Following the unprecedented cryptocurrency boom in 2017, investors and governments alike could no longer ignore the growth of decentralized finance.

The world has become increasingly fascinated with cryptocurrencies and the ways they are enabling greater access, such as being able to send funds to remote places or securing capital for small businesses.

To aid this, cryptocurrency regulations are being slowly introduced into global financial markets. Regulations help to monitor these emerging digital currencies, and to allow for clearer guidelines and a measure of security.

Todays graphic from ComplyAdvantage maps out major regulatory cryptocurrency and exchange landscapes around the world, showing how sentiments towards digital currencies are evolving.

To do this, ComplyAdvantage measured cryptocurrency regulatory environments using their own Light-to-Tight scale, based on the following criteria:

Which jurisdictions have the strictest and most relaxed regulations for cryptocurrencies?

Global attitudes towards the rise of cryptocurrencies have shifted greatly over the past few years. While the term cryptocurrency is a bit of a misnomer, some countries do consider digital currencies legal tender, with many viewing cryptocurrencies as commodities.

Below is a table of the major countries that are pursuing cryptocurrency regulations:

Sources: ComplyAdvantage, HedgeTrade, CoinDesk

Japan has one of the most progressive regulatory climates for cryptocurrencies, widely considering bitcoin as legal tender and passing a law in mid-2017 recognizing cryptocurrencies as legal property. In late 2018, Japan also approved self-regulation for the crypto industry.

By contrast, China currently has one of the most restrictive environments in the world for cryptocurrency. China banned bitcoin transactions in 2013, as well as ICOs and crypto exchanges in 2017though many have found workarounds through sites not yet firewalled.

Cryptocurrency and exchange regulations in the EU are determined by individual member states, and are considered legal across the bloc.

Digital currency offers great promise, through its ability to reach people and businesses in remote and marginalized regions.

Christine Lagarde, Managing Director of IMF

Perhaps unsurprisingly, Switzerland has one of the most open climates for cryptocurrencies and exchanges in Europe. In 2016, the city of Zug, known as Crypto Valley, started accepting bitcoin as payment for city fees. Swiss Economics Minister Johann Schneider-Ammann announced his goal in 2018 to make Switzerland the worlds first crypto-nation.

Both Canada and the U.S. take a similar approach to cryptocurrency legislation at the federal level, as both countries view cryptocurrencies as securities. However, provincial and state regulations differ widely in their taxation requirements of profits from crypto investments.

Regulations throughout Latin and South America run the full legislative spectrum.

Cryptocurrencys journey is the story of a technology rapidly outpacing the laws that govern it.

Governments around the world are keenly aware of this problem. Members of the G20 published a request in June 2019 for a global regulatory framework for cryptocurrencies to be implemented to better manage the benefits and challenges that cryptocurrencies bring.

Regulation for both cryptocurrencies and crypto exchanges is essential for the future of digital financebringing legitimacy to the digital financial market, and making it more attractive for new businesses, established banks, and investors worldwide to more easily conduct business within this emerging ecosystem.

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Mapped: Cryptocurrency Regulations Around the World - Visual Capitalist

A hacking collective called the Lazarus Group has been trying to compromise MacOS systems in an elaborate scam involving cryptocurrency software and a realistic-looking website.

Lazarus Group, a gang of hackers believed to be sponsored by North Korea, tried to penetrate Apple computers running macOS by tricking users into downloading a cryptocurrency application from a seemingly legit website.

The software would, of course, contain malware, infecting the computer and giving users complete remote access. Its one thing to exploit an existing vulnerability, but when users give the attackers full access via regular channels, the intrusion can be more extensive.

The attackers created a cryptocurrency-trading application, hosted on GitHub to give it more credibility, and built a good-enough website to promote it. Once the user installs the software and grants it administrative privileges, the hackers have a backdoor into the OS.

Its not every day we get a new macOS malware specimen to tear apart, especially one written by a reasonably sophisticated APT group, said Jamfs Principal Security Researcher Patrick Wardle, the researcher who caught the malware. Do you have to worry about getting infected? Probably not, unless youre an employee working at a crypto-currency exchange.

In an interview with Forbes, Patrick Wardle said the attack wasnt necessarily geared toward regular users. Attackers sent the infected software to cryptocurrency exchanges for review, with the hope of compromising essential systems.

The Lazarus Group and other hacking groups based or sponsored by North Korea have been operating for years, and the United States has issued a few advisories over time regarding their continuous attacks.

Recent Articles By Author

*** This is a Security Bloggers Network syndicated blog from HOTforSecurity authored by Silviu STAHIE. Read the original post at: https://hotforsecurity.bitdefender.com/blog/north-korean-hackers-tried-to-infect-macos-systems-with-fake-cryptocurrency-app-21641.html

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North Korean Hackers Tried to Infect macOS Systems with Fake Cryptocurrency App - Security Boulevard

Fractals are repetitive patterns in which the price of an asset within a period of time acts similarly as it did in a previous period, which is not necessarily of the same length. While these movements are not always identical, they always share numerous similarities, most often the ratios between different proportions of the movements.

These recurring patterns have very often been used to make predictions about the price in the future date, assuming that the price will act similarly.

Long-time trader and analyst @cryptopicasso noted a possible repetitive pattern in the price movement of Bitcoin in March and October 2019.

Besides the direction and magnitude of price movement, these patterns possibly have the same relationship between the 100- and 200-period moving averages (MA).

However, the current move is developing at a potentially faster rate, since the chart uses the hourly time-frame as opposed to the four-hour in the March movement.

Lets look at both these movements in more detail and determine how similar they actually are.

On February 9, the Bitcoin price began an upward move from a low of $3422. This was followed by a bullish cross between the 100- and 200-period MA on February 18.

The price created an ascending support line, which was touched three times before the price broke down.

Afterward, the price increased to validate the previous support as resistance, a very common movement after a breakdown.

But, instead of decreasing, it began a rapid increase above $5000. This movement continued until June 24, when the price reached a high of $13,764, marking an increase of roughly 400%

The price began an upward move after reaching a low of $7798 on October 7.

This was followed by a bullish cross between the 100- and 200-period MAs on October 10.

The price created an ascending support line and validated it three times.

If the price acts in the same manner as in March, it will break down from the support line, validate it, and continue its upward movement.

Unlike the previous period, a bearish cross transpired between the MAs, as mentioned above, on October 15.

While we could see an initial pump above $9000 similar to that at the beginning of April, we do not believe the price will continue its increase for a long period, similar to previously when it eventually reached a high of $13,764 on June 26.

