roadrunner

Just recently, a software developer and “Solidity nerd” called Bunny Girl has sparked heated conversations within the cryptocurrency community over a smart contract that reveals a process called a “Request For Reorg contract (RFR).” On Twitter, Bunny Girl explained that the contract “creates a mechanism that allows users to pay miners to reorg the Ethereum blockchain.” Ever since then, the tweet went viral and there have been lots of debates over whether or not blockchains, in general, are immutable. Solidity Developer Reveals Blockchain Reorganization Smart Contract for Ethereum Conversations and debates concerning blockchain immutability have been taking place for years, and a fresh new discussion has ignited over a tweet and smart contract published on Github by the developer Bunny Girl. On July 10, Bunny Girl explained that the smart contract aims to enhance systematic chain reorganizations. A blockchain reorganization is a contentious subject and basically occurs when a chain of recorded blocks is invalidated. Reorganizations have taken place on various blockchains when a mining entity or group of miners controls more than 51% of the hashrate. Blockchain reorganizations force miners (not participating in the reorg) back to a point where they have to start again from a specific block height. It’s akin to rolling back a recorded history of transactions and then re-recording them again, but of course, the new transactions would never be the same as the ones that were erased. Releasing NFTs to commemorate Ethereum chain reorgs. Every time you request a reorg with the contract, you can mint one of these UniV3-like NFTs. The higher the bribe attached to the reorg, the more rare your NFT becomes. pic.twitter.com/dVSqZ1QqZg — Bunny Girl (@0xbunnygirl) July 11, 2021 Bunny Girl’s tweet explained how Ethereum developers can “codify chain reorgs” by leveraging the smart contract. “Announcing the Request For Reorg contract (RFR),” Bunny Girl said. “This contract was inspired by a tweet by @EdgarArout. Are there ways we can perform payments to miners for reorgs in an on-chain manner?” “Using the example of the $40m Binance hack,” Bunny Girl added, “what if Binance wanted to pay out a bounty to miners for re-orging the chain to exclude the hacker’s tx? They could pay out a lower amount than the hack e.g. $10m. It turns out this is all possible with what Solidity has to offer. First, Binance will ask that the transaction be mined at a specific block in the past. They will attach the reward amount for doing so in the form of ETH.” The software developer continued: Next, the miner will perform the time bandit. They would go back in time to mine a block from the past. This time, they include their `reorg` tx, which sets them as the claimant for the reward attached to the reward. What happened to the previous request tx? Since the state is rolled back, there isn’t a request in the first place right? Easy, we reconstruct the state by including the `request` tx first. OLD STATE: Block N+1 = [request]. NEW STATE: Block N = [request, reorg]. Furthermore, Daniel Goldman followed up on Bunny Girl’s RFR smart contract with an idea that disincentivizes reorgs called “Deorg.” “Published Deorg: a contract to create bounties for disincentivizing reorgs, all on-chain,” Goldman tweeted. After Goldman published his idea on Twitter, one person asked if the Deorg concept would “make a great incentive to miners to ‘hope’ for situations to trigger a reorg/deorg smart contract battle?” Goldman responded: If there’s gonna be a battle, best that both sides show up to the battlefield armed. Is It Misleading to Describe Blockchains as Immutable? The RFR thread was followed by an extremely mixed reception. “So we just ignoring immutability now?” asked one person in response to Bunny Girl’s tweetstorm. Others made fun of Ethereum with memes and some mentioned past controversies like the DAO rollback incident, which caused the Ethereum Classic fork. Others claimed that once Ethereum 2.0 reaches finality, it won’t be possible with proof-of-stake (PoS). Responding to the immutability comment, Bunny Girl said: “This affects time to finality. My guess is that if people use this, immutability wouldn’t be affected if the block already is deep in the chain.” In a 'reorg as a service' scenario, who is behaving badly? -The writer of the software that enables it? -The miner that accepts the fee to conduct the reorg? -The party that pays the fee to 'purchase' the reorg? -All of the above? -None of the above? -Some mix of the above? — Angela Walch (@angela_walch) July 11, 2021 Bunny Girl also didn’t take too kindly to some of the bitcoiners attacking the RFR thread. The developer noted that the fact that Ethereum can reorg the chain via smart contracts is “epic” and bitcoiners were “jealous.” The conversation also fragmented away from Bunny Girl’s thread and brought up the debate about whether or not blockchains are even immutable at all. Angela Walch, research associate at the UCL Centre for Blockchain Technologies discussed the subject on Twitter as well, and talked about the term “immutable.” “For *5 YEARS* I have been arguing that it is misleading to describe blockchains as *immutable*,” Walch said. “The ‘reorg as a service’ discussion on Ethereum is only the latest manifestation of why. Blockchains are unchangeable only if the people who comprise them *choose* not to change them.” Walch believes the word “immutable” is a poor term to use when describing blockchain technology and she wrote about it in her paper called “The Path of the Blockchain Lexicon (and the Law).” Bitcoin’s Rollback in March 2013 and the Perpetual Motion Claim of an Immutable Blockchain Walch and many others have been discussing the subject for years and it was a hot debate when Binance CEO Changpeng Zhao (CZ) mentioned a reorg after his exchange lost $40 million worth of BTC. Tim Swanson told Walch that he and Ernie Teo talked about the problem in November 2015. Bitcoin Uncensored cohost Chris DeRose published a paper on immutability on July 7, 2016, called: “Why Blockchain Immutability is a Perpetual Motion Claim.” DeRose wrote at the time: Immutability! It’s the buzzword that magically transforms a simple database into the next million dollar VC fundraise. Further, In March 2013, Arvind Narayanan described a similar situation where Bitcoin (BTC) developers coordinated to get a large mining pool to revert the chain to prior software after an accidental fork took place. At the time, the inventor of Ethereum, Vitalik Buterin questioned the move and said “the incident opens up serious questions about the nature of the Bitcoin protocol and puts into the spotlight some uncomfortable facts about Bitcoin’s notion of ‘decentralization.’” Bitcoin is not immutable, but in 5,000 years of recorded history it’s the best we’ve got https://t.co/byHIMHbzLT — Hector (@hectorr159) July 11, 2021 There have been countless claims that Bitcoin is immutable and the word has been tossed around so much in the industry it’s like second nature and barely questioned. One individual argued that Walch was “ignoring the concept of confirmations, therefore your assessment is incorrect.” Walch replied: “I’m not ignoring them. That’s orthogonal to my point that it is misleading to describe blockchains as immutable.” There seem to be too many variables pointing to the fact that blockchain immutability really is a perpetual motion claim. Moreover, while blockchains like BTC and ETH are safe today, the rulesets and concepts of making it very hard to change blocks must be resilient to the whims of future generations as well. What do you think about the recent debate over blockchain immutability? Let us know what you think about this subject in the comments section below. View the full article

Nigeria’s peer-to-peer bitcoin trade volumes went up to just under $38 million in June 2021, the latest data shows. This surge becomes only the second time Nigerian P2P traded volumes have breached the $35 million mark in 2021. March 2021 is the only other period when P2P bitcoin traded volumes nearly surpassed the $38 million mark. Nigerian P2P Growth Unhindered by Central Bank Crypto Restrictions Still, as the data shows, the country’s June volumes surge had been preceded by the marginal drop of traded value to $35.2 million and $34.9 million in the months of April and May 2021 respectively. Nevertheless, both volumes still remain higher than the over $31 million which was recorded in February 2021. Nevertheless, the latest data (which is sourced from two P2P exchanges) once again suggests that Nigerian interest and usage of cryptocurrencies continue to grow despite the imposition of restrictions on crypto assets by the central bank. In early February 2021, the Central Bank of Nigeria (CBN) directed financial institutions to stop serving entities involved in cryptocurrencies. The measures took immediate effect and this also led to the immediate decline in the traded volumes of centralized exchanges. On the other hand, the growth in P2P volumes appears to show that traders have switched to platforms which the CBN cannot control or censor. Ghana Overtakes South Africa The same data shows that second-ranked Kenya’s June traded volumes dropped to $13.4 million from the $16.5 million that was recorded in May. However, this drop represents the first time the country’s upwards volumes growth trend has been shattered so far this year. Meanwhile, the latest data shows that Ghana has now replaced South Africa as the country with the third-highest P2P bitcoin trades after its volumes topped $11.2 million in June. With traded volumes of $7.7 million, South Africa is now ranked fourth on the continent. The Central Africa Republic, which recorded volumes of less than $50,000 in June 2019, is in fifth place after trades worth $1.85 million were recorded in June 2021. What are your thoughts on the latest African P2P bitcoin traded volumes? Tell us what you think in the comments section below. View the full article

