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XRP Listing on Coinbase Pro Raises Community Suspicions

After years of waiting, Coinbase has finally decided to add support for XRP on Coinbase Pro. This surprising decision aroused the euphoria of many, sparking an increase in trading volume and of course a peak in the price of the Ripple’s token.

However, many users, traders, and researchers also shared their suspicions that there might be some ulterior motive behind this decision. For a long time, the controversy over the possibility of XRP being a security and Coinbase’s hermeticism had prevented this from happening despite intense pressure from the community.

With this in mind, and with no significant change in its infrastructure or the legal framework or Coinbase’s terms and conditions, such a swift approval caused several users to share different “conspiracy theories” about this fact.

Is Coinbase Acting Suspiciously?

First of all, those who consider that there is something behind this unusual event point out that perhaps there is an interest on the part of Coinbase.

A recently released report by Diar, suggests that Coinbase deliberately listed XRP on its platform even though the token explicitly violates one of the conditions stipulated by the Exchange for accepting a token.

“Coinbase has now clearly abandoned one of their own pillars for the potential listing of a cryptocurrency. In their ‘Digital Asset Framework’ that outlines requirements to be listed, the exchange states that “the ownership stake retained by the team is a minority stake,” a fact far from reality as Ripple holds nearly 60% of the supply in escrow with a release schedule.

They explain that the reason for ignoring their own conditions could be related to the fact that Coinbase has lately listed all the cryptocurrencies that its own investor “Digital Currency Group” has backed up.

However, most community members who talk about a conspiracy believe that there was insider trading by the Exchange. They explain that those who knew that XRP would be listed bought large quantities of the token, which they sold after the announcement taking advantage of the price pump.

One of those who believe this theory is the twitter user Crypto Bitlord, who explains in a graph how the price of token evolved, telling that there was an unusual purchasing volume just before the news, followed by a large green candle that evidently would not be maintained in time.

Also, Weiss Cryptocurrency Ratings noted that although an “Internal investigation yielded no results.” Just 4 hours before the announcement, XRP experienced an unusual rise. In a survey filled by more than 840 people, 74% of respondents said they believe it could be insider trading.

Or… Should We Blame Ripple?

Alternatively, another group believes that in reality, Ripple was the one to blame. According to this theory, the company would have paid Coinbase to list XRP even though the token does not meet the standards set by the exchange.

One such thinker is Alistair Milne, CIO of Altana Digital Currency Fund. In a first tweet, he explains that he asked Coinbase to clarify the doubt; however, Coinbase replied that they are only willing to answer him privately, something that would prevent him from sharing the answer with the public.

This behavior had already been reported by Bloomberg in April last year. According to the article, Ripple had tried to pay Gemini and Coinbase to list their XRP token.

Miguel Vias, Head of XRP Markets, responded to Milne, commenting that Coinbase’s decisions are autonomous and that RIpple did not participate in any way. He also emphasized the position that Ripple does not own the XRP token.

However, this decision was not enough for Milne (and the rest of the users who share his opinion).

Until now, no official statements have been released by Ripple or Coinbase adressing these accusations.

The post XRP Listing on Coinbase Pro Raises Community Suspicions appeared first on Ethereum World News.

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CEO of Coinflux Exchange Accused of Fraud and Money Laundering

Vlad Nistor

Vlad Nistor, CEO of Coinflux, was arrested by local authorities in his native Romania after the United States launched a formal investigation charging him with several crimes against American citizens.

According to local media, Ziar de Cluj report, in a loose translation, MrNistor used other online platforms to scam people via fraudulent sales and get personal information about the victims. Coinflux is not mentioned as a part of the scams:

“Two of these methods were run online via phishing or through various fictitious sale ads  (via Ebay or via online platforms.) For example, Romanians were sending e-mails using instant messaging programs or phone numbers where the user is advised to give confidential data to win certain prizes or was informed that they are necessary due to technical errors that led to loss of original data. A web address containing a clone of the site of a financial or trading institution was indicated in the e-mail.”