The reason for doing so is the current trading pattern and wave count.

While we could see an extended wave four up to the resistance line at $9200, we do not think a breakout is likely before the price finishes one more downward wave.

Do you think the fractal will prove correct, or will it be invalidated? Let us know in the comments below.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

Images are courtesy of Shutterstock, TradingView.

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Bitcoin Will Break Out Again in November, Suggests Cryptocurrency Trader - BeInCrypto

Facebook announced its ambitions to create a new digital currency last summer, with 28 companies pledging their support and cash. But in just a few months, more than a half dozen have changed their minds.

Booking Holdings, the travel company behind Priceline and Kayak, dropped out of the Geneva-based Libra Association, following a similar move by Visa, Mastercard, eBay, Stripe, PayPal and others in the last couple of weeks.

The association is hosting a meeting in Geneva this week to plan next steps. Dante Disparte, head of policy and communications for the group, said in an emailed statement that although the makeup of the Association members may grow and change over time, the design principle of Libras governance and technology, along with the open nature of this project ensures the Libra payment network will remain resilient.

Companies involved with Libra are facing increased pressure from global regulators, including an investigation in the European Union, said Eleanor Fox, a professor of trade regulation at New York University School of Law.

Perhaps the companies realize that being part of this group would entail a huge amount more regulation. And it will, Fox said.

In the United States, members of Congress and the Treasury Department have warned Libra and its partners they would be subject to stringent regulation.

Its pretty clear, said Avivah Litan of the message being sent by regulators. Litan is a vice president and analyst at Gartner, a research and advisory firm. They said that if you go forward with this, were going to regulate your activities with Libra and all your other activities much more closely. So it wasnt even subtle.

But Litan said the tougher oversight, and even the headlines of companies dropping out, is more an optics problem than a real danger for the Libra Association. There are still big names like Uber, Lyft, Vodafone and Spotify on board.

Obviously, the U.S. is a big market, and that market may be cut off to Libra in the short run, Litan said. But its a big global market. And the fastest areas of growth are actually in Africa. Thats where all the growth is happening.

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Another partner abandons Facebooks cryptocurrency - Marketplace.org

The agency says Telegram didn't register the offering with its office, and since it sees Grams as securities, it's accusing the company of violating the Securities Act of 1933. It's not clear how this restraining order would affect Gram's launch as a whole. Former SEC attorney Zachary Fallon told Bloomberg that it could also complicate the company's ability to sell tokens in other countries. But even if it doesn't prevent Telegram from launching outside the US, it could still cause huge issues for the company. The New York Times reported back in August that Telegram promised investors it would deliver Grams by October 31st or return their money.

The SEC Division of Enforcement's Co-Director Stephanie Avakian said:

"Our emergency action today is intended to prevent Telegram from flooding the US markets with digital tokens that we allege were unlawfully sold. We allege that the defendants have failed to provide investors with information regarding Grams and Telegram's business operations, financial condition, risk factors, and management that the securities laws require."

The agency also stressed that companies can't avoid federal securities laws just by labeling their products a cryptocurrency or a digital token.

Read more:

SEC puts a stop to Telegram's cryptocurrency plans in the US - Engadget

Updated: May 25, 2018:

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Alert: IRS Releases Long-Awaited Guidance on Taxation of Cryptocurrency Transactions - JD Supra

This publication consists of two components: Rev. Rul.2019-24, and 43 frequently asked questions which pertain to cryptocurrency held as a capital asset. IR-2019-167 is designed to supplement Notice 2014-21. In addition to discussing how basic tax principles apply to cryptocurrency, Notice 2014-21 included answers to numerous frequently asked questions.

The FAQs included in IR-2019-167 provide a more thorough treatment on the taxation of cryptocurrency as investment property. In this post, we will discuss the basic contributions made by IR-2019-167 to the taxation of cryptocurrency. As we will see, the new Revenue Ruling clarifies issues related to two novel developments in the cryptocurrency world; and the FAQs answer multiple complex hypothetical scenarios involving the sale or acquisition of cryptocurrency as investment property.

In the cryptocurrency space, the term hard fork refers to the creation of a new digital token as a consequence of the splitting of an existing digital token into two separate currencies. The newly created digital token is then logged separately on an entirely new electronic ledger (or blockchain). A hard fork itself doesnt necessarily result in the delivery of new digital tokens to cryptocurrency holders, only the creation of a new token on a new ledger. Whats more, the term airdrop refers to the delivery of digital tokens to multiple cryptocurrency holders. An airdrop can follow a hard fork.

Revenue Ruling 2019-24 provide analyses and conclusions to two separate hypothetical scenarios, one scenario involves a hard fork, and the second involves a hard fork followed by an airdrop. In the first scenario, a hard fork occurs and a new digital token is created when an existing token is split.

However, the taxpayer doesnt receive any new tokens. The IRS conclusion is that the taxpayer doesnt have taxable income as a consequence of the hard fork because no additional tokens were received. In the second scenario, a hard fork is followed by the receipt of a certain quantity of the newly created digital currency.

The IRS conclusion is that the taxpayer has taxable income equal to the fair market value of the digital tokens received. Essentially, these two scenarios are a couple of relatively straightforward questions pertaining to the definition of gross income. But, even though they are conceptually simple, they involve new developments in the cryptocurrency space, and so the guidance is useful.

As mentioned, the frequently asked questions component of IR-2019-167 contains a total of 43 questions and answers. These questions range from the very simple to the complex. The IRS is trying to proactively tackle all conceivable scenarios involving the sale or acquisition of cryptocurrency.

This effort is meant to aid cryptocurrency investors as they plan ahead for the possible consequences of gains. The IRS references preexisting material when it makes sense to do so. For instance, the IRS provides a reference to its manual, Publication 544, on the disposition of assets.

The questions begin on the simpler side; the first question is the simplest what is virtual currency? and then the questions gradually increase in complexity. Those who intend to speculate in cryptocurrency will find answer to basically every conceivable hypothetical scenario. The IRS provides an answer on the question of the taxability of cryptocurrency transfers from one digital wallet to another, for example; the IRS also addresses the issue of the tax basis of cryptocurrency received as a bona fide gift.

Publication IR-2019-167 has been a very anticipated document. Investors in the cryptocurrency space have been waiting for additional guidance so that they can be adequately prepared when tax time rolls around. Practitioners have also been seeking counsel on the tax implications of novel cryptocurrency developments (such as a hard fork).

