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With news of Upbit exchange hack doing rounds, there is yet another twist to the whole Saga. Jeff Paik, CEO at Finector has thrown light on the fact that how this case can be one of the instances of crypto exchanges hacking themselves to avoid taxes. 

The Case of Bithumb Hack

Jeff Paik reiterated the example of Bithumb in 2018 when the Korean Tax Service asked Bithumb to pay $30 MM in taxes. Interestingly, Bithumb got hacked of $35 MM a few days later. As a matter of fact, Upbit was ordered to pay 50-60m taxes in Jan 8, 2019, and yesterday, Upbit got hacked of $50 MM. 

Source- Twitter

A twitter user, Zack Voell said that this conspiracy made complete sense as the exchanges would rather lose their customers but not pay taxes. 

Source- Twitter

The tweet also saw Co-founder of Pocket Nodes commenting that what a fabulous conspiracy it was. 

Source- Twitter

Another, interesting fact was revealed by Su Zhu, CEO, Three Arrows. He revealed how aside from the 1k GWEI gas fee and 200k gas limit, the hacker left 1113.76 ETH remaining in Upbit’s hot wallet. When the hacker could have easily taken the full 343K ETH. 

Source- Twitter


On which, twitter user, Crypto Loomdart responded that probably the hacker had some Ethereum(ETH) balance on Upbit. Also, it is likely that the hacker buys some dips on Ether when the news of theft is out in public. 

Source- Twitter

Anthony Yoon, head of partnerships at The Spartan Group mentioned that markets have not been performing that well in South Korea and new listings on exchanges continue to perform poorly. He further hinted that Upbit has paused any listings.

Stolen ETH Is Moving

As reported by Coingape,  the Upbit hacker has started moving the stolen ETH to other addresses. The movement saw 112,020 ETH worth over $17 million in all being transferred to two addresses. The two newly created addresses start with 0x9A207194cb and 0x3408EdCa2d respectively.

Will Upbit manage to restore users’ funds and build the lost trust again? Let us know, what you think in the comment below!


Was Upbit Hack An Attempt To Evade Taxes? Here is Why

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Was Upbit Hack An Attempt To Evade Taxes? Here is Why


With speculations of Upbit exchange hack doing rounds, there is yet another twist to the whole Saga. Jeff Paik, CEO at Finector has thrown light on the fact that how this case can be one of the instances of crypto exchanges hacking themselves to avoid taxes. 


Supriya Saxena

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

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Supriya Saxena , 2019-11-28 11:59:12 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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