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CipherTrace, a blockchain analytics company, is partnering with the Republic of Malta’s sole financial regulatory agency to ensure that all crypto transactions within the country are free of money laundering and other similar financial crimes.

As the Times of Malta reported on March 11, 2019, the Malta Financial Services Authority (MFSA) has enlisted the help of U.S.-based company CipherTrace to audit cryptoasset services that operate within Malta’s jurisdiction.

The MFSA will require potential cryptocurrency agents, like individuals operating exchanges, wallets and ICOs, to formally register with the MFSA. CipherTrace will then “provide the MFSA with powerful oversight tools to automate regulatory processes and audit the risk management of virtual asset businesses licensed in Malta,” claimed CEO Joseph Cuschieri.

Blockchain analytics companies, which have proliferated in the bear market, have come under public scrutiny as of late for their stated goal of deanonymizing blockchain transactions and the privacy implications that this presents. One such company, Chainalysis, made a public statement of their privacy policies in early March to try and pre-empt some of these criticisms.

Malta sits at an interesting crossroads in this particular issue as a result of this. Attempting to position itself as a blockchain hub for quite some time, the government has passed laws to attract crypto businesses, and has met with a degree of success. With these moves, however, the risk of financial crimes has increased. As such, the Times of Malta reported that the timeline for Malta’s approval of crypto licenses “[depends] on the due diligence assessment — including competence in the field of anti-money laundering and the counter funding of terrorism.” CipherTrace, it seems, is the latest of several blockchain companies to earn the Maltese government’s confidence. Using its tools, the MFSA could keep tabs on a number of financial crimes.

This article originally appeared on Bitcoin Magazine.

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When leaked pictures of Samsung’s latest smartphone went viral, the crypto sphere lost its mind over a singular feature: a built-in cryptocurrency wallet.

Samsung would quickly deny rumors that the S10 contained a baked-in hardware wallet. Well, the wallet definitely exists. It’s just missing a few features you might expect of a crypto wallet. Specifically, it doesn’t support bitcoin — only ether and ERC20 tokens — which would be akin to your broker at Charles Schwab or Fidelity telling you that your 401(k) lets you invest in silver, copper and other metals but not gold.

The Wallet

I bought my S10 yesterday and downloaded the wallet first thing this morning from Samsung’s Galaxy Store (interestingly, it’s not available on the Google Play Store). Upon setting up the wallet, the app asks for permissions, like access to your phone’s calling function, storage, camera and body sensors, and it asks you to sign in with either a Samsung or Google account.

I tried to take screenshots of the process, but when you try this, an error message reads: “Can’t take screenshots due to security policy.” So there’s a plus-one for mindful security practice even if the app’s asking for access to your phone leaves you wary.

Setting up the wallet is pretty standard procedure. You can either import an existing wallet using your seed phrase or create a new one. If creating a new one, you’ll be asked to enter a 6-digit PIN, and after you confirm this PIN, you’ll be given a 12-word seed phrase (aka recovery phrase or mnemonic phrase).

The device will warn you to store the phrase on another device (or, if you’re being really security minded, offline entirely), adding that if you lose it, then your wallet will be lost to the blockchain abyss if you need to recover it for whatver reason (instances where you might need to recover your wallet: your phone gets broken, your phone gets stolen or Thanos secures all the Infinity Stones). The app also assures you that Samsung has no access to your wallet, but that anyone with your seed phrase does.

After you promise that you’ve written down the seed phrase safely like an obedient little enthusiast, like any responsible wallet, it will randomly select three of these words (numbered 1–12) for you to regurgitate to the app to prove that you didn’t ignore the most important step in setting up a wallet.

Bitcoin When?

Once you’ve done this, your wallet is set up and you can start sending and receiving ether and ERC20 tokens.

Yep, just Ethereum stuff: no bitcoin. The wallet comes with innate support for ether, TrueUSD, Basic Attention Token, Augur’s REP, Chainlink, the Paxos Standard, Maker, USD Coin, BNB and ZRX, among others. You can also add a “custom token” like you can for other Ethereum wallet services such as MyCrypto and MyEtherWallet: this means that you can tell the wallet to recognize any ERC20 token by entering its token contract address, its name, its symbol (ticker) and its decimals.