The two components Rev. Rul. 2019-24 and the 43 FAQs do quite a lot to provide clarification and help cryptocurrency investors get a grip on the possible tax consequences of their cryptocurrency investments. Of course, cryptocurrency investors should be sure to consult with an accountant prior to filing their return whenever they have cryptocurrency capital gains.

An accountant is necessary to ensure that the liability is calculated properly. And, in cases involving back cryptocurrency tax debt, a tax attorney may be necessary to resolve cryptocurrency tax debt in an optimal manner.

The IRS Offers Cryptocurrency Guidance

Why Bitcoin Owners Should Worry About the IRS

See the article here:

The New Guidance on Cryptocurrency - Accountingweb.com

LAUNCHED AS REALCOIN in July 2014, Tether aimed to become a more reliable alternative to Bitcoin, the best-known cryptocurrency. With a $4.1bn market capitalisation, it is now the fifth-largest virtual currency. But its efforts to gain investors trust have fallen short. On October 6th a group filed a class-action lawsuit in New York, accusing Tether of being part-fraud, part-pump-and-dump, and part-money laundering. They call for truly startling damages: more than $1.4trn.

In response to The Economists queries, Tethers general counsel said that the lawsuit is meritless and the plaintiffs complaint is rife with errors. The firm has not used Tethers to manipulate any market, he added, and operates in full conformity with applicable laws.

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In 2014 Tether adopted its current moniker, which made its selling point explicit. With dollar reserves that it said matched Tethers one-to-one, it was one of the first stablecoinsdigital currencies that seek to avoid price swings by pegging their value to the greenback. That made it a useful unit of exchange. Many crypto-trading platforms struggle to secure banking services, and thus dollars, because lenders worry about shady transactions. Punters find it easier and quicker to trade Bitcoins in Tether, and it is the most popular crypto currency pair (see chart).

But Tether is also opaque. When and why it mints coins is unclear. Its general counsel says: We issue Tethers when customers want them, full stop. In China, where crypto-exchanges are illegal, buyers can swap wads of cash for Tethers, says Philip Gradwell of Chainalysis, a blockchain-analysis firm. Tethers reserves have not been independently audited. It hired Friedman, an accountancy firm, in 2017. In 2018 the firms parted ways. Later that year Tethers general counsel told Bloomberg that an audit cannot be obtained, citing risk aversion among potential auditors.

And yet its influence on crypto-markets is large. TokenAnalyst, a data-provider, says that Bitcoin prices track issuances of Tethers. On days when new Tethers are minted, the price of Bitcoin, which can be bought with them, rises 70% of the time.

The class action alleges that Tether and Bitfinex, a crypto-exchange that shares the same managers and owners, manipulated markets and raked in profits. In 2017 and 2018, it claims, Tether issued extraordinary amounts of unbacked coins to flood Bitfinex, propping up demand for Bitcoin and creating the largest bubble in human history. Bitcoin prices rose 19-fold between January 1st and December 17th 2017, to more than $19,000 a coin, before falling below $4,000 at the end of 2018. The boom-and-bust, the complaint alleges, destroyed some $265bn in Bitcoin wealth.

Tethers general counsel is adamant that the currency is fully backed. For years, when the firm said reserves it meant hard cash. Yet in March, under criminal probes by Americas Department of Justice, its futures-market watchdog and New Yorks attorney-general, it said that reserves from time to time may include other assets. A month later its lawyer said in court that Tether was then only 74% backed by cash and cash equivalents.

None of this seems to deter crypto-traders. That may be because Tether is the main provider of liquidity to crypto-markets, accounting for 96% of trading volume in stablecoins. It would be hard to replace. Since April Tethers market capitalisation has more than doubled. In September it launched a new stablecoinpegged to the offshore Chinese yuan.

The rest is here:

The issuer of a star cryptocurrency is being sued for $1.4trn - The Economist

Getty

In a Medium post published earlier this month, Castle Island Ventures Partner Nic Carter explained the utility of Bitcoin (BTC) as a revolutionary alternative to the traditional, government-approved banking system. Additionally, Carter wrote about how the thousands of Bitcoin competitors that have popped up over the years have missed the point of this new technology.

On a recent episode of Laura Shin's Unchained podcast, Carter discussed this secondary point on altcoins in greater depth. While Carter noted that the relative success of Ethereum (ETH) cannot be ignored, he also indicated that there are very few chains other than Bitcoin and Ethereum that have any real usage whatsoever.

The Problem with Altcoins

When Shin asked Carter if there were any coins besides BTC that he viewed as legitimate or promising, he responded with an explanation of the key issue that the altcoin market has faced ever since the first alternative cryptocurrencies were created back in 2011.

"The problem I identify in the article is that there has been insufficient attention given to the legitimacy-conferring factors for the long tail of altcoins," said Carter. "And so, the emphasis has always been on technical innovation some of which were really marginal technical innovations and really insufficient attention to the things that I believe matter, which is like: How do you ensure that the developers can't abuse their privilege within the system? Are there checks and balances? Is the monetary policy credible, for instance? And oftentimes, what we actually see in these systems is those credibility-endowing facts are traded off to achieve glamour metrics or technical thresholds."

Carter used the EOS altcoin as an example of this issue. While supporters of EOS tend to point to the high number of transactions the network can process per second as a key selling point, the fact that trade offs are made in terms of the relative centralization of the validator set is oftentimes overlooked. Some of the issues associated with this centralization of the validator set were covered in a recent CoinDesk article.

"[A high degree of centralization] poses a greater threat to the long-term legitimacy of the network, which is not outweighed by the marginal technical enhancement there," added Carter.

The level of centralization around publicly-identifiable validation nodes seen in some altcoin networks, such as EOS and Ripple (XRP), puts into question whether these altcoins should even be referred to as true cryptocurrencies.

Is Ethereum the Exception to the Rule?

The one possible exception to Carter's view on altcoins that came up during his discussion with Shin was Ethereum. Just last week, Ethereum's native ETH token enjoyed one of its best ever 24-hour price moves against BTC. However, it should also be noted that ETH was down 85% against BTC since March 2016, which was the peak of the "flippening" hype, as of late July.

"At this point, you can't deny that Ethereum has a really vibrant community and kind of organic groundswell of usage and development," said Carter. "Beyond that, I would say it's very sparse."

That said, Carter also holds the view that the only cryptocurrencies worth creating are those that aim to be money. Due to the fact that ETH has long been described as a sort of digital gas for computing costs rather than money, Shin gave Carter a chance to explain this apparent inconsistency in his views.

