PKF Brisbane issued a disclaimer of opinion on Allocated Bullion Exchange (ABX) for the year ended 30 June 2024. That is not a “qualified” opinion with a few caveats: PKF said it could not obtain sufficient evidence to express any opinion on the accounts. The accounts were signed 7 April 2026 and lodged with ASIC on 28 April 2026 - roughly 18 months after the June 2024 balance date.

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The Kinesis Monetary System has long promoted its Velocity Token (KVT) as a pathway to sustainable yields from a blockchain-based precious metals ecosystem. Launched in 2018 at $1,000 per token, KVT was designed to entitle holders to 20% of transaction fees across the platform. However, seven years later, the token trades below $700, with yields falling far short of projections subsequent to a 2025 ABX audit that clearly indicates Kinesis has been minting unbacked KAU tokens. This analysis examines the token's price and investment trajectory, drawing on blockchain data, SEC filings, and public records.

The $1,000 ICO Price and Initial Hype

Kinesis claims to have raised $200 million in 2018 through the KVT ICO, issuing 255,000 tokens at $1,000 each under an SEC Form D exemption. The offering positioned KVT as a stake in the system's growth, backed by digitized gold (KAU) and silver (KAG). By September 2025, KVT traded at just $686, representing a 31% decline from the ICO price and a 69% drop year-to-date, even as gold reached record all-time highs of over $3,700.

This decline reflects broader failures in the ecosystem, where promised global adoption has not materialized, leaving token holders with diminishing value.

Projected Yields of $711.75 Per Month by 2021

Marketing materials and the whitepaper forecasted annual yields of $8,541 per KVT by 2021, equating to $711.75 monthly. These projections assumed rapid expansion of transaction volumes. In practice, the system's revenue has remained miniscule, undermining the token's value proposition.

The Mint Cycle Scam: Inflated Activity and Artificial Fees

A significant portion of fees originated from November 2020 to May 2022, a period lacking audits. This era featured the "mint cycle scheme," where participants repeatedly minted and redeemed tokens to generate artificial volume in order to claim free KVT token rewards. In four months of 2021, fees reached $14.7 million, compared to $8.8 million over 43 other months. Post-audit revenue dropped to $73,500 monthly. Blockchain records show balances in "Emissions" accounts exceeding 4 million KAU, indicating tokens created without backing. Kinesis relaunched a similar cycle in 2025, raising further concerns.

Sales and Promotion by Citizens for Sound Money (C4SM)

Citizens for Sound Money (C4SM), a non-profit, has promoted and sold KVT to U.S. residents despite its status as an unregistered security. C4SM markets "pre-owned" tokens to evade regulations, but this does not alter the underlying issues. The organization focuses almost exclusively on Kinesis products, with its silver rounds appearing in platform audits. Ongoing recruitment efforts, including payments to promoters, suggest potential violations of tax and securities laws.

Unregistered Security Status Confirmed by SEC Form D

The SEC Form D filing classifies KVT as a security, promising returns from platform fees. Despite this, sales to retail investors continue without full registration. "Community market makers" facilitating trades without licenses, exposing the operation to regulatory scrutiny.

Failed Promise to Enable Trading by End of 2021

The roadmap committed to KVT trading by 2021, but delays persisted. For years, trading was restricted to buy-only on the centralized exchange to maintain an artificial, manipulated KVT price. Holders expressed frustration over inability to sell.

Price Pumping on a Manipulated Market to $2,200

Prior to open trading, KVT was artificially valued at $2,100–$2,200 on Kinesis’ internal exchange. This relied on mint cycling and internal transactions, not organic demand. Disparities emerged, with tokens selling 60% cheaper on external platforms like Stellar

.

Trading Enabled in 2025, Led to Price Drop Below $700

Full trading commenced in early 2025, resulting in a 69% decline from manipulated highs. In September 2025 the token traded as low as $686, with limited liquidity outside the platform's exchange.

Comparative Performance: KVT vs. Physical Gold

A $1,000 investment in KVT at the 2018 ICO price is now valued at approximately $686, a 31% loss. In contrast, the same $1,000 invested in physical gold at the March 2018 average price of $1,326.66 per ounce would purchase about 0.754 ounces.

At the September 19, 2025, gold price of approximately $3,650 per ounce, that holding would be worth approximately $2,753, representing a 175% gain.

This stark difference highlights the underperformance of KVT relative to the asset it claims to digitize. The evidence points to systemic issues in Kinesis, including overpromising, artificial metrics, and potential regulatory violations. Token holders face ongoing risks in an ecosystem showing signs of instability.

It's September 20, 2025, and here we are again: another day, another dodged promise from Kinesis. Back in 2021, they sold us on a shiny new "bailee company," an independent fortress to lock down the gold and silver supposedly backing KAU and KAG. Fast-forward through endless "next audit" teases, and what do we have? A registered shell in Australia (ABN 93 665 798 416, active since February 16, 2023).

Kinesis's terms have preached "bailee storage" since day one: "Kinesis will store bullion as bailee on behalf of all holders."The pitch? Segregate assets, shield users in bankruptcy, and publish crystal-clear financials. By late 2023, CEO Thomas Coughlin was all in: In a September 11 interview, he claimed the entity was "setup already" and they'd flip the switch "before the next audit."

Their Q4 2023 update doubled down: "Targeting a transition to Kinesis Bailee Company... during Q1 [2024]." Q1 2024 came and went. So did Q2, Q3, Q4. It’s now two years later and the empty bailee company shell still sits dormant.

Where is the Kinesis Bailee Company?

Two years after our exposé on Allocated Bullion Exchange (ABX)'s gaping financial black hole, negative $10.7 million in assets and a $26.7 million retained earnings deficit, the Kinesis-connected shell keeps sucking investor cash like a vampire at a blood bank. Fast-forward to July 2025: ASIC filings reveal the Coughlin family (led by Kinesis CEO Thomas Coughlin) control 62.6% of ABX shares for a measly $11k, while Kinesis Cayman Limited overpays $7.3 million for a measly 14.1% stake. And now? ABX is morphing into a "proprietary company structure," code for "good luck tracing our funny money." Kinesis faithful, this is your wake-up call. The Kinesis Klown car is careening toward a cliff.

The Coughlin Share Bonanza: Pennies for Power

ASIC docs paint a Picasso of preferential pricing. Coughlin Financial Services Pty Ltd (run by Michael Coughlin, ABX's CFO and Thomas's brother) and TRAC Financial Pty Ltd (Thomas Richard Archer Coughlin) each snapped up 4,251 ordinary (ORD) shares for $5,501 apiece. That's 8,502 shares total for ~$11k, equaling 62.6% control. David Alexander Charles? 125 shares for $500, pocket lint for a board seat. Enter Kinesis Cayman: They forked over $7,320,814 for just 1,914 shares (14.1%). Outsiders? Millions dumped in, per ABX's spotty filings. This isn't investment; it's insider enrichment. ABX's FY2022 statements filed late in November 2023 demonstrate how $23 million AUD flowed from Kinesis to ABX, vanishing into $4 million salaries, $6 million "professional fees," and zilch for investors.

The $40M+ Money Vacuum: Where Did It Go?

Since 2018, Kinesis has funneled over $40 million to ABX, their "strategic partner" and gold/silver vault holder. Claimed $370 million in metals? Supposedly bought via ABX. But ABX's books scream insolvency: Profits in FY2022 evaporated into insider pockets, with no dividends or growth for outsiders. Audits? Shoddy at best and issued to ABX, not Kinesis, skipping weighments and scale details since 2023. Thomas Coughlin, dual CEO of Kinesis and ABX, pitches this as "digital trackable trade". Reality: A conveyor belt from user wallets to Coughlin’s coffers. Deposits routed through ABX and Indonesian shells, evading scrutiny. No wonder redemptions drag with users waiting months for "their" gold.

