The Almighty Buck

Is Cryptocurrency Threatening Earnings at Bank of America? (thenextweb.com) 35

An anonymous reader quotes The Next Web: One of the world's largest financial institutions admitted in its annual report that cryptocurrency is a looming threat to its business model. According to a report filed with the SEC by Bank of America, "Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies. Increased competition may negatively affect our earnings by creating pressure to lower prices or credit standards on our products and services requiring additional investment to improve the quality and delivery of our technology and/or reducing our market share, or affecting the willingness of clients to do business with us."
Bitcoin

Bitcoin Exchange Accidentally Allowed Customers To Buy Coins For $0 (cnbc.com) 44

AmiMoJo writes: "A system glitch at cryptocurrency exchange site Zaif enabled users to obtain digital money for free, with one apparently "purchasing" Bitcoin valued at $20,000,000,000,000 and then attempting to cash in on it..." according to the Japanese newspaper Asahi Shimbun. "The glitch, which lasted for 18 minutes from 5:40 p.m. to 5:58 p.m. on Feb. 16, affected Zaif's price calculation system, enabling customers to buy cryptocurrencies for nothing."

CoinDesk adds that "At least one customer attempted to resell their bitcoin, but the large amount of the cryptocurrency offered soon drew attention even outside the exchange. The firm later cancelled the transactions and corrected the users' balances. However, a source suggests that the correction is still being agreed with one of the seven users who attempted to transfer the free bitcoin away from the Zaif platform."

Bitcoin

Poland's Central Bank Accused of Paying YouTubers To Make Videos That Attack the Legitimacy of Cryptocurrencies (businessinsider.com) 75

Poland's central bank has been accused of hiring YouTubers to "start a smear campaign" against cryptocurrencies in the country, Business Insider reports. From the story: According to Business Insider Poland, the Narodowy Bank Polski spent around 91,000 zloty ($27,300) on a marketing campaign designed to attack the legitimacy of cryptocurrencies. The money was spent on platforms including Google and Facebook, but was also used to pay a Polish Youtube partner network called Gamellon. The Gamellon network reportedly represents many of Poland's top YouTubers, including popular prankster Marcin Dubiel. In December, Dubiel published a video titled "STRACILEM WSZYSTKIE PIENIADZE?!" -- which loosely translates as "I LOST ALL MY MONEY?!" In the satirical video, Dubiel invests all his money in a fake cryptocurrency called Dubielcoin, gets rich, but then sees its value plunge and loses everything. It has racked up over 500,000 views.
Bitcoin

Venezuela Launches Oil-Backed Cryptocurrency (bbc.co.uk) 176

Venezuela has launched a cryptocurrency backed by oil in an attempt to bypass tough economic sanctions imposed by the U.S. government. "The 'Petro' is intended to bolster the country's crumbling economy, which has been suffering from hyperinflation and devaluation for years," reports the BBC. "Venezuela claims it is the world's first sovereign cryptocurrency." From the report: Critics say the move is a desperate attempt by Caracas to raise cash at a time when Venezuela lacks the ability to repay its $150 billion of foreign debt. Opposition leaders said the sale constitutes an illegal issuing of debt, while the US Treasury Department warned it may violate sanctions imposed last year. The government says the currency aims to circumvent US sanctions on the economy. President Nicolas Maduro has said each tokens will be backed by a barrel of Venezuelan crude. The Latin American country has the world's largest proven oil reserves. A total of 100 million Petros will be sold, with an initial value set at $60, based on the price of a barrel of Venezuelan crude in mid-January. The official website published a guide to setting up a virtual wallet in which to hold the cryptocurrency, but did not provide a link for actually doing so on Tuesday.
Communications

FCC Orders a Brooklyn Man To Turn Off His Bitcoin Miner Because It Was Interfering With T-Mobile's Wireless Network (arstechnica.com) 207

