Bitmain’s latest Antminer Z11 sold out in 20 minutes; Norway branch shuts down following revoke of electricity subsidies

Bitcoin mining behemoth Bitmain’s latest Z11 miner roll-out was reportedly sold out within 20 minutes after the pre-selling phase on its official website. Bitmain unveiled a new version of its Antminer Z series machines to mine Equihash-powered Proof-of-Work coins like Zcash on March 19.
Dubbed as the Antminer Z11, the new release claims to pack three times more hashing power than its precursor Z9. In a blog post, the exchange claimed,
“It is by far the leading model by performance to mine such cryptocurrencies.”
According to the Beijing-based mining giant, the latest miner offers a hashing power of 135 KSol/s and is three times more powerful than the Antminer Z9, which was released in May 2018. The post further claims that the miner saves up to 60% of electricity cost as compared to its predecessor Z9.
Antminer Z11, which uses Bitmain’s latest proprietary 12 nm chip, is equipped with a newly designed internal circuit structure with a power-efficiency of 10.50 J/KSol. Another feature that the latest version of Antiminer boasts of is ‘light’ weight, which stands at 5.4 kg despite its massive hashing capability.
Antminer Z11 will initiate the shipping process shortly, the blog confirmed.
The previous Z9 was launched at a time when the ZCash community voted against prioritizing research efforts to discourage the use of ASIC mining equipment. Talking about the huge turnout against gearing toward ASIC-resistance, Andrew Miller, the president of the Zcash Foundation, said,
“This is a fairly strong signal of disagreement. My interpretation of this is that we’re not going to make any hasty decisions like diverting all of the Zcash Foundation resources to promoting ASIC resistance.”
Earlier, Bitmain had been notoriously secretive about its operations but has now claimed to provide more transparency to the Zcash market. The blog stated,
“These commitments to transparency will continue to provide the Zcash foundation and community with the security, reliability and accessibility they desire of manufacturers.”
The world’s largest producer for ASIC machinery, Bitmain, has been surrounded with reports of facing a huge loss of approximately $500 million in Q3 last year. Also, the company was reportedly selling their old generation S15 miners at around 30% below their actual value. Samson Mow, the CSO at Blockstream, who also happens to be a Bitmain critic, had earlier tweeted that the exchange’s financials were weak.
Bitmain’s revenue and its userbase fell sharply during the beginning of the crypto winter in 2018 in a colossal difference as pictured during the 2017 bull phase when Bitmain recorded a remarkable profit with its annual profit ranging between $3 to $4 billion.
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Source: AMB Crypto

Cardinal RAT malware strikes two cryptocurrency firms in Israel

One of the main concerns of the cryptocurrency space has always been hacking and malware. Recently, a research division of Palo Alto networks, Unit 42, detected a malicious malware targeting two Israeli fintech and cryptocurrency trading software companies. The malware in question was Cardinal RAT malware aka Remote Access Trojan, which was initially discovered in 2017.
The report by Unit 42 read,
“This malware family had remained undetected for over two years and was delivered via a unique downloader named Carp Downloader.”
It reported that the research division continued to keep tabs on the malware since it was first discovered. This was the main reason why they were able to discover “a series of attacks using an updated version of Cardinal RAT.” The report further stated that that there were a “series of modifications” in the RAT, which could have been made in order to “evade detection,” and also hinder the analysis.
The report added,
“We witnessed attacks targeting the financial technology [FinTech] sector, primarily focused on organizations based in Israel. While researching these attacks, we discovered a possible relationship between Cardinal RAT and another malware family named EVILNUM […] a JavaScript-based malware”
With this malware, the attacker can gain access to the victim’s personal information, capture screenshots, clean cookies from browser, uninstall itself from the victims device, execute command, recover passwords, download and execute new files, and update settings.
Even though the details pertaining to the two companies that build software for the Forex and cryptocurrency trading firms have not been disclosed, the implications of this malware attack could be disastrous. This entirely depends on the platform’s main operations, such as whether they had information of customers stored in their devices.
In a statement to thenextweb, Unit 42 stated “that the malicious files find their way onto machines through lure documents attached to spam messages that were sent to individuals thought to operate as Forex and cryptocurrency traders.”
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Source: AMB Crypto

IBM VP of Blockchain & Digital Currencies: ‘We’re here to help change the landscape of payments and financial services’

