In the latest example of security risks attendant to initial coin offerings (ICOs), on August 21st the blockchain startup Enigma reported that online scammers used fake solicitations for an ICO presale to steal approximately $500,000 in ether (a virtual currency) from investors.

Enigma is a blockchain startup incubated at MIT Media Lab that is in the process of rolling out its first product, known as Catalyst. Catalyst is described as a platform providing data sets and developmental tools specifically geared for hedge funds focused on cryptocurrency markets. Enigma’s funding was to be derived, in part, from a planned a token sale on September 11, 2017, with a goal of raising $20 million worth of ether.  
Continue Reading Scammers Strike Enigma Initial Coin Offering

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 attempts to establish model standards for the regulation of business activities tailored to virtual currencies.

Specifically, the uniform act would regulate businesses whose products and services include: (1) the exchange of virtual currencies for cash, bank deposits, or other virtual currencies; (2) the transfer from one customer to another of virtual currencies; or (3) certain custodial or fiduciary services in which the property or assets being controlled or managed include virtual currency. The act includes several exemptions from regulation for banks, securities brokers, personal or household purchases, blockchain data miners and others.
Continue Reading Primer on the Draft Uniform Regulation of Virtual Currency Businesses Act

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

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

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

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

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

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