Coinflux is one of the most important exchanges in Romania, Mr. Nistor’s country of origin. According to data provided by the platform’s own website, so far more than 201 million Euros worth of cryptocurrencies have been traded in more than 203,000 transactions made by the nearly 20k registered users of the platform.

A Short Recount of What Happened

According to local media, the U.S. Justice Department accused Coinflux’s CEO of running a fraud scheme, committing computer fraud, leading an organized crime group and money laundering. Nistor was preemptively detained while awaiting a decision by the Bucharest Court of Appeals regarding his extradition.

Shortly after his arrest, the judges of the Bucharest Court of Appeals denied the extradition requested by the United States. Nistor was released under judicial control for a period of 30 days.

Nistor’s arrest affected the proper functioning of the platform. According to an article published on the Exchange’s official blog, Coinflux’s team mentions that due to the procedure under which its CEO is located, operations on the platform were temporarily interrupted:

“Unfortunately, our company’s bank accounts have been frozen, situation which affects the CoinFlux wallets as well. We are doing all possible efforts, along with our legal advisers, to make sure everyone who had money deposited in CoinFlux wallets gets it back.
Another unpleasant consequence of the investigation is the fact that our access to some parts of our platform has been restricted; thus we are unable to send this announcement through the usual communication channels: e-mail and website. Our expectation is that we will gain control back, within the next days.”

Until now it seems that Mr. Nistor’s situation has been clarified; however, there is still some uncertainty regarding the future of the platform. In a post published yesterday, the platform announced that it was taking action with the aim of refunding the funds to the bank accounts of its users.

 

The post CEO of Coinflux Exchange Accused of Fraud and Money Laundering appeared first on Ethereum World News.

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Market Abuse – Complaint Filed Against Jamie Dimon

Managing partner for a Bitcoin market trading company – Florian Schweitzer together with a Swedish based regulator has drafted out and filed a complaint for Jamie Dimon and his talk against Bitcoin calling it “fraud” around one week ago which was followed by JPMorgan did start buying into a Bitcoin tracker fund.

The Swedish Regulator was asked to investigate the Chief Executive of JPMorgan – J. Dimon by Schweitzer who runs a London-based firm Blockswater that trades approx a $25 million volume per month.

Jamie Dimon on his speech around bitcoin in a conference in NY, for CNBC he said that:

“bitcoin is just not a real thing, (and) eventually it will be closed.” He also claimed he would fire any JP Morgan trader engaging in bitcoin activity.

The interview of the Chief Executive was followed a couple of days later with JPMorgan becoming a very active Bitcoin XBT buyer, a bitcoin tracker fund based on the Nasdaq Nordic in Sweden. It gives you the possibility to buy and hold bitcoin as you are not concerned how to keep them secure.

Bitcoin price against the US Dollar did decline for 25 percent the days following Dimon’s comments for the cryptocurrency as it tanked the value recovery together with other regulation news (China banning). The Zero Hedge blog did accuse JPMorgan for buying Bitcoin on the cheaper roll and JPMorgan did reply to Reuters about the accusation that it was acting in the role of a broker for a specific client – as they were not purchasing for JPMorgan.

According to the partner manager of Blockswater – Schweitzer, in Sweden market abuse is punishable up to 2 years in jail. This stand of point by Dimon towards Bitcoin is not news as almost three years he did call Bitcoin: “a waste of time” when the price paired with USD was around just $400. After that his next comment were:

Stating:  “there’s nothing behind a bitcoin and I think if it was big, the governments would stop it.”

Alex Gurevich – former JPMorgan Executive and head of global macro told Dimon through a twitter post that he is a very good bank CEO but no trader nor a tech entrepreneur.

Other analysts and experts said Dimon could have made such comments as a way to protect JPMorgan’s ongoing blockchain development, research and operations.

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