A cryptocurrency whale has just moved a ball-busting 44,000 BTC (worth more than $310 million) and they paid a minuscule $0.32 in Bitcoin BTC transaction fees to do so.

The hefty movement was detected by Twitter-based transaction monitor @whale_alert this afternoon. Bitcoins miners included it in block #605230.

According to Blockchain.coms Bitcoin explorer, the fee paid was just 0.00004551 BTC ($0.32). This isincredibly low, especially when compared to large movements previously detected.

Its even more impressive when you consider that whoever sent the Bitcoin had no need to request permission from any bank, financial regulator, or world government to send hundreds of millions of dollars worth of digital cash.

Unlike the traditional banking system, Bitcoin users are afforded the freedom to choose their own transaction fees.

Transactions with higher fees attached are generally processed quicker than those with smaller ones.

In July, one Bitcoin whale moved $450 million multiple times, paying roughly $400 in fees for each transaction.

As well, Hard Fork reported that another big player had shifted $1 billion worth of Bitcoin in September. They paid $700 in fees to the network.

Have the whales figured out theyve been overpaying?

Published November 24, 2019 16:51 UTC

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Bitcoin whale moves $310M cryptocurrency fortune for just $0.32

It was a gloomy start of the broadercryptocurrencymarkets as the prices of bitcoin dropped to below 6800 levels on early Asia Monday, which came after four consecutive weekly losses and sent BTC back to the mid-May levels. Meanwhile, weve seen red across the board in the altcoin space, with ETH and XRP down more than 7%, NEO slumped 11%.

The bearish sentiment is expected to remain intact as OKExs data shows that futures traders have shown less optimistic about where bitcoin prices will finish by the year-end. However, other data suggest that near-term selling pressure has been somewhat eased. While the risk-off appetite persists in the crypto space, the Fear & Greed Index has reached 17, the lowest since late September, indicating that investors could be overly worried about the market.

Looking ahead, OKExTechnicals expects the market will show signs of stability after a series of selloffs as the selling pressure absorbed. Although the short term outlook could still be bumpy, the recent corrections could create buying opportunities for long-term HODLers.

Bitcoins hash rate has back to recent lows after a short-term rebound. Fresh data shows that the BTC hash rate has dropped to below 85,000,000 tera hashes per second, thats the lowest in more than 2 weeks. At the same time, the network difficulty has slightly increased over the weekend. Weve explained that the high network difficulty could increase miners selling pressure, which could be part of the reasons behind the recent BTC selloff. Crypto Analyst Charles Edwards believes that the possible miner capitulation could create new opportunities.

Institutional asset managers have been shorting BTC, thats according to the newly released Commitment of Traders from the CME. Data shows that as of last Tuesday, asset managers have been doubled their BTC short positions, while leveraged names have slightly increased their longs.

South Korea is set to boost its blockchain investment. ZDNet Korea reports that the countrys ministry of science and technology has planned to invest USD 382 million in over 6 years, to leverage the emerging technology to help its economic growth.

The US SEC should review its hard stance on creating bitcoin ETF, thats according to Wall Street veteran Dave Weisberger. The former Citigroup MD and the architect of its global market making system said, the SEC shows its bias by holding bitcoin to a higher standard given that bitcoin is neither more subject to potential manipulation nor operates in a market that is harder to monitor.

JP Morgan is reportedly considering creating a blockchain-based automobile inventory system aim to increase the efficiency of the commercial lending process. The project came out of the companys patent-pending distributed ledger-based floor planning methods.

BTCUSDhas given up all its gains from the October rally and fell back to the downward channel which established since late June (red line), a death cross has formed earlier last week.

An imminent rebound should not be ruled out. The RSI, ultimate oscillator, and stochastic oscillator all flashed oversold signals, as the pair have approached the lower end of the channel (blue lines). The pair also went into similar situations back in late September and late October (yellow boxes), and the price has rebounded when all threeindicatorshave hit the oversold levels.

On top of the oversold signals,OKExBTC Long/Short Ratio (figure 3) shows that most of the short positions have been closed, an environment that usually able to stir positive bias.

However, OKExs quarterly futures have been trading in discount, indicating that certain pessimistic sentiment remains among futures traders.

Despite the recent bearishsentiment,bitcoinis remaining in a bull run over a longer-term perspective. Figure 4 is a good example to remind HOLDers to focus on the bigger picture.

Key levels: 6276, 7112.

Figure 1: BTCUSD Daily Chart (Source: FX Street)

Figure 2: OKEx BTC Quarterly Futures Basis (Source: OKEx)

Figure 3: OKEx BTC Long/Short Ratio (Source: OKEx)

Figure 4: BTC Performance Since 2H15 in Log Scale (Source: FX Street)

While major altcoins have been suffering some double-digit losses, some crypto-to-crypto pairs could present alternative opportunities, and ETHBTC could be one of them. The pair has been moving in an upward channel since September, and it has been approaching the lower end of the channel.

