMining (and affiliated) cloud mining scams.

McAfee Joins Steven Seagal in Promoting B2G

As we reported, at the time of its initial usage, only two or three exchanges were listing it. The scam harmed people in that one of those exchanges, Exrates, which our sources said was the only exchange you could truly use, offered wildly lower rates than what you were being paid by. So you would receive “$1500” in B2G, but you wouldn’t be able to cash it out for anything close to that in Bitcoin, for example.

B2G is now listed in about ten different pairs across several markets, none of which are significant markets. It’s trading around $0.30 at press time. John McAfee wants you to know there’s still time to get on board. No, we’re not making this up — first Steven Seagal, now John McAfee, who also claims to know the identity of Satoshi Nakamoto.

McAfee hasn’t tweeted since April 17th. This reporter informed him of previous findings on B2G, in hopes that he might delete the tweet or post some new information after learning its origins.

Nothing of the kind has happened in the meantime.

We don’t know if B2G is created by the same people who launched the various cloud mining scams detailed in our previous reporting.

B2G: Deeply Connected to Numerous Scams

What we do know is that the owners of those scams wanted to use B2G because they had an awful lot of it on hand — but didn’t, of course, have the BTC to pay the contracts out.

B2G was virtually unheard of before this and Seagal’s promotions. We cautiously wonder if our reporting, and the actions of New Jersey, gave it the attention it wouldn’t have otherwise gotten. “No press is bad press,” as the saying goes.

B2G did a volume just under $1 million in the 24 hours before press time. The fact is, this could all be from McAfee himself, or a few investors of his size. This is an inherent danger in playing with small market capitalization cryptos: you could be up against whales you can’t even see.

As we reported, HitBTC delisted B2G after determining that its low hashrate made it a security risk. Today, probably as a result of the price rise, the hashrate is a little better, at over 500 GH/s. Still, nothing at all, compared to other networks. A few large miners from somewhere like Ethereum Classic could quickly move over to B2G and gain full control of the network, which is another risk in playing with less-popular coins.

We hope that Mr. McAfee realizes the error of promoting something like B2G after it has so widely been associated with scams and criminal activity. If not, as the publication of record in crypto, we can assure you that it will not be forgotten or go unmentioned moving forward.

Why ATB Coin’s Legal Encounter Sets Precedent in New York for Future Securities Violations

If there’s anything to take away from this federal class-action suit, it’s that this new opinion on ATB Coin provides further guidance on when a token might be considered a security under securities law in the United States.

For those with a legal background, this piece is set up in a similar way to a case brief you probably remember from law school. But even without a legal background, here’s some guidelines on how to read this.

A traditional case brief outlines the factual background, issues, rule of law, and how that particular court applied the rule of law to the factual background.

Quick glossary of terms:

  1. Complaint (Compl.): Refers to the initial Complaint that was filed by Plaintiff, Raymond Balestra, who was appointed as the representative for the injured class of plaintiffs.

  2. Decl.: Refers to declarations, or statements made by an individual party as part of a deposition or other legal proceeding. These are usually incorporated into a Complaint or other legal document.

  3. Exhibit (Ex.): Exhibits are physical or documentary evidence attached to a Complaint, or other legal document that serves to be brought before a jury. Examples may include another document, photograph, video recording, or even a physical item.

  4. Idem (Id.): Idem, or “id,” is a Latin term meaning “the same,” commonly abbreviated to “id,” which is particularly used in legal citations to denote the previously cited source. This helps to save time/space by directing readers to the previously cited source, if the writer is still referring to that source.

  5. Paragraph (¶): The “pilcrow” symbol, also known as the paragraph mark, is a typographical character referencing individual paragraphs. When referring to multiple paragraphs, usually two pilcrows are used, ¶¶.

  6. Section (§): The section symbol refers to a particular section, either in a book or more commonly, legal documents or statutes. For example, §15, means “section 15” of that particular document.

What did ATB Coin do wrong?

Pursuant to the Complaint was that ATB Coin LLC (“ATB/Defendants”) held itself out as a technology start-up company established for the purposes of facilitating rapid, low-cost digital financing transactions through revolutionary blockchain technology (Compl. ¶¶ 3,15-16).

From June 12, 2017 through September 15, 2017, ATB conducted an initial coin offering, or “ICO,” through which ATB offered digital “ATB coins” to the general public in exchange for other digital assets (the “ATB ICO”) (Id. ¶2).

