|0:02:22||Episode Title: The Binance Hack - A Dive Into Bitcoin Money Laundering||Episode number: XXX||Date: 08/9/19||Live Unedited Show Time Stamp||Post Live Show Time Stamps||EST. Segment Length|
|JW||TEASE: You guys ever wonder how Bitcoin money laundering works? What the big hub bub is when governments and internatinoal regulatory agencies talk about funding terrorism and money laundering? Tired of hearing the exact same thing from both statits and bitcoiners. Well let's talk some truth in today's exciting episode of Breaking Bitcoin.||0:02:57||0:00:00||10-15m|
|JW||Welcome to Breaking Bitcoin, recorded live Friday, August 9th 2019. Your daily source for market updates, sentiment, and news for traders.|
I am your host Justin Wise, Lead Analyst & Senior Mentor at CrackingCryptocurrency.com - Hope you're all doing well!
Shout out to everyone watching from across Youtube - Twitch - DLive - Facebook Live - and of course on Roku at the Investor News Channel app.
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If you are an aspiring trader or an experienced trader looking to sharpen your skills, and you want to work with a team with a proven track record who deal in the realm of probability, statistics, and verifiable edge, head over to premium dot crackingcryptocurrency dot com to see what the Premium Trading Group can do for you. Exclusive Setups and Trade Signals, the Pathways to Profit Strategy Building Course, Proprietary Indicators, Spreadsheets, and Tools as well as educational material and database library. Come join the fastest growing community of traders and investors, at premium dot cracking cryptocurrency dot com.
|ask for 5 stars ratings on itunes and other podcatchers please|
It's Not Just the Tools, It's The Rules!
|Mention Premium Trading Group Updates -|
|EOS Trading Competition - 60k, we've got a good solid team but if you are wanting to compete and can show me some results, get ahold of one of us in the Discord.|
|--Mention yesterday's comment winner:||Crypto Caveman|
|Cryptocurrency Market Analysis|
|--Tip random commenter from yesterday’s show.||Akshit Choudhary||0:05:10||0:02:13|
|Bitcoin Analysis and Strategy||Consolidation, lots of pop and chop. No clear signals on any TF's, reversal traders being rewarded but only those that have immacuate timing. Waiting for momentum and volume to confirm a break of this trading range. Otherwise you need to be on micro TF's to range trade it well. Even the 1HR is going to get you chopped.||0:06:37||0:03:40|
|Ethereum Analysis and Strategy|
I talked about establishing a full risk position on Ethereum to the downside. Expect continuation, however I am ok with a re-test of our base line, or a little rangy behavior before a more thorough break down.
|Litecoin Analysis and Strategy||All other alts/btc are in high beta, and continuing their downwards trend.||0:24:00||0:21:03|
|EOS Analysis and Strategy||See Ethereum Analysis, short.||0:28:00||0:25:03|
|BNB Analysis and Strategy||Dump eet.||0:28:39||0:25:42|
|XRP Analysis and Strategy||See Eos analysis, short.||0:28:25||0:25:28|
|As traders, selecting our exchange is one of the most important decisions we will make. I'm often asked as a profesisonal, what are the most important metrics when making this decision. My answer is always the same. The three major boxes that any exchange that I am considering must check are|
2. Ease of Use
3. Customer Service
The exchange that checks all of these boxes, that I use for trading Bitcoin Futures, is Bybit.
They are based out of Singapore, a country with some of the strictest financial regulation. Their platform is intuitive and simple to use, yet also has advanced order features for seasoned traders. Finally, their Customer Service live chat is in the corner of their main page, and on-demand support is a click away.
I've absolutely loved using this platform, and very much prefer it over the alternatives in this space.
If you would like to check out ByBit, you can visit bybit.crackingcryptocurreny.com and receive up to $60 from ByBit just to test their platform.
Again, that's bybit.crackingcryptocurrency.com
|Traditional Markets / Forex|
|JW||You can watch or listen to this discussion and more on Breaking Bitcoin, episode number ### at CrackingCryptocurrency.com. And remember to subscribe to our podcasts. Thanks for listening. We'll see you next time.|
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|JW||Binance Hack 2019 – A Deep Dive Into Money Laundering And Mixing|
|Another follow up to the Binance hack, this time, related to the missing 7,000btc, a loss that Binance incurred to the tune of 80 million dollars.|
According to a report by blockchain analysis firm Clain, the hackers have been attempting to launder their spoils using a mixer service, in this case, Chipmixer.
