In total, the Chinese police seized more than 194,000 bitcoins from PlusToken. In addition to bitcoin, they seized funds in ETH, LTC, DASH, BCH, DOGE, and XRP.

China’s security forces seized more than 194,000 bitcoin (BTC) from members of the well-known PlusToken ponzi scheme, which operated in the Asian country. The BTC figure that the police is keeping back is equivalent to more than 1% of the total supply of bitcoins in circulation, about 18,555,725 BTC.

In a court ruling published this week, the Jiangsu Yancheng Intermediate People’s Court detailed the seizure of funds in bitcoin and other cryptocurrencies that PlusToken gathered from its victims.

In addition to the 194,000 BTC, local authorities kept back funds in cryptocurrencies such as ether (ETH), litecoin (LTC), EOS, DASH, ripple (XRP), dogecoin (DOGE), bitcoin cash (BCH), and tether (USDT). In total, the seized funds are equivalent to more than $ 4.2 billion at current prices.

The totality of cryptocurrencies that the Chinese police confiscated brings new lights on the dimension of PlusToken’s operations. Previously, addresses associated with the fraudulent scheme had moved some 38,000 BTC. And then a report appeared saying about the attempt to erase the trail of another 54,000 bitcoin on coin mixing services.

Now, the ruling of the Chinese court ensures that the funds in the hands of the authorities will receive its proper process; all of this under local law, and the proceeds will go to the National Treasury.

According to the court, PlusToken attracted more than 2.5 million people to its fraudulent arbitration offer with potentially very juicy returns. In just over a year, the scam received more than 314,000 BTC, nine million ETH, and the equivalent of millions of dollars in the other cryptocurrencies.

A total of 15 people have been sentenced for their involvement in these operations to date. The sentences range from 2 to 11 years in prison, in addition to fines that can reach a million dollars.

Largest bitcoin seizure ever

The nearly 200,000 BTC involved in the case make this the largest bitcoin seizure on record. Although not by much, the figure seized from PlusToken exceeds the 174,000 bitcoins seized by the FBI after the arrest of Ross Ulbricht, creator of the Silk Road dark web marketplace.

Between the two confiscations, each of the adversary powers in political and commercial conflicts came to have under their control 1% of the total circulating bitcoins. However, in the American case, the BTCs were auctioned. The last 44,000 of those bitcoins were bought in November 2015 by 4 bidders.

A few weeks ago, the Justice Department managed to grasp nearly 70,000 new BTCs involved with the dark web market, so they currently have control of a figure of 0.5% of the bitcoins in existence in that one address.

In total, Silk Road received more than 600,000 bitcoins. However, a report mentions the disappearance of some 444,000 BTC of which the pioneer drug market in the use of bitcoin as a means of collecting payment.

PlusToken, a scheme declared a scam by the authorities with more than 100 detainees already, is one of the biggest scams that ever emerged in the cryptocurrency environment in recent years.

Researchers at Elementus even considered that PlusToken could emerge as “the largest cryptocurrency Ponzi scheme to date, outperforming BitConnect, OneCoin, and MMM by a substantial margin.”

By: Jenson Nuñez.

VanEck will offer the Bitcoin ETN to customers and partners in Europe and Asia. This is the third Bitcoin derivative to be launched on the German exchange Deutsche Börse Xetra.

New York-based investment management company VanEck launched a publicly-traded product backed by bitcoins. It is an ETN (exchange-traded note) or market negotiable note, which is listed on the German stock exchange Deutsche Börse Xetra.

In a tweet published on November 25, VanEck’s director of digital assets, Gabor Gurbacs, confirmed the launch of the Bitcoin VanEck Vectors (VBTC) ETN and assured that the company will offer the sale of the product to its customers and partners in Europe and Asia.

The company guarantees its users that the euros invested in the ETN will be used to buy bitcoins. The VanEck team adds that the performance of the ETN is directly related to the price of the cryptocurrency. It takes as a reference the MVIS CryptoCompare of the Bitcoin VWAP Close Index.

Van Eck insists on investing in bitcoin, despite SEC rejection

The launch of the VanEck ETN comes a year after the proposal for the VanEck / SolidX Bitcoin Listed Investment Fund (ETF) was withdrawn. The withdrawal occurred a month before the date scheduled for the United States Securities and Exchange Commission (SEC) to make the final review.  Before that, the US supervisor rejected the New York-based company’s applications at least three times since 2017.

The refusal was ongoing on other similar projects, so no ETF proposal has ever received SEC approval. The body cites as important issues for its decision the concern about market manipulation, its vigilance, and some possible divergences regarding future negotiations.

Given the refusal of the SEC, everything indicates that VanEck chose to go to the European market to consolidate its plan, although instead of an ETF it chose an ETN. Unlike ETNs, ETFs are mutual funds that are part of the list on the stock exchange, whose stocks and bonds can be bought and sold for a session at the existing price on the stock market.

