roadrunner

According to a number of sources, one of the largest darknet markets in the world, Empire Market has been offline for well over 36 hours. The researcher and analyst Dark.fail has been tweeting about the subject, as the market hasn’t been down for this long since 2019. It seems the popular darknet market (DNM) Empire has been down for well over a day and a half now, and ever since it went offline DNM patrons have been edgy. On Sunday, August 23, 2020, the Reddit forum r/darknet with its 127,000 subscribers is littered with threads and memes concerning Empire’s downtime. The website darknetstats.com indicates that Empire is “down, not working,” according to the web portal’s Empire stats page. The ‘Reddit-like’ deep web discussion forum, Dread is also filled with individuals discussing Empire’s downtime. On Twitter, the account @Darkdotfail or Dark.fail has been keeping the public up-to-date with all the Empire action this weekend. Dark.fail noted on Friday that Empire was suffering from a distributed denial-of-service (DDoS) attack. Basically, a DDoS attack is when the normal traffic is disrupted because a targeted server is overwhelmed by a flood of instigated and artificial traffic. Darknet markets and deep web forums have been attacked quite often in the past with severe DDoS attacks. “Empire Market remains under a large DDoS attack making it very slow to access,” Dark.fail tweeted on August 21. “Monero functionality appears broken, Bitcoin is functioning according to multiple trusted sources. Always PGP verify URLs, many phishing links are circulating.” In the world of darknets, two of the largest today include Russia’s Hydra marketplace and the notorious Empire Market. Dread's co-admin Paris believes that Russia's largest darknet market Hydra uses a custom multi-threaded Tor implementation to stay online despite DDoS attacks. It's hard to verify this, but their uptime is nearly perfect. pic.twitter.com/06HndD6ytD — dark.fail (@DarkDotFail) August 22, 2020 A few hours later on Friday, Dark.fail shared an encouraging PGP signed message from the Empire staff members that said: Many want to see us fall but we are not going anywhere. Long live the Empire. Discussing the situation further, Dark.fail said that the DNM’s head moderator dubbed “Se7en” recently wrote a scathing critique called “State of the Darkweb.” The post called out “phishers, doxxers, and alleged LE cooperators in the community,” Dark.fail noted on Twitter. “The DDoS attack now keeping Empire offline is possibly retaliation for this post,” the analyst added assessing the situation. The website run by @Darkdotfail called dark.fail is dedicated to monitoring various DNM uptimes and downtimes. Dark.fail also details there is a tool that DNMs have leveraged in 2020 that has allowed them to keep better uptime called the “Endgame DDoS filter.” The analyst said that the Endgame DDoS filter “helped most major darknet sites withstand attacks over the past eight months.” Despite the anti-DDoS tool, Empire Market has been down all weekend long and the blame is mostly focused on a distributed denial-of-service attack. However, whenever DNMs go offline for a record period of time, DNM patrons start spreading rumors. At times this type of FUD is circulated by competing DNMs on the deep web. “We are ~36 hours into Empire Market being completely offline,” Dark.fail wrote during the early morning hours on Sunday (ET). “Last year extended periods of downtime were common before the Endgame DDoS filter was released. After months of nearly perfect uptime, this downtime feels more stressful than the frequent Empire downtimes of 2019.” During the course of the later afternoon on Sunday, Dark.fail shared more screenshots of a PGP signed message from the moderators of Empire. “Beware the many false narratives and FUD circulating. We are here and are hard at work. Doing anything safely takes time,” a member of the Empire staff noted according to the screenshot. What do you think about the DNM Empire Market being DDoS attacked? Let us know what you think about this subject in the comments below. The post Darknet Giant Empire Market Offline for 36 Hours, Blame Cast at Massive DDoS Attack appeared first on Bitcoin News. View the full article

Cryptocurrency advocates have been recently discussing the mysterious Bitcoin inventor Satoshi Nakamoto as RSK’s chief scientist, Sergio Demian Lerner, published a paper called “The Patoshi Mining Machine.” Essentially, Lerner simulated Satoshi’s mining experience. The findings estimate that Bitcoin’s creator used a single computer to mine an estimated 1 million bitcoin minted in the early days. Sergio Demian Lerner is well known for publishing one of the first estimates backed by technical data in 2013 concerning Satoshi Nakamoto’s alleged stash of bitcoin. During the last seven years, Lerner has published a few more papers about this subject and it is estimated that Satoshi mined 1.1 million BTC. Not too long ago in 2018, Bitmex Research published findings that estimated Satoshi may have only mined 700,000 BTC. At the end of July 2020, the blockchain trackers and researchers from Whale Alert published a new research report which placed the figure around 1,125,150 BTC. Lerner’s latest paper “The Patoshi Mining Machine” looks into whether or not the Patoshi pattern (Satoshi’s mining) was done by multiple computers or a single PC. Lerner simulated Satoshi’s mining experience by “mining a large part of Patoshi nonce space scanning sequentially in the range.” The RSK chief scientist paper noticed a tendency while re-mining the old Satoshi bocks which reduces the nonce value. “It turned out that re-mining reveals a strong tendency of the Patoshi mining algorithm to choose higher nonces when scanning the inner nonce,” Lerner discovered. “This tendency suggests the nonce was being decremented, which is the opposite that the Satoshi client version 0.1 does.” Re-mining revealed some of the possible solutions chosen by the miner, Lerner detailed and “one that exists in the blockchain, will be called the real solution.” The finding leads Lerner to believe that Satoshi didn’t leverage 50 computers to mine the Patoshi blocks and it’s very likely the inventor utilized a single machine back then. Lerner thinks that Satoshi may have been scanning subranges in parallel when he examined the nonce imbalance decreases. “Since the nonce imbalance decreases when analyzing two subranges together, this suggests Patoshi was scanning the 5 subranges in parallel, but each subrange internally sequentially,” Lerner’s paper notes. The researcher’s study further adds: This contradicts a theory that Patoshi deployed the first mining farm of 50 independent computers (or any other highly decoupled system) and supports the theory that Patoshi was simply multi-threading in a high-end CPU. Lerner said that he attempted the re-mining process in 2014, but shelved the idea for a number of years. The researcher detailed that this year he re-mined with “ a standard CPU” and re-mined “the first 18K block only to check that the theory matched the reality (It does).” During the last few years, the search for clues about Satoshi has been a fan favorite and people continue to investigate his past movements and how the inventor jumped-started the Bitcoin network. Lerner’s Patoshi papers have always lent credence to a number of theories about the estimated size of Satoshi’s bitcoin stash and how Nakamoto may have operated in the early days. What do you think about Sergio Demian Lerner re-mining 18,000 blocks in order to discover Satoshi’s secrets? Let us know what you think in the comments section below. The post Re-Mining Simulation Shows Satoshi Used a Single High-End PC to Mine 1.1M Bitcoin appeared first on Bitcoin News. View the full article

Iran’s Power Generation, Distribution, and Transmission Company (Tavanir) has reportedly shut down 1,100 illegal bitcoin mining farms in the country, local media reported. Whistle-blowers tipped off authorities on unauthorized miners following a July announcement of rewards including 100 million rials (about $2,400). Tavanir deputy head Mostafa Rajabi Mashhadi told Fars News Agency that the blitz on unlawful crypto mining had been previously limited because the power company “cannot detect all illegal farms solely by studying their consumption patterns.” Iran’s bitcoin (BTC) miners welcomed authorization in July last year, but subsequently complained about high power tariffs. Some have started operating underground using subsidized electricity. According to Rajabi Mashhadi, some miners set up equipment at industrial and agricultural units that are already power-intensive to avoid detection. “Therefore, Tavanir’s monitoring reveals no significant change in consumption of this particular category,” he added. Iran, the world’s third-largest oil-producer, has also been battling smuggling of mining equipment into the country. Since 2019, the Islamic Republic has issued 624 mining farm permits, the Financial Tribune reports, but some of the licensed farms are idle. Last month, Iranian Vice President Eshaq Jahangiri Kouhshahi said that all miners will soon be required to register with the government. Iran’s biggest drawcard is its cheap electricity, pulling in BTC miners from as far afield as Ukraine and China. According to official data, mining farms in the country pay as little as 4,800 rials ($0.01) per kilowatt-hour (kWh) of electricity but rates increase four-fold to 19,300 rials ($0.05) during the peak summer season, from June to September. As news.Bitcoin.com reported, the state power utility announced in July that it will cut up to 47% of the electricity tariff for miners during the peak consumption periods in an effort to incentivize legalized mining. However, to be eligible for the incentive, bitcoin miners will need to participate in Tavanir’s “power efficiency projects” including the ongoing replacement of one million old air conditioners. The Iranian government’s attraction to bitcoin is both political and economic, primarily motivated by the desire of financial freedom from U.S. governmental overreach. What do you think about Iran closing down bitcoin mining farms? Let us know in the comments section below. The post Iran Shuts Down 1,100 Illegal Bitcoin Miners; Whistleblowers Rewarded $2,400 appeared first on Bitcoin News. View the full article

