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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.
Theft Amount Reduced
South 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 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.
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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.
Poloniex Customers Complain 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.
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 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.
The post Legacy Poloniex Customers Are Complaining About Frozen Accounts appeared first on Bitcoin News.
In the heady days of 2017, Revolut Ltd promised it would continue to add cryptocurrency choices for its customer base. The future promise was made after its rollout of onboarding bitcoin core (BTC), litecoin (LTC), and ether (ETH) to eager users. Just this week, the England-based company made good by further adding bitcoin cash (BCH) and ripple (XRP).
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Revolut Adds Bitcoin Cash and Ripple to its Crypto Offerings
In a series of questions and answers format for their unconventional press release this week, the company asked itself “Why did you only add XRP and BCH?” The answer was “Simple – these were the two most popular cryptocurrencies our community wanted, so we rolled up our sleeves and made it happen.” They went on to stress how they’re looking to do even more crypto-related service in the future, asking customers “make some noise and let us know what you want us to add next. We’ll take care of the rest.”
London’s Revolut kept its promise. Following eager anticipation of its initial embrace of three cryptocurrencies (BTC, ETH, LTC), and successful implementation, the skyrocketing financial technology company announced this week it is now implementing bitcoin cash (BCH) and ripple (XRP) to its basket of cryptos.
The three year old digital bank has a popular prepaid debit card, peer-to-peer payments platform, and both currency and cryptocurrency exchanges for its two million customers. To stay competitive, Revolut operates a loss leader fee structure for many of its services (free). Its proprietary application allows fiat-to-crypto in over two dozen government currencies, serving over 100 countries worldwide. The company’s backend transactions are managed by crypto exchange heavy Bitstamp.
Open and Available to Everyone
“With hundreds of thousands of customers now actively exchanging cryptocurrencies in the app,” Revolut explained in a cheeky announcement, “the popular view was that we needed to add more digital currencies in addition to bitcoin, litecoin and ether. After months of debate and hard work, we’re extremely proud to welcome XRP and BCH to the Revolut app, which means you can now instantly exchange any of our 25 supported fiat currencies directly into XRP and BCH.”
And even though many establishments balk at direct crypto commerce and trade, Revolut customers will be able to use either their Mastercard or Visa regardless. Revolut does all the conversions instantly which could go a long way in enabling the currency aspect of cryptocurrency. Premium customers are provided a concierge-like service along with 1% crypto cashbacks.
“We have always believed that the world of cryptocurrencies should be open and available to everyone, and not reserved for the tech savvy and digital currency enthusiasts,” the company detailed. “So, back in December, we launched a product that would allow millions of our customers to instantly buy, hold and sell cryptocurrencies at the touch of a button. No exchanges. No private keys. No cold storage. Just instant exposure at your fingertips.”
Do you think Revolut will dive more? Let us know what you think of this subject in the comments below.
Images via Pixabay, Revolut, Bitstamp.
The post 2 Million Revolut Customers Get More Cryptocurrency Access appeared first on Bitcoin News.
GMO Internet’s cryptocurrency exchange has added four more cryptocurrencies to its loan program which allows customers to lend their cryptocurrencies to the company. The program was originally launched last month for just bitcoin (BTC) but GMO has now added bitcoin cash (BCH), ether (ETH), litecoin (LTC) and ripple (XRP) to the program.
GMO Wants to Borrow from Customers
GMO Coin, the cryptocurrency exchange subsidiary of Japanese conglomerate GMO Internet, announced this week the addition of four cryptocurrencies to its loan service which allows customers to lend their coins to the company.
The service “allows you to rent out the virtual currency held by the customer to the company so that you can receive the rental fee according to the quantity of the lent virtual currency,” the exchange detailed. GMO first introduced this service last month for just BTC.
Interested customers need to apply between May 9 and May 23. If there are more applicants than needed, the company will use a drawing to select whom to borrow from. The target currencies this time are BCH, ETH, LTC, and XRP.
About the Program
Customers can lend between 100 and 1,000 ETH; 50 and 500 BCH; 300 and 3,000 LTC; and 100,000 and 1,000,000 XRP.
The time to maturity is 150 days. Borrowed cryptocurrencies will be returned to customers in the same amounts and types at maturity.
The exchange will pay customers 2.04109589 ETH for each 100 ETH borrowed. For 50 BCH, the company will pay 1.02054794 BCH. For 300 LTC, customers will receive 6.12328767 LTC. Lastly, for 100,000 XRP, the fee payable to customers will be 2,041.0958 XRP. GMO explained that the fee “corresponds to 5% / year (tax included),” adding that taxes will also be levied on the loan fees.
Fully Licensed Exchange
GMO Coin is a fully licensed cryptocurrency exchange in Japan. However, it is one of the two licensed exchanges to receive a business improvement order from the Japanese Financial Services Agency (FSA) after the agency tightened its inspection of crypto exchanges following the hack of Coincheck in January. The other is Tech Bureau which operates Zaif exchange.
The company recently revealed GMO Coin’s financials, showing an operating loss of 760 million yen (~US$ 7 million) in the first quarter of this year. The cost of operating the crypto business rose by about 560 million yen (~$ 5.1 million) for the group from the previous quarter. As for the company’s mining operations, GMO revealed that it has mined a total of 906 bitcoins and 537 bitcoin cash.
Would you lend GMO your coins? Let us know in the comments section below.
Images courtesy of Shutterstock, Nikkei, and GMO.
Need to calculate your bitcoin holdings? Check our tools section.
The post Japan’s Internet Giant GMO Wants to Borrow BCH, ETH, LTC, XRP From Customers appeared first on Bitcoin News.
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Japanese internet giant GMO has launched a service to allow customers to lend their bitcoins to the company. Customers’ bitcoin balances will be debited from their GMO Coin trading accounts once loan agreements have been reached. This program is similar to the one launched by the hacked exchange Coincheck last year.
GMO’s New Service
GMO Coin, the cryptocurrency subsidiary of Japanese internet giant GMO, has announced a new service to allow customers to lend their bitcoins to the company. GMO Coin described:
Virtual Currency Rental Service is a service that allows you to rent out the virtual currency held by the customer to the company so that you can receive the rental fee according to the quantity of the lent virtual currency.
Interested customers can apply to participate in the program between April 11 and May 2, after which there will be a drawing. Currently, only bitcoin (BTC) will be supported. Customers need to specify the quantities they wish to lend in units of 10 BTC, with the minimum quantity being 10 BTC and the maximum being 100 BTC.
Rates and Details
GMO Coin will review all applicants and inform customers of its decisions and of the loan procedure, which is expected in early May. Once an agreement has been reached with the company, the customer’s BTC balance will be deducted. “If there is no BTC balance in the quantity required for debiting, it [the agreement] will be automatically canceled,” the company explained.
“The price of the target currency also fluctuates during the lending/withdrawal period,” GMO Coin warns, adding:
During the term of the loan, the loaned virtual currency cannot be sold or transferred.
The loan period is 90 days. On the settlement date, the company will return to the customer “the same type.. [and] the same amount” of the cryptocurrency borrowed, plus interest. However, customers can recall the loan early and “within five business days after accepting cancellation at our company, we will redeem the virtual currency less the cancellation fee,” GMO Coin detailed.
Reiterating that the interest on the loan will be paid on the settlement date of the loan, GMO Coin elaborated:
[The] Rental fee [of] 10 BTC is equivalent to 0.12328767 BTC, [which is] 5% / year (including tax) (round down to less than 1 Satoshi)…Taxes may be levied on loan fees.
“Rental fee = (loan amount × loan period (day) × loan rate) / 365,” GMO clarified, and gave an example that customers lending 10 BTC for 90 days will receive “(10 BTC × 90 days × 5%) / 365 = 0.12328767 BTC.”
Coincheck Launched a Similar Program
Other crypto exchanges around the world that offer leveraged trading have launched similar programs to borrow their customers’ coins.
In Japan, Coincheck, which was hacked in January, announced the launch of a similar service in May of last year. Customers could earn 1%, 2%, 3% or 5% annual interest depending on the maturity date of the cryptocurrencies loaned to the company. The service began with just BTC but the company later added 11 more cryptocurrency options.
However, Coincheck’s lending service was initially restricted by the Japanese Financial Services Agency (FSA), a representative of the exchange told news.Bitcoin.com at the time. The exchange then relaunched this program in June. Currently, new registrations are temporarily suspended.
Unlike Coincheck, whose exchange registration has not been approved by the FSA, GMO Coin is fully licensed. It did, however, recently receive a business improvement order from the FSA. GMO also operates Japan’s largest forex exchange called GMO Click, which Finance Magnates Intelligence says is the forex exchange that “was the undisputed leader throughout the whole of 2017, achieving average monthly volumes of $ 660.32 billion.”
What do you think of GMO’s new service? Let us know in the comments section below.
Images courtesy of Shutterstock, Coincheck, and GMO.
Need to calculate your bitcoin holdings? Check our tools section.
The post Japan’s GMO Wants to Borrow Bitcoins from Customers appeared first on Bitcoin News.
Delta Air Lines, one of the world’s largest carriers, and retail giant Sears announced that payment information belonging to hundreds of thousands of their customers may have been compromised through an online chat service.
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