The Finnish Customs service is puzzling over what to do with seized 1,666 bitcoins as their value has soared almost 2,000% to over $15 million
The Finnish Customs service is puzzling over what to do with seized 1,666 bitcoins as their value has soared almost 2,000% to over $15 million
Over the course of two years, an unknown mining entity managed to sweep addresses for lost Bitcoin Cash (BCH), taking the coins as their own instead of returning them to owners.
Lost Coins Grew Since 2017 Bitcoin Cash Hard Fork
Bitcoin Cash (BCH) stepped into a problem soon after its launch in August 2017. Due to address format similarities, over the years, BCH users mistakenly sent out coins to SegWit addresses, which are not supported on the Bitcoin Cash network. Over the years, the possibility to send coins was not fixed, and up to 18,000 BCH was sent mistakenly. Mistaken transactions picked up in 2018 and 2019, due to the relative novelty of SegWit addresses.
The newest data from Coinmetrics shows that known pools through their coin recovery programs managed to claw back about half of the coins and return them to the owners. But one “unknown” miner managed to mine enough blocks to sweep about 9,000 BCH. Jameson Lopp, Bitcoin supporter, tweeted on the so-called “BCH jackpot”:
An unknown miner has swept up nearly 9,000 BCH that were mistakenly sent to SegWit addresses (which are only redeemable on Bitcoin.) Over $3M as of today. H/T @khannib @coinometrics https://t.co/wrBGhYOa3o pic.twitter.com/Xug5e6fLq1
— Jameson Lopp (@lopp) February 25, 2020
Coinmetrics tracked the problem from its initial days, when the lost coins were in the hundreds. Miners like BTC.com even opened a form for small claims, though the service was only temporary. Later, the pool decided to discontinue recoveries for smaller sums, setting a minimum of 10 BCH recovery fee for a minimum recovery of 100 BCH.
51% Attack in May 2019 Prevented “Unknown” Miner from Coin Clawback
So far, BTC.com and BTC.top are the biggest movers of lost coins. But an “Unknown” miner has a total score of 8,763.16 coins so far, with the potential to gain more. At this point, not all recoverable coins are known, and more can be discovered. The condition to gain access to the coins is to be a miner, or contact a miner willing to include a non-standard script transaction which will be propagated. Regular users cannot send the required type of transaction to the blockchain.
At one point, BTC.com and BTC.top managed to forestall another attempt to claim lost coins, by actually performing a unified 51% attack on the Bitcoin Cash blockchain. This stopped the propagation of the transactions mined by “Unknown”, orphaning a specially prepared block that would have given the miner access to the lost BCH.
BCH changed its address format toward the end of 2018, and the number of misplaced coins decreased significantly since April 2019. Mistaken transactions can be avoided by sending a small test amount of coins to see if the address is viable and no mistake has been made. The search for lost coins continues, and owners may find it more difficult to organize the clawback of small-scale transactions.
What do you think about the claiming of lost BCH through targeted block mining? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @lopp
Source: Bitcoinist News
Reginald Fowler, a businessman situated in Arizona, was charged with wire fraud on Friday following a long list of other charges that have accumulated over the past month.
Fowler was once a stake owner in the Minnesota Vikings, but he’s also a potential operator of Crypto Capital, a payment processing venture that seeks to govern digital currency transactions. This new charge alleges that he garnered money through “false and fraudulent pretenses” and had money directed to a professional sports league.
Fowler was originally offered a plea bargain when he was first taken into custody in early February. It was stated that he would only be charged with one felony granted he agreed to forfeit nearly $400 million in crypto funds from a whopping 50 separate addresses. Not a fan of potentially being separated from his money, Fowler turned the bargain down.
