 So hi, I'm Molly Jane Head of News, and I'm Olivia Head of Editorial, and this is Coffee and Crypto Firstly, we're just gonna talk about FedNow, which is the Federal Reserve's new idea for an instant payment settlement system. Don't give it all away. I have nothing to say. Okay. Molly, you're gonna tell me about Binance allegedly leaking KYC info. Allegedly. Right? I said allegedly. Perfect. Underlining it. And you're also gonna tell me about the Coinbase Bitcoin Cash case. Yeah, there's a new ruling on that as of this week. The old case, but the new ruling. Yep. Okay. And that'll be it for the week. That'll be it for the week. Yeah. Not a huge week. Not that exciting. So the FedNow news. It's basically the Fed, which is the central bank of the United States. If you didn't know me, I know now. Making a system for real time payments, real time settlement that is going to, first of all, it doesn't exist yet. They announced it. And they're like developing it. They want to launch it, I think in 2023 or 2024. And the main idea is to make a payment system that you can use 24 seven. Anytime it works all the time. You don't have to wait for your payment to go through to another bank for like three days or even for a few hours or whatever. There's a little catch. It only works within the US. Okay, that's like that's a big point. Yeah, it's a big one. Because it's like, does it sound like anything that you know about? It sounds just like crypto currencies in general. But I think more specifically Ripple because Ripple using XRP and the other X rapid system are really the ones that are trying to work with real time settlement, specifically in terms of remittances. But that's international, right? And that's Ripple, but no, definitely not. But it's more the question of if this FedNow system is something that could be a possible competitor for Ripple in the future, you brought up Ripple and a lot of people in the internet also brought up Ripple. When this news came out, I mean, that was like sort of one of the first reactions a lot of people had was like, oh, and Bitcoin. Someone tweeted saying who was it? Was it Pomp that tweeted that? We already have Bitcoin. Yeah. Yeah. Well, my question has to do with what is it going to be built on? Do we know that it's not going to be distributed ledger technology? Well, they definitely aren't. It's definitely not publicly anything related to blockchain, which is like that yet. Right? Right. But like, yeah, not to confuse people. It's not like it's not like the Fed made like a blockchain based system. No. Or like made their own crypto like absolutely not. They didn't know it seems that this is as far as we know. Yeah, as far as we know, hiding it. Well, I just I hear the word real time payment settlement system. And I think that that can only be done with blockchain. And if you're tech person, tell me why they're that's not true. Tell me what the other options are. I'm just living this bubble and everyone is just all about DLT and all about blockchain. So the fact that they can do it without blockchain makes me just wonder why didn't they do it before? Like, allegedly, the Fed registered this product as early as 2008. Was that before after the financial crash, though? Like in like during, I think so. Okay. I'm not sure. Well, it'd be interesting if they did register it during the whole financial meltdown, because that would show that people at the Federal Reserve were kind of thinking along the lines of Satoshi Nakamoto, like they were just trying to come up with different ways to improve on our traditional financial system. And then the project like got sort of forgotten about and died. And now it's being reborn. We're just funny, like in the sort of hype of crypto, but it's like also late. I mean, it's not well, it's yeah, it's late. It's been it's been a few years. But it's just funny to think that that was before Bitcoin. Yeah. Yeah. What could have been that coin? No, it's not. I know. I know it's not. I'm sure somebody's made a Fed coin now and they're trying to show people online there. No, it's not a thing. That's a scam. I don't know. Bitcoin scams are happening everywhere. There was another piece this week that talked about how many millions of dollars was lost on those Bitcoin sex torsion scams this year, where it's like you get an email saying like, I have a video of you watching porn. You have to send me this much in Bitcoin or I'll release it to your friends and family. Just like a regular extortion. But yeah, but it's funny. It happened to my aunt. I was with her a month ago and she got an email saying send me like 0.5 Bitcoin because I have a video of you watching porn. My aunt is like in her sixties happily not the watching porn. She knew it wasn't her. Yes. We were traveling Europe together. She was, you know, we were together. It wasn't her and she didn't pay them. But weirdly, that same like hour that the email was sent was all of her bank accounts were compromised. So that was a little weird. Maybe they were connected. Most Bitcoin scams actually aren't real, but they somehow, you know, fished her. So our question for our audience members, because it happened to my aunt. If any of you guys have been victims of any sort of Bitcoin scams, you can comment below. Crypto scams. Crypto scams, not just Bitcoin. One thing that I know is on our website all the time is people commenting trying to be Binance in our comments to give away. No one does giveaways. Like they really just don't do giveaways. There are air drops. There are real things and you just, you know, if you see Binance commenting on an article about not Binance, but like fake Binance, if you see Binance commenting on one of our articles, you know, about like UK IRS taxes saying send me money and I'll send you more money. It's not, it's not real. Don't fall for scams in the comment section of the Cointelegraph website or on YouTube or on Twitter. We're never going to give you money for free ever. Why would anyone do that? This week there has been a telegram chat and other places on Reddit where photographs were shared allegedly of Binance KYC photos of users. So it's like a user holding up their passport with their face and their passport in it. The kind of photo that you'll send for KYC and that you don't want to then be on the internet because of identity theft. Binance responded right away. They said they're investigating it. One of the things they pointed out was there's no Binance watermark on the photos. So that indicates it's not a hack of Binance itself. But what I found the most, you know, interesting about