After Major League Baseball (MLB) revealed a partnership with Candy Digital, the Los Angeles Dodgers announced it is auctioning a non-fungible token (NFT) World Series championship ring, a physical version, and a VIP first pitch experience. The NFT collection will start with an online auction on Monday, July 12, and net proceeds will go to the Los Angeles Dodgers Foundation (LADF). LA Dodgers Reveal World Series 2020 Ring NFT Another sports team is selling non-fungible token (NFT) assets, as the MLB’s Los Angeles Dodgers revealed plans to sell an NFT of a World Series championship ring hosted on the marketplace Candy Digital. The NFT package includes a 2020 Los Angeles Dodgers World Series ring NFT collectible and a VIP first pitch experience at Dodger Stadium. At approximately 9 a.m. (PT), Candy Digital will host the auction on July 12 up until 4 p.m. (PT) on Thursday. In addition to the 2020 World Series championship ring NFT, the Los Angeles Dodgers will also sell an open edition NFT that showcases a 2020 World Series logo and a Dodgers’ shooting ball NFT as well. Proceeds from the lower-end NFTs will also be donated to LADF and can be bought for $20.20. Candy Digital is the brainchild of Michael Rubin, the cofounder of the company Fanatics, and the entrepreneurs Mike Novogratz and Gary Vaynerchuk. “The Dodgers are excited to work with MLB and Candy to continue the franchise’s legacy of innovation as the first MLB Club with an officially licensed NFT,” Dodgers executive vice president and chief marketing officer Lon Rosen said in a statement sent to the press. Rosen further added: The opportunity to own a World Series ring in both digital and physical forms has never been offered previously, and we hope this is the first of many such drops as we continue to develop unique multifaceted experiences for our fans. World Series Ring NFT Auction Winner Gets a Physical Ring With the NFT’s Token ID The news stemming from the L.A. Dodgers follows MLB’s recent partnership announcement with crypto-collectibles startup Candy Digital. The first NFT launch featured the New York Yankees’ first baseman, Lou Gehrig. “The first NFT from MLB and Candy is a 1-of-1 NFT of Gehrig’s iconic ‘Luckiest Man’ speech that the Yankees legend delivered on July 4, 1939, at Yankee Stadium, after being diagnosed with ALS,” MLB reporter David Adler detailed at the time. The L.A. Dodgers NFT auction winner will receive the high-def single edition (1-of-1) Dodgers 2020 World Series champions ring NFT developed by RTFKT Studios and a physical ring as well specifically created for the auction. The physical ring will contain the NFTs token ID that can be verified on a public blockchain explorer. Alongside this, the winner will also get four premium tickets to a Dodgers game and a VIP first pitch experience at Dodger Stadium. “As MLB continues to look for new ways to engage with our fans, the Dodgers World Series ring NFT presents an innovative offering to commemorate the first World Series champion of the new decade,” MLB chief revenue officer Noah Garden explained during the announcement. What do you think about MLB and the Los Angeles Dodgers NFT auction? Let us know what you think about this subject in the comments section below. View the full article

The U.S. Federal Bureau of Investigation (FBI) issued an industry-wide warning about possible attacks on exchanges and crypto holders this week. The institution declared that there are threats actively tracking virtual asset platforms in order to take hold of these assets, causing financial losses in the process. Sim swapping, account theft and tech support staff are the means to accomplish these attacks. FBI Anticipates Cryptocurrency Attacks The FBI issued a warning against upcoming attacks on cryptocurrency exchanges and holders last week. The warning was distributed using the TLP protocol, designed to distribute the desired information with certain groups. It received the Green designation, meaning the FBI allows peers and partner organizations in the crypto community to share this information. The FBI states there are groups actively tracking vulnerabilities in these companies to take action. It explains these groups are using a group of techniques to achieve these means. These techniques include sim swapping, tech support fraud, and account stealing. The warning also details some recommendations for institutions to maintain their holdings safe: keeping watch on incoming mails and monitor accounts for unusual movements. The FBI advises cryptocurrency holders to always use two-factor authentication and be aware of the information they share on social media. However, it is very difficult to prevent sim swap attacks. Sim Swapping Sim swap attacks are difficult to tackle because they are relatively easy to complete. The attacker just needs to get hold of the telephone number of the potential victim. Then these attackers proceed in two different forms: the first one involves identity theft, with the attackers fooling tech reps into believing the affected person lost or damaged the sim card. This prompts them to issue a new sim card to the attacker. The other vector involves insider contacts in a telephone carrier. The attacker leverages this contact to obtain a new sim with the number of the potential victim. This allows them to gain access from exchanges even if there is some kind of multi-factor authentication defense in place. The FBI has warned about these dangers before. Some high-profile sim swapping cases have been in the public eye: Michael Terpin, a blockchain investor, sued AT&T for $200 million in damages for negligence after suffering a sin swap attack back in 2020. A judge ultimately dismissed the lawsuit, but it put sim swapping and cryptocurrencies in the public eye. Furthermore, Europol thwarted a sim swapping operation that had stolen more than $100 in cryptocurrencies last February. What do you think about the FBI’s latest warning on possible cryptocurrency attacks? Tell us in the comments section below. View the full article

Ghana’s proposed central bank digital currency is similar to fiat cash and therefore financial institutions, as well as fintech start-ups, can still create value based on it, a Bank of Ghana (BOG) official has said. Still, the official, Maxwell Opoku-Afari, the BOG’s deputy governor, says approval for the use of the digital currency will depend on the outcome of the piloting phase. Maintaining Ghana’s Lead As previously reported by Bitcoin.com News, BOG announced it was in the advanced stages of introducing a digital currency. At the time, BOG governor, Ernest Addison said the central bank’s move to introduce the CBDC fits with its objective of maintaining the central bank’s position as Africa’s leader when it comes to embracing emerging financial technologies. However, as one local media outlet reports, the first deputy governor has now revealed that Ghana will start piloting the digital cedi in a sandbox environment in September 2021. CBDCs and Value Additions Meanwhile, in his comments after the start of a two-day journalist training event, Opoku-Afari suggested a digital cedi would enhance digital transactions in the country. According to one report, Opoku-Afari said: Digital currency is part of the central bank acknowledging the need for digital payment and digital delivery of financial services. By this, the Bank of Ghana will provide a platform on which we can add more value to digital transactions. The first deputy governor also explained that the BOG had taken its time to design a digital currency that comes with “all the security features.” While many African central banks have signalled or revealed the different stages of their CBDC research or piloting, BOG will be one of the first central banks on the continent to actually roll out digital currency if it adheres to the timelines of its own road map. What are your thoughts on the latest remarks by a Bank of Ghana executive? Tell us what you think in the comments section below. View the full article

Guggenheim CIO Scott Minerd has made another prediction about where the price of bitcoin will be, a lower estimate from his previous “real bottom” price prediction. The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, returned last week with another bearish prediction for bitcoin. Minerd is also the chairman of Guggenheim Investments, the global asset management division of Guggenheim Partners, with about $270 billion in total assets under management. Minerd predicted last month that the “real bottom” of bitcoin would be $15K, based on its technicals. He discounted the $10K price level at the time, calling that level “a little extreme.” However, in an interview with CNBC Friday, Minerd indicated that the $10K level is now possible. “When we look at the history of crypto and we look at where we are,” he said: I really do believe this is probably a crash. And, you know, a crash would mean we’d be down 70%-80% which, let’s just say that’s between $10,000 and $15,000. The Guggenheim CIO continued: “Put it this way, I wouldn’t be in a hurry to buy bitcoin and I don’t see any reason to own it right now. If you’re going to be a speculator, speculate that it’s heading lower.” While Minerd continually predicted crashes and further sell-offs for bitcoin in the short term, he has maintained his long-term BTC price prediction of $400,000-$600,000. Meanwhile, Guggenheim has been trying to get more exposure to BTC. In June, the firm registered a fund that allows exposure to the cryptocurrency. According to its filing with the U.S. Securities and Exchange Commission (SEC), Minerd will be responsible for the day-to-day management of the portfolio. What do you think about Scott Minerd’s bitcoin prediction? Let us know in the comments section below. View the full article

