BTC-e cofounder arrested for laundering $4 billion – July 27, 2017

Bitcoin price looks to be recovering after touching a low of $2428 yesterday. The price has lost its BIP 91 support from the previous week as ViaBTC is still pushing for Bitcoin Cash. A lot of price swings may happen in these four days leading up to August 1st. The lack of consensus will keep hard fork fears alive.

Up until yesterday, sellers seemed to be in control of the prices, but today stochastic is heading up to show that buyers are regaining the upper hand. If that does happen, Bitcoin could reach $2950 or even test new highs within a week. Bitcoin has shown great resilience this week as BTC-e and SEC events failed to shake prices at all.

Top stories from the crypto world

1. BTC-e cofounder arrested for laundering $4 billion in BTC

Alex Vinnik, cofounder of BTC-e, an exchange running since 2011, was arrested on Tuesday. The authorities have charged him of laundering more than $4 billion for people involved in crimes ranging from computer hacking to drug trafficking. Vinnik is also being linked to the failure of Mt Gox, a Japan-based Bitcoin exchange that went bust in 2014 after being hacked. US authorities plan to fine BTC-e up to $110 mln for flouting anti-money laundering (AML) laws.

The exchange has been down for the past two days doing “unplanned maintenance”. However, the exchange yesterday tweeted it could be back online within “5-10 days” after work on “resuming its service” was completed.

2. Russian airline starts using blockchain to issue tickets

Russia’s biggest airline has now started issuing passengers tickets on a blockchain with support of Alfa-Bank, Russia’s biggest private banking institution. The platform is designed to reduce settlement times between the airline and the agent, which today takes around two weeks.

3. Bitcoin is Pyramid Scheme, says Howard Marks

Howard Marks, a billionaire who predicted the dotcom bubble, has called Bitcoin a fad and even a pyramid scheme. Mark said:

In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it.