The ultimate oscillator also produced some higher lows, in-line with the price actions. If the weakness in BTC further extends, this pair will be interesting to watch.

Figure 5: ETHBTC Daily Chart (Source: FX Street)

LTCBTC could be another crypto-to-crypto pair to watch during this round of BTC selloff, as LTC generally suffered less than BTC.

The pair has reached its lower end of theBollinger Bands, indicating a short-term rebound could be in sight, however investors should not expect a trend reversal at this point as the pair largely remained in a downtrend.

From a medium-term perspective, the pair has been traded within a range (green lines) since September, any significate rebound from this point could give another opportunity to short the pair.

Figure 6: LTCBTC Daily Chart (Source: FX Street)

XRPUSDhas reached a record intraday low of 0.199 in the early Asia Monday session, plummeted over 10% at the time of writing.

Again, the November selloff has put the pair in the oversold area, and a short-term rebound should not be ruled out.

Its key to see if the pair can produce a daily close above 0.2024, which is the low back in late September.

Figure 7: XRPUSD Daily Chart (Source: FX Street)

This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

source:fxstreet

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The cryptocurrency sector is definitely facing a lot at the moment. There are controversies surrounding the cryptocurrencies that are released by central banks. This is not looking good as Bitcoin lost more than a fifth of its value in the past 30 days alone.

As a result of the fact that Bitcoin has maintained a trend with equities, the recent development is going to be worrisome for many stakeholders. An even more interesting issue relating to this is whether Bitcoin can be considered a measure of risk or if it is a recipient of risk avoidance itself. Truly, in the cryptocurrency sector outside the United States, the widely-held view is that cryptocurrencies are secure. Some believe that they are so secure that they have compared them to gold.

Upon taking a closer and non-sentimental look, it becomes apparent that Bitcoin is far from being safe as investment vehicles. This is not applicable to Bitcoin alone but all kinds of cryptocurrencies. These digital currencies have not been successful in achieving the aims and lofty objectives that they were created for in the first place. This is because they are not being used as a typical means of exchange in everyday transactions.

The plan was for these cryptocurrencies to replace fiat currencies but that is clearly not the case. In fact, only a handful of retailers accept them and even far fewer customers make use of them regularly. This is not to even add to the fact that the costs of the transaction with cryptocurrencies are still very expensive.

There are some other reasons as to why cryptocurrencies are still rejected by most of the population. The complexity of the technology that drives cryptocurrencies is far from being attractive. For so many users, to set up their own crypto wallets is just too much hassle. Even worse is the fact that they have to be jugging crypto prices in their heads every time.

Hence, there is really no ease of use when it comes to cryptocurrencies. It has been a major obstacle to the universal use and acceptance of Bitcoin and other cryptocurrencies. Only time will tell if this is a trend that will change for the better or for worse. But that is not even all.

The system that the whole cryptocurrency niche is built upon is not as strong or reliable as many would want to think. For example, several crypto exchanges are often targeted by hackers and ransom takers. In fact, authorities in different countries can close them down at any time and for any reason. So, there goes the claim that cryptocurrencies are all about security.

When also viewed as an asset, one sees clearly that Bitcoin cannot just match up with gold. There is strictly no basis for comparison. This is not to say that Bitcoin cannot be good as a source of diversified portfolios but it is not just in the same category as gold.

The post Government Piles Pressure on Cryptocurrency Sector as Bitcoin Slumps appeared first on InsideBitcoins.com.

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Luke Vanna and the Bitcoin.com car are competing for top honors in the Australian Toyota 86 Racing Series. Sports partnerships like this can introduce cryptocurrency to new audiences as well as attract more businesses to join the ranks of the many merchants already accepting bitcoin cash across the country.

Also Read: Bitcoin.com to Launch $200 Million BCH Ecosystem Investment Fund

This weekend, Luke Vanna will be competing in a car exclusively branded with Bitcoin.coms logo and colors in the final round of the Australian Toyota 86 Racing Series at Newport. The Australian racer currently sits fifth in the championship rankings, and could potentially move into the top three this weekend with 300 points up for grabs. He continually places high in Australian racing ranks, and maintains a steady social media following. These factors present him as a great ambassador for Bitcoin.coms effort to advertise to new markets.

Over the course of 2019, Luke has been helping build the Bitcoin.com brand across Australia at various race events on the Gold Coast and in Melbourne. He has participated in on the ground promotions where he meets people at public events, and promotes Bitcoin.com through his 16,000+ Instagram fanbase. Additionally, the racer has recently secured the services of the Norwell motorplex to offer attendees the chance to win a prize of a days training session at the world class motorway, with Luke being the trainer for the session.

