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Fintech CEO: Crypto.com $10.5MM Error Illustrates Human Error Element Within Crypto Industry

Instead of a $100 refund to an Australian customer, Crypto.com sent the woman in question $10.5 million

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Fortune highlighted a sixteen month, $10.5 million saga, with human error and crypto.com standing front and center. Instead of a $100 refund to an Australian customer, Crypto.com sent the woman in question $10.5 million, typing her account number into the amount section of the transfer. It took the company over six months to realize the mistake. That was last December, and they still have not recovered the money.

“This incident illustrates perfectly how the crypto industry is plagued with human error. Much of it can be attributed to a failure to implement best practices. We see it in exchanges, we see it with custodians. Because the industry has been stuck in a regulatory gray area, further fragmented by geographic jurisdictional splits, it never has really operated with the kinds of scrutiny that other industries demand,” explained Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“For example, if we were talking about the traditional finance industry, regulators would’ve long ago cracked down on open-source development of exchanges, which are a major contributor to hacks. Imagine if your online stock brokerage was hacked for nine figures because it ran on open-source code. Now imagine that brokerages were hacked on a monthly basis? On a weekly basis? Sometimes, on a daily basis?” asked Gardner.

“It wouldn’t be long before the regulators would step in and create guidelines. The crypto industry isn’t there yet, but I think we’re getting closer. First, regulators are going to focus on putting a halt to any opportunities for money laundering and pump-and-dumps, but, after that, I think they’re going to have to tackle the elephant in the room: security,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“Sooner or later, though — and I’m banking on sooner — the regulators are going to need to tackle security. That includes cybersecurity concerns, like open-source development. It includes code audits. It includes best practices to keep employees from falling victim to phishing attacks. It includes stopgaps to make sure that a $100 refund doesn’t turn into a $10 million payout. From top to bottom, the industry needs an overhaul before it can truly flourish,” said Gardner.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Veritaseum Sues Crypto Exchange Platform Coinbase For Patent Infringement

Block-chain-based software Veritaseum has filed a lawsuit in a U.S district court in Delaware, against crypto exchange platform Coinbase alleging that the latter infringed on one of its patents.

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Block-chain-based software Veritaseum has filed a lawsuit in a U.S district court in Delaware, against crypto exchange platform Coinbase alleging that the latter infringed on one of its patents.

Veritasium alleged that Coinbase had used its patent developed for secure digital transactions, in its Pay, Cloud service, wallet, website, and App known as the “566 Patent”, and is seeking $350 million in damages.

According to the court document, Patent 566 was awarded to Vertiaseum founder Reginald ‘Reggie’ Middleton and co-inventor Mathew Bogosian by the U.S. Patent and Trademark Office on Dec. 7, 2021. However, Vertiaseum did not mention how long Coinbase had been allegedly using Patent 566.

Veritaseum disclosed that the patent revolves around novel devices, systems, and methods, which enable parties to enforce value transfer agreements with little or no trust in each other, alleging that Coinbase used this for many of its blockchain infrastructure services.

Attorneys presiding over the case noted that Veritaseum had previously sent a letter to Coinbase in July warning it of its alleged infringement, however, the crypto exchange platform was uncooperative which forced Veritaseum to file a lawsuit.

Veritaseum further disclosed that Coinbase had prior knowledge and should have known or at least been willfully blind to the ‘566 Patent.

The Lawsuit reads, “Defendant makes, uses, sells, and/or supports infringing products and services on the Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and Solana platforms as well as NFTs for its products and offerings that run on top of and facilitate said platforms. 

“Defendant’s infringing activities include Coinbase Android mobile wallet, iOS mobile wallet, its Coinbase Cloud, Coinbase Commerce APIs, Query and Transact, Participate, Delegate and Validator software, Coinbase Pay, Coinbase Wallet, and Coinbase Operated Public Validators.”

Veritaseum justified the $350 million charges it is demanding, arguing that Coinbase had gained substantial profits by virtue of its infringement and that Veritaseum sustained damages as a direct and proximate result.

