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S.E.C. charges 5 for illegally promoting $2 billion Bitconnect Ponzi

Three years and some unforgettable memes later, the Securities and Exchange Commission has announced that 5 individuals will face charges relating to promoting the Bitconnect Ponzi scheme. 

“The SEC’s complaint alleges that these promoters offered and sold the securities without registering the securities offering with the Commission, and without being registered as broker-dealers with the Commission, as required by the federal securities laws,” the release reads.

The promoters, including Trevon Brown, Craig Grant, Ryan Maasen, and Michael Noble are said to have “advertised the merits of investing in BitConnect’s lending program to prospective investors, including by creating “testimonial” style videos and publishing them on YouTube, sometimes multiple times a day.” In exchange for their promotional efforts, the influencers and representatives were paid on a commission basis.

The release also named Joshua Jeppesen as “a liaison between BitConnect and promoters.”

Shortly after the release, Trevon Brown (better known as Trevon James) posted a Tweet in which he did not deny the charges and said that the community would “rally” around him.

“We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets,” said Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office in the release. 

The company, which collapsed in 2018, was widely accused on being a ponzi scheme from several analysts and observers, including Ethereum co-founder Vitalik Buterin. Last year, an Australian man was charged in connection with the company’s fraud. Many will be familiar with the project due to a now-legendary presentation from investor Carlos Matos:

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Multiple crypto lawyers have taken to Twitter to speculate on the long-term ramifications of this case. Gabriel Shapiro noted that even though the S.E.C. is targeting a known fraud in Bitconnect, it could end up being a “blueprint” for action against other DAOs. 

S.E.C. charges 5 for illegally promoting $2 billion Bitconnect Ponzi

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Bridgewater Associates CFO heads to Bitcoin-focused firm

Departing his position as the chief financial officer of Bridgewater Associates, John Dalby will assume the post of chief financial officer for Bitcoin-focused tech and finance company NYDIG.

“The NYDIG team and I are extremely excited to welcome John,” NYDIG CEO and co-founder Robert Gutmann said in a public statement released on Friday. He added:

“His kindness, curiosity, and humility, combined with his deep financial services experience, are a perfect match for NYDIG as we continue to build institutional Bitcoin solutions. Working on Bitcoin is increasingly what many of the best and brightest employees seek – including industry leaders like John – and NYDIG is uniquely positioned to offer them the platform, resources, and culture to shine, in pursuit of our collective mission to bring Bitcoin safely to everyone.”

Founded in 1975 by famous investor Ray Dalio, Bridgewater Associates operates as a mainstream powerhouse investment management entity. NYDIG, a younger company focused on Bitcoin, has made a number of headlines this year, including garnering funding to the tune of $100 million.

Dalby formerly held high positions at UBS and D.E. Shaw Renewables Investments, giving him vast expertise, based on the public statement. “The growth of NYDIG has been incredible,” Dalby said in the statement. “Every day, more industries come to understand Bitcoin’s potential and more clients seek ways to safely access it,” he added. Further comments in the statement from the new NYDIG chief financial officer showed his positivity toward Bitcoin’s potential.

Bridgewater Associates CFO heads to Bitcoin-focused firm

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Citigroup Launches Crypto Trading and Custody Services

Citigroup, a banking giant, is launching a crypto trading and custody service. The new service aims to meet the growing demand for crypto assets.

Itay Tuchman, the global head of forex for Citigroup, has confirmed that the bank had witnessed a rapid accumulation in Bitcoin (BTC) interest from institutional clients. Tuchman announced the move in a report published in Financial Times.

According to Tuchman, banks could venture into crypto through proprietary trading, where they use their resources to make profits. “There are different options from our perspective, and we are considering where we can to best service clients. This is not going to be a prop-trading effort,” said Tuchman.

Not happening any time soon

However, Citigroup has confirmed that it is taking its time to launch crypto services. Tuchman stated that the bank would only jump into the crypto space when it was sure that its clients could benefit. It would also consult with regulators to build something robust and compliant.

“I don’t have any FOMO [fear of missing out] because I believe that crypto is here to stay and that we are just at the very beginning of the market. This isn’t a space race. There is room for more than just one flag.” Tuchman said.

In March this year, the bank released a report saying that Bitcoin could become a global trading currency after evolving. The report indicated that people’s perceptions about Bitcoin were changing. This would create a new opportunity and make the token more mainstream.

Citigroup Launch Crypto Trading and Custody Services
BTC/USD 1 day chart, Binance, 7 May 2021. Courtesy TradingView

Citi’s interest in Bitcoin

Citigroup analysts have written a paper on Bitcoin titled, “Bitcoin: At the Tipping Point’. The report indicated that BTC would change from a nascent form of payment to a store of value. Also, if there’s a boost in Bitcoin’s global reach, the crypto asset could easily become an international currency. This can be achieved through Bitcoin’s attributes such as decentralisation and borderless design.

Citi’s report on the currency shows that BTC may come in handy to exporters and importers. It would simplify international trading and may even be preferred to fiat currencies. Bitcoin lacks forex risk exposure. It is also fast, traceable, and guarantees the security of online payments.

Citigroup is not the only Wall Street bank to venture into the crypto space. Top banking institutions that have ventured into crypto include Bank of New York, Goldman Sachs, Mellon, and Morgan Stanley. This latest move comes amidst increased retail and institutional demand for crypto assets.

Citigroup Launches Crypto Trading and Custody Services

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Where to buy Gold-Backed Cryptocurrencies in 2021

If you want to get involved in the gold-backed cryptocurrency space, you’re probably debating on where the best place to buy them is. Fortunately, we’ve got you covered. In this guide, we’ll go over the best places to buy such assets.

