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Cryptocurrency markets have the ability to prove people wrong in the long run, says Adamant Capital’s Tuur Demeester

Akash Anand



Cryptocurrency markets have the ability to prove people wrong in the long run, says Adamant Capital's Tuur Demeester
Source: Pixabay

The risks associated with Bitcoin and the entire cryptocurrency market, in general, have been a topic that has been discussed several times following several new malicious practices and the fact that privacy and security have become a primary focus among developers.

In a recent interview with Peter McCormack, Tuur Demeester, Founding Partner at Adamant Capital, spoke about the importance of exchanges’ privacy parameters and its effects on its holdings. Demeester stated that markets have a great ability to prove people wrong in the long run.

This was said in connection with the fact that Bitcoin’s performance over the past few months was directly contradictory to the bearish predictions given by analysts. The Adamant Capital exec went on to say,

“There is no retail gambler, it is more like professional traders. The retail investors don’t care about technical indicators but rather they care just about the profits. Another aspect of the research I conducted on Bitcoin was about risk analysis and whether all the hacks and attacks happening with cryptocurrencies has actually affected the market.”

According to Demeester, several exchanges, both big and small, were “hot in terms of security and privacy.” He opined that sometimes, customers should consider security features of exchanges, rather than just looking at how long the organization has thrived. In his words,

“I understand that it is important how long an exchange has lasted; the years of experience naturally would have led to some learnings. But unless the security features are up to the mark, there really is no purpose. Because once your coins are hacked, they are gone forever.”

Another point stressed on by Demeester was regulations and how policies are forcing people to liquidate their assets. He also cited his own positive comments about Bitcoin made recently, when he said that the world’s largest cryptocurrency will finally get larger market exposure in 2019.

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Huobi, Bitfinex and other exchanges allegedly directly/indirectly linked to laundering/mixing of Bitcoins




Huobi, Bitfinex, and other exchanges are allegedly linked in laundering/mixing of Bitcoins
Source: Unsplash

On 19 May, 2019, @Whale_Alert tweeted a transaction of 2000 BTCs between Bitfinex and an unknown wallet, which after in-depth research by a Twitter user, confirmed that it was linked with wash-trading, mixing and laundering of funds. The funds circulated over various exchanges like Bitfinex, Binance, Huobi, Coinbase, and others, raise serious questions regarding AML laws and more.

The flagged transaction was sent from 1HL5rZWw5rGzFAB1mThEMxwazEBtWigs7B to two distinct addresses.

The Twitter user, @Proofofresearch, flagged this transaction and revealed the exchanges involved [directly or indirectly]. The user tweeted,

The user flagged a few addresses in the clusters which sent a significant amount of funds, shown in the image attached below.

Source: Twitter | CryptoMedication

The entity 145631092, as seen in the above chart, the funds sent by Huobi from this cluster ended on July 21, 2017. Another wallet “17hf5H8D6Yc4B7zHEg3orAtKn7Jhme7Adx”, linked to having transactions with Huobi has one particular transaction that stands out as it has an op_code named “People! help!”, which was transferred on March 30, 2019.

Source: Smartbit

The wallet address “19V5joogtZCCj3YWcP9pNT8eKLSZybc1Kq” has only four transactions in total. Upon checking the previous transaction for this address, the transaction with hash “bee4795db198230d6baad2e9dbba42b597c635b2471101641cce99e1ff0e91e4” stands out, since it is linked to darknet market places, the user tweeted.

Source: Twitter | CryptoMedication

Further, the address “3M1QVCjXn38AUdUxbLCH4WUZc1ai72ZKgr” that sent funds to the above-mentioned wallet, has a strong connection to darknet market places like the Hydra Market place.

Source: Twitter | Cryptomedication

The source of these funds was directly linked again with Hydra Market place, with the user tweeting,

The Twitter user further alleged that the addresses linked to these clusters were attached to fraud and some user[s] was “selling accounts at Coinbase/Huobi/Bittrex/Binance.” The Twitter user also urged the compliance team of the respective exchanges to close these flagged accounts ASAP.

The user added that all the funds linked to darknet market places were later deposited in Huobi exchange, which according to the user, gets mixed by Huobi.

Additionally, the user added,

“There are zero customers involved in any of these transactions at this point. That much is obvious. These addresses are not functioning as customer deposit addresses. That’s a guarantee. Funds go to Binance/OKex/Poloniex/… By FAR, Okex is the most frequent recipient of funds from these Huobi-controlled addresses. Please keep in mind that these are not deposit addresses. These are addresses where Huobi is literally mixing the funds and sending them to other exchanges for some reason.”

One particular address connected to Bitfinex in this fiasco, “1LSgEKji3ZoGdvzBgkcJMej74iBd38fySb,” has received 1 million Bitcoins, according to the user. The user added,

“As stated before, Binance/Coinbase/Bitfinex/Huobi/Bittrex/Coinbase/”Bitbank”/Bithumb/OKex are all pals in this laundering scheme together. They mix and mash funds and operate in a symbiotic fashion – replenishing stores when necessary… In this case, Huobi’s hands are dripping if there’s such a thing as catching someone ‘red-handed’.”

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