Analysis suggests the hackers went to work just a month after the May 2019 heist and 4,836 BTC has already been run through the tumbler.
Now, it is actually straight forward to track coins from such a large heist. It's just practically impossible to launder such a large volume of coins in a short period of time.
None of the washed BTC has apparently made it onto exchanges yet, suggesting hackers may not be done obfuscating the money trail yet.
In the process of this investigation of ChipMixer, Clain detected over 1032 BTC linked to the previous BitPoint exchange hack.
The matter highlights a seldom discussed issue in the BTC space, fungibility. Not all coins are equal; when chain analysis can reveal your coins history to be related to a crime or theft, they may be considered "marked" and less desirable or valuable to own.
This is a conversation that we need to have early on. Because one one hand, you have what I believe to be the correct moral argument, that all coins are created equal, and having BTC that may have been stolen at one point in time doesn't mean you do not have lawful ownership of it now. If someone steals someone's BTC, then buys a computer online, transferring the BTC to the vendor, and you work for that online vendor and get paid in BTC, your paycheck might have originated from stolen funds.
Chainalysis can track those stolen funds to you. Do you think it's right for you to have to forfeit your money that you received lawfully and morally, because it was originally someone else's?
We have to be aware of this, as governments will inevitably step up their Chainalsis and use it as forensic data to track criminal actviity.
I can easily see a world where because you had th ose funds, you get hauled in for questioning if your personal identity is in some way tied to your wallet address.
Which is easy to do, if that's an exchange account, where you've done KYC/AML, or if you purchased BTC to that address with a credit card, or used that BTC address to send payment for a good or service that you put your name or address to, it's easy to track you, especially for a government or hacker.
So it's important that we have the conversation, what are we going to do about this?
Obviously it makes sense from a law enforcement perspective, for those in the pursuit of stopping criminals, which is a good thing we want criminals to be stopped and punished and that requries investigation. So it makes sense for them to track the stolen funds and attempt to determine if you, who are now a holder of those stolen funds, were somehow involved.
But that's a huge breech of privacy, and a big inconvenience. And again, law enforcement is far from perfect. They're in the business of racking up numbers and prosecutions, some would argue not necessarily in stopping crime althought here are many good actors in the law enforcement world, it's not some evil tentacled monster of fascist cops running around.
But we do need to look at the real societal impact on this.
So what is the easy solution? Well, as I've said many times it's decentralization and privacy, which is another great benefit the lightning network provides to us.
Lightning transactions are far more private, far harder to track and trace, and far harder to tie to a personal identity.
So, it is incumbent upon us to just take oru digital privacy seriously. People need to be setting up their BTC addresses the right way, purchasing BTC privately, person to person, creating wallets that have no association with their personal information and that includes operating behind a VPN, that includes using burners, and that's a big inconvenience for some people, but privacy and security is largely considered an inconvenience, but when you get hacked or your personal data is tracked then you always wish you would have taken it more seriously.
Make it so that it's not an issue, by taking your personal privacy seriously.
|JW||FATF plans for global crypto monitoring system|
|Fifteen nations alongside the FATF (financial action task force) plan to setup a crypto monitoring system in order to collect and share personal data on individuals conducting cryptocurrency transactions. |
Their stated goal is to prevent funds from being laundered, going to terrorist orginizations, or otherwise being put to illicit use.
They paln to have detailed plans drawn up by 2020, with the system up and running a few years later.
Once in place, the system would be managed by the private sector.
This is absolutely fantastic, coming off the heels of the Binance KYC hack and leak that we've been reporting on.
The reality is, again, we're talking about correlating personal identities and people to crypto transactions.
Then we're talking about storing that data somewhere online, managed by the private sector. Creating yet another honey pot for hackers and malicious attackers.
Now, there is a chance they do this as best as they could, as I talkea about yesterday, only keeping personal data online long enough to verify it then moving it offline to an airgapped server.
