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Cryptocurrency Accounts Linked To North Korea Hacks Set Be Seized By U.S Government

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The US government is boosting its cybersecurity efforts by targeting 280 cryptocurrency accounts linked to North Korea hackers. According to the Reuters report, the U.S. authorities are making efforts to seize crypto accounts believed to have been used by North Korean hackers to steal millions of dollars worth of cryptocurrencies from two virtual exchanges.

This action comes after the hackers have been identified to have been involved in a number of crypto-related cyber crimes in the world. U.S. authorities also believe that hackers use stolen currencies to fund different military operations, such as the missile program.

The U.S Department of Justice filed for a civil forfeiture complaint in a move touted to give the authorities total authority to seize all of the 280 accounts. It is worth noting the North Korea hackers laundered money through Chinese traders who used the accounts to launder over $100 million on their behalf.

North Korea using Hackers to overcome harsh economic effects of sanctions

Following the different sanctions imposed on North Korea since 2006, the country has had to face tough economic times. It is precisely this situation that the U.S. authorities believe prompts North Korea to incorporate state-sponsored hackers to hack and steal funds intended to fund different programs in the country.

The UN Security Council first imposed sanctions on the country, following reports that the government was working on a ballistic missile program. It is also widely believed that the majority of stolen cryptocurrencies are averted towards supporting this program.

Brian Rabbit Who serves as the assistant attorney general for the justice department in a statement insists that the recent expose shows just how much North Korea hackers were embedded with the Chinese gang to scam funds fraudulently.

Hackers have amassed a whopping $2 billion from targeted cyber crimes

According to reports, the North Korea hackers have managed to scam over $2 billion worth of cryptocurrency from their hacks.  The hackers mostly target banks and crypto-exchange platforms. Meanwhile, the infamous Lazarus group has been credited to a number of cyber attacks on financial firms worldwide.

 

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Huge Bitcoin Hash Rate In China In Jeopardy After Local Authorities Increase Electricity Tariffs For Mining By 33%

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Bitcoin miners in Inner Mongolia can no longer enjoy subsidized electricity rates for their crypto-mining operations, according to chinese news outlet Weixin. The authorities insist that mining companies have not directly benefited the wider Mongolian regions and local government. And now a large number of Chinese miners operating within the border of Inner Mongolia, electricity charges may rise by 33 percent.

This action comes as a blow to Bitcoin miners as around 60 percent of the world’s mining operations are based in China. In addition to some large-scale companies, such as AntPool, which are known for the high-income revenues they generate each year, they are based in the region in question.

China’s colossal Bitcoin hash rate share to drop following the move by local authorities

China controls a vast 60% hash rate on all Bitcoin mining operations in the world but all that is about to change following increased electricity tariffs policy in the Mongolia region. For a long time, the northern part of China has enjoyed favourable conditions conducive for bitcoin mining such as cool climate, cheap labour and subsidized electricity rates.

Bigwig firms like AntPool along with other miners based in Mongolia are likely to be affected negatively, thus resulting in decreased profits generated from mining operations. According to reports, at least 21 mining farms will be affected directly. However, it is worth noting that not all firms have been affected by the authorities’ move.

China inner Mongolia authorities issued the ‘surprise’ notice on 24 Aug 2020. Colin Wu, a famous Chinese reporter who mostly focuses on mining and industry regulations reports, also confirmed the news on his official twitter page.

Crypto mining enthusiasts fear that more regions will follow the policy of the Mongolian authorities

Bitcoin Miners in China are now worried that increased electricity rates directive in Mongolia will now be imposed on other different regions in the country. Xinjiang region is more precisely tipped to be next to offer the instructions after Mongolia.A lot of mining operations will also take a hit in terms of profits generated as the rest of the world now enjoys a more level playing field.

Trend Picks Up Pace After Snappa And Tahinis Firms Switch To Bitcoin Investment As Reserve Assets

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Two Canadian business firms, Snappa and Tahinis, have recently joined the growing number of business firms investing in Bitcoin as a reserve asset. In a blog published on 24 August 2020, Christopher Gimmer, CEO and founder of Snappa, revealed that the company had allocated a considerable amount of money from its cash reserves to purchase Bitcoin as an asset.

As per the blog post, the graphic solutions firm Snappa started accumulating bitcoin from March of this year. In addition, Gimmer adds that the decision to invest in Bitcoin as a reserve asset was not rushed at all, but rather a long-term decision.

Snappa has invested 40 percent of its cash reserve in cryptocurrency. Previously, the Middle East Food Joint Venture Tahinis also joined the bandwagon by officially announcing on Twitter on August 18 that they had allocated their entire cash reserve to purchase Bitcoin and invest as an asset.