Jesse Lund, VP of Blockchain & Digital Currencies at IBM, spoke about the company’s launch of IBM Blockchain World Wire in 72 countries and in 47 currencies, during the Money 20/20 summit. At the event, he spoke about what the development meant for financial services, and also IBM’s future trends.
The World Wire broke out yesterday, with a majority of people paying close attention to Stellar Lumens [XLM], the eighth largest cryptocurrency. This was because the cryptocurrency will soon be used for real-time transaction settlement, along with the US dollar.
Jesse Lund said,
“What it means is that IBM is open for business when it comes to payments. And I think as an industry that means you have an 108 year old company that really knows how to run systems with presence in 170 countries around the world. So, we’re here to help change the landscape of payments and financial services.”
This was followed by Lund discussing whether he was bullish on the impact of blockchain technology on the financial services industry. He stated that he was “very bullish,” adding that this was just the beginning. He further stated that the industry was “at the tipping point” of a total transformation of financial services.
“We’ve seen disruption in other industries, retail for example. This is just a beginning of disruption in the most positive sense for banking and for an financial services”
Furthermore, he also spoke about future trends for IBM, in terms of disruption. He stated that banking and financial services are IBM’s largest client segment around the world. He added that this is the firm’s biggest revenue portion, which sums up to around 40 percent globally. He said,
“what we want to do is not compete with our clients but help them to actually make that transformation into the future. And we think the future is focused on the digitization of real-world assets the ability to make money move without friction to make money move as fast as information like as fast as emails move today and so we’re just at that very beginning point”
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Source: AMB Crypto

Ripple’s XRP on adoption spree; Toronto-based Coinberry adds cryptocurrency

Coinberry, the Toronto-based, FINTRAC-registered cryptocurrency trading platform, announced the addition of XRP, a cryptocurrency on a massive adoption run lately. With the latest development, Coinberry has enabled the trading of all four of the world’s largest digital assets, on its trading platform.
Coinberry posted,
Source: Twitter
Ripple’s native token has witnessed widespread adoption, both by institutional players like banking establishments, and payment networks, who plan to leverage its speed and scalability. In a recent poll by UK-based firm, PayGlobal, XRP was voted as the most sought-after crypto by the community. This resulted in the payment company prioritizing the digital coin, XRP, over other cryptocurrencies.
The coin further gained popularity and wider access after being added by exchanges like Binance and Coinbase. Last week CZ’s Binance announced support for XRP on its Trust Wallet, which already had support for Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], Bitcoin Cash [BCH] and other ERC 20 tokens. This enabled the exchange’s wallet users to access the digital coin via credit card.
Coinbase and Coinbase Pro had previously listed support for XRP on its platform, along with other major crypto assets such as Bitcoin [BTC] and Ethereum [ETH], following the launch of its new Wallet App.
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Source: AMB Crypto

Gemini is going to be as successful as Amazon in 10 years, says Bitcoin billionaire

Cameron Winklevoss and Tyler Winklevoss, aka the Bitcoin billionaire brothers, spoke about their start in the cryptocurrency space and Gemini’s future, in an interview with The Daily Telegraph. The Winklevoss brothers also spoke about Facebook Coin, the cryptocurrency that will be launched by Facebook.
Cameron Winklevoss had stated that they were first made aware of cryptocurrency in 2012, during their holiday in Ibiza, reported uToday. The report further stated that the brothers were asked whether they knew about “secretive virtual money”, which was traded only by a few over the Internet. Post this, the brothers decided to invest the money they had made via Facebook after they realized that crypto could be a make-or-break-it investment.
Furthermore, the brothers spoke about the looming Bitcoin bear market, which slashed the valuation of BTC by over 80%. On this, Tyler stated that they do not keep tabs on Bitcoin’s price on a daily basis. They added that they are “still doing better”, taking into consideration that they had invested in the largest-cryptocurrency when it was trading at around $18.
This was followed by Cameron suggesting that investors who cannot deal with the price movements should rather stay away from investing. He also stated that the exchange launched Gemini “would be as successsful as Amazon in ten years”, reported uToday.
When asked about Facebook’s move in the cryptocurrency space, Tyler stated that it is “cool”. Whereas Cameron stated that this would be “a really positive thing” for the cryptocurrency space.
On the same subject, the brothers had previously stated:
“Money is the oldest social network and arguably the strongest and crypto is potentially one of the strongest networks of value ever in the world and will continue to do so. So, hopefully, pioneers in that space to some extent.”
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Source: AMB Crypto