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Investors Scoop XRP in Large Scale as Legal Dispute With SEC Reach Potential Resolution

Cryptocurrency investors are bagging XRP (Ripple) amid the hope of a resolution in favour of XRP in a legal tussle with the United States Securities Exchange Commission (SEC). 

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Cryptocurrency investors are bagging XRP (Ripple) amid the hope of a resolution in favour of XRP in a legal tussle with the United States Securities Exchange Commission (SEC). 

Investors King learnt that there has been an XRP buying frenzy in the last 24 hours

Cryptocurrency investors believed that if Ripple Lab, the parent company of the XRP token win its lawsuit against the United States SEC, there might be a sudden spike in the attractiveness of XRP supply, which would likely cause a jump in price. 

It could be recalled that in November 2020, the Securities Exchange Commission sued Ripple and two of its executives for raising $1.3 billion through an unregistered digital asset. 

SEC alleged that Ripple raised funds through the sale of XRP to United States Investors and worldwide. SEC also alleged that Ripple Lab used its token XRP to pay for Labour and marketing-making service.

The Securities Exchange Commission classified XRP as unregistered securities which could not be sold as a public offering to finance the company’s business. 

The whole cryptocurrency community was stunned by the lawsuit. This forced several XRP investors to sell their investments. 

However, Ripple Chief Executive Officer, Brad Garlinghouse absolve the company from all allegations and alleged SEC of legal bullying. He claimed Ripple did not violate any U.S Securities law in the sale of XRP.

Meanwhile, both SEC and Ripple have applied for summary judgment which could bring the legal tussle to a logical conclusion if none of the parties is interested to further the case after the summary judgment. 

Ripple nonetheless believes that SEC has no solid case while it is acting outside its constitutional jurisdiction. 

A win for Ripple Lab will be a major victory for the wider crypto community as many cryptocurrency investors suspected that the lawsuit is a sort of witch hunt against cryptocurrency adoption.  

XRP price action subsequently responds to the news. XRP opened at 0.45 cents on Saturday and traded at 0.55 cents before it receded. It is currently trading at 0.48 cents at the time of this report. 

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Nigeria Leads Africa in Crypto Adoption as Investors Anticipate Market Rebound

Nigeria overtakes Kenya to claim the first position as the leading country with crypto adoption rate in Africa

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Nigeria overtakes Kenya to claim the first position as the leading country with crypto adoption rate in Africa. 

Investors King learnt that Nigeria leads other African countries in cryptocurrency adoption so far in 2021. Nigeria which is also Africa’s largest economy ranked 11th in the world position. 

Other African countries on the world list include Morocco which came 2nd in Africa and 14th in the world.

Kenya which led the African continent in 2021 was ranked 3rd in Africa and 19th on the global list. 

The ranking which was conducted by Merchant Machine used five different indexes which include; On-chain cryptocurrency value received at centralized exchanges, On-chain retail value received at centralized exchanges, Peer-to-peer (P2P) exchange trade volume, On-chain cryptocurrency value received from Defi protocols, and On-chain retail value received from Defi protocols. 

The report further stated that despite the ban on cryptocurrency-related transactions by the Central Bank of Nigeria (CBN), about 33.4 million Nigerians still traded or hold crypto assets. 

Millions of Nigerian youth have taken to cryptocurrency in recent years either as a way to attain financial freedom or to hedge against the downward pressure on the naira.

Google trend ranked Nigeria as the country with the highest number of bitcoin searches in the world. 

The challenging economy and the high rate of unemployment which the National Bureau of Statistics (NBS) has put at 33.3 percent have made many Nigerians take to cryptocurrency as an alternative way of revenue not minding the volatility risk. 

Besides, some Nigerians have found employment opportunities in the cryptocurrency industry either as cryptocurrency content writers, blockchain developers, cryptocurrency influencers or NFT creators.   

Meanwhile, many cryptocurrency investors believed that bitcoin and a host of other digital assets are trading at discounts.

Although bitcoin is trading below 20,000 dollars at the time of this report, many cryptocurrency investors, however, believed that the market will soon rebound. 

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