Defendants promoted the ATB coin as “an innovative decentralized cryptocurrency incorporating the advanced technologies that tailor the needs of primary market players—users, investors, and business owners.” (4/27/18 Kupka Decl. Ex. 1, at 2).

The ATB coin was “designed to overcome well-known inefficiencies within government central banks and other cryptocurrencies [and to] induce […] transactions that are fully secure, private, and anonymous.” (Id.)

The primary purpose of the ATB ICO, according to Defendants, was to raise capital to enable Defendants to create and launch a new blockchain (the “ATB Blockchain”) on which the ATB coins would operate (Compl. ¶ 3). During the ICO, Defendants issued a range of promotional materials describing the ATB ICO as an “investment opportunity.” (Id. ¶ 33; see also id. ¶ 4).

When the ATB ICO launched in June 2017, Defendants offered one (1) ATB coin for $1, payable in the cryptocurrencies bitcoin (“BTC”), ether (“ETH”), or litecoin (“LTC”) (Id. ¶ 5). As the price increased $1.50 three months later, all market participants in the ICO continued to receive a certain number of additional ATB coins as a bonus (Id. ¶ 37).

On August 21, 2017, Plaintiff Raymond Balestra (“Plaintiff”) participated in the ATB ICO, purchasing 388.5 ATB coins in exchange for 2.100441 ETH (Id. ¶ 13; id. Ex. 1). In total, the ATB ICO raised over $20 million from thousands of investors (Compl. ¶ 2).

While the Defendants launched the ATB Blockchain on September 14, 2017, at the close of the ATB ICO, it was not capable of the technological feats that Defendants had advertised.

By March 11, 2018, the value of Plaintiff’s ATB coins had decreased by more than 85% from the price at which he purchased them (Id. Ex. 1; Lead Pl. Br. 5).

What brings Defendants into Court for this pending class-action suit, is that Defendants did not file a registration statement for the ATB ICO with the United States Securities and Exchange Commission (“SEC”) at any point, either before, during, or after the ICO (Compl. ¶¶ 1, 9, 55-57).

Consequently, Plaintiff filed his Complaint on December 21, 2017, alleging two claims against Defendants under the U.S. Securities Act.

Going down the legal rabbit hole

In its putative class-action complaint, Plaintiffs alleged two violations of the Securities Act:

  1. Pursuant to §12(a), Defendants offered and sold unregistered securities in the form of ATB coins, and
  2. Pursuant to §15(a), ATB’s co-founders, Edward Ng and Herbert W. Hoover III, as “control persons” of ATB.  

Defendants filed their Motion to Dismiss for:

  1. Lack of personal jurisdiction (Federal Rule Civ. Procedure, 12[b][2]), and
  2. Failure to state a claim, on the theory that ATB coins were not “securities” based on the pleadings, pursuant to 12(b)(6) of the Federal Rules of Civil Procedure.

#1 — Debunking the “jurisdictional” argument

In their Motion to Dismiss, Defendants claimed there was a “lack of personal jurisdiction.”

When a defendant moves for dismissal for lack of personal jurisdiction pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure (“FRCP”), the plaintiff bears the burden of demonstrating that the court has jurisdiction over the defendant.

For more than 70 years, U.S. courts have relied upon the “Minimum Contacts” standard established in the 1945 case, Int’l Shoe Co. v. Washington, for determining whether personal jurisdiction exists.

Under the Minimum Contacts test, a court will look to the amount of contact a person (natural born or business) has had with that court’s forum state, to ensure hailing them into court there is fair and justified.

With respect to Defendant’s argument, the Court referred to a number of New York conferences that Ng and Hoover had attended, in efforts to promote the sale of ATB coins to U.S. investors.

According to one of the company’s press releases, ATB Coin’s co-founder, Herbert W. Hoover III, is a member of America’s iconic manufacturing family who resides in New York and travels worldwide.

Therefore, the Court quickly dismissed Defendant’s argument, holding that there was more than sufficient contact with the state of New York.

#2 — Was the ATB Coin token sale a “securities offering” under U.S. securities law?

Since 1946, the U.S. Supreme Court case, SEC v. W.J. Howey Co., continues to remain the leading standard in U.S. securities law for determining whether or not a transaction is considered to be an “investment contract” (securities offering), or a “commodity” under the U.S. Securities Act.

