Can You Solve This Bitcoin Puzzle For $7,500?

Graham Trafford
-
0
Can You Solve This Bitcoin Puzzle For $7,500?

If you want to invest in Bitcoin but don’t know how, a new treasure hunt could be the easy way to enter the world of cryptocurrency.

Thousands of would-be investors are trying to unravel an online puzzle that is hiding a Bitcoin – worth about $7,500.

The coin is said to be hidden in a word cloud comprising terms from legendary Bitcoin founder Satoshi Nakamoto’s original paper proposing the launch of the digital currency.

The golden word cloud has a white Bitcoin motif superimposed.

“This work is comprised of Satoshi Nakamoto’s famous whitepaper words, scaled by Log N. Disparate ideas inspired Satoshi to create a solution to revolutionize modern socio-economics and industry. The work reflects on the elements that brought this technology to life, and challenges the underlying security model. Hidden in plain sight lies something more: a treasure hunt. 1 BTC is concealed within the work,” says the anonymous user who posted the treasure hunt on social media site Reddit.

Clue and more prizes

The puzzle is linked to a Bitcoin address that contains the coin – with $12 docked to cover transfer fees.

The only clue is someone counted the words in the image – claiming to see 239.

In reply, the anonymous poster said: ““You can throw at least half of those out. This is clue #1.”

They also hinted more than one prize may be concealed in the puzzle – with the Bitcoin as first prize.

“There’s also some consolation prizes scattered in there, but let’s not even talk about those for now ;),” said the poster cryptically.

You can follow the comments and clues on this Reddit link

Can you find the hidden Bitcoin?

Here’s a copy of the puzzle published on Reddit:

ICO Launch For Floating Self-Governing Manmade Islands

James Atkins
-
0
ICO Launch For Floating Self-Governing Manmade Islands

As ideas go, living on your own Pacific island where you can spend your exclusive cryptocurrency while you casually sip a cocktail by the waterside warmed by the tropical sun is one of the wackiest.

But little in the world of cryptocurrency raises much more than an eyebrow today.

The plan is simple – if you are tired of the rat race, kowtowing to the government and endless regulation and are a free spirit ready to take part in the digital economy, then Blue Frontier is the company for you.

The small print is a little harrowing, though.

Funding for the first project in Polynesia is a planned initial coin offering (ICO) – but the company will only accept payment in Varyon (VAR).

Varyon ICO

To take part, investors should set up a private wallet – not through an exchange – then buy Ethereum and which will be converted into Varyon – the Blue Frontiers token of choice.

The plan is to build sustainable seasteads, which are designed as private floating islands which can be docked with other seasteads to make larger communities and eventually a nation state nestled in international waters beyond the influence of any government.

The company is floating the idea of the first seastead off French Polynesia.

Political scientist Nathalie Mezza-Garc said: “There is significance to this project being trialled in the Polynesian Islands. This is the region where land is resting on coral and will disappear with rising sea levels.

“Once we can see how this first island works, we will have a proof of concept to plan for islands to house climate refugees.

Floating voters

“If you don’t want to live under a particular government, people will be able to just take their house and float away to another island.”

Blue frontiers has scheduled the first project’s completion for 2022. Costing $50 million, the seastead will be home to 300 people.

However, cruising international waters beyond the reach of government may not be that simple.

The United Nations points out that artificial islands are subject to the laws of the nearest coastal state unless they are more than 200 nautical miles offshore – which limits locating a seastead anywhere near civilisation.

…but perhaps that’s the big idea from Blue Frontiers.

FATCA Tax Data Grabbed From Leading Cryptocurrency Exchange

James Atkins
-
0
FATCA Tax Data Grabbed From Leading Cryptocurrency Exchange

Leading cryptocurrency exchange Bitfinex has told customers that the company is supplying their personal and financial data to the tax authorities.

In a letter, Bitfinex explains that a tax avoidance crackdown in the British Virgin Islands, where the exchange is based, requires the information is filed by law.

The move follows pressure on the British Overseas Territory from the UK government to remove a cloak of secrecy from customer dealings in line with international tax laws which was exposed in the Panama Papers scandal.

Under the controversial American Foreign Account Tax Compliance Act (FATCA), tax authorities in the British Virgin Islands are compelled to disclose information about their accounts and investments controlled by US citizens.

