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Bitcoin News

Bitcoin and Crypto Currency News

Browse latest bitcoin news about new businesses that accepts bitcoin and other cryptocurrencies, blockchain technology, and regulations of bitcoin. We report on latest crypto currency news, prices, talks and new start up related to bitcoin and other crypto currency.




  • Coin.mx Bitcoin Exchange Fraud Mastermind Pleads Guilty; Faces Lengthy Prison Sentence

    ​Over Bitcoin’s history, the most destructive and insidious issue that has threatened the community has been bitcoin exchange risk, or outright fraud run through exchanges. Whether it has been Mt. Gox, Cryptsy, or even cloud mining service Hash Ocean, no other issue has affected more Bitcoin’s users or done more damage to Bitcoin’s global reputation. Yesterday, another bitcoin exchange issue has reached a legal resolution with the case of Coin.mx.

    Anthony Murgio, 33, of Tampa, Florida, has pled guilty to several felony charges in relation to the case against the administration of the Coin.mx bitcoin exchange. Murgio was arrested in July 2015 on charges of breaching federal anti-money laundering laws and regulations, as well as on the allegation that he enabled criminal activity by exchanging cash for bitcoins for victims of ransomware attacks.

    This is also just part of his alleged criminal activity. Murgio and criminal cohort, Yuri Lebedev, seemed to have also gained control of the Helping Other People Excel (HOPE) Federal Credit Union. The U.S. Attorney in Manhattan said they channeled funds from Coin.mx through bribery, including bribing Trevon Gross, a pastor and former chairman of the credit union.

    The criminal activity was ramped up in the volume of funds exchanged through the credit union’s services, and this caught the attention of the credit union regulators at the National Credit Union Administration, which then alerted authorities.

    Murgio faces a minimum of 12 1/2 years in prison, according to Reuters, after pleading guilty to three felony counts. These include conspiracy to operate an unlicensed money transmitting business and conspiracy to commit bank fraud as part of a plea agreement.

    “By pleading guilty, Anthony Murgio accepts full responsibility for his conduct,” Murgio’s attorney Brian Klein told Coindesk via email. “Today, he was able to start the process of putting what happened behind him. In connection with his sentencing, we look forward to letting the judge know the many positive things about Anthony.”

    The case is also notable for Murgio’s attempts to have the charges dismissed by arguing that bitcoin was not a currency for the purposes of federal law prohibiting the operation of the unlicensed money transmitting businesses. A U.S. District Court judge ruled against the motion in September, finding that bitcoin qualified as the act describes “funds” versus fiat money, specifically. The judge also said that because bitcoins can be accepted as a payment for goods and services or bought directly from an exchange with a bank account, therefore Bitcoins do function as currency.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • European Union Begins Crackdown on Bitcoin and Altcoins in the name of Fighting Terrorism

    ​The narrative that “terrorism” is a great reason to take everyone’s freedom’s and privacy is being played out in the E.U. on a daily basis. Whether it is women being taught to wear makeup over bruises from immigrant attacks to restrictions on cash and precious metal usage, the E.U. is quickly collapsing into a failing socialist state. As Bitconnect has reported previously, Bitcoin is certainly on the list of nice things the average citizen can’t be trusted with int he region, and even altcoins are under attack by the new E.U. regulations.

     

    The E.U. Council created an official draft last week outlining its position for more stringent EU rules set to prevent “money laundering and terrorist financing.” The draft directive has two main objectives: To prevent the financial system to finance criminal acts is used; the transparency rules should be tightened to prevent money be kept secret on any large scale.

    Using recent “terrorist” events, what some are calling “false flags,” as justification, this draft directive aims to ensure a balanced balance between the need for increased security and the need to protect fundamental rights and economic freedoms. The proposal is part of the Action Plan the Commission to combat the financing of terrorism.

