IRS Criminal Investigators Looking Into Bitcoin ATMs and Kiosks – Cointelegraph

United States Internal Revenue Service (IRS) Criminal Investigation Chief John Fort said that the regulator is looking into potential tax issues caused by Bitcoin (BTC) ATMs and kiosks.

According to Bloomberg Law on Nov. 15, Fort said that the IRS is collaborating with law enforcement to investigate illicit uses of new technologies like cryptocurrencies, stating:

Were looking at those, and the ones that may or may not be connected to bank accounts [...] In other words, if you can walk in, put cash in and get bitcoin out, obviously were interested potentially in the person using the kiosk and what the source of the funds is, but also in the operators of the kiosks.

According to Coin ATM Radar, there are 4,129 Bitcoin ATMs and tellers in the United States that enable users to buy and/or sell cryptocurrencies in exchange for a fee. Bloomberg claims that there is one such machine in every major U.S. city. Fort explained that such services are required to conform to Know Your Customer rules:

Theyre required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations.

As Cointelegraph reported a month ago, Bitcoin ATM firm Bitstop installed one of its machines at the Miami International Airport, suggesting that Bitcoin is useful to move money when traveling.

Fort explained that cryptocurrency taxation issues are an emerging threat, adding that the cryptocurrency space has an inherent lack of transparency and visibility, which increases its potential for non-compliance. Still, he admits that no cases have been filed so far, stating, We havent had any public cases filed, but we do have open cases in inventory.

Earlier this week, Suzanne Sinno, an attorney in the IRS Office of the Associate Chief Counsel, clarified that cryptocurrencies have never been eligible for like-kind tax exemption, even before the 2017 tax overhaul.

In the U.S., a like-kind exchange or a 1031 exchange is an asset transaction that does not generate a tax liability from the sale of an asset when it was sold to acquire a replacement asset.

While crypto traders were mostly aware that post-overhaul transactions do not qualify for such an exemption, transaction eligibility prior to that period had been murky.

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IRS Criminal Investigators Looking Into Bitcoin ATMs and Kiosks - Cointelegraph

Red Hat CodeReady Workspaces 2 Brings New Tooling to Cloud-Native Development – Business Wire

RALEIGH, N.C. KUBECON NA 2019--(BUSINESS WIRE)--Red Hat, Inc., the world's leading provider of open source solutions, today announced the release of Red Hat CodeReady Workspaces 2, a cloud-native development workflow for developers. The new release of CodeReady Workspaces enables developers to create and build applications and services in an environment that mirrors that of production, all running on Red Hat OpenShift, the industry's most comprehensive enterprise Kubernetes platform.

Todays organizations can use Kubernetes to create and deploy their applications and services, but for developers, Kubernetes adds new challenges to an already complex development workflow. With CodeReady Workspaces, development teams can collaborate more efficiently by centralizing development environment configuration and working in replicable OpenShift containers for development work.

CodeReady Workspaces 2 builds on the features developers loved in the first release the powerful in-browser integrated development environment (IDE), centralized one-click developer workspaces, Lightweight Directory Access Protocol (LDAP), Active Directory (AD), OpenAuth support and more along with several new tools and services, including:

CodeReady Workspaces enables development teams to set up and work in Kubernetes by hosting configurations that define source code, build environment runtimes, and development tools. With the in-browser IDE, source code remains centrally hosted improving security without sacrificing the speed you need to stay productive. An administrative dashboard means administrators supporting developer teams have centralized management tools and dashboards to monitor CodeReady Workspaces and developer workspace performance.

As part of the Red Hat portfolio, CodeReady Workspaces is supported by Red Hats award-winning enterprise support for developer workspace tooling.

CodeReady Workspaces is included in Red Hat OpenShift and will be available in the OpenShift OperatorHub in the coming weeks.

Supporting QuotesBrad Micklea, vice president of Developer Tools, Developer Programs, and Advocacy, Red HatAs more organizations are adopting Kubernetes, Red Hat is working to make developing in cloud native environments easier offering the features developers need without requiring deep container knowledge. Red Hat CodeReady Workspaces 2 is well-suited for security-sensitive environments and those organizations that work with consultants and offshore development teams.

Ivan Krni, head of software development, CROZAs a software development company, we provide custom services for our clients and it is important for us to be able to transition between multiple technologies any time we need. With Red Hat CodeReady Workspaces, were able to manage a large number of projects and contain all the tools we need with the workspace and not worry about installing tools whenever a developer uses a different workstation or hardware, keeping our code and machines secure.

