Bitcoin This Week: Bitfinex CSO Quits, US Senate Investigates Crypto Influence And More

hello everyone welcome to Bitcoin this week a roundup of the week's biggest stories in the world of Bitcoin and here what's coming up today Irish banks discriminate against crypto related companies according to Bitcoin broker man arrested in China for stealing electricity to mine Bitcoin US Senate to investigate foreign interference in elections through virtual currency and BitFenix chief strategy officer departs okay so II D BitFenix there has been a management shakeup phil porter and the chief strategy officer on the cryptic exchange is out of the door he told reuters it was time to move away from the US he will be replaced in a short term by jl van de ville de yeah now BitFenix has been under scrutiny for some time over its close links to tether the digital US dollar crypto and you remember maria like a while back there was research that was published by two finance professors from the university of texas yeah I remember they claimed that market manipulators used tether USD token to artificially increase the Bitcoin price during that prolonged bull run last year yeah exactly and it's really important to know actually that tether denies these allegations and meanwhile BitFenix maintains that it's always maintained $1 in reserve for every tether USD t issued these claims were also backed up by a law firm that's co-founded by former FBI director Louis Freeh however this wasn't a full audit and they're very clear they're not in a County so it didn't really boost his confidence of all analysts that the 2.5 five billion dollars in bank deposits were really there yeah I remember back in December both BitFenix and tether were subpoenaed by the US Commodity and Futures Trading Commission as part of this ongoing investigation into suspected Bitcoin price manipulation yes oh really to round up we'll just have to see how the departure of Phill Potter as chief strategy officer will affect BitFenix and tether okay our next story is about foreign interference in the most recent u.s. elections we all heard about Special Counsel Robert Mueller's investigation into links between the Trump campaign and Russia but now they are focusing on how virtual currencies were used to possibly influence the vote yes and it was recently announced that Lindsey Graham who's a US senator from South Carolina he would preside over a hearing called protecting our elections examining shell companies and virtual currencies as avenues for foreign interference you know it's not against a lot for candidates in American elections to accept Bitcoin or other virtual currencies as donations however the Federal Election Committee has strict rules governing governing their size yeah and I think we're gonna learn more over the next couple of months about crypto currencies whether they did or didn't sway the election okay next we have a very interesting story about a man in China who was recently charged with stealing 150 megawatts of electricity the man identified only by his surname ma stole the electricity to power his big coin mining operation yeah it appears that he failed to realize how much power he would need to run the hardware he purchased back in April and apparently whether intention or not he tried to short-circuit his electricity supply in an attempt to fall the meter readers apparently suspicions were aroused when an unusually high amount of electricity usage was parted spotted by a local grid operator yeah and this is just one man that's been caught because in recent months China has cracked down on mining operations which particularly prevalent in areas with an oversupply of electricity you know I read recently that by the end of this year half of a percent of the world's electricity will be used to mine bitcoins incredible amount and certainly a one electricity bill you won't want to get through the post okay so before we get to those prices we have a story about Irish banks allegedly discriminating against crypto related companies yes the co-founder of an Irish Bitcoin brokerage has accused Irish banks of forcing him out of business by denying banking services to his company yeah now this story is about Dave Fleming who's the founder of air Coyne and his business partner who accused the banking and payment of Ireland of discriminating against crypto related businesses a charge the organization has denied already another Irish company bidco which had previously won a start-up award sponsored by Bank of Ireland accused Irish banks of shattering the company by denying its services Biko has since found a banking partner elsewhere in Europe now the BP fi which represents over 70 banks and building societies in the state told the Irish Times that it was unaware of any policy that discriminated against a crypto companies while allied Irish Bank which is Ireland's biggest bank also denied the accusation the bank did however state that sub companies were unable to adhere to its no your customer and anti-money laundering rules island is really immersing itself right now as a blockchain hub and really hopes to capitalize on the success in attracting global tech giants including well Google Facebook and Twitter to its shores to get another view and this we're joined by Simon cocking the editor-in-chief of cryptic alert news hi Simon so how is the cryptic community in Ireland right now hi good to talk to you yeah so today we're talking about crypto currency in Ireland and look it's certainly an interesting time Ireland's a bit like UK could be seen to have been maybe sitting on the sidelines for a little bit watching to see before deciding how they're going to get involved for some it's felt maybe they haven't moved quickly enough but they would feel that maybe good regulation it's not about regulating before you know what to regulate so perhaps we give them the benefit of the doubt on this one I think it's certainly time though for Ireland to work out what it looks like and how do we do it because as we've run in previous stories there are many initiatives to have crypto based and blockchain placed things coming out of Ireland so therefore I think we have to be able to work out what I look like and how can we facilitate it so it's an interesting time although be honest recently the Irish Revenue did come out with a statement about how they're gonna look at crypto currencies and money made from it so I guess it's not that they have done anything and also their comment was was that they would treat it as a revenue made in the way of many other assets that you could have so in that way they're saying they don't see it as something different so in that context I guess is one of those things that maybe sometimes waiting to see he might make for better legislation rather jumping in too soon what's very interesting thanks Simon that was Simon cocking there the editor-in-chief of crypto coin dots news okay how about we get to those prices yes Bitcoin price continued to drop as the coin traded at less than $6,000 for the first time this year yeah now last week began promising ly with Bitcoin rising from its opening six thousand four hundred and seventy five dollars to six thousand eight hundred dollars by Tuesday than the price hovered between six thousand six hundred and six thousand eight hundred dollars for the next three days before collapsing towards six thousand dollars on Friday a minor rally on Saturday followed but by Sunday the coin had broken through the six thousand dollar mark and was trading for five thousand eight hundred dollars by noon it has been a difficult week for Bitcoin with two major hacks in South Korea shaking confidence in cryptocurrencies followed by the news on Friday the Japanese regulators have issued notices to six of its exchanges to improve their business practices yes and this six thousand dollar mark has been viewed as a major correction point for some time but it seems unlikely that bullish sentiments will return in the short term and further losses are likely well that's all we have time for you you've been watching Bitcoin this week I'm Tom bell I am I am of chalk don't forget to subscribe for more and see you next time

One thought on “Bitcoin This Week: Bitfinex CSO Quits, US Senate Investigates Crypto Influence And More”

  1. i personally do not see anything suspicious in this quit of the CSO from bitfinex. this exchange is still very reliable and trustworthy

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