Auscoin Exchange Suspended After Arrest of Sam Karagiozis

At the time, Auscoin had installed four machines in Australia, with purported plans to finance the 1,200 terminals through an initial coin offering.

27-year-old Sam Karagiozis has been named as the individual arrested on March 7 following raids carried out by the Australian Transactions Reports and Analysis Centre (AUSTRAC) and Australian Federal Police. The arrest resulted in the suspension of the licenses of two cryptocurrency exchanges that Karagiozis is involved with including his controversial nationwide cryptocurrency ATM network, Auscoin.

Also Read: Malta Appoints Cybersecurity Firm Ciphertrace to Monitor Crypto Transactions

Auscoin Suspended Following Arrest of Founder

Karagiozis was arrested last week following a series of raids conducted by Australian authorities in the Victorian suburb of Bulleen.

Karagiozis has been charged with possessing, importing, and trafficking roughly 30 kilograms of controlled substances, including MDMA, methamphetamine, cocaine, and ketamine via darknet marketplaces. Police allege that Karagiozis played a “key role” in directing the operations of an illegal narcotics syndicate.

Auscoin Exchange Suspended After Arrest of Sam Karagiozis

Authorities have also revealed that one of the cryptocurrency exchanges suspended following Karagiozis’ arrest is Auscoin. It has been reported that Karagiozis invested $15 million into Auscoin, which sought to roll out Australia’s first nationwide ATM network.

Karagiozis a Fixture in Australian Media

Self-described “serial entrepreneur” Sam Karagiozis has received frequent coverage in the Australian media in recent years. Last month, Auscoin was the subject of a report aired on prime time television that described the company’s purported plan to install 1,200 bitcoin ATMs as an “$80 million scam” built on “grandiose promises.” At the time, Auscoin had installed four machines in Australia, with purported plans to finance the 1,200 terminals through an initial coin offering.

During January of this year, media reported that Karagiozis had incurred a 3 million Australian dollar (approximately USD $2.13 million) loss during the bear trend. Karagiozis also asserted that Auscoin had a turnover of $500,000 Australian dollars each week.

Auscoin Exchange Suspended After Arrest of Sam Karagiozis

In January 2018, the Auscoin founder had urged investors to buy BTC, asserting that “The first quarter of [2018] is probably the last opportunity people are ever going to get to buy Bitcoin for under AUD$20,000 a coin.” In December 2017, Australian tennis star Nick Kyrgios indicated that he purchased BTC from Karagiozis.

What is your reaction to the founder of Auscoin’s arrest? Share your thoughts in the comments section below.


Images courtesy of Shutterstock, Twitter


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Samuel Haig

Samuel Haig is a journalist who has been completely obsessed with bitcoin and cryptocurrency since 2012. Samuel lives in Tasmania, Australia, where he attended the University of Tasmania and majored in Political Science, and Journalism, Media & Communications. Samuel has written about the dialectics of decentralization, and is also a musician and kangaroo riding enthusiast.

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Ethereum (ETH) Is Not a Security, SEC Chairman Hints on Official Response to Congressman

Securities and Exchange Commission Chairman Jay Clayton confirmed an existing analysis stating that Ethereum and other tokens of similar …

Securities and Exchange Commission Chairman Jay Clayton confirmed an existing analysis stating that Ethereum and other tokens of similar characteristics did not fall within the securities category under SEC standards.

Comm. Jay Clayton

Mr. Clayton issued that statement in an official response to US House Rep. Ted Budd, who requested a formal pronouncement from the commission asking to clarify certain positions regarding cryptocurrencies. One clarification he asked for was to corroborate whether the opinions expressed by William Hinman, SEC Director of the Division of Corporate Finance, were representational or personal in nature.

As previously reported by Ethereum World News, Mr. Hinman was invited to the All Markets Summit organized by Yahoo Finance on Thursday, 14 June 2018 as a member of the SEC, and during that event explained that because of its characteristics, ETH (the native cryptocurrency of the Ethereum network) was not considered a security:

“When we think about how ether today is operating, at least, we see a highly decentralized” network, not the type of centralized actor that characterizes securities offerings. In its current state, we don’t see value regulating it.”