"Ethereum probably should contend and aim to be money, and I think we noticed a little recalibration where initially it was computational gas, like the lubricant in the system, and then more recently certain high profile [Ethereum users] have been saying, 'Well, actually, Ethereum itself is money,'" said Carter.

To Carter's point, Ethereum creator Vitalik Buterin recently stated that ETH can be money if that's what the community wants at Ethereal Tel Aviv 2019. Joseph Lubin, who co-founded Ethereum and founded the blockchain technology company ConsenSys, also made the case for ETH as money during the same discussion at the Ethereal event.

ETH's pivot away from gas and towards money has mainly been promoted on the backs of the various decentralized finance (DeFi) applications that have launched on Ethereum in more recent times.

According to Carter, value accrues in a cryptocurrency network when users decide to hold the underlying token of the network for long periods of time rather than when someone utilizes the token for any sort of short term value transfer (read more on this in an older post).

Shin pointed out that there is also a need for ETH to have value in order for Ethereum's upcoming move to proof-of-stake to work from a security perspective. Of course, this applies to proof-of-work systems as well. After all, the miners need to be incentivized to secure the legitimacy of the transactions on the network.

While the market views BTC as the more valuable and trustworthy form of crypto money today, it still has its own issues. A Bitcoin mining veteran recently described the level of centralization in the industry as "quite alarming." Blockchain technology company Blockstream recently revealed their own massive Bitcoin mining facilities to the public, which is their attempt to help with the problematic situation around mining centralization.

These potential issues around mining centralization have not stopped various individuals from increasing their Bitcoin price targets to anywhere from $42,000 by the end of this year to $100,000 by the end of 2021.

While Bitcoin has had a great year thus far, a bigger winner has been Chainlink (LINK), which was up more than 800% against the US dollar year-to-date at one point.

Read this article:

Bitcoins Competitors Are Missing The Point Of Cryptocurrency And Blockchain Technology - Forbes

North Korea claims that it is creating its own cryptocurrency. Bitcoin and other cryptocurrency prices fell on the newsat least brieflybecause if North Korea is developing its own cryptocurrency, that may reduce its demand for existing cryptocurrency options.

This tells us something about the importance of bitcoin and other cryptocurrencies to North Korea. And American policymakers would do well to understand why North Korea is so heavily involved in these encrypted digital currencies, and the implications of their involvement.

North Korea's new digital currency will be "more like bitcoin or other cryptocurrencies," said Alejandro Cao de Benos, who is both a North Korean official and a Spanish national long fond of the despotic regime.

"We are still in the very early stages in the creation of the token," he added. "Now we are in the phase of studying the goods that will give value to it."

Normal financial transactions are centralized. When you write a check to someone else, for example, your check is used by that other person's bank to go to the Federal Reserve and withdraw money from your bank's account at the Fed. Because the transaction flows through the Federal Reserve, which acts as an intermediary, this is a centralized ledger: The Fed stands between the two banks and acts as a neutral party in their transactions.

Bitcoin, on the other hand, is a computer code that allows a decentralized payment ledger. Bitcoin's computer code keeps track of who owns what and when all on its own. It does this by incentivizing owners of computing power to "solve" a mathematical equation each time a bitcoin changes hands.

Once that mathematical equation is solved, a new set of codewhich says who owns each bitcoinis added to the previous set of code. This chain of code is called the "blockchain." And because no one person owns or single-handedly tracks the blockchain, the process of clearing and settlement has been democratized, and decentralized.

This accomplishes two things. It removes counterparty risk, so the buyer and seller don't need to trust one another, and it removes third party riskthe owners of bitcoin don't need to trust the computers clearing and settling bitcoin transactions (though bitcoins can still be stolen from an exchange, which is a separate matter).

This decentralization is incredibly valuable to a sanctioned country like North Korea. America's sanctions power flows from the dollar being the world's reserve currency, and the power this gives the American banking system.

Because the US government controls the Fed, which controls the dollar, the US government has sway over a large portion of international transactions. Because doing business with North Korea means getting cut off from access to dollars and the US (and therefore global) banking system, any bank or company wishing to stay above board must avoid North Korea altogether.

Yes, bitcoins can be tracked, especially when sent through regulated exchanges. But it is much harder to track cryptocurrencies than it is to track dollars. And using cryptocurrencies helps North Korea circumvent the American-centric financial system that gives America its sanctions power.

That's why North Korea has long used bitcoin to dodge sanctions. For example, North Korea makes money via hacking, and cryptocurrencies help North Korea launder that money and put it to work for other uses. Aside from talking up moves to create its own digital currency, the rogue state held its first ever blockchain and cryptocurrency conference in April. Meanwhile, Russia, Venezuela, and Iran have a similar interest in cryptocurrenciesall for the purpose of sanctions evasion.

The implication for America is that this cat-and-mouse game makes economic sanctions campaigns hard to sustainand it increases the cost on the US of employing such coercive measures. The more Washington resorts to broad sanctionsnot targeted on specific regime officials or entities but at a foreign economy more generallythe more countries like North Korea, and even our European allies, will develop means of evasion.

Aside from this, sanctions are usually ineffective at achieving their desired goals. But the efficacy of broad sanctions is just one reason why Washington should use the blunt force of broad sanctions far more sparingly than it does.

The other reason? US politicians and officials seem to think that using sanctions is a win-win. They are wrong. Over time, sanctions power wanes. Overusing sanctions, especially broad sanctions, encourages countries to build their own institutions and systems outside of America and the dollar. In this way, sanctions chip away at dollar dominance, threatening to severely reduce US power.

There's already proof of this, and cryptocurrencies used by Russia, Iran, and North Korea are but one piece of this equation. Already, China is buying Iranian oil priced in Chinese renminbi (RMB) rather than petrodollars. Russia, while selling China natural gas, has agreed to issue RMB-denominated bonds. And even Europe has examined ways to escape US secondary sanctions to buy oil from Iran, keeping it in the JCPOA.

None of this should be taken to mean the dollar's dominance will soon endbut it won't be the world's reserve currency forever. Abusing sanctions hastens this inevitable decline.

Broad, "maximum pressure" sanctions erode US dominance. Just like using missiles or troops, there are consequences for the overuse of sanctions, often unseen or difficult to measure. Let's hope Washington policymakers figure this out before it is too late.