Major asset management firm Capital International has gained exposure to bitcoin through investing in almost 1 million shares of Microstrategy which now holds more than 100K bitcoins. Capital International Investors (CII) informed the SEC in a filing dated July 12 that it has purchased shares of Microstrategy’s Class A common stock (MSTR). The filing states: CII is deemed to be the beneficial owner of 953,242 shares or 12.2% of the 7,782,568 shares believed to be outstanding. Capital International is a division of Capital Group, a global investment management firm established in Los Angeles, California, in 1931. The firm ranks among the world’s oldest and largest investment management organizations, with over $2.2 trillion in assets under management as of Dec. 31, 2020. Microstrategy has been acquiring bitcoin as its key strategy. On June 21, CEO Michael Saylor announced that his company’s bitcoin holdings had reached 105,085 BTC acquired for about $2.741 billion at an average price of approximately $26,080 per bitcoin. At the time of writing, Microstrategy’s bitcoins are worth more than $3.62 billion. What do you think about Capital International gaining bitcoin exposure by buying almost 1 million shares of Microstrategy? Let us know in the comments section below. View the full article

The U.S. SEC charged three individuals that allegedly conducted insider trading related to the Long Blockchain company back in 2017. One of the individuals allegedly traded stocks ahead of the name change that gave the company a price boost. The other two individuals were tipped and took advantage of the data to trade accordingly, the U.S. regulator says. Long Blockchain, formerly Long Island Iced Tea, made big gains just from rebranding, taking advantage of blockchain’s growing popularity. SEC Sues Three on Long Blockchain Insider Trading The Securities and Exchanges Commission (SEC) is charging three individuals that allegedly profited from Long Blockchain’s name change back in 2017. The lawsuit claims the three individuals profited from inside information and traded stocks before the famous rebranding happened. Among these is Eric Watson, who according to the complaint, was responsible for the rebranding scheme. Watson allegedly tipped off Oliver Barret-Lindsay, a friend and broker about the rebrand changes. Barret-Lindsay also gave the information to another friend, Gannon Giguiere, about the rebranding event. Giguiere put his hands to work and bought 35,000 stocks, making more than $160,000 in profits. Barret-Lindsay and Giguiere are already facing litigation for allegedly staging a stock manipulation scheme related to a medical company. Richard Best, Director of the SEC’s New York Office, stressed: The SEC remains committed to preventing all types of fraudulent conduct in connection with purported ‘crypto’ companies, including profiting from trading on material non-public information. A Pivot From Iced Tea to Crypto Long Blockchain is one of a select group of companies that took advantage of the blockchain craze that happened back in 2017. Lots of sports, apparel, and other companies changed their names to be more appealing to the public. Long Island Iced Tea (LIIT) announced it would pivot its business model to blockchain-related activities. However, it didn’t make any agreements or release a blockchain-related product since the rebrand. Company shares rose 289% in just one day, giving Long Blockchain (LB) investors a good profit. Eric Watson was the biggest stockholder of the company, owning 13% of the shares. The happiness didn’t last long though. The SEC delisted its shares from stock markets last February. According to the regulator, Long Blockchain failed to file financial reports for several years. The last LB report filed with the SEC was dated back in 2018. This is the first action the SEC has taken against companies that rebranded during that time. Other actions might be exerted on other companies that staged similar pivots and rebranding moves. What do you think about the SEC’s actions against Long Blockchain? tell us in the comments section below. View the full article

At the end of 2020, darknet markets (DNM) set new records as marketplaces like White House and the Russian-language DNM Hydra led the pack. A report published on May 25, shows Hydra saw a 624% year-over-year growth rate in three years, and researchers estimate roughly 75% of illicit DNM transactions stem from the Russian marketplace. Moreover, the privacy coin monero is seeing a lot more vendor acceptance on DNMs these days. On June 29, monero captured 84% of vendor acceptance on three of the top marketplaces. The Complex Russian Darknet Market Hydra Eclipses 26 Marketplaces While cryptocurrency markets are down in value, the use of darknet markets has continued to rise. DNMs have managed to stay lucrative throughout Covid-19 and stats indicated that while the world was locked down, DNM use was flourishing. Many DNMs are operational today as reports and data show that the two largest darknet markets are Hydra and White House Market. Other notable DNMs in the second half of 2021, include Cannazon, Cannahome, Torrez Market, Dark0de Reborn Market, Vice City, Aurora, and the Majestic Garden. Hydra’s Yearly Transaction Volumes, 2016 to 2020 via the May 2021, Chainalysis and Flashpoint threat intelligence report. At the end of May, blockchain forensics firms Chainalysis and Flashpoint threat intelligence published a report that does a deep dive into the rise to prominence of Hydra. The report called “Hydra: Where Cryptocurrency Roads All Lead to Russia and Go Dark,” explains how Hydra administrators impose strict rules for sellers using the DNM. Despite Hydra’s strict rules, the report highlights that Hydra remains continuously profitable. Furthermore, vendor withdrawals are funneled through Russian exchanges and service operators, the report details. The Flashpoint and Chainalysis report adds: Hydra market activity has skyrocketed since its inception, with annual transaction volumes growing from a total of $9.40 million in 2016 to north of $1.37 billion by the end of 2020. Observed through blockchain analysis, we see a staggering 624% year-over-year growth rate for Hydra in its three most recent years 2018 to 2020. Monero Acceptance on DNMs Continues to Rise Darknet tracker data provided by the blockchain analytics provider 1000x Group indicates there are around 27 DNMs in operation today. Nine of the markets accept BTC only, five markets accept BTC and a variety of coins, eleven markets accept BTC and monero (XMR), and two markets accept XMR only. Bitcoin only markets include Darkfox, Hydra, Vice City, Aurora, Majestic Garden, Neptune, Mega, Global Dreams, and Flugsvamp 3.0. Meanwhile, marketplaces dedicated to monero only include White House Market and Archetyp Market. Being one of the top markets like Hydra, White House Market (WHM) also has strict rules and monero (XMR) only acceptance is one of them. WHM also requires 2FA, the use of PGP, and the site is often down from DDOS attacks over the years. The DNM has thousands of vendors and claims to have more than a million users in 2021. WHM picked up a huge amount of customers and vendors after the fall of Dream Market and there’s more than 50,000 products listed today. The DNM White House Market also makes a 4% commission on everything sold on the deep web portal. Darknet tracker data provided by the blockchain analytics provider 1000x Group. Statistics show that monero (XMR) has seen a significant uptick in vendor acceptance on three specific fully operational DNMs. While BTC still dominates on DNMs, XMR commands an appreciable amount of acceptance on these markets. DNM tracker data shows during the last two weeks of May, XMR vendor acceptance was above 50%. During the first two weeks of June, monero saw a dip under the 50% handle and hit a low of 37.60% on June 8. However, monero vendor acceptance climbed to 84% on June 29 and has been above the 50% region ever since. When monero saw a low in mid-June, there was a higher percentage of litecoin (LTC) vendor acceptance at the time. The vendor acceptance rate tracks vendor acceptance through Versus Market, Cannahome, and Cannazon. Does Hydra Have a Semi-Official Sanction from Russian Leaders? Meanwhile, as Hydra has become one of the largest DNMs worldwide, after surpassing the older Russian DNM Ramp, Joe Biden’s administration is focused on Russia’s involvement with these types of actors. Biden has been talking about Russia to the press and he wants Russia to crack down on cyber threats like ransomware. U.S. president Joe Biden allegedly told Vladmir Putin during a phone call on Friday that the Russian president needs to “take action” against these malicious cyber actors. Bloomberg contributor Leonid Bershidsky assumes that it’s possible Hydra is allowed to thrive because of a possible semi-official state sanction from Russia. Following the Colonial Pipeline attack and the Kaseya breach, Biden told the press that he spoke with Russian president Vladmir Putin on Friday. Biden said he told Putin he must “take action” against these cyber actors. “I made it very clear to [Vladmir Putin] that the United States expects when a ransomware operation is coming from his soil even though it’s not sponsored by the state, we expect them to act if we give them enough information to act on who that is,” Biden stressed this week. Now the ransomware is one thing, but Bloomberg contributor Leonid Bershidsky thinks there’s a possibility that Hydra has some kind of “semi-official sanction” from Russian leaders. Bershidsky notes in a recent article that Russia’s “Hydra, its krysha, or protection, is the elephant in the room.” The author explains that Putin doesn’t really have any incentive to crack down on DNMs and he also believes that “retaliatory action from the U.S. isn’t compelling enough.” Bershidsky’s opinion editorial concludes: As things stand, Putin can let the likes of Hydra worry about that prospect. And if they are crushed, others can take their place. The dark web is nothing if not resilient. What do you think about the increased usage of darknet markets and the growth of Hydra? What do you think about monero vendor acceptance increasing on DNMs as well? Let us know what you think about this subject in the comments section below. View the full article