Proprietary Pivot: The Opaque Rebrand to Oblivion

July 2025 bombshell: ABX's converting from public to proprietary limited company. Why? "Better hide what we're doing," as our thread nailed it. Public filings exposed the rot; now, financials go dark. ASIC still lists ABX as regulated, but proprietary status means no mandatory disclosures, perfect for laundering Kinesis cash.

This echoes Kinesis's USD1-to-C1USD sleight-of-hand: Rebrand the fraud, promise yields/insurance, deliver zilch. ABX's move? Straight from the FTX playbook, opacity until the house of cards collapses.

Red Flags That Howl "Exit Now"

Blatant signals:

• Insider Fire Sale: Family grabs majority for $11k; Kinesis overpays by millions

• Cash Black Hole: $40M+ to ABX, zero user benefits

• Salaries and "fees" eat it all

• Audit Farce: Wrong entity, missing data, and "trust me bro" since 2020

• Regulatory Dodge: Cayman/Indonesia/Australia shells; unclear licenses for US, EU, UK and Canadian operations

• Redemption Nightmares: Months-long waits, KYC traps to silence complaints Token Tank: KVT down 65% YTD amid gold ATHs

• The Latest ABX audit exposes more tokens in circulation than claimed gold holdings

Psychology? Brazen entitlement. Coughlin’s bet on gold bug FOMO, hiding behind "allocated" jargon. But filings don't lie.

Don't Feed the Beast: Demand Real Audits, Ditch the Dream

ABX's share scam and proprietary pivot aren't glitches, they're part of the grift. Kinesis users and investors have subsidized a family empire. Pull out, demand real audits (Big Four, not ABX proxies), and report to ASIC/FinCEN. This $370M "vault" is a mirage built on your backs.

Eyes wide open, it’s time to get out now!

Nine months after launch, and now with a shiny rebrand to C1USD, Kinesis's stablecoin scam shows no signs of slowing. Our previous deep dive exposed the stark disconnect: a token claiming third-largest USD stablecoin status with $12 billion in circulation, yet backed by virtually no on-chain activity, users, or economic substance. Fast forward to September 2025, and the fraud's fingerprints are even clearer – from missed "attestations" to unproven yield promises. This isn't evolution; it's evasion. Investors, steer clear.

The Rebrand Smoke Screen Thickens

Kinesis announced the shift from USD1 to C1USD in early September, touting "enhanced features" like 7.5% risk-free yields and "full insurance." Sounds revolutionary? Only if you ignore the basics. No proof of insurance has materialized, no custodian details, and the underlying token remains a ghost. This rebrand feels like a desperate pivot amid growing scrutiny – remember, our last report highlighted how three Ethereum addresses controlled more than 99% of supply, with two hoarding 3 billion tokens each? Nothing has changed.

Why rebrand now? Simple: to distance from the USD1 stench. But the math doesn't lie. On Stellar (their "primary" chain), lifetime volume sits at a pathetic $92,739 across 636 transactions and 20 holders. Ethereum? 70 transactions ever, 15 holders.

Legit stables like USDC process billions daily with millions of users.

August Attestation: MIA and Laughable

Kinesis promised monthly "independent attestations" via their go-to Barry Jorey Herrscher of the one-man Houston law firm Herrscher Group. July's letter? A farce claiming over $14 billion in reserves without audits or transparency.

August's? Overdue by 18 days as of this writing. Their site still lists prior months, but crickets on the latest.

This isn't oversight; it's obstruction. In a space where even Tether faces heat for limited attestations (yet backs it with billions in volume), Kinesis's single-lawyer rubber stamp “attestations” scream fraud. No Big Four involvement, no custodial verification – just words on a page.

Yield and Insurance: Promises Without a Penny

The C1USD pitch: 7.5% yields, fully insured, all "risk-free." Bold claims for a token with hardly any liquidity, virtually no users, and reserves that exist only in marketing decks. Where's the proof? Absent. No yield mechanism detailed, no insurance policy disclosed. It's the classic scam playbook: dangle carrots to lure the unwary, then vanish when pressed.

Compare Kinesis C1USD to their peers:

Red Flags That Scream "Run"

Key indicators:

• Centralization Masquerade: 99.9% supply in three wallets – coordinated manipulation to fake circulation.

• Peg Wobbles: Trading as much as 20% off-peg, with insufficient volume to stabilize it.

• Media Black Hole: Zero mainstream coverage for a "third-largest" stable. Smaller projects get roasted; this flies under radar.

• Regulatory Dodge: Australian entity, Texas attestations – a web of shells to evade oversight.

• Psychological Edge: Exploit crypto's Wild West. Point to Tether's "success" as proof limited verification works. (Spoiler: It requires actual users.)

The psychology? Brazen. Crypto fraud operators bet on complexity - most wont’ verify on-chain data or question attestations. But we do.

A Cautionary Tale: Don’t Trust and Always Verify

Kinesis USD1/C1USD isn't just risky; it's a textbook fraud exploiting nascent regs and investor apathy. With no August proof, empty yield hype, and a rebrand that changes nothing, this $12 billion claim is pure illusion. Demand on-chain truth, transparent audits, and skepticism for extraordinary boasts.

Today, we turn our attention to the other elephant in the room: Kinesis USD1, the so-called "$12 billion stablecoin." Six months in, the on chain data tells a story of neglect, centralization, and potential deception that demands scrutiny.

The Numbers Don’t Lie

Let’s start with the facts. On the Ethereum blockchain, USD1 boasts a max supply of 6 billion tokens, yet it has only 8 holders and a mere 31 transactions. The top three addresses control over 99% of the supply, with two holding 3 billion each and a third holding 426,135. On the Stellar blockchain, the picture is no better, 27 holders and 470 transactions—but the total all-time volume is a laughable $92,690. Worse still, as of Friday June 13, 2025, USD1 was trading at $0.9525, off its 1:1 USD peg.

Compare this to real stablecoins like USDT and USDC, which have millions of holders and robust transaction volumes. USD1’s claim to be the "third largest stablecoin" is a circus act, not a financial instrument.

A Pattern of Red Flags

This isn’t the first time Kinesis has raised eyebrows. Back in February, we analyzed the laughable "attestation" letter from Herrscher Group, which promised $15 billion in reserves with no independent audit, transparency or custodian indicated. The latest letters, stamped with pixel-perfect signatures matching prior documents, only deepen the suspicion. The procedural irregularities suggest a house of cards rather than a stable foundation.

The concentration of USD1 in a few hands mirrors the centralization issues we uncovered with Kinesis Stellar fork. This isn’t decentralization—it’s a fully centralized sham masquerading as innovation.

The $12 Billion Question

Kinesis markets USD1 as a $12 billion asset, yet its real-world utility is nonexistent.

The implications are clear: USD1 is not a viable stablecoin. Its low adoption, peg instability, and extreme centralization make it one of the most obvious scams in the crypto industry. Stakeholders should immediately demand fully transparent third-party financial audits and verifiable reserve data; standards Kinesis has never meet for any of their products.

Some time after June 6, 2025, Kinesis released an April 2025 Allocated Bullion Exchange (ABX) audit with the usual 5-6 week delay. The audit is provided below in its entirety because the details are so crucial.

As you can see, the audit alleges that 1,510,101.495 grams of fine (pure) gold were held by ABX on behalf of Kinesis and were inspected between April 21 and April 24, 2025.

The problem? Both Kinesis own centralized exchange and the block explorer for their [fully centralized] “blockchain” showed much higher circulations during the entire audit and even 5 full days before the audit began.

Let’s look first at the circulation charts from Kinesis CEX.

As you can see above, Kinesis Exchange showed 1,963,000 KAU in circulation at 00:00 UK time on April 16, 2025, five days before the audit began. Between the 16th of April 2025 and the end of the audit on April 24, 2025, the supply increased to 3,986,000 KAU, according to the exchange data.

But what did the Kinesis block explorer say? On April 24, 2025, it showed 3,670,507.0122 KAU in circulation, while Kinesis users posted screenshots showing 3,247,000 KAU in circulation on April 22 on Kinesis now private full KYC user forum.

Another screenshot showing 2,609,401.4952 KAU in circulation according to the block explorer was posted to the forum on April 22, 2025.