What a privilege it is to be partnered with a global brand like Bitcoin.com. I am looking forward to helping reach the brand across the millions of motorsport race fans here in Australia and throughout Asia, said Luke Vanna.

The Australian racer has organized events where he interacts with racing fans and introduces them to the world of crypto. At these events, Luke helps fans install the Bitcoin.com Wallet app, and shows them how to add bitcoin cash and begin using it. He has also worked with Bitcoin.com marketing officials to promote BCH to the vendors at the track, encouraging them to accept the cryptocurrency as payment. Hes helped introduce the company to hundreds of thousands of television viewers who watched him during the races with his Bitcoin.com branded car.

Australia is one of the top global hotspots in terms of bitcoin cash adoption. A recent report showed that the number of BCH Australian retail transactions throughout the months of September and October 2019 outpaced every other digital asset by a wide margin. One reason for that is the high concentration of businesses accepting bitcoin cash payments compared to most places around the world. Another cause for the successful BCH adoption rate is the strong and active local community, as evident by hosting what was probably the worlds biggest Bitcoin Cash conference yet in Townsville, North Queensland in September.

Bitcoin.com is excited to expand our marketing in Australia in this partnership with Luke Vanna. Seeing the interest among new customers we are looking to innovative means to reach them, and meeting them wherever they are, explained Bitcoin.com CEO Stefan Rust. Bitcoin cash adoption is skyrocketing in Australia, with 92% of all cryptocurrency retail transactions. Bitcoin.com is committed to expanding the vendor reach for bitcoin cash, and partnerships like this one with athletes and racers in non-traditional locations will only attract new merchants to join the existing 200 BCH accepting merchants across Australia, not to mention users looking to spend their BCH with those merchants seeing value in this trustworthy, reputable payment source.

What do do you think about Bitcoin.coms endorsement of an Australian racing car driver? Share your thoughts in the comments section below.

Images courtesy of Rhys Vandersyde Insyde Media.

Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com.

Avi Mizrahi is an economist and entrepreneur who has been covering Bitcoin as a journalist since 2013. He has spoken about the promise of cryptocurrency and blockchain technology at numerous financial conferences around the world, from London to Hong-Kong.

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Bitcoin.com Accelerates Cryptocurrency Adoption With Racer ...

This article was originally posted on The Bitcoin News - a trusted site covering numerous topics related to Bitcoin since 2012.

Cryptocurrency represents a digital asset that relies on encryption techniques to manage the generation of new currency units and transaction verification. In todays guide will be showing you how to create your own cryptocurrency.

A coin runs on its own proprietary and independent blockchain. So, to make a coin, you will have to build your own blockchain form zero.

To create an entirely new blockchain requires experience and understanding in coding, blockchain technology, and encryption. This option is not suitable for new developers, as many errors can occur, and it will require a lot of time, even for experienced programmers.

However, creating your own blockchain enables you to have full control over the underlying code.

A simpler option is to fork from the code of an existing coin. You just copy the code of Bitcoin or another chain, add a new variable, modify some values, and you will have your own blockchain. Many top coins have come into existence by forking from bitcoin, such as Bitcoin Cash, Litecoin, Zcash, etc.

So you will have to know exactly where to modify the codes parameters in order for the chain to function properly.

An easier way of creating a crypto is by using the services of platforms that give you the tools to launch your own token. This option is more feasible for those who are looking to quickly launch a crypto, as it requires less development time, spending, and maintenance.

When you build a token on top of an existing blockchain, such as Ethereum, your token uses the secure network, decentralized architecture, and implemented consensus mechanisms of the blockchain.

Tokens function similarly to smart contracts and can be programmed to represent various items or have different digital services. Tokens are usually launched in ICOs of Security token offering (STO), to help projects and startups get the funds they require for their operations.

1. Select Your Source Code.

You can choose from various Open Source Blockchains. You can fork Bitcoins or Litecoins blockchain by downloading them from Github.

It is more recommended you to use open-source technology to create your own blockchain, as developing a block-chain from scratch takes a great deal of time and money.

2. Download and Install your Blockchain on a Live Server.

3. Access your server using SSH via putty as administrator (root access) to install the blockchain directly on a live server.

4. Run the following commands one by one (we will be using Multichain in our example).

cd /tmp

wget https://www.multichain.com/download/multichain-1.0.4.tar.gz

tar -xvzf multichain-1.0.4.tar.gz

cd multichain-1.0.4

mv multichaind multichain-cli multichain-util /usr/local/bin

5. Now we can go on to create a blockchain by running the following commands:

multichain-util create your_chains_name

6. Modify the Chain.

Before starting your chain, you will have to make some adjustments according to what you need in your chain to create your own cryptocurrency, as blockchain cannot be changed after they get started.

