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LedgerX Director Withdraws Funds Since Firm Fails Its Investors

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An investor and director of LedgerX has withdrawn his funds and claimed that the firm could be failing its investors in a letter obtained by DC Forecast as we are reading further in the blockchain news.

In a letter addressed to the LedgerX Holdings board, LedgerX LLC board, LedgerX shareholders, and the Office of the Inspector General at the Commodity Futures Trading Commission (CFTC), the LedgerX Director Nicholas Owen Gunden wrote that he is worried about how the company was working since the founders of the firm were placed on administrative leave on Dec. 9.

 “I am concerned with recent developments at the company, particularly the fact and manner in which the founders, Paul Chou and Juthica Chou, and particularly Juthica, have been barred from continuing their roles at the company,” he wrote.

According to an exhibit filed by LedgerX in the designated contract market (DCM) application of LedgerX, Gunden was a board member since 2017, as a market participant and was on the disciplinary panel of the firm as of 2019. In a three-page letter in which he lists his concerns, he explained that since the ousting of the founders, no one has worked as his point of contact and claimed that there are some of the shareholders that are receiving preferential treatment.

 “Just days after Paul and Juthica were placed on administrative leave, a petition was circulated at the office, which 75% of employees signed in support of retaining Paul and Juthica’s leadership. I have seen a copy of this petition and believe it to be legitimate,” he wrote.

But two of the employees who filed the petition were let go, “apparently in retaliation,” he suspects.  He is also worried that the company could be no longer compliant with the regulatory requirements and could be failing in the fiduciary duties that are held sacred in the business world. Also, there are other worries about the Holdings board presenting “overly pessimistic” financial statements to the board of directors, that the company is not trying to gather finance outside of MIAX and that the company is paying an extra $60,000 monthly for the security company.

 “From what I can tell, the Holdings board is engaged in grossly negligent actions towards LedgerX market participants, employees, shareholders, and perhaps even CFTC compliance requirements themselves,” he wrote.

As such, many employees are expecting the worst, Gunden wrote: “I have spoken with two current employees and learned that there is a lot of confusion and uncertainty at the company, and I’ve received reports that many employees are interviewing elsewhere in anticipation of the company shutting down.”

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Blockchain Dispute Resolution Firm Listed On London’s Stock Exchange

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The Main Market of the London Stock Exchange now lists a new blockchain dispute resolution firm which uses smart contracts to manage arbitration and dispute resolutions around transactions. As officially announced on January 17, the firm intends to list on the LSE.Proof of Trust Ltd. is the name of the business and even though it did not give any financial details or timetable for the listing, the CEO Dean Armstrong said that the company was excited at the prospect of the listing and “look[s] forward to providing investors with the opportunity to share in this groundbreaking project."Additionally, the blockchain dispute resolution firm describes its proprietary technology in the crypto news as one that stands to be the first-ever "insurance protocol for blockchain transactions and smart contracts." As it stated:
"The Proof of Trust owns the worldwide patents to a protocol which facilitates clear dispute resolution based upon smart contract disputes which are highly efficient both in terms of speed and use of resources."
The system also delivers an anti-collusion algorithm which ensures the authenticity of the data used to execute smart contracts. Proof of Trust claims that the protocol has come to the attention of major governments and corporations globally and has been presented to a number of prime ministers.Now, the blockchain dispute resolution firm is probably going to gain more respect after it decided to seek a listing on the LSE and similar exchanges. The truth is, the crypto industry has long suffered from a poor reputation in the traditional financial circles and the lack of regulation during the ICO boom did nothing to alleviate this.The blockchain news now show that more and more crypto firms are choosing to go down the more traditional route and have an initial public offering (IPO) of shares on a major stock exchange. The first firm which did that on the LSE has been doing pretty well - Argo Mining has added 1,000 new mining machines and had seen its share price almost triple since May 2019, reaching £9.50 ($11.85) per share. Even though the price dropped back, it is still strong standing at £7.15 ($9.32) per share.The market news show that there might be a bullish run soon and that BTC could finally reach the $10,000 mark.
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YouTube Purge Comeback: Davinci Reports His Channel Was Blocked Again

