Vitalik Buterin Discloses His Cryptocurrency Holdings, Corporate Investments, and Other Potential Conflicts of Interest

Vitalik Buterin Discloses His Cryptocurrency Holdings, Corporate Investments, and Other Potential Conflicts of Interest

               

Vitalik Buterin, the founder and figurehead behind Ethereum,

recently disclosed his cryptocurrency holdings, corporate investments, and other compensation in an act of transparency, likely to disclose any potential conflicts of interest he might have.

Vitalik Buterin’s Cryptocurrency Holdings

On Feb. 19th, Vitalik Buterin disclosed his investments and compensation in a Reddit thread titled “AMA [ask me anything] about Ethereum Leadership and Accountability.” He responded with a breakdown of his investments and compensation. First, the majority of Buterin’s assets are, naturally, held in ether. Based on his primary wallet address, he holds at 350,000 ETH worth over $50 million at current prices.

That said, in a previous disclosure on Oct. 10th, 2018, on Twitter he stated “I also have some other addresses, but they’re quite small relatively speaking,” so his Ethereum holdings likely exceed the amount listed above. His non-Ethereum-related holdings are as follows: Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), and Zcash (ZEC), worth less than 10 percent of his total ETH holdings. His ERC20 and other Ethereum-related holdings are as follows: Kyber Network (KNC), Maker (MKR), OmiseGO (OMG), and Augur (REP), worth less than 10 percent of his ETH holdings.

Vitalik Buterin did not disclose a large number of airdrop tokens (similar to spam mail, these are coins given out to holders of certain cryptocurrencies as a marketing tool). Buterin’s tokens received via airdrop are worth more than $2,000 at current prices. Based on an Etherscan of Buterin’s main wallet, his OmiseGO holdings total $40,000 at current prices. In another wallet that is also likely Buterin’s, there are holdings of $693,000 in Maker, $625,000 in Augur (Reputation), another $25,000 in OmiseGO, $25,000 in Kyber Network, and $11,000 in Trustcoin. The addresses of Buterin’s wallets were not disclosed in the statement, so the real figures may differ.

Corporate Investments and Equity

Buterin also has “significant” corporate shareholdings in two corporations, Clearmatics and StarkWare. Clearmatics is a software and blockchain research and development company, stating that its

mission is to:

“Build peer-to-peer infrastructure for a machine-driven future that is resistant to the monopoly-making tendencies of network effects inherent in today’s client-server architectures.”

Based on information from Crunchbase, Clearmatics was founded by Robert Sams and Vitalik Buterin and raised funding of $13.3 million. Understandably, the company has close ties to the Ethereum Foundation and is a member of the Ethereum Enterprise Alliance.

StarkWare Industries Ltd. is a software company that is attempting to solve the scalability and privacy issues around blockchains, which are “inherent problems,” according to the startup. The company raised $36 million according to Crunchbase. Buterin did not disclose the exact amounts invested, nor is it clear how much equity he holds in either company.

Other Compensation and Potential Conflicts of Interest

Buterin also mentioned that he receives a salary from the Ethereum Foundation. He did not state his current salary, but in 2016 he commented that he was receiving $150,000 per year. That said, this number could have changed since then. Finally, Buterin talked about his “non-financial” interests, including “friends in the ecosystem” represented by the previously mentioned projects and cryptocurrencies as well as ecosystem organizations including L4, Plasma Group, EthGlobal, EDCON, and some professional “cryptography and economics circles.” Overall, Buterin supports greater transparency from other projects and leaders in the Ethereum community,

stating:

“I’d definitely support more people actively involved in protocol decision-making making such statements!”

These comments by Vitalik Buterin iterate his commitment to transparency and his conviction towards building the Ethereum ecosystem. Hopefully, other ICOs and blockchain projects will follow his example.

Article Produced By

Mitchell Moos
Editorial Manager at CryptoSlate

The author of this article is invested and/or has an interest in one or more assets discussed in this post. Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

https://cryptoslate.com/vitalik-buterin-discloses-his-cryptocurrency-holdings-corporate-investments-and-other-potential-conflicts-of-interest/

CEO of Japanese Finance Giant SBI Vests His Crypto Industry Hopes in Ripple and R3

CEO of Japanese Finance Giant SBI Vests His Crypto Industry Hopes in Ripple and R3

             

Yoshitaka Kitao, CEO and representative director of Japanese financial services

giant SBI Holdings, has singled out Ripple (XRP) and blockchain consortium R3 as reasons to remain optimistic about the future of the crypto industry — bear market notwithstanding. Kitao made his remarks during an interview with Japanese crypto news outlet Coin Post on Feb. 18. SBI Holdings is an active partner of Ripple via their joint venture, “SBI Ripple Asia,” established to promote the use of XRP in Asian financial markets back in 2016.

