Crypto In Dire Need Of Regulations

Fraudster who embezzled around $20 million from investors has been sentenced for six months in jail. Jerry JiGuo defrauding investors by offering them fake initial-coin offering scheme according to press release by US. Department-of-Justice.

Guo misrepresented himself as a crypto consultant and used to pitch them fraudulent initial coin offering. Additionally, he used to offer marketing and publicity services to the potential investors. Under the garb of offered services he used to extort money and cryptocurrencies from these investors and embezzled in that.

The fraudster was also sentenced three years supervised released and ordered to pay in restitution $43924636.14 reportedly.

Attorney David Anderson also gave his remarks about the crypto fraudster in the press release. He said that some criminals think crypto trade is beyond law enforcement’s reach. He added that this case clearly depicts that criminal forfeiture could be used to reimburse defrauded amount to the victims.

Other news is on Wednesday, that Bitcoin dropped below $30,000 once more in the struggle to keep above $30,000 mark. According to the charts, on Wednesday Bitcoin went as low as $29,241. However, later in the day it recovered some of its value and was valued at approximately $30,262 at day’s end.

It has only been around 2-3 weeks when Bitcoin reached its all-time high and surged to around $41,900 apiece.

AntoniTrenchev, managing partner at Nexo said that some decline was expected after such bullish surges in Bitcoin. He believed that the volatility will remain high in the time to come and it is expected too. He said holding the $30,000 mark is a huge success, but even it goes below its not bad for Bitcoin. He further stated that if sunk below 30k mark, Bitcoin may decline to $25,000 or even $20,000 mark its good. Bitcoin surviving above $20,000 will still be in a bullish market he concluded.

JPMorgan in their recent statement have predicted a complete opposite view as of before. They saw that for Bitcoin to reach or cross $40,000 mark now be close to impossible. They believe that Bitcoin cannot surge above $40,000 again. Now this theory could be influenced by the growing interest in Ether and its upgraded network.

Whether it is Bitcoin or Ether or any other cryptocurrency, digital currency has established its position in the world. But to avoid or minimize fraudulent elements certain limitation and regulations are required to drafted and passed by world governments.

In the meantime, after the liquidation of Mirror Trading International (MTI), South-Africa’s Financial-Sector-Conduct-Authority (FSCA) is requesting more authority over cryptocurrency. Head of FSCA Brandon Topham said that we need the police to be working faster and efficiently to control fraud. He concluded that it is required because if fraud scheme evolves into ponzi scheme then they lose jurisdiction over matter.

Bitcoin and cryptocurrencies are required to be regulated to some extent to minimize the chances of fraud. But at the same time the regulations should be such that keeps the charm of the cryptocurrencies.

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