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A major fire that ravaged the historic Glasgow School of Art building has spread to neighboring properties and led to several evacuations.
Tether, one of the most-traded cryptocurrencies, shows a pattern of being spent on bitcoin at pivotal moments, helping to drive the world’s first digital asset to a record price in December, according to research by a University of Texas professor known for flagging suspicious activity in the VIX…
This week in Southern California a Los Angeles woman who called herself the ‘Bitcoin Maven’ will be sentenced this Monday after pleading guilty for illegal money transmission. According to law enforcement, the woman made close to $ 300,000 USD annually by selling BTC on the peer-to-peer exchange Localbitcoins.
LA Woman Called the ‘Bitcoin Maven’ Convicted for Selling Bitcoins Without a License
U.S. law enforcement has arrested and convicted another Localbitcoins seller who reportedly made $ 300K per year selling digital assets. The 50-year-old Theresa Tetley used the alias ‘Bitcoin Maven’ and sold bitcoins without registering with the financial authorities. Prosecutors say Tetley’s operations “fueled a black-market financial system in the Central District of California that purposely and deliberately existed outside of the regulated bank industry.”
The U.S. Attorney’s Office claims that Tetley processed around $ 6-9.5 million USD worth of bitcoins throughout her tenure. Operating as the ‘Bitcoin Maven’ Tetley sold BTC between 2014 and 2017 using the online trading platform. Tetley has pleaded guilty and her defense is asking for 1 year in prison for her wrong doings but prosecutors have asked the U.S. District Judge Manuel Real to sentence Tetley to 30 months in federal prison.
US Law Enforcement Continues to Arrest Localbitcoins Sellers for Selling Large Quantities of Digital Assets Without Permission
Tetley is one of many instances where US Localbitcoins traders have been taken into custody for illegal money transmission. In Missouri, a trader named Jason R. Klein pleaded guilty for trading BTC for fiat without registering with the financial authorities. Thomas Constanzo, (aka ‘Morpheus’) was arrested by Homeland Security in Arizona for the same crime. An Ohio man named Daniel Mercede was arrested in May of last year for selling large quantities of BTC overseas. Further, Richard Petix from New York was another trader who was found guilty for selling BTC and charged with “illegal money transmitting business” and “making false statements.”
Then this past February there was another instance where the U.S. Immigration and Customs Enforcement (ICE) team and Homeland Security arrested Morgan Rockcoons (aka ‘Morgan Rockwell’) in Las Vegas Nevada for a BTC transaction from November 2016. That month Rockcoons was charged with unlicensed money transmitting business and money laundering.
In Theresa Tetley’s (aka ‘Bitcoin Maven’) case, the U.S. Attorney’s Office is asking for a forfeiture of 40 BTC confiscated during her arrest, and 25 gold bars.
What do you think about the LA woman charged with illegal money transmission for selling BTC on the platform Localbitcoins? Let us know what you think about this subject in the comment section below.
Images via Shutterstock, and Pixabay.
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A local cryptocurrency exchange in Chile has reportedly filed a lawsuit against six major banks in the country for abusing their power and quashing its crypto payment business. This lawsuit follows another one filed in Chile against ten banks by a different crypto exchange.
Six Banks Sued
Chilean cryptocurrency exchange Orionx filed a lawsuit with the country’s Court for the Defense of Free Competition (TDLC) against six major banks in the country last week, according to Diario Financiero. The six banks are Bancoestado, Banco de Chile, Banco Bice, Itaú Corpbanca, Santander, and Scotiabank.
The lawyer representing Orionx, Pablo Tromben of Tromben Abogados legal services, was quoted by the publication:
The demand before the TDLC is based on the fact that the defendant banks, abusing a dominant position and with sufficient market power, excluded Orionx from the market of digital payments that was achieved through the refusal of sale and exclusive practices.
He noted that the six banks control 77.1% of Transbank, the main operator of digital payment systems in the South American country.
The lawsuit includes the financial entities that declined to sign a contract with the exchange or hindered the management of its new bank accounts. The company interprets these actions as an attempt to impede free competition.
Banks Closed Crypto Exchange Accounts
In March, a number of banks in Chile closed the accounts of Orionx as well as two other crypto exchanges: Buda.com and Cryptomkt.
In closing Orionx’s bank account, Bancoestado said it did “not wanting to get involved with transaction operators of cryptocurrencies, because there is no legal framework that regulates them,” Criptonoticias detailed. The company then filed a request with the TDLC, “alleging that Bancoestado failed to comply with the terms established in the contract for this type of procedure,” but it could not prevent the bank from closing its account.
“What we experienced these months was terrible, from one day to another, they cut us [off from] the income of the company, and we had only been operating for four months, we were very close to bankruptcy,” CEO and co-founder Roberto Zibert shared.
According to the text of the lawsuit, banks argued that they closed the accounts of crypto exchanges because “it is a smoke screen, an appearance of legality, all to mask or disguise the true objective of their conduct,” which “prevent, restrict or hinder free competition,” the news outlet conveyed.
