SEC flies into action over 6,000 BTC theft, charges exchange with securities fraud

Leo Zhang

By Leo Zhang

News

SEC Charges Former Bitcoin-Denominated Exchange and Operator With Fraud
(SEC Press Release)

"The SEC alleges that BitFunder and its founder Jon E. Montroll operated BitFunder as an unregistered online securities exchange and defrauded exchange users by misappropriating their bitcoins and failing to disclose a cyberattack on BitFunder’s system that resulted in the theft of more than 6,000 bitcoins. The SEC also alleges that Montroll sold unregistered securities that purported to be investments in the exchange and misappropriated funds from that investment as well."

Law professor Drew Hinkes comments on the BitFunder complaint

U.S. SEC calls for 'clearer' cyber risk disclosure from companies
(Reuters, by Peter Schroeder and Jim Finkle)

"The new guidance will mean an increase in information disclosed on cyber attacks and risks, several attorneys said."

Exclusive: Telegram is holding a secretive second pre-ICO sale
(The Verge, by Adrianne Jeffries)

"The exact amount to be raised is still being determined, according to one source, but two other sources said Telegram is estimating it will be around the same size as the first round, which would bring the total raised to over $1.6 billion before the ICO even opens up to the general public."

Ripple Paper pledges new support for $40 billion XRP
(CoinDesk, by Alyssa Hertig)

"Announced Wednesday, San Francisco-based startup Ripple is releasing two new white papers for peer review - one describing XRP's consensus algorithm in a more formal way and the other outlining a way to improve the diversity of connections of each node, the software users run to relay and verify transactions on the network."

Risky crypto bet dents Dennis Gartman's retirement account
(Bloomberg, by Lily Katz)

"For 67-year-old Dennis Gartman, the longtime publisher of a namesake daily investing newsletter and television commentator, that was putting a volatile stock called Riot Blockchain Inc. in his very own retirement account. The wager is proving to be painful."

SpaceX is about to quietly launch the first 2 of nearly 12,000 satellites to blanket Earth in high-speed internet
(Business Insider, by Dave Mosher)

"The scale of the proposal, informally known as Starlink, is incredible. In the coming years, the company hopes to launch 4,425 interlinked broadband-internet satellites into orbit some 700 to 800 miles above Earth, plus another 7,500 spacecraft into lower orbits."

Commentary

Inside Uncle Sam's secret Bitcoin hoard
(Fortune, by Jeff John Roberts)

"While exact figures are impossible to pin down, documentary evidence and interviews with current and former defense attorneys and prosecutors suggest that at least $1 billion worth of digital coins, and possibly much more, has spent time in the custody of U.S. law enforcement."

99% of the community you want to reach will never read anything on github
(Github)

Ethereum founder comments on Venezuela's petro token

Dogecoin: A cryptocurrency joke that somehow turned real
(CNET, by Mark Serrels)

"At the peak of the meme's popularity near the tail end of 2013, Palmer, an Australian marketer for one of the world's largest tech companies, made a joke combining two of the internet's most talked-about topics: cryptocurrency and Doge. It was a joke taking aim at the bizarre world of crypto and bitcoin's multiple derivatives."

Technical

Bitcoin Q&A: Secure, tiered storage system

DCR Politeia Challenge: An Overview of the Winners
(Btcmanager, by Jamie Holmes)

"The Politeia platform was launched December 8, 2017, heavily inspired by Peter Todd’s OpenTimestamps and addresses governance issues. Anyone will be able to submit a proposal for funding to develop or market Deced. Stakeholders will then vote on these proposals."

The myth of the hacker-proof voting machines
(NYT, by Kim Zetter)

"But the experts were alarmed by something else they discovered. Examining the election management computer at the county's office-the machine used to tally official election results and, in many counties, to program voting machines-they found that remote-access software had been installed on it."

Deep Fakes: A looming crisis for national security, democracy, and privacy?
(Lawfare, by Robert Chesney and Danielle Citron)

"Machine-learning algorithms (often neural networks) combined with facial-mapping software enable the cheap and easy fabrication of content that hijacks one’s identity—voice, face, body. Deep fake technology inserts individuals’ faces into videos without their permission. The result is 'believable videos of people doing and saying things they never did'."

Updates

Monero compatible Bulletproofs will, most likely, go live on mainnet this year. Twitter

Zcash is included in MIT Tech Review's Top 10 Breakthroughs in 2018. MIT Tech Review

Decred has their dcrwallet secure SPV implementation which uses Compact Filters and Fraud Proofs in a beta state. It will not require the user to trust a third party server, thus ensuring privacy and security without the overhead of a full blockchain download. Twitter

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