However, despite the positive effect this opinion had on the markets, the non-formal nature of this event raised doubts in the community. This motivated Mr. Ted Budd and a group of congressmen to ask the SEC for greater clarity regarding cryptocurrencies, ICOs and the like:

Ethereum and Other Projects Don’t Pass The “Howey Test”

Mr. Clayton’s official communication on behalf of the SEC points out that while each cryptocurrency, token or ICO must be evaluated individually, the general criteria allow the civil society to have an approximate understanding of whether a token is a security by applying the Howey Test.

“We also apply tests developed through case law, including the well-established “investment contract”* test articulated by the Supreme Court in SEC v. Howey and its progeny, including United Housing Found, Inc. v. Forman. As those cases explain, the “touchstone” of an investment contract “is the presence of an investment in a common venture premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.” The determination of whether a digital asset is an “investment contract” depends on the application of Howey and its progeny to the particular facts and circumstances of the digital asset transaction.”

Broadly, according to the Howey Test, a transaction is an investment contract if:

  1. It is an investment of money
  2. There is an expectation of profits from the investment
  3. The investment of money is in a common enterprise
  4. Profit comes from the efforts of a promoter or third party

Good News For The Ecosystem

For further clarity, Mr. Clayton specifically referred to the words of William Hinman, Director of the SEC’s Division of Corporate Finance. In the letter, Comm. Clayton confirmed that Ether (and tokens of similar characteristics) were not considered Securities:

“Your letter also asks whether I agree with certain statements concerning digital tokens in Director Hinman’s June 2018 speech. I agree that the analysis of whether a digital asset is offered or sold as a security is not static and does not strictly inhere to the instrument. A digital asset may be offered and sold initially as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset later is offered and sold in such a way that it will no longer meet that definition. I agree with Director Hinman’s explanation of how a digital asset transaction may no longer represent an investment contract if, for example, purchasers would no longer reasonably expect a person or group to carry out the essential managerial or entrepreneurial efforts. Under those circumstances, the digital asset may not represent an investment contract under the Howey framework.”

Mr. Clayton’s statements are of special importance for traders of ETH and other similar tokens since they open the doors to American exchanges to operate freely without the uncertainty of being accused in the future of illegal operations with undeclared securities.

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What is Tether (USDT)? Full guide on the most stable coin

Tether (USDT) is a cryptocurrency that supports virtual internet payments and is … Coins like Tether that serve the purpose of being stable currency …

What is a Tether coin?

That’s the most common question many cryptocurrency investors ask themselves when they come across the coin for the first time. Tether (USDT) is a cryptocurrency that supports virtual internet payments and is pegged on the American dollar.

It is essential to understand that USDT coin is by far the most stable cryptocurrency with its value at an almost stagnant position of about one dollar, unlike other currencies that rapidly decrease and increase in value over time.

Coins like Tether that serve the purpose of being stable currency replacements on the internet are known as stable coins.

Brief history of Tether

Tether was first brought into the market in the year 2014 after re-branding from Realcoin. Realcoin is what laid the foundation for the creation of the Tether existing today and was founded by Craig Sellars, Brock Pierce, and Reeve Collins.

The main aim of Realcoin founders was to provide people with a cryptocurrency that would have a direct 1:1 ratio with common currencies such as the US dollar so that it could facilitate international internet payments.

Unique features of USDT coins

Just like most cryptocurrencies, Tether has some specific and unique solutions it brings to the crypto community. Below, we shall outline a few of these solutions.

Image result for advantages and disadvantages of tether
  • USDT Supports cross-currency transactions; unlike other cryptocurrencies which are usually limited to exchange with the same currency, you can easily use Tether to transact with US dollar, Euros and the Japanese Yen.
  • Tether is highly stable; this crypto coin has high stability in the cryptocurrency market. The USDT is pegged on a single US dollar, and the value does not change or will not change any time soon.
  • USDT is one of the few coins that actually tether ‘real world’ currencies to digital currencies. The other two coins that support the same are Nubits and Timekoin.

HowTether works

Just like many other cryptocurrencies, USDT also exists on the blockchain running on an Omni protocol layer. The Omni protocol layer is a software that works with blockchains to facilitate the transfer and redemption of Tether coins.

Image result for usdt tether

The blockchain technology completes USDT transactions just like other cryptocurrencies such as Bitcoin and Dogecoin. Also, USDT coins are usually issued by Tether limited.