Joel Vainstein, the exchange’s co-founder, told the publication:
We believe that we have a solid case and that it differs from the rest just because we had an electronic means of payment with customers, called Orionx Pay, which [is] further evidence [of] direct competition in the relevant market.
Buda.com previously sued 10 banks after they closed its accounts. The TDLC then ordered three of them, Bancoestado, Itau, and Scotiabank, to reopen the accounts of the exchange and of Cryptomkt while the lawsuit is pending. Following an appeal by the banks which was rejected by the TDLC, Bancoestado agreed to reopen accounts of the two exchanges but the other two banks plan to further appeal.
What do you think of Orionx suing the six banks? Let us know in the comments section below.
Images courtesy of Shutterstock, Orionx, and Bancoestado.
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The post Six Major Banks in Chile Sued by Another Cryptocurrency Exchange appeared first on Bitcoin News.
On June 6 the company Parity Technologies, the firm that maintains the Ethereum Parity full node client, issued a mandatory update for individuals and businesses who use the Parity software. According to the latest security alert, the client versions, 1.10.6-stable and 1.11.1-beta, had a consensus issue with the public test network Ropsten that could possibly extend to the Ethereum mainnet and “could have led to chain split.”
Parity Issues a Mandatory Update Due to a Critical Vulnerability
The Parity client has had some issues with bugs back in 2017 that saw the exploitation of thousands of ethereum. Now this week the company Parity Technologies has announced yet another vulnerability that mandates an immediate client upgrade for all Parity users utilizing versions 1.11.1 and prior. Parity technologies deemed the security alert “critical” and asked all Parity patrons to upgrade to 1.11.3-beta as soon as possible.
“A consensus issue on the public test network Ropsten has revealed a consensus vulnerability that can be triggered by a malformed transaction,” explains Parity on June 6. “Examining the issues with our nodes on Ropsten, we have found out that there is a potential consensus-related issue between Parity Ethereum (up to versions 1.10.4-stable and 1.11.1-beta) and all other Ethereum clients.”
Please update your Parity Ethereum clients to 1.11.3-beta or 1.10.6-stable asap.
Parity’s Rampant Bugs Over the Past Year Causing a Mass Exodus to Just One Reference Client is Not Likely
Parity has suffered from quite a few exploits over the past fourteen months when Parity was hit with a hack that led to $ 30Mn in ETH (150,000 ethers) being stolen. Then five months later the full node Ethereum client experienced another vulnerability that saw a bunch of multi-sig contracts get locked up and frozen. The developers at the time stated, “This means that currently no funds can be moved out of the multi-sig wallets. $ 152 million in ether is believed to have been frozen following today’s news.”
Following this, Parity called for an Ethereum hard fork to reverse the million dollar bugs. However, the proposal EIP 999 to unfreeze the 513,774.16 ETH held in 587 wallets was rejected. Out of 639 votes for EIP 999, roughly 330 votes said ‘Nay’ while the rest did not care or favored the proposal. The latest bug doesn’t bode well for confidence in the Parity software but people are still pleased that Ethereum has multiple clients.
“Imagine if this consensus bug was on Geth?” asks Husam Abboud. Imagine there is no Parity and 95% used Geth, how risky that same client version blockchain would be — Parity + Variety = Stability.”
What do you think about Parity suffering from another bug this week? Let us know your thoughts on this subject in the comment section below.
Images via Shutterstock, Parity page, and Pixabay.
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The post Ethereum Parity Full Nodes Suffer from Another Critical Issue appeared first on Bitcoin News.
Stocks are finishing mostly higher as retailers and technology companies continue to rise, the AP reports. Macy’s climbed 8% Tuesday and eBay rose 2.5%. That helped cancel out losses for banks, which fell with interest rates. Citigroup fell 0.9%. Starbucks fell 2.4% after announcing that Howard Schulz…
One of the most difficult high-speed motorcycle races on earth—and one of the most deadly—is underway and has already claimed one life, reports the Washington Post . Each spring, the Isle of Man Tourist Trophy draws about 40,000 spectators to a tiny island perched between Ireland and Great…
Another government-approved Japanese cryptocurrency exchange has launched a program to borrow cryptocurrencies from its members. The exchange seeks to borrow 1 BTC or more. Initially, only BTC will be borrowed, but the exchange plans to add other cryptocurrencies including BCH, XRP, ETH, and LTC.
Bitbank Will Pay for Crypto Loans
Bitbank is one of the 16 fully-licensed cryptocurrency exchanges in Japan. Announcing a new service on Friday for customers to rent out their cryptocurrencies, the company explains:
‘Virtual Currency Lending’ is a service that allows customers to enter virtual currency lending transactions with Bitbank and receive up to 5% virtual currency per year…When we reach the expiration date of one year, we will reimburse by adding the specified usage fee to the virtual currency lent by customers in the month of offering.
Members with an account at Bitbank can start using this service, the exchange detailed, adding that only BTC can be rented out currently, “but we will also sequentially support other virtual currencies” such as “ripple, litecoin, ether, monacoin, bitcoin cash etc.”
“In principle, the virtual currency lent by the customer is locked until the predetermined loan period has elapsed,” therefore it cannot be sold or transferred “unless the loan term expires or we return it,” Bitbank described.