Mark Karpeles is responsible for failing to protect funds, says Bitcoin Cash’s Roger Ver

Roger Ver, the CEO of and a well-known Bitcoin Cash proponent, recently spoke about Mark Karpeles. Karpeles, the former CEO of Mt. Gox – the infamous Bitcoin exchange, made headlines this week after he received a suspended sentence from the Tokyo District Court.
Karpeles was found guilty of altering numbers in the firm’s financial records and was acquitted of all other charges, including embezzlement of funds. The verdict came as a relief for the CEO as he would have faced up to ten years in prison if the alleged embezzlement charges had been proven. He was charged with the embezzlement of around $3 million in customer funds.
The Tokyo District Court ruled that “he had acted without ill intent,” reported Bloomberg. Additionally, he was given a two-and-a-half year suspended sentence, which he will have to serve if he committed another crime within the next four years.
The court also stated,
“The charge of electronic record tampering is true and deserves punishment, but there’s no criminal evidence of embezzlement […] there is no excuse for the defendant, who is an engineer with expert knowledge, to abuse his status and authority to perform clever criminal acts.”
Roger Ver, in an interview with Decrypt, stated that Karpeles was “responsible for not doing a good job protecting the funds from the hackers”. Nevertheless, the Bitcoin Cash proponent also clarified that he held the hackers responsible for stealing the funds.
Mt. Gox was once the biggest Bitcoin exchange platform in the world, controlling over 70% of all BTC transactions. However, the exchange fell victim to a hack, and subsequently lost control of over 7% of all Bitcoins in circulation. This resulted in the platform shutting down its operations and declaring bankruptcy.
Presently, Mt. Gox is undergoing a civil rehabilitation program under which victims of the platform will be repaid their losses with the Bitcoins that were discovered by Karpeles in cold wallets. Ver is noted to be one of these victims, holding “life-changing amounts of Bitcoins” on the exchange, reported Decrypt.
Further, with respect to Karpeles’s suspended prison sentence, Ver said that it was only for “those who are physically dangerous towards others”. He also suggested that people should be punished after they were convicted, not before, in light of Karpeles being interrogated for 50 days in a row.
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Source: AMB Crypto

Bitcoin developer claims Wasabi wallet users are under a ‘somewhat successful’ dust attack

On March 13, Nopara73, an employee at Wasabi Wallet and a Bitcoin developer, announced on Twitter that users of Wasabi were under a dust attack. He also added that the attack was successful and that the dust would be hidden in the next release.
He stated,
“Wasabi users are under dust attack and it seems to be somewhat successful. About half of them don’t mind joining together some of their dusts, exposing the links between their mixed outputs (not the mixes though.) I’ll hide the dust in the next release.”

According to a Medium article by Matt B, dust is the “creation of minuscule transactions,” used to spam Bitcoin network or to “pepper” addresses with “tiny UTXOs.” Alpha Zeta, a Twitter user, explained that a dust attack was similar to a scenario where a third-party is placing a tracking device on a user’s UTXOs.
Here, a small amount of Bitcoin is sent to the user’s wallet, which can be used to track payments made by the address with those small amounts. She further added that it was an attempt at deanonymizing users. However, Nopara73 stated that this attack was different from before,
Source: Twitter

drbruyne, the moderator of r/Monero said,
“Even though dust attacks are technically still feasible in Monero, they are significantly more difficult to execute because, in Monero, public addresses do not appear on the Blockchain. By contrast, in Bitcoin, due to public addresses being visible on the blockchain, this attack is easily performed and can basically affect every address.”
SamsungGalaxyPlayer, an XMR contributor, stated on Reddit that a similar attack was possible on Monero. However, such an attack would be “far less significant,” the contributor said. The Redditor stated that since the addresses are not visible when it comes to Monero, dust attack can’t be used to target a random user.
“2. Monero’s ring signatures provide some built-in protection. It’s as if every dust output is mixed. The closest thing we have to worry about is the “poisoned output” (EAE) attack […]”

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Source: AMB Crypto

Litecoin [LTC] creator Charlie Lee: People deleting Coinbase don’t actually use it