23rd August, 2020, NEW YORK, United States – INX Limited announced that the Securities and Exchange Commission (SEC) has declared as effective its registration statement on Form F-1 filed in connection with the initial public offering (the “Offering”) of up to 130 million INX Security Tokens (the “INX Tokens” or “Tokens”). INX has set the Offering price at $0.90 per Token with a minimum investment of $1,000. It is anticipated that the offering will begin on August 25, 2020 at 10am Eastern Daylight Time at https://token.inx.co/. INX intends to use a portion of the net proceeds raised from the sale of INX Tokens in the Offering for the continued development and operation of INX Trading Solutions, a regulated solution for the trading of blockchain assets, including cryptocurrencies, security tokens, and their derivatives, and for the establishment of a cash reserve fund. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (SEC) on August 20th, 2020. Copies of the registration statement can be accessed by visiting the SEC website at this page. The offering is being made only by means of a prospectus. A final prospectus describing the terms of the offering has been filed with the SEC and forms a part of the effective registration statement. Copies of the final prospectus relating to the Offering may be obtained for free by visiting EDGAR on the Securities and Exchange Commission’s website at www.sec.gov (click here). Alternatively, copies of the final prospectus may be obtained for free by sending an email to INX at investors@inx.co. About INX Limited INX Limited, a Gibraltar-based private company formed in 2017, is developing INX Trading Solutions, a single entry-point for our customers for the trading of cryptocurrencies, security tokens, and their derivatives. Media Contact Details Contact Name: Alona Stein (For INX) Contact Email: alona@reblonde.com This press release is not a prospectus and does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction in which such offer or solicitation of sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release is being issued pursuant to and in accordance with Rule 134 under the Securities Act of 1933. No securities regulatory authority has either approved or disapproved of the contents of this press release. INX Limited is the source of this content. This Press Release is for informational purposes only. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. Learn how to reach our audience here. The post INX Limited Announces Effectiveness of Security Token IPO appeared first on Bitcoin News. View the full article

Bitcoin.com, a global blockchain leader with over 11 million Bitcoin wallets, and Cred, a global blockchain-enabled financial services platform serving clients in 190 countries, today announced a major milestone in their ongoing strategic partnership. The latest Bitcoin.com wallet now features an in-app earning experience enabling millions of users to pledge digital assets and receive interest, powered by Cred. The Bitcoin.com wallet is a non-custodial crypto wallet featuring a variety of supported assets and resources for crypto newcomers and enthusiasts alike. The integration allows Bitcoin.com wallet users to easily interact with the CredEarn platform without ever leaving the Bitcoin.com wallet application. The furthering of Cred’s partnership with Bitcoin.com comes at an exciting time when crypto is gaining traction amongst mainstream consumers. The U.S. Comptroller of the Currency, the federal group responsible for the banking system’s security, recently stated banks are now allowed to hold cryptocurrencies. “We are always looking for new and innovative ways to provide value to the blockchain community,” said Dan Schatt, CEO, and Co-Founder of Cred. “Bitcoin.com is a leader in the industry, and we’re excited to make it as simple as possible to earn and borrow with your crypto.” Bitcoin.com users will experience the newly re-designed CredEarn dashboard across desktop and mobile devices. Additional features of the partnership allow users immediate access to daily compound interest and interest payouts in the cryptocurrency or stablecoin of their choice. A customer can pledge one asset, but choose to receive interest payments in another asset, enabling a fee-free ability for customers to diversify their cryptocurrency portfolio. “Cred continues to be a frontrunner amongst lending and borrowing platforms. Their dedication to solving financial problems is why we are proud to strengthen our partnership,” said Corbin Fraser, the Head of Product at Bitcoin.com. “At Bitcoin.com, we strive to offer our customers with the top-tier blockchain services. Through Cred, our customers will continue benefiting from earning interest on their crypto via a secure and licensed financial services platform.” You can download the Bitcoin.com Wallet on the App Store or get it on Google Play. About Cred Cred is a licensed lender headquartered in the San Francisco Bay Area, supporting over a dozen partners with its industry-leading crypto-backed lending and borrowing platform. Founded by PayPal veterans, Cred powers the financial services offerings for some of the most well-known blockchain organizations globally, including the Litecoin Foundation and Uphold. For more information, visit www.mycred.io. About Bitcoin.com The premier source for all things Bitcoin-related, Bitcoin.com makes both Bitcoin Cash and Bitcoin more accessible. Slated as the fastest Bitcoin wallet ever created, Bitcoin.com fosters a community where users read the latest news or engage with the community on the Bitcoin Forum. Bitcoin.com provides helpful tools and real-time market price and chart information, as well as Bitcoin mining and Bitcoin events information. For more information, visit www.Bitcoin.com. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. The post Bitcoin.com Wallet Launches Cred’s 1-Touch “Earn” Button appeared first on Bitcoin News. View the full article

The Flipstarter platform has gained traction in the last five months raising $1 million in bitcoin cash for 12 different campaigns. In a recent read.cash blog post, the team behind Flipstarter’s development said the application demonstrates how “stakeholder funding of the commons can work.” At the end of February, news.Bitcoin.com reported on the creation of a noncustodial bitcoin-cash powered fundraising application called Flipstarter.cash. A week later, the developers announced the first fundraisers held on the newly developed application. One of the first fundraisers was dedicated to one of the BCH community’s most popular nonprofits Eatbch. The organization leverages bitcoin cash (BCH) donations to help feed people in need throughout Venezuela and South Sudan. During the last five months, people donated $6,000 in BCH donations to the Eatbch Flipstarter campaign. Other Flipstarter funded campaigns saw donations sent to infrastructure development, developer adoption, and peer-to-peer electronic cash adoption as well. Leveraging BCH exchange rates at the time of the announcement, infrastructure funding saw $769,200 in donations sent to Electron Cash, Knuth, Mark Lundeberg, BCHD, BCHN, Bitcoin Verde, and BitcoinCashJ. Developer adoption funding ($234,000) involved events like mainnet, and BCH Devcon 3. Alongside this, two general adoption efforts stemming from SofiaBCH, and Bit for Tip were also funded ($11,904) via Flipstarter as well. “In less than five months, stakeholders have invested more than $1,000,000 in 12 campaigns,” the Flipstarter team exclaimed. “Each of the recent campaigns was created and operated by its team with no central authority. Not only that, but the campaigns cover a broad range of the commons and are not limited to technical projects” the read.cash post adds. It’s quite common to see a few popular Flipstarter campaigns being advertised on Twitter and Reddit forums like r/btc these days. Last week the BCH proponent and Reddit user u/Shadowofharbringer said that before Bitcoin Cash (BCH) and Flipstarter came to be, he “never thought that spending money can feel so good.” “My favorite way of spending money is on read.cash,” another user referencing the BCH-fueled blogging platform replied to Shadowofharbringer. Overall the million dollars raised on a noncustodial fundraising platform is an achievement for both the Flipstarter development team and the community using it as well. The announcement also details there are roughly seven more Flipstarter campaigns in the process of funding. What do you think about the Flipstarter fundraising app raising $1 million in bitcoin cash towards a variety of efforts? Let us know in the comments below. The post 12 Bitcoin Cash-Fueled Flipstarter Campaigns Raise $1 Million appeared first on Bitcoin News. View the full article

Canada-based Middle Eastern restaurant chain Tahini’s has converted all of its cash reserves into bitcoin. The company says bitcoin offers a much better alternative to cash savings. From Cash Savings to Bitcoin Middle Eastern restaurant chain Tahini’s has announced via Twitter that its entire cash reserves have been converted into bitcoin. Tahini’s is a small company that started in London, a Canadian city in southwestern Ontario. The Mediterranean restaurant chain currently operates four locations, with three franchise locations about to open up in Ontario. The company tweeted on Tuesday: We just converted our entire cash reserves that were originally used as savings into bitcoin. Tahini’s proceeded to explain the reasons behind its decision to convert all of its cash reserves into the cryptocurrency. “Going through the crisis of March business was tough on us & people were scared to go out to eat,” the company described, adding that times were tough and many people were let go at the time they were trying to expand their business. Their expansion plan faced another obstacle. “The government assistance programs in Canada made it very hard for us to bring back our partners (employees) as they were making more money staying at home and not working. All of a sudden we went from an economic crisis to everyone having a lot of money including us,” Tahini’s detailed. “Our cash reserves swelled and business was booming again,” the company noted, adding: But it was apparent to us that cash didn’t have the same appeal. That eventually with all the excess cash circulating the economy that cash would be worth less. One of the restaurant’s owners explained what attracted him to bitcoin. He admitted that he came across the cryptocurrency many times in the past, but his idol at the time was Warren Buffett, who called it “rat poison,” so he did not pay attention to it. He began to change his mind after reading an article entitled “The Number Zero and Bitcoin” by Parallax Digital CEO Robert Breedlove. Following that, he spent the next couple of months accumulating bitcoin in his personal account. He bought even more bitcoin after reading The Bitcoin Standard by Saifedean Ammous, The Price of Tomorrow by Jeff Booth, and articles by Plan B (Twitter handle @100trillionUSD). He also bought more after listening to a number of people in the bitcoin niche, such as Trace Mayer, Peter McCormack, and Anthony Pompliano. “For me I view bitcoin as a true free savings technology that stores wealth across time and space. And it came apparent to me that there is a game of musical chairs being played right now and the music will stop & some people will get left out,” he opined, elaborating: That’s when we as a company decided to store all of our excess cash reserves into bitcoin as it offers a much better alternative to saving cash. We will continue to do that over the coming years and maybe forever if we don’t have a need for the fiat. Tahini’s announcement followed a move by the Nasdaq-listed Microstrategy that became the first major company to convert some of its cash reserves into bitcoin. The company revealed last week that it purchased 21,454 bitcoins at an aggregate purchase price of $250 million. Do you think many more companies will convert cash reserves into bitcoin? Let us know in the comments section below. The post Canadian Restaurant Chain Tahini’s Converts All Cash Reserves Into Bitcoin appeared first on Bitcoin News. View the full article