In the Twitter thread, Tahinis restaurant’s owner clarified his decision to go all-in Bitcoin investment was backed by the fact that “it offers a much better alternative to saving cash” in his own words

Gimmer reinstates his total confidence in Bitcoin as a reserve asset

The Snappa CEO, confirmed that the decision to invest in Bitcoin was based on the numerous benefits that the cryptocurrency has to offer relative to cash reserves. Gimmer claims that there is a need to invest in viable reserve assets as some banks have now lowered their low-interest rates to 0.45%. There is also evidence to back the fact that the purchasing power of the dollar has dropped over time.

Gimmer further argues that Bitcoin offers much superior technology for savings relative to cash reserves. He also claims it is better to invest in Bitcoin as opposed to cash reserves in a fixed supply based currency. It should be noted that this action comes as businesses face global economic instability in the wake of the ongoing Covid-19 pandemic

More Firms embracing cryptocurrency as an asset

Microstrategy, a billion-dollar firm based in the U.S also recently made the ‘switch’ to Bitcoin assets. The firm invested a little over 200 million dollars in purchasing Bitcoin, which translated to about 21,454 worth in BTC.

 

Deputy Prime Minister of Japan Tips Blockchain Technology As A Possible Solution In Combating Rampant Covid-19 Pandemic

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Deputy Prime Minister of Japan Taro Aso has come forward and tipped Blockchain technology as a vital tool in global efforts to counter the raging COVID-19 pandemic. Aso, who also serves as the finance minister of the country, talked about this during the Blockchain Global Governance Conference held in Tokyo, the nation’s capital, on 24 Aug. 2020.

Aso, believes that Blockchain technology can precisely be effective during the process of contact tracing.In addition, he adds that the technology could ensure that the privacy of the user is maintained for anyone found to be COVID -19 positive after contact tracing.

Blockchain technology can provide containment measures directives

The outspoken politician also insists that Blockchain technology can help the relevant authorities to have access to the necessary measures that need to be taken to stem the outbreak of COVID-19 in the future. Nevertheless, Aso asserts that any rising differences that may occur between technology users and regulators need to be resolved first to ensure that this venture is effective.

He added that it is worth noting that certain users of Blockchain technology are very unfriendly to regulators. Many of them assume that regulators lack a clear understanding of the technology, and any innovations that may arise may be impeded. Aso also acknowledges the fact that the rate of Covid-19 infections will not subside soon, so a need for a realistic blockchain-based contact tracing solution might be considered as immediate emergency.

The technology adoption is fast gaining popularity across the globe

Many countries around the world are now working towards the integration of Blockchain technology. Nations such as Colombia, through the Ministry of Information Technology and Communications, are integrating their 10 sectors into technology. The Ministry believes that the country can benefit greatly from this action when fully integrated. Also in May 2020, the Colombian government joined various nations in signing favorable bills to the law in support of the adoption of Blockchain. They recently signed the ‘Blockchain bill of rights’which will set favorable conditions for the passage of the tech.
Finally, nations such as Estonia, the U.A.E, the U.S. and Canada have all made significant progress following the adoption of Blockchain technology.

U.K. Financial Watchdog Registers Gemini Crypto Exchange Firm

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The U.K. financial watchdog has given the green light to U.S. crypto exchange firm Gemini to run its operations in the United Kingdom. The cryptocurrency exchange founded by the Winklevoss twins has registered its U.K. branch with the Financial Conduct Authority.

The Financial Watchdog rolled out mandatory risk assessments for exchanges in January this year to determine their compliance with the Fifth AML Directive (AMLD5) and the Counter-Terrorism Financing (CTF) Regulations of the European Union. The new regulations require all cryptocurrency firms operating in the United Kingdom to report their operations to the FCA. Archax crypto exchange was the first exchange firm to be approved by the authority under the new laws.

All crypto firms are required to comply with new requirements

According to the Financial Conduct Authority, cryptocurrency entities operating in the U.K. have until January 10, 2021, to comply with the new requirements. Gemini’s U.K. branch, Gemini Europe Limited, registered with the financial watchdog early this week. However, the authority has not revealed the exact date when the firm’s new registration will take effect.

Although Kraken claims it is the UK’s first licensed crypto exchange, only a United Kingdom Financial Conduct Authority (FCA) Multilateral Trading Facility (MTF) license was given to its subsidiary Crypto Facilities on 6 July. Moreover, according to FCA.s register, both Archax crypto exchange and Gemini registered their operations in the U.K. this week, and are the only two firms on the entry. However, the Archax’s registration entered into force on August 18, unlike Gemini, which is not specified.

Currently, the Gemini crypto exchange is adopting measures to fortify its oversight tools as it sails through the FCA’s procedures. According to a recent report by Bloomberg, the American exchange had chartered Ventus Systems Inc. to supply the firm with anti-market manipulation tools.