In his interview with Coin Post, Kitao underscored that the protracted crypto market slump is not to be thought of as an end to the industry, and that SBI has been working intensively to foster the adoption of XRP among financial institutions. He affirmed that the real demand for the asset’s use in cross-border remittances and settlement is already underway and will continue to burgeon— pointing to Santander’s use of Ripple’s blockchain-powered xCurrent and RippleNet platforms for international payments as an exemplary, high-profile case.

Aside from predicting that Ripple’s still-fledgling market capitalization would eventually grow to be a global standard, Kitao also made positive remarks in relation to enterprise blockchain consortium R3 — of which SBI is a member, as well as reportedly being the largest outside shareholder — as well as the R3 Corda settlement platform.

Alluding to the now-resolved legal disputes between R3 and Ripple, Kitao said he had encouraged the two former ostensible rivals”to cooperate on a joint venture, and was bullish on the potential impact of “Corda Settler” — R3’s universal payment settlement platform, which unveiled XRP as its first supported crypto in December. Among the rest of his wide-ranging remarks, Kitao said he judged the “temperature of institutional investors [in regard to crypto] to be extremely hot,” noting that surveillance and real-time data on the crypto markets are improving, as well as clearing services.

Kitao said he hoped that Japan would spearhead cryptocurrency regulation and act proactively ahead of other global markets, such as the United States. He noted that SBI was awaiting more legislative clarity from the Japan’s watchdog, the Financial Services Agency, before launching its own crypto fund for institutional investors. As previously reported, the past couple of years have seen SBI pursue multiple ventures in the crypto sector, including its own exchange — VCTRADE — alongside a series of investments in businesses developing crypto infrastructure and services. It also has its own blockchain initiative S coin platform, which it trialed for retail payments in September 2018, integrating R3 Corda technology.

In January, SBI published its nine-month financial report, which identified the implementation of R3 and Ripple technologies as a major part of its strategy. In October 2018, SBI and Ripple’s XRP-powered payments app, MoneyTap, went live for account holders at selected Japanese banks — with the eventual ambition of including a consortium of 61 institutions (representing over 80 percent of all of Japan’s banking assets) in the service.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/sec-charges-ico-with-selling-unregistered-securities-after-startup-self-reports

Ethereum’s Vitalik Buterin Discloses Non-ETH Crypto Holdings and Other Revenue Sources

Ethereum’s Vitalik Buterin Discloses Non-ETH Crypto Holdings and Other Revenue Sources

             

Ethereum (ETH) co-founder Vitalik Buterin has disclosed

that his crypto investments are virtually exclusively devoted to the Ethereum network, in a post published to an “Ask Me Anything” (AMA) Reddit thread on Feb. 18. The AMA post is dedicated the Ethereum leadership and accountability, asking those in leadership positions in the ETH community to share their possible conflicts of interest. In Buterin’s summary, his total holdings of non-Ethereum ecosystem tokens — comprising Bitcoin Cash (BCH), Bitcoin (BTC), Dogecoin (DOGE) and Zcash (ZEC) — account for less than 10 percent of the value of his Ethereum holdings.

A further set of non-ETH Ethereum ecosystem tokens — comprised of Kyber (KNC), OmiseGo (OMG), Maker (MKR), (OMG) and Augur (REP) — are similarly reportedly collectively worth less than 10 percent of Buterin’s Ethereum (ETH) holdings. Buterin also disclosed on the AMA that he has “significant corporate shareholdings” in blockchain research and development firm Clearmatics, as well as in scalability- and privacy-focused blockchain startup Starkware. The latter notably develops cryptographic technology such as zero-knowledge proofs, of which Buterin is a vocal proponent.

Aside from this, Buterin revealed his external revenue over the past 12 months — aside from the Ethereum Foundation — was accounted for by his advisory role for the tokens disclosed in his holdings. Vitalik also discussed his non-financial involvement in other blockchain projects — including the ecosystems for the aforementioned tokens — as well as several non-token-based Ethereum-related organizations; such as L4, Plasma Group, EthGlobal and EDCON.