It also comes with intrinsic support for two dApps: the Enjin Coin wallet, the eponymous cryptocurrency for Korean gaming company Enjin; and the notorious CryptoKitties. Enjin has been touted as a token platform that will revolutionize in-game purchases and ownership (what amounts to tokenizing cosmetics, items and other content). CryptoKitties, depending on who you ask, is either a really cute crypto trend or the virtual reincarnation of Beanie Babies with even more irrational buyer’s mania. It made headlines in 2017 when the dApp clogged up the Ethereum network.

According to BREAKERMAG’s coverage of the wallet, COSMEE, a cosmetic token that rewards users for things like reviews of beauty products, is also supported. The app reportedly features the CoinDuck payment portal for point-of-sale and merchant payments, as well.

Samsung has given no indication as to why it chose to support only Ethereum out of the gate, and it has also given no promise or timeline for integrating bitcoin or other cryptocurrencies in the future.

This article originally appeared on Bitcoin Magazine.

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A bill proposed by the Texas legislature will require that all receivers of cryptocurrency in regular transactions verify the identity of the cryptocurrency sender before accepting any payment. If passed, the measure will go into effect on September 1, 2019.

In its current form, the text of the bill itself is brief, providing very few clues as to how such an ambitious task will be carried out. Apart from definitions of basic terms, the bill’s most concrete requirement is that “before accepting payment by a digital currency, a person must verify the identity of the person sending payment,” with an exception to be made if both parties are already using “digital currency that allows the true identities of the sender and the receiver to be known before a person has access to another person’s digital wallet.”

The bill also lays some vital groundwork for developing the tools to eventually carry out this plan. It indicates that, if passed, it would have “the Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board” collaborate to develop the identification tools, and in cooperateion with law enforcement agencies.

Regulators in several countries have had an ongoing struggle to reckon with this technology and integrate it into their financial regulations and legal systems. This Texas bill, for instance, could be incredibly difficult to enforce, even with the cooperation of several regulatory agencies, given the censorship-resistance of cryptocurrency transactions.

Instead of trying to police the development of cryptocurrency, other states have attempted to accommodate cryptocurrency into their state’s financial business laws. On multiple occasions, Wyoming, for example, has shown a willingness to become a regional hub for crypto-asset businesses. In February, the state’s legislature enacted two cryptocurrency laws, one that allows individuals and businesses to directly own crypto-assets without needing an intermediary for custody, and one that deems that “virtual currency is intangible personal property and shall be considered money.”

As a somewhat incredible cross-party cooperation in these politically fractious times, many crypto-friendly initiatives in Wyoming received bipartisan support, with bills being proposed jointly by representatives from both major parties.

This article originally appeared on Bitcoin Magazine.

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Revolut, a mobile finance and payment application based in the U.K., has launched a service that makes it possible for its clients to “auto-exchange” fiat and digital currencies on its platform.

The new feature is intended to make it possible for users to protect themselves against volatilities in the crypto market. Per a company blog post, Revolut users can automatically exchange “fiat currencies, such as the US dollar (USD) to ether (ETH) or bitcoin (BTC), to XRP,” and vice versa, based on a predetermined target rate.

Customers can set it up in simple steps. At the Rates page in the app, you'll select the currencies, and then define the target price you want to exchange them for. The app takes it up from there.

As soon as the current exchange rates match the target, the app will make the exchange automatically. If the prevailing exchange rate doesn’t hit the target price, however, there won't be a conversion.

However, Revolut also warned of one caveat: Due to the probability of high exchange rate fluctuations, it is possible for achieved rates to differ slightly from the target rates.

“Just remember we can’t guarantee that you’ll receive the rate you request, but we’ll try to get the price as close to your target as we can.“

Generally, the rule is that whenever there’s high market volatility, no trade will be executed once the exchange rate skews more than 0.75 percent and 5 percent on either side of your target rate for fiat currencies and cryptocurrencies respectively.

In addition to that, the feature has a daily exchange cap. Customers can only make fiat exchanges that don't exceed €10,000 (approximately $11,198 USD) to digital assets daily. Also, customers can make no more than 30 auto-exchange transactions on the platform per day.

So far there is a limited number of currencies available for conversion. The auto-exchange feature supports fiat currencies USD, EUR and GBP, and three digital assets: bitcoin (BTC), ether (ETH) and ripple (XRP).

