CFTC will now pay for exposing fraudulent schemes

Whistleblowers may be awarded with a whopping $100,000
19 February 2018   1073

The US CFTC has received a great number of complaints the concern the financial loss of ordinary American citizens who became the victims of so called “pump-and-dump” schemes that deal with virtual currencies. The commission is able to enforce anti-fraud measures in case virtual currency cash market are operated as a commodity in interstate commerce.

So, today it has announced a bounty with the following conditions:

If you have original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent.

 

The US CFTC

The commission stresses out that such fraudulent schemes have always been present. And the nature of these schemes has no changed at all: false promises of groundbreaking products, major breakthroughs; then the demand grows along with  share prices and finally at some point - prices crash and the investors are left with nothing. Nowadays, thanks to social media and messaging apps the organization of such schemes and the hype became anonymous.

The risk grows as the number of new virtual currencies and the respective tokens grows more rapidly in a mostly unregulated area of financial transactions. In order to protect oneself, CFTC recommends to:

  • thoroughly study the virtual currencies using all the means necessary,
  • guaranteed investment is a fiction,
  • not to trust any ads and not to rely on a single tip of any token prior to purchase.

On the other hand, such bounties are often the stepping stones in establishing more legislative agenda and future enforcement budget. Certain actions on setting up the control have already been made by CFTC earlier this month with regulation workgroup and crypto fraud warnings.

tZERO to Launch Bitcoin Trading App

Application itself is being developed by Bitsy; it may also begin to support Ethereum in the future
22 March 2019   108

The security tokens platform tZERO announced plans to launch a mobile application for buying and selling bitcoin. In the future, the application may also begin to support Ethereum,  CoinDesk reports.

According to Saum Noursalehi, CEO of tZERO, applications for iOS and Android devices should be launched in June. Bitsy is developing it, a cryptocurrency start-up that is part of the portfolio of the Overstock venture division of Medici Ventures.

That’s part of the reason we acquired Bitsy — to accelerate time to market for our mobile app. They have an app for trading crypto, primarily bitcoin, in a beta-phase, they built a wallet and key recovery mechanism, and this will be the foundation of the mobile app for tZERO. They are also working on some cool stuff like biometric login. 
 

Saum Noursalehi

CEO, tZero

According to him, the application will allow you to store cryptocurrency without the need to trust third parties and it will be connected to the network of exchanges through the API. The implementation of this plan will occur through partner tZERO, the institutional trading platform SFox.

In the future, the head of tZERO added, the platform also intends to create its own cryptocurrency vault to meet the demand from users.

The public beta testing of Bitsy wallet started in November 2018. With his help, the Overstock retailer plans to launch Bitcoin sales on its website.