Chinese Police to Bust Another Crypto Scam

Stolen funds, more than $193M in cash were stored in a specially purchased villa
01 February 2019   857

Law enforcement agencies in the Chinese city of Xuchang detained 27 people suspected of organizing a cryptocurrency pyramid with strange name I Am a Clown (IAC), whose capitalization was about $ 193 million, according to the state television chanell CCTV.

The stolen funds — more than 1.3 billion yuan ($ 193 million) in cash — were stored in a specially purchased villa.

IAC was supposed to become a platform for developing a large-scale social network based on blockchain technology, Big Data and artificial intelligence. Acting according to the classical Ponzi scheme, the company representatives asked to invest in the project a cryptocurrency, in return promising a huge income.

It is also reported that the main suspects were hiding outside of China and managed the platform remotely, with the help of hired personnel. To conceal their personalities, fraudsters used fake corporations.

The suspects were detained back in August 2018, but the investigators released the details of the operation only this week.

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   102

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.

 

Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.