A New York City resident was ordered to turn off his bitcoin miner after the Federal Communications Commission discovered that it was interfering with T-Mobile's wireless network. From a report: After receiving a complaint from T-Mobile about interference to its 700MHz LTE network in Brooklyn, New York, FCC agents in November 2017 determined that radio emissions in the 700MHz band were coming from the residence of a man named Victor Rosario. "When the interfering device was turned off the interference ceased," the FCC's enforcement bureau told Rosario in a "Notification of Harmful Interference" yesterday. "You identified the device as an Antminer S5 Bitcoin Miner. The device was generating spurious emissions on frequencies assigned to T-Mobile's broadband network and causing harmful interference." The FCC told Rosario that continued interference with T-Mobile's network while operating the device would be a violation of federal laws "and could subject the operator to severe penalties, including, but not limited to, substantial monetary fines, in rem arrest action to seize the offending radio equipment, and criminal sanctions including imprisonment."
Security

Hackers Hijacked Tesla's Amazon Cloud Account To Mine Cryptocurrency 29

An unidentified hacker or hackers broke into a Tesla-owned Amazon cloud account and used it to "mine" cryptocurrency, security researchers said. The breach also exposed proprietary data for the electric carmaker. From a report: The researchers, who worked for RedLock, a 3-year-old cybersecurity startup, said they discovered the intrusion last month while trying to determine which organization left credentials for an Amazon Web Services (AWS) account open to the public Internet. The owner of the account turned out to be Tesla, they said. "We weren't the first to get to it," Varun Badhwar, CEO and cofounder of RedLock, told Fortune on a call. "Clearly, someone else had launched instances that were already mining cryptocurrency in this particular Tesla environment." The incident is the latest in a string of so-called cryptojacking attacks, which involve thieves hijacking unsuspecting victims' computers to generate virtual currencies like Bitcoin. The schemes have seen a resurgence in popularity as cryptocurrency prices have soared over the past year. In a statement, Tesla said, "We maintain a bug bounty program to encourage this type of research, and we addressed this vulnerability within hours of learning about it. The impact seems to be limited to internally-used engineering test cars only, and our initial investigation found no indication that customer privacy or vehicle safety or security was compromised in any way."
Bitcoin

Salon Magazine Mines Monero On Your Computer If You Use an Ad Blocker (bbc.com) 314

dryriver shares a report from BBC: News organizations have tried many novel ways to make readers pay -- but this idea is possibly the most audacious yet. If a reader chooses to block its advertising, U.S. publication Salon will use that person's computer to mine for Monero, a cryptocurrency similar to Bitcoin. Creating new tokens of a cryptocurrency typically requires complex calculations that use up a lot of computing power. Salon told readers: "We intend to use a small percentage of your spare processing power to contribute to the advancement of technological discovery, evolution and innovation." The site is making use of CoinHive, a controversial mining tool that was recently used in an attack involving government websites in the UK, U.S. and elsewhere. However, unlike that incident, where hackers took control of visitors' computers to mine cryptocurrency, Salon notifies users and requires them to agree before the tool begins mining.
Businesses

Coinbase is Erratically Overcharging Some Users and Emptying Their Bank Accounts 143

A growing number of Coinbase customers are complaining that the cryptocurrency exchange withdrew unauthorized money out of their accounts. From a report: In some cases, this drained their linked bank accounts below zero, resulting in overdraft charges. In a typical anecdote posted on Reddit, one user said they purchased Bitcoin, Ether, and Litecoin for a total of $300 on February 9th. A few days later, the transactions repeated five times for a total of $1,500, even though the user had not made any more purchases. That was enough to clear out this user's bank account, they said, resulting in fees. [...] Coinbase representatives have been responding to similar complaints on Reddit for about two weeks, but the volume of complaints seems to have spiked over the last 24 hours. Similar complaints have popped up on forums and Twitter.
Bitcoin

Energy Riches Fuel Bitcoin Craze For Speculation-shy Iceland (apnews.com) 99

Iceland is expected to use more energy "mining" bitcoins and other virtual currencies this year than it uses to power its homes. From a report: With massive amounts of electricity needed to run the computers that create bitcoins, large virtual currency companies have established a base in the North Atlantic island nation blessed with an abundance of renewable energy. The new industry's relatively sudden growth prompted lawmaker Smari McCarthy of Iceland's Pirate Party to suggest taxing the profits of bitcoin mines. The initiative is likely to be well received by Icelanders, who are skeptical of speculative financial ventures after the country's catastrophic 2008 banking crash. "Under normal circumstances, companies that are creating value in Iceland pay a certain amount of tax to the government," McCarthy told The Associated Press. "These companies are not doing that, and we might want to ask ourselves whether they should."
Education