Charlie Lee, the creator of Litecoin, spoke about the recent events surrounding Coinbase, in the seventeenth episode of Magical Crypto Friends. The podcast also included Riccardo Spagni aka Fluffypony, Samson Mow, and WhalePanda, the rest three members of Magical Crypto Friends.
Coinbase, one of the biggest exchanges in the U.S., has been in the headlines since the announcement of XRP listing, however, the negative news outweighed the positive ones. The negative fame started with rumors over insider trading, which broke out days after the platform listed the third-largest cryptocurrency by market cap. This gained momentum with the acquisition of a blockchain analytics firm, Neutrino, as it was revealed that the firm had an association with Hacking Team. This report led to the start of the #DeleteCoinbase movement.
Furthermore, the Director of Institutional Sales, Christine Sandler, stated that they were aware of the Neutrino-HackingTeam association, in an interview with Cheddar. To make things worse, she stated that they acquired the blockchain analytics firm because their “current clients were selling client data to outside sources”.
The controversy surrounding Coinbase-Hacking Team was soon addressed by Brian Armstrong, the CEO of Coinbase. In a blog post, he stated that the firm decided to let go of all the members previously associated with Hacking Team.
Charlie Lee said on #DeleteCoinbase,
“I thought like people have been deleting Coinbase for a while now right. I guess this Neutrino thing really brought this back out and people are like more upset about Coinbase and actually going out and deleting their accounts. But, you know, from my point of view, people who actually delete Coinbase, don’t actually use it anyways, right. So, its not really going to affect anything.”
This was followed with Riccardo Spagni, the lead maintainer of Monero, speaking about the topic. He said:
“I don’t think that the people that are deleting Coinbase are going to have more than a very minimal impact on the bottom line. […] I do think that there would be a trickle-down effect from the people that are deleting Coinbase […] So it is atleast going to provide a slow shift away from Coinbase as a first point of Contact for people wanting to get into Bitcoin.”
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Source: AMB Crypto

Stellar Lumens [XLM] makes it to Coinbase Pro; order books for three trading pairs initiated

Coinbase Pro, the US-based digital asset trading exchange, announced support for Stellar’s native crypto asset XLM on its platform recently. The listing will enable users on the platform to deposit their XLM approximately 12 hours prior to the initiation of full trading. XLM inbound transfers to the exchange would be accepted after 1 PM PT on March 13.
Brian Armstrong revealed the latest development through his official Twitter handle,
Source: Twitter
According to the official blog post, the XLM listing will be immediately available at all the jurisdictions supported by the exchange, excluding the state of New York.
After an adequate volume of XLM is delivered on the Coinbase Pro platform, order books for three trading pairs XLM/USD, XLM/BTC, and XLM/EUR would be initiated. To send XLM to Coinbase Pro, a Memo is required, falsely inputting, which could lead to the permanent loss of funds. Furthermore, funds sent without a Memo will not be received.
The blog post also detailed the stages of the launch, the first being the Transfer-only phase in which consumers will be able to deposit XLM on their exchange wallet. This phase will be live for 12 hours and order books will be in a transfer-only mode and no orders will be filled during this stage.
This phase will be followed by the Post-only stage, during which users on the platform will be able to post limit orders. In this stage, there will be no completed orders, and order books will be in a post-only mode for a minimum of 60 seconds.
The third is the Limit-only stage, which will last for approximately 10 minutes. Limit orders will be completed in this mode, however, consumers will not be able to submit market orders.
In the fourth and final stage, full trading services will be made available for users.
Stellar’s native cryptocurrency XLM drives the payment network for the open-sourced and decentralized protocol. Recently, XLM exhibited a sharp surge of around 30% in just 48 hours in a bearish market. The crypto-community associated the price surge to the coin’s logo modification. The foundation also revealed that its official rebranding was set to launch in May this year.
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Source: AMB Crypto