He’s now slated to face trial, where he’ll likely be hit with more charges and a larger prison sentence if he’s found guilty. An updated indictment documenting the case against Fowler reads:
Fowler defrauded individuals associated with a professional sports league (the ‘League’) in connection with his acquisition of an ownership stake in the League, inter alia, (i) by falsely claiming personal ownership of funds that were, in truth and in fact, funds Fowler had obtained through the unlicensed money transmitting business charges in Count Four of this Indictment and (ii) by converting those individuals’ funds toward his investment in the League.
Some of the other charges he’s facing include conspiracy, bank fraud and running an unlicensed money transmitting business. Among some of the digital exchanges that utilized Crypto Capital to process their transactions are Bitfinex and Quadriga CX, both of which are presently wrapped up in scandal.
Quadriga CX was one of Canada’s leading crypto exchanges, but it’s now facing a huge class-action lawsuit given that none of the customers can access their money. The company’s CEO Gerald Cotten allegedly passed away in India in late 2018, and as the only person with the private keys necessary for accessing the exchange’s digital reserves, $194 million disappeared into oblivion the day he stepped into the great beyond.
Customers were thus left empty-handed and could not access their funds.
Bitfinex is also facing a lawsuit of its own from former customers who claim that the trading platform – with help from the stable coin Tether – worked to manipulate the bitcoin price in 2017. At that time, the world’s number one cryptocurrency by market cap spiked to an all-time high, but later came tumbling down and lost more than 70 percent of its value the following year.
Bitfinex denies it had anything to do with bitcoin’s price maneuvers.
The post Reginald Fowler of Crypto Capital Charged After Questionable Wire Transfer appeared first on Live Bitcoin News.
Source: Live Bitcoin News
As altcoin prices correct alongside Bitcoin, traders look to buy dips on the best performers of 2020
Caitlin Long (in a Cointelegraph exclusive) explains why trust companies as custodians are not sufficient for institutional investors
When Satoshi Nakamoto launched the Bitcoin network, not only was the protocol a breakthrough in computer science, but it transformed the way society perceives money, economics, and freedom. “The Satoshi Revolution” written by Wendy McElroy delves into the transformative technology Nakamoto introduced 11 years ago by exploring the evolution of this new money. McElroy’s book describes how cryptocurrencies can enrich the lives of individuals fighting for liberty in a world filled with monetary manipulation and political propaganda.
Two weeks ago I sat down and read Wendy McElroy’s latest book “The Satoshi Revolution,” a chronicle that describes the invention of Bitcoin and how it can alter the way society can operate going forward. McElroy is a well known Canadian libertarian author who has written a number of books since the early eighties. She also cofounded The Voluntaryist magazine created in 1982 and when I first started my path toward anarcho-capitalism, I read a number of McElroy’s articles. McElroy’s words, like the many others I was reading at the time from Ron Paul, Murray Rothbard, and Ludwig von Mises, fundamentally changed the way I looked at the world. A few years ago, McElroy came to write for news.Bitcoin.com and I was very excited to see what she had to say. I found out later that she was writing a book about Bitcoin, Satoshi, and the cryptographic tools that have the potential to promote economic freedom.
Bitcoin.com now has McElroy’s 2020 e-book “The Satoshi Revolution” hosted on the website and available to anyone interested in reading the title. The Satoshi Revolution’s opening chapter discusses how Satoshi gave the world the first practical solution to the Byzantine Generals Problem. Not only that, but Bitcoin revolutionized our conception of money and finance because it provides a system that removes third party interference. “The trusted third party problem has haunted modern financial systems and centralized exchanges because people require an intermediary to make them work,” McElroy’s introductory chapter explains. McElroy highlights the fact that third party intermediaries can be “good or bad,” but the “current system of state-issued money and central banking” has proven to be a failure.