The U.S. has sentenced a creator of video streaming and downloading websites to prison for 12 months and one day. The feds also seized $3.9 million from him, including more than $1 million in cryptocurrency. Man Sentenced to Jail for Copyright Infringement and Tax Evasion, His Cryptocurrency Seized The U.S. Department of Justice (DOJ) announced Friday that Talon White from Newport, Oregon, has been “sentenced to federal prison for creating illegal video streaming and downloading websites.” The DOJ further described that the 31-year-old built the websites to “illegally distribute thousands of copyright-protected movies and television shows and evading taxes on the profits of his illicit endeavor.” The case started when investigators received information in October 2013 regarding numerous illegal websites linked to White allowing paid subscribers to stream and download copyright-protected content. The Motion Picture Association of America (MPAA) subsequently demanded White cease and desist his illegal activity in 2014 but he ignored the demand. White then migrated his operations from one website to another over the next four years to avoid detection, the Justice Department noted, adding that he had amassed millions of dollars in subscription fees from his websites by 2018. The DOJ detailed that after investigators served search and seizure warrants on his house in Newport and several bank accounts in November 2018: Agents seized $3.9 million from his accounts, $35,000 in cash, and more than $1 million in cryptocurrency. Furthermore, the Justice Department noted that White “filed false personal income tax returns, underreporting his income by more than $4.4 million and causing a tax loss to the IRS of more than $1.7 million.” White was sentenced to “12 months and one day in federal prison and three years’ supervised release,” the announcement states. He was charged on Nov. 1, 2019, with copyright infringement and tax evasion; he pleaded guilty to both charges on Nov. 25, 2019. The DOJ further detailed: U.S. District Court Judge Ann L. Aiken ordered White to pay more than $4.3 million in restitution to the MPAA and IRS. White must also forfeit all U.S. currency and cryptocurrency seized from his bank accounts, in addition to his Newport house that was purchased with proceeds of his scheme. Do you think White should be sent to prison and forfeit his cryptocurrency? Let us know in the comments section below. View the full article

China, which has arguably the most advanced digital currency project among leading nations, has so far handed out more than $40 million in red envelopes with digital yuan. The promotional campaign for the CBDC is currently focused on five major cities, taking into account their regional development priorities. Beijing Gives Away 269 Million Yuan in Digital Currency Chinese Authorities are rapidly moving forward with the pilot implementation of the digital yuan, the central bank digital currency (CBDC) issued by the People’s Bank of China. Since the announcement of the concept in 2014, the project has entered its seventh year of development, with large-scale trials across the mainland and cross-border tests with Hong Kong. The ‘red envelope’ campaign, which was launched to put the digital yuan into the hands of Chinese consumers, has been expanding. The amount of funds distributed to Chinese citizens in digital RMB red envelopes has exceeded 269 million yuan, or around $41.5 million, according to a report by the Tuoluo Research Institute. In Chinese tradition, the red envelopes are small packets with money usually given to children, family members, friends, or employees, and intended as a good luck wish. The red color in China is perceived as a symbol of energy and happiness. Published by the Chinese crypto news outlet 8btc, the article reveals that the government efforts are currently focused on five major cities – Shenzhen, Suzhou, Beijing, Chengdu, and Shanghai. Authorities there have issued red envelopes with digital RMB for a total of 230 million Chinese yuan, approximately $35 million. China Accelerates and Expands Digital Yuan Promotion The report notes that the central government is “taking into account regional development strategies, and the frequency and scope of the promotion are accelerating outward.” For example, in Beijing, where local financial authorities recently announced a lottery to disperse 40 million worth of digital yuan ($6.3 million), the digital RMB program is mainly focused on the upcoming Winter Olympic Games. Two pilots have progressed significantly in the Chinese capital. As part of the first one, selected merchants in the Wangfujing business district and the online marketplace JD.com started accepting digital yuan payments. Then, the second pilot project will focus more on the food, housing, transportation, travel, shopping, entertainment, and information scenes of the 2022 Beijing Winter Olympics. Meanwhile, the economic and financial hub Shenzhen has already distributed 60 million yuan in digital RMB red envelopes (over $9 million). Application scenarios for the CBDC have gradually covered government affairs such as medical care, education, and transportation as well as consumption. More than 30,000 merchants in the city are now working to introduce support for digital yuan payments. Chengdu has until now handed out 40 million of digital yuan (over $6 million). At least 11,000 merchants are participating in the pilot. They come from various sectors including catering, retail, and entertainment. Chengdu also launched a digital yuan trial in the public transportation system in the city’s administrative area. Tuoluo remarks that Chengdu’s red envelope program “highlights the characteristics of digital currency – small-value, high-frequency trading and inclusive finance.” What do you think about China’s red envelope campaign to promote the adoption of the digital yuan? Let us know in the comments section below. View the full article

A survey conducted among financial professionals has indicated that the industry wants Ukraine’s future digital currency to be used as a tool in the crypto space. The financial sector also favors a blockchain design for the e-hryvnia that would allow peer-to-peer transfers and fuel e-commerce. Financial Experts Define Potential Uses of Ukraine’s Digital Currency The National Bank of Ukraine (NBU) has published the results of a survey aimed to establish the potential demand for a central bank digital currency (CBDC). The regulator sent out a set of 30 questions to 100 financial experts with various backgrounds – financial markets, corporate and retail business, public sector, and crypto business. The poll also had to identify possible use cases for the e-hryvnia. NBU was among the first central banks to start exploring options to issue its own digital currency. It launched a study back in 2016 and then tested a CBDC in retail payments two years later. “We already have practical experience in implementing a pilot project to issue e-hryvnia in 2018,” the Chairman of the NBU Kyrylo Shevchenko noted, elaborating: To find the really popular options and niches for the e-hryvnia and to determine the potential effect of its implementation, we decided to hear the opinion of financial market experts and conducted a comprehensive survey. The representatives of the financial sector were offered to choose between six potential areas where they feel the e-hryvnia can be employed. According to the majority of the respondents, the most promising use case would be in non-cash retail payments, primarily peer-to-peer (P2P) transfers between individuals and e-commerce transactions. Using the CBDC for cross-border payments, again as a P2P instrument, is the second most recommended application. The other options included ‘targeted social benefits (G2P),’ ‘settlement of securities (B2B),’ ‘corporate payments (B2B),’ and ‘financial instruments.’ 77% of the polled supported the first of these use cases, provided its scope is expanded to include other specific government payments such as dedicated subsidies. The NBU said it’s going to take into account the opinions of the financial professionals. Ukraine’s Financial Sector Says E-Hryvnia Should Be Used in the Crypto Space Many of the participants in the survey also supported the use of the electronic hryvnia as a tool for conducting transactions in the field of virtual assets, the NBU emphasized. The financial sector representatives also insisted the CBDC should be a blockchain-based currency. Given the size of the crypto asset market in the country and the availability of blockchain technologies, Ukraine’s central bank believes the use of its digital currency to facilitate the circulation of virtual assets in the country – for example, in exchange, issuance, and other crypto-related transactions – is worth further research. Ukraine is considered a leader in cryptocurrency adoption as it was ranked first among over 150 nations in last year’s edition of the Global Crypto Adoption Index by blockchain forensics firm Chainalysis. However, the government in Kyiv is yet to adopt comprehensive regulations for the country’s expanding crypto space. A draft law on “On Virtual Assets,” which was recently updated, should be voted this year. What’s your opinion about the possible uses of a central bank digital currency? Share your thoughts on the subject in the comments section below. View the full article