High profile stock trader Dave Portnoy has panic sold his bitcoin one week after he got into cryptocurrency. He cited the falling price of chainlink, another of his crypto investments, as the main reason. Dave Portnoy Got in and Out of Crypto in One Week American trader and founder of Barstool Sports blog Dave Portnoy became a headline in the crypto space when he began investing in bitcoin on Aug. 13. He sat down with the founders of Gemini Exchange, the Winklevoss twins, who walked him through buying his first bitcoin. Portnoy invested $200K in BTC, $50K in chainlink (LINK), and later bought orchid (OXT). While the prices of his cryptocurrencies were climbing, Portnoy was quite happy. However, he was fixated on pumping and dumping cryptocurrencies. “The thing I like about pump-and-dumps in crypto is that it’s encouraged,” he said in a recording. Noting that in the stock market, the Securities and Exchange Commission (SEC) will take action against anyone engaging in pump-and-dumps, he said, “In crypto, you can pump and dump all day long.” That is not the case, of course, as lawyer Jake Chervinsky explained. “I don’t know who needs to hear this but pump-and-dumps are illegal in crypto just like in every other market,” the lawyer emphasized, elaborating: If you admit to doing them [pump-and-dumps] intentionally on a recorded live stream then you can expect to see the video played back for you as Exhibit A by CFTC and The Justice Dept. A few days later, Portnoy recorded a video of himself in bed, claiming that he was very sick and possibly a victim of covid-19. When he recovered on Friday, he got out of LINK as the price of the cryptocurrency continued to drop. Responding to a chainlink investor accusing him on Twitter of being “just a weak handed suit like the rest of them,” Portnoy wrote: “I make 6 figures a day like clockwork in the real stock market. No need to sit around losing money waiting for Elon [Musk] to mine gold from outer space. I’ll have built my own house on the moon before that day comes. If I wanna lose 7 figs on wives tales I’ll stick with the track.” Portnoy further tweeted: “I currently own zero bitcoins. I will wait and watch. I lost 25k … The LINK marines are weak and the orchid flowers do die in the crypto world. I may or may not be done.” He added: I’m out on crypto because coins don’t always go up. Stocks on the other hand continue to always go up. The Barstool Sports founder clarified in a video that he got out of bitcoin and all cryptocurrencies because of chainlink. He refused to admit that he bought at the top, insisting that in the stock market there is no top because there are always new highs when he buys, giving the example of Amazon’s stock. He said while his BTC holding was climbing, LINK kept falling. The cryptocurrency fell about 24% from its Wednesday’s high but has since bounced back up. At the time of writing, the price of chainlink stands at $16.01, up about 10% over the past 24 hours. Gold bug Peter Schiff is happy that a well-known person has gotten out of bitcoin. “While @stoolpresidente [Portnoy] was the last big name to get into bitcoin he was the first to get out. I predict the next big name to bail will be Paul Tudor Jones,” Schiff wrote. However, contrasting Portnoy, he added, “Stocks always go up until they don’t, and only because of the Fed.” What do you think about Dave Portnoy’s crypto encounter? Let us know in the comments section below. The post Stock Trader Dave Portnoy Dives Into Bitcoin, Only to Panic-Sell After Chainlink Plunges appeared first on Bitcoin News. View the full article

The new U.S. tax form is out and the cryptocurrency question is the first one on the main 1040 tax form used by about 150 million people to file their taxes. The Internal Revenue Service (IRS) requires all tax filers to declare whether they have received, sold, exchanged, or acquired any cryptocurrencies. IRS Focuses on Crypto The IRS has published a draft tax form for the 2020 filing. The question about cryptocurrency is now the very first one on Form 1040, the main tax form used by individual U.S. tax filers. Every year, about 150 million people use this form to file their taxes. The question reads: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” It only requires a yes or no answer. IRS’ 2020 draft tax form showing that the cryptocurrency question is the very first one on Form 1040, which is used by about 150 million individuals in the U.S. to file their tax returns. The IRS began including the cryptocurrency question in its tax form last year. However, the question was previously on Schedule 1, the form used for declaring “Additional Income and Adjustments to Income.” Some tax experts believe that the agency’s crypto question is unconstitutional. IRS’ 2019 tax form showing the crypto question on Schedule 1, the form used for declaring additional income. Twitter user Justin Winston Ono Wales, who said he is a crypto lawyer, believes that the IRS’ question “is way too broad and should be challenged.” He explained: “If you get paid in crypto, you must declare it as wages. If you realized gains from a crypto investment, you must declare it as a cap gain. But constitutionally, the gov should not know whether you purchased, received, or acquired crypto because crypto is not just money … public chains like Bitcoin requires a native currency (BTC) to access its network. BTC is sound money, but also much more,” adding: The updated IRS form doesn’t ask you to list your crypto holdings (yet), but to declare if you received or sold crypto within the year no matter the reason. This information is beyond the purview of information the IRS needs to do its job. The IRS has made no secret of attempting to collect more taxes from cryptocurrency owners. Last year, it sent out about 10,000 letters to people it suspected of owing crypto-related taxes reminding them to pay. However, the Taxpayer Advocate Service, an independent organization within the IRS, says the letters violated taxpayers’ rights. The IRS issued new cryptocurrency tax guidance in October last year to update the one published in 2014. At the end of June, the agency requested information about privacy coins and technologies that obfuscate crypto transactions. The following month, bitcoin investor Jim Harper filed a lawsuit against IRS Commissioner Charles P. Rettig and a number of agents for unlawful seizure of financial records from crypto exchanges. What do you think about the IRS prioritizing the crypto question? Let us know in the comments section below. The post IRS Prioritizes Cryptocurrency, Now First Question on 1040 Tax Form appeared first on Bitcoin News. View the full article

Raghuram Rajan, former governor of the Reserve Bank of India (RBI) and chief economist at the International Monetary Fund (IMF), sees value in bitcoin, cryptocurrencies, and Facebook-backed libra alongside central bank digital currencies. Former RBI Governor’s View on Bitcoin, Crypto, and Libra Former RBI governor Raghuram Rajan discussed possible future roles of cryptocurrency, particularly bitcoin, and Facebook-backed libra during CNBC’s “Beyond the Valley” podcast, published Wednesday. Rajan was the chief economist and director of research at the IMF from 2003 to 2006 and the 23rd Governor of the Reserve Bank of India between September 2013 and 2016. He became the vice-chairman of the Bank for International Settlements while serving as the RBI governor. Rajan told the media outlet that cryptocurrency, bitcoin, and Facebook-backed libra could play a role in a world where central banks worldwide begin to issue their own digital currencies. He called bitcoin a “speculative asset,” adding that “bitcoin is a little bit like gold, in fact, gold has some value because we value it for jewelry, but bitcoin you can’t even do that. Nevertheless, it has value because others think it has value.” Meanwhile, Facebook’s proposed cryptocurrency libra has been designed for large-scale transactions, he noted. Unlike bitcoin, “Libra is an attempt to create a currency which is used for transacting,” Rajan described, emphasizing that the idea is not to hold libra as a speculative asset waiting for it to increase in value but use it for transactions. “So the ultimate underlying value is going to be from the central banks, they’re going to preserve the value, not of libra but of what libra can be exchanged into,” he opined. Rajan sees problems in having a private cryptocurrency that had a monopoly but believes that competing private cryptocurrencies will eventually emerge. Furthermore, “I would like to think that these private currencies are also in competition with the central bank digital currency,” the former RBI governor said, elaborating: So the bottom line I think is different private currencies will do different things and it may be bitcoin has value going forward just as a store of value, or as a speculative asset. While libra may be the kind of currency which is used more for transacting. Another challenge Rajan brought up was the amount of data digital currencies will bring as well as how to safeguard that data. “Do you trust the central bank as much with details on every transaction you make? Should the government know?” he was quoted as saying. “The beauty of the cash in our hands, is that it’s anonymous … Even if you’re not doing something illegal you don’t want the government seeing everything you do.” What do you think about Rajan’s view on crypto? Let us know in the comments section below. The post Former RBI Governor and IMF Chief Economist Sees Value in Bitcoin and Facebook Libra appeared first on Bitcoin News. View the full article

