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Bitcoin Foundation Chairman Brock Pierce explains what he believes is fueling the recent rise in cryptocurrency.
Bitcoin was trading over 5% higher Thursday morning at $ 49,800.
Bitcoin fell slightly after hitting $ 50,000 for the first time since August 23, after Ethereum jumped to $ 3,700, its highest level since mid-May.
Dogecoin is trading at 30 cents per coin, according to Coindesk.
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Regulators on Wednesday sued an offshore company that allegedly carried out one of the biggest cryptocurrency scams ever.
The Securities and Exchange Commission has accused BitConnect and its founder, Satish Kumbhani, of a $ 2 billion fraud that abused bitcoin collected from investors around the world, according to the Wall Street Journal.
An American promoter of the project, Glenn Arcaro, pleaded guilty in federal criminal court for his role.
BitConnect sold its own digital asset in 2016 in exchange for bitcoin.
STOCKS OF BITCOIN, ETHEREUM, DOGECOIN TRUMP IN AUGUST
The company said it has an automated program that will make it possible to make money by exchanging the bitcoin brought in. Profits would be shared with investors through interest payments.
BitConnect did not use a program to trade bitcoin, the SEC said. Instead, Kumbhani siphoned off some of it for himself and shared other amounts with promoters who helped him raise funds. Kumbhani was living in India at the time he carried out the alleged scam.
Regulators have failed to locate him.
Bitconnect and Kumbhani could not be reached for comment. An Arcaro lawyer did not immediately return the messages seeking comment, according to the Journal.
In other news, the founder and chief executive of the Binance cryptocurrency exchange, Changpeng Zhao, said his U.S. branch may be subject to an initial public offering within the next three years, according to Reuters.
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Binance.US is also expected to close a large private fundraiser over the next two months that is expected to reduce its control over the board, Zhao said in a Zoom interview with The Information.
Binance generated between $ 800 billion and $ 1 billion in profits last year, according to Zhao.
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