Coming every Sunday, the Hodler’s Digest will help you to track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.
Top Stories This Week
SEC Rejects—Then Will Review—9 Bitcoin ETF Application
The U.S. Securities and Exchange Commission (SEC) has rejected a total of nine applications to list and trade various Bitcoin (BTC) exchange-traded funds (ETFs) from ProShares, Direxion, and GraniteShares. However, the SEC then noted that it will be reviewing its decision, which was based on the claim that the products did not comply with the requirements by the “Exchange Act Section 6(b)(5), in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.”
Clean Energy Researcher Claims Bitcoin Energy Consumption Isn’t That Bad
A clean energy expert has written an article explaining why she thinks that Bitcoin’s high energy consumption is not as bad as it is often made out to be. In her article, Katrina Kelly, strategy manager at the University of Pittsburgh’s Center for Energy, writes that we need to shift the debate around Bitcoin mining away from energy-intensivity focus instead on where that energy is produced and how it is generated. Kelly notes that although BTC mining consumed 30 terawatt hours in 2017, banking continues to consume an estimated 100 terawatts of power each year.
Chinese Police Arrest Hackers for Allegedly Stealing $87.3 Million in Crypto
Police in China have arrested three “highly experienced” hackers suspected of stealing up to 600 million yuan (around $87.3 million) in crypto. At the end of March, an individual with the surname Zhang filed a complaint with local police in the northwestern city of Xi’an, claiming that his computer had been hacked and BTC, ETH, and other crypto holdings worth up to $14.5 million stolen. The police hypothesize that the suspects had used a remote attack to transfer funds from Zhang’s computer without leaving a trace, in what is reportedly considered to be a “rare case.”
Indian Man Arrested for Allegedly Promoting Bitconnect Investment Scam
Indian police have arrested a man who was allegedly involved in promoting the Bitconnect investment scam. The suspect is reportedly the India head of Bitconnect, the high-yield investment program that stopped operating in January 2018 after coming under scrutiny for appearing to be a fraudulent Ponzi scheme. According to a recently filed Freedom of Information Report (FIR), this is the third case under investigation in India associated with Bitconnect. Local promoters of Bitconnect are alleged to have fled with 1.14 crore (11.4 million) rupees worth of Bitcoin from one investor.
Analysis Shows Bitcoin Cash Use in Commerce Has Decreased
A review of payments received by the world’s 17 largest crypto exchanges has shown that Bitcoin Cash (BCH) use in commerce has gone down, according to data from blockchain analytics firm Chainanalysis. They found that BCH payments dropped to $3.7 million in May from $10.5 million in March, while the volume of Bitcoin (BTC) payments was estimated $60 million in May, down from a high of $412 million in September. Chainalysis also noted that between 10,000 and 100,000 BCH are held by just two wallets.
Most Memorable Quotations
“It may be a stunt, but a stunt that is working. The question is though – working for whom? President Nicolas Maduro and his cohorts? Or the people of Venezuela? Sadly, it’s more likely to be the former,” — Dickie Armour, CCO at Corre Innovation
“I’m involved with, very soon, my first time being involved in a blockchain company […] Our approach is not like a new currency, or something phony where an event will make it go up in value. It’s a share of stock, in a company,” — Steve Wozniak, Apple co-founder
Laws and Taxes
CFTC Wins Court Order to Permanently Ban Crypto Firm
The U.S. Commodities Futures Trading Commission (CFTC) has won a court order to permanently bar the operator of the New York-based firm CabbageTech Corp. for cryptocurrency-related “bold and vicious fraud.” Earlier this year, Patrick McDonnell, cryptocurrency promoter and operator of CabbageTech Corp., was charged with “fraud and misappropriation in connection with purchases and trading of Bitcoin (BTC) and Litecoin (LTC).” A New York judge has now ruled that McDonnell must pay $290,429 in restitution and $871,287 in penalties.
Four US Cryptocurrency Exchanges Create Self-Regulatory Organization
Gemini, Bitstamp, Bittrex, and bitFlyer USA have created a self-regulatory organization for digital commodities such as cryptocurrencies. The new group, dubbed “Virtual Commodity Association Working Group,” aims to help large-scale investors get more comfortable with the crypto market, work on formulating…