Revolut started offering trading services for cryptocurrencies back in July 2017. Then in 2018, the company drew comparisons with American trading platform Robinhood when it announced the imminent arrival of commission-free stock trading on its platform.

The feature is expected to be released later this year.

This article originally appeared on Bitcoin Magazine.

Bitcoin Price Analysis

After days and days of consolidation, bitcoin finally managed to break a new high for the first time in almost two weeks. This new high, so far, has been short lived, however, as it was almost immediately sold into by eager bears:

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Figure 1: BTC-USD, 4-Hour Candles, New High

Our current 4-hour candle is seeing a relatively easy retracement after days and days of an upward grind. We managed to close a new high, but it was quickly rejected and, depending on where the currently daily closes, could lead to a macro reversal setup known as a Swing Failure Pattern (SFP):

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Figure 2: BTC-USD, Daily Candles, Potential SFP

An SFP is characterized simply as a push to a new high that fails to close above the previous high. This is a tactic often used by large institutions to generate liquidity prior to a market reversal. In our case, since we are dealing with daily candles, this could mean we are in for a test of new lows in the mid $3,500s. If we manage to see a reversal, the first logical level to test is the $3,700 range. If we manage to close a candle below that and our prior low, we could be in for a nasty run to the low $3,000s:

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Figure 3: BTC-USD, Daily Candles, Zone of Support

The red zone outlined above has been our latest level of support over the last few weeks. It also proved to be a point of resistance in the past and represents a major pivot level in our current market structure. If we break below this level, it would represent a third failed attempt to hold support and could lead to a strong, powerful move to the downside. We never retested our macro low in the $3,000 level, so we could be in for a major move to test macro support. Three failed attempts to break out of our range (all three with very powerful rejections) show that our market is still very dominated by supply within our current range.

Right now, our test of resistance is still fresh so it’s a bit early to make a macro market call. But one thing that is clear is the presence of supply. When we look at Figure 3 we can see large daily candles rejecting our tests of the $4,000s and so far we have yet to give a very strong test of macro support. So, it seems logical that after three failed attempts the likely course of action for the macro market would be a test of $3,000.

As stated, the move is still fresh so we need to take it day by day. Keep an eye out for the level outlined in red as a close below this would likely confirm a strong continuation to the downside. We have many trapped bulls at our current level and a strong move to the downside could potentially squeeze them out of the positions.

Summary:

  1. Bitcoin finally broke a new high but was rejected immediately. This rejection sets us for a reversal called a “Swing Failure Pattern.” The failure to close above the new high could mean the a liquidity run took place for large institutions to short the market.
  2. On a macro level, the market failed to break out of our multi-month range three times — indicating supply dominance in the market.
  3. If we manage to see a strong continuation, we could easily see a test of the $3,000s before any meaningful upward progress is realized in the market.

Trading and investing in digital assets like bitcoin is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Inc related sites do not necessarily reflect the opinion of BTC Inc and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

This article originally appeared on Bitcoin Magazine.

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Cryptocurrency exchange Coinbase purchased controversial Italian software services provider Neutrino for $13.5 million (€12 million), a copy of a legal document dated February 15, 2019, and shared with Bitcoin Magazine reveals. The hard numbers of the acquisition were previously unknown.

The document leak comes after a week of turbulent developments following the February 19 acquisition. Community members, namely Block Digest podcast member Janine, began to raise ethical concerns stemming from the company’s shared past with Hacking Team, an Italian, man-in-the-middle software provider whose malware and spyware has been linked to human rights and privacy abuses around the globe.

This revelation invoked strong reactions among some community members, eventually manifesting in the #DeleteCoinbase movement. Coinbase ultimately buckled under the mounting pressure, announcing that it would be parting ways with Neutrino staff with ties to Hacking Team. Per the deal, Neutrino would “continue to operate as a standalone business based out of [Coinbase’s] London office,” meaning CRO Marco Valleri, CTO Alberto Ornaghi and CEO Giancarlo Russo were originally slated to stay on as executives until the severance.

Marco Valleri and Alberto Ornaghi were both founders of Hacking Team, and Neutrino’s CEO, Giancarlo Russo, joined Hacking Team in 2004 as COO. At their new company, each executive held 22 percent of its shares — in capital allocation, $5,650 each (€5,000). The other 33 percent of shares, valued at $8,500 (€7,500), was held by 360 Capital, a French-Italian venture capital firm registered in Paris which invested $565,000 (€500,000) in the project in April 2017.