Like, hate, or fear them, central bank digital currencies (CBDCs) are on their way. There will be no stopping them. From Sweden to Thailand and China to Canada, governments the world over are experimenting with CBDCs. While most are being undertaken as pilots at this stage, China’s is all but ready for primetime. Social Credit on Steroids The digital dollar and yuan will be a boon to governments seeking greater oversight into monetary movements, with real-time insights into how and where funds are deployed. But these instruments could prove catastrophic for ordinary citizens, further eroding their privacy while increasing inequality. CBDCs are everything that cash is not: easily surveilled, censored, and apportioned to those deemed “worthy” of participating in this new digital economy. Social credit – the notion that citizens must prove themselves eligible for inclusion by kowtowing to the will of the state – is already here, and it’s not just confined to authoritarian regimes. “If the Communist Party [of China] deems you to be untrustworthy, you are denied access to plane tickets, train tickets, opening and operating businesses, and more,” writes Andrew Torba. The Gab.com founder knows what it’s like to be on the wrong end of social credit scoring after Visa blacklisted his business and his entire family for creating the free speech network. At present, financial discrimination is deployed by payment processors at the behest of governments. In a world of CBDCs, governments won’t even need to lean on third parties, as they did when forcing payment providers to withdraw their support for Facebook’s Libra. They can just push a button and freeze out firms that don’t toe the party line. Whether your project is in the business of free speech or 3D printing, it’s all too easy to fall afoul of the powers-that-be. And don’t think that citizens are exempted either; woe betide anyone who should have cause to send funds to a relative in Iran or Cuba. CBDCs are the endgame of the institutions that have been advancing a cashless society. The Covid-19 pandemic accelerated that transition; central bank digital currencies will complete it. Big Tech Won’t Keep Your Financial Secrets When CDBCs are implemented, they’ll build upon the efforts tech companies have already expended on implementing digital payment networks such as Google and Apple Pay. Tech companies and payment providers will be able to integrate deposits held at central banks via SDKs, enabling digital payments to be tightly integrated into apps and platforms. CBDCs will extend these capabilities, enabling money to be sent to friends, family, and merchants via messenger apps, email, and text. Tech companies will become the new banks, providing payment rails to their billions of users, and extending their financial services to include loans and credit scoring. The problem with this shouldn’t need restating: tech companies are terrible at protecting user data. They opaquely leak it, resell it, and stockpile it in central databases that are a honeypot for hackers. In the future, it won’t just be your Facebook account that’s stolen – it will be your entire financial identity and digital bank balance. The Weaponization of Blockchain Bitcoin’s permissionless blockchain provides a means of verifying financial transactions and ensuring the network’s rules governing coin issuance and double spends are maintained. With CBDCs, that utilize a permissioned blockchain component, those same characteristics will be used to surveil, control, and restrict. There will be no need for chain analysis companies to deanonymize addresses because all network participants will be known through rigorous enforcement of KYC/AML. Of course, no one would expect a government-issued CBDC to be KYC-free: money is the state’s primary weapon, and it is not about to relinquish control just because cash has gone digital. Nevertheless, the rollout of CBDCs threatens to usher in an era of unprecedented financial surveillance and control. Consider marijuana dispensaries in the US whose business is legal at state level but still illicit federally. At the moment, they’re able to survive through a combination of cash and censorship-resistant digital payments including cryptocurrencies. Banks simply won’t deal with companies whose commerce intersects with “grey areas” or whose business attracts the slightest whiff of moral opprobrium. CBDCs will only exacerbate that. In an era where woke corporations boycott Facebook to appease the baying mob, it’s easy to envision a near future where financial exclusion is the price paid for anyone espousing remotely outré views. If you want to be a part of the new world order that our financial overlords are building, keep your mouth shut and your business squeaky clean. CBDCs Are a Threat to Everyone It’s not just citizens and small business owners who should be concerned by the emergence of central bank digital currencies. They’re also a threat to private and commercial banks, whose revenue is jeopardized by a paradigm where businesses are able to obtain credit directly from central banks, issued on a permissioned ledger controlled with a vice-like grip. Private banks will need to adapt to stay relevant, and may push back against CBDCs, like print media initially attacked bloggers and social media-based citizen journalists. But just as newspapers have been powerless to prevent digital media from establishing hegemony, private and commercial banks will struggle to halt the CBDC juggernaut. As the digital payments war heats up, these interest groups will lobby hard to claim their piece of the pie. When the dust has settled, the greatest loss will be to the privacy of the people. CBDCs may be good for international payments, corporate loans, and online commerce, but they’ll be bad for your privacy. Keep the Bureaucrats out of Your Wallet As the rise of bitcoin and cryptocurrencies have shown, cash can be digital without being dystopian. If we’re to avoid sleepwalking into a financial panopticon, where every transaction, no matter how small, is scrutinized in real time, CBDCs must be vehemently opposed. There are better ways to pay. /Reuben Jackson Reuben Jackson is a blockchain security specialist and freelance writer living in New York. He writes about all things cryptocurrency and technology related. You can learn more about Reuben’s work and contact him here: https://about.me/reuben.jackson What do you think about this? Let us know in the comments section below. The post Why the Rise of the CBDC Is Bad for Your Privacy appeared first on Bitcoin News. View the full article

This week data from Arcane Research shows there’s been massive demand for Grayscale’s recently launched publicly traded crypto trusts. Following the trusts getting DTC eligibility last monday LTCN (litecoin) shares have been selling for a 753% premium while BCHG (bitcoin cash) shares have sold for a 351% premium. Grayscale Investments’ Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG) are seeing intense demand since the official launch this past Monday. According to statistics from Arcane Research, LTCN was selling for a 753% premium while the BCHG trust was selling for a 351% premium. Trading of both trusts didn’t really pick up until the very next day and Arcane Research said LTCN “traded with a wild premium since the launch.” “Currently, the premium of LTCN is at a whopping 753%,” Arcane tweeted. “High retail demand for LTC exposure generates lucrative returns for the early investors of the trust.” Grayscale recently surpassed $6 billion of AuM. Grayscale offers several publicly traded trusts. These trusts are sold in the secondary market to the public at large premiums compared to the underlying value of the shares (NAV). Thread: The publicly traded Grayscale products👇 pic.twitter.com/x2mnoAo0Qo — Arcane Research (@ArcaneResearch) August 20, 2020 Arcane said the main drivers of Grayscale premiums include investors buying directly into the trust [who] seek compensation for the lockup period, high retail demand for crypto exposure through 401k savings, with few other options. The researchers also added some investors might not be aware of the premiums. “The Grayscale [Bitcoin Cash] Trust was also launched this Tuesday, and has also traded at a large premium,” Arcane’s Twitter post added. “The current premium of BCHG is at 351%.” Arcane added that the BCHG premium has been dropping since the trust launched. After tweeting about the LTCN, BCHG, and the ETHE trust as well, Arcane said that the public demand for digital assets makes it a perfect time to deploy an exchange-traded fund (ETF). “Overall, the premiums of the Grayscale products are far above what they should be, when taking the lockup compensation into account,” the researchers noted. Arcane further said: The premiums show that the public demand for crypto exposure is high, and that the market is ripe for an ETF. When discussing the data for the Ethereum Trust (ETHE), Arcane wrote that trust has $837 million worth of assets under management (AuM ) or 1.8% of the ETH supply. Arcane noted that when the trust came out of the gate, the “premium soared above 800%” but it has since normalized. “The publicly traded shares of the trust (ETHE) currently trade at a premium of 93.7% compared to the NAV,” the researchers said on Friday. What do you think about LTCN and BCHG shares trading at well above the NAV? Let us know what you think about these trusts in the comments section below. The post Grayscale’s Litecoin and Bitcoin Cash Trusts Trade for Tremendous Premiums appeared first on Bitcoin News. View the full article