He is also reportedly involved in several non-token-based and non-Ethereum organizations — “mainly professional cryptography and economics circles” — which he didn’t specify. As reported, Vitalik has recently been engaged in an Ethereum developers’ discussion in regard to a new smart contract creation feature set to be released in the forthcoming Constantinople hard fork. Some community members had voiced their concerns that the feature could have negative security implications, which Buterin refuted, while emphasizing the need to evolve the feature in question with a longer roadmap in view.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/ethereums-vitalik-buterin-discloses-non-eth-crypto-holdings-and-other-revenue-sources

Indonesia’s Commodity Futures Regulator Releases Regulation for Crypto Futures Market

Indonesia’s Commodity Futures Regulator Releases Regulation for Crypto Futures Market

              

Indonesia’s commodity futures regulator has established

a legal framework for operating crypto and digital assets futures markets, according to an official press release published on Feb. 18. The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), which operates under Indonesia’s Ministry of Trade, has officially required multiple entities involved in crypto futures trading to seek regulatory approval and apply for registration before legally operating in Indonesia. The news follows the recent release of legislation that officially recognizes Bitcoin (BTC) and other digital assets as trading commodities. The Bappebti first greenlighted crypto trading as a commodity on Indonesian stock exchanges back in June 2018.

The new regulatory framework is based on a number of major rules for futures market operations, including regulation on the adoption of crypto as a tradable commodity on futures exchange markets, as well as technical provisions for placing crypto futures contracts on exchanges. The new rules require both futures exchanges and clearing houses that offer crypto futures trading to pay at least 1.5 trillion Indonesian rupiahs (IDR) or $106 million, as well as maintain a closing capital balance of at least 1.2 trillion IDR ($85 million), according to international law-focused media agency Lexology.

The rules also affect crypto futures traders and storage service providers, requiring both to maintain at least 1 trillion IDR ($71 million) and a minimum closing balance of 800 billion IDR ($57 million) before they can become officially approved to trade crypto futures. The regulation demands crypto futures exchanges to ensure compliance with security policies, requiring at least three staff members to be acquire Certified Information System Security Professionals (CISSP) certification. The entities should undergo risk management procedures, including compliance with Anti-Money Laundering (AML) and combating terrorism financing policies.

The new regulation was established in order to provide legal certainty around the crypto futures trading field, as well as to protect investors, as Head of Bappepti Indrasari Wisnu Wardhana stated, stressing that commodities futures trading intends to provide the ecosystem with support in the development of digital innovative business models. While the latest document confirms crypto as being an officially accepted tradable commodity on the futures market, Bitcoin still remains banned from being used as payment in Indonesia, following a ban imposed in 2017 by Indonesia’s central bank. According to Lexology, the regulation stressed that the new regulatory scheme cannot be applied to initial coin offerings (ICOs).

Recently, Indonesia’s crypto trading volumes have surged significantly, with Bitcoin trading volumes reaching around $730,000 on peer-to-peer (P2P) exchange LocalBitcoins during the week ending Feb. 16, according to data from Coin.Dance. Recently, Cointelegraph reported that crypto traders have negatively assessed the Indonesian regulators’ decision to set a capital requirement of $70 million in order to launch futures trading. Oscar Darmawan, CEO of local crypto exchange Indodax, recently told Reuters that the sums required are even bigger than the cost of opening a rural bank.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/indonesias-commodity-futures-regulator-releases-regulation-for-crypto-futures-market

China: New Guidance to Implement Blockchain in Agriculture Finance Sector

China: New Guidance to Implement Blockchain in Agriculture Finance Sector

              China: New Guidance to Implement Blockchain in Agriculture Finance Sector

The Chinese government has issued

the “Guiding Opinions on Rural Service Revitalization of Financial Services,” according to an official announcement on Feb. 11. The new framework is part of a plan to improve the efficiency of financial services for the country’s rural revitalization program.

The guidance will purportedly help promote the application of new technologies in the rural financial sector, such as blockchain, to “improve the identification, monitoring, early warning, and disposal levels of agricultural credit risks.” The Guiding Opinions were jointly issued by the People's Bank of China, the Banking Regulatory Commission, the China Securities Regulatory Commission, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs.

Applying blockchain in agriculture finance will purportedly streamline the collection and sharing of of agricultural data. Blockchain-based customer screening is expected to improve the credit evaluation model of agricultural businesses, increasing the number of loans issued while decreasing risk to creditors. The announcement also predicts that new technologies will encourage financial institutions to “develop exclusive loans products and small payment settlement functions for rural e-commerce and to open up a rural e-commerce capital chain.”

