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Binance accused of helping launder stolen funds from Wex users; CZ freezes their accounts

Priya

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Binance accused of helping launder stolen funds from Wex users; CZ freezes their accounts
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Changpeang Zhao, the co-founder and CEO of Binance, the biggest cryptocurrency exchange platforms by trading volume, has effectively stopped a scam from taking place. This comes after a cryptocurrency investor, Joseph Young, pointed out an exit scam on his Twitter handle.

The party accused was Maple Change Exchange. On October 28, 2018, MapleChange Exchange was reportedly hacked and claimed to have lost 8 BTC. According to their Twitter profile, funds have been returned to some customers who lost their altcoins. However, customers who lost Bitcoin [BTC] and Litecoin [LTC] were not refunded. Moreover, the official website of the exchange platform was shut down at press time.

They had announced:

“The negative balance was used in order to fully buyout every market the attackers felt like, they were able to sell without limitations and accumulated 15BTC of non-existent funds. Out of which they only managed to withdraw what he had in total – 8BTC.”

This eventually resulted in John James, a cryptocurrency investor, pointing out another cryptocurrency exchange platform’s scam. The exchange platform bought to light was WEX NZ, which provides trading services for coins such as Bitcoin [BTC], Bitcoin Cash [BCH], Litecoin [LTC], Ethereum [ETH], and Monero [XMR].

Moreover, this happens to be the same exchange platform where the price of Bitcoin [BTC] was valued closely to $10,000 in the month of July 2018, when it was trading just above the $8,000 mark.

James claimed that the platform is moving funds from their customers’ fund from their cold wallets through Binance, accusing the biggest exchange platform of helping launder money. He said:



“Also another interesting twist. Wex cold wallets are moving funds through @binance. Meaning Binance is potentially help launder millions of dollars worth of stolens funds from Wex users. We have proof too. @cz_binance”

In addition to this, there were reports claiming that trading services were not functioning properly on the exchange platform earlier this week. This is where the CEO of Binance stepped in and announced that they have frozen Wex’s accounts. He has also stated that this matter should be reported to the law enforcement. CZ said:

“The identified accounts are frozen, please report to law enforcement and have a case number. We will work with LE. This is part of centralization we hate too, dealing with other exchange’s mess (we don’t even know the details). But we will do what we can.”

He further added they would be doing the same through decentralized exchanges. He said:

“Soon, they will go through decentralized exchanges…”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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