Cryptocurrency Classes Are Coming To Campus (nytimes.com) 81

While the price of Bitcoin has dropped since Christmas, the virtual currency boom has shown no signs of cooling off in the more august precincts of America's elite universities. The New York Times: Several top schools have added or are rushing to add classes about Bitcoin and the record-keeping technology that it introduced, known as the blockchain. Graduate-level classes this semester at Carnegie Mellon, Cornell, Duke, the Massachusetts Institute of Technology and the University of Maryland, among other places, illustrate the fascination with the technology across several academic fields, and the assumption that it will outlast the current speculative price bubble. "There was some gentle ribbing from my colleagues when I began giving talks on Bitcoin," said David Yermack, a business and law professor at New York University who offered one of the first for-credit courses on the topic back in 2014. "But within a few months, I was being invited to Basel to talk with central bankers, and the joking from my colleagues stopped after that." For a class this semester, Mr. Yermack originally booked a lecture hall that could fit 180 students, but he had to move the course to the largest lecture hall at N.Y.U. when enrollment kept going up. He now has 225 people signed up for the class.
Businesses

Hackers Hijack Government Websites To Mine Crypto-Cash (bbc.com) 48

BBC reports: The Information Commissioner's Office (ICO) took down its website after a warning that hackers were taking control of visitors' computers to mine cryptocurrency. Security researcher Scott Helme said more than 4,000 websites, including many government ones, were affected. He said the affected code had now been disabled and visitors were no longer at risk. The ICO said: "We are aware of the issue and are working to resolve it." Mr Helme said he was alerted by a friend who had received a malware warning when he visited the ICO website. He traced the problem to a website plug-in called Browsealoud, used to help blind and partially sighted people access the web. The cryptocurrency involved was Monero -- a rival to Bitcoin that is designed to make transactions in it "untraceable" back to the senders and recipients involved. The plug-in had been tampered with to add a program, Coinhive, which "mines" for Monero by running processor-intensive calculations on visitors' computers. The Register: A list of 4,200-plus affected websites can be found here: they include The City University of New York (cuny.edu), Uncle Sam's court information portal (uscourts.gov), Lund University (lu.se), the UK's Student Loans Company (slc.co.uk), privacy watchdog The Information Commissioner's Office (ico.org.uk) and the Financial Ombudsman Service (financial-ombudsman.org.uk), plus a shedload of other .gov.uk and .gov.au sites, UK NHS services, and other organizations across the globe.
Bitcoin

Russian Nuclear Scientists Arrested For 'Bitcoin Mining Plot' (bbc.com) 84

Russian security officers have arrested several scientists working at a top-secret Russian nuclear warhead facility for allegedly mining crypto-currencies, BBC reported Friday, citing local media. From the report: The suspects had tried to use one of Russia's most powerful supercomputers to mine Bitcoins, media reports say. The Federal Nuclear Centre in Sarov, western Russia, is a restricted area. The centre's press service said: "There has been an unsanctioned attempt to use computer facilities for private purposes including so-called mining." The supercomputer was not supposed to be connected to the internet -- to prevent intrusion -- and once the scientists attempted to do so, the nuclear centre's security department was alerted. They were handed over to the Federal Security Service (FSB), the Russian news service Mash says. "As far as we are aware, a criminal case has been launched against them," the press service told Interfax news agency.
Bitcoin

Arizona Introduces Bill That Would Allow Residents To Pay Taxes In Bitcoin (investopedia.com) 109

In a bid to attract businesses involved in blockchain and cryptocurrencies, Arizona lawmakers have proposed a bill that would allow the state's citizens to pay their taxes in bitcoin. "Arizona State Rep. Jeff Weninger, who introduced the bill, said it was a signal to everyone in the United States, and possibly throughout the world, that Arizona was going to be the place to be for blockchain and digital currency technology in the future," reports Investopedia. From the report: Weninger, a Republican, also cited the ease of making online payments through the cryptocurrency "while you're watching television," as another reason. But he did not divulge much detail about the implementation of such a system. That might be the reason why Weninger faces an uphill battle in getting the bill approved by the state legislature. Bitcoin's price volatility is already being cited as a possible roadblock to implementing such a measure by state legislators. Arizona state senator Steve Farley, a Democrat who's running for governor, said the bill puts the "volatility burden" of bitcoin's price on taxpayers who make payments in U.S. dollars. "It would mean that the money goes to the state and then the state has to take responsibility of how to exchange it," Farley said.
Bitcoin

