Coinbase interrogated by US CFTC on ETH price crash

Coinbase iterrogated by the U.S. Commodity Futures Trading Commission (CFTC) on Ethereum price crash occurred in June
03 October 2017   1275

Coinbase becomes the object of the attention from the US Futures Trading Commission (CFTC) in connection with the incident happened in June this year, when the price of Ethereum on the GDAX exchange dropped to almost zero for a few moments. That resulted in the loss of funds for some users. 

Back then, the crash was triggered by $12.5 million trade that caused other traders to panic sell and automatic sell orders to initiate. Coinbase compensated traders who were impacted by the flash crash. The company representatives claim that it “fully cooperates with regulators” but they were “unaware of a formal investigation” into the event.

As detailed by cryptocoinsnews.com details referring to bloomberg.com, CFTC requests the information on the role that marginal trading, introduced at GDAX in March to attract institutional investors, could play in the event. Through margin trading, large-scale traders can use borrowed funds to place high-risk bets on the future value of the asset, in this case, Ethereum.

It is noteworthy, that the CFTC investigation into the Ethereum price crash on GDAX is yet another sign of the increased focus U.S. regulators are placing on the cryptocurrency markets.

Ethereum price chart on coinmarketcap.com
Ethereum price chart on coinmarketcap.com

Meanwhile, at the time of writing, Ethereum price is about $296.79, its market capitalization is $28,172,251,304.

'Kodak Miner' Turned Out to be a Scam

KashMiner by Spotlite USA was promoted as Kodak branded bitcoin miner 
17 July 2018   132

The KashMiner bitcoin miner, exhibited at the Kodak stand during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return. This is reported by BBC.

Spotlite USA is licensed by Kodak's lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its miner and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $ 3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential profit of its device, refusing to take into account the growing complexity and costs of bitcoin mining. The advertising materials reported that KashMiner brings $ 375 a month, which, subject to a 2-year contract, would allow the client to receive $ 5,600 of profit after paying a commission. Experts from the industry of cryptocurrency call this offer a scam.

There is no way your magical Kodak miner will make the same $375 every month.
 

Saifedean Ammous

Economist

CEO Spotlite USA Halston Mikail previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information.

While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.
 

Kodak Spokesman

In a phone call with the BBC, Spotlite's Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.