In a recent report, the firm tracking the market cryptocurrencies Coin Metric pointed out that the majority of the trading volume in the pair bitcoin – dollar in exchange houses in the united States, moves through four companies.The study, published this week, assessed how it is distributed the trading volume of bitcoin between the houses of change, based on data from the first of April, 2019 until the date of publication, the 10 of September of this year. According to analysts, the concentration of trade in a single currency exchange house can pose risks to the market if it fails, as happened in the past with Mt Gox. In that case, the house of change concentrated 70% of the trade of bitcoin.The evaluation was made based on the trading volumes of bitcoin against the u.s. dollar in nine exchange houses in the united States. The results reveal that the majority of the operations are concentrated in Coinbase, Bitfinex, Bitstamp, and Kraken. These four companies handle 85% of the total volume of the markets evaluated.Coinbase, the exchange house with the highest total trading volume in the north american country, showed figures of up to 32% of the total trade of bitcoins against us dollars in the period under review. In addition, the report points out that the house of change increased in 8% of its operations in that market, to the detriment of Bitfinex, whose share fell from 25% to 19%. This loss of the market volume of Bitfinex has its explanation in the recent legal problems faced in the united States.Source: Coin MetricEn the period studied, the average volume of exchange of bitcoin for an hour, through Coinbase, ranges between 300 BTC and 2,000 BTC. According to the report, the rest of the houses of change assessed for the study, including Gemini, itBit and Bittrex have volumes less than 10%, an amount quite lower than that shown by Coinbase.The analysts of Coin Metric provided that, due to regulatory pressures force, Coinbase could concentrate even more of the market BTC – USD, “as more and more houses change to limit the access of the traders based in the united states. UU.”. This would imply a risk concentration of the trade of bitcoin, as mentioned previously.It is worth remembering that the asian Binance, the greater house of change criptomoneda to criptomoneda by volume traded, announced in June of this year that he would no longer serve the u.s. market through its main platform, Binance.com. The company was forced to create a new platform that will be compliant with the regulations of the united States, to cater to the users of that country.
- Moscow-based law firm ZP Legal claims to have identified Russian nationals who received bitcoin stolen in the 2014 hack of Mt Gox.
- Local law enforcement is investigating Alexander Vinnik, the alleged operator of the defunct exchange BTC-e.
- ZP Legal says Mt Gox creditors who come forward as potential BTC-e victims may help Russian authorities establish a connection between the exchanges.
- To cut a deal with law enforcement, those who benefited from the Mt Gox hack might offer to return funds to the exchange’s creditors, the law firm reckons.
While creditors of the defunct Mt Gox bitcoin exchange wait for the Japanese courts to resolve the fate of their money, a Moscow-based law firm is proposing a different solution.
According to Mt Gox creditors, ZP Legal contacted them earlier this year, offering an opportunity to recover almost a quarter of the missing 850,000 bitcoins stolen in the 2014 hack of the exchange. (The coins were worth more than $450 million at the time of the theft and $8.5 billion today.)
ZP Legal estimated 170,000 to 200,000 of these coins, currently worth $1.7 billion to $2 billion, can be recovered by taking legal action against Russian nationals who received the stolen money.
In return for its assistance, the law firm will charge creditors 50 to 75 percent of the recovered sum, as well as an hourly rate. However, ZP Legal says it will only accept payment in the event of a successful recovery.
Alexander Zheleznikov, the managing partner of ZP Legal (ZP stands for Zheleznikov and Partners), said he believed that some of the money stolen from Mt Gox might have ended up on another defunct crypto exchange, BTC-e. In fact, this longstanding claim has been investigated by former Mt Gox user Kim Nilsson and alleged in an order by the U.S. District Court of the Northern District of California.
Following this order, the alleged operator of BTC-e, Russian national Alexander Vinnik, was arrested in July 2017 in Greece and is now facing extradition to the U.S., Russia or France to face trial over money laundering charges.
Zheleznikov believes the criminal case against Vinnik, which Russian authorities are also investigating, can be accelerated if Mt Gox creditors come forward as victims and help law enforcement establish a connection between Mt Gox, BTC-e, and BTC-e’s successor, the also-failed Russian exchange WEX.
“Our plan is to represent the Mt.Gox creditors and help them report to Russian law enforcement so that the investigators could establish the connection between the stolen funds from Mt Gox, the operations of BTC-e and WEX, using Vinnik’s case,” Zheleznikov said. He added:
“If our assumptions of those connections are correct, the [thieves] will ultimately come forward and plead guilty, and to reduce the punishment, they will offer to recover a part of the funds. If they don’t, they will be deemed guilty by law enforcement, and then there will be a chance to sue them for damages based on the criminal case.”
Zheleznikov said his firm reached out to lawyers representing the Mt Gox creditors, and later the creditors themselves, with the help of the Russian embassy in Tokyo. (The embassy did not respond to a request for comment.)
Andy Pag, the founder and former coordinator of the largest group of creditors, Mt. Gox Legal (MGL), said he was first contacted by the firm on Feb. 22, soon after ZP engaged with the Japanese lawyers working on the Mt Gox case.
