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- Are you looking for the best trading platform to go long or short Bitcoin, cryptocurrencies or even other assets like forex and CFDs?
- Do you want to take advantage of perhaps the leading platform for leveraged trading (1000x) to amplify your gains?
PrimeXBT is an award-winning Bitcoin and cryptocurrency trading platform. And it has some of the most exciting trading features like 1000x leverage, and other benefits attracting some of the most senior traders to new beginners alike.
Here you can trade cryptocurrency assets like Bitcoin, Ethereum, EOS, LTC, and XRP to CFD (Contract For Difference) instruments like S&P 500, Nasdaq to Forex trading with EUR/GBP, EUR/AUD, GBP/USD, USD/CHF being just a few.
So it is easy to see why this all-round trading exchange/platform is fast becoming a firm favourite.
PrimeXBT have grabbed a lot attention from seasoned Bitcoin and crypto traders. And this specifically for the benefits this trading platform can provide people with:
- No KYC/AML required
- Minimal deposits needed to get started
- Great selection of assets for trading – cryptocurrencies, comodities, Forex, etc
- 1:1000 leverage
Also you might have done your research and seen that Bitmex is a leading trading platform for margin trading and leverage trading. But let us tell you that PrimeXBT is most definitely a better choice for you!
But can you trust the reviews and attractive features of Prime XBT? Is it really legit and safe?
Let us explore more about this trading platform and if it is worth using in 2020 in this review?
What is PrimeXBT?
PrimeXBT is one of the leading trading platforms for both beginners to more experienced cryptocurrency traders.
I would say it is because it is very easy to use trading platform with some great trading benefits.
In fact, it is one of the fastest trading platforms. It has an average trading execution of 7.12 ms. This basically means that you don’t need to worry about any missed trades when using PrimeXBT!
It has also become very trendy amongst traders that are tired of the constant KYC/AML checks that are often required everywhere. Here you can register an account for less than one minute and only with your email address.
It is specifically a trading platform that is tailored for day traders and margin traders.
Add to that this is a trading platform that can bring a top level trading volume and order book. With daily volumes of about $545M.
But with anything that promises much and sounds very good we want to find out if it really is all true? And if PrimeXBT can deliver on its promises?
Let us find out more.
It is time to explore the ins and outs of PrimeXBT and find out if you should be using this as your go-to trading platform.
How to register an account with PrimeXBT
If you want to get started trading at Prime with all the benefits and potential it brings you will first need to register an account with them.
But don’t worry creating an account takes less than one minute and you don’t need to complete any KYC or AML checks.
This is how it works.
Start by joining via this link
Step 1 – Fill in your details
Add your email address and a password
Step 2 – Confirm email
Go to your inbox and confirm the email
Step 3 – Deposit funds / Buy funds
Now you’re in, and it is time to add funds to your account so you can get started trading on PrimeXBT!
Main features & trading on PrimeXBT
Ok, let us explore the main features of PrimeXBT and what you can do on its trading platform.
You can engage in traditional spot trading, where you buy or sell Bitcoin or other assets by different market orders.
- Market order – trade to be executed at the current market prices
- Limit order – trade at a specific price
- Stop order – buy or sell when the price reaches a specific target
- OCO order (One Cancels the Other – learn more) – two trade orders, and when one triggers the other is cancelled
Additionally you can create long or short positions. Here you take advantage of your market knowlege and trade for where you think an assets price will move towards.
So do you think Bitcoin’s price will fall within the next 5-10 minutes?
So if you act on this by taking a short position you basically sell your BTC at the set price, let’s say $7800 and then if BTC’s price drops to $7500 you then re-buy again, close your position and take your gains.
It works the same way for long positions, where you think an asset will soon increase in price.
PrimeXBT Leverage trading up to 1000x
Leverage trading is enabled across the entire asset portfolio.
PrimeXBT provides you with the greatest leverage trading opportunities. Up to 1000x spread across the various assets on its platform. For cryptocurrencies this extends to 100x.