Bitcoin [BTC] and other cryptocurrencies markets are brand new, says Sogoloff

The entire cryptocurrency community has been waiting for institutional investors to step into the cryptocurrency space for a long time. This drive grew with announcements made by institutional moguls such as Intercontinental Exchange and Fidelity. However, despite the interest of these institutions, the space is yet to witness a massive adoption by institutional investors.
In an interview with Ran NeuNer for CNBC Crypto Trader, Dimitri Sogoloff, the Founder of Nexyst, spoke about the reason why institutional investors were hesitant to invest in the cryptocurrency space.
According to him, institutional investors are worried about the market risks associated with the cryptocurrency space, along with associated infrastructure and operational risks.
He went on to say that this is quite different in mature markets as they have already solved most of the risk factors. However, this situation is different from the cryptocurrency space as everything is “brand new”.
This was followed by the founder speaking about whether the total risk of the asset class was summed up by volatility and adoption, and infrastructural and operational risks. He said:
“Total risk of any investment including of course crypto investment that part is the most difficult to quantify there is no actual number that you can put to link to an operational risk of any investment.”
He further added:
“With crypto, everything’s brand new so it’s a really tough proposition for a large institution to accept an unknown risk that goes into this formula and then they would really have no idea how much risk is is attached to their investment.”
Furthermore, Dimitri stated that cryptocurrency is “a little bit” away from wide adoption by institutions. However, he added that they are going to step in, but there were problems associated with custody, settlement, security, compliance, and regulatory framework. He said:
“No institution is going to deploy a meaningful amount of capital and a meaningful amount of capital means roughly one to five percent of their assets”
This was followed by the host asking about what the numbers would look if 1% of institutional investors portfolio is in cryptocurrency. He said:
“The numbers are staggering these are probably 30 to 50 trillion dollars in assets across the world”
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Source: AMB Crypto

SWIFT’s Managing Director: We don’t think DLT or blockchain is the answer to every problem

Lisa O’Connor, the Managing Director of Asia Pacific at SWIFT, spoke about the company’s stance on Distributed Ledger Technology or blockchain technology, in an interview with Ran Neuner for CNBC Crypto Trader.
The Managing Director began the interview by briefly speaking about the core role of SWIFT. SWIFT, aka Society for Worldwide Interbank Financial Telecommunications, is one of the largest payment messaging networks around the world, enabling instant payments via a standardized system of codes.
O’Connor was asked whether the main role of SWIFT was bank-to-bank foreign exchange transfer. She stated that the organization was “much larger” than just bank-to-bank foreign exchange transfer, adding that it was, in fact, a corporation with over 11,000+ members globally. She further stated that these members were a collaboration of banks, brokers, asset managers, and corporates. She said,
“We’re owned by those members which is what makes this a cooperative by nature. we are also the registration authority for the way that financial institutions speak to each other called ISO. so ISO is the standard.”
This was followed by the Managing Director speaking about SWIFT using blockchain or Digital Ledger Technology [DLT]. She stated that SWIFT is “selectively looking at the use” of DLT.
The managing director went on to say,
“So, they’re looking at how do they leverage DLT for certain business problems. We don’t think that DLT or blockchain is the answer to every problem, what we like to do first is look at the problem and then apply the right technology as the solution.”
O’Connor stated that the firm was looking into using DLT/ blockchain solutions for proxy voting in Singapore, which, according to her, “is a big industry challenge.” She further added that SWIFT worked with large market infrastructures such as the Australian Stock Exchange, which is using DLT solutions for their new clearing and settlement system. She added,
“[…] hat we would like to be in the future is a platform that helps to connect our members up to the best of these blockchain solutions. so we’re working with for example R3 who’s been doing a lot of work as it relates to trade finance and how do we link together that trade finance value chain to the payment value chain that underpins at all.”
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Source: AMB Crypto

NEO block production gets delayed by approximately 127 minutes

Zzzoen, a Redditor, recently pointed out that NEO’s block #3467252 took over 152 minutes to be produced, leading to the cryptocurrency community speculating the reason and some even calling the project a scam. However, the Neo community soon dismissed the allegations by providing a suitable explanation.
NEO is currently the seventeenth largest cryptocurrency by market cap and a leading smart contract platform. The project stood out in the space because of the implementation of the Byzantine Fault-tolerant consensus mechanism, which was later upgraded to Delegated Byzantine Fault-tolerant [dBFT] consensus mechanism. Additionally, NEO was one of the first projects to adopt a dual-token economy, NEO and GAS.
The Redditor stated that this post was deleted from the Neo sub-reddit, raising concerns over centralization from other communities. The Redditor said:
NEO block production delayed by over an hour | Source: Reddit
However, another Redditor, Dreit, soon cleared the air regarding the delay of the block production.  The Redditor stated that the reason why the block production was pushed to over an hour was because of NEO’s consensus mechanism, adding that NEO follows an exponential block protocol.
NEO consensus basics | Source: Reddit
Edgegasm said:

“NEO’s consensus mechanism requires nodes to come to an agreement before a block can be added. If for some reason they cannot come to an agreement, it will delay the next block until they can. It’s a trade off you make to avoid forks and provide transaction finality.”

