CFTC to Collected Over $1.3B Fines in a Year

That's 39% more than last year; amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensation 
27 November 2019   192

The U.S. Commodity Futures Trading Commission(CFTC) raised over $ 1.3 billion in administrative fines in fiscal 2019. The amount also includes payments from cryptocurrency operators.

According to the CFTC annual report, the regulator received $ 1,321,046,710 - 39% more than last year. This amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensation for losses.

The CFTC did not indicate in the report the amount of fines received from companies related to digital assets. At the same time, the regulator mentioned some charges against players in the digital currency industry.

The commission recalled the Control-Finance cryptocurrency pyramid of $ 147 million, which affected more than 1,000 investors who lost 22,858 BTC. The CFTC also noted civil cases against John Barry Thompson, accused of fraud with bitcoins for $ 7 million, and Joseph Kim, who illegally misappropriated cryptocurrency. The latter was fined $ 1.1 million.

Chinese Bitcoin Miners Share to Reach 66%

Such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency, expert believes
12 December 2019   86

Miners based in China currently control two-thirds of the total processing power of the bitcoin network. It is reported by Reuters, citing a fresh report by CoinShares.

In June, this value was 60%, reaching the highest level in December over the past two years, during which CoinShares tracks this data. According to the chief researcher of the company Chris Bendiksen, such superiority of Chinese miners may be due to a large number of farms or more advanced equipment for mining cryptocurrency.

This is beneficial to the Chinese mining industry. If you are the first to increase your proportion of the hashrate, and you can do that before your competitors, that’s generally good.
 

Chris Bendiksen

Head of Research at CoinShares

As the publication recalls, such major mining equipment manufacturers as Bitmain, MicroBT and Canaan are also based in China.

CoinShares representatives also noted that since June, the bitcoin hash rate has increased by 80%, which was partially possible due to the high profitability of this activity and more powerful equipment.

Bitcoin Difficulty Chart
Bitcoin Difficulty Chart

Despite the harsh rhetoric of the Chinese authorities regarding cryptocurrencies, in November, the National Development and Reform Commission (NDRC) did not include mining in the list of “undesirable industries” that are subject to ban.