European nations implementing AMLD5 and FATF recommendations

European authorities are currently enforcing the AMLD5 and FATF recommendations.  Ireland is presently structuring its cryptocurrency regulations to combat money laundering and financing of terrorist activities. However, the new cryptocurrency regulations could pose more challenges to the Irish cryptocurrency sector. Notably, the cost of compliance might push some startups out of business.

Former Top Central Bank Official Tips Cryptocurrencies To Co-exist With Upcoming State-Owned Digital Currencies

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Former Governor of the Reserve Bank of India, Raghuram Rajan, sees the future of Bitcoin and Libra cryptos long after central banks around the world start issuing their own digital currencies. In a formal statement to CNBC on 19 August 2020, the vocal economist speculates that Bitcoin will work side by side with Central Banks digital currencies.

Rajan, who currently serves as the finance professor at the University of Chicago, is famously known for his on-point prediction of the recession of 2008. He is also fondly remembered for championing the economic revival in India for the past ten years. Rajan again has predicted a good future for Cryptocurrencies, but he insists they are not ideal for replacing fiat currencies.

Private digital currencies in direct competition with upcoming state-owned digital currencies

Rajan sees private digital currencies competing with central banks digital currency.  Besides, the former top banker also sees a lot of value in Bitcoin, which he compares to gold. However, Rajan, comparing Bitcoin to Libra insists that bitcoin is more or less volatile, so predicting the crypto will mostly be used as a store of value rather than as an alternative currency like Libra. He also insists that Bitcoin has value, mainly because other people think it has value.

Rajan again backed Libra to be more as a transaction medium since it is designed to be tied to global currencies. This means that Libra consortium would roughly translate to either one euro or dollar, for instance, if approved.
Rajan also expressed concerns of his own on handling the users’ data. Rajan is against governments tracking the users’ data when, eventually, the state-owned digital currencies come into play.

More central banks are gearing towards exploring digital currencies

More central banks around the world are venturing towards exploring the digital currency space. The people’s Bank of China is already conducting pilot tests for its digital currency. The Central Banks of Japan, Britain, Switzerland and even Sweden have also teamed up with the Bank of International Settlements to assess the possibility of digital currencies and how they will be incorporated for use.

Crypto Bull John McAfee Leaves the Ghost, the Privacy Centric Crypto Project.

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Cybersecurity veteran and cryptocurrency advocate John McAfee has revealed through Twitter that he will not be affiliated with the privacy Ghost Token project that he launched in April. According to him, the ineptitude of the management team forced him to abandon the project.

John McAfee leaves Ghost token project

McAfee’s move to abandon the project seems surprising, as cybersecurity entrepreneur commended the project on twitter just a week ago. Last week on Aug.13, McAfee wrote on his Twitter account that:

“I have labored my entire life to reach the point where I could produce an Ecosystem as powerful and groundbreaking as the Ghost Exchange, the Ghost coin and the Ghost phone[…] $GHOST is the future.”

In his recent announcement on Twitter, john condemned the project and suggested that it was bound to fail. He also apologized to all that he had misled to join the Ghost token project. However, the veteran tech expert did not leave the project in a very pleasant situation. The firm labeled him as a “loose cannon,” and he retaliated by marking one of the members as an “idiot.”

According to John, his decision to leave the project was triggered by his deep frustration with the project management team. To reflect McAfee’s disappointment at the project, he said he would take off his Ghost tattoo, which he received two months ago in honor of Ghost Token.

Ghost project to run even after McAfee’s departure

McAfee ‘s move to abandon his Ghost project may seem catastrophic in the short term, according to a member of the project, the project is still going to run. He suggested that the departure of the McAfee would not affect the Ghost blockchain in any way.
On the contrary, after McAfee ‘s departure announcement, the price of Ghost tokens declined by about 50 percent. The price of the token fell down from $0.61 to $0.31 within 24 hours.

DoJ Arrested Five People for Allegedly Running a $20 Million Crypto Mining Scam

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According to a statement by the United States Department of Justice (DoJ) on August 18, five individuals were detained in connection with a crypto mining scam that ended up defrauding investors to the tune of $20 million.

The suspects allegedly urged investors to invest in their cryptocurrency trading and mining firm, AirBit Club, which in reality does not exist. According to the report, the suspects include Gutemberg Dos Santos, Jackie Aguilar, Pablo Renato Rodriguez, Cecilia Millan and Scott Hughes. They allegedly lured unsuspecting victims to invest in their crypto mining scam, promising a massive return on capital.

Crypto mining scam lands five in hot soup

Notably, Renato Rodriguez and Gutemberg Dos Santos founded the AirBit Club back in 2015. Both of them recruited both Cecilia Millan and Jackie Aguilar as marketers. The suspects falsely claimed that the company’s income generation is derived from its cryptocurrency mining and trading activities.

