The former CEO of the now long time not operating Bitcoin exchange Mt.Gox Mark Karpeles that we covered multiple times in our blockchain news was denied his motion to stay the US lawsuit against him during the rehabilitation proceedings taking place in Japan.
The motion was denied by the Illinois Northern District Court judge Gary Feinerman after the court also ruled to extend the deadline for responses submission to May 15, 2019. Karpeles filed a motion to stay the case after it was launched by former investors and according to the documents; he claimed that the rehabilitation process in Japan will likely bring to a total recovery to the lawsuit plaintiffs Gregory Greene and Anthony Motto.
The plaintiffs wanted to hold Karpeles liable for the losses they suffered after the hack of the Mt.Gox exchange and claimed that they couldn’t get their funds back after the exchange bankrupted.
However, Karpeles said that the bull market that swiped the market could provide a full recovery and this is why he suggested that the case should be stayed in order to be able to conserve judicial resources and to avoid further expenses.
Mt.Gox exchange was hacked back in 2011 and more than 24,000 investors were affected. The exchange collapsed in late 2014 and led to the loss of nearly 850,000 bitcoin valued at $460 million at the time which today would be estimated to a stunning $3.2 billion.
Karpeles denied the claims from crypto enthusiasts Brock Pierce who claimed he could reboot the trading platform and compensate Mt.Gox’s creditors. Karpeles said Pierce is illegitimate and unable to re-launch the exchange.
Karpeles is facing jail time of ten years over the alleged embezzlement.
Crypto And Forex Scams Got Away With $34 Million In 2018: UK Report
“Scammers can be very convincing so always do your own research into any firm you are considering investing with, to make sure that they are the real deal.”The report is a viral topic in the latest cryptocurrency news - mostly because the FCA stated that scammers use social media to find potential investors. According to the regulator, crypto and forex scams like these often use pictures of celebrities with fake endorsements alongside images of luxury goods such as cars and watches. In 2018, the initial coin offering (ICOs) advisory firm Statis Group released a study in which it found that more than 80% of ICOs in 2017 were scams. The associated losses for that year, as the study showed, totaled around $1.34 billion. In the latest altcoin news, we can also see that new evidence surfaced, suggesting that purported Bitcoin (BTC) exchange Goxtrade is a Bitcoin scam. As the evidence shows, Goxtrade reportedly used the real names and photos of unaffiliated parties including the blockchain figure Amber Baldet to fill their website staff page and its absent from the UK's registry of companies and businesses. All in all, the number of crypto and forex scams is increasing and there must be certain regulation to prevent these billions which are lost on a yearly basis.
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Binance Bitcoin Scam: Hackers Steal 7,000 BTC In Security Breach
“Please also understand that the hackers may still control certain user accounts and may use those to influence prices in the meantime. We will monitor the situation closely. But we believe with withdrawals disabled, there isn’t much incentive for hackers to influence markets.”Right now, Zhao believes that the Bitcoin scam won't have a big incentive to influence markets. As he added, he is working on conducting a Twitter AMA to field questions from the community. The Binance Bitcoin scam has triggered the exchange to use a Secure Asset Fund for Users (SAFU) which will help and cover the incident. The altcoin news show that there is no risk for other altcoins to be stolen. As a reminder, Binance created the fund in July 2018 as a type of emergency insurance for cases like these.
ISIS Used Bitcoin To Fund Horrific Sri Lanka Easter Bombings: Research
“CoinPayments admits that their wallet was involved but denied that it is connected to ISIS,” the blockchain intelligence firm told Globes. “It’s possible that the company is not aware of the usage of their wallets, perhaps because ISIS uses straw companies [to] transfer the money.”For all of you wondering why ISIS used Bitcoin and not any altcoin (which would been featured in our coming altcoin news), the truth is that ISIS-linked Bitcoin wallets exist and WhiteStream has been following them for the past two years. In fact, the company maximized its focus on one specific Bitcoin wallet which was receiving donations actively over different periods. In that manner, WhiteStream found that ISIS used Bitcoin from a wallet address listed on the ISIS fundraising website. According to Levy, the transactions were passively traced back to CoinPayments while the company did not know that they were actually facilitating the ISIS Bitcoin funding campaign. As Levy said:
“Our assumption is that the terrorist organization probably possesses many bitcoin addresses through CoinPayments, with every donation sent to a different address,” Levy told Globes. “On the day before the Sri Lanka terror attacks, we identified two relatively big transactions at this address with bitcoins worth about $9,800.”In February, Whitestream had named CoinPayments for facilitating Bitcoin-enabled donation campaigns for Hamas which is a Palestine-based Sunni-Islamist fundamentalist group.
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