This also includes WTI Crude, and Brent oil CFDs and stock indices such as the S&P 500 or DAX.
And for Forex this is 1000x.
And for Forex (more than 10+ currency pairs), gold, silver are all vailable at 1000x leverage.
That means you can turn a $100 deposit and trade into a $1000 gain if you would use the 100x leverage and Bitcoin’s price would increase by 10%.
So with leveraged trading comes huge profit potentials. But simutanously similar risks if the trade don’t go your way. So trade with caution when using leverage.
Trading volume & liquidity
One of the key features necessary on any good exchange or trading platform is the liquidity and volume.
That bascially means if there is greater liquidity and volume the easier it will be to settle any trades.
PrimeXBT has more than 12 well-versed integrated liquidity providers. They bring you one of the most trusted trading platforms with an average uptime of 99.9% and a capacity to execute up to 12,000 orders per second.
Great trading view & customisable UI
Change your charts to your own preferences, bar/candle/line trading view. With 1min, 5min, 15min, 30min up to 1 month.
Add your own trading lines and perform your trading analysis directly on the site. This makes trading and executing your trading strategy much easier and quicker.
You can also set up four different trading charts going on at the same time. Making it possible to follow and trade on several markets simultaneously and without slippage.
With different trading views such as one-click trading for instant trades without confirmation, double-click trading with the same feature using a double click and then regular trading where you see a confirmation window before closing trade.
Turbo trading – Gain up to +90% in 30 seconds
If you are a looking for a way to earn very quick profits from predicting the market then you could explore this feature called Turbo.
It lets you predict and trade on market movements for the next 5 minutes, 10 minutes, or 15 minutes.
So here it is real easy to make some attractive gains in a very short time. And to help you get started using Turbo you can use the free 1 BTC demo account.
Also you can start trading with as low as $1.
Did you know that you could start earning an extra income by recommending other traders to the platform?
In fact they have a very generous affiliate program where you can earn 20% of the trading fees of all your direct referred users. But not only that you will also earn money from any referrals that those people bring into the site.
And this isn’t to take lightly, other successful users in the top 3 alone has generated more than 110 BTC in earnings from the program
So it is possible to earn a very good extra income by simply recommending others to the platform.
Especially with the leverage trading features. Where the low fee of 0.05% with a $2000 deposit and with 100x leverage trading means a commission of $100 and you would get in return $20 yourself.
We highly recommend that you take advantage of this feature as soon as possible when registering a new account.
Deposits and withdrawals
Deposits and withdrawals are fairly straightforward on PrimeXBT.
You can use the QR code or the BTC address for your deposits. Or even buy BTC directly from the site using the Changelly widget.
One of the key benefits of this platform is the low minimum deposits. Here you can get started using this platform with $10. This is perfect for beginners that wants to try it out before settling in for the long term.
- Мinimum deposit is equal to 0.001 BTC (about $10)
Withdrawals are also done in BTC, once per day, during a scheduled timeframe. Outside of this window, users may cancel their withdrawal. Safety features such as address whitelisting are included, and a pin is sent to confirm each withdrawal before sent.
Withdrawals are easily done in BTC, these are settled once per day between 12:00 and 14:00 UTC. Withdrawals requested before 12:00 UTC will be processed on the same day.
There are often a few common types of fees at any trading platform or cryptocurrency exchange.
They are the trading fees, withdrawal and deposit fees, and purchase fees (for buying cryptocurrencies with a card).
It is important that you look into the fees at any trading site or exchange before you start using it. So that you can pick one with low fees. As it otherwise can soon quickly eat up your profits otherwise.
And I would say the the fees or PrimeXBT is really positive.
These are the current fees applicable.
PrimeXBT Trading fees
Where other trading exchanges and platforms takes out separate maker and takes fees PrimeXBT simply takes a low flat fee of 0.05% per trade.
And this is very good and one of the lowest fees in the industry.
PrimeXBT Withdrawal fees
If you want to withdraw your funds they take out a fee of 0.0005 BTC (about $3.80) for all withdrawals. This is on standard 40% lower than the industry average.
