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Bitcoin Price Watch: Currency Sits at $6,700

At press time, nothing has changed regarding the bitcoin price. The father of cryptocurrencies is sitting at $6,700 – a price it has held for roughly 24 hours, and recovery doesn’t appear imminent anytime soon.

The mega-drop that hit the asset during yesterday’s morning hours stem from two likely sources. The first is the hack of South Korean digital exchange Coinrail, which is not one of the country’s largest cryptocurrency platforms, but still ranks amongst the top 90 across the globe.

During the morning of June 10, Coinrail executives released the following statement on the company’s website:

“Seventy percent of total coin and token reserves have been confirmed to be safely stored and moved to a cold wallet [not connected to the internet]. Two-thirds of stolen cryptocurrencies were withdrawn or frozen in partnership with related exchanges and coin companies. For the rest, we are looking at it with an investigative agency, related exchanges and coin developers.”

Coinrail alleged that most of the cryptocurrencies it was housing were placed in a secure wallet. Unfortunately, the thieves still managed to get away with over $40 million worth of assorted tokens, and bitcoin – along with several other forms of cryptocurrency such as Ethereum, Ripple, bitcoin cash and EOS – all lost approximately five percent or more of their respective values.

The next big hit came by way of the Commodity Futures Trading Commission (CFTC). The organization is now opening a probe into bitcoin price manipulation, and is asking four major exchanges for bitcoin futures trading data from January 2018 and on. The exchanges – which at press time are Coinbase, itBit, Kraken and Bitstamp – are refusing to cooperate with the request, explaining that submitting such information would hurt their customers’ privacy.

Following the announcement, bitcoin tanked hard, falling from $7,300 to $6,700 in just 30 minutes, and all major digital assets are trapped in the red.

Securities and Exchange Commission (SEC) chairman Jay Clayton also warned against the selling and trading of any unregulated cryptocurrencies:

“I caution against promoting or touting the offer and sale of coins without first determining whether the securities laws apply to those actions. Selling securities generally requires a license, and experience shows that excessive touting in thinly-traded and volatile markets can be an indicator of ‘scalping,’ pump-and-dump, and other manipulations and frauds.”

At press time, bitcoin is now being hit with another negative move as computer king Apple recently announced at the Worldwide Developer Conference that all iPads and iPhones could no longer be used to mine cryptocurrencies. As stated by Apple Insider, the new rule explains that “apps, including any third-party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining.”

The move comes after a wave of recent backlash against bitcoin by major internet companies such as Facebook, Google and Twitter, all of which have recently banned crypto and ICO-related advertisements on their platforms. As bitcoin’s price continues to plummet, it is continuing to garner mistrust from major institutional players, and Apple is just the latest mega-player to strike against the digital asset space.

Charts by TradingView

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US Investor Files Lawsuit Against AT&T Over Cryptocurrency Theft

A U.S.-based cryptocurrency investor and entrepreneur has filed a multi-million-dollar lawsuit against telecommunications firm AT&T. Michael Terpin believes that he became the victim of a theft in which a large amount of digital currency was taken from him due to the company’s negligence. Terpin Believes He Was the Victim of a SIM Swap Fraud Michael Terpin has brought legal action against the U.S. telecommunications provider AT&T. The investor and early cryptocurrency advocate filed a 69-page complaint with the U.S. District Court in Los Angeles. During the document, Terpin claims that a large number of digital coins and tokens were stolen from him on January 7, 2018. It goes on to state that AT&T are guilty of gross negligence and fraud, which resulted in the loss of a substantial amount of cryptocurrency. According to Reuters, AT&T responded via email to the complaint by stating: “We dispute these allegations and look forward to presenting our case in court.” The filing claims that Terpin was the victim of a SIM swap fraud that was made possible by the negligence of AT&T. Such a scam involves fraudsters convincing a mobile phone provider to switch a user’s phone number to another SIM card which is under their control. Scammers can then use the number to reset login information for various accounts, allowing them to access them. Michael Terpin is the co-founder of BitAngels – an early angel group for Bitcoin investors. He also helped to set up the first digital currency fund, the BitAngels/Dapps fund in 2014. Today, Terpin is one of the Alphabit Fund’s top advisers. According to the court documents, a total of three million digital tokens were taken from Terpin. Back in January, these were worth around $23.8 million collectively. The filing also states that Terpin is seeking an additional $200 million in punitive damages. Whatever the outcome of Terpin’s court case, it illustrates the dangers of keeping large amounts of digital assets anywhere but in properly secured cold storage. The precise details of the storage of Terpin’s tokens are not currently known. However, any solution which could be comprised by SIM swap fraud is evidently not secure enough. Terpin’s missing funds join the other $1.2 billion plus of cryptos stolen from poorly secured storage solutions since 2017. The case also highlighted a need for adequate custody services in the cryptocurrency industry. This is seen by many as one of the most important steps to opening cryptocurrencies to a wider group of investors. Many do not have the technical knowledge required to set up totally secure paper wallets. Others simply shirk the responsibility of being the sole participant responsible for the safety of their digital wealth. The industry is responding, however. Already this year, NewsBTC has reported on efforts by Circle, Coinbase, and Blockchain to facilitate secure storage for large net-worth individuals and institutions. Featured image from Shutterstock. The post US Investor Files Lawsuit Against AT&T Over Cryptocurrency Theft appeared first on NewsBTC.

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