    First on the list is limiting the “risks associated with prepaid cards and virtual currency.” The threshold for determining holders of prepaid cards has been reduced from € 250 to € 150 and the requirements for the review of customers have been extended. Exchange platforms for any and all virtual currencies and providers of electronic purses must comply with their due diligence and conduct customer checks to remove the anonymity of such exchange transactions. This is what they said about cataloging digital currency users:

    “The report shall be accompanied, if necessary, by appropriate proposals, including, where appropriate, with respect to virtual currencies, empowerments to set-up and maintain a central database registering users' identities accessible to FIUs, as well as self-declaration forms for the use of virtual currency users.”

    Of course, a central database can be hacked from the outside, or surveillance from the inside, which is safety features of Bitcoin and other digital currencies users are trying by being decentralized in practice, but this of course if of no concern to the E.U. Council or Commission.

    European Union Member States have 12 months to transpose the directive into national legislation. However, longer deadlines (24 or 36 months) apply to the implementation of the various provisions relating to the registers of economic owners.

    One of the many flaws in this pending legislation is that it has been proven that Bitcoin is not a source of terrorist funding. The HM Treasury in Great Britain spent 2015 doing an exhaustive review of all the sources of terrorism funding and Bitcoin came in at the bottom of the list, with cash and bank transfers being the primary sources. For details on this U.K. study on the matter,click here.

    The E.U. legislators have clearly not done nearly the research as the HM Treasury, and have provided no information showing Bitcoin to be a source of terrorism financing, but they intimate that it could be used in the future, so the spin is that are basically being proactive.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • San Francisco Subway System Says They Won’t Pay Bitcoin Ransom

    The holiday season may be a time for families and gift-giving, but it also seems like a time for hacking and ransomware. Just in the last few days, three new ransomware attacks have hit the news, all looking for Bitcoin. The most highprofile instance is with the shutdown of the computerized payment system of the San Francisco Municipal Transportation Agency or MUNI. After about a week under siege, they say they will not give into the attackers and will pay no Bitcoin ransom.

    Never Considered Paying

    Every situation is different, it is always best not to pay cybercriminals, but a MUNI spokesperson said they had never considered making any Bitcoin ransom payment. The demand is for 100 BTC, which translates to about $73,000 USD. The attack started last week and forced MUNi to allow MUNI users to go fare-free on Friday and Saturday, costing them over $1 Million USD in lost revenue.

    "We have never considered paying the ransom," Muni spokesman Paul Rose told Bank Info Security. "We have an IT team that can fully recover our systems, and they are doing that. Based on internal information and in a conference with the Department of Homeland Security, they do not have access to critical data files. Access to payroll timekeeping was, but we manually kept time for employees.”

    Matthew Schwartz of Bank Info Security contacted the email provided by the hacker to access the Bitcoin key for payment. He did receive a message back from someone going by Andy Saolis, who seemed glad to chat about the hack if he is the one pulling it off. The less-than-stellar English grammar left on the MUNI system matches Saolis’ syntax pretty closely, leading one to believe this is the mastermind. Muni reports that their payment machines are back online.

    "If some hacker tries to hack your transportation infrastructure target-based, it's have more impact!" he told Schwartz. He threatened to dump "publish 30G databases and documents include contracts, employees data, LLD Plans, [and] customers" information without a payment. “Sorry for my English anyway ;)" he added.

    As Bitcoins become more and more valuable, these attacks may pick up steam in 2017, since Bitcoin may become somewhat unaffordable to obtain by legitimate means. If anyone has a DDoS service protection for businesses in the works, your business should soar like Bitcoin prices for some time to come.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • European Central Bank Wants EU Lawmakers to Attack Bitcoin

    ​Having been a Wall Street banker myself, unless you are a member of the ruling elite, I know that the centralized global financial system is an economic control grid. The European Union is a control grid under a control grid. Great Britain discovered that and are beginning to remove themselves from this grid, but the member nations still withing throws of this regional tyranny are facing new propaganda designed to control the future of money. A new Eurozone attack on Bitcoin is in the planning stages, and here are the details.