Below we will be featuring some of the most important parameters that should be modified.

Access your server using SSH via putty as administrator and run the command:

nano ~/.multichain/ your_chains_name/params.dat

Here are some of the parameters that you should modify:

After making the alterations, save the params.dat file.

7. Start the blockchain.

Access your server as root (administrator) and run the following commands to start your blockchain:

multichaind your_chains_name -daemon

With this command, you will produce the First Block, which is known as The Genesis Block.

8. Test Your Cryptocurrency.

Access server using SSH via putty as administrator and run the following command:

multichain-cli your_chains_name

The command allows you to get into the interactive mode.

Run getinfo to check the chains details.

1. Select a Consensus Mechanism

Consensus mechanisms, or mining protocols, represent the code that handles how new tokens are issued and verified the validity of transactions before adding them to the block. The most popular consensus protocols are PoW, PoS, but of course, there are many others you can look into.

2. Select a Platform That Supports Token Creation

Based on what consensus mechanism youve selected, its time to choose your platform.

By far the most popular is the Ethereum blockchain, with the ERC-20 standard having been used for most of the tokens issued so far. You can also opt for other user-friendly platforms that will walk you through the process of creating your own cryptocurrencies, such as NEO, EOS, NEM, Waves (WAVES), Hyperledger Fabric, IBM blockchain, HydraChain, BlockStarter, and IOTA.

3. Customize the Nodes and Internal Architecture of Your Chain

Establish what functionalities will your blockchain have and customize your nodes to fit those needs. From these nodes, you can set your permissions (private or public), hardware requirements, etc. This part is similar to when you modify the parameters of a forked chain.

Parameters you should take into consideration are the address format, block reward, etc. Be sure to set them before you run your blockchain for the first time as there is no possibility to make any changes after that.

4. Integrate APIs

You might not have pre-built APIs into certain platforms, but there are third-party blockchain API providers, such as Colu, Bitcore, BlockCypher, ChromaWay, Gem, and Tierion.

5. Create an Interface

Your cryptocurrency will now need an interface that will allow end-users to check out your blockchain. You need to make sure you will have to configure the web, FTP servers, and external databases, and the other front-end and back-end programming in order to allow for future upgrades.

The graphical interface should be easy to navigate, display blockchain details clearly, and it wont hurt if its also aesthetic, although most crypto interfaces focus on simplicity.

6. Establish the Legality of Your Crypto

Before launching your crypto out into the work, first, make sure that it is compliant with the laws and cryptocurrency regulations of the country or region you want to make it available.

If you have decided to create your own cryptocurrency, know that it will require some effort on your part, be it through a token platform or a blockchain fork. But, either way, you should have fun with your first crypto project, and you can always perfect it or launch a more advanced one later on.

Featured image: Pinwise

source: https://coindoo.com/how-to-create-your-own-cryptocurrency/

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Lawmakers in Thailand plan to reform cryptocurrency laws after voicing concerns that they have made the country uncompetitive.

As local English-language news outlet Bangkok Post reported on Nov. 25, Thailands regulator, the Securities and Exchange Commission (SEC) wants to reconsider its crypto policy in 2020.

The reason, it says, lies in poor uptake of its certification and licensing scheme by cryptocurrency businesses.

Since it came into power last year, only five companies have completed certification, and of those, just two have launched.

Now, amendments are on the table, but the SEC has not yet given precise details of how current practices would change.

The regulator must be flexible to apply the rules and regulations in line with the market environment, Bangkok Times quoted Ruenvadee Suwanmongkol, the secretary general of the SEC as saying.

Ruenvadee continued:

For example, laws should not be outdated and should serve market needs, especially for new digital asset products, and be competitive with the global market. We need to explore any possible obstacles.

Thailand imposes stiff penalties for those attempting to sell digital tokens without due approval from the SEC. These include possible fines of at least 500,000 baht ($16,540), as well as two-year jail sentences.

Nonetheless, when the countrys first initial coin offering (ICO) under the new rules launched last month, it signaled a significant step forward from state policy several years ago, which favored an outright cryptocurrency ban.

Worldwide, ICOs, in particular, have all but died out, with analysts attributing the lack of momentum to mounting regulatory pressure.

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Thailand: Cryptocurrency Law Will Change in 2020 to Stay Competitive - Cointelegraph

The Israeli company behind the cryptocurrency exchange DX.Exchange is going through bankruptcy proceedings after 78 of its former and present employees petitioned an Israeli court to wind it up.

The petition, which was filed on October 24, contained several surprising claims and revelations linking the once highly publicized cryptocurrency exchange, promoted by the likes of Bloomberg News, to Israels notorious binary options industry.

