Bitmain sued for remotely controlling customer ASICs

Chris Dannen

By Chris Dannen

Two of the most recognizable names in cryptocurrency are in the news this week, neither for flattering reasons. Bitmain is facing a class-action lawsuit claiming it programmed machines to mine for the company instead of according to customer configurations, for some initial period of operation. Their IPO is rumored to have collapsed. Meanwhile, Coinbase is suffering rumors of its own, namely that low trading volumes are scuttling its latest financing round; while these rumors are unverified, the company has announced it would begin trading a broader variety of tokens.

Lawsuit Claims Bitmain Mined Bitcoin Using Customer Devices
"According to a class-action lawsuit filed in the US district court for Northern California, Bitmain has been taking advantage of its customers the past couple years in an interesting way: mining crypto for itself, using their resources, during the 'initialization' process. You read that right. According to at least one Bitmain customer and bitcoin miner, who is filing a suit for damages in excess of $5 million on behalf of miners everywhere, the initial period during which a miner is in its owners’ possession is spent mining for Bitmain’s benefit."

Coinbase continues to explore support for new digital assets
"As we announced in September, Coinbase’s goal is to offer support for all assets that meet our standards and are fully compliant with local law. Over time, we intend to offer our customers access to greater than 90% of all compliant digital assets by market cap. To make this vision a reality, we evaluate prospective assets against our Digital Asset Framework to assess factors like security, compliance, and the project’s alignment with our mission of creating an open financial system for the world."

Coinbase Looks for more Volume

SEC Delays Decision on Bitcoin ETF, Sets Deadline for Late February
"The United States Securities and Exchange Commission (SEC) has again postponed its decision on a Bitcoin (BTC) exchange-traded fund (ETF), according to an official document published Thursday, Dec. 6. The SEC set the new deadline for Feb. 27, 2019 in order to further review the rule change proposals to list a Bitcoin ETF by investment firm VanEck and blockchain company SolidX on the Chicago Board Options Exchange (CBOE)"

Unconfirmed: Insights and Analysis From the Top Minds in Crypto (Podcast)
"Events in crypto take place at warp speed. This weekly crypto podcast reveals how the marquee names in crypto are reacting to the week’s top headlines. With host Laura Shin, the guests also discuss what they’re thinking about these days and reveal what they believe is on the horizon in crypto. Disclosure: I'm a nocoiner."

Why do we take EOS seriously when it’s clearly a plutocracy?
"The idea that EOS has underlying security and trust holes isn’t a novel idea but EOS lacks the Szabo-ian social scalability other networks like Bitcoin and Ethereum cherish dearly. Due to the EOS blockchain’s reliance on human-interpreted constitutions, the trust-minimization in the system is poor. As a result, the system lacks the social scalability present in other public blockchains. Despite the failures of their experiments, the 'ever-efficient' crypto markets currently have it firmly as the 6th largest cryptocurrency by market cap. It’s clear what EOS is not: a decentralized, socially scalable smart control protocol and native internet money. It’s clear what EOS is: a heavily centralized network controlled by insiders that serves to enrich its creators and early backers."

Australia passes controversial anti-encryption law that could weaken privacy globally
"The Australian government has passed new legislation that would allow law enforcement authorities to force tech companies to hand over user information, even if it’s protected by end-to-end encryption (via BBC). The Assistance and Access Bill 2018 has been criticized by Apple as well as other technology companies and academics who argue that the legislation will weaken the data security of all Australians, with a reach that could jeopardize the data of companies, citizens, and societies around the world."

BitMEX lets you bet big on bitcoin — for a price
"Due to the risks involved in trading bitcoin swaps, BitMEX is often compared to a gambling casino where people go to lose their money. In an Unchained interview in May 2018, Hayes put it more elegantly: 'It’s more like a game of poker. We take a slight rake, or trading commission, from matching trades, so technically speaking, it is not gambling because you don’t know that you’re going to lose money the second you step onto the platform.'"