The document says that Coinbase agreed to purchase “the units of the respective total ownership representing the entire share capital of the Company.” Proportional to their shares in Neutrino, from the acquisition, Ornaghi, Russo and Valleri will each receive $2,951,792.91 (€2,608,916.11), while 360 Capital will receive $4,993,401.86 (€4,413,374.16). On the day the contract was signed, the acquisition’s notary paid each executive $487,045 (€430,471) and 360 Capital $4,055,107 (€3,584,071). The remaining $8,332,534 (€7,364,637) was transferred to a Credit Suisse trust account associated with the company, though it’s unclear how or when the remaining capital will be disbursed to the former shareholders.

This article originally appeared on Bitcoin Magazine.

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As the new Lightning network (LN) protocol continues to take the Crypto-Twitterverse by storm, it’s taking at least one new app with it, as the tipping and micropayment app Tippin.me catches on like wildfire. Founder Sergio Abril told Bitcoin Magazine he is “overwhelmed” by the interest and support he is receiving from around the world.

Struck by the potential success of the new Lightning network protocol, Abril created Tippin.me three months ago as a way to enable Lightning micropayments without a user having to set up an LN node.

Abril told us he is getting more than 200 new users a day, 14,100 new users as of March 6, 2019.

The goal of Tippin.me is to make the Lightning network easier to use, by giving users a simple, custodial web wallet to receive and manage small amounts of bitcoin for tips and micropayments.

To use it on Twitter, users need only download an application extension to Chrome or Firefox, register, and sign in with their Twitter account. From there, they can share a QR code with fellow tippin.me users to receive tips through the Lightning network.

“I realized that micro payments could be huge with Lightning Network, but there were still some obstacles that made tipping hard. You needed to be online to get a tip, you needed to generate an invoice every time. It needed to be easier, it needed to be way simpler, and certainly something more appealing. And that’s how Tippin started,” Abril told Bitcoin Magazine.

Since its launch, Tippin.me has sent out 16,500 tips and generated 195,000 invoices. Abril told us that when Twitter CEO Jack Dorsey tweeted about Tippin.me recently, 35,000 people visited his site in one day.

How Does It Work?

To set up Tippin.me, you can use the extensions on Google Chrome or Firefox. Some users have installed the Chrome version in Brave and that seems to work as well.

You will also need to install a mobile Lightning wallet, such as an eclair wallet for androids or the bluewallet for IOS and androids from the App or Play stores.

When you sign up at Tippin.me, a small web custodial wallet is created there, linked to your Twitter username.

With the browser extension installed, a Lightning icon will show up in your tweets along the bottom, appearing after the reply, retweet, like and message symbols.

When the Lightning icon is clicked, a QR-code will appear and you can scan it with your new bitcoin wallet. (The process of retrieving a proper QR code for that user is handled automatically by the extension itself.)

Cashing out tips is done from the Tippin.me dashboard.

Security Is "Top of Mind "

As the Bitcoin space weathers another storm, security is again top of mind. we asked Amber D. Scott, CEO of Outlier Canada, whether she would feel comfortable with a Tippin.me wallet.

“The risk, as I see it, isn't because the Tippin.me wallets require certain information to be revealed publicly. It's in part due to the custodial nature of the tool, and in part due to its novelty. Tippin.me is still in Beta mode, so there are some risks to users as the system has not yet been battle-tested and there is a greater chance of bugs.”

Abril told Bitcoin Magazine that the amounts involved are small so this takes some pressure off, but he is still very mindful of security concerns.

Abril said:

“I decided to show a disclaimer at the sign up screen on Tippin since day one, to make sure that nobody was holding a big amount. I know that this sign could hold people back, but Tippin was just a side project, a fun experiment, and I didn’t want people to risk too much.”

“The truth is that anything could happen, but as long as you don’t keep your bitcoins in there, and do cashouts regularly, you will be OK. Also, let’s not forget that we are talking about small tips, usually just cents."

Promoting Lightning and Bitcoin

Asked if the recent bear market had shaken his faith in Bitcoin, Abril said:

“Despite the current market situation, I think that nothing has changed. Bitcoin is the natural evolution of money, and it will happen sooner or later. It’ll keep on growing no matter what.