China’s foray to apply blockchain in various industries also extends to copyright protection services in their media outlets. In December 2018, the China Financial Media Copyright Protection Alliance — which consists of more than 30 financial media outlets — announced that it will use blockchain technology to develop copyright cooperation in the industry. Overall, China is a world leader in applying blockchain technology to various industries. In 2017, China filed more patents for blockchain applications with the World Intellectual Property Organization (WIPO) than any other country. Well over half of the 406 patents filed with the WIPO that year were from China, with 225. China was followed by the United States, at 91, and Australia, with 13.

Article Produced By
Miranda Karanfili

Miranda is a journalist based out of New York City. She is a dedicated writer, passionate about storyelling and making voices heard through her writing. She has joined Cointelegraph as a News Editor.

https://cointelegraph.com/news/china-new-guidance-to-implement-blockchain-in-agriculture-finance-sector

Major Crypto Brokerage Coinmama Reports 450,000 Users Affected by Data Breach

Major Crypto Brokerage Coinmama Reports 450,000 Users Affected by Data Breach

             

Israel-based crypto brokerage Coinmama

— which allows users to purchase Bitcoin (BTC) and Ethereum (ETH) using a credit card — has suffered a major data breach affecting 450,000 of its users. The incident was disclosed in an official company announcement on Feb. 15. The breach is reportedly part of a mammoth, multi-platform hack that affected 24 companies and a total of 747 million records — among them gaming, travel booking and streaming sites. Coinmama says a list of around “450,000 email addresses and hashed passwords” of users who registered on its platform before Aug. 5, 2017 have been posted on

a dark web registry:

“As of February 15, 2019, there has been no evidence of this data being used by perpetrators. Given the dated nature of the published data, we have no reason to suspect that any other Coinmama systems are compromised. Coinmama does not store credit card information.”

Aside from immediately notifying users, Coinmama says its response team is requiring all potentially affected users to reset their passwords upon login, as well as monitoring its array of systems for suspicious activity or unauthorized access. The platform says it is working to enhance its safeguards and track any external signals that the compromised data is being used.

Aside from new password requirements for potential victims of the hack, the site requests all users to ensure their passwords are robust and unique, and to avoid opening emails or attachments from unknown senders, or providing any personal data to any third party sites. Although the data breach impacted not only Coinmama, but a gamut of companies outside the crypto sector, the hack represents the second high-profile system compromise in the industry this year.

On Jan. 15, tens of thousands of Ethereum (ETH) wallets hosted by New Zealand crypto exchange Cryptopia were hacked, leading to losses estimated to be worth up to $23 million — with the breach continuing for a couple of weeks after the incident’s detection. A recent report from New York-based blockchain intelligence firm Chainalysis estimated that two — likely still active — organized hacker groups have reportedly stolen $1 billion in cryptocurrency, accounting for the majority of funds lost in crypto-related scams.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/major-crypto-brokerage-coinmama-reports-450-000-users-affected-by-data-breach

 

ErisX to CFTC: Regulated ETH Futures Would Result in More Robust, Liquid Market

ErisX to CFTC: Regulated ETH Futures Would Result in More Robust, Liquid Market

               

Chicago-based crypto exchange ErisX

has filed a comment letter with the United States Commodity Futures Trading Commission (CFTC) in response to the agency’s request for feedback on Ethereum (ETH)’s mechanics and market. The letter, submitted on Feb. 15, sets forth the exchange’s belief that “the introduction of a regulated futures contract on Ether would have a positive impact on the growth and maturation of the market.” As reported, ErisX is a reboot of traditional futures market Eris Exchange, and is expected to begin support for spot trading in Bitcoin (BTC), Ethereum and Litecoin (LTC), as well as futures contracts, in the second half of 2019, pending regulatory’ approval.

The letter argues that “listing and trading Ether futures compliantly on CFTC regulated markets is consistent” with the CFTC’s efforts to foster “open, transparent, competitive, and financially sound derivative trading markets [and] to prohibit fraud, manipulation, and abusive practices in connection with derivatives and other products subject to the [Commodity Exchange Act] CEA.” The CFTC has long determined that Bitcoin is a commodity, given that it aspires to replace sovereign currencies — rather than a security, which would bring it under the Securities and Exchange Commission (SEC)’s charge. After significant debate, Ether too was cleared of a securities classification in June 2018.