Read the rest here:

North Korea's cryptocurrency shows the limits of Trump's 'maximum pressure' - Business Insider

The House Financial Services Committee (HFSC) held a hearing on Tuesday, September 24, 2019 titled Oversight of the Securities And Exchange Commission: Wall Streets Cop On The Beat. For the SEC, this was a chance for all five Commissioners to publicly meet together and sit as witnesses before the Committee in the House of Representatives. For Democrats, this was an opportunity to discuss Facebooks Libra and how the SEC might also be Big Techs Cop On The Beat with respect to Libra and cryptocurrencies.

Chairwoman Maxine Waters (D-CA) has been unrelenting in her concern of Facebooks new Libra project and todays hearing was no exception. The following timeline indicate her rigor and focus on Big Techs move into cryptocurrency:

In the hearing on Tuesday focusing on the SEC as Wall Streets cop on the beat, the Chairwoman wasted no time turning her attention to how the SEC also needed to be Big Techs cop on the beat as well.

Im very concerned about Facebooks plan to create a digital currency Libra and digital wallet Calibra. It appears that Facebook is working to create a global financial system that is intended to rival the U.S. dollar...I hope to hear what steps the SEC has taken is doing to ensure that Libra is appropriately and rigorously regulated.

Chairwoman Rep. Maxine Waters, D-Calif. speaks to a colleague as David Marcus, CEO of Facebook's ... [+] Calibra digital wallet service, testifies before a House Financial Services Committee hearing on Facebook's proposed cryptocurrency on Capitol Hill in Washington, Wednesday, July 17, 2019. (AP Photo/Andrew Harnik)

During the question period, Chairwoman Waters asked whether Chairman Jay Clayton of the SEC had a specific committee, commission or advisory group to focus on Libra. Clayton responded that the SEC does have a group focused on digital assets examining both the potential they have to add efficiency as well as the risks they create. He noted, To the extent that crypto assets would be used to evade ... regulations, I have a real problem with it.

Representative Al Green (D-TX) followed up on the Chairwomans concerns on Libra and provided an overview of how the Libra Reserve will be funded by the Libra Association. Members pay $10 million to join the Libra Association and receive a Libra Investment token, which entitles them to receive dividends. The fact that the Libra Coin is funded from the Libra Investment token potentially means both tokens would be classified as securities by the SEC. Chairman Jay Clayton welcomed Representative Greens offer to write a letter to the SEC with what he feels the proper disposition of Libra should be.

The comments from Representative Green were very similar to the Committee Memorandum provided prior to the hearing by the House Financial Services Committee, where it states, On the matter of whether both Libra tokens are securities, the Committee Memorandum states,However, the offer of Libra could be integrated into the offering of the Libra Investment Token, thereby deeming both securities. The Footnote referenced the SECs complaint against Kik on June 4, 2019 in regards to how the SEC could rule both Libra tokens as securities.

What about the entire blockchain phenomenon? What do you know about that? What work has been done on that? Is there an opportunity to perhaps brief the legislators on the work you are doing on Libra and the work you are doing or all of blockchain.

Republicans Ask For Regulatory Clarity On Digital Assets To Avoid Innovation Flight From America

For the House Financial Services Committee, this was a chance for many Republicans, particularly Congressman Warren Davidson (R-OH), Congressman Ted Budd (R-NC), and Congressman Anthony Gonzalez (R-OH), to ask for regulatory clarity for digital assets so that innovation and entrepreneurship in this new industry will thrive in the U.S. and not be driven to Singapore and the United Kingdom that have provided regulatory clarity for this new asset class.

Congressman Davidson stated that Bill Hinman, Director of the Division of Corporate Finance at the SEC, described an approach to digital assets through facts and circumstances rather than a bright line test, was not sufficient to providing the regulatory clarity needed in the United States for the digital currency space.

UNITED STATES - SEPTEMBER 24: Jay Clayton, center, chairman of the Securities and Exchange ... [+] Commission, testifies with commissioners during the House Financial Services Committee hearing on oversight of the SEC in Rayburn Building on Tuesday, September 24, 2019. SEC commissioners from left are, Allison Herren Lee, Robert J. Jackson, Clayton, Hester M. Peirce, and Elad L. Roisman. (Photo By Tom William/CQ-Roll Call, Inc via Getty Images)

This company by company approach prevents regulatory clarity and it suffers from the charm and inefficiencies of third world power structures.

Representative Davidson argued that this regulator clarity exists in Singapore, United Kingdom, and Switzerland while hundreds of countries in the U.S. await no-action letters. The Congressman went on to applaud Commissioner Hester Peirce in her comment that enforcement is a poor way to announce policy and asked Commissioner Peirce if a law passed by Congress would be a better way to announce policy. Commissioner Peirce responded it is always better to have a clear way as to what is or is not permissible.

Under questioning from Congressman Gonzalez (R-OH), Commissioner Peirce did note the recent SEC framework provided on digital currencies was guidance did muddy the waters.

Commissioner Peirce Suggests A Safe Harbor For Utility Tokens

Commissioner Peirce noted that, in terms of what the SEC needed to do for the digital assets space, that there is work to do to make sure people can develop in compliance with our rules. Chairman Clayton commented to the extent this technology facilitates more access in a protected way, he would not completely shut the door on token technology; however, in his opinion, the ICOs in 2017 were a very poor example of this.

Original post:

Congress Questions The SEC On Libra, Cryptocurrency And The Whole Blockchain Phenomenon - Forbes

The cryptocurrency market is a mixed picture ahead of the US opening. Bitcoin and major altcoins attempted to recover from the recent lows during early Asian hours; however, the upside momentum failed to gain traction and left the coins consolidate losses with bearish bias. The total market capitalization of all digital assets in circulation decreased to $255 billion; an average daily trading volumesettled at $60 billion, while Bitcoin's market dominance edged higher to 68.5%.

EOS announced its first hard fork and implemented a series of major updates; Several exchanges including Binance and Huobi announced the support for the fork. However, the coin failed to react to the positive news

Read more: EOS in retread after the first hard fork implemented on the network

At the time of writing, BTC/USD is hovering around $9,700. The first digital coin has lost over 2% of its value in recent 24 hours and stayed mostly unchanged since the beginning of the day.

Ethereum, the second-largest digital asset with the current market capitalization of $21.3 billion has stayed under pressure. The coin has lost nearly 6% in recent 24 hours and slipped below $200.00 to trade at $196.00 by press time. ETH/USD has recovered from the recent low of $194.60.

Ripple's XRP settled below $0.2700, close to the intraday low registered at $0.2637. The third largest coin with the market value of $11.5 billion has lost 2% in recent 24 hours and stayed unchanged since the beginning of the day.

