Blockchain Report — 11/30/2018
Summary: Cryptocurrency Startup CEO Could Face 120 Years In Prison For $4 Million Scam; $510 Million In Binance Coin (BNB) Moved For $0.03 In Fees; Tron Will Invest $100 Million In Blockchain games
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Cryptocurrency Startup CEO Could Face 120 Years In Prison For $4 Million Scam
According to The Next Web, Jared Rice, the CEO of the blockchain startup AriseBank, could face up to 120 years in prison due to scamming investors out of $4 million. As part of his Initial Coin Offering (ICO), Rice promised his investors that the cryptocurrency would be able to achieve Visa-like functionality.
Instead of using the funds raised from the ICO to develop the cryptocurrency, Rice decided to use something else with the funds: pay for expensive hotels, food, and clothes.
There were several other red flags with the AriseBank ICO. Rice claimed that AriseBank raised $600 million in the span of a few weeks. However, the ICO only raised $4 million. Furthermore, Rice had previously disclosed guilty to state felony charges in relation to another internet business he was involved in.
Erin Nealy Cox, the Northern District of Texas US Attorney, said this about the fraudulent ICO:
“My office is committed to enforcing the rule of law in the cryptocurrency space…The Northern District of Texas will not tolerate this sort of flagrant deception — online or off.”
$510 Million In Binance Coin (BNB) Moved For $0.03 In Fees
According to Ethereum World News, 98,776,172 Binance Coin (BNB) was transferred out of Binance to an unknown and unverified wallet. What is particularly notable about this transaction is both the size, as well as the fee paid to complete the transaction.
These coins were worth $512 million in total. This transaction was completed for a fee of only $0.03, in the span of several minutes.
Some people were worried that a hacker was stealing the Binance coins from Binance’s wallet into their own personal wallet. However, the CEO of Binance Changpeng Zhao went on to Twitter to quell people’s fears, stating that the massive move of these coins is related to increasing security for their customers:
“Nothing to worry about. Check the tx logs, plenty of tx FROM the new address TO our old wallets. No need to spread FUD. We are constantly working on beefing up our security even more.”
Tron Will Invest $100 Million In Blockchain games
According to Venturebeat, Tron said that it will invest $100 million in blockchain games over the span of the next three years. The purpose of this investment is to increase the amount of innovation in emerging technologies.
Roy Liu, head of business development at Tron, said:
“Our mission is to bring the blockchain to mass market…Games led the way to make smartphones and virtual reality more accessible. Now it’s happening with blockchain.”
Liu also said that the gaming market is always expanding, and has been doing so since 2007 when the first iPhone was released. Liu said that blockchain technology will disrupt the gaming industry due to blockchain providing a transparent and secure way to store data. Here’s what Tron’s founder Justin Sun had to say about the $100 million investment pledge:
“Through establishing the blockchain game fund, Tron hopes to tackle with the inherent problems in the gaming area using the decentralization, openness, transparency, and immutability features of blockchain. As a result, players around the world can get the best blockchain gaming experience, and blockchain technologies can be spread.”
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