Connect with us

Crypto Exchange

Binance faces allegations of insider trading by US officials as regulatory clampdown continues

Published

on

  • US investigations into Binance have now expanded to examining allegations of insider trading and market manipulation.
  • Authorities believe that the leading crypto exchange may have taken advantage of its customers.
  • While the CFTC continues to investigate, Binance has responded that it has a “zero-tolerance policy” for insider trading.

Binance continues to face regulatory scrutiny as US officials are looking into potential insider trading and market manipulation. Investigations are digging deeper into whether Binance or its staff have taken advantage of its customers.

CFTC continues to probe deep into Binance

The world’s largest cryptocurrency exchange, Binance is facing an inquiry from US officials as they are suspecting that the firm has been involved in insider trading and market manipulation. The review involves the US Commodity Futures Trading Commission (CFTC) investigators, who have been speaking to potential witnesses, according to a Bloomberg report.

The authorities in the US are questioning whether the exchange has exploited access to millions of transactions, including the possibility of the firm trading on customer orders before executing them.

In response to the allegations, a Binance spokesperson told Bloomberg that the exchange has a “zero-tolerance policy” for insider trading and an ethical code to prevent any misconduct that could potentially harm customers or the digital asset industry. The security at Binance has strict guidelines that are set for investigating wrongdoing and holding its employees accountable.

Advertisement

Binance has been faced with increased regulatory pressure across multiple continents, as a growing list of countries are demanding the company to halt services within their borders. Previously, the Justice Department and the Internal Revenue Service in the US have launched investigations into Binance’s business with concerns over money laundering and tax evasion. 

Currently, Binance has not been confronted with any official action, although the CFTC and Justice Department have been looking closely at the firm for months. There could be some time before the agencies decide whether to press charges against the exchange.

Binance Coin price in danger of a 22% decline

Binance Coin price has formed a symmetrical triangle pattern on the 4-hour chart that started on September 7. While the technical pattern suggests that BNB is met with indecision, the breakout of the support trend line at $398 indicates that the exchange-based coin could be headed for a steep fall.

Advertisement

In fact, the prevailing chart pattern suggests that Binance Coin price is headed for a 22% decline toward $309. Despite the pessimistic outlook, BNB has a few lines of defense before the bearish target is in the offing.

Binance Coin price would discover immediate support at the 50% Fibonacci retracement level at $386. The following line of defense for BNB is at the 38.2% Fibonacci retracement level at $355, then at $325, corresponding to the 27.2% Fibonacci retracement level.

BNBUSDT

BNB/USDT 4-hour chart

Only a massive spike in selling pressure could see Binance Coin price fall to its bearish target at $309. 

Advertisement

BNB must stay above $393, the support level given by the Momentum Reversal Indicator (MRI), to void the pessimistic outlook.

The lower trend line of the triangle would then act as the next level of resistance at $398 before being confronted by the 50 four-hour Simple Moving Average (SMA) at $412.

News Source

Advertisement

Crypto Exchange

CFTC slaps Tether and Bitfinex with $42.5 million fine over misleading statements

Published

on

  • Tether is hit with $41 million in fines to settle allegations of misleading statements. 
  • Bitfinex was fined $1.5 million for facilitating retail transactions for American citizens. 
  • Tether has been under the lens of financial regulators over claims of stablecoin reserves for years on end. 

Financial regulators have investigated Tether and Bitfinex for criminal probe into bank fraud and misleading statements. Currently, over $62 million worth of Tether is in circulation, which is likely to impact the broad cryptocurrency market. 

Tether and Bitfinex hit by CFTC fines; there may be an impact on the crypto market

US regulators have accused Tether of making untrue or misleading statements. The Commodity Futures Trading Commission (CFTC) slapped a penalty of $41 million on Tether and $1.5 million on Bitfinex. 

Bitfinex was fined for allowing American citizens to transact on its exchange. The CFTC announced the penalties earlier today.  

Tether has played a key role in the crypto ecosystem, and the US Justice department’s focus is on the stablecoin’s activity in nascent stages following its launch in 2014. Federal prosecutors investigated transactions that were linked to crypto, and banks were unaware of their nature. 

Advertisement

Former probes remained confidential, according to sources close to the Department of Justice (DoJ). A criminal probe is one of the key developments in the crackdown on cryptocurrencies by regulators. 

Over $62 billion worth of Tether tokens are in circulation; proponents believe it is too big to fail. In a statement, Tether stated:

Tether routinely has an open dialogue with law enforcement agencies, including the DOJ, as part of our commitment to cooperation and transparency.

In light of recent events, however, Tether is faced with a more significant challenge, safeguarding the interests of the crypto community by not failing. Traders across fiat-crypto exchanges and peer-to-peer platforms exchange their fiat for stablecoins to access the cryptocurrency ecosystem. 

Advertisement

If Tether fails, the inflow of stablecoins to exchanges could be impaired, triggering a drop in capital inflow to Bitcoin. 

In their concurring statements, CFTC was quoted:

The settlement with the Tether respondents finds that there were misrepresentations regarding the assets backing tether, specifically that the USDT tokens were backed 1-to-1 by US dollars. The evidence establishes that this assurance provided to tether customers was not 100% true, 100% of the time.

Tether officials are held accountable by the CFTC. Further, the CFTC has applied a commodities’ definition to stablecoins. Regulators are concerned that enforcement actions may confuse their role in cryptocurrency and stablecoin regulation. 

Advertisement

The CFTC’s statement reads:

In a recent speech, SEC Commissioner Hester Peirce asked an important question when it comes to the US regulators’ review of stablecoins: Are we fighting for investors or are we fighting for jurisdiction? This question is front-and-center in my mind as I consider these settlements.