Originally posted here:

The cryptocurrency market update: Bitcoin consolidates losses, altcoins explore the red territory - FXStreet

Controversial USD-backed stablecoin Tether is now the worlds fourth biggest cryptocurrency, only surpassed by Bitcoin, Ethereum, and Ripple.

Tether, which is actually only 74-percent backed by cash and other assets, garnered a higher share of the market after a major sell-off.

According to CoinMarketCap, Tether currently has a market capitalization of $4.13 billion.

Its trading volume stands at $36 billion over the past 24 hours.

Meanwhile, Bitcoin undoubtedly the worlds most famous cryptocurrency suffered a considerable decrease in terms of both price and market cap.

Although Tether enthusiasts may see this as cause for celebration,I wonder how hardcore cryptocurrency fans will stomach a stablecoin pegged to the US dollar being in the top four its likely theyll find it outright tragic.

Come say hi to the Hard Fork teamat our blockchain event. On October 15-17 in Amsterdam, hear from top experts as they discuss the industrys future.

Published September 25, 2019 15:29 UTC

Read more here:

Dollar-pegged stablecoin Tether is now the worlds 4th biggest cryptocurrency - The Next Web

The central bank of Venezuela is reportedly looking into whether it can store cryptocurrencies in its coffers, Bloomberg reports citing four anonymous individuals close to the matter.

According to the report the banks investigation follows a request by Petroleos de Venezuela SA (PSDV) the countrysstate-owned oil and natural gas company which is apparently looking to send Bitcoin and Ethereum ETH to the central bank.

The institution would then use the cryptocurrency to pay the oil companys suppliers.

Its not known how PSDV came to own Bitcoin and Ethereum, or the value of its holdings, but its not hard to see why it would want to avoid selling its coins on the open market.

Doing so would entail registering with a cryptocurrency exchange and adhering to industry-wide due diligence checks, something which Im sure PSDV is happy to forego.

Employees at the central bank are also reportedly looking at proposals, which if enforced, would see cryptocurrencies count toward international reserves, which hit a 29-year low of $7.9 billionafter the country sold some of its gold reserves in May.

On a purely practical basis it would make sense for Venezuela, which is facing increased international sanctions, to explore the potential use of cryptocurrencies in hope of overcoming its isolation from the global financial system.

In fact, Nicolas Maduros authoritarian regime has been working to get El Petro, a state-run cryptocurrency, off the ground to little avail.

If anything, the governments constant efforts to resort to cryptocurrency serve to highlight just how desperate it is to devise a plan to bypass the sanctions.

In the meantime, though, Venezuelans are really suffering.

Come say hi to theHard Forkteam at ourblockchainevent.On October 15-17 in Amsterdam, hear from top experts as they discuss the industrys future.

Published September 26, 2019 15:52 UTC

More:

Venezuela may have Bitcoin and Ethereum, but its unsure how it can use them - The Next Web

Facebook has revealed more details about its controversial cryptocurrency project, unveiling which currencies will be used to back it.

In a letter to German politician Fabio de Masi, Facebook said that half of the Libra cryptocurrency would be backed by reserves of US dollars, while the euro, Japanese yen,British pound and Singapore dollar would also provide support.

Backing Libra with traditional currencies is designed to help solve the problem of price volatility, which continues to plague cryptocurrencies like bitcoin.

From 15p 0.18 $0.18 USD 0.27 a day, more exclusives, analysis and extras.

But notably absent from the basket of support currencies is the Chinese yuan the currency of the worlds second largest economy.

This may be a strategic decision by Facebook, who may hope that leaving out the yuan will help appease US regulators critical of Chinese economic and trade policy.

On 4 Feb, 2004, 19-year-old Harvard student Mark Zuckerberg launched a website called 'TheFacebook' from his dorm. Within 24 hours the college social network had more than 1,000 users

Wikimedia Commons

Within one week of launching, fellow Harvard students Cameron Winklevoss, Tyler Winklevoss and Divya Narendra accused Zuckerberg of stealing their idea. It would be four years later when the resulting lawsuit was finally settled

The social network finally opened it platform to everyone on 26 September, 2006. The move proved the catalyst in supercharging the site's already explosive growth

PA

Yahoo offered $1 billion to buy Facebook in September 2006 but Zuckerberg turned it down. 'I dont know what I could do with the money,' Zuckerberg reportedly said. 'Id just start another social networking site'

Reuters

In September 2009, almost five years since the site launched, Facebook turned a profit for the first time

Getty Images/iStockphoto

Facebook overtook MySpace in 2010 to become the worlds most popular social network

In 2011, Google launched its own social network that it hoped would knock Facebook from its perch. Despite its initial success, Google+ ultimately failed and will be shut down completely in 2019

Getty

On 18 May, 2012, Facebook went public. The initial public offering raised $16 billion the third largest in US history

Facebook acquired Instagram in April 2012 for $1 billion, consolidating its position as the world's leading social network

Reuters

On 4 October, 2012, Zuckerberg announced that Facebook had hit 1 billion users. 'If youre reading this: thank you for giving me and my little team the honour of serving you,' he wrote in a blog post

Getty Images

In February 2014 Facebook acquired the messaging app WhatsApp for $19.3 billion

REUTERS/Dado Ruvic

In June 2017, Facebook passed the 2 billion user milestone

REUTERS/Dado Ruvic

On 17 March 2018, news broke that UK firm Cambridge Analytica had harvested data from around 87 million Facebook users for the purpose of political profiling in the build up to the 2016 US presidential elections

Shutterstock

Despite the scandals and subsequent #DeleteFacebook campaign, Facebook posted record profits just before its 15th anniversary, the equivalent of $7.37 from each of its 2.32 billions users

iStock/Independent

A study found that people are happier when they dont use Facebook, adding to mounting evidence surrounding the impact social media has on mental health

Rex Features

On 4 Feb, 2004, 19-year-old Harvard student Mark Zuckerberg launched a website called 'TheFacebook' from his dorm. Within 24 hours the college social network had more than 1,000 users

Wikimedia Commons

Within one week of launching, fellow Harvard students Cameron Winklevoss, Tyler Winklevoss and Divya Narendra accused Zuckerberg of stealing their idea. It would be four years later when the resulting lawsuit was finally settled

The social network finally opened it platform to everyone on 26 September, 2006. The move proved the catalyst in supercharging the site's already explosive growth

PA

Yahoo offered $1 billion to buy Facebook in September 2006 but Zuckerberg turned it down. 'I dont know what I could do with the money,' Zuckerberg reportedly said. 'Id just start another social networking site'

