0
📰 News
1313 views

Bitcoin Accident? CEO of Zimbabwean Crypto Exchange Dismisses Allegations of Lost BTC to Media

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Yuri Molchan
    📰 News

    The story of allegations regarding Tawanda Kembo, the former CEO of the Zimbabwean largest exchange, continues as he contacts the media to share his view of the story

Bitcoin Accident? CEO of Zimbabwean Crypto Exchange Dismisses Allegations of Lost BTC to Media
Cover image via www.123rf.com
Contents

As reported by a local media iHarare, the CEO of the largest crypto exchange in Zimbabwe, Tawanda Kembo, claims he lost his password to the cold wallet that contained his customers’ Bitcoin.

Notably, this happened just when investors and traders were about to withdraw their funds due to the announcement of the Reserve Bank of Zimbabwe that the exchange – Golix – was to be shut down over the violation of regulatory rules.

Golix gets shut down, Kembo launches an ICO

iHarare writes that the accident took place back in 2018, just when the customers of Golix began withdrawing their BTC since the local central bank was going to close the platform. The amount that was assumed to be locked in the wallet was $33 BTC - about $305,000 as per the current BTC rate.

Two separate sources (former Golix employees) confirmed the loss of the password to the Bitcoin wallet.

After the exchange was shut down despite the attempts to prevent that in court, Tawanda Kembo initiated an ICO and launched his own coin dubbed GLX. He intended to open crypto exchanges in other African countries.

However, no new crypto exchanges were opened in Africa by Kembo since then and, as per iHarare, the former CEO became impossible to reach for former Golix customers.

👉MUST READ

Bitcoin Will Suffer If ‘China Coin’ Gets Backed by Gold – Peter Schiff Responds to Max Keiser

Bitcoin Will Suffer If ‘China Coin’ Gets Backed by Gold – Peter Schiff Responds to Max Keiser

Kembo contacts the media to tell his side of the story

Later on, the CEO in question responded to iHarare’s requests and gave them an exclusive material where he shared his view of the situation.

He stated that his phrase about losing the password to the Bitcoin wallet was torn out of context.

“I was an early adopter of bitcoin and anyone that got into bitcoin the time I did will remember that bitcoin was dirt cheap and we didn’t have an easy to use wallets such as the one Golix built. My first wallet, for example, was only accessible from a Linux terminal and although I don’t regret losing it back then (because bitcoin was so cheap), if I had kept it, it would have been worth a lot of money today. I’ve often told such stories at various talks I’ve given over the years and this has been taken out of context.”

He also dismissed the allegations made by the media on a range of other issues to do with Golix and himself.

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted
0
📰 News
390 views

Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Vladislav Sopov
    📰 News

    According to its Financial Stability Report of November 2019, the Board of Governors has warned about the dangers of stablecoins.

Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability
Cover image via
Contents

The Board of Governors of the U.S. Federal Reserve System have issued their monthly Financial Stability Report. This special report is dedicated to the profits and risks of "global stablecoins".

Stablecoins: Global System with So Many "Ifs"

First, the Federal Reserve admits to the numerous advantages that stablecoins present as a concept. It has been highlighed that stablecoins are "faster, cheaper, and more inclusive payments could complement existing payment systems". This is in comparison to cases where traditional financial institutions are sophisticated and poorly accessible. Stablecoins can also be managed to eliminate the volatility of cryptocurrencies, which is one of the borders for them to be utilized as the medium for exchange.

Therefore, the "global stablecoin initiatives" like Facebook's Libra can rapidly achieve cross-border adoption. However, the major threat for stablecoins is apparent - the "inability to convert in national currency". The loss of confidence in "pegging" the stablecoin to traditional assets can lead to a run, in which several holders will attempt to liquidate their stablecoins at the same time.

👉MUST READ

Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research

Tether Ceding Ground to Competitors as Stablecoin Wars Pick Up Steam: Research

This dramatic scenario may be caused by "poor design and governance", and can result in severe consequences for international economic activity, asset prices, and financial stability.

Transparency First

The Federal Reserve also outlined in its report that in many cases, stablecoins can be utilized for money laundering, terrorist financing, and other financial crimes. Therefore, the Federal Reserve would require operators of such systems to conduct their Due Diligence, as well as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to avoid any abuse. Moreover, the problems of disclosure policy and protecting investor data should be of paramount importance for stablecoin issuers:

Disclosures should clearly detail consumer and investor rights and protections, including whether the holder of the stablecoin has any rights to the underlying asset. Issuers should be transparent on how the stablecoin is tied to the underlying asset, has been said in the Report.

Last but not least, the report highlighted that the Federal Reserve, together with the Group of Seven, will closely monitor stablecoin developments as well as all the risks associated with it.

Have anyone ever invested in stablecoins? Do you prefer to use it, or to pay extra fees for fiat gateways? Tell us your story on Twitter!

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings