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| August 19, 2018

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MoviePass Again Changes Rules for Customers

August 18, 2018 |

Movie subscription service MoviePass has announced that users will only get to choose from a limited number of films on any given day, CNN reports. The restrictions follow the unveiling of a new plan that will limit the number of movies a subscriber can see to three a month. Previously,…
Newser

Withdrawals Delayed – Bitflyer Scanning for Yakuza Customers

July 3, 2018 |

Withdrawals Delayed - Bitflyer Scanning for Yakuza Customers

Bitflyer has been delaying deposits and withdrawals of virtual currency in the midst of ongoing KYC verifications. The company received business improvement orders from the Japanese financial watchdog in June as a result of insufficient measures against money laundering. Bitflyer reportedly has delayed resuming business as it is thoroughly verifying its clients’ identities. Bitflyer also has stopped taking new customers last month, and this might go on for a while due to a lack of manpower, Nikkei reported.

Also read: Japan Penalizes Crypto Exchanges – Yakuza Involvement Confirmed

In virtual currency trading, deposits and withdrawals are said to be the main stage of money laundering. According to the Financial Services Agency, the company neglected to confirm the identities of their users, which lead to allowing the anti-social forces or members of the Japanese mafia to trade crypto. For this reason, the company is now reassessing the list of its customers, and all deposits and withdrawals are being currently scanned.

Japan’s Yakuza Are Laundering Crime Money via Crypto Exchanges

Withdrawals Delayed - Bitflyer Scanning for Yakuza Customers
30 billion yen was laundered through various overseas exchanges since 2016.

According to a customer, despite requesting withdrawal on June 25, he was not able to confirm the transaction by the morning of July 2.

Last May, the Mainichi newspaper revealed that some divisions of Japan’s organized crime syndicates, also commonly known as the yakuza, were using crypto exchanges to launder money. The Japanese mafia allegedly transferred more than $ 270 million of their funds overseas, according to the Mainichi.

“We strongly recommended [the six Japanese cryptocurrency exchanges] to remove all ties with anti-social forces,” the FSA told news.Bitcoin.com.

As the cryptocurrency industry is growing in Japan, the FSA pointed out the necessity for crypto exchanges together with the local authorities to create a increasingly secure environment with proper monitoring systems in place, including screening users’ ID.

Although Japan is historically known for its police force collaboration with the local mafia, also known as the yakuza, recent organized crime exclusionary laws that came into effect in 2011 criminalize individuals or companies who use them to facilitate their business affairs. The authorities send a warning just like the FSA did on June 22, but when persisting in doing business with the yakuza, one may have their name released to the public, be fined, or imprisoned.

What do you think would happen if Bitflyer failed to verify their customers’ mafia involvement? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The post Withdrawals Delayed – Bitflyer Scanning for Yakuza Customers appeared first on Bitcoin News.

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Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

June 29, 2018 |

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

South Korean crypto exchange Bithumb has announced the 11 cryptocurrencies stolen in last week’s theft and the amount of each coin missing. A compensation plan has also been unveiled for the equivalent value of the lost coins in an undetermined cryptocurrency.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Only Half As Much Crypto Missing

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersBithumb officially announced Thursday the details of the cryptocurrency theft which it reported on June 20. Since then, the exchange has been cooperating with the authorities to investigate the cause of the theft.

Initially, the exchange estimated that the “damage caused by the cyber-attack was about 35 billion KWR [~US$ 31 million],” but that amount was revised to “about 19 billion KRW instead [~$ 17 million]” after undergoing a “continuous recovery process.” The exchange elaborated:

The main reason for the reduction of the damage is due to the ongoing participation, support and cooperation of cryptocurrency exchanges and cryptocurrencies foundations across the world. Also our quick response to the cyber-attack by removing cryptocurrencies from hot wallet to cold wallet effectively contributed to reducing the overall damage.

At the time of this writing, Bithumb is South Korea’s largest crypto exchange with a 24-hour trading volume of $ 136,432,719, followed by the Kakao-backed Upbit with $ 110,435,824 trading volume in the same time period, according to Coinmarketcap.

Which Coins Were Stolen?

Bithumb has provided a breakdown of the 11 cryptocurrencies that it claims were stolen. They are BCH, BTC, ELF, ETH, ETHOS, GNT, HSR, KNC, OMG, VEN, and XRP. The largest damage is in BTC, which had about 13.9 billion won (~$ 12,377,255) stolen. According to Bithumb, the total amount stolen is 18,945,911,857 KRW or $ 16,892,614.

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

Compensation Plan

Bithumb has also revealed its plan to compensate all affected users. Reiterating that it takes full responsibility, the exchange announced that it is organizing “a compensation airdrop event.”

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersMembers must apply for compensation from the theft to be eligible for the distribution.

For the inconvenience of keeping customers’ coins tied up, the exchange is offering interest between the time of application to the date they are fully compensated. “The annual interest rate of 10% will be prorated over the [compensation] period, hence the longer you hold, the higher compensation becomes,” Bithumb emphasized. “The amount of cryptocurrencies held will be calculated from 8:00 PM ~ 9:00 PM (UTC+9) each day starting from the date of application until the end of the [compensation] period.”

However, the eventual selection of which cryptocurrency customers will be reimbursed in has not yet been determined, Bithumb detailed, stating:

The equivalent value of cryptocurrencies will be given away in a form of an airdrop (the type of cryptocurrency is not decided yet).

Commission Fee-Free Coupons

In addition, Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersBithumb is offering commission fee-free trading coupons for all interested customers for the inconvenience caused to them, starting on June 28.

“Commission fee-free coupons will be available for purchase each day (the coupon is zero cost, useable for 1 day and it can be purchased once every day),” Bithumb detailed, adding that once it is purchased, it does not stack and can only be purchased when another coupon expires.

What do you think of Bithumb’s theft and plan to compensate customers? Let us know in the comments section below.


Images courtesy of Shutterstock and Bithumb.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers appeared first on Bitcoin News.

Bitcoin News

Bithumb Lowers Theft Estimate – Will Fully Repay Customers Despite Deficient Insurance

June 22, 2018 |

Bithumb Lowers Theft Estimate - Will Fully Repay Customers Despite Deficient Insurance

South Korean exchange Bithumb has lowered its theft estimate from the original amount after undergoing some of the recovery process. The exchange promises to fully repay customers using its own fund even though its insurance is unlikely to cover the loss.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Theft Amount Reduced

Bithumb Lowers Theft Estimate - Will Fully Repay Customers Despite Deficient InsuranceSouth Korea’s second largest crypto exchange, Bithumb, has clarified its situation after reporting a theft on Wednesday, June 20.

Citing that it “quickly followed the procedure to immediately report the incident to KISA [Korea Internet & Security Agency] announcing that about 35 billion Korean won [~US$ 31.5 million] worth amount of cryptocurrency was stolen,” the exchange wrote:

However, as we undergo a recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence we expect that the overall damage will be less than the amount we initially expected.

The exchange is currently collaborating with the authorities investigating the theft. “We are working hand in hand with governmental institutions as well as security professionals including KISA, National Police Agency, and Ahnlab to find out the exact cause and make an improvement,” Bithumb confirmed.

Bithumb to Fully Compensate Customers

The exchange assured customers that all cryptocurrencies and the Korean won “are safely stored in cold wallet and bank respectively.” Bithumb says it “currently has about 500 billion KRW worth in a company fund,” citing the firm’s audit report as of December 31 last year on the website of the Financial Supervisory Service (FSS) showing 558 billion won (~$ 502 million) in the fund.

The exchange emphasized:

The amount of damage that occurred this time will be fully covered by Bithumb’s own company fund, hence all our customers’ assets are intact and fully secured.

The exchange continued to explain that it is “currently undergoing a total change in our wallet system in order to prevent any similar cyber-attacks as well as for our customers to trade securely and safely.” Furthermore, without giving specific dates, Bithumb revealed that its KRW withdrawal services are also being reviewed.

Insurance Unlikely to Cover Bithumb’s Loss

Bithumb Lowers Theft Estimate - Will Fully Repay Customers Despite Deficient InsuranceBithumb maintains insurance of up to 6 billion won (~$ 5.4 million), according to local media. Its policy is with Heungkuk Fire & Marine Insurance Co. Ltd. for “cyber insurance and personal information lease liability insurance,” Inews24 described on Friday. According to the media outlet, both policies cover “system loss or interruption of business due to hacking, but they do not protect the property value of cryptocurrencies.”

“The cryptocurrency loss due to hacking is not covered by insurance coverage,” the publication noted. “The cyber-hacking products of the non-life insurers have focused on leakage of personal information caused by hacking, system damage, and business interruption. If the system of the exchanges is damaged by an attack or if the customers’ personal information is leaked, compensation should be paid.”

An insurance industry official explained:

The fact that the criteria for damages compensation is unclear is that the range of disclaimers that insurance companies can cover is wide…It will take a long time for an insurance company to guarantee the loss [of cryptocurrencies].

What do you think of Bithumb’s theft and repayment plan? Do you think insurance policies should cover cryptocurrencies? Let us know in the comments section below.


Images courtesy of Shutterstock and Bithumb.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bithumb Lowers Theft Estimate – Will Fully Repay Customers Despite Deficient Insurance appeared first on Bitcoin News.

Bitcoin News

Life insurers let policies lapse and double-billed customers, California commissioner says

June 12, 2018 |

The complaints about two life insurance companies piled up: California customers said Accordia Life & Annuity Co. and Athene Annuity & Life Co. hadn’t sent them billing statements or annual reports and then let their policies lapse.

They said the companies weren’t providing electronic access to…


L.A. Times – Business

With a successful second powered flight, Virgin Galactic could take paying customers to space in a year

May 29, 2018 |

Less than two months after the first rocket-powered test flight of its suborbital spaceplane, Richard Branson’s Virgin Galactic on Tuesday completed another test and moved closer to its goal of regular tourist flights into space.

A four-engine craft with twin booms lifted off from the Mojave Air…


L.A. Times – Business

Legacy Poloniex Customers Are Complaining About Frozen Accounts

May 28, 2018 |

Legacy Poloniex Customers Are Complaining About Frozen Accounts

This past week, many users who patronize the cryptocurrency exchange, Poloniex, have been complaining about their legacy accounts being frozen for not being verified on the exchange. Complaints are piling up on social media and forums over the past couple of days, with reports of even users who have been able to get their account successfully verified through the automated process still cannot trade or access their funds.

Also read: There’s a Bitcoin Themed Card Game On Kickstarter Called ‘Bitcon’

Poloniex Customers Complain About Frozen Accounts  

Legacy Poloniex Customers Are Complaining About Frozen Accounts Back in December of 2017, the cryptocurrency trading platform, Poloniex, announced all users especially legacy accounts who were once grandfathered must verify their identity by Q1 of 2018. Soon after the exchange announced this requirement a press leak revealed the exchange was acquired by the firm Circle Financial but representatives denied the acquisition. Then a few months later in February, it was revealed Circle Financial had officially purchased Poloniex and that the firm was taking over the business. Many people believe Poloniex’s verification requirements were due to the Circle acquisition, as the Boston-based firm is very adherent to regulatory policies like AML/KYC laws. This week, many Poloniex customers are seeing their accounts frozen unless they verify their identity.

Legacy Poloniex Customers Are Complaining About Frozen Accounts
Any time a user wants to trade, or withdraw if their account is frozen this warning pops up even for those who have submitted ID. 

On the Poloniex Reddit forum, there are a bunch of complaints and gripes about the verification process. One user on Reddit named u/PauleeWorli explains he is still unable to access his account even after completing the automated process.

“I am a ‘legacy’ user on Poloniex and I was told to verify today when I logged in,” explains u/PauleeWorli. “I did that and promptly got an email reply saying I had been verified — My profile now says I have a ‘level 3 verification’ — the type that allows $ 25,000 per day.

But when I go to trade it tells me ‘account frozen’ when I try to place an order. I did make a ticket and then checked Twitter and it seems many people have the same ‘now verified but still frozen’ problem. Can anyone help me here please?

Legacy Poloniex Customers Are Complaining About Frozen Accounts
Legacy users who haven’t verified their accounts are greeted by this page.

Legacy Customers Say They Didn’t Get An Email Notification Detailing a Specific Time Limit

The Reddit post has a bunch of replies with customers explaining they are having the same issues with Poloniex even after verification. On Twitter, the same sentiment can be seen as there are many Poloniex customers grumbling about frozen accounts. One individual on Twitter explains he is angry because he wasn’t notified of the account freeze taking place this week.  

“Something is wrong, Poloniex, I clearly remember you giving warning before 2018 saying after disabling “TRADING” legacy accounts would be able to WITHDRAW their coins,” the customer emphasizes.  

Freezing suddenly? I didn’t even get an email with time limit!

Just like the many Reddit posts, there are a lot of customers on Twitter complaining about this frozen account issue. At the moment there are currently no official statements on either the Poloniex Twitter page, Reddit forums, or the website itself.

What do you think about the Poloniex freezing unverified accounts? Let us know what you think about this subject in the comments below.


Images via Shutterstock, Poloniex, and Jamie Redman. 


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The post Legacy Poloniex Customers Are Complaining About Frozen Accounts appeared first on Bitcoin News.

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