McElroy provides a comprehensive history of the past and the first few chapters of her book do a great job explaining the trusted third party problem. She talks about Friedrich Hayek and Murray Rothbard’s arguments for free markets and how they discussed private currencies that could help bolster individualism. However, despite economists explaining how things could be designed for the betterment of society, McElroy’s words describe what really happened. “The modern neglect of free-market money” and the manipulation of banking through ‘trusted’ third parties. Freethinkers and “radicals” however not only debated the subject of private currencies, they also “experimented with private currencies and new economic models.” McElroy highlights these events by stating:
Happily, their main economic goal was the abolition of the “money monopoly.” The term referred to three different but interacting forms of monopoly: banking, the charging of interest, and the privileged issuance of currency. The abolition of state power over currency was the focus, and they eschewed the use of force to implement their own schemes.
The book’s beginnings further explain how a radical individualist theory grew worldwide amidst the creation of the United States. Certain aspects of early America had shown signs of a prosperous free market concept, but McElroy underlines how the government eventually extinguished this idea and outlawed private money. Further, in the book, McElroy weaves through topics like the Mises Regression Theorem and the cypherpunks promoting cryptographic tools during the eighties and nineties. At that time a few more radicals tried to create private currencies and chapter two tells cautionary tales about those who attempted to create digital cash before Satoshi. From here, McElroy describes the introduction of Satoshi Nakamoto and the emergence of Bitcoin. Over the last decade, there have been many debates over whether or not Satoshi was a libertarian. McElroy gives an in-depth look at the political motives the creator might have had and leveraged evidence from early writings. On January 3, 2009, the Bitcoin network was unleashed, giving society a new path to choose from in a world filled with manipulated monetary policy.
“Individuals had a viable, private currency that allowed them to control their own wealth and become their own banks—to self-bank,” an excerpt from McElroy’s book notes. “At last, there was a practical path away from the manipulated fiat and the corrupt financial institutions that formed the basis of state power.” McElroy adds:
Bitcoin came at the right moment. Just two years before, the monetary monopoly had caused the devastating financial crisis of 2007-2008 across the globe. Bitcoin and the blockchain offered individuals a better system—one that served their needs, not those of the elite, and it promised financial independence and control that is the foundation of autonomy.
McElroy describes Satoshi’s early writings and the Bitcoin network’s nascent years. Not too long after the Wikileaks donations and the creation of the Silk Road marketplace, governments started taking cryptocurrencies seriously. The mid-section of The Satoshi Revolution details how the U.S. government and bureaucracies worldwide have tried to deal with the digital currency revolution. McElroy’s book notes how the elite realized peer-to-peer transfers sidestep central banks and state-issued currencies. Because freedoms like these are bolstered by crypto, the nation-states know their power is weakened, McElroy writes. So politicians and bankers have tried to curb peer-to-peer trading by calling it “illegal money transmission” and more recently bureaucrats are out to extinguish coin mixing applications. The Satoshi Revolution underscores how the very existence of cryptocurrency has threatened the central planners and manipulators. The threat scares them incredibly and McElroy’s book cites this occurrence on many occasions. The Satoshi Revolution describes how these freedom-promoting benefits have invoked an all-out attack against Bitcoin.
“Crypto’s existence raises the question of whether the state is necessary,” McElroy stresses. “If the free market can so easily assume one essential state function—the issuance and circulation of currency—then why can’t it assume others, or them all?”
Overall, McElroy’s novel is a fascinating dive into the beginnings of private money and how an anonymous creator in 2009 changed everything. The 171 pages kept me intrigued throughout and I learned a number of things I didn’t know before. I always think a good book should make me look at things from a different perspective and this one certainly does that. The Satoshi Revolution also has a thought-provoking introductory preface written by the well-known Austrian economist Jeffrey A. Tucker.
The Satoshi Revolution has cushioned my belief that I too am doing something special by teaching people about the economic freedoms cryptocurrencies can provide. Before I found crypto, I concentrated on various problems society faces, but I realized that I wanted to circumvent the state in a more productive fashion. Just as religion was separated from the state, I feel that the separation of money and state will promote the greatest effort toward freedom this world has seen in centuries.
