GMO asks customers to loan it their Bitcoins

GMO has launched a program to ask customers to lend the company BTC, promises to return the loans with interest
16 April 2018   846

After the hacking of Coincheck, Japanese regulators have stepped up and started security checks all around the country's exchanges. One of the exchanges affected by this crack down was GMO, who, while not halted outright by FSA, was ordered to increase customer security to acceptable levels. And now GMO asks its clients to loan it their Bitcoins.

On paper, the program works flawlessly. GMO will be able to enter loan agreement with its customers with the starting sum of 10 BTC all the way up to 100 BTC. Once the agreement is reached, the customer's balance will be deducted. The loan period is 90 days, but the customers will be able to return their funds before the 90 days are over, with a cancellation fee, of course. The loans held for a full three-month period will be repaid with interest. The downside of the program, according to the reports, is that customers won't be able to sell or transfer their Bitcoins during the loan period.

As of now, GMO hasn't revealed, how it plans to use the Bitcoins acquired in the program. And it's quite worrying for the community, who can't help drawing parallels with Coincheck, who has been dabbling in the similar venture before they got hacked and lost all their money.

Karpeles to Face Another 10 Years in Jail

Japanese enforcements agencies blamed Mt. Gox CEO in stilling $3M
12 December 2018   84

Japanese prosecutors blamed the head of the already inactive exchange Mt. Gox Mark Carpeles in embezzling 341 million yen ($ 3 million) from a bank account trading platform. The prosecutors made the corresponding statement in the Tokyo District Court, demanding 10 years of imprisonment for Karpeles, reports The Mainichi.

[Mark Karpeles] diverted company funds to such uses as investing in a software development business for personal interest" and "played a great role in totally destroying the confidence of bitcoin users.
 

Japanese prosecutors

It is noted that in September-December 2013, the head of MtGox allegedly transferred funds to personal bank accounts, and then invested in the software development business.

Carpeles is also accused of faking the data of the trading system of the exchange for the fabrication of balance sheets.

The deadline for accepting applications from affected investors as part of the civil rehabilitation of Mt. Gox has been extended until the end of December.