USDT’s stability is brought about by the fact that it was created to use the Bitcoin blockchain technology in its inner core which is by far a very secure and stable blockchain.

It is important to note that over time, USDT has accepted the Ethereum transport protocol which now makes it possible to transfer Tethers into any Ethereum address directly. However, Tether users are cautioned to be very careful when making the transfers so that one does not end up sending his/ her USDT coins into a Bitcoin destination address instead of an Ethereum address.

You can easily exchange your Tethers on common exchange sites such as Kraken, shapeshift, Bitfinex and GoCoin.

Image result for tether stability

Advantages of Tether

  • Transparency of the stable coin

Transparency is by far the most importantbenefit of using Tether coins; openness has made it easy for people tounderstand how it functions, sells and is regulated. Many people tend not toinvest in cryptocurrencies because of the complex nature and non-transparentnature of the market.

Unlike other coins, one Tether is equivalent to one common currency such as USD and the Yen. Therefore, an investor will invest knowing the actual value of the coins he/ she is buying and that the value will not change anytime soon.

With most coins, investors are not certain of what the price of their coins will be in the future since most cryptocurrencies undergo rapid price fluctuations which makes it a risky investment.

In 2017 for example, we saw Bitcoin increase in price by over $1,000 within a few hours and also drop several hundreds within a short period.

Additionally, the company managing USDT usually shares all transactions related to tether which reaffirms the confidence people have in tether.

  • Safety of the stable coin

As stated earlier, Tether runs on the bitcoin network which has high-security measures compared to most new platforms. Therefore, Tether users can trade safely knowing that their money has been stored safely. It is also widely known across cryptocurrency communities that it is difficult to break into the blockchain technology.

  • Low volatility of the stable coin

(Chart showing the stability of the USDT)

The general perception of people about the cryptocurrency market isthat it is a highly volatile market associated with great risks (this has beenbrought about by many factors such as negative publicity created by governmentsand media, rapid price fluctuations, etc., but this is a topic for anotherday). The negative perception has made it hard for many people to invest inthis market.

However, with the USDT, there is no such volatility. The value of tether is always fixed at one US dollar regardless of the market situations.

  • Quality of customerservice at Tether limited

Tether limited has highly skilled and professional customer care agents to serve Tether traders. Their services are usually available for 24 hours throughout the week which makes it convenient for traders to get help at any time. However, the team currently serves English speaking traders, but plans are underway to include other languages.

Set backs of USDT

While Tether brings much into the crypto space it is, however, good to point out that the profits associated with investing in the tether market are minimal if any, and thus people that wish to gain money from the cryptocurrency world should avoid investing in Tether. Once you make the purchase of Tether coins for one dollar, you are not going to sell it any higher price because already its value is fixed at that one dollar.

The primary purpose of the stable coin is to preserve currencies and purchase other Cryptocurrencies when need be and not for direct profit making.

Also, there are unconfirmed allegations that the stable coin is being used to manipulate the price of Bitcoin

Furthermore, though it is said to be secured, the stable coin reportedly lost over $31 million the past to hackers.

Lastly, USDT is considered to be controversial because it has not been able to provide audits it had promised to release showing the reserves backing it.

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EU Blockchain Observatory Suggests Way Forward On Scalability, Interoperability

The report, produced by ConsenSys using EUBOF stakeholder input, suggests that “permissioned, purpose-built blockchain platforms” aimed at …

Earlier this month, the European Union Blockchain Observatory and Forum (EUBOF) released a report outlining the steps needed to improve blockchain scalability, interoperability, and sustainability in Europe. The report, produced by ConsenSys using EUBOF stakeholder input, suggests that “permissioned, purpose-built blockchain platforms” aimed at specific use cases and user bases will constitute the first wave of blockchain technology adoption in Europe.

The report maintains there is much work to be done before the mass adoption of blockchain technology becomes a reality in Europe and around the world and devotes some space to the “trilemma”: “[B]lockchains can generally have only two of the following three properties: scalability (that is, performance in terms of speed and volume), decentralization or security.” While a highly decentralized and secure blockchain platform may not be scalable, a scaled and decentralized platform may not be secure. EUBOF suggests sacrificing a degree of decentralization in order to achieve a secure and scalable blockchain.