    Never met a central bank that liked a decentralized currency

    The current central banking system, which is essentially global in nature, is great, if you like things like endless national economic debt and banker bail-outs, or bail-ins, depending on what country and bank it is that needs a mulligan. With an entire continent under regulatory capture, and a license to literally print money, the European Central Bank (ECB) still feels the need to attack “virtual currencies” (Bitcoin) in a new missive released on Tuesday.

    Check this out. The ECB received requests from the Council and the European Parliament in both August and September for an opinion on how to prevent the financial system from money laundering and terrorism funding. In this official ECB response, the first thing out of the ECB’s response, Subsection 1.1, is “Regulation of virtual currency exchange platforms and custodian wallet providers?

    Hiding behind the guise of terrorism funding and money laundering, this is their official stance on what seems to be Public Enemy #1, usage of Bitcoin:

    “The proposed directive also requires the Member States to ensure that providers of exchanging services between virtual currencies and fiat currencies and custodian wallet providers are licensed or registered…..terrorists and other criminal groups are currently able to transfer money within virtual currency networks by concealing the transfers or by benefiting from a certain degree of anonymity on such exchange platforms. The use of virtual currencies also poses greater risks than traditional means of payment in the sense that the transferability of virtual currency relies on the internet and is limited only by the capacity of the particular virtual currency’s underlying network of computers and IT infrastructure”

    The number of holes in this opinion is impressive. Registering exchanges create an extension of the control grid, a power grab, that is important to see. What if Bitcoin catches on in a big way? Do you think regulations from the establishment will get easier or harder? Will licenses be impossible to come by, like in New York with “BitLicense,” where only one major company (Circle) has secured a BitLicense? The BitLicense was a power play to force Bitcoin and related businesses out of the state, and it did its job beautifully.

    Regarding the use of Bitcoin for money laundering and/or terrorism funding, the United Kingdom’s HK Treasury did an exhaustive review, almost exactly one year ago, of the financial sources for money laundering and terrorism funding. What did they find to be the #1 source of these funds used illicitly? Banks! By a factor of 2:1 over any other direct source of funding. What was the least-used source? Digital Currencies. Banks were found to be almost 7X more likely to fund terrorism than Bitcoin. Don’t think the ECB doesn’t know about this study.

    Finally, yes, Bitcoin is limited by its underlying network. There is less than 410 Billion USD in the entire global Bitcoin system. The #1 terrorism funding source, being “banks,” have almost infinite funds, and through wires can move more money overall than Bitcoin ever could, just based on economic value available. So either the ECB is willfully ignorant of how Bitcoin is used or endlessly corrupt and looking to game an already rigged system even further.

    So this five-page opinion report covers a one-page introduction, three-and-onehalf pages of cures for the many ills Bitcoin is responsible for and exactly two paragraphs on fixing the biggest source of these issues “Central registers of bank and payment accounts

    One more fallacy to reveal. Japan, as we have already reported, has approved Bitcoin, or digital currencies,” as money on par with their own Japanese Yen, but the hit piece also attacks the concept of Bitcoin as money and mistakenly lists Japan as a country looking to legislate against Bitcoin.

    “Consistent with the approach, which has either already been adopted, or is currently being considered, by other jurisdictions regulating virtual currency exchange platforms, including Canada, Japan and the United States, the ECB recommends defining virtual currencies more specifically, in a manner that explicitly clarifies that virtual currencies are not legal currencies or money.”

    So what is the point, besides the ECB either doesn’t know what they’re talking about or is incredibly corrupt? When it comes to lawmaking in the E.U., but most likely in any country on Earth, the one with the money makes the rules. The Council and the European Parliament, twice, asked for the ECB’s opinion on how to solve crime, and they got the answer that Bitcoin is the #1 financial legislative problem in the E.U., (What a shock! A central bank attacking a decentralized currency through backdoor regulations? The hell you say!)

    So tell me how E.U. regulations on Bitcoin, which we have gone over previously, are gonna turn out in 2017? This also clearly reveals the fact that the ECB is afraid of Bitcoin and is using their leverage to kill any potential decentralized competition in the future. The upcoming regulations will not serve the citizens of the E.U., but they should serve the banks of the E.U. pretty damn well.