The petition alleges that the Israeli company, CX Technologies Ltd., developed and ran a cryptocurrency trading platform. Other documents seen by The Times of Israel reveal that that trading platform was called DX.Exchange. According to DX.Exchanges website, it is owned by a company registered in Estonia, but the petition claims that it was in fact operated by CX Technologies. The petition further claims that CX Technologies is a successor company to SpotOption, which was raided by the FBI in January 2018 over suspicions that it was a central player in Israels multibillion dollar binary options scam. SpotOption has denied all allegations of wrongdoing.

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DX.Exchange has in the past denied any connection to SpotOption, but the petition claims that most of CX Technologies 55 employees are former employees of SpotOption who were hired by the new company in January 2018. CX Technologies and SpotOption were located in the same office, while employees pension plans and other funds were transferred without disruption from SpotOption to the new company.

The petition also reveals that a relative of Prime Minister Benjamin Netanyahu, Miriam Mileikowsky, was a senior employee of both SpotOption and CX Technologies starting in August 2016. She received a salary of NIS 40,000 ($11,500) a month. Mileikowsky is the wife of Ory Mileikowsky, the prime ministers first cousin, who almost went bankrupt in 2013 when a judge ordered him to compensate investors he had advised after losing 90 percent of their funds [Hebrew link]. The Supreme Court later overturned the decision.

Miri Mileikowsky, legal counsel for SpotOption and CX Technologies (LinkedIn)

In the October 24 bankruptcy petition, employees of CX Technologies claim that they had not been paid their salaries for September or October 2019 and some had not received benefits for even longer.

In addition to the petition by employees, several Israeli suppliers have sued the company in the last six months for allegedly failing to pay its bills. These companies are White Hat Ltd., which provided cybersecurity services to DX.Exchange, and Bee2See Dotan B.S. Solutions, which provided targeted marketing of potential customers using IBMs Watson system. Malam Team, one of Israels largest IT companies, has also sued CX Technologies for allegedly failing to pay for servers the company supplied.

Lawyers for DX.Exchange had not responded to a request for comment at time of writing.

DX.Exchange burst onto the global cryptocurrency stage in January 2019 with glowing media coverage that touted the companys affiliation with NASDAQ and Bloomberg News.

For instance, TheStreet.com, a widely read financial news website, described DX.Exchange in January 2019 as a partner of NASDAQ and proclaimed that the company was set to bridge the gap between equity and crypto markets.

The financial industry itself now feels isolated from the great things happening in crypto, the article asserted. Seeing these trends play out, some of the biggest names in traditional finance such as Bloomberg, NASDAQ and MPS Marketplace Securities have put their heads together to offer a solution.

MPS Marketplace Securities, formerly known as SpotOption Exchange, was a Cypriot company affiliated with SpotOption Ltd.

Meanwhile, Bloomberg News wrote enthusiastically in January that DX.Exchange plans to offer digital versions of big U.S. stocks. Tokenization of real-world assets is a hot trend in crypto.

DX.Exchanges relationship with NASDAQ may not have been as robust as some readers of its media coverage may have been led to believe. Rather than establishing a deep partnership with NASDAQ, DX.Exchange used the NASDAQ matching engine technology to build its own cryptocurrency exchange platform. It appears to have been one of many exchanges to pay money to do so.

The companys touted partnership with Bloomberg appears to have been more substantial. In December 2018, Bloomberg sponsored a Crypto Summit in London, for which the news organization said it brought in subject matter experts and leading industry players to discuss cryptos future in 2019 and what needs to be done to pique mainstream investor interest in this global disruptive phenomenon.

At the conference, DX.Exchanges CEO, Daniel Skowronski, delivered the opening remarks. The SEC is really coming down on, you know, whether its an ICO, whether its a security token, he said, referring to the US Securities and Exchange Commissions scrutiny of cryptocurrency ventures. I think there are so many subpoenas that have been sent out. And the reason the SEC is doing that is because theyre out there to protect US customers. And I think with us being here it Europe, its really surprising to me how European companies or non-U.S. companies are really scared of the SEC. The only thing you have to worry about with the SEC is if you took US customers, he said.

According to Israels corporate registry, CX Technologies Ltd., the Israeli company behind DX.Exchange, is 10 percent owned by Skowronski, a soft-spoken American who was previously a director at several retail forex firms, and 90 percent owned by Malhaz Pinhas Patarkazishvili, who also goes by the name Pini Peter, the former owner of the now-defunct binary options platform provider SpotOption. The Estonian company that officially owns DX.Exchange, Coins Marketplace Technologies OU, is owned by Patarkazishvilis wife, Limor Patarkazishvili.