In its letter, ErisX outlines the conceptual distinction between Ethereum and its predecessor, noting that “Ethereum built upon some of the architectural principles of Bitcoin to extend [its] functionality of [a] distributed, (crypto-economically) secured, (blockchain-based) record-keeping system to include new computational capabilities for the execution of arbitrary code.”

In its diagnosis of the current state of the Ethereum market, the exchange affirms its view that a lack of regulatory clarity has prevented regulated enterprises from entering the sector, resulting in a preponderance of “unregulated or lightly regulated ‘exchanges’ [and] ‘brokers’ [emerging] to fill the gap, many of them off-shore.” The associated risks — including price volatility and liquidity fluctuations —

are therefore:

“Not unique to Ether, but [may be exacerbated by] the current fragmented global market structure of trading platforms and ‘exchanges’ with significantly varying degrees of regulatory oversight and operational transparency and integrity.”

ErisX thus contends that standardized, CFTC-regulated ETH products would draw broader participation from institutional actors and commercial users, resulting in “more robust, liquid, and resilient markets,” better risk management and more efficient, accurate price discovery. As reported, ErisX has this month appointed three veterans from Barclays, YouYube and the Chicago Board Options Exchange to fill executive roles, having announced the appointment of ConsenSys’ Joseph Lubin to its board of directors in January.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/erisx-to-cftc-regulated-eth-futures-would-result-in-more-robust-liquid-market

Listing With IDEX Signals Step Forward for Ride-Hailing Company

Listing With IDEX Signals Step Forward for Ride-Hailing Company

         

IDEX, the only Ethereum-based, fully decentralized crypto exchange

with real-time trading and high transaction throughput has announced the listing of RedCab LLC’s REDC token. RedCab, a decentralized peer-to-peer transportation solution entirely powered by blockchain technology, announced the listing this week with the Panama-based exchange.

IDEX is recognized as the most advanced Ethereum DEX in the industry, supporting limit and market orders, gas-free cancels and also the ability to fill many trades at once. Consisting of a smart contract, trading engine and a transaction processing arbiter, the smart contract is charged with trustlessly storing all assets and also with executing trade settlement, while all trades must be authorized by the users private key. RedCab has ambitious plans to expand beyond its native Egypt into Bahrain, the KSA, as well as Asian and European markets.

At this stage, almost everyone has heard of, and possibly even tried out, some of the larger ride-hailing companies on the market, such as Uber, Lyft and Grab, but few know the way those companies go about running their business. A 25 percent profit is made through each driver, which makes it difficult for those working for those companies to earn a respectable living. With a 15 percent profit cut, RedCab provides drivers with a higher percentage of take-home pay, and have a distinct focus on community, providing users with an entirely different experience than those who use Uber.

One question on many readers minds is likely to be “Why RedCab?” According to the company itself, “Many start-ups have been rising in the market recently to solve the transportation issue. Most of them are successful as a business, but none of them have succeeded without social collateral damage.

“Despite the fact that technology has bridged the gap for transportation needs and has successfully solved some problems in the past ten years, this left us with multiple copycat business models without any iteration or innovation.” One pet peeve that many have with Uber is the spike in fares when certain conditions occur, such as rain and heavy traffic. “Customers are not only searching for a trendy service, but looking for a true reliable service with sustainable quality and safety, that offers all transportation options and services with a low competitive price, and because customers hate to be abused; so on a rainy day, or a day with heavy traffic; “high rates” fare is not a good move.”

RedCab seem able and willing to provide drivers with more tangible benefits than we’ve yet seen in this industry; “Based on a recent survey conducted on drivers working as part-time for one of the major car-hailing services app, 91% of the population have joined the hailing service apps to increase their income and 87% to work flexible shifts.  Our business model guarantees a 20% increase in the income of drivers with a clear strategy to capitalize on the network dominance where the time of the people who chose to partner with us and drive is managed more efficiently.” The listing with IDEX is yet another step forward for this company that is looking to take the industry in a new, more community-based direction.

Article Produced By
Bob Keith

Chronic crypto nut and freelance writer/editor for longer than I care to remember. Have finally found a home here at Crypto Disrupt.

https://cryptodisrupt.com/listing-with-idex-signals-step-forward-for-ride-hailing-company/

Morgan Creek’s Venture Fund Raised $40 Million to Invest in Blockchain and Cryptocurrency

Morgan Creek’s Venture Fund Raised $40 Million to Invest in Blockchain and Cryptocurrency

             

Morgan Creek Digital Assets announced today

that it has successfully closed a $40 million venture fund that will invest in blockchain and cryptocurrency. Morgan Creek Digital Assets (MCDA) is an alternative asset management firm founded by Anthony Pompliano, Mark Yusko, and Jason Williams. The fund is an affiliate of multi-billion dollar asset manager Morgan Creek Capital Management.