Source: Reddit
Xenzor, a Redditor said:
“My guess is neo 2.10 is getting pushed to consensus nodes. We knew this was coming for about 3 weeks but no exact time frames […] Still rather a minor block issue for an hour or so than some other chains had recently with major exploits and stolen funds lol. Anyway. This stability issue is resolved in the next version 2.10.0. So essentially a non issue after the rollup.”
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Source: AMB Crypto

Gemini Exchange’s Winklevoss brothers ask users to trust them with storage of private keys

Gemini Exchange’s famous twins, Cameron and Tyler Winklevoss have said that storing private keys can be a problem for some users, asking users to trust them with these keys. In a recent video uploaded on YouTube by Transhumanism Videos, one of the Winklevoss brothers claimed that most people failed to secure their e-mail accounts.
Terming that as a ”fact,” he went on to say that people shouldn’t try to store their private keys, considering they are “longs strings of digits”. Hence, the Winklevoss brothers said, storing private keys should be left to them.
The duo asserted that most people who owned private keys ”screw up” and lose the password to their private keys, or lose their laptop. They added that the exchange was designed to make storing keys and trading with the digital asset a seamless experience.
Citing the fact that while some people want to store their keys with an institution ‘that they trust’ and some want to keep it with themselves, one of the brothers said,
“..the coolest thing about cryptocurrency though is that you can have it both ways. If you want to store your private keys, you can do that, if you want to use Gemini, you can do that.”
Further, when asked if the exchange company posed as a threat to banking institutions, the duo said that they viewed the technology protocol powered Gemini as a crypto-native company, and not a bank.  Hence, they did not pose any threat to banks. They specified that the company was trying to extend the financial system by acting as a conduit between the existing world and the new world of cryptocurrency. He also said that the banking establishment and Gemini work together, despite having widely different business models.
The brothers said,
“We have taken US Dollars and put them in the Blockchain in the form of Gemini Dollar Token [GUSD] enabling users on the platform to send dollars to any part of the world.”
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Source: AMB Crypto

Texas Wants to Ban Anonymous Crypto: Is This a Blow to Bitcoin as Well?

Texas Republican Rep. Phil Stephenson has introduced a bill-draft that would require Texans to identify themselves before they use crypto assets like bitcoin.
In Texas House Bill No 4371, Stephenson took the institutionalization of digital currencies to an altogether new level. His bill recognized the blockchain technology as a tool that enables users to create financial aliases.
And, to stop that from happening, the lawmaker proposed that Texas educate its law enforcement agencies on digital currencies and promote the use of verified identity digital currencies.

Congratulations #Texas, you're the first state to formally attack and attempt to ban anonymous use of #cryptocurrency in the US.
— Drew Hinkes (@propelforward) March 10, 2019

If enforced, HB 4371 would make a digital currency transaction illegal if the involved sender and receiver are now known to each other. The bill would encourage state departments of banking, securities boards, and others to provide tools to users to distinguish between verified and unverified crypto users. Excerpts:
“[Texas] may not use a digital currency that is not a verified identity digital currency — The Texas Department of Banking, Credit Union Commission, Texas Department of Public Safety, and State Securities Board shall collaborate to encourage the use of verified identity digital currencies.”
Deep Impact or Fizzling Firecracker
With HB 4371, Rep Stephenson might believe that they are on the right course of crypto regulation. If all the cryptocurrency users agree to register their digital currency identities, it will form a bank-like financial system, bringing more stability and adoption to the cryptocurrency space.
But, despite the underlying goodwill, Rep Stephenson hasn’t answered how exactly he would have law enforcement enforce his bill.
To begin with the first problem, HB 4371 requires Texans to be in their best honest avatars. The bill asks them to register their digital currency identities with the government consciously. It is the same as asking Redditors to give up their anonymity, which they fruitfully enjoy because it allows them to say anything they like on social media.
A more relatable instance, however, is cash. How many people have turned up before the government with their illegal cash holdings in the past century?
So, the first issue that HB 4371 might run into is the nature of people itself. Meanwhile, the second one is bigger.