Bitcoin Won't Be the Dark Web's Top Cryptocurrency For Long (cnet.com) 79

Bitcoin has essentially become the poster child for cryptocurrencies, and that's a problem for cybercriminals dealing on the dark web. From a report: Researchers from Recorded Future, a threat intelligence company, looked through 150 of the dark web's top marketplaces and forums and found that bitcoin's boom is driving shady characters away from the cryptocurrency. The rise of bitcoin has brought cryptocurrency -- digital alternatives to government-issued money -- to the mainstream, enticing people who are looking to get rich quick. Last December, bitcoin hit its all-time high at nearly $20,000, but it has since slumped and as of Thursday is trading at a little over the $8,000 mark. But before it was a massive investment that millionaires bought, it was the dark web's currency of choice, thanks to its decentralized and anonymous structure.
Twitter

Twitter Bans Notorious Bitfinex and Tether Critic Bitfinex'ed (thenextweb.com) 73

Twitter has officially suspended Bitfinex'ed -- a notorious internet sleuth who has long speculated that popular exchange desk Bitfinex has quietly been printing its dollar-pegged Tether digital tokens out of thin air, a move that could lead to the collapse of Bitcoin and perhaps even the entire market, The Next Web reports. From the report: In an email to TNW, Bitifinex'ed said that Twitter has yet to clarify the reasons for the suspension. "This account has been suspended," the message reads. It is worth noting that in addition to the claims made against Bitfinex and Tether, Bitfinex'ed has previously accused other well-known figures within the crypto-community of foul play. Indeed, earlier in January the anonymous investigator suggested Litecoin Charlie Lee might have engaged in insider trading during his time at Coinbase. Lee ultimately denied these claims. In the aftermath of this altercation, waves of Lee supporters took to Twitter to condemn the premises of the piece Bitfinex'ed authored.
Bitcoin

Get Ready For Most Cryptocurrencies to Hit Zero, Goldman Says (bloomberg.com) 276

An anonymous reader shares a report: The tumble in cryptocurrencies that erased nearly $500 billion of market value over the past month could get a lot worse, according to Goldman Sachs Group's global head of investment research. Most digital currencies are unlikely to survive in their current form, and investors should prepare for coins to lose all their value as they're replaced by a small set of future competitors, Goldman's Steve Strongin said in a report dated Feb. 5. While he didn't posit a timeframe for losses in existing coins, he said recent price swings indicated a bubble and that the tendency for different tokens to move in lockstep wasn't rational for a "few-winners-take-most" market. "The high correlation between the different cryptocurrencies worries me," Strongin said. "Because of the lack of intrinsic value, the currencies that don't survive will most likely trade to zero."
Bitcoin

Senate Cryptocurrency Hearing Strikes a Cautiously Optimistic Tone (techcrunch.com) 44

An anonymous reader quotes a report from TechCrunch: In a hearing today before the Senate Banking Committee, Securities and Exchange Commission Chairman Jay Clayton and Commodity Futures Trading Commission Chairman Christopher Giancarlo opened up about what the near-term U.S. regulatory fate of cryptocurrency might look like. In a week of plunging prices and bad news, the hearing struck a tone that coin watchers could reasonably interpret as surprisingly optimistic. Over the course of the open hearing, Clayton and Giancarlo traded testimony over what can be regulated, what should be regulated and how, while offering a broader outlook on the long-term future of virtual currency markets and blockchain tech.