“Lawyers for ZP held meetings in Tokyo with the creditors, and separately with the Mt. Gox Legal (MGL) insolvency lawyers, MHM Japan, on Feb. 15, 2019. I was the coordinator of MGL at the time so MHM made the introduction,” said Pag, who stepped down from Mt. Gox Legal at the end of March
He went on to add:
“There was a long hiatus after that, but more recently they re-contacted me asking me to help them devise their process for verifying individuals are valid victims of the theft, and a process to reach those individuals.”
According to a creditors’ discussion on a closed forum, ZP Legal claimed to have recovered as much as $1 million of funds on behalf of an unnamed client of the Russian crypto exchange WEX.
Zheleznikov refused to discuss the sum with CoinDesk but confirmed his firm worked with two people whose money was frozen at WEX. ZP Legal started its own investigation and the police started a preliminary investigation, and soon some people reached out to the firm and offered to compensate the WEX users’ losses, he said.
The firm connected the two sides and the next thing Zheleznikov heard was the victims telling him that “the matter was resolved,” he told CoinDesk. He refused to name either of the people involved in that deal.
According to a document shared by Pag, ZP Legal told Mt Gox creditors that through a “close cooperation with law enforcement” it believed it could recover “up to 170,000 – 200,000 BTC.”
At the same time, the firm admitted it doesn’t know the identities of all people involved in the theft — it will be up to law enforcement to find the culprits. Speaking to CoinDesk, Zheleznikov said the amount is an estimate based on the number of creditors ZP hopes to take on as clients.
Zheleznikov stressed that his clients can expect to receive not bitcoins themselves but their fiat value now.
“I don’t promise to recover bitcoins,” Zheleznikov told CoinDesk. “Only those funds will be recovered that a court will be able to forfeit.”
In the document Pag shared with the creditors, ZP describes how the loss will be calculated.
“If you held a balance on Mt Gox of say 100 BTC on the day it closed, to calculate your Russian police claim you must convert this to hard currency based on the current rate, for instance $10,000/[BTC] means your claim will be $1,000,000, in Roubles,” the document says.
A potential problem with this approach is that digital assets have no legal status in Russia at the moment, as in many other jurisdictions, and there is no clear methodology for valuing cryptocurrency. Zheleznikov admits that his firm will be acting in the absence of settled practices.
“We’re not sure [we will be able to convince the police to trust our estimates], we’re entering a grey zone where nobody has ever gone before. We’re not promising anything — we assume that we have certain legal skills and there are some existing laws, and we hope to leverage it all,” Zheleznikov said.
He admitted there might be “years of the legal fight, refusals from the police and legal practice formation” ahead.
While not widely known in the Russian crypto space, Zheleznikov has a remarkable track record as an attorney for a number of cases making waves in Russia in recent years.
In particular, since 2014, Zheleznikov has been defending the Russian neo-Nazi Maxim Martsinkevich, nicknamed “Tesak” (the Hatchet), who is serving a 10-year term in Russian prison for assaulting people he and his associates believed to be drug pushers.
Zheleznikov has also defended popular Russian journalist Anton Krasovsky and oligarch Konstantin Malofeev who is believed to be a sponsor of the separatist forces that confronted the Ukrainian army on the South East of Ukraine in 2014.
Mt Gox disclosed the theft of approximately 850,000 bitcoin (worth more than $450 million at the time) in February 2014. The exchange suspended trading, filed for bankruptcy protection and began liquidation proceedings.
According to security firm WizSec, most, if not all, of the missing bitcoin were stolen from the exchange’s online, or hot, wallet between 2011 and 2014.
The exchange transitioned from bankruptcy proceedings to civil rehabilitation, a debtor-friendly form of corporate restructuring, last year, meaning creditors will receive bitcoin instead of a fiat sum.
However, due to a large number of claims and other ongoing legal issues, it is unclear when these funds will be returned. A deadline for filing a civil rehabilitation plan was postponed in April by Mt Gox’s trustee, Nobuaki Kobayashi, and no plan will be filed before the end of October.
Alexander Zheleznikov image courtesy of himself
Last week, an unknown person or group transferred 94,505 bitcoins valued at over $1 billion USD in a single transaction. Now, observers are scratching their heads over the question of who is responsible for the eye-popping transfer.
Whale Alert, a Twitter account dedicated to live tracking of large cryptocurrency transactions, first spotted the transfer and tweeted an alert minutes after it happened late on Thursday night, EST time.
That transaction seems to be one of the recipient address’ first, followed by dozens of smaller transactions ranging from $6,644 to $.07. For now, it’s anyone’s guess as to who is behind the transaction, as the addresses involved aren’t known to the cryptocurrency community (all Bitcoin addresses are pseudonymous but can gain recognition through re-use or public identification by the owner.)
There are only around 100 Bitcoin addresses holding more than 10,000 bitcoins, accounting for 14.95 percent of all mined coins, according to BitInfoCharts. Many of the largest holders are Bitcoin exchanges. Besides companies and institutions, there are also “whales” who have accumulated large hoards of bitcoins either through mining or savvy investing.