Reuters

In September 2009, almost five years since the site launched, Facebook turned a profit for the first time

Getty Images/iStockphoto

Facebook overtook MySpace in 2010 to become the worlds most popular social network

In 2011, Google launched its own social network that it hoped would knock Facebook from its perch. Despite its initial success, Google+ ultimately failed and will be shut down completely in 2019

Getty

On 18 May, 2012, Facebook went public. The initial public offering raised $16 billion the third largest in US history

Facebook acquired Instagram in April 2012 for $1 billion, consolidating its position as the world's leading social network

Reuters

On 4 October, 2012, Zuckerberg announced that Facebook had hit 1 billion users. 'If youre reading this: thank you for giving me and my little team the honour of serving you,' he wrote in a blog post

Getty Images

In February 2014 Facebook acquired the messaging app WhatsApp for $19.3 billion

REUTERS/Dado Ruvic

In June 2017, Facebook passed the 2 billion user milestone

REUTERS/Dado Ruvic

On 17 March 2018, news broke that UK firm Cambridge Analytica had harvested data from around 87 million Facebook users for the purpose of political profiling in the build up to the 2016 US presidential elections

Shutterstock

Despite the scandals and subsequent #DeleteFacebook campaign, Facebook posted record profits just before its 15th anniversary, the equivalent of $7.37 from each of its 2.32 billions users

iStock/Independent

A study found that people are happier when they dont use Facebook, adding to mounting evidence surrounding the impact social media has on mental health

Rex Features

Facebook says it will launch Libra at some point in 2020, however it has faced criticism from financial policy makers and regulators since being unveiled earlier this year.

French finance minister Bruno Le Maire said earlier this month that Libras development would be blocked in Europe as itposes a threat to monetary sovereignty.

Politicians in the UK expressed similar concerns earlier this year, claiming Libra represents Facebooks latest attempt to turn itself into its own country.

Through itsCalibra subsidiary, Facebook has teamed up with some of the worlds biggest companies and financial institutions to develop and roll out Libra, including PayPal, Mastercard and Visa.

This collective of billion-dollar corporations, combined with Facebook's vast reach to billions of users around the world, is why regulators view it as such a threat to the established order.

Facebook has consistently claimed that it welcomes feedback from global regulators and will work with them to address any concerns.

A Libra spokesperson recently toldThe Independent: "We welcome this scrutiny and have deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design."

Read the rest here:

Facebook reveals which currencies will back Libra cryptocurrency - The Independent

Reading Time: 4 minutesSectors in which cryptocurrency is being adopted

When the largest ever Bitcoin transaction took place in early September, no sooner had the news of it reached the media than speculation began about who was involved. The single transaction consisting of 94,504 Bitcoins was the equivalent of $1 billion (at its then price) and represented around 0.5 percent of all of the cryptocurrency currently in circulation.

As an aside, its also worth noting that this is only the biggest transaction of its kind when measured in its dollar value. Back in 2011, a transaction of 550,000 Bitcoins was recorded but, at the time, this was only worth around $1.6 million.

While the identities of the parties involved in this latest transaction must remain shrouded in anonymity, it has thrown up some interesting suggestions that cryptocurrencies, or at least the blockchain that facilitates theyuse, may be the way ahead for a number of sectors who need to transfer money quickly and securely.

The benefits of using cryptocurrencies are often overshadowed by the reputation they have for not being totally above-board and legitimate;a reputation that is hardly enhanced byincidents such as thefts from currency exchanges in which the perpetrators are just as hard to locate as the parties in this latest, legitimate, transaction.

But its this combination of anonymity added to the speed at whichtransactions can be made that makes cryptocurrencies a potentially very interesting proposition. So interesting, in fact, that even Facebook is set to launch its own cryptocurrency called Libra.

Facebook has pushed forward the development of #Libra #cryptocurrency and reportedly revealed the percentage breakdown of a basket of global currencies that will underpin Libra. (Source: https://t.co/xHGTNn6tLq) pic.twitter.com/SpyYIgIpdD

DigiFinex Exchange (@DigiFinex) September 24, 2019

So, lets take a look at three particular sectors that could potentially benefit a great deal if they started to make at least some of their transactions via crypto or blockchain tech.

Its certainly no secret that, while initially being extremely skeptical about cryptocurrencies, the banking industry has been quick to see the potential in using blockchain technology not just for currency transfer, but for all kinds of information exchange. Its thought that more than 40 of the worlds leading banks are actively developing blockchain solutions attracted by the lower costs, greater security and increased speeds that they promise to deliver. Another leading financial institution that is known to beembracing blockchain is JP Morgan who have published several research papers on the subject.

Online gaming has been one of the fastest-growing sectors of the last couple of decades and whose revenue is projected to almost double in size from a 2017 figure of $45.8 billion to $94.4 billion by 2024. Its a sector that has been driven by innovation and the embracing of new technology, so theres every reason to suppose that cryptocurrency transactions could become the norm for many of the operators. Already some of the bigger operators offer a huge range of payment options to players, including digital options like PayPal and Neteller. But, particularly for fast-paced games like online roulette and blackjack, the speed of blockchain transactions could be of real benefit for players and hostsalike.

Anyone whos ever bought or sold real estate will agree on one thing; its a process thats slow, complex and often frustrating. Its calling out for something thats going tostreamline the whole process for the buyer and selleralike. Step forward blockchain. This ticks all the boxes, whether its for the quick and secure transfer of legal documents or the paying of funds in a trusted and secure way.

Buying and selling are also processes in which many agents and intermediaries seem to want to take their cut along the way while unfairly providing a slow-moving service. Both are issues that could disappear at a stroke, although the intermediaries in question may not be too happy about it.

However, while all these examples may seem like the ideal candidates for cryptocurrency and blockchain transactions, there are also several considerations. For example, the fluctuating value of the cryptocurrencies will always be a concern until they eventually stabilize. Theres also the question of the dubious reputation the currencies have, but with wider acceptance, this will surely change. Furthermore, the fact that established financial institutions are also coming around to the benefits of blockchain transactions can only help in this respect.

So, expect to see more and more transactions of the kind, although possibly not of this size, that are sure to soon be hitting the headlines. And, before long, you might even be making one yourself.

Go here to see the original:

Are Cryptocurrency Transactions about to Hit the Mainstream? - BOSS Magazine

BitHarp Group Limited, an experienced manufacturer of crypto mining hardware, is now a favorite name amongst individuals interested in profitable crypto mining from the comforts of their home. The companys recently launched products Lyre Miner and Harp Miner have initiated a new age in cryptocurrency mining, offering low heat and noise mining hardware that can be placed within limited spaces at home. Users can start earning profits immediately as the pre-configured mining rigs just require plugging in, choosing the preferred coin, and entering the pool data.