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The YouTube purge is back after it became an important topic in the last days of 2019, but it looks like it could be still in duration. Another well-known cryptocurrency YouTuber has lamented that he received a strike on a live stream video recently and his ability to upload new content was removed as we are reading in the latest cryptocurrency news.During Christmas time in 2019, the most talked topic in the cryptocurrency community was the YouTube purge. The content-sharing platform that is owned by Google began striking, removing videos and deleting accounts that were related to cryptocurrencies. The number of influenced influencers quickly increased, however, the issue was solved in a few days, supposedly. Furthermore, YouTube claimed that it was a huge misunderstanding, that happened because of a mistake, and the videos were allegedly restored.But it looks like things had not changed i.e. things are not back to normal. DAVINCIJ15 well-known crypto YouTuber, claims that he had received another strike on his last live stream video. Although he thinks it is a mistake on the platform’s behalf, he says that he cannot upload or stream any content. The crypto community demonstrated notable support during the first stages of the Purge. The same thing happens again, as a multitude of people shares the post and comment on the subject. One of the well-known defenders is The Moon Carl who in an interview with Cryptopotato asked on the matter is he afraid that the YouTube purge could return he said:
 “Yes, of course! The fact that it happened once shows that it’s completely possible again in the future. However, I don’t think it’s likely that my channel receives any strikes again in this specific purge, because I was reinstated after manual review. But, I think it’s important just to realize how much power YouTube has over YouTubers.”
Also, there are a lot of people that think about the content sharing platform that is owned by Google, as a power monopolist, which is bad for the content creators. They have over and over again emphasized decentralized media sharing platform as a good alternative. Which lacks the centralized part of authority, which will eliminate the ability to ban or delete videos on the concrete topics, such as cryptocurrency.
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Bithumb Filed Complaint Against The National Tax Service

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The well-known and the biggest South Korean cryptocurrency exchange, Bithumb filed a complaint with the Tax Tribunal against the National Tax Service (NTS). The crypto exchange company wants the Tribunal to nullify a tax for nearly $69.3 million, which was imposed by the National Tax Service (NTS) on Bithumb’s customers as we are reading further in the blockchain latest news.At the end of 2019, the National Tax Service (NTS) imposed $69.3 million of withholding tax on the customers of Bithumb according to a certain report. Then this was the first case where the South Korean authorities had taxed crypto transactions.The well-known exchange expressed that it will take legal actions towards the decision of the National Tax Service (NTS), and it looks like they have fulfilled their promise. Earlier this day, South Korean news reported that Bithumb filed a complaint with the Tax Tribunal. The crypto exchange claims that the needed taxes are already paid by them and that the National Tax Service (NTS) request is without any ground. An official from Bithumb spoke on the issue:
 “We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.”
The withholding (retention) tax must be paid to South Korea by the payer of the income and not the recipient. The Tribunal has to bring a decision on the case in a deadline of 90 days. The defense of Bithumb is grounded on the fact that cryptocurrencies are still not recognized as currencies by the South Korean law, and that authorities should not tax them based on that.This is where the arguments crash. The National Tax Service (NTS) considers that the gains withdrawn in Korean Won from foreigners must be taxed. But experts on the issue are supporting the argument of Bithumb, that cryptos are not still regulated under the tax laws of South Korea. An adviser to the Financial Supervisory Service, Choi Hwoa-In Supposedly talked about this:
“Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.”
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Nakamoto LTD Insurance For Custody Accounts Launched By Gemini

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Today, the US Exchange Gemini by the Winklevoss twins, launched Nakamoto LTD, a captive insurance company that will serve the custody accounts according to the reports that we have in our cryptocurrency news.The press release says that the announcement explains that with the coverage of up to $200 million for offline storage but it is the largest purchase by any other crypto custodian across the globe. The insurance company is called Nakamoto LTD and is licensed by the Bermuda Monetary Authority and the company worked with the insurance brokers Marsh and Aon to set up the platform in Bermuda which is a commonplace to set up a business because of the favorable tax conditions.The latest risk-mitigation development of Gemini, gone to great lengths to ensure compliance with the US regulators and security for the client base and it now offers the clients the opportunity to purchase additional insurance for the separated crypto assets along with the hot wallet coverage for the funds to be kept online. The US dollars that are held on the Gemini platform are covered by the Federal Deposit Insurance Corporation which is a ‘’pass-through’’ deposit insurance for up to $250,000 per customer. This kind of insurance is American federal-level insurance which covers all of the qualified accounts.Aon serves as the captive manager and Marsh’s Digital Asset Risk Transfer team worked for the broker excess insurance from the commercial markets. It is evident that the self-insurance funds are now much more common in the crypto exchange and it is welcomed by the crypto community since it provides some assurance to the users that their funds are safer from theft. Binance divers a share of the trading fees into the self-managed insurance fund that is called SAFU which was used to cover the individual losses when the exchange got hacked last year.The captive insurance operates separately from the company of which it operates and these companies are formed by larger firms as a means of formalizing the self-insurance. Rather than purchasing insurance policies with the help of third parties, a company can choose to self-insure against the losses by setting up a fund. Gemini is now a subsidiary that provides risk mitigation services that will cover the financial losses that are not dissimilar to an external insurer.
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