Gurbacs says that the company is committed to supporting bitcoin-centric financial innovation. For this reason, bringing to the market a derivative “that is listed on a major stock exchange and that is fully supported” has been one of the company’s priorities. It shows VanEck’s great interest in the pioneering cryptocurrency, which it defines as “digital gold”.

“The low correlation with other asset classes makes bitcoin a great way to help diversify a portfolio,” said Martijn Rozemuller, VanEck Europe Director. “We will offer investors a product that will allow them to benefit from the performance of the cryptocurrency”.

Bitcoin ETPs can be launched on the Frankfurt city-based Xetra platform since the cryptocurrency embraced the approval from German financial regulator BaFin earlier this year.

With this VanEck ETN, there are three Bitcoin ETPs included in Xetra. The first was ETC Group, a traded commodity exchange that, since June of this year, operates in a similar way to the ETC of raw materials suffer trades on the exchange. The second is ETN 21Shares, launched in September 2020.

By: Jenson Nuñez.

The Bitcoin market had a crash that decreased its price by almost USD 3,000. These are the reasons behind what happened.

The supply available in the surroundings of USD 19,000 caused a crash that has caused losses of a little over 15%. For that reason, bears have taken control of the short-term price of Bitcoin.

At the time of writing this article, BTC is trading at USD 16,556, with a 1.98% loss in just 24 hours.

Although it Looks like a Crash, It Is Only a Bitcoin Technical Correction

Bitcoin was about to reach a new all-time high, but that push was not enough.

The weekly chart indicates a very developed bullish momentum that has been rising continuously. This rally stopped in the resistance zone that the previous high left.

The 8-week exponential moving average (EMA) and 18-week simple moving average (SMA) crossed to the upside. Besides, the price was moving further away from them in a parabolic movement.

The correction that is beginning may lead these averages to act as dynamic supports. The reason for this is that the previous trend is still totally bullish anyway.

Supply Exceeds Demand at a High Point

BTC has reached a very relevant supply zone, close to USD 19,000. The big ones were very likely to make a profit, but it looks as though they were much bigger than expected.

Bitcoin seemed to be on the verge of reaching an all-time high before having a setback. However, what started as a crash could be the start of a deeper correction.

When momentum was very developed, bulls’ weakness was evident, and the price was quite high. For that reason, whales decided to deposit some of their coins on exchanges to take profits.

As a consequence, there was an increase in the Bitcoin balance on exchanges, tipping the scales towards the supply side. This indicator continues to rise, which usually suggests a bearish signal.

Small Factors Expand the Storm

When the price of an asset like Bitcoin is at a peak, the odds are that a correction is very likely, and everything starts to go wrong.

On his Twitter account, the Coinbase CEO began talking about rumors that the US Department of the Treasury was planning to track down cryptocurrency wallet owners. This occurred on November 25^th, before that rapid Bitcoin price crash began.

OKEx, one of the largest exchanges, recently announced that it would reinstate withdrawals at 08:00 UTC. They were frozen for five weeks since one of the exchange’s private key holders was cooperating in a police investigation.

Most of those frozen Bitcoins had already risen by around 70%. According to the CEO of CF Benchmarks, there were many unrealized gains on the exchange.

Despite Everything, Bitcoin Is Still Bullish

The current drop in the price of Bitcoin is nothing more than a healthy correction. Although a decline of USD 3,000 seems to be a lot, it does not represent anything for the cryptocurrency given its volatility and its price at the time.

Even in the face of less long-term resistance, it remains at the top. The current drop is nothing but noise compared to the historical trend of this crypto asset.

Institutional participation in the Bitcoin market continues to grow since macroeconomic factors continue to encourage it. This drop will help strong hands take advantage of discount prices, starting new momentum shortly.

By Willmen Blanco

Investment and security company Cypherpunk Holdings is among the largest public holders of Bitcoin.

In recent days, Cypherpunk Holdings, a Canadian company that specializes in security and investment, became the ninth largest public holder of Bitcoin. This event took place after the firm had sold its holdings in the cryptocurrencies Monero (XRP) and Ethereum (ETH).

In a press release, the firm that focuses on investment privacy solutions announced its move. In this way, they ensure that they have added new funds in the most popular cryptocurrencies to their reserves.

The amount that the firm added is 72,979 BTC, which currently represents a value of USD 1.2 million. With this move, the Toronto-based firm becomes the ninth company with one of the largest public holdings of Bitcoin in its reserves.

Security Company Exceeds USD 4.6 Million Worth of Bitcoin

There was an exponential increase in the Bitcoin funds of company Cypherpunk Holdings, which focuses on investment and security. The said funds reached 276,479 BTC, which is equivalent to USD 4.6 million. The new acquisition occurred as a result of the sale of their XRP and RTH holdings, as well as the special allocations that they received in August.

The latter represented a little more than 500 thousand Canadian dollars (CAD), which is equivalent to USD 380 thousand. The entry of this firm into the top 9 of the largest public Bitcoin holders allows it to join an exclusive group of firms that include MicroStrategy, Galaxy Digital, and Square.

On the other hand, the firm is number 24 in the general ranking of Bitcoin holding. The absolute champion in this field is Grayscale Bitcoin Trust, which precedes Block.one.

