Coinbase is put to the test and our friends in the U.K hit double-digit inflation for the first time in four decades. My name is Ben. This is your nightly crypto news wrap-up. Let’s get it!
Not too long after Coinbase got broadsided by an SEC probe as a direct result of the insider trading scandal, now, Coinbase is in hot water with another lawsuit that was filed right here in Georgia. As the story goes, the plaintiff, Mr. George Kattula, received an email from Coinbase, prompting him to change his password. Shortly after he did so, almost $6,000 dollars vanished from his account and transferred to God knows where. Obviously, he did everything he could to reach customer service to secure his account, but they failed to get back to him, leaving the hackers with an open window of time to steal an additional $1,000 dollars from his bank account. Coinbase did eventually reverse the unauthorized transfer from his bank account, but then they froze his account and didn’t cover the crypto that was stolen from Mr. Kattula. This is a classic example of why it’s so important to insulate yourself from these types of shenanigans and buy a Ledger Cold Wallet, link in the description. If Mr. Kattula had that $6,000 on a Ledger, none of this would have happened. Unless you’re actively trading or scalping, there is absolutely no reason at all you should have your crypto on an exchange. Problems like this are completely avoidable; don’t let this happen to you! A few weeks ago, we put out a video on exactly this topic titled, “Is your crypto safe anywhere?” The short answer to that question is: Only in a cold wallet! Mr. Kattula’s lawsuit claims that “Coinbase improperly and unreasonably locks its customers from accessing their accounts and funds, either for extended periods of time or permanently.” Classic. See, there’s language in the terms of conditions of every crypto exchange out there…it’s called a “Force Majeure.” Basically, if anything goes wrong, anything at all, they can do whatever they want, freeze you, lock you out, stop withdrawals, etc…and at the same time, THEY ARE NOT RESPONSIBLE. It’s a slippery slope…so brace yourselves, winter is coming. They can literally do whatever they want, whenever they want, and it’s affecting investors. That’s why the SEC is probing them. Coinbase also recently announced that they are freezing Ethereum withdrawals during the merge as a precautionary measure, but I can’t help but think that they want to prevent a “sell the news” situation. If you think this is bad, know that it’s probably going to get worse before it gets better. Just yesterday, the FED put out a letter to banking institutions that at involved with crypto. This letter shows their true intentions and in their eyes, everything they can’t control poses a risk to the financial system. They describe most of the activity with crypto as ‘illicit’, and ohhh boy do they hate stablecoins. Long story short, this is their warning to banks, and really to everyone, that if crypto is adopted at a large scale, it could disrupt everything. They’re going to use every excuse they can to ensure the safety of the legacy system. Let’s pass it to Frankie candles for a market watch.
“The pros and cons for the U.K”
For our friends on the other side of the Atlantic, I have some good news and some bad news. Always bad news first. For the first time in 40 years, the U.K. is dealing with double-digit inflation. Welcome to the family. They have joined 2 billion other citizens in the world living with record-high inflation. They too are raising their interest rates to try to tame it down, but fuel is a big problem for them, and the wintertime, with their gas surcharges, will only make it worse for your everyday chap. Another thing is…the U.K. is currently doesn’t have a political leader…which brings us to the good news…Both the politicians fighting for the Prime Minister’s seat, Rishi Sunak and Liz Truss are both pro-crypto! The new Prime Minister will be decided on September 5th. To add to the narrative, Crypto.com just got the thumbs up from the FCA for their UK registration to conduct “certain crypto asset activities” in the country. This comes after crypto.com got approval in Canada, South Korea, and the Cayman Islands. Let’s hope both the U.K and the U.S can successfully navigate the waters of inflation and crypto mass adoption; the future of finance depends on it. That’s all I got.