“But we need to make it easier to use if we want to speed up the process. We need to simplify everything to push adoption. A lot. And that’s why I decided to build Tippin.me.”

“It’s a fun way to play with lightning,” said Coin Center Communications Director Neeraj Agrawal. “Small applications like these are good for onboarding. It got me to finally install a mobile lightning wallet.”

Asked about the timeline for taking Tippin.me out of beta, Abril noted:

“I hope to have a viable gold product within weeks … The truth is that the Lightning Network is still in Beta as well, and that’s one of the reasons I decided to hold on and stay in this phase (If Lightning Network can fail, so [can] Tippin, which is built on top of Lightning Network… So I didn’t want to risk). Luckily, LN (Lightning Network) is maturing very fast, and the system I’m building is really solid already, so things could change soon!”

Want to experiment with Lightning payments on Tippin.me? Join in on Tuesdays for Bitcoin Magazine’s #LightningTrivia events to win some sats and tickets to the Bitcoin 2019 Conference in San Francisco. Follow @bitcoinmagazine.

This article originally appeared on Bitcoin Magazine.

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Update: After the March 5, 2019 court hearing, Justice Wood has granted QuadrigaCX a 45-day stay on proceedings. He has also appointed Peter Wedlake, a Grant Thornton lawyer who is part of QuadrigaCX’s counsel, as the company’s Chief Restructuring Officer, though the judge was reluctant at first to approve the position out of cost and efficiency concerns. The court will reconvene for the next round of proceedings on April 18, 2019, while the stay extends QuadrigaCX creditor protections until April 23, 2019. Source.

As QuadrigaCX’s legal counsel descends on the courtroom in Halifax, Nova Scotia, for another round of legal proceedings, the court monitor’s third report on QuadrigaCX’s finances — specifically its revelation that the exchange’s cold wallets are empty — lays out some hopeful avenues for fund recovery — and some frustrating dead ends.

QuandrigaCX has been entrenched in a solvency scandal ever since its founder’s untimely death on December 8, 2018. Gerald Cotten passed away while honeymooning with his wife, Jennifer Robertson, in Jaipur, India. According to his widow and his company, he died with the sole knowledge of the exchange’s cold storage private keys and seed phrases. The exchange filed for creditor protection on February 5, 2019.

Ernst & Young (EY) was appointed as monitor over the case, and it’s now saying that the long sought-after funds in QuadrigaCX’s elusive cold wallets aren’t there. The wallets are empty and have been for almost a year, the accounting firm writes in its third report for the Nova Scotia court. It also reports that it has secured some $25 million CAD in customer funds from QuadrigaCX’s payment processing partners. Additionally, it reveals that QuadrigaCX opened 14 accounts on its own platform under various aliases, while it also held accounts (and possibly funds) on four other exchanges.

And if that weren’t enough to chew on going into today’s hearing, Kraken CEO Jesse Powell told Fortune and Forbes that he has been contacted by the Royal Canadian Mounted Police (RCMP) and FBI about the situation.

Cold Wallets Give the Cold Shoulder

The most salient (if disheartening) finding in EY’s third report is the apparent emptiness of QuadrigaCX’s cold storage. More salient still is how long they’ve been empty.

Upon review by the monitor, the following addresses have been identified as QuadrigaCX’s former cold storage:

1MhgmGaHwLAvvKVyFvy6zy9pRQFXaxwE9M

1JPtxSGoekZfLQeYAWkbhBhkr2VEDADHZB

1ECUQLuioJbFZAQchcZq9pggd4EwcpuANe

1J9Fqc3TicNoy1Y7tgmhQznWrP5AVLXj9R

1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa

1JZJaDDC44DCKLnezDsbW43Zf8LspCKBYP

EY gave no addresses for cold wallets compatible with any of the exchange’s other major cryptocurrencies, like ether and litecoin, though it mentioned that it is investigating three other potential cold wallets which may be related to the exchange.