A similar rule called the Common Reporting Standard (CRS) is also operated by more than 50 countries by the Organisation of Economic Co-Operation and Development (OECD).

Customer identities verified

To comply with the rules, Bitfinex must verify the identity and tax residence of all their customers.

“We request you complete the appropriate self-certification form and upload it to your Bitfinex account by May 24 at the latest,” says a letter from Bitfinex to customers.

“You are required to provide us with such information.

“As a reminder, by agreeing to our terms of service you have agreed to use the web site in compliance with the appropriate laws or regulations.”

It seems the letter is politely pointing out to customers that their financial data will be transmitted to the appropriate tax authority and warning that if they have not paid the correct amount of tax, they may be subject to an investigation in their home country.

Corralled into tax reporting

The action follows moves by governments worldwide to tighten up tax reporting for cryptocurrency traders.

The paradox is many traders are involved in digital currency transactions because of the anonymity afforded by the borderless, unregulated market.

But they are corralled into tax reporting because governments are ready to allow a free-for-all sector without frontiers for trading, but want their share of the profits by forcing exchanges to hand over customer data to tax authorities.

Bitfinex has further announced only customers with a self-disclosure obligation have received the letter and that other customers need do nothing.

China Sets Up ‘Approved’ Blockchain Technologies

James Atkins
-
0
China Sets Up ‘Approved’ Blockchain Technologies

The Chinese government appears to be backtracking on a ban on digital currencies with a new official index of blockchain projects.

The China Center for Information Industry Development (CCID), is a state agency under the wing of Ministry of Industry and Information Technology, which lays down a blueprint for the country’s technology development and regulates the sector.

The CCID plans to publish a list of digital currencies approved for researchers to develop their own projects.

Who’s on the list

The first index will cover 28 cryptocurrencies:

  • Ark
  • Bitcoin
  • Bitcoin Cash
  • BitShares
  • ByteCoin
  • Cardano
  • Dash
  • Decred
  • Ethereum
  • Ethereum Classic
  • Hcash
  • IOTA
  • Komodo
  • Lisk
  • Litecoin
  • Monero
  • NANO
  • NEM
  • NEO
  • QTUM
  • Ripple
  • Siacoin
  • Steem
  • Stellar
  • Stratis
  • Verge
  • Waves
  • Zcash

The agency says each technology will be ‘scientifically evaluated’ by professional consultants so the government, research institutes and developers do not have to keep going over the same work.

The evaluation will cover five points:

  • The project should have an independent main chain
  • Developers should be able to freely create nodes
  • The technology should have a published block explorer for easily tracking block information
  • The chain should run on open source code
  • Project team members should be easy to contact

The government has already announced research into adapting the blockchain to improve auditing.

Blanket ban on ICOs

In September, the People’s Bank of China, the central bank in Beijing, banned all initial coin offerings (ICO).

Since then, the government has softened attitudes towards digital currency and signalled that ministers view blockchain as an emerging technology that will play a major role in the digital economy.

Every indication suggests that China intends to take a lead in developing blockchain applications.

Nevertheless, in April, the central bank issued a statement confirming all Chinese cryptocurrency traders and exchanges had been closed.

Before the ban, China accounted for 75% of the world’s cryptocurrency transactions.

The market has explained China’s cryptocurrency stance as a bid for the state to control the internal market by removing all competition and only allowing interaction with approved technologies.

The central bank claimed the blanket ban was a campaign to stamp out rogue traders and fraudsters ‘charging investors exorbitant fees and rates of interest while deceiving them to invest in ICOs that were just fronts for stealing their money.’

Hybrid US Dollar Cryptocurrency Launched By Bank

Graham Trafford
-
0
Hybrid US Dollar Cryptocurrency Launched By Bank

Just as the US Fed talked down the possibility of a US dollar virtual currency, a bank has launched a streamlined online version of the world’s major currency.

Goldman Sachs, one of the largest banks in America has announced the USD – the cryptocurrency not to be confused with the US dollar.

USD is a hybrid digital and offline currency which the banks wants to exist in both spaces at the same time.

The aim is to bridge the problems that seem to stop cryptocurrencies going mainstream.

USD will reside with the bank and not a peer-to-peer system, consumers cannot mine the currency and the value is pegged to the price of the real-world dollar.

Era of the open internet

The bank is also mulling the idea of other hybrid cryptocurrencies, with the Euro top of the list.

