Bitcoin reaches $50,000 following Ethereum's rise

Bitcoin Foundation chairman on the cryptocurrency hitting three-month high

Bitcoin Foundation Chairman Brock Pierce explains what he believes is fueling the recent rise of the cryptocurrency.

Bitcoin was trading more than 5% higher on Thursday morning at $49,800.

Bitcoin pulled back slightly after hitting $50,000 for the first time since Aug. 23, following Ethereum’s move to $3,700, its highest level since mid-May.

Dogecoin is trading at 30 cents per coin, according to Coindesk.

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Regulators on Wednesday sued an offshore company that allegedly conducted one of the biggest scams ever involving cryptocurrencies.

The Securities and Exchange Commission accused BitConnect and its founder, Satish Kumbhani, of a $2 billion fraud that misused bitcoin raised from investors world-wide, according to the Wall Street Journal.

An American promoter for the scheme, Glenn Arcaro, pleaded guilty in federal criminal court over his role.

BitConnect sold its own digital asset in 2016 in exchange for bitcoin.

BITCOIN, ETHEREUM, DOGECOIN TRUMP STOCKS IN AUGUST

The company said it had an automated program that would make money by trading the contributed bitcoin. Profits would be shared with investors through interest payments.

BitConnect didn't use a program to trade bitcoin, the SEC said. Instead, Kumbhani siphoned off some for himself and shared other amounts with promoters who helped him raise the money. Kumbhani lived in India at the time he conducted the alleged scam. 

Regulators haven't been able to locate him.

Bitconnect and Kumbhani couldn't be reached for comment. An attorney for Arcaro didn't immediately return messages seeking comment, according to the Journal.

In other news, the cryptocurrency exchange Binance's founder and chief executive officer Changpeng Zhao said that its U.S. arm could have an initial public offering in the next three years, according to Reuters.

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Binance.US is also set to close on a large private fundraising round in the next two months that should reduce his control of the board, Zhao said in an Zoom interview with The Information.

Binance generated $800 million to $1 billion in profit last year, according to Zhao.

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