Bitcoin flash, crash and surge / 🚔 $725k bail for Twitter hacker / Binance Card

Within 15 minutes, Binance bitcoin futures crashed 14%, surged to $99,964, then collapsed

Inside.com Part of   Network August 03, 2020

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Market Watch Bitcoin $11,360 7 day Δ +9.5% Ethereum $393 7 day Δ +24.3% XRP $0.31 7 day Δ +45.5% Prices as of 11:30 a.m. ET

Within 15 minutes, Binance bitcoin futures crashed 14%, surged to $99,964, then collapsed to $11,450. According to CEO Changpeng Zhao, a user’s algorithm sent multiple orders that caused the surge in price. The flash crash, flash surge, and second flash crash: On Aug. 2, 2020, at 12:35 a.m. EDT, Binance's USD-denominated Sept. 25, 2020, quarterly futures contract was trading at $12,340. By 12:42 a.m., that futures contract crashed 14% to $10,647. This crash coincided with a worldwide $1.4b liquidation across multiple exchanges, as well as a simultaneous Ethereum flash crash. Six minutes later, Binance reported "a single user" caused the contract to flash surge 838% to $99,964. Within two minutes that contract had collapsed 88%, trading back to $11,450. Zhao instructed his team to manually rewrite the history of the futures contract in "consideration of future user trading experience" and so that the price chart would be "readable in the future." Binance's redrawn chart of the relevant time period is pictured above. The new version of the chart shows a volume of 28,500 bitcoin at 12:48 a.m. EDT. If that volume is accurate, that implies a volume of at least $330m during that single minute of trading. However, Binance offers leverage of 20-125x on this futures contract, meaning that actual volume traded by users could be as low as $2.5m during those 60 seconds. Binance

A juvenile co-conspirator in the July 15 Twitter hack owns more than $3m worth of bitcoin. Several other arrests have been made, and the FBI has said that its investigation is ongoing. More: A judge set bail for 17-year-old Graham Ivan Clark at $725,000. During a separate investigation in 2019, authorities confiscated 400 bitcoin from Clark. They subsequently returned to 300 bitcoin. Clark is charged with 30 distinct counts of crime. Other arrests include Mason Sheppard of the United Kingdom and Nima Fazeli of Florida. On July 15, a group of cryptocurrency hackers used phone spear phishing to gain "god mode" Twitter access and stole at least $117k using a scam called "CryptoForHealth." Tampa Bay Times

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Jump Capital published the mid-2020 crypto report and is looking at investing in more startups. Some highlights: Jump Capital makes three core assertions: Bitcoin will become digital gold, stablecoins will enable dollarization in many countries, and crypto has enabled a "great global casino." Peter Johnson, Jump Capital Principal, specifies four types of companies in which his venture capitalists are looking to invest today: fiat-to-crypto onramps, financial infrastructure, derivatives exchanges, and compliance technologies. More: The Chicago-based VC firm was founded in 2012 by Jump Trading co-founders Paul Gurinas and Bill Disomma. Jump Trading employs over 700 workers and focuses on high-frequency and automated trading, competing with companies like Jane Street, Hudson River Trading, Two Sigma, and Citadel. The Block Crypto

Chapman Tripp lawyers have delivered a list of grievances on behalf of Cryptopia Exchange's account holders to its liquidator, Grant Thornton. Chapman Tripp is New Zealand's largest commercial law firm. More: Chapman Tripp's letter claims that Grant Thornton has paid itself excessive fees, acted too slowly, not acted impartially, and failed to protect and disburse Cryptopia's assets reasonably and efficiently. Hackers attacked the exchange several times, sending it into liquidation in May 2019. Of the approximate NZ$11m of assets that Grant Thornton has secured, it has paid itself NZ$1.7m in fees. Grant Thornton released an update regarding the exchange's liquidation on June 12. Brave New Coin

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Binance Card seemingly launched, but then Binance backpedaled. Account-holders would be able to make everyday purchases using a debit card backed by their Binance portfolio. More: Crypto debit card and wallet provider Swipe (SXP) was ready to announce a lending and borrowing service on Binance's smart chain platform. Swipe already offers its own debit card, but the partnership would be a white-labeled debit card, "Binance Card." Binance published and then deleted a web page with information about Binance Card and didn't respond to questions from reporters. Swipe raised $12m in its August 2019 token sale. Today, Binance is rumored to be a majority owner of Swipe. Swipe (SXP) has rallied 23% this week. The Block Crypto

Quick Hits: Coinbase published a list of 19 candidates for potentially listing on its exchange. China's central bank is calling for an antitrust probe into Alipay and WeChat Pay, popular fiat onramps for Chinese cryptocurrency buyers. U.S. Secret Service officers confiscated $6.5m worth of bitcoin and Tether (USDT) from Banana.fund, claiming it was a ponzi scheme. The government claims that one co-conspirator, "Person 1," had an account balance of $11m at a time when he claimed to only possess $1.73m. India responded to a Right to Information request regarding a bill that would formally ban cryptocurrencies in India, Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019. The reply letter states that despite some consultation proceedings, legislators are still "awaiting approval of the government." Bloomberg published a brief review of Filecoin.

Written and curated by wide-eyed bitcoin watcher since $1, Aaron Wise. Streaming headline junkie, Associated Press fanboy, eye-strained news terminal watcher, 2017 founder of Cryptocurrency Newsfeed. Temporarily based in Florida while awaiting the construction of cryptopia.  Editor Sheena Vasani is a journalist, passionate techie, and UC Berkeley alumna who writes Inside Dev. She started her coding journey at Dev Bootcamp and Thinkful, and is proficient in Javascript and Ruby. In her free time, she runs a project dedicated to breaking mental health stigmas in South Asian communities. She's also currently working on gathering stories about people transcending divides for a new project, A Human First.

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