The digital asset trading platform Crypto.com has announced the firm has become the first global cryptocurrency exchange to obtain an Electronic Money Institution (EMI) license from the Malta Financial Services Authority (MFSA). According to the announcement, Crypto.com’s EMI license will allow the firm to issue cards and bank transfers to consumers in the region. Crypto.com Receives the First EMI License from Malta Crypto.com details in its latest announcement that the digital asset exchange has been working closely with the MFSA. Two months ago, the exchange received a Class 3 Virtual Financial Assets (VFA) license from the MFSA. On Friday, the trading platform revealed the EMI license has been approved and the company believes it is a “watershed moment for the cryptocurrency industry.” Working with the MFSA, Crypto.com notes that it aims to provide a “compliant crypto trading environment.” “We have been committed from day-one to building a fully regulated business,” Kris Marszalek, the cofounder and CEO of Crypto.com, explained in a statement. “Working with regulators is the best way to fulfill our mission of accelerating the world’s transition to cryptocurrency. Being the first global cryptocurrency platform to receive an EMI License from the MFSA is a major milestone for the industry as a whole.” Blockchain Island’s Tumultuous Experience With Global Regulators Malta has been considered a hotspot for crypto companies and has even been dubbed “Blockchain Island.” In April 2020, however, one report estimated roughly 70% of crypto companies had not sought licensure from the MFSA. At the time, no digital asset company received a license and only 26 companies had applied. Just recently, the Financial Action Task Force (FATF) held a confidential meeting and was critical of the island nation of Malta. Government sources said that more than $70 billion moved through the country over past years when regulations were lax. However, the same report noted crypto industry executives disagreed with FATF’s $70 billion estimate. Within Crypto.com’s MFSA licensure announcement, the exchange also explained how it secured an Australian Financial Service License (AFSL) last year in December. Crypto.com also obtained a Principal Membership with Visa in March 2021. Following the AFSL licensure, the company also said it would be offering Crypto.com Visa Cards in the near future. What do you think about Crypto.com obtaining an EMI License from the MFSA? Let us know what you think about this subject in the comments section below. View the full article

The parliament of the Economic Community of West African States (ECOWAS) has joined the list of African organizations that have cautioned against the use of cryptocurrencies. In its warning to West Africa crypto users, the legislative body insists these digital assets are too volatile and as such “their use on the African continent is not without dangers.” Refusing to Accept Crypto Not a Violation of Legal Provisions According to a report, this parliamentary warning came after the joint committee meeting that was held in Ouagadougou, Burkina Faso. The meeting, according to the report, had been convened to explore “the prospects of cryptocurrencies as a facilitator for investment.” However, following the meeting that was also attended by “cryptocurrency experts and resource persons,” the joint committee reminded crypto users in the sub-region of the digital currency’s many shortcomings. According to the report, one of the shortcomings of cryptocurrencies is that while they may be used as a medium of exchange, users can still refuse to accept them as payment. Such refusal is currently not seen as a violation or contravention of the relevant laws. Crypto Volatility Meanwhile, the joint committee also claimed that cryptocurrencies cannot be likened to e-cash due to their volatile nature. According to the committee, this crypto volatility stems from their “restrictive issuance mechanism that encourages speculation.” Consequently, the ECOWAS Parliament is now urging “crypto enthusiasts to guard against the risk of theft.” The report also lists other supposed risk factors faced by users of crypto assets. These include the irreversible nature of some crypto transactions, the lack of a central authority that monitors or controls transactions, and the concentration of assets in a few hands. What are your thoughts on ECOWAS’ warning about the risks of using cryptocurrencies? Tell us what you think in the comments section below. View the full article

An eco-friendly toilet that pays people in digital currency for using it has been installed at a university in South Korea. The toilet is connected to a laboratory that uses excrement to produce biogas, which is used as a source of energy at the university. Get Paid in Digital Currency to Use a Toilet There is now a toilet that pays you in digital currency for using it. It was designed by a South Korean professor of environmental engineering at the Ulsan National Institute of Science and Technology (UNIST) and is already in use, Reuters reported Friday. The institute is one of the four public universities in South Korea dedicated to research in science and technology. The toilet is called Beevi, a portmanteau of the words bee and vision. It is connected to a laboratory that uses excrement to produce biogas and manure. When in use, a vacuum pump sends feces into an underground tank, reducing water use, and the excrement is broken down to methane by microorganisms. This turns into a source of energy, which is being used in a building at the university to power “a gas stove, hot-water boiler and solid oxide fuel cell,” the publication conveyed. Professor Cho Jae-weon, who designed the toilet, was quoted as saying: If we think out of the box, feces has precious value to make energy and manure. I have put this value into ecological circulation. He explained that an average person defecates about 500 grams a day, which can be converted to 50 liters of methane gas. He noted that this gas can generate 0.5kWh of electricity or be used to drive a car for about 0.75 miles. Users of the Beevi toilet get paid in a digital currency called Ggool, which means honey in Korean. Currently, each person using the toilet earns 10 Ggool a day. The digital coins can then be used to purchase anything at a shop on campus, such as freshly brewed coffee, instant cup noodles, fruits, and books. Students scan a QR code to pay with the digital currency. Heo Hui-jin, a postgraduate student at the university, was quoted as saying: I had only ever thought that feces are dirty, but now it is a treasure of great value to me. I even talk about feces during mealtimes to think about buying any book I want. The news of this toilet has drawn some attention on social media, with some calling it a “genius” creation. Many in the crypto community, however, made fun of the concept, calling the digital currency literally “the king of shitcoins.” What do you think about this toilet paying people in digital currency? Let us know in the comments section below. View the full article

U.S. Senator Patrick Toomey has declared investments in Grayscale’s bitcoin and ethereum trusts. His declaration shortly followed one by fellow congressman, U.S. Representative Barry Moore, who declared that he had invested in dogecoin, ether, and cardano. Senator Pat Toomey’s Cryptocurrency Investments A growing number of U.S. lawmakers are investing in cryptocurrencies or crypto-related investments. According to a Periodic Transaction Report filed on July 7, U.S. Senator Patrick Toomey from Pennsylvania declared two personal cryptocurrency investments, each worth between $1,000 and $15,000. One was in Grayscale Bitcoin Trust (GBTC) and the other in Grayscale Ethereum Trust (ETHE). Senator Pat Toomey’s Periodic Transaction Report showing investments in Grayscale’s bitcoin and ethereum trusts. Source: US Senate. The senator’s investments have decreased in value since his purchases. He invested in Grayscale Bitcoin Trust (GBTC) on June 15 when the price was around $33.23. At the time of writing, it has fallen to $27.65. As for his investment in Grayscale Ethereum Trust, the price was $24.45 on June 14 when bought it but has since dropped to $20.41 at the time of writing. Toomey has recently voiced concerns about crypto regulation. A few days before investing in Grayscale’s bitcoin and ethereum trusts, the senator wrote a letter to Treasury Secretary Janet Yellen urging the Treasury Department to “make significant revisions” to the crypto proposals by the Financial Crimes Enforcement Network (FinCEN). He believes that if the current proposals are adopted, “they would have a detrimental impact on financial technology (fintech), the fundamental privacy of Americans, and efforts to combat illicit activity.” He also raised concerns about FATF’s guidance. The lawmaker from Pennsylvania is not the only U.S. senator with a bitcoin-related investment. The outspoken pro-bitcoin U.S. Senator Cynthia Lummis from Wyoming owns about five bitcoins. She encouraged “people to buy and hold” BTC. “I encourage them to save bitcoin for their retirement, for their future.” Recently, U.S. Representative Barry Moore from Alabama also declared his cryptocurrency investments. He bought dogecoin (DOGE), ether (ETH), and cardano (ADA). What do you think about Senator Pat Toomey investing in bitcoin and ether through Grayscale’s trusts? Let us know in the comments section below. View the full article

