US DOJ Incites Russians Who Are Claimed to Have Used Cryptocurrencies to Fund Disinformation Campaign

Colleagues, by now it should come as no surprise that the US government has filed charges in absentia against seven Russian nationals suspected of engineering a disinformation effort to influence (read the indictment). The defendants are alleged employees of Russia’s infamous GRU Main Intelligence Directorate. In addition, it is no surprise that the defendants purportedly used Bitcoin and other un-named cryptocurrencies to fund their illicit tactics. Bottom line: The goal of this campaign was to influence and undermine the credibility of US-based sports “anti-doping” entities including the US Anti-Doping Agency (USADA), which claims Russian illegally, allows doping among its athletes to boost their performance and stature. Cryptocurrencies, chief among them being Bitcoin, were the means used to fund these illegal actions. Why use cryptocurrencies? Two reasons emerge. First, the defendants are believed to have “mined” their own digital assets (akin to printing their own money). Second, the lack of transparency when acquiring computers and related infrastructure to implement their disinformation efforts to move public opinion in their favor. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Will a bug in Bitcoin’s software lead to double-spend exploits of Altcoins which use BTC’s public code?

Colleagues, a recent bug in Bitcoin’s public code has led to the illicit printing of some 235 million Pigeoncoins. Although Bitcoin has released a software patch which altcoins, exchanges and mining pools can install to mitigate this bug, the specter of crypto double-spend cyber-attacks looms large. Double spending is a problem unique to digital currencies because digital information can be reproduced with relative ease. Bitcoin transactions take some time to verify because the process involves intensive computational power and complex algorithms, which can be measured in seconds or milliseconds. Two fundamental questions emerge. First, just how many exchanges, pools and altcoins use BTC’s public code? Given the size, complexity and global diversity of the crypto ecosystem this question is almost impossible to answer. Second, how many of these crypto entities will expeditiously implement the software patch before cyber criminals can perform double-spend transactions? Sadly, this question is equally difficult to answer. When in doubt we once again offer our baseline guidance: Stay with established (aka Tier 1) currencies, exchanges and pools that typically have more comprehensive security measures in place. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Google Moves to Prevent Cryptojacking via Illicit Chrome Extensions

Colleagues, as we have previously reported cyber security attacks, specifically cryptojacking via Internet browsers, has risen some 400% YoY from 2017 through H1 2018. Google Chrome commands almost 67% market share according to data from Statista. Earlier this year Google banned cryptocurrency-related ads from AdWords and placed major restrictions on apps and extensions on Google Play and the Chrome Web Store. Therefore, it comes as welcomed news for individual and corporate Chrome users that Google has taken the next step of adding more stringent rules for developers of Chrome extensions. Chrome, Firefox and Safari have been the primary targets of cyber criminals seeking to perform crypto mining by way of installing malicious code (aka illegal extensions) to mobile and desktop browsers alike. The Chrome Web Store’s Developer Program Policies clearly states “Do not create an extension that requires users to accept bundles of unrelated functionality”.  Nevertheless, written policies are no better than the vendor’s enforcement practices and penalties. We will report back in Q1 2019 on the initial impact these stricter policies have on mitigating the cryptojacking tsunami impacting Chrome users … and hopefully stemming the tide of illicit crypto mining. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

What impact will Siacoin’s bricking of Bitmain and Innosilicon hardware have on cryptocurrency mining?

Colleagues, Siacoin is indeed a third-tier cryptocurrency when compared to Bitcoin, Ethereum, Ripple and Litecoin. CoinMarketCap ranks Siancoin’s market cap at 40^th on its global list of digital currencies. ASIC mining demand for Siacoin is dwarfed by comparison to its tier-1 competitors. So is there any bona fide reason to fuss over Siacoin’s decision – derived from an anonymous Reddit community vote – to implement a fork, which will obsolete Bitmain and Innosilicon ASICs from mining Siacoin. Our assessment leads the Cryptocurrency Academy to a two-fold answer. First, users Obelisk hardware from Nebulous to mining Siacoin are big winners – they will have a de facto monopoly on Siacoin mining. Second, within the context of the global cryptocurrency ecosystem this decision is nothing more than a blip on the radar screens of Bitmain and Innosilicon … business as usual. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Bitcoin, Ethereum and Monero at the core of a new cryptocurrency money-laundering scheme

Colleagues, the lack of transaction transparency and money laundering have long been the Achilles heel of the crypto ecosystem. A recent Wall Street Journal study revealed that some $88m in cryptocurrencies from 2500 wallets was laundered through exchanges including Shape Shift. To date this exchange (and others) have allowed investors to anonymously trade digital assets – mostly Bitcoin that holds 50% market capitalization share among cryptocurrencies – without needing to create an account. To its credit ShapeShift is replacing its “account less” trading model with a new “loyalty program” which requires users to create a traceable account. Money laundering has long been a high priority of entities such as the US Drug Enforcement Agency and Europol … and so-called crypto laundering is reaching epic proportions. Having reported all too many times on this topic we believe that first and third world governments need to implement strict regulations requiring the transparency of crypto trading and exchanges alike. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

The Perennial Tug of War Between the US SEC and CFTC – Are Crypto Assets “Securities” or “Commodities”?

Colleagues, the fraudulent representation or claim of a “security” or “commodity” in the US can be tired as a federal or a state level crime. Nevertheless, fraud is fraud. So ruled a district judge regarding the cryptocurrency My Big Coin Pay scam. Co-defendants Mark Gillespie and Randall Crater are alleged to have use investments – categorized as commodities - in My Big Coin Pay for personal use and gain. Sovereign nations, their governments and court systems around the world are struggling to regulate digital assets. One of the foremost dilemmas is whether cryptocurrencies are securities or commodities. To outsiders the distinction may appear meaningless, however, to government regulators and the exchanges upon which these assets are traded the difference in critical. In the US, the issue will ultimately depend upon the decisions of the judicial system along with the US SEC and the Commodities Futures Trading Commission (CFTC). Although the issue of My Big Coin Pay may be decided for now, the much larger issue will likely not be resolved at the federal level for another 2-3 years. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

US SEC Cyber Unit Sues PlexCoin Founders for Illicit Cryptocurrency Scheme

Colleagues, the promise of a 13-fold appreciation in one month lies at the core of the US SEC’s lawsuit against PlexCoin co-founders Sabrina Paradis-Royer and Dominic Lacroix. The defendants are charged with an illicit PlexCoin ICO scheme. Although fraudulent ICOs are not a daily occurrence, they are far too common. Moreover, they represent one more reason why the US SEC – and its counterparts abroad – are reluctant to classify cryptocurrencies as legitimate “securities” tradeable on leading stock exchanges. That is why even the most prominent digital assets including Bitcoin, Ethereum, Ripple and the like are confined to crypto only exchanges like BitFinex, Binance and Huobi. Bottom line: We predict that within 24-36 months the US SEC will define and implement a strict framework for regulating cryptocurrencies and allowing only those assets, which meet the most stringent requirements bona fide “securities” status. As we continuously stress crypto investors must perform their due diligence and are urged to stay with proven currencies traded on legitimate exchanges. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)