So, hi, I'm Molly Jane, head of news. And
I'm Olivia, head of editorial. And this is
Coffee and Crypto.
Firstly, we are going to talk about FedNow,
which is the Federal Reserve's new idea for
an instant payment settlement system.
Don't give it all away.
I'll have nothing to say.
Okay.
Molly you're going to tell me about
Binance allegedly leaking KYC info.
Allegedly, right.
I said allegedely.
I am underlining it.
And you're also going to tell me about the
Coinbase Bitcoin Cash case.
Yeah.
There is a new ruling on that. The 
old case
but the new ruling.
And that'll be it for the week.
That'll be 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.
I know now.
making a system for real time payments, real
time settlement that is going to
so first of all it doesn't exist yet.
They announced it and they're developing it.
They want to launch it, I think in 2023-2024.
And the main idea is to make a payment system
that you can use 24/7.
And 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.
Ok.
That's a big point.
Yeah, it's a big one.
And does it sound like anything
you know about?
It sounds just like cryptocurrency in general , but I think
more specifically Ripple because Ripple is using
XRP and the other X traffic system are really
the ones that are trying to work with real
time settlement specifically in terms of remittances.
But that's international, right?
I mean, we are not going to shill Ripple
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.
and Bitcoin.
And was it Pomp who tweeted
that? he said we already have Bitcoin.
Yeah, 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 It's definitely not publicly anything
related to blockchain.
But we don't know that yet right?
Yeah.
Not to confuse people.
It's not like telling the Fed made like a
blockchain based system or they have made
their own crypto.
Absolutely not.
They didn't.
As far as we know.
They are hiding it.
Well, I just hear the word real time payments
settlement system.
And I think that that can only be done in
blockchain.
And if you're a tech person, tell me what
the other options are.
I just live in this bubble and everyone is
just all about DLT, all about blockchain
so the fact they can do without blockchain
makes me wonder why didn't they do it before?
Allegedly the Fed registered this product
as early as 2008.
Was that before or after the financial crash,
though?
During.
I think so.
OK.
I'm not sure.
What would be interesting if they did register
it during the whole financial meltdown, because
that would show that people at the Federal
Reserve were thinking along the lines
of Satoshi Nakamoto, like they are just trying
to come up with different ways to improve
on our traditional financial system.
Right.
And then the project got sort of forgotten
about and died.
And now it's being reborn.
It's funny. In the sort of hype of crypto,
but it's also late.
Yeah, it's late
But it is funny to think that was before Bitcoin.
Yeah.
What could have been?
Fed coin?
I know, I know.
I know.
It is not.
I'm sure somebody has made a Fed coin now
and they're trying to trick people online.
No, it's not a thing. That's a scam.
I don't know.
Bitcoin scams are happening everywhere.
There is another piece this week that talked
about how many millions of dollars was lost
on those  Bitcoin sextortions scams this
year.
Where it's like you get an email saying, I
have a video of you watching porn and 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 with Bitcoin.
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 point five bitcoin because I have
a video of you watching porn.
My aunt is like in her 60s, happily married.
Not that watching porn you can't If you're married.
Molly, so conservative.
I'm sorry, that's not what I meant.
The point was it wasn't her.
She knew it wasn't her.
Yes.
We were traveling Europe together.
We were together.
It wasn't her.
And she didn't pay them.
But weirdly, that same 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 really aren't real, but they
somehow fetched her.
So our question for our audience members is
that happened to my aunt.
If any of you guys have been victims of any
sort of Bitcoin scam, you can comment below.
Crypto scams, not just Bitcoin.
One thing that I know is on our Web site all
the time is people commenting, Binance
trying to give away.
No one does giveaways like they really just
don't do giveaways.
There are airdrops.
There are real things.
And if you see Binance commenting on an article
Not Binance, but like fake Binance
If you see Binance commenting on one of
our articles about UK IRS taxes saying send me
money and I'll send you more money.
It's not real.
Don't fall for scams in the comments section
of the Cointelegraph Web site or on YouTube
or on Twitter.
We're never gonna 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 in their passport.
Right.
The kind of photo that you'll send for KYC
and that you don't want to then be on the
Internet.
Right?
That's 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 that indicate
he's not a hack of Binance itself.
But what I found the most interesting about
this story is that it was reported in January
of this year, January 19, that some exchanges,
I think it was Binance, Poloniex and another
one, a third party KYC service was compromised.
So my theory is that these are photos from
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.
Wait, 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 KYC verification because
of the high volume of requests.
So they're investigating that vendor.
OK.
So there's a suggestion there's a listing
of all those the vendor.
OK.
Is it your brilliant theory?
No, no, no, no.
It was Dovey Wan who pointed it out on Twitter in the first place.
Oh, OK.
The hacker is demanding 300 bitcoin to make
it private.
They already released it.
Whatever.
Bad people do really stupid things.
The hacker also claims that he has KYC information
from other exchanges which are also back from
that January news media frenzy about that
time.
It clamed 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 a thousand dollars
like it has done in the past.
So that was nice.
If you've ever had an interesting revelation
to do with KYC, 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.
What are you more concerned about when you
sign up for an exchange?
When you make an account on an exchange, you tend to be more concerned about your funding compromises?
That is what is keeping you away from centralized exchanges
Or you are more concerned about going through the KYC process?
Is that because it's annoying and unconvenient
or because you're concerned about your privacy?
All of these issues.
You can comment on any of them.
I mean, personally, I don't really care
if my picture of myself on my passport is
leaked as long as my Bitcoin is safe.
This week, a judge in the United States ruled
in this court case has been going on since
the Bitcoin Cash forked.
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.
They were upset that they 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.
Now, this lawsuit claiming that it was something
that was actually fraudulently and there were
even claims of insider trading.
I mean, as in Coinbase employees knew this
was going to happen and they were able to
buy a bunch of Bitcoin Cash to make it available
on Coinbase, sell it for super high price
and stop the training.
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
incompetency, the complaint does not outline
a coherent account of fraud by Coinbase.
Brian Armstrong
And then Farmer, another Coinbase in play.
So overall, it's not great what happened with
Coinbase.
They're saying basically that they were incompetent,
but 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
It's because of the name recognition.
And so this kind of 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.
Yeah.
Not Coinbase Pro, Coinbase,
the retail version or whatever they call it,
their wallet is very limited in terms of the
coins on it.
They're looking
into adding more coins this week.
Right.
But every time they say that those coins get
pumped or something happens, it matters.
Like every time Coinbase says they're thinking
about a coin or they add a coin , Like the
coins price is affected significantly, potentially
more than other exchanges centralizing changes
It just has the 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.
My point is going to be added.
It causes more of a ripple.
Yes.
Right.
So this is not just about Bitcoin cash.
I mean, the Bitcoin cash case is really important
because people filed a lawsuit about it and
it's a particular bitcoin.
But like this is an issue that Coinbase has
with their sort of PR process. That they go
through when they list a coin and then they
talk about listing coins like it's because
little hints.
And that arguably could be seen as manipulation.
I mean, they know as anyone in 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 well-known
person in crypto has, like Charlie Lee.
No, it's true.
I mean, Charlie Lee sold all his own Litecoin holding in a very public way.
Yes.
So he could make comments about Litecoin without everyone hitting on him.
We also just did an interview with Charlie
Lee.
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. 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 web site
as well as longer features.
And don't forget to subscribe.
It's very important.
And we'll tell you why next time.
Cointelegraph. Like,subscribe and hodl.