Of the Bitcoin wallets provided, five have been empty and inactive since April 2018 (with the exception of QuadrigaCX’s “inadvertent” sending of 104 bitcoin from its hot wallets to these addresses after filing for creditor protection). Only one, the sixth on the list above, has seen recent activity; its last transaction was December 3, 2018, an output that would empty the wallet completely six days before Gerald Cotten’s death. In total, 2,776 BTC ($14 million CAD at the time of writing) passed through the cold wallets. Even factoring in bitcoin’s price at its all time high, these 2,776 bitcoin would only account for just over $74 million CAD — just under a third of the $250 million the exchange owes its clients.

The monitor indicates in the report that QuadrigaCX employees were unable to explain why the cold wallets have been empty for so long. Typically, exchanges keep the vast majority (~90-95 percent) of funds in cold wallets, and Robertson said in her affidavit that, to her knowledge, Cotten stored the majority of user funds in these cold wallets.

In the same affidavit, Robertson attested that “most of [QuadrigaCX’s] business … was being conducted by Gerry wherever he and his computer were located.”

Ghost Accounts

Since the monitor can’t find funds in QuadrigaCX’s cold wallets, it’s looking elsewhere, both internally and externally, at other exchanges, to be exact.

“During interviews with the Applicants’ representatives, the Monitor was advised of fourteen (14) user accounts that may have been created outside the normal process by Quadriga,” the report reads.

These “internally created” accounts were registered under various aliases “without a corresponding customer and [were] used to trade on the Quadriga platform.” Deposits related to these accounts “may have been artificially created and subsequently used for trading on the Quadriga platform,” a practice that could amount to fraud.

The report continues to state that the monitor discovered “significant volume[s] of transaction activity” from each account, including withdrawals to addresses that do not belong to QuadrigaCX.

Looking into QuadrigaCX’s ties to other exchanges, EY identified accounts at four other exchanges which were under the auspice of either Cotten or QuadrigaCX. Only one of these exchanges has responded to the monitor’s inquiry into Cotten/QuadrigaCX’s account activity, and the information matched with data QuadrigaCX provided relating to the accounts.

The report does not disclose which exchanges were used, though the findings corroborate research James Edwards of cryptocurrency research site Zerononcense has published. In his latest transaction analysis, Edwards claims that QuadrigaCX funneled ether funds through various exchanges; namely, Kraken, Poloniex, Binance and Bitfinex.

A step in the right direction, the monitor indicated that QuadrigaCX’s exchange processes (both its own and with others) are in the preliminary stages of investigation.

To get a full picture of the exchange’s activity, it has placed a request with Amazon Web Services, QuadrigaCX’s web provider, to view data related to the exchange’s platform. The accounts are registered as belonging to Gerald Cotten and Jose Reyes, the head of Billerfly, one of QuadrigaCX’s payment processors, who became further entrenched in the exchange’s affairs when his bank account was implicated in drafts representing customer funds. Amazon refused to disclose this information even with Robertson’s power as executor of Cotten’s estate.

“The Monitor believes it is imperative that a copy of the Quadriga Platform Data is backed up and secured with the Monitor as soon as possible. The Platform Data will assist the Monitor’s ongoing investigation into Quadriga’s business, affairs and potential assets that may be recoverable for the benefit of the Applicants’ stakeholders,” the report reads.

Some Good News

With all the digging the monitor has done, they’ve only unearthed enough dirt to find even more dirt to sift through before it can get to the bottom of this case. That said, the report included a handful of positive developments, as well.

For instance, EY has secured some $25 million in bank drafts that were formerly held in financial limbo between QuadrigaCX’s motley of payment processors and a bank account overseen by the monitor. These funds are now in a disbursement account with the Royal Bank of Canada.

Another $245,000 from an account at the Canadian credit union, which was frozen in 2017, has been transferred to the account, and the monitor is waiting for QuadrigaCX’s legal counsel to endorse another $5 million over to the exchange, the last portion of bank drafts believed to be related to customer funds.

The monitor also retrieved “minimal cryptocurrency” from one of the exchanges on which Cotten/QuadrigaCX held an account. In addition to this, Robertson has allegedly transferred all of Cotten’s personal cryptocurrency holdings to aid in client reimbursement.

A Committee of Affected Users is underway, the report reveals, but it is not set in stone yet. It also argues that QuadrigaCX’s plea for a stay in proceedings of 45 days is amenable, given that the company needs to appoint a Chief Restructuring Officer (CRO) to properly handle business matters as court proceedings develop.