There is no amount of mental gymnastics Kinesis can do to excuse this. They have exposed themselves manipulating their audits, KAU circulation, or both, and it’s all been exposed on their own exchange, block explorer, and user forum. The game is over.

Since its launch in December 2024, USD1 has attracted no exchange listings beyond Kinesis’ own exchange. USD1 is currently held by only 13 unique addresses and has less than 2,500 on chain transactions. USD1 is evenly split between the Ethereum blockchain and the Stellar blockchain with a circulation 6 billion tokens on each chain.

Despite its purported status as the third largest stablecoin in the world, and the 11th largest cryptocurrency overall (beating out Chainlink by nearly $1 billion), USD1 has attracted no mainstream media coverage.

Kinesis has been unable to hold USD1 to its $1 peg on either Stellar SDEX or their own exchange.

What proof does Kinesis offer of the $15 billion USD they claim is backing their $12 billion USD1 tokens? A single page letter from an unknown Texas attorney.

Let’s take a closer look at the attestation:

Lack of Specificity and Verifiability

The letter claims $15 billion USD is "blocked and available" at a "top 10 premier European Bank" to back Kinesis USD1, but it provides no specifics—no bank name, no account numbers, or any verifiable proof of funds. In financial attestations, especially for a $12 billion stablecoin like USD1, such vagueness is a glaring red flag. Legitimate attestations for stablecoins (e.g., USDC) name custodians like BNY Mellon or BlackRock and provide a detailed breakdowns of assets.

Without identifying the bank or providing a mechanism for independent verification (e.g., a public audit, bank statement), this claim is unverifiable and meaningless. It’s akin to a blank check—impressive on paper but worthless without substance. This mirrors historical stablecoin frauds like TerraUSD, where opaque reserve claims preceded collapse.

Excess Reserves

The letter claims $15 billion in reserves, exceeding Kinesis’s stated $12 billion USD1 circulation by an absurd 25% margin. While over-collateralization isn’t inherently suspicious (USDC only maintains $200 million in excess reserves for $56 billion tokens), the gap raises questions:

Kinesis’s December 2024 announcement claimed $15 billion in reserves for $12 billion in circulation, but no subsequent updates or detailed breakdowns have been provided. A second letter, dated January 20, 2025, repeats the figure without indicating any changes in circulation, redemptions, or reserve composition.

Stablecoins like USDC maintain reserves in highly liquid, diversified assets (cash, Treasuries, etc.), audited by Big Four firms. Here, the lack of asset detail (e.g., cash, cash equivalents, or illiquid holdings) and reliance on a law firm’s attestation rather than an accountant’s audit is highly irregular.

The repetition of a round $15 billion figure without evidence or updates suggests a static, fabricated number rather than a dynamic financial reality. It’s suspiciously convenient, especially given Kinesis’s history of opaque reporting with retards to its KAU and KAG tokens.

Legal and Regulatory Implausibility

The letter claims the funds are “clean, clear, and of non-criminal origin” with “no liens or encumbrances,” declared under penalty of perjury under Texas and U.S. law. However, a law firm attesting to the legality of funds isn’t standard practice for stablecoin reserves. Typically, banks or auditors provide such assurances, not attorneys, especially not for custodial backing of a digital asset.

Kinesis USD1 operates out of Australia and teh Cayman Islands, not Texas or the U.S., raising jurisdictional questions. Why would they rely on a Texas attorney for an attestation?

The legal language is performative but hollow, designed to impress rather than inform. It’s a common tactic in crypto scams to use U.S.-based legal jargon to mislead investors, especially given the lack of regulatory oversight in the Cayman Islands.

Kinesis’s Track Record

Kinesis’s past with KAU and KAG tokens shows a pattern of incomplete transparency. Audits for those tokens were sporadic, often performed by obscure entities (e.g., HititVal Cargo), and failed to tie physical assets to on-chain supply. If USD1 follows this pattern, this attestation from Herrscher Group fits the mold of a hastily assembled, untrustworthy document.

The letter aligns too neatly with Kinesis’s history of opaque reporting, suggesting it’s part of a broader strategy to create an illusion of credibility without any real substance.

Conclusion: This Attestation Is a Sham

This "Letter of Attestation" is almost certainly fraudulent or misleading, based on its unverifiable claims, obscure entities, and lack of specificity or regulatory adherence. It’s a textbook example of a crypto scam tactic—using legal-sounding language to lend false legitimacy to a stablecoin’s reserve claims. Kinesis’s USD1, already under scrutiny for its massive $12 billion launch and peg stability issues, now has an attestation that fails every reasonable test of credibility.

If this document were genuine, it would include:

• A named, verifiable bank with a public statement or audit.

• A reputable auditing or accounting firm, not a law firm.

• Transparent details on reserve composition and liquidity.

This attestation is not just questionable, it’s almost certainly a complete fabrication.

After years of delays, and after “upgrading” KVT security tokens to the Stellar blockchain, KVT is now freely trading on the Stellar SDEX.

Over the past 24 hours, KVT has traded between $280 and $550 on volume of $56,242.

As of February 19, 2025, Kinesis was still claiming the fair market value of KVT tokens is $2,000 each with over 100 tokens still for sale on their own exchange.

After literally years of requests to authenticate their error-ridden Allocated Bullion Exchange (ABX) audits, Bureau Veritas has finally broken their silence with a bizarre response:

From: Theresa CLARK <theresa.clark@bureauveritas.com>
To: <redacted>, InfoukMail <info-uk@bureauveritas.com>
Cc: Jade Clemenson <jade.clemenson@bureauveritas.com>

Date: 18 Feb 2025, 15:36

Good afternoon <redacted>,

Please accept my sincere apologies for the delay in responding to you. To validate authenticity please contact the client directly as this is their property.

Many thanks,

BUREAU VERITAS
Shaping a World of Trust

Theresa CLARK

Client Services Manager - Metals and Minerals UK

Is Bureau Veritas actually telling us to check with the entity suspected of forging or manipulating their audits to determine their authenticity?

It would seem this is an open invitation to fraudulent entities to fake Bureau Veritas audits.

What value could these “third-party audits” possibly have if the auditor refuses to authenticate their audits?

First Digital USD ($FDUSD) has continued to grow with little scrutiny or media attention and now boasts a market cap of almost $2.5 billion. Let’s have a look at the latest stats on FDUSD to see what’s changed over the past three months.

FDUSD has only 1,791 unique addresses and less than 12,000 onchain transactions.

Compare this with TrueUSD ($TUSD), a stablecoin that until recently had a similar market cap but is now only about 15% ($373 million) the size of FDUSD. TUSD has 51,603 unique addresses and over 1.5 million onchain transactions.

The ownership of both tokens is laughably concentrated in the top 10 addresses. 84.8% of TUSD is held by the top 10 addresses, with 13.6% held by a known Binance address. 99.2% of FDUSD is held by the top 10 addresses, and all of those addresses are known Binance addresses, except the last one, which holds 0.25% of the total supply ($6.1 million). This means that over 99% of the total supply of FDUSD is held by just nine Binance wallets. What is the point of this token even existing onchain at all? It’s controlled entirely by Binance, and it’s virtually unused onchain.

How about volumes? Surely a token with so little adoption would have very low volumes.

Actually no, FDUSD routinely ranks in the top 5 crypto tokens for daily volume world wide.

FDUSD volume has even outranked USDC despite the fact that USDC is an order of magnitude larger and is listed on hundreds of exchanges.

USDC also has over 2 million unique addresses and nearly 90 million onchain transactions, indicating its adoption is multiple orders of magnitude larger than FDUSD.

USDC is significantly more decentralized than FDUSD, with only 18.6% of the total supply controlled by the top 10 addresses as compared to FDUSD at 99.2%. You can also see multiple exchanges represented in the top 10 holders of USDC.

Perhaps the most stunning fact about FDUSD is how much of Bitcoin’s total spot volume it is responsible for via a single pair on Binance.