    Kinda like the entire E.U. concept as a whole, huh? At least they’re consistent.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • Enemy of The State - Is Bitcoin Core Under Attack From “State-sponsored hackers?”

    Bitcoin is a wonderful advancement in the world of technology. Just ask every bank in the “free world” that is working night and day, as we speak, to leverage is innovations for their own corporate advantage. Yet, Bitcoin is far from flawless, and one of Bitcoin’s issues is it’s open-source, inclusive, decentralized nature can lead to random issues like this. According to one of Bitcoin’s largest and most trusted websites, Bitcoin Core may be under attack, from an unlikely source.

    Future Hacking or Future Hoaxing

    One of Bitcoin’s leading information websites, bitcoin.org, posted an ominous warning on Wednesday implicating the next Bitcoin Core update, labeled 0.13.0. The notification mentions Bitcoin Core being attacked by “Statesponsored hackers” through the downloadable “binaries” included in this update. Binaries are pre-sorted batches of software that is ready to implement for the end user.

    Bitcoin.org has reason to suspect that the binaries for the upcoming Bitcoin Core release will likely be targeted by state-sponsored attackers. As a website, Bitcoin.org does not have the necessary technical resources to guarantee that we can defend ourselves from attackers of this caliber. We ask the Bitcoin community and in particular, the Chinese Bitcoin community to be extra vigilant when downloading binaries from our website.”

    Any potential Bitcoin hacking threat, whether real or imagined, should be taken seriously, with the community still dealing with the scandal at the Bitfinex Bitcoin exchange losing $72 million USD in funds to hackers. About 80% of the global Bitcoin mining and more than 90% of the Bitcoin trading is done in China, and the statement references the country directly, vaguely mentioning the potential location of the alleged attackers.

    "In such a situation, not being careful before you download binaries could cause you to lose all your coins. This malicious software might also cause your computer to participate in attacks against the Bitcoin network. We believe Chinese services such as pools and exchanges are most at risk here due to the origin of the attackers.”

    The problem with this warning is the person making it is unknown. The source of this information is unknown. The alleged state that would sponsor such mayhem is not known or referenced. The entire concept is unsubstantiated, as bitcoin.org is not affiliated with Bitcoin Core, and may have just been done to cause panic within the community, says Bitcoin Core contributor Eric Lombrozo to The Register.

    "The maintainer of the bitcoin.org site posted an advisory of an apparent threat he's been informed about – without consulting anyone else. There’s absolutely nothing in the Bitcoin Core binaries, as built by the Bitcoin Core team, that has been targeted by state-sponsored attackers that we know of at this point. Perhaps certain sites where people download the binaries could end up getting compromised, but let's not unnecessarily spread paranoia about the Bitcoin Core binaries themselves.”

    It would seem prudent to contact Bitcoin Core directly for more information before making any new downloads from 0.13.0. BitConnect will keep you informed on any updates to this story.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • Australia Moves to Support Bitcoin Community; Removes GST Tax

    The world of Bitcoin has been a hectic one in The Land Down Under over the last couple of years. As I reported back at the end of 2014, Australia is one of the world’s most fervent and eager Bitcoin markets, controlling approximately 7% of the world supply. MasterCard has attacked Bitcoin’s growth in Australia to protect their market share. And the nation’s banks have made life particularly difficult for Bitcoin startups to conduct business.

    Now, Bitcoin’s nascent technology has finally found some relief from the attacks of the status quo. The Australian government is removing GST taxes and will move to help build a “competitive environment” for Bitcoin and the burgeoning finch industry.

    Australia is officially stepping forward for Bitcoin

    In December of 2014, Australia made the use of Bitcoin itself subject to GST taxes, creating a “double taxation” effect, given the fact that most purchases already are subject to GST taxes in the country. This update will right that wrong, according to an official statement by the Australian government’s Treasury.