The project is a Goldman Sachs collaboration with fintech start-up Circle.

“The invention of cryptographic assets and blockchain-based computing have ushered in the next major era of the open internet,” said a Circle blog .

“But a price-stable medium of exchange and store of value is missing, and badly needed in order for global financial interoperability to function reliable and consistently.”

Meanwhile, St Louis Federal Reserve Bank President James Bullard debunked cryptocurrencies in a speech.

He argues that they are not equipped to compete with the US dollar and are unlikely to take over as a mainstream currency in the foreseeable future.

Currency competition game

“They’ve got to compete just like everybody else. Welcome to the currency competition game,” Bullard said.

“Cryptocurrencies may be unwittingly pushing in the wrong direction in trying to solve an important social problem, which is how best to facilitate market-based exchange.

“The dollar, on the other hand, is backed by a stable government with direct and sensical monetary policy and persistently low inflation — because of that, it can better achieve the goals and meet the needs of the market.

“The dollar is in great shape and will stay in great shape because it’s been the winner for a long time. Unless we screw up, I think the dollar is going to remain the dominant currency.”

However, even though he talked down cryptocurrency as a means of exchange, Bullard confirmed the blockchain will pay a future role in finance.

What Are The Most Popular Cryptocurrencies?

Anna Webb
-
0
What Are The Most Popular Cryptocurrencies?

Virtual currency like Bitcoin and Ethereum are financial buzzwords, but what are the other top cryptocurrencies and how much of a market share do they have?

Investors are flocking to the most well-known digital currencies in a bid to turn a buck, but the real profits are in buying low and holding for the long-term.

But what other cryptocurrencies are there?

Well, the market has around 1,600 live currencies.

Some are coins, which live on their own blockchains – the secure underlying infrastructure that records transactions and ownership of virtual currency.

Coins or tokens?

Others are tokens – these piggy-back a coin’s blockchain and have no infrastructure of their own.

Bitcoin, which is 10 years old in 2019, is by far the biggest player, with a market cap of £142.39 billion – you would have to add up the next six in the list to come near the market cap of Bitcoin.

Go to the informative Coinmarketcap.com to find the full listing, financial data and links to charts and trading history.

Many cryptocurrencies have a scant financial background and do not list their market cap.

If you are looking to invest, some points to consider are:

  • Who controls supply and is supply finite – this impacts price
  • Is the currency a coin with a blockchain and not a token?
  • Are the developers contactable?
  • Where is the coin based and what is the legal jurisdiction, should things go wrong?
  • Is the blockchain an open source code?

Top 20 cryptocurrencies by market cap

Below is a list of the top 20 cryptocurrencies by market capitalisation:

RankCurrencyMarket cap (billions)Value
1Bitcoin$142.39$8,356.76
2Ethereum$70.35$706.64
3Ripple$27.40$0.69
4Bitcoin Cash$22.07$1,288.75
5EOS$11.48$13.34
6Litecoin$7.89$139.56
7Cardano$6.60$0.25
8Stellar$6.13$0.33
9IOTA$5.23$1.88
10TRON$4.59$0.069
11NEO$3.94$60.72
12Dash$3.27$405.97
13Monero$3.26$203.56
14NEM$2.87$0.31
15VeChain$2.35$4.47
16Tether$2.30$1.00
17Ethereum Classic$1.83$18.06
18Bytecoin$1.77$0.009
19ICON$1.47$3.81
20Qtum$1.45$16.40

Source: Coinmarketcap.com – May 17, 2018

NASDAQ To Power New Cryptocurrency Platform

Anna Webb
-
0
NASDAQ To Power New Cryptocurrency Platform

A new type of cryptocurrency exchange fuelled by the powerful NASDAQ matching engine will launch in June.

DX Exchange will give consumers the option of buying a dual online and offline account that accepts major fiat currencies and cryptocurrency.

The exchange will also have a platform for OTC derivatives and digital currency tokens as well as coins.

The underlying NASDAQ technology is seen as vital for the project.

The matching engine is the system driving more than 70 stock exchanges around the world and offers state-of-the-art security, technical innovations and a fast, seamless across different countries.

DX Exchange will not charge trading fees in favour of charging a monthly 10-euro subscription to traders to lure consumers from around the world.

