Trader Stole $2.8M Worth Crypto from His Employer

The prosecution alleges that during his work, Kim secretly withdrew 284 BTC from company's account
16 February 2018   1288

 24-year-old trader from Chicago is accused of stealing Bitcoins and Litecoin for $ 2 million from his employer. This is reported by the Bloomberg.

Joseph Kim is accused of committing fraudulent acts against his employer Consolidated Trading LLC. According to the accusation, Kim illegally transferred the company's crypto currency to his own purse to cover losses from unsuccessful trade transactions.

In a letter that Kim sent to his leadership last November, he pleaded guilty.

It was not my intention to steal for myself. Until the end I was perversely trying to fix what I had already done. I can't believe I did not stop myself when I had the money to give back, and I will live with that for the rest of my life.

Joseph Kim (as ABC7 Chicago reports)

After Kim was hired to work as a trader in Consolidated Trading, he was banned from trading outside of working hours in order to avoid a conflict of interest, which he agreed to do, but a week after taking office he transfered 980 Litecoin ($ 48,000) from the company's account to its own wallet. When a day later the employer discovered the loss and asked Kim, he replied that he had transferred the money "to his own purse for security reasons." Kim said that this purse will serve as an "intermediate storage space", which supposedly should protect him from the alleged problems with the Bitfinex exchange.

Later, when the employer asked him the same question, the trader stated that he had transferred the money back to the Consolidated wallet, but the investigation found that the money was not returned to the company's account.

In November, Kim again decided to take care of the funds of his firm and brought out about 55 bitcoins for a total of $ 433,000. Kim stated that these bitcoins were "blocked" and he was doing their unlocking. From his words, the management realized that he was going to return the assets to the company's account.

The prosecution alleges that during his work, Kim secretly withdrew from the company's account 284 bitcoins or about $ 2.8 million.

During the interrogation, Kim said that he invested the first 55 bitcoins in short futures positions. Later, he admitted that he had transferred Litecoin to bitcoins for the same purpose, and borrowed the remainder of the amount to prevent the forced elimination of his marginal positions.

Consolidated managed to withdraw from Kim's purses 144 bitcoins. The net loss of the company was $ 603,000.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   106

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.