The loan period is 12 months. Before the loan period begins, Bitbank will hold a “recruitment month” for customers to apply for the program. For example, “If the recruitment month is January 2018, the period of use fee will be from February 1st to January 31st, 2019,” the exchange clarified.
“The usage fee is calculated by the quantity of the target virtual currency in which the transfer was made within the period for each recruitment month,” Bitbank elaborated. The minimum amount the company will borrow is 1 BTC and the maximum is 25 BTC. Bitbank will pay 3 percent to borrow any amount less than 5 BTC, 4 percent for an amount of 5 BTC but less than 10 BTC, and 5 percent for an amount 10 BTC or more.
If customers cancel the loan contracts mid-way, a five percent fee, which includes applicable taxes, will be levied.
Competing with GMO
Another fully-licensed Japanese crypto exchange, GMO Coin, operated by GMO Internet, launched a similar service in April. Initially, only BTC was supported but the company extended its offerings to BCH, ETH, LTC, and XRP earlier this month.
GMO’s loan terms are 90 days for BTC and 150 days for other coins, which are shorter than Bitbank’s terms. In addition, GMO seeks to borrow a larger amount of coins, from 10 BTC to 100 BTC, paying a fee of 5 percent for all loans.
What do you think of Bitbank’s offerings? Let us know in the comments section below.
Images courtesy of Shutterstock, GMO Internet, and Bitbank.
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The post Got 1 BTC? Another Japanese Exchange Wants to Borrow Your Cryptocurrencies appeared first on Bitcoin News.
Two big-name celebs are on opposite romantic trajectories: Alicia Silverstone just filed for divorce, while Hugh Grant just got married. Details: Silverstone: The 41-year-old Clueless actress filed for divorce from estranged husband Chris Jarecki, reports US Weekly . The two married in 2005 but had been together for 20 years. They…
Cryptocurrencies don’t meet the requirements of money, according to the South African Reserve Bank which has decided to call them by a different name. It’s one that does not imply either currency or cryptography. “We prefer to use the word ‘cyber-token’,” said a high-ranking official of the central bank in Pretoria, adding another entry into a long list of substitutes favored by financial authorities over the original term.
Cyber Tokens – But Why?
It’s not unusual for officials around the world to refrain from uttering the word. For many of them, “cryptocurrency” probably sounds like a bad omen. Central bankers are the worst – “crypto” is usually a “no-no” in their financial vocabulary. But the spread of cryptocurrencies has forced policy makers and government experts to demonstrate some linguistic ingenuity. Many now speak more and more often about them with artificially invented synonyms. The list of generic terms is growing and we owe the latest entry to the South African Reserve Bank.
“We don’t use the term ‘cryptocurrency’ because it doesn’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value,” the central bank’s Deputy Governor, Francois Groepe, told reporters in Pretoria this week. “We prefer to use the word ‘cyber-token’,” he added, quoted by Bloomberg.
The popularity of cryptocurrencies has been growing exponentially around the globe and South Africa is no exception. Regulators in the country, like many of their colleagues abroad, are finding it hard to keep up with the pace of crypto progress. SARB has recently set up a special unit tasked to review its position on “private cryptocurrencies.” The main goal is to prepare a policy framework that would lay the foundation for the future regulatory regime to govern the fintech sector.
As part of the discussions on the upcoming crypto regulations, a self-regulatory approach has been proposed by legal experts working with the industry. Whether the SARB team will listen to these calls is yet to be seen. So far, authorities in the country have mostly discussed cryptocurrencies in the context of taxation. In April, the South African Revenue Service announced it expected all crypto gains to be reported by taxpayers. Obviously, the fact that “cyber tokens” like bitcoin are not regarded as currencies is not an obstacle to collecting taxes on their transactions.
A Long List of Nicknames
Government officials and central bankers invent nicknames for cryptocurrency probably because they fear that using the original term would amount to an unwanted recognition of the decentralized digital money. At the same time, they seem to turn a blind eye to the fact that taxation is a recognition of both their existence and their characteristics as means of exchange, unit of account and store of value. Nevertheless, the long list of synonyms continues to grow.
Authorities in Ireland have recently clarified their position on crypto taxation. For the sake of objectivity, the Irish revenue service has referred to digital coins with their real name – cryptocurrencies. Despite that, decentralized cryptos have been denied currency status, with one notable exception – bitcoin is currency only for VAT purposes.
Russia has been preparing its crypto regulations for quite some time. Of the three draft laws that hit the floor of the State Duma this week, only one mentions and defines cryptocurrency directly. In the other texts, and during the preceding discussions, cryptos and tokens have been called “digital money,” “digital financial assets,” “digital rights,” “other property,” “electronic property,” “money surrogates,” and what not.
“Virtual currency”, however, remains by far the most popular generic term among politicians and financial officials around the world. It has been used in place of the colloquial and original “cryptocurrency” in countries, unions, and organizations, including the US, the EU, the IMF, Mexico, Malta, the Philippines, and many more.
Why do you think government officials and central bankers avoid using the term “cryptocurrency”? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock, Bitun.
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