In most of DX.Exchanges marketing material, Skowronski is the public face of the company, while the Patarkazishvilis role is not mentioned.

According to the companys white paper, which is a kind of prospectus for cryptocurrency companies, the website DX.Exchange allowed users to convert fiat (regular) currency into cryptocurrency and vice versa, to buy and sell different cryptocurrencies, to store cryptocurrencies, and to buy tokens that represented parts of shares of NASDAQ-listed companies.

DX.Exchange was licensed in Estonia and Cyprus and made money, it said, by charging fees for trading (fiat currency into cryptocurrency, or one cryptocurrency to another), and for listing cryptocurrencies on its exchange so people could buy and sell them, as well as membership fees. In addition, the company raised funds from investors through private token sales. The company does not appear to have disclosed in any publicly available material how much money it raised from token buyers around the world.

On September 24, 2019, the Cypriot company associated with DX.Exchange, MPS Marketplace Securities Ltd, had its Cypriot license suspended for allegedly violating Cypriot securities laws. MPS Marketplace Securities Ltd was formerly known as SpotOption Exchange Ltd and S.O. SpotOption Ltd.

Israeli DX.Exchange employees in a 2019 promotional video for the company (YouTube screenshot)

On October 24, 78 employees and former employees of CX technologies filed a petition in Israeli court to wind up the company, saying it had no money left in its bank accounts. A few days later the companys owner, Pinhas Patarkazishvili concurred with this assessment and agreed to allow the bankruptcy proceedings to go forward.

In a November 3 blog post, DX.Exchange announced that it was shutting down, unless it could find another company to buy it or merge with it.

The costs of providing the required level of security, support, and technology is not economically feasible on our own, the company announced.

On November 4, the court-appointed trustee for CX Technologies, attorney David Forer, wrote in a court filing, In a meeting I held with the companys controlling shareholder, Mr. Pinhas Patarkazishvili, Mr. Moshe Avrahami and their lawyer, I was told that the company has reached the end of the road due to purported business failure. I was told that the company has no available sources of money and that it is even in overdraft of NIS 5,000, that there are no debts from customers to be collected and that the company has no assets it owns, that even the office equipment is not owned by the company but was leased from another company owned by [Patarkazishvili].

The petition shows that the employees of CT Technologies included Chinese speakers, Japanese speakers, a large number of engineers, and a high proportion of first-generation immigrants from the former Soviet Union. Most employees appear to have been in their 20s and 30s. Some of them began working for SpotOption as early as 2011 and have shown remarkable loyalty to the company.

A former employee of SpotOption who spoke to The Times of Israel on condition of anonymity said that unlike some of the employees of the binary options call centers SpotOption helped set up, who came from backgrounds where their career prospects may have been limited, employees of SpotOption tended to be highly credentialed mainstream Israelis who could have worked anywhere but chose to work at SpotOption.

The salaries and benefits were extremely generous, this former employee said, and most employees shrugged their shoulders at the fact that the company was raided by the FBI in January of last year.

SpotOption executives and employees in 2016 (Facebook)

The FBIs values werent their values, the employee surmised. A lot of employees were like, Its a jungle out there, Id better grab as much as I can while I can.

Israeli police had raided SpotOption in 2013, but not because they suspected the company of any wrongdoing. The purpose of the raid was to arrest an employee, Yaron Labin, who had allegedly been embezzling money. Labin was indicted a year later and in 2017 he was sentenced to 42 months in prison and a fine.

The CX Technologies trustees job over the coming months is to locate sources of funds that the CX Technologies can use to pay off its creditors. There is a possibility that more creditors may come forward.

Original post:
Much-hyped cryptocurrency website goes bust, revealing ties to binary options - The Times of Israel

On November 5, 2019, Vietnam-based cryptocurrency exchange VinDAX was hacked, losing half a million U.S. dollars worth of funds spread across 23 different cryptocurrencies.[1] The VinDAX hack marks the latest in a series of cryptocurrency exchange hacks and data breaches that have taken place this year, and is part of a larger and growing trend of digital currency heists that have occurred since Bitcoin, the first cryptocurrency, was introduced in 2008.[2] In July of this year, Japan-based cryptocurrency exchange Bitpoint was also hacked, losing about $32 million in cryptocurrency,[3] and earlier this year, hackers stole $16 million worth of cryptocurrency from New Zealand-based Cryptopia.[4] Losses from cryptocurrency hacks this year alone are reported to have totaled around $1.39 billion worth of assets.[5]

Background

Cryptocurrencies are built on a technology called blockchain a distributed ledger technology in which transactions are recorded across a network of peer-to-peer computers. Since the most well-known cryptocurrency, Bitcoin, together with the underlying blockchain technology, was developed by one or more developers using the pseudonym Satoshi Nakamoto and published in a white paper in 2008,[6] blockchain has been praised for its intrinsic security, as well as qualities that allow cryptocurrency holders to remain largely anonymous. But the same features that have made blockchain an innovative financial technology also make cryptocurrencies an attractive target for theft; once stolen, the nature of blockchain technology makes it extremely difficult to trace the culprits and track down the stolen assets.