McElroy’s book The Satoshi Revolution has made me aware that my path will not be fruitless. Toward the end of McElroy’s tome, I realized she had come to the same conclusion as I ha. “Crypto-anarchism: [Is] the most important political development in my lifetime had occurred without my noticing it happening, which is inexcusable,” McElroy concedes. She further notes:
I had spent my time on “official” libertarianism— donation-driven and donation-defined institutes, tax-funded universities, academic journals. When did freedom ever come packaged in tax dollars, awards, and honors delivered at rubber-chicken dinners? Freedom is a street fight. Crypto- anarchism took over the streets without my noticing. I notice now.
The Satoshi Revolution is now live on Bitcoin.com and it’s a pleasure to introduce Wendy’s latest work alongside Jeffrey Tucker’s preface. If you are interested in reading an excerpt from the first chapter of Wendy McElroy’s 2020 e-book then follow this link here. If you liked the first chapter, you can leave your email address to receive your free PDF copy of The Satoshi Revolution.
Image credits: Shutterstock, Wendy McElroy, Fair Use, Wiki Commons, and Pixabay.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.
The post Wielding the Tools of Liberty: Exploring Wendy McElroy’s Latest Book ‘The Satoshi Revolution’ appeared first on Bitcoin News.
Source: Bitcoin News
Blockchain analysis offers a glimpse into potentially illegal behavior. Now, French and Austrian technology experts are joining forces to tackle crypto-based money laundering.
Visualized Blockchain Connections Reveal Potential Illegal Usage
The French blockchain security company NIGMA Conseil, and the Austrian Institute of Technology (AIT), have signed an agreement of cooperation on tracking crypto crime. The two organizations are working on the e-NIGMA platform, built using the AIT GraphSense technology.
The organizations will cover the niche of startups like CipherTrace, which already provide services for multiple assets to exchanges. The possibility to trace and chart blockchain connections and transactions are a part of stricter KYC rules, which also require the tracking of coin origins. The tool may be suitable for any business exposed to digital assets. Fabien Tabarly, CEO of NIGMA Conseil, stated,
The synergy between a leading European academic research institute and our team of developers has been instrumental in implementing the most innovative tools to fight financial crime in virtual currencies.
Tracking wallet clusters has become essential to discover darknet usage and funds with dubious origins. The e-Nigma ecosystem will be able to discover the entities behind crypto wallets, and also track for suspicious transactions.
With the addition of blockchain security, AIT expands its general portfolio of data and security services. The Austrian organization already advises on general cybersecurity, systems engineering, camera and video analytics, as well as physical layer security.
EU Attempts to Crack Down on Illegal Crypto Usage
AIT is also a part of the Titanium cybersecurity project, investigating darknet activity alongside Interpol and other government or academic partners. The EU has been one of the regions with stricter rules against anonymous crypto usage, and a special focus on darknet wallets, as well as coin mixers.
Crypto exchanges have also shown they are ready to track the usage of coin mixers, going as far as to suspend accounts. Blockchain connections already known to belong to mixers are being traced by Binance and other cryptocurrency firms. European authorities have also cracked down on the mixing business, closing Bestmixer and exploring it for Bitcoin connections to dark web sites.
European businesses will thus have access to an affordable platform that performs multiple actions to possibly satisfy the stricter AMLD5 requirements that came into force at the start of 2020. Europe is also the home of multiple fully transparent exchanges, which will add to their tools for accountability and compliance.
What do you think about the e-NIGMA blockchain tracking system? Share your thoughts in the comments section below!
Images via Shutterstock
Source: Bitcoinist News
New Zealand’s new proposed taxation systems considers excluding crypto from certain Goods and Services tax provisions
BTSE, a multi-currency digital asset and derivatives exchange, will launch its Liquid Network-powered token sale on March 5
ConsenSys Health seeks to provide the blockchain solution to U.S. healthcare problems