Over the past 24 hours, FDUSD has been responsible for more than 12.5% of total Bitcoin spot volume, as tracked by Coin Market Cap. It’s nearly double the next highest volume pair, BTC/USDT, also on Binance, and it’s nearly five times more than the number 3 pair, BTC/USD on Coinbase.

How does this compare to the ETFs we’ve heard so much about?

Yes, you are reading that correctly. FDUSD, via a single pair on Binance, is doing over 135% of the daily volume of all Bitcoin ETFs combined. This is a token that is controlled nearly 100% by Binance. A single pair represents over 12.5% of total crypto exchange spot volume and more than 135% of the volumes of all Bitcoin ETFs combined.

Is this believable, or is this another fake volume, wash trading scam that the crypto industry is so famous for?

Is it not plausible that the new biggest scam in crypto is pumping up the price of Bitcoin with fake stablecoins on fake exchanges with fake volume and fake wash trades in order to cash out through ETFs for real US dollars? Make this make sense!

Also see Nobody Special’s reporting on on TUSD.

Let’s have a look at what Kinesis has claimed to be doing over the past three years and compare it to what they’ve actually accomplished.

July 28, 2021: History made. Kinesis Quarterly update.

A firm date for the big Indonesia launch will be coming soon.

Once we have a more firm timeline for the country-wide launch of PosGO Syariah, we will update the community.

October 15, 2021: Q3 Update - Historic Milestone for Precious Metals Industry

Indonesia’s PosGO Syariah will launch “shortly.”

In turn, we anticipate that both PT POS and the Indonesian government’s goal and plan to launch PosGO Syariah to the widest possible audience will happen shortly.

January 28, 2022: Q4 - Quarterly update - Kinesis Global System Expansion

JFX has “soft launched” with the rest of the Indonesian project slated to roll out over the remainder of 2022.

For the first time, the member firms of JFX and their millions of clients will be able to trade spot physical gold in international pricing and liquidity pools via the KMS/KAU. The product has been soft-launched as of January 2022, with a full JFX rollout and marketing campaign across Q1 2022 and beyond.

The PT Pos Board of Directors has decided to add the PosGOLD app (updated name change from PosGO) and all the functionality as a subset of the existing PosPay App. The PosPay App has over 1 million accounts, with  PosGOLD automatically being available to that large user base. In addition,  as previous, PT POS will mandate all 45,000 employees to register a PosGOLD account. There are Indications from the PT Pos Board that the addition of PosGOLD to PosPay is planned for Q1 2022.

The NUGold App project, in conjunction with the 100 million members Nahdlatul Ulama (NU) Islamic social organisation together with the Kinesis Indonesia teams, has completed the necessary bank integration for fx conversion during Q4 and is positioned to begin the planning for the launch in the coming months.

April 26, 2022: Q1-Q2 - Quarterly Update - Ecosystem Expansion

PT Pos and JFX full roll out is expected in Q2 2022.

While the roll-out to their respective existing and future target markets is up to PT Pos and JFX, we have been working closely with them on this plan. We expect both products and applications to go full live launch in Q2 2022. As the marketing plans and outreach programs for these products get enacted and operational, we will keep the Kinesis community apprised of all the details.

August 1, 2022: Q2-Q3 - Quarterly Update

The “roll out sequence” has been “cordinated and jointly set”. The platforms will ramp up to 1,000 accounts on August 19, 2022.

The roll-out sequence of KAU on PosPay Gold and JFX Goldex beyond the small regulatory required internal “soft-launch” has now been coordinated and jointly set.

From 1-18 August, the platforms will ramp up to 1000 accounts and on 19 August, they will be completely open to the public at large. A full Grand Launch event will be held on that day, with the Minister of Commerce presiding. This plan was designed to coincide with the Indonesia Independence Day holiday celebrations commencing 17 August.

Development of Kinesis Pro is “well underway” and the “official launch” is planned for “later this year.”

In advance of the launch later this year, the development and bespoke design of our native cryptocurrency exchange platform, Kinesis Pro, is well underway. The Pro trader platform will serve users with a market-leading cryptocurrency trading experience, listing a wide range of cryptocurrency assets and pairs on a high-speed, high liquidity platform. 

The exchange will form an imperative part of Kinesis’ growth strategy and expand on our commitments to offer a fair, open and more honest platform for traders to trade and invest in cryptocurrencies and physical metals. 

Stay tuned for the official launch of Kinesis Pro planned for later this year.

August 30, 2022: Kinesis & JFX launch JFXGOLD X

JFXGOLD X is “launched” in Indonesia.

Kinesis is proud to announce the launch of JFXGOLD X, in partnership with Indonesia’s national commodity and futures exchange, the Jakarta Futures Exchange (JFX).

The launch of the JFXGOLD X product sees Kinesis provide spot physical gold contracts on Jakarta Futures Exchange, for the first time in the government-backed exchange’s almost 25-year history.

November 4, 2022: Q3-Q4 - Quarterly Update

Kinesis is “gearing up” for the “full launch” of POSPAY GOLD in Q4 2022.

Following the launch of JFXGOLD X, Kinesis is now gearing up for the full launch of POSPAY GOLD in Q4 2022, the gold-based financial app in partnership with the Indonesian state-run national postal service, PT POS.

View the website here: https://pospaygold.id/

The launch of POSPAY GOLD will see the app rolled out in phases to the entire population of Indonesia, commencing with the one million existing accounts of PT POS’ POSPAY App.

Additionally, MetalGO is already “live!”

MetalGO is live as of the 21st October. See the MetalGo website for the mobile application functionality, including “Gold to Mecca” and MetalPay using KAU. MetalPay is integrated and supported by five large Indonesian banks: BCA, CIMB Niaga, Permata Bank, BNI and Mandiri Bank. 

Kinesis Pro will launch in Q4 2022!

The development of Kinesis Pro, Kinesis’ professional cryptocurrency trading platform, is now in the advanced stages ahead of a prospective Q4 launch.

January 16, 2023: Tether Delisting

Kinesis CEO, Thomas Coughlin claims that Tether ($USDT) is in the process of being delisted.

Yes, I agree 100% with delisting USDT and have confirmed the move with our Executive Committee. Kinesis in no way is exposed to market price risk of the coin and it was listed simply as a bridge into Kinesis, however there is no longer any benefit and the reputational risk has got large enough to completely de-risk. Decision made, we will be delisting it.

January 20, 2023: Q4 - Q1 2023 Quarterly Update

In Q4 2022, Kinesis was licensed and approved by the regulator. Wait what? Didn’t they state above that JFXGOLD launched in Q3 2022?

In the fourth quarter, the Kinesis local Indonesia entity, PT Kinesis Monetary Indonesia (PT KMI) was approved and licensed by the government regulator as a Gold Depository Manager. PT KMI is currently the only entity in Indonesia to have such a licence.

POSPAY GOLD had a “soft launch” in early January 2023.

Early January saw the soft launch of POSPAY GOLD and the commencement of the internal campaign to onboard POS employees. The annual PT POS CEO Summit was held in January, bringing together the POS Board of Directors, Senior Management, Division Heads and Branch Directors. POSPAY GOLD signage and collateral were present during the week-long event. In addition, a POSPAY GOLD presentation event was held for over 200 Branch Directors.

Kinesis Pro is now in the”advanced stages” ahead of a “prospective launch in early-mid 2023.” What happened to the Q4 2022 launch?

The development of Kinesis Pro, Kinesis’ professional cryptocurrency trading platform, is now in the advanced stages ahead of a prospective launch in early-mid 2023.

Stay tuned for the official launch of Kinesis Pro later this year.

April 18, 2023: Q1 - Q2 2023 – Quarterly Update

Another successful integration in Indonesia!

In another successful integration, we announced a new Kinesis-powered, white-labelled gold savings application for the Indonesian Hajj Brotherhood Association (IPHI). 

In line with their “commitment to transparency,” Kinesis has already “established” a new “bailee company.”1

In line with a continued commitment to transparency, Kinesis provided a recent live interview that covered the latest developments in Indonesia, the KVT yield launch, the Physical Mint and the establishment of the new Kinesis Bailee company. 