The testimony drew a useful distinction among three pillars of the virtual currency ecosystem (for lack of a better unifying term): cryptocurrencies, "a replacement for dollars;" ICOs, "like a stock offering;" and distributed ledger technologies, or the technical framework generally known as blockchain. Throughout the hearing, on the SEC side, Clayton struck a relatively solemn tone focused on ICO fraud concerns, while the CFTC's Giancarlo came across as genuinely enthusiastic and curious about the emerging market.
When asked about the intrinsic value of cryptocurrency, Clayton said: "There are a lot of smart people who think there's something to the value of cryptocurrency and the international exchange and I'm not seeing those benefits manifesting themselves in the market yet. I look at this from the perspective of Main Street investors and they should understand that."

On ICOs as a security: "I believe every ICO I've seen is a security... You can call it a coin but if it functions as a security, it is a security... Those who engage in semantic gymnastics or elaborate re-structuring exercises in an effort to avoid having a coin be a security are squarely in the crosshairs of our enforcement provision."
Bitcoin

Man Sues T-Mobile For Allegedly Failing To Stop Hackers From Stealing His Cryptocurrency (theverge.com) 133

Over the weekend, a lawsuit was filed against T-Mobile claiming that the company's lack of security allowed hackers to enter his wireless account last fall and steal cryptocoins worth thousands of dollars. "Carlos Tapang of Washington state accuses T-Mobile of having 'improperly allowed wrongdoers to access' his wireless account on November 7th last year," reports The Verge. "The hackers then cancelled his number and transferred it to an AT&T account under their control. 'T-Mobile was unable to contain this security breach until the next day,' when it finally got the number back from AT&T, Tapang alleges in the suit, first spotted by Law360." From the report: After gaining control of his phone number, the hackers were able to change the password on one of Tapang's cryptocurrency accounts and steal 1,000 OmiseGo (OMG) tokens and 19.6 BitConnect coins, Tapang claims. The hackers then exchanged the coins for 2.875 Bitcoin and transferred it out of his account, the suit states. On November 7th, the price of Bitcoin was $7,118.80, so had the hackers cashed out then, they would have netted a profit of $20,466.55. Tapang goes on to say, "After the incident, BTC price reached more than $17,000.00 per coin," but given the volatility of bitcoin prices, the hackers may not have benefited from the soar.

The suit alleges T-Mobile is at fault partly because the carrier said it would add a PIN code to Tapang's account prior to the incident, but didn't actually implement it. Tapang also states that hackers are able to call T-Mobile's customer support multiple times to gain access to customer accounts, until they're able to get an agent on the line that would grant them access without requiring further identity verification. The complaint also lists several anonymous internet users who have posted about similar security breaches to their own T-Mobile accounts.

Bitcoin

US Regulators To Back More Oversight of Virtual Currencies (reuters.com) 121

Digital currencies such as bitcoin demand increased oversight and may require a new federal regulatory framework, the top U.S. markets regulators will tell lawmakers at a congressional hearing on Tuesday. From a report: Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), and Jay Clayton, chairman of the Securities and Exchange Commission (SEC), will provide testimony to the Senate Banking Committee amid growing global concerns over the risks virtual currencies pose to investors and the financial system. Giancarlo and Clayton will say a patchwork of rules for cryptocurrency exchanges may need to be reviewed in favour of a rationalised federal framework, according to prepared testimony published on Monday. Congressional sources told Reuters the hearing will largely be a fact-finding exercise focusing on the powers of the SEC and CFTC to oversee cryptocurrency exchanges, how the watchdogs can protect investors from volatility and fraud, and the risks posed by cyber criminals intent on stealing digital tokens.
Bitcoin

Five Major Credit Cards Are Now Blocking Cryptocurrency Purchases (cnbc.com) 253

An anonymous reader quotes CNBC: J.P. Morgan Chase, Bank of America and Citigroup said Friday they are no longer allowing customers to buy cryptocurrencies using credit cards. "At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved," a J.P. Morgan Chase spokesperson said in a statement to CNBC. "We will review the issue as the market evolves."

A Bank of America spokesperson also said in an email that the bank has decided to decline credit card purchases of cryptocurrencies. Citigroup said in a statement that it has "made the decision to no longer permit credit card purchases of cryptocurrency. We will continue to review our policy as this market evolves." Earlier in January, Capital One Financial said it has decided to ban cryptocurrency purchases with its cards. Discover Financial Services has effectively prohibited cryptocurrency purchases with its credit cards since 2015.

Slashdot Top Deals