As per the report, investors were required to purchase a membership plan for the various programs of the Ponzi scheme to start earning passive income. At the end of the day, however, the firm failed to keep its promise to investors. Suspects have used the proceeds of the crypto mining scam for personal gain, the acquisition of luxurious properties such as apartments, sports cars, and jewelry,

“As alleged, the defendants put a modern-day spin on an age-old investment scam, promising extraordinary rates of guaranteed return on phantom investments in cryptocurrencies. Thanks to HSI, the defendants are in custody and facing serious criminal charges,” stated Acting U.S. Attorney Audrey Strauss.

Suspects to face charges against conspiracy to commit fraud

Moving forward, the DoJ report notes that three of the suspects, Dos Santos, Rodriguez, and Millan are up against one charge against conspiracy to commit banking fraud, conspiring to commit money laundering, and conspiracy to commit wire fraud. On the other hand, Aguilar is being charged with a single conspiracy to commit wire fraud while Hughes is facing charges against one count of conspiracy to commit money laundering and one count of conspiracy to commit banking fraud.

Two Bulgarian Bitcoin Miners Charged For Siphoning $1.5 Million Worth Of Electricity In Illegal Bitcoin Mining Operations

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Two Bulgarian nationals were charged for siphoning electricity worth $ 1.5 million which was used in illegal Bitcoin mining operations. Sofia ‘s two suspects aged 31 and 38 are said to have based their operations in Kyustendil, a small town. They had been caught illegally channeling power to their crypto-mining farms. Authorities suspect the two siphoned power has been coming to light for a span of 3 to 6 months before their illegal activities.

The authorities also found mining equipment believed to have been on the scene for more than a year. The Bitcoin miners were arrested for and detained  24 hour  and were released later awaiting trial. CEZ Deputy Director Phillip Yordanov referred to the incident as the biggest theft of power ever discovered by the firm in recent times.

It is worth noting that the quantity of power siphoned is more than capable of powering the neighboring town for even a month.

Illegal Bitcoin mining operations on the rise as more miners target tokens

Of late reports have emerged from different parts of the world involving incidences of miners siphoning power for their mining activities. In particular, one of the biggest power siphoning incidents occurred in China. Chinese authorities arrested 22 suspects allegedly involved in operating a Bitcoin mining farm and siphoning power estimated worth $3 million. Also, 4000 mining rigs were confiscated in 9 different workshops.

Russia too, has faced occurrences of illegal power siphoning activities. In June, the Russian authorities arrested a 30-year-old middle-aged man in connection with siphoning power worth $150 000. The suspected allegedly siphoned power from the state powered national grid. Also, the country reported another incident where ten individuals were arrested in connection with siphoning power worth $200 000 every month that they were operational.

More crypto miners after profits made from tokens

In conclusion, the lure of handsome profits made from tokens is inventively pushing more illegal miners into the game. The profits generated from illegal Bitcoin mining activities motivate miners to set up mining farms for this sole purpose.

 

Alabama and Texas Bans South African Firms After Crypto Credit Card Scam

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Securities watchdogs in both Alabama and Texas issued a cease and desist order following a crypto credit card scam promoted by South African firms. Accordance to a joint order issued by both the Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC), companies such as the South African Liquidity Gold Trust, Liquidity Gold Solution and Liquidity Global Card Solution and an individual named Lance Angus Jerrard have issued prohibition orders.

As per reports, the sanctioned firms and Jerrard advertised a fraudulent debit card, dubbed Liquidity Card on social networks and a radio station in Austin, Texas. The perpetrators wrongfully stated that there is a secure way for people to make money while staying at home amid the COVID-19 disaster.

Crypto credit card scam breakdown

The firms allegedly utilized their advertisements to claim that Liquid Card could help investors evade taxes by transacting in stablecoins such as TUSD, USDC and PAX coin. The fraudsters were to recruit and convince new users to commit a minimum of $1,150 in one portion or more of 8,400 parts in the crypto credit card scam. Furthermore, the investors claim that the debit card functions as a traditional debit card.

The project, which was scheduled to start in October, aimed to register over 8 million new users in 36 months. According to the joint order release, the firms mentioned above offer investors a written 100 percent cash back guarantee, which the order terms as fraudulent. Notably, the watchdogs also noted that they had disguised vital information; the risks posed by the project to potential cardholders, and how they make money from the capital employed.

Involved parties have 30 days to issue a response

According to the prohibition order, all the liquidity companies listed are under no obligation to sell securities in Texas or Alabama. Moreover, the firms allegedly used fake pictures to lure investors into the crypto credit card scam. The authorities have given all the involved firms a 30-days grace period to respond to the cease and desist order.