Kinesis has established a new Bailee company, which is in the process of setting up accounts with the vaults. The strategic purpose of the Kinesis Bailee company is to simplify the safekeeping arrangement of bullion underlying KAU and KAG precious metals assets.

Kinesis pro is still in the “advanced stages” of its devleopment in line for a “prospective luanch in Q2.”

The development of Kinesis Pro, Kinesis’ professional cryptocurrency trading platform, is now in the advanced stages ahead of a prospective launch in Q2. 

July 6, 2023: Q2-Q3 2023 – Quarterly Update

The first “official release” of the “PT Kinesis Monetary Indonesia (KMI) Gold Depository Management approval” by “BAPPEBTI” has taken place. Now the public can use JFXGOLD X which was “launched” in August 2022.

How was JFXGOLD X “launched” a year earylier without a licnese?

The first is the official release of the “PT Kinesis Monetary Indonesia (KMI) Gold Depository Management Approval” by BAPPEBTI. The physical check process by BAPPEBTI, Indonesia’s Commodity Futures Trading Regulatory Agency, will ensure that the physical gold

kept by Kinesis in the custodian warehouse is genuine, LBMA-accredited 999.9 gold.

The official release now opens the door for the public to carry out physical gold transactions digitally on the JFXGOLD X exchange trading platform, using the Pospay Gold feature in the Pospay Application or via the MetalGO Application safely and reliably. These platforms form a crucial part of our Indonesian growth, and we’re also laying the groundwork for smooth onboarding with upgraded KYC processes within Indonesia by working closely with an array of major banks in Indonesia, including Artha Graha International Bank.

Kinesis Pro is still in the “advantaged stages” of its development and will launch in “early Q3.”

The development of Kinesis Pro, Kinesis’ professional cryptocurrency trading platform, is now in the advanced stages ahead of a prospective launch in early Q3. 

Updates on the “Kinesis Bailee Company” are conspicously missing from this “Quartelry Update.”

October 27, 2023: Q3-Q4 2023 – Quarterly Update

In September, 2023, “POSpay Gold,” “officially launched,” “nationwide.” The “full launch” of “POSPAY GOLD” announced in November 2022 and scheduled for “Q2 2022” was something different.

In September, the Vice President of Indonesia, K.H. Ma’ruf Amin, officially launched the Kinesis-powered physical gold trading application, POSPay Gold, nationwide. 

Created in partnership with the Indonesian state-run postal service, PT Pos, the POSPay Gold application provides Indonesia’s predominantly Muslim population with instant access to Sharia-compliant physical gold trading and ownership.

The development of Kinesis Pro is “nearing completion” ahead of its “official launch.”

The development of Kinesis Pro, Kinesis’ professional cryptocurrency trading platform, is nearing its completion ahead of the official launch. 

Updates on the “Kinesis Bailee Company” are again conspicously missing from this “Quartelry Update.”

December 28, 2023: Q4 2023 – Q1 2024 – Quarterly Update

Kinesis claims that POSPay Gold and JFX Gold X are “really seriously they swear this time launched” now and there are now over 5,000 active accounts. No word on why these accounts don’t produce any measurable revenue (see chart below) or what happened to the 50,000 accounts by the end of 2023 that Kinesis promised to their investors.

Following the official nationwide launch of the Kinesis-powered physical gold trading applications, POSPay Gold and JFX Gold X, Kinesis has already begun to see an increase in Indonesian users on the platform. 

The number of accounts on these apps has steadily increased, now numbering over 5000 in total. A significant number of small gold transactions coming from individual users can be seen coming through the Kinesis Exchange, with expectations of significant growth in account and volumes in the new year.

Kinesis Pro is now in the “final stages of development” and a “closed beta” will be available in “Q1 2024.”

The final stages of development for Kinesis Pro, the professional digital asset trading platform by Kinesis, are taking place as we approach a BETA launch. We’re pleased to announce that the closed beta will be available in Q1 2024 for selected users to test the Kinesis Pro exchange. More details will be released closer to the time of the beta program.

The “Kinesis Bailee Company,” which was “established” in early 2023, and Kinesis assured investors would be in place by October 2023, is now finally ready for a “transition” “during Q1 2024.”

Following a comprehensive legal review and advice, we are targeting a transition to Kinesis Bailee Company as the bailee for KAU and KAG holdings during Q1. Terms and conditions, FAQs and service offering information will be updated accordingly. 

May 9, 2024: Q1 - Q2 2024 – Quarterly Update

Yet another Indonesian app is launching on May 18, 2024, and will definitely add 100 million Indonesians to the “Kinesis Monetary System.”2

We are pleased to announce the soft launch of the NUNOMICS APP on 18 May, with the full launch event, including top government officials, set for July/August.

The NUNOMICS APP is the everyday lifestyle and financial health assist tool for the exclusive use by the over 100 million members of the Indonesian religious/social community organization – Nahdlatul Ulama (NU).

Kinesis Pro has somehow traveled backwards in time (much like ABX auditors) since December 2023 when the “final stages of development” were “taking place.” Unfortuantely, Kinesis Pro was only nearing its “final stages of development” as of May, 2024. The Kinesis team is now “preparing grounds” for the “forthcoming launch.” What happened to the Q4 2022 launch?

As Kinesis Pro, the professional digital asset trading platform from Kinesis nears its final stages of development and testing, our team is preparing grounds for the forthcoming launch.  

The “Kinesis Bailee Company” is again missing in action from this quarterly update and has yet to make an appearance on any of the ABX audits Kinesis is still trying to pass off as their own.

Kinesis revenues continue their downward spiral toward zero. The Mint Cycle Scheme is still the only way Kinesis has ever produced any significant revenues.

As of June 14, 2024, Tether ($USDT) remains listed on the Kinesis Monetary System exchange.

First Digital USD is yet another stablecoin that appeared out of nowhere in May 2023. FDUSD is held by only 851 unique addresses, with a whopping 97.6% of the total supply controlled by just six known Binance addresses.

Less than 10 unique addresses hold more than $1 million FDUSD, and no known exchange address besides Binance holds more than $250,000 FDUSD.

Via just a single pair on Binance, over $11 billion of volume was reported in the last 24, hours which is 14.6% of the total Bitcoin spot volume tracked by Coin Market Cap.

FDUSD also traded over $4.3 billion against USDT on Binance.

While Bloomberg reporter James Seyffart and others have remarked on the relatively high volumes of the 11 Bitcoin ETFs, FDUSD and Tether volumes via just two pairs on Binance remain the elephant in the room that few are talking about.

In the last 24 hours, FDUSD and Tether (USDT) CoinMarketCap reported volumes of almost $19 billion on Binance for just two pairs. This represents more than 22% of the total spot Bitcoin volume reported Coin Market Cap.

This is more than 7x the average volume currently reported for all 11 ETFs.

All of this raises the question: Is this a scheme to use stablecoins with dubious backing to raise the price of Bitcoin on opaque offshore exchanges? As the Bitcoin price climbs, new money flows into the ETFs, leading them to purchase additional Bitcoins with real USD. Are the ETFs buying from market manipulators allowing them another avenue to convert their questionable stablecoins into real USD in large quantities?

Why is Binance reporting such astronomical volumes for a stablecoin nobody uses?

Why is there so little reporting on a token that supposedly represents more than 10% of global Bitcoin spot volume?

To stay up to date on FDUSD and Tether, follow Bitfinexed, Deso Games and Rho Rider.

What is Bullion Capital? It seems to be another shell company in the orbit of the “Kinesis Monetary System,” controlled by the same four individuals that control Allocated Bullion Exchange (ABX) and Kinesis itself:

Thomas RA Coughlin, Director and Chairman
Michael T Coughlin, Director and Secretary
David A Charles, Director
David F Underwood, Director

Unlike Allocated Bullion Exchange, Bullion Capital appears to have no real substance at all. In FY 2022, it reported $866 million AUD in revenue but expenses (in addition to COGS) of only $252,731. $40,953 (16%) of these expenses were audit expense, and the company only had $152,945 cash on hand at the end of FY 2022. They reported a miniscule $696,542 in profit (0.09%), which did not even offset the $1,079,274 loss on the previous year’s $2.8 billion in revenue.