Closed to US traders

CEO Daniel Skowronski said: “Crypto enthusiasts shouldn’t have to pay more than a minimal membership charge to trade with their peers, and they shouldn’t have to trade in an unregulated and unsecured environment.

“The combination of NASDAQ technology and the DX Exchange interface is one that will create a one-of-a-kind, fair trading experience, that puts the traders first.”

DX Exchange will have six cryptocurrencies listed on opening day including Bitcoin, Bitcoin Cash, Ethereum and Litecoin – but this will stretch to more than 20 soon after.

Skowronski also expects to offer more tokens after they have passed a strict vetting procedure.

The exchange is closed to US traders, but is fully licensed by the Estonian Financial Services Authority (EFSA) and CySEC, the Cypriot market maker regulator.

eToro moves into digital currency

Global fintech firm eToro is expanding cryptocurrency activities into the US.

CEO Yoni Assia has confirmed the company will launch a digital currency exchange and electronic wallet globally and in the States.

eToro will open an online trading platform in the US with an offering of 10 different cryptocurrencies.

“US crypto holders have a strong appetite for diversified portfolios,” said Assia.  “we’re committed to offering the best tools and assets to help them manage their investments all in one place.”

eToro claims to be the world’s largest social trading network with more than 6 million registered users.

Are Digital Currencies Really A Front For Major Crime?

Graham Trafford
-
0
Are Digital Currencies Really A Front For Major Crime?

One of the major criticisms levelled against cryptocurrencies are they are a front for organised crime – but is there any evidence to support the claim?

Justice officials around the world argue the anonymity of dealing in digital currencies helps crooks, terrorists and money launderers to ply their dirty trade across borders without fear of detection.

Undoubtedly, the new online frontier set up by the rise of cryptocurrencies has provided new opportunities for fraudsters to operate under the radar of financial regulators and the police.

But there seems to be little hard evidence to suggests digital currencies are any more liable to manipulation by serious criminals than any other financial activity.

Governments and regulators have issued some reports on the relationship between cryptocurrencies and financial crime – but none seem conclusive.

What the evidence says

A report by regulators in Hong Kong says: “While we have not found substantial risks in these newly developing payment methods or commodities, this is a rapidly developing area requiring continued monitoring.”

Research by the Center on Sanctions and Illicit Finance found: “The amount of observed Bitcoin laundering was small – less than 1% of all transactions entering conversion services.”

Bank of England governor Mark Carney alleges ‘a huge amount of illicit activity’ runs through the virtual world of cryptocurrency – but added that “cryptocurrencies aren’t a risk to the financial state as the amount involved are still small and cryptocurrencies are not connected to the financial system.”

And there’s the truth of the matter. Governments fear the potential of criminals exploiting cryptocurrencies because transactions cross-borders and are anonymous.

That is why they want to act now to establish control over what they view as a grey area hidden from their eyes.

Technological not financial revolution

A clear picture of how the authorities plan to take control of cryptocurrencies is emerging.

They understand they cannot control the consumers because they are not pegged down to a financial or legal jurisdiction, but they can regulate exchanges that have physical locations and personnel that can be subjected to the rule of law.

And the future of cryptocurrency does not appear to reside in Bitcoin, Ethereum or any of the many hundreds of other digital coins and tokens.

Big banks and corporations are moving into the cryptocurrency zone and they regard the blockchain as the key to the future of online transactions.

This makes cryptocurrency a technological revolution, not a move into decentralised currencies.

Bang Goes Cryptocurrency As Bing Bans Advertising

James Atkins
-
0
Bang Goes Cryptocurrency As Bing Bans Advertising

Microsoft is the latest online giant to impose a blanket ban on advertising for cryptocurrencies – including ICOs and electronic wallets.

The web giant’s Bing search engine will no longer support any advertising by cryptocurrency organisations.

The announcement came from Microsoft advertising policy manager Melissa Alsoszatai-Petheo.

In a blog message on the company web site she said: “We are always evaluating our policies to ensure a safe and engaging experience for our Bing users and the digital advertising ecosystem.

“Because cryptocurrency and related products are not regulated, we have found them to present a possible elevated risk to our users with the potential for bad actors to participate in predatory behaviours, or otherwise scam consumers.

Blockchain research goes on

“To help protect our users from this risk, we have made the decision to disallow advertising for cryptocurrency, cryptocurrency related products, and un-regulated binary options.