Nigeria’s weakening naira currency, as well as the shortage of U.S. dollars, are forcing businesses to switch to bitcoin as the means of settling payments for international transactions. Nigerian businesses need the American currency to buy new supplies, as well as to order essential equipment from abroad. However, formal sources of foreign currency like banks are failing to meet this demand. According to a report by the Nigerian publication, Businessday, even Bureau De Change (BDCs), the popular alternative sources of foreign currency in Nigeria, are unable to meet the high demand for dollars. An anonymous source tells the publication that “in recent times, a few BDCs have tried to take an education in bitcoin operation.” The education efforts are now paying off as “many of them (businesspeople) are coming to ask us how it works, and the ones that already know are switching to BTC for international trade.” Cryptocurrencies have gained prominence in Nigeria given their use as a medium for settling cross border payments and for remittances. The global pandemic and the associated restrictions on movement appear to have spurred on a new wave of demand for bitcoin. More Nigerians are exploring cryptocurrencies as shown by the number cryptocurrency wallets downloaded. For instance, data from Local.Bitcoin.com shows that Nigeria overtook the United States as the country with the most downloads of the Bitcoin.com Wallet in the past week. Out of the 18,613 wallets downloaded between 16 and 10 August, 3,473 were from Nigeria which shows the country is well ahead of the 2,802 from the United States. India is a distant third with a total of 1,420 downloads during the same period. Data from Usefultulips also shows that Nigeria is one of the countries with high peer to peer bitcoin traded volumes in the world. The publication also highlights the report by Blockchain.com which shows the country leading the African continent in terms of peer-to-peer traded bitcoin volumes. According to this report, Nigeria recorded trades valued at $34.4 million in the second quarter of 2020. Meanwhile, the publication quotes Yele Badamosi, CEO of Bundle who says “there are certainly a lot more use-cases for bitcoin in Nigeria. However, Badamosi believes “most people see it as a speculative asset” The CEO adds “that (speculation) will probably be the biggest and one of the primary use-cases. We then have remittances and a medium of exchange between other currencies (as use cases).” The publication also says the cryptocurrency exchanges that it spoke to “have seen a spike in remittances.” The Nigerian newspaper also quotes Tomiwa Lasebikan, co-founder and head of Products at Buycoins who is attributing growth in the use of bitcoin “to the naira depreciation which has seen more people willing to hold and trade in bitcoin.” Rume Ophi, a Partner at Vorem Nigeria is more emphatic in his opinion. He says: They are using it to buy stuff abroad, especially the people doing business in China because it is lucrative there even though the Chinese government is clamping down on transactions using cryptocurrencies. All you need to do is have a VPN, you are on the internet, you can do your transaction. Bitcoin is not censored so it is difficult for them to control. The number of people spending bitcoin now in Nigeria is increasing like wildfire. I get all sorts of questions these days like ‘How can I start?’ ‘How can I trade?’ Still, some experts say the increased use of bitcoin is also exposing old challenges like poor education and ignorance. A report by Luno, a cryptocurrency exchange, shows that “while more Nigerians were aware of cryptocurrencies, many are not adequately educated.” Efforts to educate Nigerians about cryptocurrencies and bitcoin are ongoing and just recently, a local cryptocurrency exchange used the local reality television show, Big Brother Naija to showcase bitcoin and its use cases. Housemates in the reality show were made to participate in a bitcoin quiz. All contestants received $500 in bitcoin. What do you think about Nigeria’s growing bitcoin use? Share your thoughts in the comments section below. The post Nigeria’s Foreign Currency Crisis Boon for Bitcoin: Country Tops Wallet Downloads Ahead of the US appeared first on Bitcoin News. View the full article

Robert Kiyosaki, the author of the best-selling book “Rich Dad, Poor Dad,” explained this week that time is running out as a “major banking crisis is coming fast.” The best selling author says now is “not a time to think about it” and said people should start considering leveraging precious metals and bitcoin. Robert Kiyosaki wrote the popular book “Rich Dad, Poor Dad,” and he also offers personal finance education to people interested in learning about real estate, investing, cash flow, and how to start a business. During the last few years, Kiyosaki has been an advocate for cryptocurrencies like bitcoin and he’s predicted an economic collapse for years now. In 2018, during an interview with the Sane Crypto Podcast, Kiyosaki called bitcoin “the people’s money” and said he expects digital currencies to outlast fiat. Following the Covid-19 outbreak and the beleaguered global economy, Kiyosaki has continued to praise precious metals and bitcoin. On August 21, the best selling author tweeted about Warren Buffet’s recent decisions to invest in gold. “Why Buffet is out of banks?” the author said. “Banks bankrupt. Major banking crisis coming fast. [The] Fed [and] Treasury to take over the banking system? Fed and Treasury “helicopter fake money” direct to people to avoid mass rioting?” Kiyosaki continued: Not a time to ‘Think about it.’ How much gold, silver, [and] Bitcoin do you have? A number of Kiyosaki’s 1.4 million followers questioned his statements about bitcoin and some recommended other investments. One individual replied to Kiyosaki’s tweet and said that it was “highly irresponsible not to own any bitcoin.” “Some say they can’t afford one whole Bitcoin-just like gold, [but] you can buy a portion of it,” the Twitter account Stack Satoshi’s said responding to Kiyosaki’s statement. “[One] bitcoin has 100 million units called Satoshis. Start buying Satoshis and in no time, you will have one whole Bitcoin and many more,” he added. Kiyosaki’s tweet got a number of responses from his followers and most people didn’t seem to appreciate his recommendations. The author of “Rich Dad, Poor Dad” said similar statements last April when the U.S. government started distributing stimulus. At the time, Kiyosaki said the “death of the dollar” was imminent. “Death of dollar,” Kiyosaki told his Twitter followers at the time. “People desperate for money. Very sad. If [the] government gives you free money, take it yet spend it wisely. Do not save. Buy gold, silver, bitcoin. Dollar is dying.” What do you think about Robert Kiyosaki warning about a major banking crisis? Let us know what you think in the comments section below. The post Rich Dad, Poor Dad Author Says ‘Major Banking Crisis Coming,’ Praises Bitcoin and Gold appeared first on Bitcoin News. View the full article

Two-time U.S. presidential candidate John McAfee has announced that he is leaving the ghost cryptocurrency project, claiming that it will fail “without a doubt” and his reputation has been damaged. His Ghost phone service, however, will be launched as planned, he emphasized, adding that there will be a new cryptocurrency for the Ghost ecosystem. John McAfee’s Trouble With Ghost Crypto John McAfee, who has been building the Ghost ecosystem that includes the privacy-centric ghost cryptocurrency, an exchange, and phone service, has announced that he is no longer supporting the ghost cryptocurrency. He tweeted Wednesday: “I am abandoning the Ghost project. Management is incapable of making a success of the project. It will, without a doubt fail.” He then apologized to those he “led astray.” The antivirus tycoon insisted that he really believed in the ghost cryptocurrency but Switch CEO Josh Case ruined everything. “Josh controlled the project. He was killing it,” McAfee told his Twitter followers. “Josh is an idiot,” he continued to tweet. “I added Ghost to my Ghost ecosystem because I had his assurance that he would be 100% focused on ghost. He never fulfilled that promise. I could no longer support a project managed by someone working on Clearpoll, Ethershare etc.” To explain why his “hands are tied,” McAfee posted a private message he said he sent to Case. “If you had told me, from the beginning, that making money for you, myself and everyone involved in Ghost, was of no interest to you and you merely wanted a piss around with worthless projects, like Ethershare, from your past that never made you, nor anyone else a dime, then I would never have given you legal control over ghost,” the message reads, adding: Now I have to find another coin for the Ghost ecosystem and you have damaged my reputation through your inability to focus exclusively on the task at hand. The Ghost ecosystem also consists of the Ghost phone service which McAfee announced in July. It claims to help subscribers be “invisible,” noting that it will be “the first 4G data service to make connections to the network untraceable.” After meeting with the Ghost executive team, McAfee confirmed: “Our Ghost phone service – coming Sept. 30, is the foundation of our ecosystem and nothing will change with the service. We are, though, dropping GHOST as our privacy coin and will replace it.” The ghost cryptocurrency launched in June and the Bitcoin.com exchange listed the ESH token at the end of May prior to McAfee airdropping some ghost coins to ESH holders. In the same month, the Ghost team announced a partnership with the digital currency payment processor Ivendpay that allows 60 vending machines in Hong Kong to accept the ghost cryptocurrency for payments along with other cryptocurrencies, such as BTC, ETH, BCH, and BNB. Responding to McAfee’s departure announcement, the “Ghost by McAfee” team clarified on Wednesday: “We will be dropping the ‘by John McAfee’ soon and will just be called Ghost … John is in no way involved in any day to day operations, nor has he ever been involved with any of the tech or building of Ghost.” The price of the ghost cryptocurrency has fallen about 63% from its Wednesday high to $0.266391 at the time of this writing. What do you think about McAfee’s trouble with the ghost crypto? Let us know in the comments section below. The post John McAfee Ditches Ghost Crypto Project: He Says It Will Fail appeared first on Bitcoin News. View the full article