    "The Government recognizes that that the current treatment of digital currency under GST law means that consumers are ‘double taxed’ when using digital currency to buy anything already subject to GST. The Government is committed to addressing the ‘double taxation’ of digital currencies and will work with the industry on legislative options to reform the law relating to GST as it is applied to digital currencies” , the release said.

    Of course, nations will look to attach AML/KYC regulations to the use of the currency to protect them against terrorism. Their new release on the matter even speaks of creating a “regulatory sandbox” to help Bitcoin and finch startups reduce risks, lower costs and gain traction.

    "Removing the ‘double taxation’ treatment for GST on digital currencies and applying adequate anti - money laundering and counter - terrorism financing rules may facilitate further developments or use in the future” , they added.

    As Andreas Antonopoulos and others have said directly to the government of Australia, taking a pro-Bitcoin leadership position can be huge for the country. the citizens have already taken a liking to the financial option, and with China and Japan in the region and familiar with the digital currency, there is a lot of upside to creating a friendly Bitcoin business environment. The treasurer seems to have taken this to heart, after due consideration.

    "As Treasurer, I want to help create an environment for Australia’s FinTech sector where it can be both internationally competitive and play a central role in aiding the positive transformation of our economy”, said Australia’s Treasurer Scott Morrison.

    This splash of good news in the region dovetails nicely with the ruling in Japan to treat Bitcoin as a standard currency , not an economic scourge. With broader government support, this should help Bitcoin adoption grow, along with business innovation and investment. The market seems ready to invest in a growing market segment over the next 10-15 years rather than fear a short-term market adjustment towards a new global technology. Score another one for Bitcoin.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

  • Hackers Crack Hundreds of Bitcoin Wallets; Net Over $700k in Bitcoins

    Bitcoin wallet technology is advancing worldwide, with products like Trezor and Case hardware wallets that have cameras and GSM Internet chips. Hackers are also advancing their efforts with overall computer tech improving at an even faster rate. With Bitcoin’s primary blockchain proving impenetrable to any hacking attacks after seven years of service, each individual is a more likely target. Now, over $103,000 USD has been stolen in a recent attack on the owners of some Bitcoin “brain wallets.”

    What is a “brain wallet?” A brain wallet is a wallet that does not require any physical storage of keys, nor a computer, fault, paperwork or other means to record owner keys. The allure of a brain wallet is the ability to travel anywhere and maintain your wealth without the need for a bank’s safe deposit box, a paper wallet that may get flooded or burn. The theory is that users have the ultimate freedom and versatility of remembering a passcode to access precious Bitcoin digital currency.

    The only problem with this theory of the perfect wallet is that security is far from perfected. 884 Bitcoin accounts lost over 1800 Bitcoins over the course of six years. These Bitcoins today are worth over $722,000 USD. The underlying weakness in these brain wallets was the users created wallets with weak passwords that used a single hash, SHA256 function without cryptographic salt, many of these passwords were even stored on the public blockchain itself.

    Marie Vasek, Joseph Bonneau, Ryan Castellucci, Cameron Keith, and Tyler Moore will present “The Bitcoin Brain Drain: A Short Paper on the Use and Abuse of Bitcoin Brain Wallets” publicly at the Financial Cryptography and Data Security 2016 Conference in Barbados next week. They will be exposing the details of this security breach and the inherent flaws with Bitcoin brain wallet security to the audience (This paper is viewable in its entirety here.)

    "Our results reveal the existence of an active attacker community that rapidly steals funds from vulnerable brain wallets in nearly all cases we identify," the paper explains. "In total, approximately $100K worth of bitcoin has been loaded into brain wallets, with the ten most valuable wallets accounting for over three-quarters of the total value. Many brain wallets are drained within minutes, and while those storing larger values are emptied faster, nearly all wallets are drained within 24 hours.” 

    While some hypothesize on the merit of brain wallets and the ability to increase their security, the brain wallet was public debunked by one of the authors of this paper, Ryan Castellucci, at the Defcon Hacker Convention last August. This led to the closing of the world’s largest producer of brain wallets, brainwallet.org, soon after.

    Author : Evander Smart

    Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University