Daily Trending News and Market Sentiment: Wright Can’t Settle, Golix in Trouble

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Bitcoin did not falter on the weekend, for most of yesterday, holding well above the USD 9,000 and even at times looking like it would move in a strong flow upwards. However, it did not do particularly well in any of those charges either, failing to move past the daily high of USD 9,377 and currently in a downward trend, at the day’s low of USD 9,144 (CoinDesk) at 10:15 am UTC on a Sunday morning.

Altcoins are also feeling the heat from a loss of confidence on the weekend, as long traders closed positions, perhaps to look at how Sunday will pan out or how Monday will kick start the new month in proper.

ETH is standing strong though at USD 181, Litecoin even is still trading above USD 57 and even Ripple (XRP) is managing to maintain 29 cents, so it could be a period of consolidation, rather than further pullback.

Ahead of the working week, one crypto analyst is picking up on what he believes are bullish signs for the short term, proposing that Bitcoin could even be set to hit USD 12,000 in an unexpected price breakout this month.

Crypto trader and analyst Josh Olszewicz, on social media, says that his first long buy was triggered at the “fractal” at USD 9,300. His buy is based on what he says is the inactive past week that makes a strong case for a coming Bitcoin bull, saying that the “alligator indicator” proves that Bitcoin is building up strength — referencing how three smoothed moving averages are determining a long entry signal. According to their chartings, this implies a move to a range between USD 11,300 and USD 12,300, somewhere in between his pitchfork channel.

We now return to some update about Craig Wright, the crypto influencer and one of Bitcoin’s earlier adopters turned critic, who has now said that he is unable to finance his court settlement negotiated earlier with the Kleiman estate.

According to Yahoo Finance, a court document filed in the Southern District of Florida late last month shows that Wright has pulled out of the settlement agreement in which he would have forfeited half his intellectual property and Bitcoin mined before 2014.

One Ira Kleiman, the brother of deceased David Kleiman, had first brought the charges against Wright in 2018 on behalf of David’s estate, alleging that Wright manipulated business documents, emails and other correspondence in order to defraud the estate.

In August this year, he was found to have been in contempt of court by Magistrate Judge Bruce E Reinhart when he failed to give a complete list of Bitcoin addresses, supposedly containing up to BTC 1.1 million.

Wright, at the hearing, said Kleiman’s death and a complicated encryption method was the reason he couldn’t access the Bitcoin. These arguments were found to be inconsistent with past claims, and made in bad faith. Prosecutor Velvel Freedman had noted in the filing:

“These discussions began at Craig’s request and due to the fact that Craig represented he had the means to finance a settlement.”

The trial date has been set for 30 March 2020, about two months before the next halving event for Bitcoin.

Wright’s ongoing saga with the courts should provide a lesson to every observer in crypto. And we’re not simply talking about petty financial fights and lawsuits over money, or even claims to identities of famous people. We’re talking about access to funds.

Crypto wallets are only meant to be in control of the owner, and Wright’s case, if true, suggests that shared ownership creates issues for access, as the case of the QuadrigaX exchange also showed, where the owner passed away, and with his death, allegedly took all knowledge of private keys and access to funds.

The latest such incident to happen is now in Zimbabwe, where Bitcoin interest has been booming in the past few years. According to local English daily iHarare, crypto exchange Golix’s CEO, Tawanda Kembo, has lost his password to one of the exchange’s Bitcoin cold wallets. What makes matters worse is that he apparently lost it a long time ago, in May 2018. Two separate sources familiar with the issue also confirmed the “password fiasco”.

Kembo in a guest post on the same source has denied Golix could not process withdrawals because of insolvency:

99% of the people who have attempted to make a withdrawal on Golix have seen it go through without a hitch.”

Golix has been the subject of regulatory violation investigations and was shut down by the Reserve Bank of Zimbabwe.

And the lesson we would like to keep reminding our readers? Never store your funds on a third-party service like an exchange. You just can never trust anyone but yourself.

 

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