Crypto News Weekly 28.09.18: Bitmain Losses, Korean Exchange Bribe, Ex-UBS Bankers Launch Crypto Bank
Ex-UBS bankers raise $100M for crypto project, Korean Exchange CEO accused of 1 billion won bribe, Bitmain IPO application brings recent losses to light and Walmart pushes suppliers onto the blockchain.
Ex-BS bankers raise $100 million for crypto project
Two former executives of UBS have raised over $ 100 million to launch a crypto bank called Seba Crypto. Black River Asset Management and Summer Capital led the funding round to set up the venture in the valley of Zug in Switzerland even though the bank has yet to secure its Swiss banking license.
Talks with Swiss regulators are ongoing and the application is expected to be filed by the end of October with the bank saying it wants to be the bridge between traditional fiat markets and the new world of crypto.
Korean Exchange CEO accused of 1 billion won bribe
The CEO and COO of a large Korean crypto exchange, Coinnest, have been indicted under an accusation that they received approximately $890,000 in bribes of differing currencies for listing a currency.
The Seoul Public Prosecutor’s office says the official pushed the coin, referred to under the moniker of S coin, through the system without the necessary checks, and with weak technological problems overlooked, for financial reward. In Ápril of this year, Kim Ik-hwan, the CEO, made headlines for being the first head of an exchange to be arrested on charges of embezzling client funds.
On the other side of the coin, the American exchange Coinbase announced new procedures for considering fresh listings including open applications via its website, in a bid to build a wider base of currencies on the exchange.
Bitmain IPO application brings recent losses to light
Bitmain finally filed for its IPO surrounded in a flurry of reporting of bullish past performance while skirting around the fact the company has probably moved recently into a heavy loss position. As the news of the IPO filing broke, the Bitcoin Cash price peaked by 20% in 24 hours giving further fuel to the fire that Bitcoin Cash is too closely linked to its major mining concerns.
After an examination of the early 2018 figures by industry researchers, they stated that they believe that the latest results will show a move to a $400 million loss for the latest quarter, which is being masked by previous profit offsets. The same commentators did note that they believed the company was still in a strong competition to lead the sector.
In the same week, Bitmain subsidiary Antpool signed a major sponsorship deal with US basketball team the Houston Rockets in a move to raise its public profile in the US.
Walmart pushes suppliers onto the blockchain
Walmart and its subsidiary Sam’s Club have given its suppliers of green vegetables one year’s notice that they must put food data on the company’s blockchain to avoid health risks such as the recent Arizona e-coli breakout.
In the letter to the producers, it was said that the data would allow early identification of contamination problems and remedial actions in the foodchain to prevent major problems. The technology being used, has been trialed for 18 months in conjunction with their blockchain partner IBM.
Also this week Porsche announced plans to spend a further $176 million over the next five years expanding its existing investments into Blockchains, Startups and AI.