During the import of Bitcoin (BTC) chain data, an additional 2.04 million units of altcoin Bitcoin Private (BTCP) have reportedly been secretly coined, crypto assets analytics website Coin Metrics reports Dec. 23. The allegedly secretly coined cryptocurrency — a fork merging Bitcoin and ZClassic — is worth $3.672 million at press time. The project’s white paper states that the initial coin supply is equivalent to the combined supply of Bitcoin and ZClassic coins, alongside a small quantity destined for the miner program, making the total supply equal to around 20.4 million BTCP. However, according to the aforementioned report, over two …

South Korea’s largest cryptocurrency exchange Upbit has denied accusations it had manipulated its order book after regulators indicted three of its staff, local English-language news outlet The Korea Times reported 21. Upbit, which is owned by developer Dunamu, is accused of falsely inflating its volume figures on three occasions between October 2017 and December 2018. Citing reports from the Seoul District Prosecutors Office Friday, The Korea Times says two senior executives from Dunamu and one Upbit employee have been indicted, but not detained, as part of an investigation into the proceedings. The case came from South Korean finance regulator, the …

South Korea-based cryptocurrency exchange Bithumb has denied allegations of faking trade volume, Forbes reported on Dec. 19. Cryptocurrency exchange ratings and analytics service CER has accused Bithumb of faking up to 94 percent of its trade volume since the late summer of 2018. In response to the accusations, Bithumb reportedly told Forbes that "Bithumb is doing nothing to inflate trade volume. Bithumb is not selling mining-based coin. Bithumb is trying to get more customers by providing various promotions just like any other company in the world as a normal business." CER reasoned their accusations by measuring CoinMarketCap’s data, which, in …

Belgium’s Financial Services and Markets Authority (FSMA) has updated its crypto-related fraud blacklist to include a new total of 113 sites, in a fresh alert posted Dec. 18. The authority states that “despite” its prior warnings, it continues to receive complaints from defrauded investors. The newly added platforms are all allegedly run by “fraudsters [...] who are using cryptocurrencies to swindle consumers,” with the FSMA starkly reiterating: “The principle remains the same: they offer you an investment they claim is secure, easy and very lucrative [...] They claim to have specialists who will manage your investments for you. You are …

The Italian securities regulator has suspended two projects for allegedly offering fraudulent crypto investment schemes. The 90-day suspensions were reported in an official statement on the regulator’s website published Monday, Dec. 17. The Italian Companies and Exchange Commission — or Commissione Nazionale per le Società e la Borsa (CONSOB) — is the Italian analogue of the United States Securities and Exchange Commission (SEC) and represents a governmental authority that regulates the Italian securities market. Both firms suspended by the CONSOB — Bitsurge Token and Green Energy Certificates — are allegedly scam projects from Avalon Life, a company that is not …

This article has been updated to reflect comments from Ran Neuner on his involvement in the project. The man behind the “Blockchain Terminal” (BCT) initial coin offering (ICO) has reportedly been outed as a financial criminal who concealed his former identity from employees and investors, according to crypto news outlet The Block. An investigation into the circumstances was published Dec. 11. The BCT project and its affiliated firm, CG Blockchain, are alleged to have raised as much as $31 million in an ICO to launch a crypto-focused version of the ubiquitous Bloomberg Terminal — a highly successful financial data and …

Ehud Barak, a former Israeli Prime Minister, has compared digital currencies to Ponzi schemes, Israeli media agency Arutz Sheva reported on Dec. 3. Barak had participated in the Camp David Accords in 2000 as part of an attempt to solve the Israeli-Palestinian conflict, and now serves as the chairman of medical marijuana producer InterCure. Speaking at an event hosted by Israeli financial outlet Globes in Tel-Aviv this Sunday, Barak fielded a question comparing the alleged marijuana investment “bubble” to crypto by underlining that “he would never invest” in cryptocurrencies as “Bitcoin and cryptocurrencies [are] a Ponzi scheme.” Meanwhile, Barak underlined …

Thailand’s Revenue Department is testing blockchain to track value-added tax (VAT) payments, English-language media outlet Bangkok Post (BP) reports Dec. 3. Ekniti Nitithanprapas, director general of the Thai Revenue Department, said that the department “wants to use blockchain technology to prevent VAT refund fraud.” According to the BP, the nation is “on the path to becoming the first country to use the distributed ledger for tax probes if the technology is adopted.” The article cited Nitithanprapas explaining that “blockchain is expected to help verify VAT invoices” and “root out fake invoices for VAT claims,” defining “adoption of new technologies” as …

Japan’s financial regulator is set to introduce new Initial Coin Offering (ICO) regulations to protect investors from fraud, local news outlet Jiji Press reported Dec. 1. According to “informed” sources cited by Jiji, business operators conducting ICOs will be required to register with Japan’s Financial Services Agency (FSA). The agency is reportedly planning to submit bills revising financial instruments, exchanges and payment services laws to the ordinary parliamentary session that starts in January. This action has been undertaken “in view of a number of possibly fraudulent ICO cases abroad” as a way “to limit individuals' investment in ICOs for better …

The lawyer for Alexander Vinnik, the alleged former operator of defunct cryptocurrency exchange BTC-e, has said that a district court in Cyprus has withdrawn their lawsuit on charges “of fraud, money laundering and other crimes.” This development was reported by state-operated Russian news agency RIA Novosti Nov. 27. Timofey Musatov, the head of the lawyers’ group representing Vinnik, has said that the district court of Limassol city has formally granted the plaintiffs’ petition to recall their lawsuit against Vinnik and even ruled “to compensate the defendant for all legal costs incurred by him.” Musatov added: “The case against Alexander collapsed …

In common law systems, it is precedent that informs judicial approaches to new and previously unaddressed matters. The precedent that will likely shape the body of U.S. case law on fraudulent initial coin offerings (ICOs) is currently being forged in a federal court in the New York borough of Brooklyn, where a 39-year old entrepreneur, Maksim Zaslavskiy, has pleaded guilty to committing securities fraud. The development that will most likely result in a landmark decision – the jury will gather in April 2019 to decide on a sentence – is yet another twist of a now 14 month-long effort, involving …

SBI Ripple Asia and the Japan Payment Card Consortium have announced a joint proof of concept (PoC) to combat fraud with blockchain technology, according to an official release published Nov. 16. According to the news release, the PoC will be conducted on R3's blockchain platform, Corda, and will aim to prevent damage wrought by fraudulent transactions by enabling the real-time sharing of data between parties using blockchain. The Japan Payment Card Consortium counts nine major credit card issuers – including American Express (Amex), Credit Saison and Toyota Finance – and two payment-card technology providers as members. SBI Ripple Asia is …