Brian Brooks, the acting comptroller of currency at the U.S. Office of Comptroller of Currency (OCC), says America must adopt digital currency payment rails if the country hopes to compete with global payment rails in the future. He insists changing consumer needs must be prioritized over the interests of powerful banks that may be against the rise of cryptocurrencies. Speaking in an interview, the former chief legal officer at Coinbase Global, said it is a fact that “50 million Americans own digital currency and we cannot ignore that.” Brooks says part of “the reason why payments activity has moved outside the banking system is because consumers now want to receive their services in a different way.” Consumers of financial products want fast and error-free services and this means the United States needs to “get to a place where payments can be transmitted virtually instantaneously and where errors can be eliminated.” Under Brooks’ leadership, the OCC has already issued a banking license to a fintech company Varo Money. The watchdog has also given the green light for banks to start offering crypto custody services. Despite granting banks the opportunity to participate in crypto-related services, Brooks still thinks banking systems are outdated and not suitable for today’s changing environment. He explains how the American economy shut down laid bare this fact: “When the lockdown started, Americans relied on banks to process and send stimulus checks and payments, yet for many people it took days, sometimes weeks before they received their payments.” According to U.S. media reports, many Americans experienced delays in getting their “economic impact payments” due to issues like changed addresses or closed bank accounts. Identifying the source of this challenge, Brooks said, “the problem is we were sending those (payments) across using 19th-century banking rails.” Before the rise of new technologies, “all payments happened through the banking system.” New technologies have changed the way consumers buy or pay for goods, but as Brooks underscores, “banks are sort of the last bastion of the amalgamated comprehensive supermarket of financial services.” He anticipates continuing resistance by banks to new payments rails. Still, Brooks reiterates his conviction that “there is nothing more powerful than markets because they represent what millions of consumers want every day.” Therefore, “my job is not to build new payment rails but to identify and solve impediments that make it hard for people to get what they want and need.” The OCC leader remains mindful of how he might be perceived in banking circles given his background. Nevertheless, Brooks reassures players in the banking sector of his mandate as leader of OCC: I am not a crypto bull or bear but I recognise reality, a lot of people have this stuff (cryptocurrencies) and they have it for good reasons. We need to make sure its a success to them in the same safe and sound way they get a check into their account. Our role is to innovate as people change the way they consume financial services. Brooks also wants banks to innovate so that they can keep up with the changing market. What do you think of Brooks’ stance on privately issued digital currencies? Share your thoughts in the comments section below. The post OCC Chief Says Americans Gravitating Toward Digital Currencies: Urges Banks to Embrace Innovation appeared first on Bitcoin News. View the full article

Actor and venture capitalist Ashton Kutcher’s first attempt at digital art, an awful piece titled “The Eye of the Beholder”, is auctioning at Cryptograph. At the time of writing, the highest bid stood at 13.26 ethereum, or about $5,400, with a day to go before the sale ends. Kutcher’s video on the blockchain-based art market demonstrates a new concept where the physical original is destroyed to assure the digital copy of a unique existence as a cryptograph. Kutcher’s piece, digitized in a low-resolution phone-camera shot, is a remarkably bare-bones doodle of cartoon eyes and a one-stroke star. The ‘Two and a Half Men’ star adds his star power to crypto-art creators, including Paris Hilton, Skeet Ulrich and David Arquette. He has picked two charities, Global Wildlife Conservation and Oxygen Seven, to receive a portion of the sale. Cryptograph commented on the historical aspect of Kutcher’s digital artwork. “He has created a physical sketch drawn inside a book, which he then digitizes before destroying the physical version of his work, by burning it,” it said, in a statement, adding: His idea here is to show that his physical creation is fully transcending into the digital realm, where its authenticity and immortality is absolute. This action is deeply symbolic and provokes one to think more on how the physical and digital realms can be combined in new and interesting ways. Cryptograph added that Kutcher’s minimalist take on eyes looking at a star, viewed in the context of the title, is probably meant to capture the subjective nature of art. Now, in its second year, Cryptograph is a blockchain technology that converts drawings into unique digital artworks that cannot be copied, stolen, or destroyed. A portion of all sales are donated to charities of the artists’ choice. Kutcher’s investment firms, A-Grade Investments and Sound Ventures, have put money into multiple crypto firms. It remains to be seen whether his piece matches Paris Hilton’s cat doodle which was recently fetched at $17,000, but his participation is the latest instance of Hollywood royalty flexing their crypto art goals. Early last month, news.Bitcoin.com reported on the growing sales of non-fungible token (NFT) artwork on marketplaces like Opensea, Nifty Gateway, and Makerplace. Nifty Gateway recently broke records, selling a digital piece by the artist Trevor Jones for $55,555. What do you think about Ashton Kutcher’s NFT digital art? Let us know in the comments section below. The post Hollywood Royalty Flexes Crypto-Art Goals: Ashton Kutcher Auctions NFT Digital Art for ETH appeared first on Bitcoin News. View the full article

Last week the firm Phoenix Thoroughbreds was reportedly banned from horse racing in France over the founder’s alleged involvement with the crypto Ponzi scheme Onecoin. Last November, Onecoin cofounder Konstantin Ignatov, the Cryptoqueen’s brother, told New York prosecutors Phoenix Thoroughbreds owner Amer Abdulaziz Salman was one of the “money-cleaners under the guidance of Gilbert Armenta.” The great Onecoin scandal continues after news.Bitcoin.com recently reported on the unsealed indictment of Gilbert Armenta, an alleged Onecoin co-conspirator. Armenta was allegedly Ruja Ignatova’s (Cryptoqueen) former boyfriend who ostensibly helped Onecoin leaders launder millions of dollars. Some of the Onecoin funds may have been funneled into the thoroughbred racehorse industry, according to Konstantin Ignatov’s testimony last fall. Following the unsealed document for Gilbert Armenta and his sentencing date for October 21, 2020, a recent episode of the popular BBC Sounds podcast the “Missing Cryptoqueen” uncovered some interesting findings. The new episode showed how a Onecoin law firm and reputation management company allegedly got the UK’s Financial Conduct Authority (FCA) to take down a Onecoin warning. This week all eyes are now on, Amer Abdulaziz Salman, and his racehorse company Phoenix Thoroughbreds. This is due to the fact that last week a number of horse racing news outlets reported on France Galop officials removing two Phoenix Thoroughbreds race entries from the Prix de la Vallee d’Auge at Deauville. Phoenix Thoroughbreds owner Amer Abdulaziz Salman. Reportedly the ban is due to allegations concerning the source of Phoenix’s funding. News.Bitcoin.com reported on Salman’s alleged involvement with Onecoin in December 2019. During the end of 2019 during Konstantin Ignatov’s testimony, Inner City Press investigative journalist Matthew Russell Lee reported on Konstantin Ignatov’s statements under oath. Lee also discussed the ostensible Phoenix Thoroughbreds engagement with Onecoin via statements from the former attorney Mark Scott. The reporter recorded Mark Scott’s post-arrest statements last November. “All the money that was not invested,” Scott said. “[It] was at the direction of the investors, sent to, umm, another, umm, another financial advisor in Dubai. We have nothing to do anymore… We signed an agreement, the first agreement at the behest of the investors is called Phoenix something Investment Fund, I think just Phoenix.” Konstantin Ignatov’s statements under oath were also recorded by Lee in a series of tweets on November 6, 2019. Furthermore, Ignatov’s testimony was also published in great detail by the Guardian contributor, Chris Cook, and both accounts involved the Phoenix Thoroughbreds owner Amer Abdulaziz Salman. Ignatov told the court that Salman was “a key figure in a major money-laundering operation” and he also told a story about Salman buying “racehorses for, like, €25 million.” Thoroughbred racehorses can sell for hundreds of thousands and often millions for top breeds. News.Bitcoin.com also reported last December that Salman and Phoenix Thoroughbreds categorically denies all of the allegations stemming from Ignatov’s testimony. “Phoenix Fund Investments LLC categorically denies all allegations made against it, and its owner, Mr. Amer Abdulaziz, in legal proceedings against Onecoin and its conspirators in the U.S.,” the company’s website notes. However, the racingpost.com author Tom Kerr says Phoenix has a lot of questions to answer. “[Phoenix] never offered an explanation for Ignatov’s comments or directly addressed the €185m that is alleged to have been transferred by a convicted money launderer to Phoenix Fund Investments,” Kerr wrote last Tuesday. Kerr and the publication racingpost.com say the newsdesk acquired video footage of Phoenix’s ostensible involvement with Onecoin management. “[Racingpost.com] obtained video and social media evidence that demonstrates Onecoin operated an office in Dubai’s Phoenix Business Center, another company of Abdulaziz’s, over a period from late 2017 to early 2018,” Kerr reports. What do you think about the Phoenix Thoroughbreds’ alleged involvement with Onecoin funds? Let us know what you think about this topic in the comments section below. The post Onecoin Allegedly Tied to Racehorse Firm, Phoenix Thoroughbreds Removed from France Galop Race appeared first on Bitcoin News. View the full article