But again, this is a huge security vulnerability. This is a honey pot for attackers.
And more than that, this is dangerous government oversight and control of the monetary system yet again.
A similar report from the ECB, regulators are recognizing the need for reliable on and off chain data, and are making plans to develop a robust in-house system to do so. What this spells is a future in which regulators will be operating their own nodes and performing their own chain analysis, in an effort identify and audit transactions on the blockchain.
We previously talked about the SEC beginning to run their own full nodes, for the exact same reason.
The entire global regulatory community is waking up to cryptocurrecy, and things are going to drastically change in the next five years.
The space has already changed so much, from the original small Bitcoin community.
But, as an investor and a trader, this actually is good news. It's not the best news for societal growth, but this is to be expected.
The problem is not overisght of the blockchain, it's government power. So we need to utilize Bitcoin in that aspect for what it was intended to be, a payment method and world currency to bypass government regulation. So we can fund dissenters, political activists, and support any cause that we want to.
So, more regulation typically means things will get safer, so if you guys want to stop seeing so many exchange hacks, measures like this will eventually mitigate much of that by requiring international standards for exchanges. Especially as it relates to KYC/AML, I've never heard of Oanda or TD Ameritrade getting hacked, and that's because their KYC/AML process is regulated and standardized.
Also, this means that governments will be forced to develop legislation on cryptocurrency, many countries have not, and with an international aim like what we're going to see, we're going to have clear guidance world-wide on the status of cryptocurrencies.
|JW||Litecoin (LTC) Acknowledged as Payment Token by IMF, Community Says It’s Unofficial||https://news.u.today/news/litecoin-ltc-acknowledged-as-payment-token-by-imf-community-says-its-unofficial||A co-founder of Litecoin, Xinxi Wang, has recently tweeted that the International Monetary Fund (IMF) has finally admitted Litecoin to be a payment token and actually approved of LTC.|
The data comes from the IMF report where Litecoin is called a digital method of payment. However, the LTC community has expressed its strong doubts.
The report comes from late October 2018 and for some reason the fact of the IMF ‘pleasing’ LTC by calling it means of payment has not been widely noticed until now.
In the comment thread, many express their joy and excitement about the news, sending congratulations to the Litecoin Foundation
The Litecoin Communtiy is in steep celebration today, after Twitter took to flooding the news that Litecoin has been declared a payment token by the International Monetary Fund. In their parlance, a payment token is a token to be used universally as units of account, stores of value, and means of payment.
However, in the report, which was released in October of 2018, it seems they're only using Litecoin as an example, while an official decleration from the IMF has not been forth coming. So put your party hats away guys, it's just an eg.
|Bitcoin Dominance Hits 70%|
|BTC's dominance rests at nearly 70% the entire market cap. This is the highest it's been since March of 2017.|
In response, altcoins have continued to absolutely decimated, especially trading against BTC.
We've seen a lot of market cycles here in crypto, and at times dominance has been fairly balanced.
Back in January of 2018, Bitcoin was only 33% of the total market share.
However, that is far from the current situation.
While Bitcoin has maintained it's steady upwards trajectory, all other major and minor cryptocurrencies are bleeding out heavily.
The charts look mostly the same trading against the dollar as well. Even with Ethereum being up 60% YTD, it's down 30% and struggling.
Unfortunately for alt-hodlers, it doesn't seem alt coins are going to be staging a come back any time soon, regardless of how BTC performs. Even in July, when BTC dropped in value, it's domiannce continued to increase, showing investors confidence in Bitcoin and their current disbelief in other cryptos.
|For a professional trader, it is absolutely essential that I have full control over all of my positions. Platforms like Binance, Coinbase Pro, and Bittrex, although amazing in their own right, do lack essential features for any serious trader. Whether it's setting a take profit and stop loss simaltenously, trailing a stop loss, or automating Trading View alerts, to maximize our returns in the market and simplify our trading we need better tools. |
The platform that I choose for accessing these essential tools is 3 Commas.
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|Ready Chart Requests|
|JW||Anything from yesterday you'd like to talk on today|
|Chat engagment, question answering||0:47:35||0:44:38|
|Spectre Security Coin||0:54:08||0:51:11|