Customer Support & Security
The platform uses advanced encryption for passwords, two-factor authentication, and a variety of bank-grade security features to help protect your funds.
You can find most of the answers to your questions in the help centre.
They also have a set of video tutorials available on their site to help new users more quickly get started, and providing instructions to the essential concepts of trading at PrimeXBT.
But if you need to speak with someone from the customer support team via 24/7 live chat.
Benefits of PrimeXBT
Ok, let us summarise what are the key benefits/pros of using PrimeXBT.
- No KYC/AML checks are necessary to create your own account with PrimeXBT
- Leverage trading up to 1:1000 – this can enable traders to more quickly build up their portfolios (trade with caution)
- Multiple assets available for trading – BTC and cryptocurrencies, Gold, Forex, S&P 500 and 30+ assets
- Minimal deposit
- Low trading fees – a flat 0.05% fee on all trades
Conclusion – is PrimeXBT legit and safe to use?
Well yes the trading platform is absolutely legit in terms of it being a serious trading platform with traders all over the world using it daily.
And the trading platform itself works as it should, and you can easily deposit funds and withdraw from your account.
So we can say it works as it should and you can trust it.
Is Prime XBT Safe?
Yes, they have done a lot of work to create a secure platform:
- With most of the funds stored in cold storage
- 2F-Authentication is available
- SSL protocol enabled
- Cloudflare integration to protect from cyber-attacks
- Bitcoin address whitelisting
- Full risks checks on ever order placement
- Continuous IT and security risk checks and audits and many other security features in place.
So yes it is also safe to use.
But with any investment, it is important that you realise how it all works and that as with any investments there are risks to it.
So it is important that you advance step by step and not rush in all at once. Take your time to learn about how trading works, how margin and leveraged trading works and how the platform works.
I promise you there will be great opportunities to make money and improve your trading skills even if you take it slowly to learn and minimse any risks.
But yes there are great opportunities to make some serious gains with the leverage trading options enabled across the site.
More popular guides:
- 11 important crypto tips to be aware of before investing
- How to invest in Bitcoin the beginner guide
- How to Sell Bitcoin for cash – ‘cash out BTC’
- 16 Proven Ways of Making Money from Crypto
- What is the Crypto Fear & Greed Index?
Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor of Bitcoin and other cryptocurrencies. I’ve been around the space for a good few years, learning how it all works and to be a part of this engaging community.
Now it’s time for me to share my experience with others. I am also a business and product developer so I know first-hand what it takes to create a successful product, brand and customer experience.
And I am bringing this vision to my writing and how Go CryptoWise work.
Connect with me on LinkedIn. Ask me anything on here.
Get in touch with me to find out more about Go CryptoWise and what we care about.
Alleged Fiat Gateway of MT Gox Hackers Tops SAR Reports in Leaked FinCEN Files
The entity that has received the most Suspicious Activity Reports (SARs) in some 2,000 leaked FinCEN documents happens to be an online payment processing company that allegedly served clients involved…
The entity that has received the most Suspicious Activity Reports (SARs) in some 2,000 leaked FinCEN documents happens to be an online payment processing company that allegedly served clients involved in the MT Gox hacked bitcoin money laundering scandal.
Mayzus Financial Services (MFS) had a corporate account at BTC-e, according to a report from last year, as did some of its employees, with this fiat gateway suspected of being the chief way hacked bitcoins were turned into dollars.
The company itself denied any wrongdoing in 2017 following the arrest of Alexander Vinnek, the alleged owner of BTC-e, with MFS stating at the time:
“MAYZUS Financial Services Ltd. might have had among its clients, through the services of MoneyPolo and OKPAY, legal entities who could be operators of the BTC-E exchange, or private persons who could be owners or employees of the BTC-E exchange, however, all accounts of legal entities or individuals whom we considered as possibly related to the BTC-E exchange, are blocked, which was properly reported to the financial regulatory authorities. In addition, information about these individuals and legal entities was forwarded to the law-enforcement agencies of Great Britain.”