China and Russia are collaborating to reduce their dependence on the U.S. dollar. Trade settlements in USD between the two countries have fallen below 50% for the first time. De-dollarization in Russia and China The dollar’s share of trade between Russia and China was only 46% of settlements in the first quarter, the Financial Times reported Monday, citing recent data from Russia’s central bank and the Federal Customs Service. This was the first time the use of the U.S. dollar for settlement of trades has fallen below 50%. The euro, on the other hand, represented 30% of all settlements and the national currencies 24% — both are all-time highs. Since the establishment of the Bretton Woods system, the U.S. dollar has been used as the medium for international trade. However, in recent years, a number of countries, including some G20 countries, have been transitioning to trade in national currencies. Russia and China have been trying to reduce their U.S. dollar use in trade settlement for several years. In 2015, about 90% of their bilateral transactions were conducted in USD, but that figure dropped to 51% last year, the publication continued. Alexey Maslov, director of the Institute of Far Eastern Studies at the Russian Academy of Sciences, told the Nikkei Asian Review that the Russia-China “de-dollarisation” was approaching a “breakthrough moment.” He believes that it could elevate the two countries’ relationship to a de facto alliance. “Many expected that this would be a military alliance or a trading alliance,” the director elaborated. “But now the alliance is moving more in the banking and financial direction, and that is what can guarantee independence for both countries.” ING Bank’s chief economist for Russia, Dmitry Dolgin, was quoted as saying: Any wire transaction that takes place in the world involving US dollars is at some point cleared through a US bank. That means that the US government can tell that bank to freeze certain transactions. The Swift system, which has traditionally been used for trade settlement, is overwhelmingly controlled by the U.S., so many countries are trying to construct their own alternative payment systems. For example, China launched a cross-border interbank payment system in 2015. “Global policies for de-dollarization include sharply reducing US debt holdings, dropping US dollar’s status as an anchor currency, increasing non-dollar bulk commodity trade, growing the reserve of non-dollar currencies, and ramping up gold’s hedge against the dollar,” Wang Wen, a professor and executive dean of the Chongyang Institute for Financial Studies at the Renmin University of China, explained in an article he authored in Global Times. Zhang Xin, a researcher at the Center for Russian Studies at Shanghai’s East China Normal University, noted that the Chinese government and major economic entities have recently begun to worry that they might end up in a similar situation as their Russian counterparts. They are concerned that they may become “the target” of sanctions and “potentially even getting shut out of the Swift system,” he explained. Russia has been accumulating renminbi reserves at the expense of the U.S. dollar, the publication conveyed. The Bank of Russia revealed early last year that it had slashed dollar holdings by $101 billion, which amounted to over half of its existing dollar assets. The central bank then raised the renminbi’s share of Russia’s foreign exchange reserve from 5% to 15% by investing $44 billion in China’s currency. What do you think about Russia and China reducing dollar dependence? Let us know in the comments section below. The post Russia and China De-dollarization Approaching ‘Breakthrough Moment’ appeared first on Bitcoin News. View the full article

The U.S. state of Hawaii has authorized 12 cryptocurrency companies to start operating in the state without needing a money transmission license. No action will be taken against them for conducting unlicensed money transmission activities for two years. Hawaii Green-Lights 12 Crypto Firms Several cryptocurrency companies independently announced on Wednesday that they have been greenlighted to launch in the U.S. state of Hawaii. They have been admitted to the state’s Digital Currency Innovation Lab (DCIL), a program that “allows digital currency issuers to do business in Hawaii without obtaining a state money transmitter license,” the program’s website reads. This regulatory sandbox is in partnership with the Hawaii Division of Financial Institutions (DFI). The program, which runs from Aug. 19 to Dec. 31, 2022, accepted applications from cryptocurrency companies between March 17 and May 1. A total of 19 companies applied; 12 companies, including several crypto exchanges, fulfilled the conditions of the program and have been admitted. The website details: The participating company will be given 2 years to engage in digital currency transactions. DFI has issued a ‘no action message’ – stating that ‘no action’ will be taken against companies conducting what DFI would consider unlicensed money transmission activity, if they have been successfully admitted into the program. The 12 companies admitted to the program are Apex Crypto, Bitflyer USA, Blockfi, Cex.io, Cloud Nalu, Coinme, Erisx, Flexa, Gemini Exchange, Novi Financial, River Financial, and Robinhood Crypto. The DFI will monitor all cryptocurrency transactions taking place in the Digital Currency Innovation Lab. Participants will be required to provide updates, including the number and value of transactions. They are also required to provide information regarding the number of complaints received and any regulatory enforcement orders. Participants that do not receive explicit approval to continue operations must conclude all cryptocurrency transactions when the two-year period is up. “Per the participation agreement, companies must also execute on the wind-down plan and exit strategy. DFI will determine the appropriate licensing for the company to continue operations, if applicable,” the website clarifies. Hawaii previously had strict rules for crypto businesses, prompting a number of companies to exit the state. Coinbase, for example, ceased operations in Hawaii in early 2018 over requirements to hold fiat reserves. What do you think about Hawaii’s crypto program? Let us know in the comments section below. The post 12 Crypto Firms Authorized to Operate License-Free in Hawaii for Two Years appeared first on Bitcoin News. View the full article

Decentralized finance (defi) continues to make waves this week, as the Yearn Finance project token (YFI) jumped over 270% during the last five days. The digital token is worth more per coin than the price of bitcoin today, as the asset is currently trading for $15,934 per YFI. It’s very rare to see another token price higher than the price of bitcoin (BTC) but during the last five days, the Yearn Finance token (YFI) jumped well above the BTC price per coin. The project developed by Andre Cronje is a platform built on top of the Ethereum blockchain that allows yield aggregation. The project’s documentation describes Yearn Finance as a “profit switching lender to optimize lending yields.” Essentially, Yearn users leverage other defi apps like Aave, Compound, Curve, and others to maximize lending scenarios. Users utilize a yield farming strategy via the myriad of liquidity pools and Yearn optimizes the best returns on liquidity. The price of YFI skyrocketed on Thursday, August 20, 2020, to $15,934 per coin at 10:26 a.m. ET. YFI is up over 54% today. The Yearn Finance project is also responsible for the Curve Y pool and this pool allows interest-earning via high demand stablecoins like USDT, DAI, TUSD, and USDC. Yearn just launched a governance token and the coin is aimed at obtaining yield liquidity through the variety of different pools available. Basically the YFI token allows earnings through staking “proof-of-liquidity” and the “purpose of curve.fi is to further increase rewards on yearn.finance tokens.” In order to leverage the Yearn Finance ecosystem users can choose from four product categories; “Earn,” “Zap,” “APR,” and “Vaults.” The “Earn” category lets a user connect a wallet and search for the best returns. The “Zap” protocol provides a user with access to the stablecoin lending abilities via Curve Finance. The “APR” section is used to cross-reference interest rates gathered across the defi ecosystem. “Vaults” are automated liquidity mining strategies that optimize pool liquidity by depositing assets that will be managed in the most efficient scheme. Asset-specific liquidity pools are already in high demand on decentralized exchange (dex) platforms like Balancer and Uniswap. The YFI token has seen phenomenal gains during the last week following the craziness that ensued over the YAM project. Since August 15, YFI has spiked over 270% in value from $4,272 per coin to today’s $15,934 per YFI spot price. YFI is up over 54% on Thursday and in terms of ETH it’s worth over 38 coins and 1.34 BTC using current exchange rates. Now in terms of market cap, there is only 30,000 YFI in existence so the token’s overall market valuation is only $477 million at the time of publication. The $477 million market cap puts the Yearn Finance project in the top 36th position among 5,700+ crypto coins and tokens in existence. What do you think about the defi project Yearn Finance? Let us know in the comments section below. The post Yearn Finance Token Jumps 270% in 5 Days – Defi Token YFI Worth More Than a Single Bitcoin appeared first on Bitcoin News. View the full article

North Korea allegedly has about 6,000 hackers, many of whom operate abroad, according to a recent report published by the U.S. Army. The infamous Lazarus Group, thought to be linked to a number of cryptocurrency exchange hacks, is among them. North Korea’s Bureau 121 The U.S. Army recently published a document entitled “North Korean Tactics.” The 332-page “Army Training Publication (ATP) 7-100.2,” dated July 24, describes “North Korean tactics for use in Army training, professional education, and leader development.” A section of the document discusses “computer warfare,” which it says consists of “attacks focusing specifically on computer systems, networks, or nodes.” Examples given are “Unauthorized access (hacking) of information systems for intelligence-collection purposes” and “Insertion of malicious software (viruses, worms, logic bombs, or Trojan horses).” The document explains that the primary organization in North Korea responsible for computer warfare is Bureau 121, elaborating: There are over 6,000 members in Bureau 121, many of them operating from other countries, such as Belarus, China, India, Malaysia, and Russia. According to the U.S. Army document, “North Korean computer hackers have even been able to access secure systems and steal South Korean war plans.” In 2009, North Korea’s Mirim College was graduating approximately 100 cyberspace hackers per year for the Korean People’s Army, the document adds. There are four groups under Bureau 121: The Andarial Group with about 1,600 members, the Bluenoroff Group with about 1,700 members, the Electronic Warfare Jamming Regiment, and the Lazarus Group, which has been linked to a number of cryptocurrency-related hacks. The infamous Lazarus Group, with an unknown number of members, is said to be behind some cryptocurrency exchange hacks. In March this year, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned two Chinese nationals linked to the group. They allegedly laundered stolen cryptocurrency worth over $100 million from an exchange. The Treasury explained that the Lazarus Group leveraged malware code from the now-defunct cryptocurrency application Celas Trade Pro, creating illegitimate websites and malicious software to conduct phishing attacks against the cryptocurrency sector. The group also allegedly unleashed the Wannacry ransomware in 2016–2017, causing massive disruptions worldwide. A U.N. report published last year claims that North Korea had amassed $670 million in cryptocurrencies, including bitcoin, through hacking. There are also reports of North Korea mining cryptocurrency. In February, data suggests the country’s monero (XMR) mining increased 10-fold. What do you think of North Korea’s army of hackers? Let us know in the comments section below. The post US Says North Korea Has 6,000 Hackers: Many in Belarus, China, India, Malaysia, Russia appeared first on Bitcoin News. View the full article

