- Judge Dismisses $200M Damages Claim in Sim-Swap Lawsuit.
- Venezuela, Ukraine, and Russia are leading the world in crypto adoption.
- GBP/USD Falls Below Key Resistance Levels on Risks of No Brexit Deal.
In today’s edition of Overbit Weekly Round Up, we round off the week by taking a look at what’s happened over the week, as well as what we may see going forward. To kick things off, we take a look at a legal proceeding making headlines in California.
In the early hours of Wednesday, 9th September, it was revealed that a California judge has thrown out a $200 million damages claim brought against AT&T by a cryptocurrency investor named Michael Terpin. This case dates back nearly two years to 2018 August, when Terpin was the victim of a sim-swapping attack. This attack resulted in his cryptocurrency funds being hacked and drained, a personal loss of nearly $24 million, and he blames the telecom giant. Of course, AT&T has tried to get the entire case thrown out since the beginning. However, in the initial proceedings, the judge ruled as follows: “Mr. Terpin alleges sufficient facts for the Court to reasonably infer the hackers may have used 2FA methods to glean Mr. Terpin’s personal information from various accounts, such as email or cloud storage.” This original ruling gave Terpin room to move forward, alleging that AT&T had engaged in fraudulent and/or negligent behaviour which resulted in the eventual cryptocurrency hack.
However, this recent judgement by Judge Otis Wright II of California puts to rest the majority of Terpin’s grievances. He states that Terpin failed to demonstrate how AT&T intentionally misled or misrepresented its 2FA policy. Furthermore, the judge threw out all allegations that AT&T employees neglected their duties by not protecting Terpin’s phone number. By doing so, the lone claim Terpin can continue to pursue is punitive damages, which means he can still seek the original $23 million lost.
Moving towards a more macro-level story, we take a look at a recent report involving major countries and their cryptocurrency adoption rate. Chainanalysis published data this past week in an attempt to gauge and rank different countries on their levels of cryptocurrency activity. According to their report, the “Global Crypto Adoption Index 2020”, Ukraine is in the first place, followed by Russia and Venezuela.
This index takes in a multitude of different factors, considering factors like exchange activity, P2P activity, and on-chain deposits/transactions - all of which are weighted against some region-specific metric like purchasing power per capita (PPP). Like any index, these rankings are not to be taken at 100% face value. Due to the weighting of these different factors, several countries like China and the USA are remarkably lower on the list than one would expect, and smaller, emerging countries like Kenya are much higher. Regardless of methodology, this report does illustrate a poignant point: cryptocurrency is not going away. Even in regions like Venezuela, China, and Vietnam where government officials have tried to crack down on its usage, it seems clear the overall trend for cryptocurrency is one way: Up.
To round up this issue, we move to the forex markets, and more specifically, GBP/USD. In recent weeks, we’ve talked about the lack of momentum for most forex pairs versus the dollar, especially with the USD Dollar having been at this precarious & significant level. More importantly, we’ve talked about how this past forex rally was primarily driven by USD weakness. Now that those fears have temporarily subsided, it seems forex pairs are playing out their own narrative.
Zooming in on GBP/USD, we can see the pair has hit six-week lows, falling below the psychological $1.30 level. The Pound-to-Euro ratio looks equally grim with dips below €1.10. It seems the newest scare for British Sterling is a recurring nightmare: fear of a no-deal Brexit. The resurgence of this fear was triggered by the resignation of the head of the UK government’s legal department, which is reportedly in response to Boris Johnson’s plans to override part of the EU withdrawal agreement. Without any news on the economic calendar to look forward, it seems this downtrend will continue for GBP/USD, especially after closing under the $1.30 level. With every edition we write, it seems the markets are only increasing in volatility and complexity. This means traders & investors have a growing chance to win (and lose) in today’s markets. Your best place to take that chance is always at Overbit.com.
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