Undoubtedly, precious metals trading is a low margin business, but how does a company manage to generate more than $3.6 billion in sales while reporting cumulative losses of $382,732?

Bullion Capital also benefited from a $3.5 million foreign exchange gain, an amount that is very close to the $3.3 million foreign exchange loss reported by ABX reported for the same period.

Bullion Capital borrowed $6.6 million in FY 2021 which is a similar amount to the $6.9 million in profit reported by ABX in FY 2022.

Perhaps most interesting is that ABX is responsible for 99.4% of Bullion Capital’s revenues and 98.1% of Bullion Capital’s sales were offset by $850 million in purchases from ABX.

Strangely, these related party transactions do not match up with ABX’s financial statements which show less than $1.2 million of trading volume with Bullion Capital. Is one of these sets of financial statements incorrect or is there another legal entity called “Allocated Bullion Exchange Limited” somewhere else? If so, why is there only one “Allocated Bullion Exchange Limited” on Bullion Capital’s financial statements?

Another obvious question to ask is where are all the bullion sales to Kinesis users occurring? Kinesis maintains that KAU and KAG token holders have legal title to the metal backing the tokens, therefore some company must be making these sales direct to end users. If this is all taking place inside of Kinesis Cayman (an entity that has never published financial statements or audits), where is it purchasing the gold and silver from? During FY 2022 (July 1, 2021 - June 30, 2022) only one audit (dated June 20, 2022) covering the underlying gold and silver was provided.

The previous audit in October 2020 showed only a fraction of this gold and silver on hand.

Since there are no audits covering October 2020 through June 2022, should investors assume the entire increase in silver and gold holdings took place between October 17, 2020, and June 30, 2021, or does Kinesis Cayman purchase their gold elsewhere? FY2022 shows only sales of $4.2 million from Kinesis Cayman to Bullion Capital.

Like ABX, Bullion Capital received a qualified opinion from their auditor.

Something doesn’t add up here. If readers would like to examine these statements in their entirety, they can download a copy here.

Thanks to a helpful, good Samaritan, we can now offer readers the complete FY 2022 Bullion Capital and Allocated Bullion Exchange (ABX) financial statements, along with some initial thoughts and questions. We believe in open source investigations, and there are 69 pages to digest, so let’s dig in together.

To begin, we must acknowledge that ABX did have a profit of almost $7 million AUD for FY 2022, as promised by Thomas Coughlin (CEO of ABX, Bullion Capital, and Kinesis) earlier this year; however, those “profits” were facilitated almost entirely by more than $20 million AUD in payments from Kinesis Cayman to ABX.

This is somewhat difficult to reconcile since Kinesis only generated $5.1 million USD ($7.4 million AUD) in fee revenue in FY 2022 and Kinesis claims to share more than 50% of fee revenue with KAG, KAU, and KVT security token holders. Where did this money come from?

Furthermore, Kinesis fee revenue plummeted by 70% in FY 2022, as compared to FY 2021, while at the same time, payments from Kinesis Cayman to ABX nearly quadrupled from $6.5 million AUD to more than $22 million AUD.

ABX had a profit, technically, on paper, but what about the auditor’s opinion? Earlier this year, Coughlin assured investors the next ABX audit would not have a qualification. That did not turn out to be the case.

Readers may also notice that these are new auditors, hired in January 2023 after these statements were already overdue.

What did ABX do with all the money it received from Kinesis Cayman? Among other things, it paid out almost $4 million AUD in salaries and benefits, almost $6 million AUD in “professional fees,” $2 million AUD in “software development”, $1 million AUD in “other expenses”, and it paid down more than $5 million AUD in loans from related parties.

ABX also lost more than $3.3 million AUD in foreign exchanges transactions.

Could that be related to their dealings in Turkey?

As ABX continued to receive millions from Kinesis Cayman, Kinesis fee revenue plummeted from a peak of $6.3 million USD in April 2021 to less than $150,000 USD in October 2023.

Up next, a look at Bullion Capital’s FY 2022 financial statements. If you haven’t already, download the complete FY 2022 statements and take a look for yourself.

Better late than never, right?

Nearly one and a half years late, Kiensis finally began paying out the yields on their KVT security tokens.

Unfortunately for KVT holders, the yield was just a bit less than the $711.75 per month Kinesis promoted to investors during their 2018 ICO.

KVT holders received a yield of $0.0688 per KVT for the month of May 2023.

Incredibly, Kinesis still claims that the current “price” of one KVT is $2,000, giving it an annualized yield of just $0.83, or 0.04%!

This is not the only bad news KVT investors have to contend with; investors are also unable to sell their KVT tokens despite a clear written commitment from Kinesis to make “free trading of KVTs” available to investors by the end of 2021.

Total fee revenue for “The Kinesis Monetary System” looks equally abysmal.

This latest "audit" has less detail than any other audit presented to date. The audit document has now been condensed to only 3 pages, down from 62 pages in January 2023, and no longer provides the breakdown between vault locations.

Obviously, a high page count doesn't necessarily make a good audit; there are ETFs that have one or two page audits covering billions of dollars of precious metals while at the same time clearly indicating the total fine weight of the metals held.

Despite the lack of detail, it took nearly six weeks from the audit date to publish the audit. Only the incomplete June 2022 audit took longer (50 days). The latest audit was completed on April 20 but was not published on Kinesis’ website until May 31, 2023, 41 days later.

Observations

1. Kinesis is still exaggerating the number of locations and vaults that they store in. The audit shows vaults in Brisbane, Sydney, New York, Panama, Singapore, Zurich, Hong Kong, Istanbul, Toronto, and Vaduz, while the website claims metals are also stored in Batam, London, and Dubai, but these locations do not appear anywhere in the audit.

2. The audit makes no reference to tokens, token circulation, blockchains, or smart contracts.

3. The audit does not contain sufficient details to calculate the number of fine ounces of silver or fine grams of gold held. Kinesis’ cover letter falsely implies that the audit attests to not only the total fine weight of the gold and silver but to an accuracy of 0.001 gram for gold and 0.001 ounce for silver. This is simply not possible unless they failed to publish the entire audit.

4. The audit references "agreed procedures," but what exactly those agreed procedures were is not specified.

5. The audit was issued to ABX, not Kinesis.

6. Weighment data is no longer included in the audit.

7. Scale details are no longer included in the audit.

8. No bar serial numbers are included in the audit.

9. Testing data is not included in the audit (nor was it included in previous audits).

10. There are many small, high-premium items that do not make sense to use as backing for low-premium, fungible tokens.

11. This is not a financial audit and therefore provides no information about the ownership of the assets.

12. Each of the last three audits contains less detail than the prior audit. The June 2022 audit identified some but not all of the "gold coins" and provided their location. The January 2023 audit provided no specific details about any of the "gold coins" except their location. The April 2023 audit provides no details about any of the "gold coins".

It would appear that instead of addressing the numerous errors and omissions in the previous audits, Kinesis and ABX have decided to simply remove nearly all of the meaningful details from the audit entirely.

It’s an interesting exercise to compare Kinesis CEO Thomas Coughlin’s claims about audits with the actual content of the audits.

Previous audits also fell far short of these claims but none to date were as lacking in detail as the April 2023 audit.

It would seem that Kinesis has now fully migrated to the crypto industry’s favorite audit and attestation standard, the “Trust me bro” standard.

A reader recently sent us an archive of the post below that was censored by Wall Street Silver moderators but someone was quick enough to save a copy first. Read on to learn about the origins of the Kinsesis Monetary Sytem in the Isle of Man where they failed to obtain proper licensing for their 2018 ICO.

Kinesis Is Not What It Seems - Illegally Raised Funds, Money Laundering & Fraud

Kinesis has a history that it has tried to bury.

