Archives: Virtual Currency

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FSB Releases its Directory of Crypto-Assets Regulators—In Anticipation of Upcoming G20 Meeting

The Financial Stability Board issued its Crypto-assets regulators directory on April 5, 2019, in anticipation of this week’s upcoming G20 Meeting. The directory contains a listing of the regulatory and standard-setting bodies in each FSB jurisdiction having responsibility for the supervision of crypto-assets and the enforcement of relevant legal and regulatory requirements. The directory will be provided to … Continue Reading

New Malware Targets Big Banks and Cryptocurrency Apps

New malicious malware dubbed “Gustuff” targets big banks, fintech companies and cryptocurrency apps, according to the security firm Group IB. According to Group IB, which discovered Gustuff on hacker forums, the new malware is affecting Android devices and is “a mobile Android Trojan, which includes potential targets of customers in leading international banks, users of … Continue Reading

Hack of Electrum Wallets Reaps over 200 Bitcoin (around $750,000)

A scary scheme by hackers recently successfully lifted Bitcoin from Electrum wallet owners to the tune of approximately $750,000. The scheme worked like this: the attackers added anywhere between 33 and 50 malicious servers to the Eletrum wallet network. When legitimate owners of Electrum Bitcoin wallets initiated a Bitcoin transaction after December 21, 2018, if … Continue Reading

Bitcoin Firm Alleges Manipulation of the Bitcoin Cash Network that is Alleged to Have Resulted in a $4 Billion Industry Meltdown

United American Corp., operating as UnitedCorp, filed a lawsuit in the United States District Court for the Southern District of Florida last Thursday alleging that several prominent figures in the Bitcoin cryptocurrency market essentially “hijack[ed] the Bitcoin Cash network” causing widespread harm to U.S. Bitcoin holders. In the twenty-seven page, and one hundred and twenty-two … Continue Reading

Treasury’s “Unified Regulatory Sandbox” Proposal– Keeping America’s Financial Technology Sector Competitive Will Require Innovation—And Cooperation

In its July 2018 report on “A Financial System that Creates Economic Opportunities,” the U.S. Treasury Department outlined its proposals to identify improvements to the regulatory landscape to “better support nonbank financial institutions, embrace financial technology, and foster innovation.” The Treasury Report contains over 80 specific recommendations for “Embracing Digitization, Data and Technology,” “Aligning the … Continue Reading

New York AG Warns Investors of Risks of Trading on Cryptocurrency Exchanges

As part of its Virtual Markets Integrity Initiative, on September 18, 2018,  the New York Attorney General’s Office issued a report reviewing the platforms of various cryptocurrency exchanges. The initiative arose from the recognition that online virtual currency exchanges perform functions markedly similar to traditional stock exchanges and broker-dealers, but are generally not registered under … Continue Reading

New Patent Looks to Blockchain for Drone Security

According to recent documents made public by the U.S. Patent and Trademark Office (USPTO) IBM has applied for a patent for a system that would use distributed ledger technology to address privacy and security concerns associated with the increasing usage of drones in both commercial and recreational applications. In the application for this patent, IBM’s … Continue Reading

U.S. Moves Ahead with Federal “Fintech Sandbox” — CFPB Announces Creation of Office of Innovation

In an effort to promote the development of new financial technology (fintech) products, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (CFPB), announced last week the creation of the Office of Innovation. Mulvaney said the new division, to be run by Paul Watkins under the umbrella of the CFPB, is designed to foster … Continue Reading

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
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