this story is that it was reported in January of this year, January 2019 that some exchanges, I think it was Binance, Poloniacs and one other one, a third party KYC service was compromised. So my theory is that these are photos from this third party compromisation. Like a third party service was compromised back in 2018 actually. And the photos are now being released. And Binance says that they're being extorted, or did they comment on that? So what the Binance statement says is that the photos appear to be dated from February 2018, which is when Binance was using a third party vendor for a KYC verification because of the high volume of requests. So they're investigating that vendor. Oh, okay. So they're suggesting themselves. They're suggesting themselves it was the vendor. Okay. One thing is they're being asked by... I thought it was your brilliant theory. No, no, no, no. It was Debbie Bond that pointed me out to it on Twitter in the first place. Yeah. Oh, okay. Yeah, yeah. The hacker is demanding 300 Bitcoin to make it private, but they already released it, whatever, bad people do really stupid things. The hacker also claims that he has KYC information from other exchanges, which were also back from that January news, you know, media frenzy about that at the time that kind of calmed down. Anyway, Bitcoin's price was not incredibly affected by this news, which I love when really bad news happens. And then Bitcoin doesn't drop $1,000 like it has done in the past. So that was nice. If you've ever had a like interesting revelation to do with KYC, an interesting interaction, your KYC data was compromised. You didn't like giving your data. You want to give more data? I don't know, comment below. Would you rather like... What are you more concerned about when you sign up for an exchange? When you make an account of an exchange, are you more concerned about your funds being compromised? Is that what's like keeping you away from centralized exchanges? Are you more concerned about going through the KYC process? Is that because it's annoying and inconvenient or because you're concerned about your privacy? Like all of these issues, you can comment on any of them. I mean, personally, like, I don't really care if my picture of myself and my passport is leaked as long as my Bitcoin is safe. This week, a judge in the United States ruled, in this court case, it's been going on since the Bitcoin Cash Fork. They ruled that Coinbase did not commit fraud during the launch of Bitcoin Cash. This is important for a lot of reasons because back when Bitcoin Cash came into existence and it was put up on Coinbase, it caused a huge price spike and Coinbase seemingly was unprepared for the amount of trading volume and halted all trading within, I think, two minutes. And that made a lot of people really, really upset that were people upset that were planning on making money off of this. And all of a sudden, it was added and then it was stopped. So ever since then, there have been ongoing court cases against Coinbase, this lawsuit claiming that it was something that was acted fraudulently. And there were even claims of insider trading. As in, yeah, Coinbase employees knew this was going to happen and they were able to buy a bunch of Bitcoin Cash, make it available on Coinbase, sell it for a super high price, and then stop the trading. The lawsuit was concluded because it said that Coinbase did not price manipulate by doing that. And now the lawsuit is moving just towards the negligence claims. And I can read a quotation from the lawyer or from the judge that said, moreover, while the factual allegations paint a compelling picture of an incompetent launch by Coinbase in competency, the complaint is not outlining a coherent account of fraud by Coinbase, Brian Armstrong and then Farmer and other Coinbase employees. So overall, it's not great what happened with Coinbase. They're saying basically that they were incompetent, but that they were not maliciously incompetent, which is good to know because Coinbase is so big. And for so many Americans, it's just the number one way to store their crypto, just because of the name recognition. And so I kind of like this news that it's saying that maybe they messed up, which isn't great, but it's not saying they did it in a mean way. And it's just, you know. So yeah, you don't look every time, because Coinbase, like the not Coinbase Pro, but Coinbase, so like retail version or whatever they call it, their wallet is very limited in terms of the coins on it. And that makes it so that they're looking into adding more coins this week. Right. And every time they say that, those coins get pumped or something happens. So like it matters. Like every time Coinbase says they're thinking of adding a coin or they add a coin, like the coin's price is affected significantly, potentially more than other centralized exchanges because like it just has the name recognition. It's name recognition, but it's also because it's such a limited selection. I mean, it's just like not comparable to other exchanges. The lack of options on Coinbase means that every time a coin is going to be added, it causes more of a ripple in the market. Right. So this is not just about Bitcoin Cash. I mean, the Bitcoin Cash case is really important because people file a lawsuit about it and it's a particular Bitcoin, but like this is an issue that Coinbase has with their sort of like PR process that they go through when they list a coin or when they talk about listing coins, like it's like a little hints. And that like arguably could be seen as manipulation. I mean, they know as anyone in like crypto Twitter knows that if they talk about a coin, its price will be affected in some way. So it's like an issue that any sort of well known person in crypto has like Charlie Lee. Oh, it's true. I mean, Charlie Lee sold all his Litecoin holdings, you know, in a very public way. Yeah. So he could do years ago so that he could make comments about Litecoin without everyone hating on him. Jinx. We also just did an interview with Charlie Lee and you can check it out in the link. All right. So another fun way to end this segment is that you can see on my shirt, it's Bitcoin, Bitcoin and Benjamin, Bitcoin and Benjamin and we're going to have a small contest. So anyone comments below the best caption they can think of for this t-shirt and they get to win this t-shirt. That was Coffee and Crypto. I'm Olivia and I'm Molly Jane. Make sure to read more news on our website as well as longer features and don't forget to subscribe. 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