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Bitcoin Price Surges as Bitfinex Gets Chance to Recover $850M from Crypto Capital, VanEck Expert Believes

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  • Yuri Molchan
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    A VanEck top expert believes one of the reasons of the recent BTC surge was the arrest of the Crypto Capital CEO accused by Bitfinex of freezing its $850 mln

Bitcoin Price Surges as Bitfinex Gets Chance to Recover $850M from Crypto Capital, VanEck Expert Believes
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On Friday, the price of Bitcoin surged over 30 percent. This morning, the price touched the $10,000 mark before a bit of a rollback. The head of digital assets at VanEck investment fund believes one reason for the surge in the Bitcoin price was the arrest of the Polish-based Crypto Capital's CEO, which has been accused by Bitfinex of freezing $850M from earlier this year.

Now, Bitfinex may get a chance to recover some of that money.

 

Could the Crypto Capital CEO’s arrest affect the BTC price?

At the weekend, VanEck’s director of digital assets, Gabor Gurbacks, published his thoughts as to what reasons may have caused the BTC price spike. Among them, he mentioned the arrest of Crypto Capital's CEO, Ivan Manuel Molina Lee. The principal of the company, Oz Yosef was also taken in custody. Lee was charged with money laundering in connection with drug trafficking, the second one was indicted with a bank fraud. The news was reported in a Bloomberg news piece.

Curiously, Crypto Capital is linked to the Bitfinex crypto exchange which is amidst of a court trial. One of the issues there was the cover-up of an $850M loss of customer funds with an extra emission of USDT stable coin initiated by the crypto exchange.

In court, Stuart Hoegner, General Council to Bitfinex, stated to Bloomberg:

“Bitfinex is the victim of a fraud and is making its position clear to the relevant authorities, including those in Poland and the United States.”

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Bitfinex now attempts to get its money back

When authorities froze Crypto Capital’s bank accounts in Poland earlier this year, they seized around $363M from the local fiat currency Zloty. Bitfinex is now trying to recover this money as part of Crypto Capital's frozen funds.

Hoegner said:

“This week’s developments do nothing to affect or otherwise deter Bitfinex’s claims to funds in Poland or anywhere else. We will continue to work to recover all funds for and on behalf of our stakeholders.”

Bitfinex works in partnership with Tether Ltd. and the same management team. Some in the crypto community believe that the Bitcoin price is often manipulated with USDT when new emissions of this coin take place. Besides, many are doubtful that USDT coins are 100 percent backed by the USD.

 

Do you believe the arrest of the Crypto Capital CEO indeed affected the Bitcoin growth on Friday? Feel free to leave a comment below!

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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.

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Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies

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  • Alex Dovbnya
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    Holding Bitcoin as a collateral is the next big use case for the top cryptocurrency

Crypto Expert Says Bitcoin and Ethereum Are 'Formidable' Collateral Economies
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According to cryptocurrency influencer Chris Burniske, both Bitcoin and Ethereum already represent formidable collateral economies.

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Moving beyond a medium of exchange

In his earlier tweet, Burniske also predicts that holding Bitcoin as a collateral could eclipse its medium of exchange (MoE) use case.  

He even goes as far as claiming that Bitcoin could morph into an off-chain collateral for the world. 

Burniske states that Ethereum has already created a burgeoning collateral economy around it. Apart from extending its utility beyond a pure MoE, this could also drastically decrease the coin's volatility because of all DeFi use cases.   

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The next big thing in crypto

As reported by U.Today, Genesis Capital, a subsidiary of Digital Currency Group (DCG) that rules the roost in the cryptocurrency lending sector, had a record-breaking third quarter with a whopping $870 mln in new originations. 

In Q3, Bitcoin remained the best collateral for crypto with fiat money and altcoins breathing down its neck. The share of USD loans increased by 25 percent quarter-over-quarter.

However, a group of Wall Street traders made a dire warning about crypto lending, claiming that the breakneck speed of its growth could result in another crypto bubble. 

Subscribe to U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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