That they may well have indeed done so could be corroborated by these leaked files which have not been published as far as we can see, but Buzzfeed and the International Consortium of Investigative Journalists say they have analyzed the documents for the past year. They say:
“Some entities have been flagged numerous times in the FinCEN Files. Mayzus Financial Services sets the record, appearing as a subject of 36 SARs.”
What the nature of these SARs was is not clear, but it raises questions about whether any of them was investigated especially considering the volumes concerned.
Michael German, a former FBI special agent who is a national security and privacy expert, is quoted as saying that in the naughties “the SAR program became more about mass surveillance than identifying discrete transactions to disrupt money launderers.”
Volumes have ballooned with some two million such suspicious activity reports filed every year, an almost impossible number to swift through.
In addition even after wrongdoing is ascertained and they get a fine, banks like JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon continued to move money for suspected criminals, Buzzfeed says.
Two trillion dollars of such reports have been filed within this somewhat limited set of leaked documents with such suspicious reports not quite being proof of wrong doing, but more something to potentially look at.
In the case of BTC-e, there was a lot to look at because they had no anti-money laundering measures at all, with MFS seemingly serving them.
The alleged owner of BTC-e is now to go through trial in France where this relationship may well come under more scrutiny, especially now that these documents bring them to the spotlight once more.
However senator Ron Wyden, a member of the Senate Intelligence Committee which requested some of these SARs, is quoted as saying that the FinCEN Files investigation “reinforces the fact that we now have two systems of law enforcement and justice in the country.”
Drug cartels move millions through US banks; poor people go to jail for possession. “If you’re wealthy and well-connected, you can figure out how to do an enormous amount of harm to society at large and ensure that it accrues to enormous financial benefit for all of you.”
SARs are meant to act as some sort of a ‘zoom in’ suggestion that can potentially give enforcement the ability to do what we’ll call analogue blockchain analysis through spreadsheets.
In crypto of course these ‘spreadsheets’ are available to anyone and can be analyzed by anyone, as was the case with the revelation that MT Gox still had 200,000 bitcoins, rather than losing them all as they initially suggested.
In fiat, these spreadsheets are secret but the law requires unusual transactions to be revealed to law enforcement with such revelation in itself being sufficient, leaving the bank free to continue facilitating transactions from entities or individuals that they filed as suspicious.
It’s up to law enforcement at that point to then follow the lead, but considering for MFS there have been 36 such suspicious activity reports from eight filers, you’d think either the leads are not being followed or the filers are abusing the SAR system.
Meet in the Middle: Crypto Companies and Banks Are Evolving Together
Some say that meaningful change happens gradually. Others insist it erupts unexpectedly. This week, we saw that both are true.
Earlier this week, the Wyoming Banking Board voted to approve the application from San Francisco-based crypto exchange Kraken for a Special Purpose Depositary Institution (SPDI) banking charter. Yes, one of the crypto industry’s oldest exchanges has become a bank.
This is a big deal, one that heralds a coming transformation of the crypto asset industry. Market participants and commentators understandably reacted with glee and surprise. Both are warranted, yet both overlook the bigger shift that has been building up for some time, and which will have an even more significant change on how finance functions.
First, to understand the excitement, let’s look at what this means for Kraken.
A SPDI is a bank charter, but it is not a traditional bank in that it can’t make loans. It also is not required to have FDIC insurance, since there is no solvency risk stemming from fractional reserve banking – 100% of its deposits have to be backed by assets on hand.
Pending approval, this should give the firm’s subsidiary Kraken Finance access to an account at the Kansas City Federal Reserve, which gives it access to the U.S. payments system. This will make it easier for clients to move funds on and off the exchange, as well as allow for the launch of new products such as debit cards, IRA accounts and wealth management services.
Also, Kraken Finance will be able to custody both fiat and crypto assets, with more oversight and legal protection for clients than a trust company can offer. Client confidence will get a further boost through the additional capital that banks are required to hold, and through the required contingency account.
