President Trump just issued a pardon for BitMEX’s three founders, who pled guilty to money laundering charges in 2022. Unlike the case of Ross Ulbricht, there was no popular movement for these pardons, sparking community confusion.

Since the pardons went out, Sam Bankman-Fried’s Polymarket odds of receiving a pardon have skyrocketed. However, this has also created a sense of unease, especially with the rampant scams and frauds in crypto today.

Trump Issues BitMEX Pardons

BitMEX is a centralized exchange with a long history in the crypto space, but it has faced its share of controversies. In 2020, it was sued in the US for alleged money laundering.

Its founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, pled guilty to violating the Bank Secrecy Act, but President Trump just pardoned all three in a shocking move.

Trump did little to publicize these pardons, as neither he nor any of the recipients have yet made a public statement regarding the move. These men only faced fines, probation, and house arrest, and all were completely free at the time. Arthur Hayes remains an influential commentator, but he has no further involvement with BitMEX.

To call this move unexpected would be an understatement. Trump has given other crypto-related pardons, like with Ross Ulbricht, to be fair.

However, Ulbricht’s case was a cause célèbre in the community. There were no corresponding vocal calls to issue BitMEX pardons, especially considering the founders’ light sentences.

In short, most of the crypto space’s reactions have been negative. At the time, even government crypto allies like “Crypto Mom” Hester Peirce supported the BitMEX arrests, and money laundering has never been popular in the space. The crypto community is struggling to find a clear motivation for Trump’s pardons other than outright corruption.

“My God, everything is for sale. I think he’ll pardon Sam Bankman-Fried,” said author Jacob Silverman.

For the last few months, FTX mastermind Sam Bankman-Fried and his family have been lobbying President Trump for a pardon. The community mostly considered this possibility a long shot, especially because Bankman-Fried directly opposed Trump in the 2020 election. Since the BitMEX pardons, Bankman-Fried’s Polymarket odds have shot up:

In short, it doesn’t even look like this will be bullish for the markets. The crypto industry is in an unprecedented wave of scams, and some commentators worry that it could damage industry confidence. If Trump continues issuing pardons without a clear reason, it may embolden bad actors.

According to ZachXBT, a Coinbase user lost $34.9 billion to scammers on Thursday, March 27. However, this is not an isolated trend, as Coinbase users have collectively lost more than $46 million to scams in March.

Scammers are targeting the exchange’s user base with a long track record of success. Coinbase customers should be on alert for social engineering attempts

Coinbase Scams are Growing Out of Control

Despite being one of the world’s largest crypto exchanges, Coinbase has been under scrutiny as its users are increasingly falling victim to scams. For over a year, sophisticated social engineering operations have been responsible for massive thefts.

According to ZachXBT, these scammers are showing no signs of stopping:

“It is suspected a Coinbase user was scammed yesterday for $34.9 million. After uncovering this theft, I noticed multiple other suspected thefts from Coinbase users in the past two weeks bringing the total stolen this month to $46 million+. Coinbase has not flagged any of the theft addresses from these victims in compliance tools,” he said via Telegram.

ZachXBT, a prominent crypto sleuth, has been persistently tracking scams against Coinbase users. Over the last few months, he’s identified several big crimes that relied on social engineering instead of outright hacks.

For example, last November, criminals posing as Coinbase Support managed to steal over $6.5 million.

This has reached the point where he claims that Coinbase is in a crisis of fraud and scams. Last month, ZachXBT estimated $150 million in annual losses, and he has now upgraded this to $300 million.

He hasn’t named any of his theories about the culprit or culprits. It could be an organized group, multiple independent actors, or other possibilities.

However, the exchange’s response to these events has been rather underwhelming. ZachXBT claimed that Coinbase has been downright passive about these huge scams, failing to warn users or cooperate with investigators.

In a recent social media post, he accused Coinbase of apathy towards these incidents:

“I have yet to see an incident where Coinbase flagged theft addresses. They are part of the problem, it shows they are not taking care of users,” he claimed.

Overall, given the increasing rate of these scams and the staggering amount of funds lost, Coinbase’s users should certainly be cautious about social engineering threats.

HBAR recently failed to breach the key $0.200 resistance level, leading to increased volatility. Despite this setback, the altcoin may experience a short burst of bullishness in the near future. 

While challenges persist, the market may see a brief price surge before further fluctuations take place.

HBAR Is Facing Mixed Signals

The correlation between HBAR and Bitcoin has dropped to 0.8, inching closer to falling into the negative zone. This indicates that HBAR is beginning to decouple from Bitcoin’s movements. If the correlation continues to weaken, HBAR may struggle to benefit from Bitcoin’s recent stabilization above $85,000, as seen in the broader market.

The decline in correlation suggests a shift in market conditions for HBAR. If it no longer follows Bitcoin’s price actions as closely, the altcoin could face additional challenges. With Bitcoin stabilizing, HBAR could find itself in a more isolated market position, hindering its ability to rally alongside Bitcoin.

Looking at HBAR’s macro momentum, technical indicators like the Bollinger Bands show signs of a tightening squeeze. This squeeze is often a precursor to a major volatility spike, which is expected to hit HBAR soon. Historically, when the candlestick closes below the basis line during such squeezes, a sharp price surge follows.

As the Bollinger Bands tighten, volatility for HBAR is likely to increase. The squeeze typically leads to a breakout, and in HBAR’s case, a brief surge in price is expected. However, this spike may be short-lived, with the potential for HBAR to experience further challenges after the initial burst of movement.

Can HBAR Price Finally Breach The Key Resistance?

Currently trading at $0.183, HBAR is struggling to breach the $0.200 resistance. However, the altcoin could be on track to break this barrier in the short term. The current market dynamics suggest that a brief surge past $0.20 is likely, offering a potential opportunity for traders.

Given the market factors, HBAR could see a short-term price spike before eventually falling back again. This pattern has been evident since mid-January, and it is expected to repeat. As a result, HBAR could push past the $0.200 resistance and reach $0.222 or $0.250 in the near future.

However, if the declining correlation with Bitcoin continues to weigh on HBAR’s price, the altcoin may struggle to hold above key support levels. A failure to sustain momentum could result in HBAR falling below the $0.177 support, potentially dipping to $0.165. This would invalidate the bullish outlook and reinforce the ongoing bearish trend for the altcoin.