Bank of Thailand says a growing number of companies are asking for payments in cryptocurrencies, such as bitcoin and ether. The central bank reiterates its stance on crypto and warns of the risks of using them as a means of payment. The Bank of Thailand (BOT), the country’s central bank, issued a warning notice titled “Caution on Using Digital Assets as Means of Payment for Goods and Services” on Thursday. The notice explains that some enterprises have recently begun soliciting payments for goods and services in cryptocurrencies, naming bitcoin (BTC) and ether (ETH) as examples. The Thai central bank reiterated its stance that digital assets are not legal tender and it does not support their use as a means of payment for goods and services. The bank detailed that using cryptocurrencies as a means of payment leads to risks for both buyers and sellers, “such as price volatility, cyber theft, and money laundering.” Thailand’s central bank clarified: Should the use of digital assets as a means of payment for goods and services become widespread, the BOT will coordinate with the Securities and Exchange Commission (SEC) and other related agencies to take the necessary measures to ensure that they do not pose extensive risks to the general public or the economic and financial system. The Thai SEC recently banned regulated crypto exchanges from providing services related to meme cryptocurrencies, fan tokens, and non-fungible tokens (NFTs). The security regulator also filed a criminal complaint against Binance for illegally operating a crypto exchange business in the country. What do you think about Thailand’s crypto warning? Let us know in the comments section below. View the full article

The Security Service of Ukraine (SBU) has located a massive coin minting facility that was illegally connected to the power grid in Vinnytsia. Law enforcement officials claim it’s the largest underground crypto mining farm they have found so far. Ukraine Seizes Thousands of Video Game Consoles Mining Crypto With Stolen Electricity Ukraine’s main law enforcement authority, SBU, announced this week it exposed a large-scale electricity theft in the city of Vinnytsia, in west-central Ukraine. The stolen power was used to mint digital coins in what officials described as the country’s largest illegal crypto farm uncovered to this day. Source: SBU The mining facility was set up by residents of Vinnytsia and the capital Kyiv in a former warehouse of JSC Vinnytsiaoblenerho, the agency said in a press release published on its website. They were able to conceal the theft from the distribution company using electricity meters that did not show the true energy consumption. During the searches at the crypto farm and its operators’ residences, law enforcement seized almost 5,000 units of mining hardware, including 3,800 game consoles, over 500 video cards, and 50 processors. Agents confiscated documentation on electricity consumption as well as notebooks, phones, and flash drives, the announcement detailed. The operation has been carried out by the SBU Department for Counterintelligence Protection of State Economic Interests together with the regional SBU Office in Vinnytsia and the Main National Police Investigation Department, under the supervision of Ukraine’s Prosecutor General’s Office. Illegal Mining Farm in Vinnytsia Steals up to $250,000 of Electricity Preliminary estimates released by Ukrainian authorities suggest the illegal mining operation is responsible for losses of electricity in the range of 5 to 7 million hryvnia, or between approximately $183,000 and $256,000, at the time of writing. The excessive consumption could have caused power surges and outages in the surrounding areas, officials added. The SBU has initiated criminal proceedings for unauthorized use of electricity. Investigators are now working to identify all people behind the illegal crypto mining activities and trying to verify if JSC Vinnytsiaoblenerho employees are also involved. The news from Vinnytsia comes after last week’s Ukrainian law enforcement shut down of an illegal mining farm in Chernihiv Oblast. The facility was powered by stolen electricity from the local electrical network. During a raid of rented warehouses, authorities seized 150 mining rigs that had burned energy for $110,000. In early June, the SBU uncovered a crypto farm with 350 mining rigs that were illegally connected to the power grid in Dnipropetrovsk Oblast and had used over $70,000 worth of electricity. Do you think Ukraine is undertaking a coordinated crackdown on illegal cryptocurrency mining? Share your thoughts on the subject in the comments section below. View the full article

During the last week, crypto enthusiasts and traders have been discussing the stock-to-flow (S2F) bitcoin price model created by the pseudonymous crypto analyst “Plan B.” Despite Plan B’s worst and best case scenario calls on June 20, a touch over a week later the analyst said the “next 6 months will be make or break for S2F.” Currently, the S2F model has seemingly run off course and resembles the levels it saw in January 2019. S2F Skepticism and the ‘Make or Break’ S2F Timespan There’s some skepticism toward Plan B’s infamous stock-to-flow (S2F) bitcoin price model ever since the closing price in June recorded below the S2F’s projected course. The model’s creator, however, would not necessarily use the terms “off course” but “just touching lower bands.” Plan B’s price model chart shared on July 1, 2021. Plan B recently explained his “worst case scenario for 2021,” where he predicts prices to end up being around “Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.” However, on June 1, Plan B noted that the price was currently below the S2F trajectory. “June closing price $35,037 .. as far below S2F model as in Jan 2019. Next 6 months will be make or break for S2F (again),” Plan B said. My on-chain data (color overlay in the chart below) tells me this bull is not over and 64K was not the top. That is in line with s2f(x) model. Also my floor indicator (not based on s2f) says we will not go below 47k Aug close. pic.twitter.com/K6Hfjdp26x — PlanB (@100trillionUSD) July 2, 2021 Others assume that bitcoin is just not getting attention as the media is highlighting the gains made by shiba inu (SHIB), baby doge (BABYDOGE), and dogecoin (DOGE). “Hard to take bitcoin seriously when the mass media is spouting out articles about dogecoin and shiba inu. We are going to $10,000,” an individual responded to Plan B’s “make or break” tweet. Another individual replied to Plan B’s assessment with more optimism. “Even in the bear market of 2019 BTC tripled in a few months…… 100K is secured, [a] very low target in current bull market.” Plan B responded to the individuals “very low target” tweet and said: Indeed. And I must say [the] 2019 bear market (when I published S2F model btw) felt much much worse than [the] current ‘China ban’ dip. Bubbles Bursting or Buying Opportunities? Crypto Community Sentiment Toward S2F Still Undecided Others believe bitcoin (BTC) prices are a bargain right now and a chance of a lifetime purchasing opportunity. Lex Moskovski, chief investment officer at Moskovski Capital shared this type of assessment on Saturday. “Negative Stock-To-Flow deflection is the highest it’s ever been in the whole bitcoin history,” Moskovski said. “This is a great buying opportunity, if you’re a believer in this model.” Still, even after Moskovski’s positive sentiment, a few skeptics think that the bubble has burst. “I would like to believe any bullish Glassnode indicator, however, the increasingly overwhelming reality is that the bubble is bursting once again,” the person said in response to Moskovski’s tweet. “Retail is gone, many have probably again forgot that crypto even exists.” Another person asked Moskovski when Plan B would stop standing behind the price model. “I wonder what deflection it will take for Plan B to admit the model is nonsense,” the individual remarked. After a few reports that came out about Plan B’s S2F bitcoin price model, one article leveraged the term “off course.” The pseudonymous crypto analyst disagreed with the terminology that was used in a specific article’s headline. “Nah,” Plab B tweeted in response to the headline. “S2F model is not “off course” .. just touching lower bands (just like Jan 2019 and Mar 2020).” What do you think about Plan B’s price model touching lower bands and his recent “make or break” tweet? Let us know what you think about this subject in the comments section below. View the full article