Tether believes that,

As Tether represented in the Order, it has always maintained adequate reserves and has never failed to satisfy a redemption request.

Tether has suggested that the CFTC’s findings regarding Bitfinex are related to its activities before December 2018. The stablecoin issuer is focused on resolving the matter and moving forward. 

Advertisement

The statement reads as follows:

We are grateful that the market has consistently demonstrated its trust and confidence in Tether. We will continue to earn that confidence and lead the industry in innovation and transparency.

News Source

Advertisement
Continue Reading

Crypto Exchange

Crypto Market Cap Gained $90B: Bitcoin Taps $60K, SOL up 8% (Market Watch)

Published

on

After a six-month hiatus, bitcoin met the coveted $60,000 level before retracing by roughly $1,000. Ethereum went above $3,800 briefly.

Bitcoin skyrocketed by roughly $3,000 in hours following positive reports coming from the US and touched $60,000 for the first time since April. Some altcoins have also joined the ride, with ETH exceeding $3,800 and Solana spiking by more than 8%.

BTC and $60K Met Again

Just two days ago, bitcoin had retraced hard and was close to breaking below $54,000. This came after an unsuccessful attempt to overcome $58,000 for the first time in roughly five months.

Advertisement

However, the bulls hadn’t given up yet and initiated another impressive leg up yesterday, as reported. This time, BTC reclaimed the aforementioned level and kept climbing upwards.

BTC went as high as $58,500 before another brief retracement drove it back below $57,000. At this time, though, reports emerged claiming that the US Securities and Exchange Commission could greenlight a Bitcoin Futures ETF as early as next week.

The implications of such a significant development in the US led to an immediate price surge. BTC added more than $3,000 of value and touched $60,000 for the first time since April this year.

Advertisement

As of now, bitcoin has lost around $1,000 of value, but its market cap is still above $1.1 trillion. The dominance over the altcoins has increased to just shy of $46%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

ETH Reached $3.8K: SOL Up by 8%

Ethereum struggled in the past few weeks as it was unable to break above $3,600 decisively. It even retraced by a few hundred dollars but went on the offensive yesterday and continued north today. As a result, the second-largest crypto broke above $3,800 for the first time in months but it was short-lived and is back below it now

Solana is another impressive performer on a 24-hour scale. SOL has surged by 8% in a day and trades well above $160. Uniswap’s 4% increase has driven UNI to $26, but the rest of the larger-cap alts have stalled or retraced.

Binance Coin, Cardano, Ripple, Polkadot, Dogecoin, Terra, and Avalanche are all slightly in the red.

Advertisement
Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

The top 100 largest coins have a new representative in the face of NuCypher. NU has exploded by more than 500% in a day and has neared $2, but many community members speculate on Twitter that it could be a pump and dump scheme.

Polygon has increased by 25% to $1.6. The total crypto market cap is above $2.4 trillion for the first time in months as well, after a $90 billion rise in a day.

News Source

Advertisement
Continue Reading

Crypto Exchange

Crypto Top Voice Mr. Whale Shares Top BTC Price Predictions in One Tweet

Published

on

While the aggregated forecasts by crypto Mr. Whale spell a great hope for Bitcoin investors across the board, he himself is less optimistic, noting that the digital currency is closer to 0 than $100,000 earlier in the month.

The digital currency ecosystem has seen a lot of Bitcoin (BTC) price predictions from market experts including top financial institutions and analysts, and crypto top voice, Mr Whale has aggregated each of these forecasts in one tweet. Bitcoin has notably charted a very impressive growth course in the past 1 year, with an evidential 400% advancement in price.

Advertisement

From the fourth quarter of 2020 to date, the Bitcoin ecosystem has witnessed the influx of institutional money, a trend that is contributing to the maturity of the industry. With more interest growing across the board, so is the regulatory terrain in major hotspots like China dragging the growth of the interest. While there seems to be a balance in the factors stirring growth, and those suppressing it, Mr. Whale’s tweet ended with a call to revisit the predictions in three months’ time.

BTC Price Predictions as Aggregated by the Self-Proclaimed Crypto Whale

With barely three months until the end of the year 2021, the forecast by Bloomberg comes off as one of the most ambitious for the digital currency. The financial media house said back in April that Bitcoin is on track to close the year at a $400,000 price valuation, citing the incremental growth the premier cryptocurrency printed in previous years as its yardstick.

“The technical outlook for Bitcoin in 2021 remains strongly upward if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favorably. Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since 2011 high. In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, Bitcoin increased a little over 50x to the peak in 2017,” the Bloomberg report highlighted.

Advertisement

Forbes Magazine’s projection of $700,000 is even more aggressive, beating not just Bloomberg’s call, but also of Max Keiser which is pegged at $220,000. Other top voices include Stock-to-Flow creator PlanB who forecasts a $135,000 worst-case scenario price for Bitcoin by year-end, adding that in the best-case scenario, the cryptocurrency could see a $450,000 price valuation this year.

Other key projections include the $100,000 projections from Fidelity Investments, Nasdaq, Anthony Pompliano, as well as the $140,000 predicted by JPMorgan Chase & Co (NYSE: JPM). Bitcoin is known to possess the right amount of volatility to hit some of these ambitious price tops, however, the journey to highs as much as Bloomberg’s and Forbes is very steep and many factors will need to be aggregated to permit this.

Advertisement

While the aggregated forecasts by crypto Mr. Whale spell a great hope for Bitcoin investors across the board, he himself is less optimistic, noting that the digital currency is closer to 0 than $100,000 earlier in the month.

News Source

Advertisement
Continue Reading