And, although it is chartered in Wyoming, Kraken Finance will be able to operate in most U.S. states under a unified regulatory framework through reciprocity agreements, possibly even returning to operate in New York, more than five years after its public departure in response to the BitLicense.
This is good for Kraken, but also for the industry as a whole, as it will facilitate onboarding for a range of businesses and institutions that are only comfortable entrusting financial transactions to a bank. It also takes steps towards solving the perennial problem many crypto businesses have in getting a banking license for operational needs. Opening an account at a digital asset bank should support both fiat and crypto liquidity. And the emergence of a competitor to the few banks serving digital asset businesses should give customers greater choice and better conditions.
And finally, Kraken is likely to be the first of many firms moving to take advantage of the business opportunity that being a digital asset bank promises. This will continue to boost institutional confidence in the crypto industry, and support the growth of related banking services that further incorporate digital assets into users’ daily lives.
Now, let’s look at why this was a surprise.
A group of visionary regulators and advocates started work in 2018 on the painstakingly detailed process of drawing up legislation that takes crypto assets into account. Caitlin Long, one of the aforementioned advocates, hosted a panel at our Invest conference last year that went into many of the details, and has both written and spoken about it at length. So, no surprise there.
And a Kraken job ad in December of last year hinted that applying for the SPDI charter was in their plans. Yet Kraken’s win in being the first caught many off guard, because Kraken has not traditionally been seen as, well, the type to choose the banking route.
The exchange was founded in 2011 (when the bitcoin price averaged $5.60) by Jesse Powell, one of the industry’s earliest advocates, and an outspoken critic of regulatory overreach.
What is one of the original crypto companies doing becoming a bank? Has it given up its principles to join the “system” bitcoin was supposed to circumvent?
The answer is no, it hasn’t. On the one hand, Powell has shown from the beginning that he will take steps to ensure fair access to cryptocurrencies, and has worked at getting strong banking relationships to support his business. Becoming a bank is an efficient way to cement the firm’s standing in the financial community, which benefits its clients.
On the other hand, the “system” that Kraken is joining is changing. And that has been the point all along.
Here we get a glimpse of the bigger shift I mentioned above. It’s not that crypto businesses are jumping through hoops to become respectable. That is happening to some extent, and it’s good for the industry. Respectability brings mainstream acceptance and investment inflow. And with its SPDI application, Kraken is reinforcing its reputation as one of the more innovative institutions in our sector.
The bigger shift is that traditional finance is changing to adapt to the crypto industry.
The SPDI is a new type of bank charter that was created with the crypto industry in mind. A new set of definitions and protections was drawn up to take into account crypto asset characteristics. A state passed financial legislation for the crypto industry.
What happened this week is not so much confirmation that crypto businesses are joining traditional finance. It’s more, to some extent, the other way around.
Many of us working in this industry are here because we believe that we are witnessing the emergence of a new economic system that will reform capital markets and finance. We have all faced cynics who insist that traditional finance won’t change, that cryptocurrencies are a threat to stability and order and that authorities won’t let this scale of innovation take root.
This week proved the cynics wrong.
The main story is not that one of the original cryptocurrency businesses, which supports the underlying principles of distributed governance, has joined the legacy financial system.
The story is more one of traditional finance adapting.
So far, this is both a small step (Kraken is one company, Wyoming is one state, the U.S. is one country) and a big one. The crypto industry wants reasonable regulation, for security and respectability. But it knows that traditional rules can’t apply. So it has convinced the rule makers to make new ones.
This week it showed that it can get the traditional side to meet it halfway. If you were wondering how the crypto industry could transform traditional finance, this is how it happens.
Anyone know what’s going on yet?
Bitcoin started to recover some ground this week, although it is still down for the month.
Stocks generally continue to languish, with the tech sector suffering a drawn-out hangover from recent exuberance. The market as a whole seemed to be feeling frustration that the U.S. Federal Reserve chairman Powell’s remarks this week – in his last scheduled public appearance before the U.S. election – didn’t offer more clarity on inflation expectations.