Sure. Great efforts, user protection over everything, but might be not of a priority, also constitution wise, one can lay the case that cryptocurrency is essentially communication protocol, anonymous is essentially means encrypted, all forms of free speech, don’t be like France.
— Omar Shibli (@omarshibli) March 10, 2019

There is no way Rep Stephenson’s HB 4371 can stop people from downloading crypto wallets and creating hundreds of anonymous pseudo-identities. Even if his enforcement agencies manage to put a tracker on every public IP in Texas, there is no way they can outsmart people who use VPN services, Tor, etc.
One can take BitTorrent as a bright example. Texans could still be downloading pirated movies and music from the world’s most prominent file-sharing protocol with their servers located somewhere in China – without being caught.
The question then arises is that why a lawmaker would spend vast amounts of resources for catching petty crypto users, primarily when he could utilize the same taxpayer fund to catch giant banking scammers.
Inter-regulatory Cooperation
And then comes the mother of all problems: loose overseas regulation. Users can transfer ownership of digital currencies to anyone in the world without any identification process. That’s the beauty of a decentralized public ledger – it removes roadblocks that are otherwise rampaged in the mainstream banking sector.
So maybe, Texan authorities might have to end up working with a fellow regulator whose country, say, has not regulated crypto assets. Imagine the number of legal barriers it would create.
Japan serves as a good case study to understand the situation further. In May 2018, the country’s Financial Services Agency admitted that it couldn’t do anything substantial about an alleged crypto-enabled 30 billion yen money laundering scam because of lack of regulatory oversight abroad.
“It’s nearly impossible for Japan to handle the problem alone. Even if the trade is restricted to only domestic transfers or monitoring is enhanced, it’s still not enough to counter money laundering,” the FSA said, adding:
“It would be best if all the group of 20 industrial and emerging nations and regions (G-20) would take the same steps toward prevention.”
Even with all the good intention, Texas’ HB 4371 is no less than a toy gun. One can imagine how seriously it could blow off bitcoin. Good luck enforcing that anyway, Rep Phil Stephenson. Meanwhile, listen to Andreas Antonopoulos:

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Source: New

QuadrigaCX: Redditor claims exchange used to trade against its customers without assets to back them

Earlier this year, QuadrigaCX, a Canadian exchange had grabbed headlines after the untimely death of its CEO, which led to a large amount of funds becoming inaccessible. The exchange is now back in the news after allegations of trading against its own customers.
The exchange became a common name in the crypto-space after it claimed to have lost access to its cold wallets after CEO Gerald Cotten’s death. It was claimed that Cotten alone had access to these cold wallets, following which the exchange faced a loss of $190 million, owned by around 115,000 customers.
Adding fuel to the fire, a Reddit user, theSentryandtheVoid, alleged that the exchange used to trade against its own customers on social media. The Redditor stated that the exchange created fake accounts, which were then used to trade against its own customers. More so, these trades were executed without any assets to back them.
The Redditor said,
“I haven’t seen anyone commenting on this yet, but this is probably the most incendiary information revealed from this whole sordid process to date. Even worse than shipping all the crypto to trade with on other exchanges, even worse than the cold wallet balances being 0.”
Source: Reddit
Public Information on Quadriga Fintech Solutions Corp | Source: Sedar
The Redditor’s claims were backed by a Cornell University Professor, Emin Gun Sirer, who said,
“Turns out that QuadrigaCX traded against its own users, and in the crypto world, this is seen as a totally normal thing that just happens at pretty much every exchange.”
–mv–another Redditor said,
“All possible ways to scam clients, create fake volumes and have more clients signup/deposit money in the exchange. This should be a criminal case/investigation and Interpol search for Gerald, assets freezing for all owners/co-founders and maybe close relatives.”
Barsoapguy, a Reddit user said,
“this is a par the course for a lot of exchanges .No one should be surprised by this …oh wait none of you ever bothered to do even the least bit of due diligence when it comes to crypto.”
Earlier this week, the exchange was in the spotlight again after the wife of the deceased CEO demanded repayment of $300k in court, citing legal and managerial costs. The exchange platform was also granted an extension of 45 days to recover the missing funds by the Nova Scotia Supreme Court Justice.
The post QuadrigaCX: Redditor claims exchange used to trade against its customers without assets to back them appeared first on AMBCrypto.
Source: AMB Crypto