The most attractive benefit of Lyre Miner and Harp Miner is the ability of these products to generate quick return on interest for all users. This has been made possible by delivering high hash rate powers that are second to none in the market. Hash rate is a general measure of the processing power of crypto mining rigs. For the miners, a higher hash rate means increased profit-making opportunity and receiving block reward. Moreover, Lyre Miner and Harp Miner support profitability with their low energy consumption.

Read More: Cybercrime Damage Expected to Hit $6 Trillion Mark Annually by 2021

The hash rate powers delivered by Lyre Miner and Harp Miner are mentioned below.

Bitcoin: 335 TH/s (Lyre Miner) & 2000 TH/s (Harp Miner)

Litecoin: 55 GH/s (Lyre Miner) & 300 GH/s (Harp Miner)

Ethereum: 14 GH/s (Lyre Miner) & 75 GH/s (Harp Miner)

Dash: 9 TH/s (Lyre Miner) & 50 TH/s (Harp Miner)

Read More:Bitcoins New Normal Bottom Is $10,000: DeVere CEO

BitHarp is one of the earliest companies in this market to create products that are suitable for casual crypto enthusiasts mining from their home without much knowledge or experience, said Daniel Cox, Engineering Director from BitHarp. Lyre Miner and Harp Miner were designed to make crypto mining easy and affordable for them. It is a great pleasure for us to see many beginners earning profits using BitHarp mining rigs from home.

Read More:Amazon Brings AI Performance to the Cloud with NVIDIA T4 GPUs

Continue reading here:

Best ROI in Home Cryptocurrency Mining with BitHarp - AiThority

Justin Sun, the founder of blockchain platform TRON, and current CEO of BitTorrent, is appearing a little desperate for the attention of US Democratic presidential candidate Andrew Yang.

Sun reinforced his desire to work with Yang to make Universal Basic Income (UBI) a reality during a livestream on Tuesday, just after promising to reschedule his $4.6 million charity lunch with Warren Buffet very soon.

Yangs plans to establish a UBI wererevealed on September 12, when he announced plans to give away $120,000 through the course of the next year as part of a pilot program for this key policy plan.

One day after Yangs announcement, Sun seized on the opportunity to latch onto Yangs popularity by signalling his desire to work with the presidential candidate to help him fulfil his pledge.

The entrepreneur is seemingly looking to position himself as a cryptocurrency luminaire on a mission: becoming the link between the world of digital currencies and institutional investors, but really, its seems to be pure marketing based on latching onto UBI hype.

Suns relentless self-promotion has surely helped him grow his own profile far beyond the digital currency space (for better or worse), but its fast becoming tiring for the rest of us.

Want more Hard Fork?Join usin Amsterdam on October 15-17 to discuss blockchain and cryptocurrency with leading experts.

Published September 26, 2019 10:12 UTC

More here:

Justin Sun seeks Andrew Yangs attention with another cryptocurrency UBI pitch - The Next Web

Algorand, the much-hyped project of Silvio Micali, a professor at MIT and a recipient of the Alan Turing Award, promised speed, security, and a new proof-of-stake mechanism.

But since its native token, the ALGO, launched in June, it has dropped like a stone. The coin launched at a high price of $3.28, saw an initial sell-off in the first few days and then slumped over the long term down to just $0.20. Thats a drop of 94 percent. In the last 24 hours alone, ALGO fell 27 percent. So what happened?

Well it largely seem to be bad timing. The crypto markets peaked in June, and then have been on a downhill slide since then. And the pain was exacerbated yesterday when the crypto markets took a sudden turn for the worse.

Its possible that its fundraising method may have had a part to play too. Many cryptocurrencies raised all their funds via ICOs (whether legally or in violation of securities law) resulting in a bunch of people invested in the coin, talking about it on social media, in short, a community.

Instead, Alogrand only raised half of its funds through an ICO that brought in $60 million after a previous funding round delivered $66 million. This may explain why there was very little grassroots movement around the ALGO, and an eerie silence on social media.

Worse, not even an innovative real-world use case could save the day. Earlier this month, real estate platform Assetblock tokenized $60m worth of shares in its hotels on the Algorand blockchain. But the price has fallen 40 percent since then. Is there any hope left for the nascent coin?

Read more from the original source:

Algorand cryptocurrency lost 94% of its value in its first three months - Decrypt

Nigerian cryptocurrency startup Satowallet has exit-scammed, making off with $1 million of its users money, reports International Business Times.

According to company CEO Samuel Ben, however, the firm isnt responsible for those losses. Instead, he says Telegram scammers tricked users into handing over access to their funds during an extended maintenance period.

Ben also claimed the pesky scammers returned to steal more funds when Satowallet attempted to establish Know-Your-Customer policies earlier this year.

Eventually, he firmly passed the buck to its hosting provider OVH, publishing rather peculiar claims in a blog. Unfortunately for Ben, Satowallets Medium page has been suspended, pending investigation, presumably for suspicious behavior.

A cached version of the post haphazardly reads: We also accused OVH of fraud and trying to steal our wallet servers from us. We reached out to OVH team [sic] again and got a heart breaking news and without any explanations after we accused the of stealing users funds from our server with them [sic].

It continues: At this point they stopped replying our messages and refused to give any further explanations. This was the point that i [sic] had to make a tweet to users that we are having issues that is beyond our control as we could do nothing as developments as it seems like we have been scammed by the server company OVH.

Ben then claimed that lawsuits will be filed against OVH on behalf of Satowallet, and that 70 percent of his staff had resigned as a result of the situation.

It [sic] hard for me to even believe what happened, therefore i [sic] decided to seek merger while our lawyers are working to track down OVH team as they were not responding on any social media or contact, added Ben.

Affected users have been quick to call bullshit on the story via Twitter, pointing out that hosting providers shouldnt have access to the private keys of users, so the cryptocurrencyshould be recoverable if Satowallet was a legitimate operation.

Hard Fork has reached out to Satowallets hosting provider and will update this piece should we receive a reply.

Cryptocurrency exit scams are frustratingly common. You can read up on how to spot one here, and also discover some of the more ludicrous plots of the past, here.

Published September 27, 2019 12:58 UTC

Read more:

The sad and peculiar case of Satowallets alleged $1M cryptocurrency exit scam - The Next Web