Weekly update: Important developments in cryptocurrency space Dec 21, 2019

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This week, the cryptocurrency space saw no shortage of drama. From the usual suspects—scams and fraud—to exchanges collapsing, there were a number of high-profile incidents that take place. As the crypto ecosystem continues to grow, the bad actors continue to be weeded out. 

Chinese crypto mining equipment manufacturer Bitmain has had its share of legal issues over the past two years and still can’t seem to get its operations in order. As a power struggle continues at the top of the company, a battle rages between a Bitmain subsidiary, Shenzhen Century Cloud Core, and a supplier over a contract, and Shenzhen has had $676,000 frozen until the case can be resolved. 

Due to an overwhelming lack of interest and “waning relevance,” U.K.-based crypto exchange Coinfloor has decided to drop a major digital currency. The company’s founder and CEO, Obi Nwosu, reached the decision to delist Ethereum because it doesn’t meet his vision of what crypto should be—a new form of money. He wants his exchange to not only be seen as a way for individuals to trade in crypto, but to be seen as a driver of “making [cryptocurrency as a form of money] available to everyone.” Ethereum, apparently, doesn’t fit that goal. 

A new payments platform has launched, in beta, that could completely change how digital currencies are accepted at the retail level. Using the Bitcoin SV (BSV) blockchain as a foundation for tokenization, ShowPay can allow zero-confirmation payments, as well as crypto-to-fiat exchanges, instantly. It chose BSV because it is “safer and faster than [BTC’s] Lightning Network.”

A Chinese fitness app company may not be exercising its activity in accordance with laws. Qubu, which offers digital tokens as rewards for completing certain fitness goals, is now being investigated for fraud and illegal fundraising. Given that the company suggests that the tokens will see a return of over 36% in two months, and charges transaction fees of up to 50%, it isn’t too surprising that regulators want to take a closer look at its books. 

The evidence is out there, as long as consumers are willing to put the pieces together. This is the message Richard Sanders, lead investigator for CipherBlade, wants to get across regarding the HitBTC exchange. He asserts that it is the “longest running, largest scale fraud in cryptocurrency” and believes that users need to withdraw their funds now, or possibly face losing them forever. His message has apparently been heard, at least by some, as HitBTC has seen more withdrawals lately and reportedly now has less than 90 BTC in its wallets.