Archives: Virtual Currency

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Bitfinex Stops Trading After Cyber-Attack

Bitfinex, a global digital currency exchange, paused trading last week when it experienced a distributed denial-of-service attack. During the pause in trading, it announced to users that “Bitfinex is currently under extreme load. We are investigating the issue and will keep you all up to date as we learn more.” The company resumed trading after … Continue Reading

Rumor Mill Suggests Fidelity Investments Might Open Cryptocurrency Exchange

While many traditional financial institutions hesitate to embrace cryptocurrencies such as bitcoin, a recent news report suggests that Fidelity Investments, the fourth largest U.S. asset manager, is looking to enter the fray. Business Insider reported last week that Fidelity has posted internal job listings for systems engineers “to help engineer, create, and deploy a digital … Continue Reading

Bezop Cryptocurrency Investors’ Personal Information Exposed

Kromtech Security has reported that the sensitive personal information of more than 25,000 investors of Bezop cryptocurrency was exposed when a MongoDB database was left unsecured. The security incident is reported to be linked to a distributed-denial-of-service attack that occurred earlier this year. The investors’ compromised information included their names, addresses, email addresses, photocopies of … Continue Reading

Developing Crypto’s Regulatory Landscape: A Survey of Recent Actions by Federal Regulators to Fence Off Jurisdiction Over Virtual Currencies

In the decades that followed the enactment of the Homestead Act of 1862, more than 1.6 million U.S. citizens and intended citizens filed applications with the U.S. government to lay claim to 160 acres of land guaranteed to each applicant willing to settle, farm and improve the lands. Settlers quickly encountered a major problem. The … Continue Reading

Wyoming Enacts Comprehensive Blockchain Legislation

As numerous states propose and enact legislation focused on blockchain technology and cryptocurrencies, in 2018, no state has been more aggressive in this space than Wyoming. In March, the state legislature passed several bills impacting cryptocurrency businesses, each of which is designed to position Wyoming as a blockchain-friendly environment for businesses. B. 0019: This bill … Continue Reading

HaoBao Malware Hitting Banks Scans for Bitcoin Activity

Lazarus, the well-known hacking group responsible for the WannaCry ransomware attack from last year, as well as the attack on the Bangladesh Central Bank and Sony, is now targeting global financial firms and Bitcoin adopters with a phishing campaign dubbed “HaoBao.” The phishing campaign was discovered by McAfee Labs in mid-January. The way it works … Continue Reading

Nationwide, State Legislators Push Blockchain-friendly Legislation

As previously reported, state legislatures throughout the country continue to propose legislation designed to facilitate the use of blockchain-based technology by businesses within their states. In recent weeks, legislatures in Florida and Nebraska have each proposed laws streamlining the transaction of business electronically and through use of distributed ledgers on blockchain applications. In Arizona, the … Continue Reading

Initial Coin Offerings and Cryptocurrencies Will be a Priority for FINRA in 2018

In a ten page letter that previews the Financial Industry Regulatory Authority’s (FINRA) priorities for 2018, initial coin offerings (ICOs) and transactions involving cryptocurrencies. This follows previous warnings by both the Securities and Exchange Commission (SEC) and FINRA about the risks associated with investing in ICOs and virtual currencies, including Bitcoin. SEC Chairman Jay Clayton … Continue Reading

Proposed Legislation in New York Would Recognize Enforceability of BlockChain Transactions and Explore Applications of Technology

While the investment potential of cryptocurrencies, including BitCoin, has been all over the news in recent weeks, state governments have begun to explore the practical applications of blockchain – the technology underlying BitCoin.  In New York, Assemblyman Clyde Vanel introduced four bills in late November related to blockchain technology. The first, Assembly Bill 8780, would … Continue Reading

Early Adopter—Vanguard Announces Plan to Utilize Blockchain Technology

Top mutual fund firm The Vanguard Group, Inc. unveiled a plan last week to incorporate blockchain smart contract technology into some of its indexing operations beginning early next year. Vanguard’s initiative will be carried out through a partnership with the Center for Research in Security Prices (CRSP) and technology provider Symbiont and is intended to … Continue Reading

