Blockchain Refactoring of 2nd-Largest Bank
China Construction Bank (CCB) has finally launched its blockchain-based refactoring platform. The bank is the second-largest bank by operating assets.
Aiming commercial factoring business, CCB plans to boost its operations and chop some major risks in its refactoring business. At the same time, it seeks to give shared data access by multiple participants.
In a report of Chinese outlet Sina Tech on December 6, factoring companies represent third parties that purchase invoices at a discount. And this is to support the businesses in raising funds.
In addition to that, the news came following CCB’s official release of the second version of its blockchain trading platform last October. The product, named BCTrade 2.0, reportedly hits $50 billion in cumulative transaction volume. Based on some sources, the bank’s blockchain trading financial platform facilitated domestic letters of credit, forfaiting, international factoring, and also refactoring.
CCB became a part of the big four banks in the People’s Republic of China. With the application of BCTrade, it allows the digitization of trade and financial services between over 54 domestic and foreign institutions. Moreover, these include several state-run and international banks.
Then, more on this, the latest efforts of CCB in blockchain comes to light alongside a report on the Bank of China. In the report, it issued $2.8 billion in blockchain-based special financial bonds for small and micro-enterprises. According to Sina Finance, they specifically used the funds to issue loans to these Chinese small and micro-sized firms. And this is to support their further development in the economy.
Crypto Ponzi Scheme of BitClub
Elsewhere, United States authorities in New Jersey announced the arrest of three men accused of defrauding investors. They got more than $722 million as part of the alleged crypto Ponzi scheme BitClub Network.
Based on the press release, BitClub Network vowed massive rates of return in exchange for investments in a shared cryptocurrency mining pool. Then, the parties at the center of the scheme allegedly misappropriated more than $722 million of those funds into their own lavish lifestyles instead of the promised mining pool.
Furthermore, authorities accused the three men of falsifying details on returns. And this is to solicit a lot more investment.
The accused men are Matthew Goettsche, Jobadiah Weeks – both from Colorado-, and Joseph Abel from California. As of now, authorities are charging the first two with conspiracy to commit wire fraud. This crime carries a maximum prison term of 20 years. Also, they are facing conspiracy to and sell unregistered securities. Then, Abel, who was supposedly less central to the scheme, only received a charged with conspiracy to offer and sell unregistered securities. This charge has a maximum sentence of 5 years in prison.
The press release stated more conspirators who have not been named or charged with crimes.
This is not the first sign that BitClub might not be a fully above-board operation. In 2016, a crypto news outlet warned against investing in BitClub. And this is despite removing an earlier scam label from the company.
Previously, in March 2017, Cointelegraph reported on accusations that BitClub launched a malleability attack in the Bitcoin (BTC) network.