“Bing Ads will implement this change to our financial product and services policy globally in June, with enforcement rolling out in late June to early July.”

The Bing search engine already bans some virtual currency advertising, according to the company web site, which states: “Virtual currencies designed to facilitate illegal purposes, eg, to avoid applicable taxes, money laundering, promotion of fake/forged virtual currencies.”

The company joins Facebook, Google and Twitter, which have already announced their own bans that are due to start in June.

Microsoft stresses that the company is not anti-cryptocurrency and says a research team will continue to work on blockchain applications.

Plan to build a digital ID hub

In February, the company revealed a team is working on a digital identity hub for online users.

“Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individuals need a secure encrypted digital hub where they can store their identity data and easily control access to it,” said Ankur Patel, principal program manager at Microsoft’s Identity division

“The self-owned identity would be easy to use and provide users with complete control over how and when it is used.”

Cynics might say this strategy is an attempt by Microsoft to collect personal data for exploitation in the same way as Google and Facebook power their profits.

Will Bitcoin Take Over As The World’s Single Currency?

James Atkins
-
0
Will Bitcoin Take Over As The World’s Single Currency?

I’ve been watching with interest as several so-called commentators and experts have wheeled out their opinions about Bitcoin and cryptocurrency in general.

There seem to be three camps – those violently against the idea of investing in digital currency, those urging everyone to throw everything they have got into the pot and some wiser heads sitting between the two.

And the strength of opinions seems to be as volatile as the price of Bitcoin.

Take JP Morgan CEO Jamie Morgan.

He was interviewed and said he had come out against Bitcoin and felt so strongly that the cryptocurrency was no good that he would fire any JP Morgan staff who had invested in the cryptocurrency.

Change of mind

But that was until he found out his daughter had staked some money in Bitcoin. I guess he can’t fire her.

Then I’ve read that JP Morgan has had a change of mind, which I guess means Jamie Diamond has as well.

So is there something to Bitcoin?

I believe there is. I really believe that there will be a global digital currency but I’m not so sure it will be Bitcoin.

Others have their views.

Investment guru Warren Buffett believes Bitcoin is a dud, while expert on all things internet John McAfee reckons every Bitcoin will be worth a billion dollars.

Bitcoin worth a billion dollars?

I don’t think either of them has got it right. Warren is a famous investor, but he looks at cash flow. He looks at how existing companies perform, not things that are new. He didn’t invest in Google because he didn’t get it. He did not see the opportunity in Facebook

Perhaps he doesn’t get the new world and new technology. I believe he doesn’t use email or a computer. So I guess Warren’s not going to buy into Bitcoin.

At the other end of the scale is John McAfee. I don’t think a Bitcoin is going to hit a billion. If you watch him being interviewed and look at his body language, it’s suspicious. I’m going to say he is prone to exaggeration.

Maybe I should put it stronger, but John McAfee and Bitcoin hitting a billion. No chance.

I prefer to go along with Jack Dorsey, the Twitter joint founder, who says he believes there will be a digital currency in the future and hopes it will be Bitcoin. I’ll buy into that because I like Jack and I believe there will be a digital currency.

I’d like to know your opinion about Bitcoin and cryptocurrency. Do you go along with Warren Buffett or John McAfee? Or are you with me and believe Jack’s right?

Bank Files For Blockchain Payment System Patent

James Atkins
-
0
Bank Files For Blockchain Payment System Patent

American banking giant JP Morgan Chase has filed for a patent in the US demonstrating how to use the blockchain to make financial transactions quicker and easier.

The patent documents describe how payments would be sent between banks on a peer-to-peer network which provides “a unique system for recording transactions and storing data.”

The patent application explains:

How the bank will use blockchain

“A method for processing network payments using a distributed ledger may include:

(1) a payment originator initiating a payment instruction to a payment beneficiary;

(2) a payment originator bank posting and committing the payment instruction to a distributed ledger on a peer-to-peer network;

(3) the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a peer-to-peer network; and

(4) the payment originator bank validating and processing the payment through a payment originator bank internal system and debiting an originator account.”

The filing also discusses how a distributed ledger or blockchain improves current banking software to make recording real-time transactions quicker and cheaper.

“For a cross-border payment to be made from a payment organisation to a payment beneficiary, a number of messages must be sent between the banks and clearing houses involved in processing the transaction,” the applications says.

