A $2B Gold Fraud Portrays Bitcoin as “Less Vulnerable” Alternative

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Bitcoin found itself competing with traditional safe-haven gold all over again as authorities in China uncovered a $2 billion fraud. Kingold, one of the mainland’s most significant gold processing firms, allegedly collateralized 83 tons of fake yellow metal bars to secure 20 billion yuan (~$2.82 billion) worth of loans. Robert Breedlove, chief executive of crypto hedge fund Parallax Digital, used the case to present Bitcoin as a more auditable alternative to gold. Bitcoin is battling gold over its so-called superior properties all over again as the Chinese authorities uncover a $2 billion fraud involving the precious metal. The scam involved Kingold, one of China’s largest gold processing firms. Nikkei Asian Review on Monday reported that the Nasdaq-listed company borrowed $2.82 billion from China Minsheng Trust Co. Ltd and others. In return, it collateralized the loans with gold bars. Adulterated Gold Collateral Kingold failed to pay back its debts on time,…

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