On Friday, the public interest law firm New Civil Liberties Alliance (NCLA) filed an opening brief in the cryptocurrency case of James Harper v. Charles P. Rettig. The NCLA argues that Harper’s Fourth and Fifth Amendment constitutional rights were violated by the Internal Revenue Service (IRS). The U.S. tax agency is accused of obtaining Harper’s information from crypto asset exchanges without valid subpoenas or statutory limitations. IRS Accused of Accessing American Citizens’ Private Information Without Following Statutory Limitations on Power to Issue Subpoenas The NCLA has revealed it filed an opening brief in the case James Harper v. Charles P. Rettig in the U.S. Court of Appeals for the First Circuit. The NCLA is a nonpartisan nonprofit civil rights entity and public interest law firm that aims to protect constitutional freedoms from violations by the government. The case involves a man named James Harper who has brought litigation against the IRS, the 49th commissioner of the U.S. tax agency Charles Rettig, and 10 “John Doe IRS agents.” The NCLA and Harper argue that the IRS took Harper’s financial information without “reasonable suspicion and without a judicial warrant.” “Harper has plausibly pled that [the] IRS violated his constitutional and statutory rights,” the civil rights organization’s opening brief details. It all started in 2019 when the IRS sent Harper a letter stating that he did not “properly report” his “transactions involving virtual currency.” The IRS also published a press release that summer that revealed 10,000 American cryptocurrency owners received a letter from the tax agency. The letters were sent to taxpayers who have “participated in virtual currency transactions or otherwise did not report past transactions properly,” the IRS noted. “Taxpayers should take these letters very seriously,” IRS Commissioner Charles Rettig emphasized in the press release. IRS Hides Behind Anti-Injunction Act, Supreme Court Says the Tax Agency ‘Cannot Block Lawsuits Challenging Constitutionality’ The NCLA and Harper are hoping the Appellant Court allows an oral argument of the case. The civil liberties law firm wholeheartedly believes this case affects the plaintiff’s constitutional rights. “This case presents important legal questions about whether the sovereign immunity of the United States bars suits challenging the government’s illegal information-gathering practices and whether injunctive or declaratory relief is available in such situations,” the NCLA’s opening brief stresses. Caleb Kruckenberg, a litigation counsel member of the NCLA, said that he believes the First Circuit can fix this situation. “Earlier this year, the Supreme Court held that the IRS cannot block lawsuits challenging the constitutionality of its behavior by hiding behind the Anti-Injunction Act,” Kruckenberg said in a statement to Bitcoin.com News. “Unfortunately, that decision came out after the district court allowed the IRS to abuse the law in just that way. According to the Supreme Court, though, this case is a ‘cinch,’ and the First Circuit should swiftly reinstate this lawsuit.” The IRS is using very advanced investigation techniques: They have information that leads them to believe I may have crypto-currency. Say it ain't so! Such sleuthing. WOW. PS. I reported and paid all my taxes properly. They're casting a very wide net blindly. Cheap and easy. pic.twitter.com/NnpEq84B6q — Andreas (BEWARE of giveaway scams!) (@aantonop) August 16, 2019 NCLA litigation counsel member, Adi Dynar, says the IRS does not have a sufficient reason to “claim that the information it possesses” can be obtained without due process. Dynar says that if the IRS took proper procedures then it could result in the assessment or collection of taxes. “But the Fourth and Fifth Amendments to the Constitution do not contain an IRS exception,” Dynar said in a statement. The NCLA’s opening brief describes how the IRS violated Harper’s rights and obtained his financial information from third parties. “[The] IRS’s actions violated core constitutional protections under the Fourth and Fifth Amendments,” the NCLA opening brief details. “Assuming the IRS took his information from one or more exchanges, Mr. Harper’s contracts recognized that his data is his property, not that of the exchanges, and supplied him with a reasonable expectation of privacy in his personal information. The contracts made clear that he did not voluntarily surrender his Fourth Amendment rights by doing business with them. The IRS seized his information without due process.” The NCLA further added: IRS did not provide Mr. Harper with any notice or opportunity to contest its lawless information gathering. That lack of process violates the Fifth Amendment’s due-process guarantee. IRS’s third-party collection of Mr. Harper’s information is also a Fourth Amendment trespass against Mr. Harper because it seized his personal papers without a warrant. The IRS also failed to protect Mr. Harper’s statutory rights when it obtained his personal papers from third parties. The NCLA’s brief notes that the IRS should have its interest aligned with Harper’s rights and the tax agency should have obtained the records in compliance with the Fourth and Fifth Amendments. “The Court should conclude that the district court has subject-matter jurisdiction and that Mr. Harper has stated a claim upon which relief can be granted,” the NCLA’s opening brief concludes. What do you think about the case against the IRS? Let us know what you think about this subject in the comments section below. View the full article

Crypto startup Bullish has announced its plan to go public on the NYSE as it gets ready to launch a cryptocurrency exchange. The Bullish exchange aims to be a “revolutionary, regulated cryptocurrency exchange that offers deep, predictable liquidity for investors to generate yield from their digital assets.” Bullish to List on NYSE Bullish announced its plan to go public on the New York Stock Exchange (NYSE) Friday through a merger with Far Peak Acquisition Corporation (NYSE: FPAC). Far Peak is a special purpose acquisition company (SPAC). Bullish, which debuted in May, detailed: Bullish plans to launch a revolutionary, regulated cryptocurrency exchange that offers deep, predictable liquidity for investors to generate yield from their digital assets. Bullish exchange is operated by Bullish (GI) Ltd. and Jefferies LLC is acting as its exclusive financial advisor and capital markets advisor. Far Peak CEO Thomas W. Farley, a former NYSE president, will become the CEO of Bullish and Block.one CEO Brendan Blumer will be appointed its chairman. The combined business of Bullish and Far Peak has a pro forma equity value at signing of approximately $9 billion at $10 per share, according to the announcement. The two companies’ boards of directors have approved the proposed transaction, which is expected to close by the end of the year. However, it is still subject to approval by Far Peak stockholders and other customary closing conditions, including regulatory approvals. The announcement adds: In the coming weeks, Bullish exchange will run a private pilot program leading up to its public launch anticipated later in 2021. Bullish is backed by well-known venture capitalists and investors, including Peter Thiel’s Thiel Capital and Founders Fund, Alan Howard, Louis Bacon, Richard Li, Christian Angermayer’s Apeiron Investment Group, Galaxy Digital, and global investment bank Nomura. Farley commented, “With the increased interest from institutional players and sophisticated traders, it is critical to iterate on the existing exchange infrastructures we see today,” elaborating: We’re only in the first or second inning of the cryptocurrency market and I’m thrilled to be joining the Bullish team as we revolutionize the future of digital assets through cutting edge financial technologies. What do you think about Bullish crypto exchange going public? Let us know in the comments section below. View the full article

The British man who accidentally threw away a computer with 7,500 bitcoins on its hard drive has come up with a new plan to retrieve his lost coins from the city landfill. “We estimate there are between 300,000 – 400,000 tons of waste to look through,” he said. Man on Mission to Retrieve 7,500 Lost Bitcoins James Howells, an IT engineer who accidentally threw away the hard drive of an old computer containing 7,500 bitcoins back in 2013, has not given up his quest to retrieve his coins. The 35-year-old from the city of Newport in the U.K. has shared with The Sun publication his 12-month plan to search the city landfill using x-ray scanning devices and AI technology. Noting that “This would be a proper search – not just somebody going in with a bucket and spade,” the British man affirmed: We have a system with multiple conveyor-belts, x-ray scanning devices and an AI scanning device that would be trained to recognise items that are a similar size and density to the hard drive. “This would be a delicate search because we wouldn’t want to damage the hard drive in the process – you can’t just use a claw grabber,” he emphasized. “We’ve spoken to excavation experts and proper engineers to make sure it was all being done correctly as well as in a way that was safe for the environment.” Howells added that over the past four or five months, he had been “talking to some of the best data recovery experts in the world to make sure we can get it off the hard drive.” The search will be costly but Howell said that his plan is backed by a very rich hedge fund willing to cover the cost of the search and the equipment involved in exchange for the lion’s share of his fortune. Howells believes that his hard drive is in a 200-meter squared area and could be 15 meters deep based on aerial photographs of the site. The IT engineer said: We estimate there is between 300,000 – 400,000 tonnes of waste to look through. Despite having a plan, Howells said that the Newport City Council would not let him search the landfill, even after he offered them £55 million ($76 million). The Newport City Council explained that “The cost of digging up the landfill, storing and treating the waste could run into millions of pounds – without any guarantee of either finding it or it still being in working order.” Moreover, the council stated that “excavation is not possible under our licensing permit and excavation itself would have a huge environmental impact on the surrounding area.” At the time of writing, 7,500 bitcoins are worth about $246 million according to data from Bitcoin.com Markets. Do you think James Howells will recover his bitcoins? Let us know in the comments section below. View the full article