One relevant factor is that Cypherpunk Holdings is listed on the Canadian Stock Exchange. Likewise, this Bitcoin holder has security and privacy company Wasabi Wallet under its title.

A Trend that is on the Rise

Just a few years ago, these types of public fund firms would not have wanted to “risk” their funds by investing them in cryptocurrencies. Currently, this is a trend that is becoming increasingly popular.

One of the first companies to take this step and succeed is MicroStrategy. Others joined later, thus expanding the percentage of their capital to invest in Bitcoin, treating this cryptocurrency as a reserve asset.

Within the same wave, security company Bitcoin Cypherpunk Holdings joins this select group of pioneering investment companies.

It is important to note that this firm belongs to Lithuanian businessman and politician Antanas Gouga. This investor is currently a member of the Parliament of his country. Besides, he has represented his political class in the Parliament of the European Union (EU) on past occasions.

The relevance of Bitcoin has grown exponentially this year, which is evident in the participation of institutional investors. Cypherpunk Holdings and MicroStrategy are just two of the many groups that have dared to invest large sums in the pioneering cryptocurrency.

By Willmen Blanco

The lawsuit, filed in a court in California, in the United States, accuse Google of generating profits from the sale of targeted advertising.

Four Android phone users in the United States sued Google for unauthorized transmission of data to the company’s servers from their mobile devices. Without knowing what kind of information they are sharing, lawyers state that the data is flowing even without the installment of any additional applications.

The plaintiffs tested a Samsung Galaxy S7 and found that the phone passively sends data at a rate of 8.8MB per day, or almost 270MB per month. The analysis determined that 94% of the device’s interactions were with Google, those affected reported.

The document stated that the phone used for the evaluations was new, kept with all applications closed, and untouched. In addition to this, the phone was set up with a new Google account and was not even connected to any wi-fi network.

“The analysis also found that when the device was left to sleep it sent and received 8.88 MB / day of data, and 94% of those communications were between Google and the device. In total, the transference of information between the device and Google  happened approximately 389 times in 24 hours, for an average of more than 16 times per hour ”, this report  appears in the lawsuit filed in court in California.

For users, Google would have designed the Android operating system to collect large amounts of data. The purpose would be to generate annual “billions of profits” in dollars thanks to the sale of advertising.

The main concern of the complainants is, of course, their privacy, this phenomenon exposes them completely. For them, it is a methodology to “perfect Google’s advertising business.” Among the data that the users can share, these are: location, application usage log, and information related to Google accounts.

Privacy and data management by internet companies

Another point that stands out in the complaint is that, according to the plaintiffs, none of the Android use agreements, such as the Terms of Services, Privacy Policy, Google Agreement, and the Google Play Terms of Service, are any detail about this type of passive data transmission.

In its privacy policies, Google explains that mobile devices maintain contact with their servers when there are interactions with their applications. However, users claim that these guidelines do not mention passive information transfers or the intentions for which they occur.

The management of data and the privacy of users is an eternal debate between internet companies such as Google or Facebook, user communities, regulatory bodies, and even governments.

In August that Google would implement new “improvements” for Internet browsing. The announcement was not well-received by the developers of the Brave browser, who claimed that Google’s proposal, called the web bundle, is openly a privacy hazard.

By: Jenson Nuñez.

Lightning Network makes easier the use of bitcoins as a means of payment. The Spanish company adds its node and facilitates immediate payments at very low commissions.

The Bitnovo exchange installed its own Lightning Network node. For users of the Spanish company, this innovative payment system represents an advance in speed and a reduction in bitcoin transaction fees.

The installation of the node, in the words of José Molina, Bitnovo’s blockchain engineer, is very relevant because “it contributes to the growth of the Lightning Network. The more nodes that get involved in the network, the easier it will be to channel payments from network users, keeping a highly connected network benefits all of them.

The Lightnin Network system is a relevant advance in the payment system as it reduces transaction times from the minimum ten minutes of the traditional Bitcoin chain to just milliseconds. The Lightning network can do this by conducting its transactions without directly recording payments on the blockchain, which is called an off-chain payment system.

This brings clear benefits for Bitnovo because it makes it easier for it to do large amounts of operations much faster, paving the way to micropayments and instant payments. This increase in the processing of payments in Bitcoin lowers the cost of the commissions for the transactions that the blockchain normally carries.

The stones in the Lightning Network path

However, this development in scalability did not come without difficulties for the Spanish company. The main struggle is getting incoming liquidity so the node can work. There is a need for Money from both parties to be able to make the exchange. This means that the money is in both parts of a channel to exchange bitcoins through Lightning.

Spain is a country with a huge increase in the bitcoin market; this technology is good for the usability of bitcoins as a means of payment. However, the advancement of the industry has to go in parallel with a friendly environment that preserves talent in Spain, according to Marcos Muñoz:

“Spain is an incredible pool of talents, but it is necessary to create the right environment to retain them and that they do not leave or take them away because they find a more favorable environment outside”.

By: Jenson Nuñez.