“Subject to the comments above regarding the appointment of the CRO and the extension of the stay of proceedings, the Monitor supports the relief sought by the Applicants … The Monitor further requests that the Court grant relief authorizing and directing [Amazon Web Services (AWS)] to provide access to the AWS Account to the Monitor and the Applicants,” the report concludes.

This article was updated to clarify that 14 alias accounts were opened on its own exchange, not third party exchanges.

This article originally appeared on Bitcoin Magazine.

BitMart and Paxful Team Up to Generate Crypto Liquidity

On February 21, 2019, peer-to-peer bitcoin marketplace Paxful announced a partnership with trading platform BitMart for the purpose of vastly increasing the latter’s liquidity and scalability.

In a company statement, Paxful claimed that this project was initiated “in the hopes of increasing liquidity and scalability” across the entire crypto asset industry.

Paxful’s model for peer-to-peer transaction has made waves in the crypto space all around the world, with its CEO expressly claiming that a company goal is to use bitcoin for the world’s general welfare, and the company building schools in Africa in late 2018.

In a separate statement, Paxful claimed that it has recently seen trades in Latin America increase by 188 percent in Latin America, highlighting the potential for expansion in growing markets worldwide. A large percentage of these trades are used to make remittance payments between family members over international borders using an untraceable money system, so this mission of helping underserved markets can tie in naturally to Paxful’s own expansion.

This mindset can explain much about the new partnership. Paxful has a track record of using their peer-to-peer transaction method to help developing markets, but there are few actual crypto exchanges that operate with this technology. Now that BitMart is one of these, this integration will “bring more trading options to emerging markets by allowing them to obtain bitcoin on the Paxful platform.”

Crypto Price Prediction 2020

For Paxful and BitMart, this new cooperation will serve the interests of both companies while also making bitcoin more widely accessible worldwide. Customers will be able to become users of BitMart’s exchange, while taking advantage of the many financial options Paxful offers, such as gift cards, bank transfers, e-wallets, cash deposits and many others.

This article originally appeared on Bitcoin Magazine.

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An IBM executive is unfazed by the current market realities, saying he sees Bitcoin (BTC) reaching a value of $1 million as a present possibility.

Jesse Lund, vice president of Blockchain and Digital Currencies at IBM, shared his predictions at the IBM Think 2019 Conference, which took place February 12–15, 2019.

$5,000 in 2019, $1 Million Someday

As the discussion drew to a close, the IBM executive was asked about what he believes the price of bitcoin will be by the end of this calendar year. He opined that bitcoin could cross the $5,000 mark by the end of the year, adding that he sees bitcoin “at a million dollars someday.”

Explaining the reasons for his million-dollar forecast, Lund said, “If bitcoin is at a million dollars, then [one] satoshi is on value parity with the U.S. penny.” He is of the belief that such a valuation will give the network for the world’s most valuable digital asset a liquidity value that will exceed $20 trillion.

Lund went on to say that with so much liquidity, there is potential for a significant change to the way corporate payments are being made all over the world.

Concluding, he said, “I see maybe $5,000 at the end of the year, but I see a way higher upward trajectory.”

IBM, Stellar and Future Partnerships

During the interview, Lund also touched on some of IBM’s most recent blockchain endeavors, particularly the company’s partnership with Stellar (XLM) and how it expects to integrate the Stellar network into Blockchain World Wire (BWW), its international payment channel.

He explained:

“There’s no technical reason or technical barriers that should prevent money from flowing the same way [as information]. […] The architecture of World Wire is really a cross-border payment network, the magic of which — if you will, the novelty of it — is the ability to send payment instructions saying, ‘Hey, I’m sending you something — get ready.’ And on the other end, the receiver is making sure that who you’re sending it to is not some nefarious actor or bad actor.”

IBM is using the Stellar network with BWW as both an intermediate currency and a means through which transaction fees can be covered.

Additionally, Lund revealed that IBM is working on forging alliances with other crypto assets. The IBM executive said the company believes in a network of digital assets that can provide settlement tools to effect cross-border payments. Also, the participants in the network should have the option to make real-time choices as they please.

“It could be Ripple, and it could be Bitcoin, but it would also probably include other instruments, like stablecoins, and even eventually soon — hopefully — Central Bank–issued digital currencies,” Lund concluded.

This article originally appeared on Bitcoin Magazine.