An investment contract implies that the transaction is a type of security.

In the world of blockchain technology and digital currencies, the Howey Test comprises of three elements:

  1. Was there an investment of money?
  2. Was there a common enterprise?
  3. Was there an expectation of profits predominantly from the efforts of others?

For a token or coin to be considered a “security” under Howey, all three elements must be met.

The third element of this standard encompasses both the third and fourth prongs of the traditional Howey Test.

Was there an “investment of money”?

As for the first element of the test, there was no dispute among the parties that money was invested into this venture.

The issue in this case revolves around the second and third elements of the test.

Was there a “common enterprise”?

The Defendants argued that there was no common enterprise to subject them to the requirements of Howey.

However, the Court disagreed. It found that “Defendants encouraged investors to purchase ATB Coins based on the claim that the speed and efficiency of the ATB Blockchain would result in an increase in the coins’ value.”

It didn’t matter that the coins never entitled the purchaser to a pro rata share of ATB’s profits. Rather, the Court sided with SEC precedent, that an ICO can be a securities offering even where the offer does not provide for a pro rata distribution of profits.

At the end of the day, the success of ATB coins was built upon the success of the ATB enterprise, establishing “horizontal commonality.”

Was there an “expectation of profits predominantly from the efforts of others”?

Yes. The Court pointed to the complaint, which in its belief, sufficiently alleged that the buyers’ profits were based on ATB’s efforts.

In addition to the SEC Consent Order, “2017 In Re Munchee,” the Court looked to the company’s press releases and FAQs — persuasive authority, to help expand on its analysis. Quite literally, the company stated that the coins were a kind of “investment” —

“[…] the first users of ATB Coin cryptocurrency can be compared to investors in a start-up, which can later acquire value, due to its usefulness and popularity. Thus, the acquisition of the first ATB Coin becomes a kind of investment with a long-term perspective.”

What’s nice to see here is the Court’s willingness to look to persuasive sources such as SEC orders, which it has done in the past, such as the DAO Report.

Legalese aside, what you need to know

As of today, the case is still in its early phases, as it took approximately 16 months from the filing of the initial complaint to the recent ruling on Defendants Motions to Dismiss. Why it took this long, we do not know, but it’s only fair to assume that it will take at least another year until we see major news with respect to the next stages in this process — the class discovery and class certification are major aspects to a class-action.

What we can take away from the Court’s ruling on this Motion to Dismiss is that, for the purposes of a Motion to Dismiss, the Howey Test was satisfied for this particular case.

Per the Court, “Defendants promoted the ATB Coin as ‘an innovative decentralized cryptocurrency incorporating the advanced technologies that tailor the needs of primary market players—users, investors, and business owners…’”

Case: Balestra v. ATBCoin LLC et al., 17-CV-10001 (VSB), S.D.N.Y., 3/31/2019

Andrew Rossow is a millennial attorney, law professor, entrepreneur, writer, and speaker on privacy, cybersecurity, A.I., AR/VR, blockchain, and digital monies.

Japanese Cryptocurrency Exchange Zaif to Resume Activity Seven Months After Hack

Japanese cryptocurrency exchange Zaif announced that the transfer of the business from Tech Bureau to Fisco Digital Asset Group (FDAG) will become effective on April 22, and that normal activity will resume on the next day. Cointelegraph Japan reported on the developments on April 20.

Bitcoin (BTC), bitcoin cash (BCH), and monacoin (MONA) were stolen from the exchange in a hack in September last year, resulting in total losses of cryptocurrencies worth 6.7 billion yen (around $59.8 million). With the acquisition, which is a part of the user compensation plan, FDAG provided financial support of 5 billion yen (over $44.6 million) to Tech Bureau and acquired a majority of the company’s shares.

As Cointelegraph reported in October 2018, the sale of the exchange is part of the plan to compensate the users who lost Monacoin in the hack after the sale of the business. The users will be repaid 40% in fiat currency and 60% in crypto. The rate of compensation will be 144.548 yen ($1.28) per MONA which will become available for withdrawal on April 23.

In mid-March, an 18-year-old hacker was referred to Japanese prosecutors for stealing cryptocurrency after allegedly breaching Monappy, a digital wallet which can be installed on a smartphone, and stealing 15 million yen (over $134,000) of cryptocurrency.

