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Billionaire John De Mol Takes Facebook to Court Over Fraudulent Bitcoin Ads

John de Mol, a Dutch billionaire and media magnate, has recently sued Facebook over fraudulent bitcoin ads that showed him next to quotes about how much money he purportedly made investing in BTC with a company that was swindling users.

According to Reuters, De Mol’s lawyer has claimed the businessman, who created the reality show ‘Big Brother’ and is one of brains behind the Endemol entertainment studio, is suing the social media giant over damages to his client’s reputation, and over Facebook’s inability to stop the ads from appearing altogether.

De Mol’s lawyers would, as such, like to see Facebook automatically block ads featuring him and cryptocurrencies. The businessman’s lawyer further claimed consumers sent a total of €1.7 million (around $1.9 million) to the scammers, before Facebook reacted to complaints and removed the ads from its platform.

De Mol is also looking to get the names of those behind the fraudulent bitcoin ads, so he can hand them over to authorities. Jacqueline Schapp, one of his lawyers, argued that Facebook’s system of reacting to users reporting problems isn’t good enough.

I don’t know what reality Facebook lives in, but that doesn’t work.

Facebook’s lawyer, Jens van den Brink, revealed the company couldn’t be forced to monitor every ad that goes through it all the time, and that it’s “technically impossible” to block ads with De Mol’s name on it, as other people have the same name.

Van den Brink also added Facebook has met with Dutch financial market regulator AFM this month to discuss ways to combat scammers on its platform. It’s worth noting that Facebook banned cryptocurrency-related ads last year to stop them, but later on lifted the ban.

A judge at the Amsterdam District Court gave both parties two weeks to come up with a reasonable solution. If they fail to reach an agreement, the judge noted he would rule on the case.

This isn’t the first time celebrities are used to get users to buy into fraudulent cryptocurrency schemes through Facebook’s ads.

Source: CryptoGlobe

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Local Bitcoins Removes Cash-for-Crypto Trading Option

Helsinki-based peer-to-peer exchange LocalBitcoins has reportedly removed the option allowing users to buy or sell cryptocurrencies in person for cash.

In a Reddit post Sunday, a LocalBitcoins user pointed out the option was no longer available on the platform, though commenters some suggested the restriction might be limited to the U.S..

The removal of the option – which basically acts as a matchmaker for users to make trades in person – effectively bars LocalBitcoin users from selling and buying bitcoin for cash. LocalBitcoins has also cancelled pending fiat trades, other comments suggest.

The platform has not yet made an official announcement about the change on its blog or Twitter.

In response to the move, LocalEthereum announced has temporarily removed the trading fee on cash-in-person exchanges – effective June 1 to July 1.

LocalBitcoins’ move comes after the company announced in February that it would comply with the European Union’s (EU) new anti-money laundering directive.

Several other P2P cryptocurrency trading platforms still offer an in-person cash option.

Handing over dollars image via Shutterstock

Source: Pivot – Blockchain Community

Enjin Coin Price Gains Another 20% as Bullish Momentum Returns

Due to all of the rather uneasy cryptocurrency market momentum in place right now, it remains to be seen how things will unfold over the next few hours and days. While there is some excitement in certain markets, the top currencies are rather disappointing right now. The Enjin Coin price, which recently saw a major value surge, is still going strong as of right now. Enjin Coin Price Resumes its Uptrend.No one will be too surprised to note some altcoins succeed in noting strong gains whereas the majority of the top coins are struggling. While projects such as Enjin Coinwould certainly benefit from bullish Bitcoin price momentum, it seems they can effectively move on their own as well. That is part of what cryptocurrency so interesting right now, as one never knows where the next batch of profits might come from……

Source: Enjin Coin Price Gains Another 20% as Bullish Momentum Returns

Tether’s U.S. Dollar Peg Is No Longer Credible

USDT is the foremost stablecoin in the crypto world. Pegged one for one to the U.S. dollar, it is widely used as a vehicle for getting dollars in and out of crypto exchanges. Crypto enthusiasts will tell you that holding USDT (“Tethers”) is the same as holding dollars. But now, Tether, the issuer of USDT, has now admitted that Tethers are not 100% backed by actual dollars. The peg is no longer credible. And Tether itself has morphed into something all too familiar.

BANGKOK, THAILAND – 2018/08/30: A smartphone displays the Tether market value on the stock exchange via The Crypto App. (Photo by Guillaume Payen/SOPA Images/LightRocket via Getty Images)Getty

Here’s how Tether’s claim of 100% actual currency backing has changed during the coin’s existence. This is what their website originally said:

@CasPiancey

There has never been a “professional audit” of the reserves. After lots of people pointed this out, the wording on the website subtly changed:

Tether drops “professional audits” claim@CasPiancey

Lots of people questioned the “professional verifications”, too. So Tether simply removed all reference to them. It still retained the claim to 100% currency reserves, though:

Tether drops “professional verifications” claim@CasPiancey

But the rumors persisted. And now, it seems, they were justified. This is what Tether’s website now says:

Tether drops “100% currency reserves” claim@CasPiancey

So Tether does not have 100% traditional currency backing for its reserves. It has “cash equivalents,” which are presumably other cryptocurrencies (like pegging to a volatile asset is such a good way of ensuring stability). And some of its “reserves” are held in the form of loans that it has made to other parties. Tether has become an unregulated fractional reserve bank.

It’s a very risky fractional reserve bank, too. Loans that you can’t sell, can’t pledge for cash, and may or may not be able to call are not by any stretch of the imagination “reserves.” No regulator would let a licensed bank get away with this, even though licensed banks have Fed backing and FDIC insurance. Tether may regard one USDT as the same as one U.S. dollar, but without either the reserves or the central bank backing to guarantee this, its words are empty. The Fed isn’t going to step in and bail it out.

Remarkably, though, crypto markets still believe Tether’s guarantee:

Tether vs USD, BTCCoinmarketcap

Perhaps crypto enthusiasts should read up on the fate of Reserve Primary Fund in 2008. Or perhaps Venezuela. After all, an exchange rate peg only holds until the reserves run out…

The crypto world has taken another large step towards becoming a simulacrum of the existing financial system without any of its (admittedly inadequate) safeguards. This is supposed to be progress?

 

Source: Tether’s U.S. Dollar Peg Is No Longer Credible

Argentina and Paraguay Settle Export Deal in Bitcoin in Landmark Event

Paraguay has reportedly recently paid for an Argentinian shipment worth little over $7,000 in bitcoin, the flagship cryptocurrency, in an apparent first for both countries. The deal was made as part of new program incentivizing small shipments. According to Cointelegraph en Español, Argentina sold Paraguay pesticides and fumigation products, and paid for the products in BTC, which was then converted to Argentina’s fiat currency, the peso, to pay the agricultural chemicals’ exporter.

Source: https://www.cryptoglobe.com/latest/2019/02/argentina-and-paraguay-settle-export-deal-in-bitcoin-in-landmark-event/

New York to Have First Crypto Task Force – NullTX

Recently, New York State became the first state in the nation to create a cryptocurrency task force to study how to properly regulate, define and use cryptocurrency. Last week, NYS Governor Andrew Cuomo, signed into law THE DIGITAL CURRENCY STUDY BILL, A8783B/S9013. The members of the task force, appointed by the Governor, Senate and Assembly, are to submit reports by December 15, 2020. The members will include stakeholders such as, technologists, consumers, institutional and small investors, large and small blockchain enterprises and academics. The group shall report on digital currency, cryptocurrency and blockchain technology.

Source: New York to Have First Crypto Task Force – NullTX

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