Cryptocurrencies generally are based upon a system that uses a public digital key, which is used for identification (similar to a bank account number), and a private digital key (similar to a personal identification number to access that account), which is used for encryption and authentication. The other component of the system is the wallet, which stores cryptocurrencies. Each wallet has a unique address, which is used for sending and receiving funds. A user starts with an address, which in turn generates a private key and a public key using an algorithm; the private key grants the user ownership of the funds at a specified address. When sending funds, the system software identifies the transaction with the private key (without disclosing it), which validates for the benefit of all on the relevant network the authority of the user to transfer the funds from its address (which it does by generating a unique digital signature for every transaction a user undertakes). The public key, which is the public address for the wallet (in effect the address is a representation of the public key) and is intended to be shared, is derived from the private key (that is, the private key generates the public key). At the heart of the cryptography system is the one-way aspect of these components: the public key cannot be derived from the address, and the private key cannot be derived from the public key.

Experts say that one of the safest ways to store cryptocurrency is by using what is known as a hardware wallet.[7] This is an off-line device like a thumb drive, in which a users private keys are stored. These devices often require passwords, backed by sophisticated encryption systems, and multi-factor authentication procedures in order to gain access to the private keys stored on them. (These devices do not store cryptocurrency assets themselves, but rather the private keys associated with the cryptocurrency assets in the blockchain system.) The problem with this system is that it is cumbersome. Accessing funds requires having the hardware wallet on-hand, and then engaging in a lengthy process of opening up the hardware wallet and gaining access to the private keys stored in the wallet. This can make it hard to respond quickly to the highly volatile cryptocurrency marketplace.

The solution to which many resort is keeping their funds on the exchanges they use to buy and sell cryptocurrency (examples include Coinbase, Bittrex and CEX.io). However, since the cryptocurrencies themselves are not actually on the exchanges, what this technically means is that the users are storing their private keys on the exchange. The exchanges therefore act as warehouses of private keys associated with hundreds of millions, and often billions, of dollars in cryptocurrency assets. Not surprisingly given the concentration risk, these exchanges have increasingly become a favorite target for high-value hacks.

Cryptocurrency hacks not only result in significant loss of personal holdings; they also create wild fluctuations in cryptocurrency markets. After a $37 million hack of the Korean exchange Coinrail in 2018, Bitcoin (the first, and most popular cryptocurrency) lost approximately 11% of its market value.[8] A similar drop occurred after hackers stole 120,000 Bitcoins from Hong Kong-based exchange Bitfinex in 2016.[9]

In light of the increasing number of cryptocurrency exchange hacks in recent years, companies that invest in cryptocurrency projects or have significant holdings in cryptocurrencies should keep the following in mind:

What should companies with significant holdings in cryptocurrencies be considering?

Due diligence

Companies considering investing in cryptocurrencies may want to undertake a thorough due diligence analysis of the cybersecurity measures, response protocols, and access controls for their preferred method of storing their private keys, whether that method involves using an exchange, a hardware wallet, or some other method.

Companies may also want to engage outside counsel or retain in-house expertise to advise them as to their legal obligations for how they store their private keys. For example, companies may need to determine whether applicable SEC laws and regulations require the use of a qualified custodian for holding private keys, as well as their obligations for instituting specific controls and response procedures for protecting against the loss of clients assets.

Use offline or hardware wallets

As discussed above, there are few safer ways to secure cryptocurrency assets than using a hardware wallet for maintaining private keys. While these hardware wallets are commercially available, large investors may consider instead engaging computer engineers that can build custom hardware wallets. Similarly, as discussed above, companies may want to consider engaging a reputable, insured, qualified cryptocurrency custodian service for storing private keys.

What should companies that are investing in cryptocurrency businesses be considering?

When investing in a cryptocurrency exchange project, invest heavily in cybersecurity.

Cryptocurrency users have many exchange options, and they tend to be fairly discriminating about which they choose to use based on the exchanges reputations for cybersecurity and history of cyber penetrations. A new cryptocurrency exchange will need to earn a reputation for integrity and cybersecurity in order to attract users (unless, as is sometimes the case, the exchange offers certain desirable cryptocurrencies that are not available on other available exchanges). Nothing will cripple a new cryptocurrency exchange faster than a successful cyber penetration, and the short history of cryptocurrency is rife with now-defunct exchanges that either went bankrupt and/or lost all user confidence after a cyberattack.