Whilst it's great that you're all wanting to nail the cartel via physical silver, there are a few truths that you need to know before going down the Kinesis rabbit hole.

I know that no-one here is daft and that you are more than prepared to seek & ask hard, matter-of-fact questions that require absolute and not brushed over answers.

The following is laid out so that you can all do your own due diligence to get absolute black and white answers from Kinesis - not the "but our lawyers said...." crap. Get them show documentation, proof from source and unedited correspondence.

ICO/KVT Funds Raised Illegally

Kinesis originally incorporated in Isle of Man (IoM) but got kicked out as they started raising cash on 15 February 2018, without having any regulatory licence in place.

It is compulsory for every crypto orientated IoM registered business to be fully regulated as a Designated Business before taking a single cent. See the following links to the relevant information at the IoM FCA:

• IoM Designated Business Act

• IoM Virtual Currency Specific Guidance

• IoM FSA ICO Q&A

• IoM Company Register for Kinesis

• Search Regulated Register to see that Kinesis was never issued a regulatory licence.

Kinesis applied for their licence only after raising $millions.

If they felt they didn't need a licence before they started raising money, why did they apply eventually apply for one? They tried to fiddle the system and got caught.

As a result of their regulatory failing and illegally raising funds, their licence application was rejected, and the IoM Financial Services Authority kicked them out of the country.

The case officer that oversaw the Kinesis application & rejection was Bryn Griffith, Manager –Enforcement Division, Isle of Man Financial Services Authority.

Kinesis then had to set up their company in the Cayman Islands where there was no regulatory requirement relating to ICOs or other crypto related stuff.

By the time they left the Isle of Man, they had illegally raised more than $20 million - they took the money and ran.

In August 2019, they then set up another company in Lichtenstein to try to add an extra jurisdiction layer that hides their true origins and what happened there, and to further 'wash' their money.

Get Kinesis to provide all the emails correspondence they had with the IoM FCA, not some whitewash letter from their lawyers saying that it was all OK. Contact the IoM directly and confirm that any & all companies wanting to raise crypto funds must be regulated first. Info directly from the authority always beats 3rd hand scribbles.

Banking of the ICO/KVT Funds & Money Laundering

Kinesis couldn't get a bank account when it originally set up in IoM (many crypto businesses at the time also struggled here).

To get around that problem, they sent all the ICO/KVT funds they were getting from the public to a bank account held in the name of their sister company, Allocated Bullion Exchange Limited (ABX).

Problem with that, is that ABX's account was with the National Australia Bank (NAB).

At that time, the NAB and the other Australian banks had a strict policy of not allowing ICO or cryptobusiness / exchange funds to be held in their accounts, and would freeze any accounts that were found to do so. See the following links:

• Australian Banks Freeze Crypto Business Accounts (ethereumworldnews)

• Australian Banks Freeze Crypto Business Accounts, but Not Private Ones (financemagnates)

If NAB had no problem with Kinesis putting their money with them, then they would have opened an account directly in the name of Kinesis...right? But no, Kinesis couldn't get an account due to the aforementioned cryptocurrency terms in place by NAB.

Instead, ABX took and parked Kinesis' ICO/KVT funds in a manner that made the ICO/KVT funds look indistinguishable from ABX's other, and legitimate, client funds.

The way they would have done that is to have registered Kinesis as a proprietary trading account with ABX and then listed each individual Kinesis ICO/KVT investor as a client account under Kinesis' brokerage account.

Any platform development and operational expenses would then have been deducted across those accounts. That way, the ICO/KVT investor funds into Kinesis seamlessly merged with legitimate ABX client funds in a way that NAB couldn't overtly identify.

In very simple terms - ABX concealed the source of funds from the bank to prevent the account from being frozen. When you conceal the source of funds it is classed as Money Laundering, therefore, ABX Laundered Money for Kinesis.

How could ABX do that for Kinesis? > The Directors & Officers are the same for both companies!

I don't doubt that since then, NAB have changed their terms and now accept crypto business/ICO funds, it doesn't in any way back-date and forgive Kinesis' and ABX's actions.

ABX needs to provide a copy of the letter from NAB giving them exemption relating to crypto funds - a letter from ABXs/Kinesis' lawyers confirming it was not problem won't do. The bank will have had to have given them permission in writing and also logged the exemption entry in their account file.

ABX and Kinesis can't provide a copy of that bank letter as there never was one = Money Laundering 101. Don't take anything less than that letter copy as Coughlin is a snake with a silver tongue - don't take his words or 'our lawyers said xyz...'

Defrauding of Kinesis ICO/KVT Investors

But why was this done? Was it just a way to get around the bank account issue...no, unfortunately it gets a bit more serious than that.

Depositing the Kinesis ICO/KVT funds into ABX's account also helped ABX financially.

ABX were in dire financial difficulty and starved of cash as ABX had never made a profit since it was incorporated in 2011 and the money raised from the ICO/KVT was perfect timing. See ABX's financials here (unfortunately you have to pay the ASIC to see them).

As the account signatories, Directors and Officers of ABX and Kinesis are one and the same, funds could then be reallocated at will to cover ABX's financial problems and shortfall.

And just like magic…ABX was financially saved and Kinesis could quietly park their ICO funds without resolving their banking problem.

It would be the expectation of investors that monies invested into Kinesis' ICO/KVTs goes solely into the development of Kinesis, not used to financially prop-up a separate failing company. Therefore, the reallocation of Kinesis' funds to support ABX is an act of defrauding Kinesis' investors.

Or was it...if you read Kinesis' Simple Agreement for Future Tokens (SAFT), then you'll see that all investors (buyers) of KVT have less than zero legal standing. The investors never get any equity, the funds weren't an investment, they had no say in how the funds were used and they agreed that it could all be lost with absolutely nothing ever being recovered.

Nevertheless, as the Officers are the same for

Check ABX's financial history up to the launch of Kinesis - see any miraculous cash flows appearing after the fact?

Unfortunately no matter what ABX, Kinesis or myself on this, the truth will only be exposed through forensic accounting - Oh...by the way did I forget to mention that Thomas Coughlin's father (Michael Coughlin) is the Chief Financial Officer for both ABX and Kinesis and owns the advisory accounting firm (https://www.coughlins.com.au/)?

General Counsels

Not long after Kinesis got kicked out of IoM, ABX went through 3 General Counsels over the space of a few months.

The first was Dan Ryan, the second was Patrick Davis, the current one is David Charles (I'm sure there was another one in there but I can't find them).

Potential Impact

As the IoM FCA knows about Kinesis, it should stand to reason that the SEC in the USA and other FCA's worldwide do to.

I suspect that once Kinesis has sucked in x amount of gold and silver into its system, the authorities will make their move – they have all the info they need to seize client assets and jail directors.

The authorities will then take the physical and replace it with cash as pennies on the dollar, no doubt due to the obligatory debiting of government investigatory expenses etc. from the assets to be returned to the clients.

WallStreetSilver

All the silver that you accumulate via Kinesis runs a very high risk of being confiscated and returned back to market to support the market manipulations that you are all trying to defeat.

As already mentioned, Thomas Coughlin has a silver tongue and will try to worm his way out of giving any direct answers. He'll talk about the advice from their lawyers etc - don't fall for it. Don't settle for anything less than copies of letters with the authorities and banks - anything else is worthless.

My advice is to remove Kinesis from WallStreetSilver's page menu etc pending getting hard documents from Kinesis / ABX.

By helping to advertise Kinesis, you are setting up people here to get seriously screwed if they buy physical through them!!

Source: original, archive, second post also censored

This post aligns quite well with our own previous research. To this day, Kinesis still uses ABX to receive deposits for Kinesis Cayman. We have also speculated that one of the primary reasons for this is that Kinesis Cayman cannot get its own bank account. As of May 9, 2023, Allocated Bullion Exchange (ABX) has failed to produce an audit beyond June 30, 2021 but that most recent audit confirmed that ABX was racking up seven figure losses and drowning in debt.