“This often results in a slow transaction, as there may be delays in service due to correspondent banking, messagingnetworks, and clearing intermediaries in the payment flow.”

Critical information rethink

Although the US Patent & Trademark Office has only just published details of the application, the papers were filed in October 2017.

A few days before the filing, JP Morgan Chase launched an Ethereum offshoot called Quorum offering a similar payment service.

Then, Emma Loftus, head of global payments and foreign exchange at the bank, said: “Quorum will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays. Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks.”

The Royal Bank of Canada and Australia’s ANZ Bank joined the payment platform at the start and other banks are expected to follow them.

Blockchain Flash Of Inspiration For Photographers

James Atkins
-
0
Blockchain Flash Of Inspiration For Photographers

Photographic giant Kodak has unveiled a new online image policing app designed to track copyright pirates.

Powered by the blockchain and Kodakcoin, the app monitors the licensing of images for use on web sites.

Image rights holders are paid their royalties as Kodakcoin, which can be spent within the online community or converted into cash.

Kodak recognised that the corporation’s inability to cope with the digital revolution in cameras has damaged the brand but believes an early entry into digital rights management with KodakOne will provide photographers with a revenue stream by protecting their work online.

KodakOne stores images and their metadata on a secure blockchain database and lets photographers manage licensing, while providing proof of the transaction.

Web crawler searches for image pirates

At the same time, a web crawler will constantly search millions of web sites to detect any unauthorised use of images and ‘softly persuade’ offending publishers to pay a licence fee rather than face court proceedings.

Kodak CEO Jeff Clarke says that Blockchain and cryptocurrency are hot buzzwords, but these buzzwords may be key for photographers who have struggled to control their work.

“Kodak has always sought to democratize photography and make licensing fair to artists. These technologies give the photography community an innovative and easy way to do just that,” he said.

The company explained that KodakCoin hopes to establish a new economy for photographers that provides a fast and efficient real-time payment system that does not involve exchanging currencies.

Safe financial and business environment

WENN Digital is operating the platform for Kodak.

CEO Jan Denecke says KodakOne and KodakCoin are a safe environment for photographers looking to monetise their work.

“Engaging with a new platform, it is critical photographers know their work and their income is handled securely and with trust, which is exactly what we did with Kodakcoin,” said Denecke.

“Subject to the highest standards of compliance, Kodakcoin is all about paying photographers fairly and giving them an opportunity to get in on the ground floor of a new economy tailored for them, with secure asset rights management built right in.”

KodakCoin is designed to exchange for camera and lighting equipment, flights, hotels and other expenses regularly paid by photographers on local and international assignments.

Indian Cryptocurrency Ban Challenged In Courts By Exchanges

Graham Trafford
-
0
Indian Cryptocurrency Ban Challenged In Courts By Exchanges

Bitcoin exchanges in India have launched a joint legal action against the Reserve Bank of India’s decision to ban banks from any dealings with cryptocurrencies.

The directive cut digital currency exchanges off from the banking network and effectively closed their businesses.

In April, the central bank sent a circular out telling exchanges to stop trading with immediate effect.

“Entities regulated by the Reserve Bank shall not deal in virtual currencies or provide services for facilitating any person or entity in dealing with or settling virtual currencies,2 said the notice.

“Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them, transfer or receipt of money in accounts relating to purchase or sale of virtual currencies.”

Virtual currencies not illegal

More than a dozen exchanges have signed up to the legal challenge in India’s Supreme Court.

They claim the ban is unfair and uncalled for as virtual currencies are not illegal in the country.

“Banking is an essential service. How can one deny access to an essential service when I am not doing anything illegal? You have not declared virtual currencies illegal in the country,” said a spokesman.

The bank ordered the exchanges to cease trading by July 5. The impending deadline has triggered the action in the courts.

Many digital currency traders have turned to crypto-to-crypto trading to cut the banks out of the process.

Ban stops criminals, says government

“Even if there was no Reserve Bank of India circular, the crypto to crypto product would have happened. However, because of the circular and the fact that fiats may no longer be in the picture, it hurried the process and encouraged the solution sooner,” said Ajeet Khurana, the CEO of exchange Zebpay.

The government claims the ban was put in place to stop “anti-national, illegal and nefarious activities such as terrorism funding, illegal trade of arms and drugs, bribery, money laundering, tax evasion, payment of ransom etc” and that cryptocurrency trading violates several financial laws.