According to a Tuesday press release, MCDA closed a $40 million fund targetting blockchain and cryptocurrency. The fund originally had a target of $25 million but was oversubscribed, raising a total of $40 million. Previously, MCDA has made equity investments in companies such as Coinbase, Bakkt, BlockFi, and RealBlocks. The firm is also likely to invest in cryptocurrency and other digital assets, as seen previously in its Digital Asset Index Fund. The index is comprised of Bitcoin, Ethereum, Litecoin, EOS, and Bitcoin Cash with smaller positions in five other coins.

Morgan Creek Digital’s recent raise was supported by two public pensions, a university endowment, a hospital system, and an insurance company, according to the press release from the company. Pompliano told CryptoSlate that “I believe this is the first public pension money in crypto,” suggesting that more conservative pensions are starting to take notice of blockchain and cryptocurrency as an investment vehicle.

Meanwhile, Mark Yusko, partner and co-founder of the fund said:

“We are proud to partner with these investment professionals who have shown an ability to be forward-thinking and innovative.”

Jason Williams, the other co-founder stated:

“The blockchain industry is seeing an incredible influx of highly-talented individuals and entrepreneurs. We believe many of the largest, most valuable companies of tomorrow will be built using this technology.”

In another statement from Pompliano on Twitter, he said “the institutions aren’t coming. They’re already here,” suggesting that institutions are already looking to get involved in the sector.

Article Produced By
Mitchell Moos

Editorial Manager at CryptoSlate

Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

https://cryptoslate.com/morgan-creeks-venture-fund-raised-40-million-invest-blockchain-cryptocurrency/

‘Swiss Leaks’ HSBC Whistleblower Plans to Launch ‘Clean, Ethical’ Crypto Token

‘Swiss Leaks’ HSBC Whistleblower Plans to Launch ‘Clean, Ethical’ Crypto Token

               

Frenchman Hervé Falciani, a whistleblower who has been convicted

of the largest leak in banking history, plans to launch an ethical cryptocurrency that would combat money-laundering and fraud, Reuters reported on Feb. 8. In 2015, Falciani was convicted in absentia by Swiss courts for aggravated financial espionage after leaking the details of ~30,000 accounts, holding almost $120 billion in assets at HSBC’s Swiss private bank.

The evidence — which was alleged to have exposed a web of clients’ tax evasion, money laundering, and illicit financing schemes — has since triggered investigations and prosecutions in several countries, and Falciani remains in self-imposed exile in Spain after the country twice denied the Swiss authorities’ extradition requests.

He is now reportedly working on developing an ethical crypto token, dubbed “Tabu,” that would be fully traceable and thwart illicit dealings and tax evasion. The project is being spearheaded by Falciani’s non-profit Tactical Whistleblowers, whose team consists of Spanish academics — many of them mathematicians — and fintech experts. Speaking in Madrid under a witness protection program,

he told Reuters:

“What happens with any innovation […] is that it can be used in a bad way or maybe used in a friendly way with a […] positive social impact […] Fake information is the basis of any kind of fraud … [t]he same way that we have to deal with fake news, the same technology can applied to fake invoices.”

Falciani credits Spain’s second extradition request denial last year — a decade since he first leaked the “Falciani List” — with having drawn significant investor interest in the Tabu project. Having raised 1.3 million euros ($1.5 million), Falciani reportedly aims to raise a further 2 million euros ($2.3 million) pending approval from Spanish regulators. There are reportedly 5 million Tabu tokens, valued at 2 million euros, ready for the offering.

Aside from Tabu, the whistleblower is also preparing a blockchain system — dubbed “Aletheia,” meaning “disclosure” in Greek — to cross-check electronic procurement contracts for public administrations. The project aims to mitigate fraud and make efficiency gains to reduce costs. Cryptocurrency’s relationship with one of the decade’s most high-profile whistleblowers — Julian Assange —is well known. In fall 2017, Assange went so far as to publicly thank the United States government on Twitter for forcing the organization to rely on Bitcoin (BTC) due to the banking embargo, securing for WikiLeaks a 50,000 percent return.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/swiss-leaks-hsbc-whistleblower-plans-to-launch-clean-ethical-crypto-token