Founded in 2015, Glint offers Android and iOS mobile apps that allows users to save in gold and spend their gold savings on demand with the Glint debit card.

Glint’s eight year history includes a 2019 bankruptcy and a $6.3 million (£5 million) bailout from new investors. Roy Sebag, founder of the competing digital gold company Goldmoney, penned a thoughtful essay highlighting the inherent riskiness of providing debit cards that seek to provide users with the ability to spend physical gold on demand. We can’t help but wonder if any of the issues highlighted by Sebag led to Glint’s bankruptcy.

Today, Glint claims to serve more than 36,000 users, to hold more than $100 million worth of physical gold on their behalf, and to provide a debit card accepted in 210 countries1.

According to Glint’s website, it looks like business is booming, while app store statistics and online reviews suggest that Glint is used far more than peers Kinesis and Lode.

There’s just one small problem, Glint won’t provide any proof that it holds a single gram of physical gold.

A reader forwarded us the following e-mail response from Glint when asked where they could find audits supporting Glint’s gold holdings:

Lucie (Glint)

Mar 29, 2023, 16:14 GMT+1

Hello, 
 
I hope this email finds you well. 
 
The number of units held by all Clients which is recorded in the Accounts always represents an identical amount of Gold held in the Vaults. This is reconciled daily and audited every quarter. At the moment, it is not possible to share our audit reports, however, our management team is working to make a client-facing version available in the future.
 
Please let me know if you have any questions and I will be happy to help.
 
Kind regards, 

Lucie

Client Support
If registered in the United States please email: support_usa@glintpay.com
If registered in any other country please email: support@glintpay.com
www.glintpay.com

Kemp House, 124, City Road, London. EC1V 2NX.
PO Box 18899 Boulder, CO 80308.

After eight years of operation and more than $6 million invested, this company cannot provide audits or any other proof they hold gold at all? This seemed hard to believe, so we asked them the same question directly.

Apr 12, 13:42 PM
To: support@glintpay.com, support_usa@glintpay.com

Is it true you refuse to provide any proof that Glint holds gold?

We understand you claim to have audits but you refuse to show them to anybody?

We found this surprising but wanted to verify this first hand with you.

Thanks.

Glint’s reply:

Klaidas (Glint)

Apr 12, 2023, 16:12 GMT+1

Hello there,
 
Thank you for getting in touch with us.
 
I would like to assure you that Glint Pay is fully authorised and regulated by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN 900657). Our clients' e-money is held in segregated, safeguarded client accounts in a Tier 1 bank. Our client's gold is legally owned by them and held on their behalf in a Brinks vault in Switzerland. Client gold is insured to 100% of their value and your statements act as proof of ownership. If anything were to happen to Glint, you would be reimbursed the full value of your gold holding (100% of your Gold returned).
 
I can also confirm that we have audits every single month by an independent auditor who counts and verifies every single gold bar.
 
Furthermore, our management team is working to make a client-facing version available in the future.
 
Please do let me know if there is anything else that I can help you with today.
 
Kind regards,

Klaidas

Client Support
If registered in the United States please email: support_usa@glintpay.com
If registered in any other country please email: support@glintpay.com
www.glintpay.com

Kemp House, 124, City Road, London. EC1V 2NX.
PO Box 18899 Boulder, CO 80308.

Glint’s response ignored the question that was asked and instead answered two imaginary questions that were not asked (“How is Glint regulated?” and “Where does Glint store its users assets?”). Interesting questions and answers, for sure, but certainly not proof that Glint holds physical gold equal to or greater than its users’ account balances.

If Glint holds physical gold on behalf of their users, why are they unable or unwilling to provide any proof?

For a deeper dive into the history of Glint and its financials, watch this outstanding analysis by Parallel Systems.

As of April 17, 2023, Glint Pay Services Ltd still has not filed accounts for 2021 or 2022.

• Encouraging people to use Sound Money

• Protecting their right to do so

While these goals sound admirable, our investigation strongly suggests that C4SM’s primary goal is actually promoting the Kinesis Monetary System and selling their Kinesis Velocity Token (KVT). Promoting a private for profit company and selling their securities sounds like a very strange activity for a 501(c)(4) tax-exempt organization, which the IRS broadly defines as follows:

Internal Revenue Code section 501(c)(4) provides for the exemption of two very different types of organizations with their own distinct qualification requirements. They are:

• Social welfare organizations: Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, and

• Local associations of employees, the membership of which is limited to the employees of a designated person(s) in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational or recreational purposes.

Homeowners associations and volunteer fire companies may be recognized as exempt as social welfare organizations if they meet the requirements for exemption. Organizations that engage in substantial lobbying activities sometimes also are classified as social welfare organizations. 

Let’s set aside the question of whether or not digital tokens issued on a fully centralized proprietary blockchain by a private for profit Cayman Islands based company constitute “sound money” so that we may instead consider a different question. How often does C4SM promote other similar companies and their respective “sound money” solutions as compared to the Kinesis Monetary System?

The answer is, not very often. We found just thirteen mentions of other companies promoting tokens backed by precious metals on C4SM’s Twitter timeline. Oddly, PAX Gold and Tether Gold, the top two gold tokens by market cap, weren’t mentioned at all.

If you would like to see how often C4SM mentions Kinesis, you’ll have to sit through almost 90 seconds of continuous scrolling.

Like its chairman, Jim Forsythe, Citizens for Sound Money has a solicitation to purchase KVT pinned to the top of their Twitter profile, which also contains a Kinesis referral link.

What else does Citizens for Sound Money do to promote Kinesis and solicit sales of their KVT security token?

C4SM solicits sales of KVT on their website.

C4SM solicits sales of KVT on Reddit.

C4SM solicits sales of KVT on other websites, such as AboutKinesis.com

C4SM solicits sales of KVT in the Kinesis Community Forum.

C4SM solicits sales of KVT in their newsletter.

C4SM helps “very large investors” sell their KVT. According to AboutKinesis.com, this includes sales of KVT to unaccredited investors.

Jim Forsythe, Chairman of C4SM, regularly appears in Twitter Spaces, and YouTube videos with Kinesis management.

Jim Forsythe has previously stated that referral payments from Kinesis were sufficient to cover the entire salary of C4SM executive director Marian Ward.

Public IRS data shows that C4SM had revenue of $639,657 in their first nine months and had already acquired $536,766 in assets by the end of 2021.

According to AboutKinesis.com, C4SM sold KVT to more than 400 people, while Reddit user u/retire-early placed the number of people sold KVT at more than 1,000 five months ago. u/retire-early is rumored to be the owner of AboutKinesis.com.

KVT tokens are not divisible. These sources therefore suggest C4SM’s revenues from selling KVT range from more than $400,000 to more than $1,000,000.

How C4SM sets the price for KVT tokens is unknown, and there is currently no known public market for KVT.

It doesn’t seem realistic that the price of KVT would have risen after failing to provide a single cent in returns to investors.

The Kinesis Monetary System entered its fourth year of operation in March 2023, but Kinesis marketing materials and YouTube videos indicated that investors could expect returns of hundreds to thousands of dollars per token by the end of the third year.

Does the arrangement between Kinesis and C4SM raise to the level of market manipulation?

Besides the obvious, Kinesis has another reason to inflate the price of KVT. Kinesis committed to dedicate 20% of revenues to a token buy-back program if the price of KVT falls below $950.

In two recent Reddit comments1, Jim Forsythe claimed that KVT tokens are not securities in response to questions about the legality of C4SM selling unregistered securities, including to unaccredited investors.

It’s not clear what lawyers advised Forsythe that KVT is not a security. Perhaps it was the Texas DUI lawyers Kinesis used?

Regardless of the opinion of C4SM’s unnamed lawyers, the claim that KVT tokens are not securities directly contradicts Kinesis Cayman SEC filings and the KVT offering memorandum.

If any securities lawyers would like to weigh in on the unorthodox relationship between Kinesis and C4SM and the way they have elected to promote and sell their KVT security tokens, we’re all ears.