A court in Tokyo, Japan has ordered the seizure of crypto assets that have been traced back to the Coincheck hack of January 2018, The Japan Times reported Wednesday. More than $530 million worth of the NEM (XEM) cryptocurrency was stolen from the exchange two years ago in what turned out to be the crypto industry’s biggest heist. While the Times did not provide figures, another report in a different local publication reveals that about 4.8 million yen ($45,000) in bitcoin (BTC) and XEM is to be confiscated from Takayoshi Doi. The 30-year-old doctor from Obihiro, Hokkaido, was arrested in March, together with an accomplice, for buying stolen XEM and for violating a law against participating in organized crime. But police do not believe Doi was responsible for the hack. According to the reports, the Tokyo District Court placed a protective order on Doi’s digital assets ahead of a police-authorized confiscation of the money. Prosecutors say the tokens were deposited on a domestic cryptocurrency exchange. Should the suspect be found guilty, the XEM will be seized and forfeited to the government, possibly for auction and compensation to the Coincheck victims. The court order is believed to be the first such order issued for crypto assets in the Asian country, The Japan Times said. Hackers plundered 523 million XEM tokens from Coincheck on January 26, 2018. At the time, the coins’ estimated value totaled $530 million but have declined sharply ever since. Today, the stolen tokens are worth just $38 million. Coincheck’s theft remains the biggest in the cryptocurrency industry, dwarfing Mt Gox’s $460 million hack of 2014. What do you think and the Japanese court’s confiscation order? Let us know in the comments section below. The post Japanese Court Orders Seizure of Cryptocurrency Linked to Coincheck Hack of 2018 appeared first on Bitcoin News. View the full article

The researchers and analysts from Tokeninsight published it’s “2020 Q2 Cryptocurrency Mining Industry Report” which shows the industry has grown exponentially during the last six months. The findings indicate cryptocurrency mining has expanded a great deal but China’s bitcoin mines “suffered a great impact” in H1. Tokeninsight published its “2020 Q2 Cryptocurrency Mining Industry Report” and the study shows a lot has happened in the bitcoin mining industry during the first half of 2020. The new research paper discusses a number of topics that affected the bitcoin mining industry this year and the countries that are welcoming these operations. For instance, Tokeninsight highlights that the Uzbekistan government established a “national mining pool” in January. Distribution of Bitcoin mining rig model manufacturers. (Source: Tokeninsight, and F2pool). After that announcement, Quebec’s Hydropower Agency of Canada allowed bitcoin miners to obtain 300MW of electricity. In February the Ukraine government said bitcoin mining “does not require government supervision and intervention.” The following month, Missoula County, Montana, created new regulations for bitcoin miners. Quarterly comparison of average hash rate and per unit power consumption of Bitcoin mining machine models. (Source: Tokeninsight, and F2pool). In May, The Acting Minister of Energy of Ukraine told the public bitcoin miners might be able to draw nuclear energy. In April, the local government officials in Sichuan approved the “Hydropower Consumption Demonstration Enterprises.” News.Bitcoin.com recently reported on the second-batch of consumption enterprises approved in Sichuan. In June, the Parliament of Kyrgyzstan said it plans to “tax and supervise digital asset miners.” Changes in the marginal revenue of new mining machines during the 3/12 crash and the halving. (Source: Tokeninsight) Tokeninsight said that China has been the hardest hit in 2020 as the country has seen a significant impact from a variety of reasons. The Tokeninsight researchers mentioned that Covid-19 caused mining rig shipment delays, the bitcoin halving cut revenue in half for Chinese miners, internal disputes from mining machine manufacturers like Canaan and Bitmain, and the report also mentions mining policy changes in Sichuan. Estimated market share of each manufacturer. (Source: Tokeninsight and Bitmex Research). Moreover, Tokeninsight has noticed a trend of new players entering the bitcoin mining rig manufacturing sector. “In terms of the mining machine manufacturing sector, new players are eager to enter the field, and the old overlords are also trying their best to update the technology to manufacture leading products in the market,” the paper notes. “In the first half of 2020, new generation mining machines including Bitmain’s S19 and S19 Pro, WhatsMiner M30 series, and Canaan’s A1146 Pro and A1166 Pro have been launched one after another.” The report further adds: From the data published by several manufacturers, the new generation of mining machines has been greatly optimized and improved in terms of performance and power consumption. The study says that the core competition between mining rig manufacturers is semiconductor research and development (R&D). A number of mining rig manufacturers leverage 10-7nm chips and the Tokeninsight researchers highlight that chips will improve in the coming years. “At the current chip research and development level, Samsung and TSMC have deployed 3nm chips, and both plan to mass produce 3nm in 2022,” the paper explains. “Although 3nm is said to be a node approaching the physical limit, TSMC has already planned for 2nm and is conducting research and development with mass production in 2024.” “Mining hardware is facing an accelerated iteration period, and the field of AI chips will become a battleground,” the Tokeninsight researchers add. In addition to the problems with Covid-19, supply chain delays, and government rules, China’s bitcoin mining industry is feeling the pressure from the 2020 monsoon season in Asia. Excessive flooding in Sichuan during the last five days caused 20% hashrate losses for a number of Chinese bitcoin mining operations on Tuesday, August 18. What do you think about Tokeninsight’s Q2 mining report? Let us know what you think in the comments below. The post China’s Bitcoin Mining Industry Impacted the Most This Year, Says Report appeared first on Bitcoin News. View the full article

Chainlink is a bubble that is waiting to burst, and the token will eventually lose 99% of its value, according to crypto investor and analyst ‘Cryptowhale’. The warning comes as the price of Link tumbled 23% to $15.41 in 48 hours. Cryptowhale this week told his 28,000 Twitter followers that there are parallels with what is happening now to chainlink (LINK) and what happened with altcoins in 2017, the year of the historic cryptocurrency bull run. An altcoin is any other cryptocurrency, which is not bitcoin (BTC). With a market capitalization of $5.8 billion, chainlink is the world’s fifth largest digital asset, making it one of the prime examples in the altcoin market. “For months we’ve watched LINK grow exponentially. Its price has shot well beyond its intrinsic value through Defi hype, and greed,” opined Cryptowhale, warning investors not to “fall victim to the bubble.” “Chainlink was created after the 2017 bubble, so it didn’t have its pump and dump moment. Instead, it’s having it now. Predicting the top is almost impossible, but we know how it will end. Once the hype subsidises, panic will take over,” the analyst added. Chainlink (LINK) seven-day market data on Wednesday, August 19, 2020, at approximately 9:10 a.m. ET via markets.Bitcoin.com. Cryptowhale illustrated a series of factors that make chainlink (LINK) a bubble – one that will inevitably pop. The token rises too quickly, is overbought and then FOMO sets in, pulling in large numbers of retail investors. This is followed by a huge sell-off, 99% price correction, and eventually, uninitiated small investors will be left desperately clutching to an asset with diminishing value. The crypto analyst argues that chainlink may now be at any one of the above bubble stages. Cryptowhale’s predictions may be reflected in the performance of Link over the past couple of weeks, and more so in the last few days. The coin plunged 23% to as low as $15.41 on August 18 after having reached a record-high $20 two days earlier. At the time of writing, the crypto is trading at $16.47, up 0.56% over the last 24 hours, according to data from markets.Bitcoin.com. Chainlink has spiked more than 800% since its January opening price of $1.8, as the community hyped the project. The biggest increase came in the last eight weeks or so, but the latest drop indicates a huge sell-off. Trustnodes also reported that Chainlink developers themselves dumped up to $40 million of the LINK token once the price peaked – something that may be considered a bad sign in the bubble cycle. Now, some investors might be feeling a sense of deja vu, as chainlink nosedived. In that 2017 initial coin offering (ICO) euphoria, investors threw money at unproven projects, which quickly went under or ‘shrank to a tiny fraction of their peak value’. A bubble is where investors buy an asset, not for its fundamental value, but because they plan to resell, at a higher price, to the next investor, said Cryptowhale. What do you think about chainlink’s price action in light of the bubble views? Let us know in the comments section below. The post Analyst: Chainlink Is Another Altcoin Bubble as Price Crashes 20% in 48 Hours appeared first on Bitcoin News. View the full article