Gold Backed Crypto Exchange

A gold-backed crypto exchange is pretty much the best place to invest in such assets. For one, these are the platforms that generate stablecoins. They offer the most value for your investment, often providing quality-of-life trading features and wallets for storage. Some also enable you to invest anonymously.

Not only this, but these exchanges often allow you to redeem your digital gold for physical bullion. Of course, you may have to reveal your identity for this, so they can provide it to the right person.

Such platforms generally audit their holdings and make the results publicly available for trust’s sake. Some are even available 24/7 for the ultimate ability to check their legitimacy.

Specific exchanges allow you to invest in fractional amounts of gold, too, increasing the asset’s accessibility. You can put in as little or as much as you’d like – an option not possible on traditional exchanges.

Binance

Binance is the largest cryptocurrency exchange in the world regarding market cap. It offers support for thousands of cryptocurrencies, many of which being gold-backed stablecoins.

On Binance, you can fund your account with a bank or other crypto and convert nearly any asset into a stablecoin. It’s all up to you, assuming the asset is listed. The platform offers various trading features as well, making it ideal for both beginner and expert traders.

If you’re a big investor, you can earn BNB, the platform’s stablecoin, which helps cover some trading fees. Saving you money, a dedicated stablecoin works wonders for many traders.

If you’re interested in branching off from stablecoins, Binance has tons of detailed documentation on the crypto industry for you to consume. Finally, this exchange has a wallet for you to store your assets within as well. While Binance isn’t a dedicated gold-backed cryptocurrency exchange, it’s definitely a decent alternative.

Coinbase

Based in San Francisco, Coinbase is a popular mainstream cryptocurrency exchange. Because of this, it’s much more selective in its offerings. Still, the underlying support makes it a great space to buy gold backed cryptocurrencies.

Like Binance, Coinbase has a wallet for online storage. It also contains a ton of documentation for learning about stablecoins and other crypto industry staples. If you live in the UK, there’s even a physical debit card, Coinbase Card, for spending on the go.

Beginner traders have more than enough features to make an educated purchase. However, if you’ve been in the space for a while, Coinbase has a pro exchange with more information than Binance. Just note that Coinbase has more expensive trading fees than most other exchanges. It’s a reliable platform, however, which is what you’re paying for.

Gemini

Gemini is a cryptocurrency exchange founded by the Winklevoss Twins of Facebook fame. The project is regulated by the New York Department of Financial Services. It’s often undergoing bank exams and audits as well. These regulations make it a great platform for trading gold-backed cryptocurrencies.

They’re the first crypto platform to hold the SOC 1 Type 2 and SOC 2 Type 2 compliance certificates as well. Gemini even offers hardware keys and insurance coverage for all assets stored on the platform.

Gemini offers various products such as its mobile app, a custody platform, an earn space, and even its own stablecoin. That stablecoin, the Gemini Dollar, is tied to the value of USD. It can be used to trade with gold-backed stablecoins, among other assets, similar to Binance’s BNB asset.

Otherwise, signing up on Gemini is relatively easy, though it does require you to verify your identity, among other things. If you’re looking for anonymity, this isn’t the platform for you. It does list a fair amount of gold-backed cryptocurrencies, however.

Finally, just like Binance and Coinbase, Gemini has its own offering of learning documents to educate yourself further on the cryptocurrency industry.

Where to buy Gold-Backed Cryptocurrencies in 2021

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Shark Tank’s Barbara Corcoran Wants Investors To Choose Real Estate Over Bitcoin

Despite the current booming crypto market, Barbara Corcoran wants Americans to choose real estate over cryptocurrencies.

Not only did Bitcoin just popped a record high price of more than $51,000 last month, but it also hit yet another record high on Tuesday, trading above $63,000.

Corcoran’s comments come when the total market cap of all crypto assets expanded by 600% to well over $2 trillion this year.

Real Estate Over Cryptocurrency

The Shark Tank investor who spoke at Union Square in New York made it clear that she only cares about properties and not about Bitcoin’s price. To her, all the crypto activities do not interest her one bit.

Corcoran emphasized the need for people to buy into real estate now, as this year holds much potential for the sector. According to her, the market could be different by the end of the year.

As for her, Corcoran said she is investing every spare dollar she has this year into real estate because she says it’s still very much a buyer’s market. She added that she prefers to get even richer the old-fashioned way.

Speaking further, the queen of New York real estate said the trick of investing in crypto is knowing when to get out. She thinks just as many people are losing money investing in cryptocurrency as those who are cashing in.

Corcoran once disclosed in an interview with Money that the reasons why she decided not to invest in crypto, saying she did not want to get involved in the risks. 

“I lose my credit cards at least once a week. I lose my cell phone once a month,” said Corcoran. “I can’t even imagine being like that guy in England, what did he lose, $127 million because he lost his private key code?”

Real Estate Purchases And Cryptocurrencies

Recently, real estate agencies have pushed for house purchases to be paid in Bitcoin and other cryptocurrencies.

For instance, Billionaire real estate mogul Rick Caruso known for his lavish outdoor malls, revealed while talking with CNBC that his company, Caruso Properties, would soon accept Bitcoin for rent payment of its properties. He also made it known that the company has invested in the cryptocurrency for its treasury.

While Corcoran sees crypto as one she can not invest in due to the risks involved, she once said she believes that home sales in cryptocurrencies will be increasingly more common in the future.

She said cryptocurrencies are powerful because it is peer-to-peer, with no centralized body. According to her, the main idea is to eliminate the middle guy.

Shark Tank’s Barbara Corcoran Wants Investors To Choose Real Estate Over Bitcoin

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