If your company is contemplating investing in a cryptocurrency exchange project, robust cybersecurity should be considered. This includes not only technical cybersecurity measures, but also robust cybersecurity policies, compliance and reporting mechanisms, and audit controls. Capable in-house expertise or outside firms can help you develop these procedures, and your company may want to secure this expertise well before your project launches.

When investing in a cryptocurrency blockchain project, develop cyber penetration response policies in advance.

As discussed above, most cryptocurrency hacks do not compromise the blockchain itself, but the exchanges where the transactions occur and the private keys are stored. These hacks can devastate the cryptocurrency market. But a cryptocurrency blockchain or platform can itself be compromised, and when this happens, having the right response procedures in place is critical.

An example of this was seen with Ethereuma blockchain-based smart contract[10] system that used the cryptocurrency Ether to compensate the operators of the computational engine that powers the blockchain system and as a medium for the exchange of value for the performance of smart contracts. In 2016, an organization called the DAO[11] developed a smart contract system built on the Ethereum platform designed to facilitate venture capital fund investment. Hackers exploited a flaw in that smart contract system, resulting in the theft of $50 million worth of Ether. A vote was held within the Ethereum community about how to respond to the hack, with a majority voting to do a hard fork[12] of the Ethereum blockchain. Since the blockchain represents a history of all transactions since its inception, a hard fork is effectively a way to reverse time by erasing the history of the transactions on the blockchain system since the occurrence of the compromising event (hard forks can also be planned events so the rules and protocols governing the blockchain can be updated). This hard fork was extremely controversial within the Ethereum community because it resulted in the reversal of both legitimate and illegitimate transactions, and the value of Ether and confidence in the Ethereum platform temporarily suffered as a result.

One of the reasons the DAO hack was so disruptive to the Ethereum community was because of the debate that ensued within that community over how to respond to it. Thus, companies considering whether to invest in a cryptocurrency project should consider not only how to gird their projects against technical hacks, but also how to develop and disseminate response policies that would give users assurance that the cryptocurrency project would commit to a predictable, controlled course of action in response to various compromising events.

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VinDAX Is the Seventh Cryptocurrency Exchange Hacked This Year: What Should Investors Be Considering? - Lexology

The cryptocurrency market has settled down after a sharp sell-off on Thursday. Bitcoin and all major altcoins are nursing losses on a day-to-day basis with ta notable exception of Tezos (XTZ). The coin has gained over 5%, building on the recovery of the week. The total cryptocurrency market capitalization crashed to $208 billion, from $220 billion this time on Thursday; an average daily trading volume is increased to $81 billion. Bitcoin's market share settled at 66.1%.

BTC/USD recovered from Thursday low of $7,393 and settled down in a new range limited by $7,700 on the upside and $7,500 on the downside. At the time of writing, BTC/USD is changing hands at $7,580, down nearly 5% on a day-to-day basis and unchanged since the beginning of the day.

Ethereum, the second-largest digital asset with the current market capitalization of $17.4 billion, has settled above $160.00 after a sharp sell-off towards $156.22 on Thursday evening. The recovery is capped by the middle line of 1-hour Bollinger Band 1-hour currently at $162.50. Once it is out of the way, the upside is likely to gain traction with the next focus onpsychological $170.00 reinforced by SMA50 (Simple Moving Average) and the upper line of 1-hour Bollinger Band. At the time of writing, ETH/USD down 8.5% on a day-to-day basis and unchanged since the beginning of the day.

Ripples XRP returned to $0.2400 on Friday after a short-lived dip to $0.2357. The third-largest digital asset with the current market value of $10.4 billion has lost 3.6% of its value in recent 24 hours, unable to develop a sustainable recovery. The initial barrier is created by $0.2460 (the upper line of 1-hour Bollinger Band) followed by SMA50 1-hour at $0.2470.

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The cryptocurrency market update: Bitcoin bears have an upper hand - FXStreet

OneCoin founder Dr Ruja IgnatovaONECOIN

Two senior members of the discredited OneCoin cryptocurrency sales network are listed as shareholders of a fledgling Irish cryptocurrency.

Peter Shaw and Pehr Karlsson are shareholders in Funlz, which is seeking to develop MingoCoin, a cryptocurrency linked to a new messaging aggregator app. Funlz founder Joe Arthur said that the two men were friends of a friend, and he had never met them.

Arthur said the individuals had no role or connection with Funlz, aside from being minor and passive investors. He said he was unaware of their involvement in OneCoin. Shaw and Karlsson invested small sums in Funlz in 2016.

Last week a New York jury found Mark Scott, a US attorney, guilty of conspiracy to launder the proceeds of what investigators there called

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Leading OneCoin backers linked to Irish cryptocurrency MingoCoin - The Times