EUBOF’s main concern, then, is that blockchain platforms be interoperable. That is, they should have “the ability to exchange data with other platforms, including those running different types of blockchains, as well as with the off-chain world.” EUBOF believes a small global network comprised of interoperable blockchain platforms will be the “backbone of a Web of Value” for the blockchain industry.

On the topic of interoperability between blockchain platforms, the report provides two recommendations. It first suggests that trusted communication between two or more blockchain platforms can be achieved by utilizing a third-party “off-chain entity” to validate transactions and information. This party would be responsible for either transferring information between platforms or recording the state of the different platforms – much like a notary service – so that each participant is able to trust the information. The report also suggests that interoperability can be achieved through cross-blockchain bridges and EDCCs (aka “smart contracts“), which can be used to share and verify information.

Moving on to sustainability, EUBOF suggests that developers and designers need to move away from the energy-hungry “proof-of-work consensus mechanism” to more energy efficient mechanisms like proof of stake. It also says that designers and developers need to pay close attention to the sources and amount of funding they receive, the quality of government regulations, and the “capitalisation of the token associated with the protocol.”

Finally, the report gives some advice to policymakers that EUBOF believes will ensure the adoption of blockchain technology in Europe. European regulators should take a “wait and see approach” and let designers and developers “experiment and learn” how to best use blockchain technology before implementing laws and regulations. Policymakers, meanwhile, should be well-versed in blockchain technology and work alongside established participants in the blockchain industry to develop a regulatory and legal framework.

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TOR-X NETWORK LTD launches the private sale for TOR-X

The private node sale will be offering 29% of the TOR-X Token to interested persons with the major initial coin offering taking 28% of the distribution.

Unique Ecosystem for decentralized cross-chain exchange, TOR-X NETWORK, announces the launch of the private node sale of the TOR-X Token

TOR-X Network is a unique ecosystem that is looking to use the blockchain technology to create a tool for seamless cross-chain exchange with Bitcoin, Ethereum, Neo, Eos, and other digital currencies. In line with its goal of literally liberating the world of digital currency, TOR-X NETWORK has announced the sale of the TOR-X token in a private sale, as part of the aim of offering more than 100,000 TPS network speed to satisfy the growing market requirements.

The digital currency space has evolved over the years and while technology and even financial experts have described cryptocurrency and the blockchain technology as a whole as the future of not only the financial system but several other industries. The likes of Bitcoin and other major cryptocurrencies as well as other tokens have particularly substantiated the claim of the blockchain technology being the future. The increasing popularity of digital currency has led to the emergence of several crypto exchanges, allowing people to trade their holdings while making some money off the digital currency space. Unfortunately, the cryptocurrency space has been plagued with several challenges. This is where TOR-X Network is looking to make a difference with the launch of its unique ecosystem.

TOR-X Network aims to solve a plethora of problems including creating a tool for seamless cross-chain exchange with Bitcoin, Ethereum, Neo, Eos, and other blockchains and reaching 100,000 TPS network speed to satisfy growing market requirements. Other problems that the innovation is looking to solve include anonymous and traceable transactions for various business applications, and Node and super node title redistribution controlled by Multi-Criteria Decision Making Neural Network.

The private node sale is part of the network’s goals of making every interested person become a part of the digital revolution that will change the cryptocurrency space for a very long time. Holding the token offered by the secure cross-chain exchange solution also comes with an additional income-earning benefit, allowing holders of the node to earn passive income.

The private node sale will be offering 29% of the TOR-X Token to interested persons with the major initial coin offering taking 28% of the distribution. Another major part of the TOR-X Ecosystem is the TOR-X DEX iDApp architecture, which is focused on building machine learning algorithms instead of pre-coded business logic, as this approach is standard in the digital and financial industries nowadays.

More information about the TOR-X token and the innovative ecosystem can be found on the website and Whitepaper. TOR-X is also available across several social media platforms including LinkedIn, Telegram, and Twitter.

About TOR-X NETWORK LTD

TOR-X NETWORK is an innovation ecosystem for decentralized cross-chain exchange. TOR-X team consists of a team of experts from different parts of the world to drive the revolutionary blockchain idea.

Media Contact

Company Name: TOR-X NETWORK LTD

Contact Person: Lukas Volkerer

Email:Send Email

Phone: +442078433095

Country: United Kingdom

Website:https://tor-x.network/

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