Chilean Government Introduces New Cryptocurrency and Fintech Regulation Bill to Congress

The Minister of Finance of the Chilean government Felipe Larraín announced the introduction of a bill regulating cryptocurrencies and fintech to Congress, Cointelegraph Spain reported on April 15.

During his recent stay in the United States, Larraín reportedly noted that the requirements introduced by the new regulation will be proportional to businesses. He explained that the rules will take into account that various companies have different business models, and deliver different services that imply different risks for the users and the financial market.

Local media outlet Ahora Noticias reported that flexibility is among the most important aspects of the bill, since the pace of technological progress is so great. Per the report, Chile is home to a growing number of cryptocurrency exchanges that are currently not regulated. Furthermore, Larrain also reportedly warned the public about the risks of this kind of investments, stating:

“Regulation of these platforms would mitigate some of the risks, such as money laundering and terrorist financing, and increase the legal certainty with which they operate. We want to adequately protect against the risks associated with this kind of activity.”

As Cointelegraph recently reported, the Central Bank of Chile expressed the idea that cryptocurrencies are unable to substitute traditional money.

Also, at the beginning of the current month, the Chilean anti-monopoly court has again granted protection to local cryptocurrency exchanges by forcing banks to keep their accounts open.

SpaceX: Will Mysterious ‘Anomaly’ Ground Elon Musk’s Interstellar Dreams?

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By CCN: Tesla billionaire Elon Musk’s rocket company SpaceX suffered another setback when one of its Crew Dragon capsules encountered a mysterious “anomaly” during engine tests being carried out at the Cape Canaveral Air Force Station on April 20.

The SpaceX facility in Florida was covered in dense orange smoke, though the so-called anomaly was brought under control without any injuries, Reuters reports.

SpaceX Crew Dragon Capsule Encounters Mysterious ‘Anomaly’

SpaceX said in a statement:

“The initial tests completed successfully but the final test resulted in an anomaly on the test stand.”

Though it isn’t clear as to what caused the anomaly, an educated guess would suggest that something went wrong with the engine of the Crew Dragon spacecraft that’s being prepped to take NASA astronauts to the International Space Station (ISS) and back.

Of course, speculation about a potential engine fire remains just that, as both SpaceX and NASA have remained mum on the nature of the “anomaly.” Perhaps that’s because of the massive investment the space agency has made into the project.

Yet Another Blow to Tesla Founder’s Interstellar Dreams

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Elon Musk is also facing troubles at Tesla, forcing him to put out fires on two fronts. | Source: DAVID MCNEW / AFP

NASA doled out a princely sum of $6.8 billion to Elon Musk’s SpaceX and Boeing five years ago. Musk received $2.6 billion of that grant. The companies are tasked with building capsules and rockets that will send astronauts into space from American soil.

That’s why any anomaly at SpaceX will be a big loss of face for NASA as astronauts Bob Behnken and Doug Hurley are set to take the first manned flight in July this year. Any more hiccups could blow up Elon Musk’s SpaceX ambitions into smoke as he is already a couple of years late from the 2017 deadline when the Crew Dragon was originally supposed to take flight.

NASA had to call out Musk and SpaceX earlier this year about safety concerns in its annual report. Reuters reported in February:

“For SpaceX, the report mentioned the redesign of a SpaceX rocket canister following a 2016 explosion and its “’oad and go’ process of fueling the rocket with the crew already inside the capsule.”

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The annual report added  that SpaceX’s launch schedule faces “serious challenges.”

Elon Musk Forced to Fight Fires on Two Fronts

Nothing seems to be going in favor of the embattled Elon Musk. His electric car company Tesla faces an avalanche of problems from production to logistics, even as the company touts alleged advances in self-driving technology.

SpaceX isn’t in tip-top shape either, as Musk laid off 10% of its workforce in January. Around 600 employees lost their jobs as SpaceX decided to become a leaner company in a bid to lower costs and prepare for the challenges ahead.

The silver lining is that SpaceX has already beaten Boeing by successfully sending an unmanned capsule to the ISS in March this year that managed to return safely. But it is an entirely different ballgame when astronauts climb onboard.

Every facet of the spacecraft needs to be checked over and over again until the results are consistent. There should be no anomalies when human lives are at stake.