Amid deepening fatigue around the persistent uncertainty (not just about inflation but also about the economic recovery, a vaccine, can our kids stay in school and so much more), concern about the fate of the U.S. dollar seems to be gathering strength. Even renowned fund manager Ray Dalio was caught hinting that “other asset classes” will pick up strength from the loss of faith in fiat currencies.
The question remains how long before this growing tension starts to really overrule the persistent faith that the Fed will keep stock markets afloat. The declines we’ve seen so far this month may hint that the concern is starting to make itself felt in the indices – or, they could just be a breather before another spurt of energy.
Be sure to listen to my colleague Nathaniel Whittemore interview Raoul Pal for a harsh take on the inefficacy of monetary policy and the need for a new economic paradigm.
Michael Saylor, the founder of MicroStrategy, revealed that his company has acquired an additional $175 million in bitcoin, which brings his firm’s total spend on cryptocurrency to approximately $425 million. TAKEAWAY: While it is exciting to see such public validation coming from outside our industry, it is a bit worrying when corporate treasury decisions start to be treated as publicity for a concept. It’s also disconcerting to see the resulting (or coincidental?) bump in the share price touted as a reason other corporate treasurers should put company funds into cryptocurrencies. I say this as someone who believes in bitcoin’s long-term potential (not investment advice!). I also say this as someone concerned about the pressures CFOs face in their daily jobs, and the implied assumption that putting corporate funds into bitcoin is risk-free. It isn’t.
(Nathaniel Whittemore’s interview of Michael Saylor is a compelling listen.)
Over $1 billion worth of bitcoin has been tokenized on Ethereum, equivalent to 0.42% of the total BTC supply and up from less than $7 million in January. TAKEAWAY: This is astonishing growth. The concept is compelling. It’s not just about depositing your bitcoin into a specific wallet in order to get a corresponding amount of an Ethereum-based token that you can then deposit in another wallet to get yield. It’s also fascinating for the way assets can “live” on more than one blockchain at once, even if just temporarily. We’ll no doubt be hearing a lot more about this.
The RGB protocol, currently in beta, is a second layer network that aims to bring smart contracts and tokenized assets to Bitcoin. TAKEAWAY: This reminds us that Bitcoin may have a simple and resilient protocol, but it is also an evolving technology. While the base code may be difficult to change, developers are working on code layers that connect to the Bitcoin blockchain and that allow for additional functionalities. Some of these may one day end up being a key driver for bitcoin demand, much like the growing demand for applications on the Ethereum blockchain was one of the factors that boosted the price of its native token, ETH.
A leaked version of rules to be issued later this month by the European Commissionproposes an all-encompassing set of regulations covering the trading or issuance of digital assets, effectively treating them the same as any other regulated financial instrument. TAKEAWAY: The legal clarity will be welcomed by many, although Europe has a well-earned reputation for passing blanket rules with good intentions that end up having the opposite effect than that intended. That said, European regulators have on the whole been supportive of blockchain technology, and some countries have encouraged the development of digital asset market infrastructure, so this could end up being a positive development.
Blockchain services firm Diginex is officially merging with publicly traded 8i Enterprises Acquisition Corp., a special purpose acquisition company (SPAC). The merger is a key part of its plan for a “backdoor” Nasdaq listing. TAKEAWAY: Diginex’s businesses include crypto derivatives exchange EQUOS.io, digital asset trading technology platform Diginex Access, securitization advisory firm Diginex Capital, as well as a digital asset custody provider and an investment management business. Some see irony, as it represents the merging of decentralized assets with centralized markets (a crypto company listing on Nasdaq). Others see perfect synergy, however, as Diginex covers a range of crypto-focused businesses that are pushing the innovation envelope for capital markets. Either way, it heralds the eventual merging of decentralized and centralized concepts, and a maturation of crypto market infrastructure.