The idea that a business may be involved led to the theory that Bakkt, a Bitcoin futures provider that opened a “warehouse” to store customer funds on September 6, was responsible for the transaction.
TokenAnalyst, a blockchain data analyst firm, said on Twitter that a third of the bitcoins could be traced back to Huobi—a Singapore-based cryptocurrency exchange. “Our team is looking into the validity of the claim,” said a Huobi spokesperson according to Coindesk.
On July 29th, Larry Cermak, Director of Research at cryptocurrency news outlet The Block, spotted a whale moving 142,323 BTC (valued at $1.3 billion at the time). Cermak suggested that cryptocurrency wallet company Xapo may have been responsible.
One notable element of the $1 billion Bitcoin transfer is the fee—0.06 BTC, or roughly $600 USD. Fees are attached to Bitcoin transactions in order to incentivize miners to include them in the next block of data added to the Bitcoin blockchain. While some observers saw this fee as overpaying, others noted that getting a transfer worth $1 billion on the blockchain ASAP may have been incentive to the sender.
Time will tell if it was in fact Bakkt, some other exchange or wallet, or a different whale entirely.
As it is known to all, the transaction history of bitcoins is completely open. Everyone can query the cash inflow and outflow of your wallet through your wallet address in the blockchain, and can trace back to the ultimate origin of bitcoins, that is, the address sent to after the block is created. This poses a great threat to personal privacy.
Based on this background, PY was born, but is this kind of anonymous currency really safe? According to a team member of a development team, some anonymous currencies have so far been unable to query the blockchain or even have no encrypted wallet, and some anonymous currencies have had black swan events.
Such as the famous Mount Gox Mt. The Gox incident, the recent KYC data leak by Binance, and the inexplicable loss of some wallets all cast doubt on the safety of the currency circle.
In order to solve the current dilemma, the Privacy Chain Foundation has launched a privacy chain platform, which is dedicated to the privacy and anonymity of blockchain assets.
Introduction to Privacy Chain
The privacy chain is developed by Europe’s top virtual currency development team, which has been committed to developing blockchain mining technology and privacy anonymity technology. As an organization that already has professional level and zero-currency contract technology, the Privacy Chain Foundation has perfect system and experience, both in terms of basic resources to professional technology and from energy integration to organization and management.
The Privacy Chain Foundation, led by its own zerocoin protocol technology, has jointly developed an application token, PYC, for the privacy of blockchain assets.
Privacy Chain(PYC) is an crypto currency that protects the privacy of accounts by using the zerocoin protocol. It is the first crypto currency to implement the zerocoin protocol, which ensures that the relevant address information of both parties to the transaction is not leaked through the use of zero-knowledge proof. PYC distribution adopts a comprehensive mechanism of investor return+mining, which guarantees the interests of miners and investors in the later stage on the basis of ensuring the development cost of the development team in the early stage.
The privacy chain ecological platform closely links “block chain+asset privacy anonymity+mining” in a new way, forming an unprecedented digital world application ecology. In addition to forming a vertically integrated circular ecological chain of “block chain+asset privacy anonymity+mining”, block chain, asset privacy anonymity and mining each form a horizontally expanded open ecological circle. The ecological chain and the ecological circle crisscross each other to form a matrix structure, which together form an ecological system with complete private chain and open circulation. Each link in the private chain ecology has its own system, which enables the private chain ecology to self-circle, self-hatch, self-evolve, self-innovate, and continuously create brand-new values.
The Privacy Chain Foundation respects and pays tribute to the former anonymous currency team developers and their technical predecessors. Anonymous currencies will be developed in a humble spirit. Based on respecting learning, attentions will be paid to improving the mechanism to realize the true concept of anonymity.
Whale Alert has reported that Ripple has transferred $26.3 Million into the wallet of Jed McCaleb.
Jed McCaleb is a co-founder and CTO of Stellar. He is also known as the co-founder of bitcoin exchange Mt. Gox. He has recently received 100,000,000 XRP from the Ripple’s company.
🚨 🚨 100,000,000 #XRP (26,322,440 USD) transferred from Ripple to Jed McCaleb wallet
— Whale Alert (@whale_alert) September 7, 2019
The users of the cryptocurrency are predicting that if Jed McCaleb sells this stock of XRP on the open market exchange then there is a chance that the price of the token plummets down again.
Jed has also been working as a CTO of the Ripple labs in the company till 2013. Then he resigned from the job and left Ripple. He did get $9 Billion in order to start the company.
In 2014, he also made an agreement, according to which he is not able to sell more than $10,000 worth of XRP in the period of one week. But according to the report of Wall Street Journal, in 2018 he raised the sale amount of XRP.
According to the report of Bloomberg based on the CoinMarket data, the per day sale of Jed McCaleb is 500,000 XRP.
The aggressive sales of the company Ripple have been affecting the price of the coin and the token holders of XRP are not sure about whether the dumping is good or bad.
I’m afraid we’re going to massively disappoint you.
— David Schwartz (@JoelKatz) September 7, 2019
Ripple has not stopped the movement of coins into the wallets. Now again it has moved an amount of $26.3 Million into the wallet of Jed McCaleb. This selling and movement of the XRP are plummeting down the price of the token.