Hodler’s Digest, April 22–28: Top Stories, Price Movements, Quotes and FUD of the Week
Bitfinex and Tether deny the New York attorney general’s claims of a lost $850 million, and Samsung considers a Samsung Coin.
Top stories this week
The New York attorney general’s office alleged this week that crypto exchange Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator Tether to secretly cover the shortfall. The attorney general’s office has obtained a court filing that alleged that Bitfinex’s operator, Tether Limited and its associated entities were in violation of New York law with activities that may have defrauded New York-based crypto investors. Bitfinex has already publicly renounced the accusations, repeating in a blog post that both its platform and Tether are financially sound and claiming the court filings are “riddled with false assertions.” Amid the allegations, Bitfinex withdrew funds worth almost $90 million from its cold wallet.
Masayoshi Son, a Japanese billionaire and the founder of multinational conglomerate SoftBank Group, reportedly lost over $130 million with his bitcoin (BTC) investment. According to unnamed sources speaking to the Wall Street Journal, Son invested at the recommendation of Peter Briger, the co-chairman of asset management company Fortress Investment Group. However, Son allegedly invested in bitcoin when it was near its $20,000 all-time-high in late 2017 and sold during the 2018 bear market, losing $130 million. According to Bloomberg, Son’s net worth is $18.8 billion and has grown by more than 54% over the last year.
According to unnamed sources speaking to a crypto industry publication, South Korean electronics giant Samsung is possibly developing a public-private blockchain with its own cryptocurrency, the Samsung Coin. The sources note that the alleged project would be developed by the company’s dedicated blockchain division, and that it would take the form of a blockchain mainnet based on Ethereum. The Ethereum-based offering, according to the reports, would probably incorporate elements of both public and private details, noting that he or she thinks “it will be hybrid — that is, a combination of public and private blockchains.”
If a $13.2 billion equity deal goes through, cryptocurrency exchanges Korbit and Bitstamp could soon have Walt Disney Corp. as their owner. According to a Korean news outlet, the chairman of online gaming giant NXC Corporation, Jung-ju Kim, plans to sell his 98.6% stake in the company. Since NXC owns 47% of Nexon, South Korea’s largest game developer — which has stakes in the aforementioned cryptocurrency exchange — Disney would become a coincidental player in the cryptocurrency, pending the deal’s closure. To date, Disney’s only foray into the cryptocurrency sphere has been its Dragonchain blockchain, which has remained a fringe project despite a 2017 initial coin offering (ICO) raising around $13 million.
According to a report released by Independent Security Evaluators, a so-called “blockchain bandit” has amassed almost 45,000 ethers (ETH) by successfully guessing weak private keys. Adrian Bednarek, a senior security analyst, discovered the hacker accidentally after uncovering 732 private keys through his research, using a combination of looking for faulty code and faulty random number generators rather than a brute force search. Looking at the findings, Bednarek realized that some of the wallets associated with the private keys he had found had a high volume of transactions going to a single address, with no money coming back out. At the end of ETH’s value, the total amount of ether allegedly stolen was equal to around $50 million.
Winners and losers
Bitcoin is a bit down at the end of the week, trading at around $5,300. Ether is trading at about $159, XRP at $0.29 and total market cap is at around $172 billion.
The top three altcoin gainers of the week are speedcash, commerce data connection and ACRE. The top three altcoin losers of the week are spectrum network, womencoin and icechain.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most memorable quotations
“We have been investing for the last year to re-architect our entire platform to support multiple blockchains in the face of global regulation. Global regulation of the cryptocurrency industry is inevitable for this truly borderless financial system to achieve mainstream adoption.”
Jonathan Levin, Chainalysis co-founder and chief operating officer
“My entire life I’ve been tracking people who are the best in the world, and hiding their identity. Finding Satoshi was a piece of cake for me.”
John McAfee, American entrepreneur and stalwart crypto advocate
"What is preventing the banking industry from rushing into it? I think it's mostly culture. I think the tipping point is about having an entrepreneurial culture, a willingness to push people to keep asking why.”
Emmanuel Aidoo, head of digital market assets at Credit Suisse