Tiktok has banned its users from promoting all financial products and services including those related to cryptocurrency. The company also prohibits ads relating to cryptocurrency. Tiktok Prohibits Users From Posting Content Promoting Cryptocurrencies Social media platform Tiktok has banned content promoting cryptocurrencies and related products and services. The company’s “Branded Content Policy” states: All financial services and products are prohibited, including but not limited to … cryptocurrency. Among the list of other prohibited products and services listed as examples are lending and management of money assets, loans and credit cards, trading platforms, cryptocurrency, foreign exchange, pyramid schemes, and investment services. Under Tiktok’s advertising policies, the company also prohibits ads relating to cryptocurrency. In most countries, including the U.S. and the U.K., Tiktok bans “Ads promoting virtual currencies/cryptocurrencies (e.g. bitcoin and ethereum), as well as cryptocurrency trading platforms and advisory services are prohibited.” In South Korea, cryptocurrency advisory services are also prohibited. According to the Financial Times, Tiktok’s move came after individuals were warned about taking financial information from Tiktok over concerns it could be misleading and hurt young savers. Martin Bamford, head of client education at Informed Choice, believes that Tiktok’s ban is the platform “clamping down on directly or indirectly sponsored content which leads to an affiliate link, for example, to sign up to a trading platform and get free stocks.” He opined: We see a huge amount of this branded content on Tiktok, usually from poorly informed commentators, who lure in followers with promises of riches, but in reality are making their money off people signing up via affiliate links. Many people have been using Tiktok to promote cryptocurrencies, including the popular meme-crypto dogecoin (DOGE). Some Tiktok videos have even pumped the prices of various cryptocurrencies. What do you think about Tiktok banning content promoting cryptocurrency? Let us know in the comments section below. View the full article

Riot Blockchain, a Nasdaq-listed mining company, reported Thursday on its Bitcoin production last month. The company’s numbers jumped a little more than 400% year-on-year, as a result of the increase in mining power. The recent mining crackdown in China is also helping companies like Riot to keep growing. The company plans to continue increasing its mining resources after acquiring 43,500 miners from Bitmain. Riot Blockchain Ramps Up Production Riot Blockchain, an American Bitcoin mining company, delivered its Production and Operations updates for June on Thursday. The company reported growth on the bitcoin mined of more than 400% year-on-year. It produced 243 bitcoin this June, a big increase from the 48 bitcoin mined in the same month last year. The company has produced 1,167 bitcoin this year. These numbers represent an increase of 130% compared to last year. There is a key fact that allows Riot Blockchain to achieve these results: The Chinese mining exodus. Caused by the regulatory crackdown in China, the decrease of hash power securing the network created a profit opportunity for some companies. The recent difficulty adjustment, one of the biggest drops in Bitcoin history, seems to be creating unique opportunities to get into bitcoin mining. This situation is expected to continue for some time till Chinese mines manage to relocate. A report from Hashrate Index predicts that between 30% and 40% of this hashrate will travel to the U.S. However, these relocations may face delays of up to one year considering the logistics that surround Bitcoin mining. Expansion Plans in Motion Riot Blockchain is already on its way to expanding mining operations. Earlier this year, the company announced the purchase of more than 42,000 S19j Antminers from Bitmain for $138.5 million. This deal secures more mining muscle for Riot starting from next November. Also, the company acquired Whinstone in May, one of the biggest bitcoin mining operation data centers in Texas. This acquisition allows it to secure a working location and energy for the acquired miners. At the time of writing, Riot Blockchain stock sits at $32.83. Bitcoin currently trades at $33.8K. What do you think about Riot Blockchain’s recent spike in bitcoin production? Tell us in the comment section below. View the full article

Israel’s Defense Minister Benny Gantz has ordered the seizure of cryptocurrency funds raised by the Palestinian Islamist movement Hamas. His department has reportedly started taking control over digital wallets used by the terrorist group to collect crypto donations from abroad. Defense Ministry of Israel Targets Crypto Addresses Used by Hamas Minister Gantz approved the seizure of the wallets on June 30, the Times of Israel reported on Friday. The National Bureau for Counter Terror Financing (NBCTF) published a list of targeted addresses and wallet details used by Hamas to raise funds in bitcoin (BTC) and other cryptocurrencies. They were identified during a joint operation with the Ministry of Defense. Ministry of Defense, Israel. The publication adds that the stockpiles of cryptocurrency were being managed from the Gaza Strip, which is under the control of Hamas. The wallets were employed by the Palestinian organization in its efforts to collect money from foreign sources following the 11-day conflict with Israel in May. The seizure has affected the Al Qassam Brigades, Hamas’s military wing. According to a blog post by blockchain forensics firm Chainalysis, the investigation focused largely on analysis of open-source intelligence such as social media posts and blockchain data. The blockchain analysis reveals the movement of donation funds to exchanges. Chainalysis published a graph showing bitcoin transactions carried out by addresses listed by the NBCTF, many of which have been attributed to individuals involved in donation campaigns. Source: Chainalysis “The orange hexagons represent deposit addresses hosted by a large, mainstream cryptocurrency exchange and controlled by individuals named in the NBCTF announcement,” explains Chainalysis. “On the graph, we see how funds moved to those exchange addresses from Hamas donation addresses, often passing first through intermediary wallets, high-risk cryptocurrency exchanges, and money services businesses (MSBs),” the company detailed. According to the report, two addresses named in the announcement received funds from addresses associated with the Idlib office of Bitcoin Transfer, a Syrian cryptocurrency exchange connected to terrorism financing cases. A third address received funds from a Middle East-based MSB that had previously received funds from the Ibn Taymiyya Media Center (ITMC), another organization linked to terrorism financing. Besides BTC, the ministry intercepted payments in ETH, XRP, USDT, and DOGE, the Times of Israel claims. The crypto cash has been seized in accordance with Israel’s Counter-Terrorism Law from 2016. In a statement released by the defense department, Benny Gantz was quoted as saying: The intelligence, technological and legal tools that enable us to get our hands on terrorists’ money around the world constitute an operational breakthrough. Seizure of Hamas’ Funds Proves Bitcoin Is ‘Safe’ Currency According to Noa Mashiah, CEO of the Israeli Bitcoin Association, “the seizure and forfeiture of Hamas’s donations proves that Bitcoin is a safe currency.” He elaborated that “criminals who make use of this financial system will find out the hard way that the open transaction log, the blockchain, will expose them and allow law enforcement agencies to act against them.” The executive said that the news of the confiscation marks “a significant improvement over the anti-money laundering ban and also over international bank accounts hidden behind a bank secrecy wall.” He insisted that the operation proves regulators in Israel should “adopt and use” bitcoin “as it makes it possible to expose the bad and do good with the good.” “Once you go beyond the boundaries of the blockchain to the worlds of trading platforms, you immediately lose anonymity and then, as in the present case, states and law enforcement agencies are able to locate and freeze the currencies of criminal and terrorist organizations,” added Omri Segev Moyal, CEO of cybersecurity firm Profero. He also noted that “when the network is completely exposed, you can very accurately track the trajectory of the coins and locate their final destination.” Hamas called on its supporters to send bitcoin in 2019, when the Islamist movement needed the money to deal with its financial problems. A few months later, the terrorist group established an experimental program to collect money via an elaborate system designed to facilitate international cryptocurrency donations. What do you think about Israel’s seizure of cryptocurrency funds raised by Hamas? Share your thoughts on the subject in the comments section below. View the full article