Although exchanges have issued a writ to protect their businesses, no investors have laid papers before a court questioning the validity of the ban.

Dark Web Hacker Had A Secret Stash Of Bitcoin

Anna Webb
-
0
Dark Web Hacker Had A Secret Stash Of Bitcoin

Dark Web hacker Grant West was the first cyber crook arrested in Britain with his fingers on a keyboard.

Undercover police snatched his encrypted laptop before he could log out while he was travelling on a train between Wales and London.

A detective sitting next to West waited until he logged on to his computer and then signalled colleagues to move in.

The information on the laptop enabled detectives to unravel his online crimes as part of a two-year investigation.

West, 25, of Minster-on-Sea, Kent, UK, admitted two counts of conspiracy to defraud, unauthorised modification of a computer, separate offences of offering, attempting and possession with intent to supply cannabis, criminal property and money laundering.

He will be sentenced at Southwark Crown Court later this month.

Lavish lifestyle

Police also seized £500,000 in Bitcoin West had hidden in several accounts around the world.

The authorities were alerted to West’s criminal activity when several customers of takeaway food app Just eat reported a phishing email seeking their bank details to police.

Detectives discovered West had hacked into the accounts of 200 major online retailers and stolen the details of 78 million customers.

Using the tag ‘Courvoisier’, West sold the financial details of his victims to criminals on the Dark Web for thousands of pounds.

His ‘customers’ paid him in Bitcoin which he spent on a lavish luxury lifestyle, including a £40,000 Audi car and regular trips to Las Vegas, where he gambled and spent money on prostitutes.

Cash in a caravan

West was aided by his girlfriend Rachel Brookes, who lent him her laptop to carry out his crimes.

She admitted conspiracy to defraud but escaped jail with a two-year community service order.

This led to his undoing, as police traced an electronic trail back to her computer and IP address of her router at home.

West also bought and sold cannabis online.

Despite loving the high life, West lived in a caravan, where police found £25,000 in cash. In nearby storage units he rented, they also found half a kilo of cannabis.

Detective Chief Superintendent Mick Gallagher, head of the Metropolitan Police’s Organised Crime Command, said West’s arrest followed “old-style detective work, covert methods and high-end cyber work.”

Ripple Sued For Alleged SEC Violations By Trader

James Atkins
-
0
Ripple Sued For Alleged SEC Violations By Trader

The battle is on between Ripple creators and investors to prove if the cryptocurrency is a security or not.

One investor has filed a multi-million dollar suit for damages claiming Ripple is traded in violation of US security laws.

Regulator the Securities Exchange Commission (SEC) says Ether and Ripple have all the hallmarks of securities and could be considered as such but has not made an official ruling to date.

But the creators are urging the SEC to reconsider because if they are designated as securities, they are in contravention of trading rules and could face law suits from unhappy investors who may have lost money invested in the cryptocurrencies.

Classification as securities also weighs down cryptocurrencies with legal duties and costs of meeting strict regulation.

Unregistered sales claim

The move to class Ripple as a security has triggered a class action by one unhappy investor from San Diego.

He has filed a suit against Ripple Labs, the CEO and a subsidiary company seeking damages.

The claimant explained he bought 650 XRP for $2.60 each – a total of $1,690 – on January 6 this year and sold at $1.70 ($1,105) on January 18, generating a loss of $585.

Ripple is currently trading at around $0.74 cents after hitting an all-time high of $2.70 on January 7, according to web site Cryptocompare.

The suit alleges that the defendants raised hundreds of millions of dollars from the unregistered sale of XRP to retail investors, violating state and federal securities laws.

Not a security, says Ripple

“The defendants have engaged in an ongoing scheme to sell Ripple to the public in a never-ending ICO which accelerated rapidly in 2017 and early 2018,’ say the court papers.

“The XRP offered and sold by the defendants have all the traditional hallmarks of a security. However, the defendants did not register XRP with the SEC, and many of the representations the defendants made regarding XRP were designed to drive demand of XRP, allowing them to obtain greater returns on their XRP sales.”

Ripple’s chief market strategist, Cory Johnson, commented in April, before the law suit was laid: “We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law.”

If the action succeeds, the way is open for disgruntled investors to issue writs through the courts against cryptocurrencies to demand damages for their losses

1...5678Page 6 of 8