$64 Million in Bitcoin Stolen from NiceHash

Many are lamenting not purchasing bitcoin now that its value has skyrocketed. Yesterday, Massachusetts Secretary of State William Galvin warned investors to stay away from investing in bitcoin, as he considers it a financial bubble that is a gamble for investors. Galvin stated: “It’s simply a creation of a vehicle which doesn’t exist backed by … Continue Reading

SEC Brings Fraud Action Against ICO Creator

In its first lawsuit targeting Initial Coin Offerings (ICOs), the Securities and Exchange Commission (SEC) has filed fraud charges against the creator of the ICOs marketed as “REcoin” and “DRC.” The action, filed in the United States District Court for the Eastern District of New York on September 29, 2017, alleges that Maksim Zaslavskiy, operating … Continue Reading

Alabama Adopts New Law Governing Virtual Currency Transactions

This month a new law governing virtual currency and online transactions went into effect in Alabama. The Alabama Monetary Transmission Act was passed by the legislature in May and replaces the “Sale of Checks Act” which had been in effect since 1961. The legislation regulates transactions involving virtual currency, such as BitCoin, as well as … Continue Reading

Primer on the Draft Uniform Regulation of Virtual Currency Businesses Act

The Uniform Law Commission is set to vote on a draft Uniform Regulation of Virtual Currency Businesses Act at its upcoming annual meeting in San Diego beginning on July 14th. As numerous states and federal regulators have already begun the process of regulating virtual currencies through “money transmitter” statutes or related legislation, the uniform act … Continue Reading

Bitcoin Exchange Bitfinex Hacked

Bitcoin Exchange Bitfinex, based in Hong Kong, was hacked last week, incurring a whopping loss of $65 million. It was shut down last week after 119,756 bitcoins were stolen from users’ accounts. According to Bitfinex, “after much thought, analysis and consultations” it has decided to spread the loss across all of its users, including those … Continue Reading

Blockchain: What is all the buzz about?

Blockchain technology, introduced as the magic behind Bitcoin, is being touted by many as the next major disruptive innovation – in global trade and way beyond. At its core, Blockchain shifts the accounting function from third-party financial institutions and intermediaries to thousands of nodes (computers) on the Blockchain network that collectively maintain a public ledger … Continue Reading

Bitstamp obtains first payment institution license in the world

Bitstamp, the third largest Bitcoin exchange in the world and located in Luxembourg, announced on April 25, 2016, that it has obtained a payment institution license from Luxembourg, which means it is the first nationally licensed Bitcoin exchange in the world. The license was obtained through the European Union’s passport program, which gives reciprocity for … Continue Reading

Bitcoin traders allegedly bribe pastor to conduct transactions

New York federal prosecutors allege in an unsealed indictment that Trevor Gross, a New Jersey pastor at Hope Cathedral and Chairman of a credit union, was bribed $150,000 by illegal bitcoin traders to complete transactions for Coin.mx. The unregistered bitcoin exchange was reportedly behind the hacking of a major bank that affected up to 83 … Continue Reading

Bitcoin miners Butterfly Labs agree to settlement with FTC

The Federal Trade Commission filed a complaint against Butterfly Labs, alleging that it charged customers for Bitcoin mining machines (BitForce) and then failed to deliver them until they “were practically useless, or in many cases, did not provide the computers at all.” Over 20,000 customers did not receive the BitForce computers they had purchased. The … Continue Reading

NY Dept. of Financial Services releases final Bitcoin license regulations

The New York Department of Financial Services (NYDFS) made history last summer when it proposed Bitcoin regulations (reportedly the first in the nation) including the requirement that financial firms handling virtual currencies or Bitcoins in New York or for New York residents to obtain a license from NYDFS. On June 3, 2015, the NYDFS adopted … Continue Reading
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