According to blockchain forensics firm Chainalysis, the number of “young investment” wallets (those that are one to three months old and rarely send bitcoins) has jumped to the highest level since February 2018, double that of six months ago. TAKEAWAY: While it’s hard to draw clear conclusions from address data, this does hint at growth in interest in cryptocurrency from new entrants into the market. The theory is that new addresses used for transactional purposes would have outgoing as well as incoming transactions – those that are almost all incoming are more likely to be investment accounts.
According to a report in Bloomberg,India plans to ban trading in cryptocurrencies. TAKEAWAY: So, India has been sending mixed signals. It allows banks to offer services to crypto exchanges. And then leaks a possible ban on crypto exchange activity? This is worth watching because India is a potentially massive market. Even apart from the sheer size of the population, there’s the recent painful experience with demonetization and the relatively high inflation rate.
Leading crypto derivatives exchange Deribit is seeing increasing investor interest in bitcoin options that would profit from prices rallying as high as $36,000 by the end of 2020. TAKEAWAY: I’d say this is nuts, but it obviously makes sense to some people.
For those looking for more clarity as to what’s going on in crypto market infrastructure, this is your week.
- Ark Invest published, in collaboration with Coin Metrics, a paper that explores bitcoin as a monetary asset, focusing on its trading volume evolution and outlook, liquidity and the potential impact of institutional investment.
- Binance Research put out an overview of crypto market infrastructure, with a focus on the evolving role of prime brokers, and a prediction that traditional brokers will continue to move into the crypto industry.
- Deribit published a note that points out how blockchains’ relatively slow responses hinder trading opportunities, given the need to move collateral around for leveraged positions – and how custody services are evolving to solve for this.
Podcast episodes worth listening to:
The United States Gets Its Crypto Back from Two Russian Hackers
The United States appears to be angry with crypto hackers as of late, and the country is making it clear that it’s not going to put up with bad actors anymore. The U.S. is presently accusing two Russian hackers of making off with roughly $17 million in assorted crypto units. The accusations come from the Justice, State and Treasury Departments.
The United States Will Not Put Up with Crypto Theft
The Treasury has identified two individuals allegedly involved in the scheme. They are Danil Potekhin, 25 years of age and living within the region of Voronezh; and Dmitirii Karasavidi of Moscow, who is presently 35 years of age. The two are accused of conducting cyberattacks a year apart from each other in 2017 and 2018 that ultimately deprived two U.S. crypto exchanges of more than $16 million.
The attacks on the exchanges sound rather complicated in that the pair created websites similar with those of the trading platforms they were targeting. These websites mimicked those of the original sources, and thus people who initially signed up or logged in on the copy sites gave the attackers their information, thereby giving the pair access to dozens of accounts and allowing them to make off with the funds.
Treasury Secretary Steven Mnuchin explained in a statement:
The individuals who administered this scheme defrauded American citizens, businesses and others by deceiving them and stealing virtual currency from their accounts… Ultimately, the stolen virtual currency was traced to Karasavidi’s account, and millions of dollars in virtual currency and U.S. dollars were seized in a forfeiture action by the United States Secret Service.
While it’s believed that the two initially tried to hide the stolen money by keeping it stored in several accounts on several different blockchains, the story is unique in that the U.S. officials in charge of the case appear to have gotten the money back. This is huge in that typically money stolen from a crypto platform or exchange is often lost for good. This is just more proof that the United States is not messing around.
This marks the second time in a while that the United States has managed to take effective action against nations that look to steal from American reserves. Recently, the country announced that it had garnered several million in crypto funds back from North Korea after the nuclear state stole a hefty digital sum as a means of building up its arsenal.
Trying to Prevent Future Crime
Right now, the two Russian men are facing a maximum 59 years in prison if they are convicted. At the time of writing, they are facing charges of conspiracy to commit computer fraud, among others. Secretary of State Mike Pompeo commented:
The United States will continue to promote accountability among malign actors seeking to undermine our economic security. Today’s coordinated action demonstrates our commitment to deterring cybercrimes.
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