Crypto market overview Feb 26th 2018
1. CFTC litigates My Big Coin for suspicion of scam
- Commodity Futures Trading Commission accuses the crypto My Big Coin (MBC) for swindling $6 million from its customer using deceptive information.
- To cover up its fraudulent acts, My Big Coin uses the money obtained from new customers to pay the older ones as in a Ponzi scheme.
- As stated by James Macdonald, CFTC’s Director of Enforcement, this movement shows that CFTC has taken crypto security and regulation more seriously.
- MBC’s lawyer Adam Tracy dismissed the accusation as unfounded and said that the company was working on an appropriate response.
2. False “blockchain” companies to face legal punishment
- Riot Blockchain Inc., previously known as Bioptix, has been brought to the court under the accusation that it abused the term “blockchain” to gain investor’s appeal.
- Long Blockchain Inc., known prior to re-naming as Long Island Iced Tea, is subject to removal from NASDAQ for its deceptive new brand name.
- As the market power of the word “blockchain” is so seductive, even for non-blockchain businesses, NASDAQ has to keep a close eye on this matter to prevent, detect and eliminate misleading re-branding.
3. Bank of America realizes the dangerous side of virtual money
- In its 90-page long annual report to SEC, Bank of America, the second largest bank in the US, stated that virtual money might provide a much cheaper payment system competing with one provided by banks.
- This action shows that the financial institution has begun to see cryptos in their true light and take suitable precautions.
- If other banks share the same view, the future’s financial system may undergo drastic changes with virtual money being the harbinger.