Arnal Dayaratna, research director, IDCBy providing a centralized environment that contains all of the developer tools needed to develop, build, test and debug Kubernetes-based applications, CodeReady Workspaces streamlines and simplifies adoption of Kubernetes. CodeReady Workspaces 2 facilitates the development of container-native, Kubernetes-based applications by empowering developers to leverage an updated user interface and VSCode extensions, in addition to enriched functionality for sharing development workspaces. As cloud-native development accelerates in the enterprise, developer tools such as CodeReady Workspaces are likely to experience increased importance because of their ability to simplify Kubernetes development.

Additional Resources

Connect with Red Hat

About Red Hat, Inc.Red Hat is the worlds leading provider of enterprise open source software solutions, using a community-powered approach to deliver reliable and high-performing Linux, hybrid cloud, container, and Kubernetes technologies. Red Hat helps customers integrate new and existing IT applications, develop cloud-native applications, standardize on our industry-leading operating system, and automate, secure, and manage complex environments. Award-winning support, training, and consulting services make Red Hat a trusted adviser to the Fortune 500. As a strategic partner to cloud providers, system integrators, application vendors, customers, and open source communities, Red Hat can help organizations prepare for the digital future.

Forward-Looking StatementsCertain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to the ability of the Company to compete effectively; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; delays or reductions in information technology spending; the integration of acquisitions and the ability to market successfully acquired technologies and products; risks related to errors or defects in our offerings and third-party products upon which our offerings depend; risks related to the security of our offerings and other data security vulnerabilities; fluctuations in exchange rates; changes in and a dependence on key personnel; the effects of industry consolidation; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to meet financial and operational challenges encountered in our international operations; and ineffective management of, and control over, the Company's growth and international operations, as well as other factors. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

Red Hat, the Red Hat logo, and OpenShift are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the U.S. and other countries.

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FanX’s Bryan Brandenburg Unveils ‘Zenerchi’ That Aims to Change the Way In Which We Visualize Human Physiology – Grit Daily

Known for his impressive work alongside FanX Salt Lakes Dan Farr, co-founder Bryan Brandenburg is turning his superhero-like mind towards Zenerchi, a project that has been in the works for decades, going back to his years and involvement in the biotech industry, long before the 2013 birth of FanX.

the human body, along with everything else in the universe, is the most beautiful, elegant creation by far. We think were smart by designing skyscrapers and Teslas and solar panels but compared to the elegance of the universe and the human body, were light years away from that kind of design. What were doing is creating access that makes it possible to simulate and visualize the elegance and beauty of the human body in a way that has never been done before.

Zenerchi, formulated from the words, zen, energy, and chi can be applied to a wide variety of use-cases, far beyond just the biomedical and pharmaceutical sectors. It gives superpowers to every entrepreneur, medical professional, legal practitioner, and student, regardless of industry, to help lend x-ray vision to unmasking the atoms and data that comprise the human anatomy.

The company plans to unveil its first public-facing tech implementation next year with a simulation visualization AI lab, according to its October announcement.

In an exclusive interview with Grit Daily, Brandenburg unveiled and dove into Zenerchi. In the companys latest news, Zenerchis platform is built upon open source physiology simulation software that was developed by teams at Stanford University, MIT, Indiana University, Harvards Medical Schooland oh yeah, the U.S. Department of Defense.

Grit Daily, which has covered FanX Salt Lake for the past two years, is very familiar with Brandenburgs background. We found this project to be quite the game-changer once unveiled to the public and it can bring a positive if not paradigm shifting impact on wellness, biomedical, pharmaceutical, and legal research.

Grit Daily: Lets talk about your transition away from FanX Salt Lake into the world of Zenerchi and physiology. Can you walk us through your background?

Bryan Brandenburg: I went to college in math and physics after repairing computers and electronics on fighter jets for the Air Force. I dropped out about one semester short of a double degree in math and physics to start writing video games on the Commodore 64 because I thought video games were the future, and I wanted to be part of it on the ground floor. Turned out the timing was good and I had some really good success. I started a company called Sculptured Software, which was later acquired by Acclaim, and worked on IBM PC, Atari, Amiga and Apple, too. I had a great gaming career.

GD: You have extensive experience in the gaming sector. Can you talk about that?

BB: From my involvement with Sculptured Software/Acclaim, I then started another game company that was acquired by another publicly traded company. There I executive produced products for Disney and Hasbro. Fast forward five years later, I was Chief Profit Officer at DAZ3D creating 3D software and 3D models with Dan Farr, my partner at FanX. The company built a library of about 10,000 models and 3D software and sold these products online to about a million artists and animators worldwide on the Internet. After that, I took over as CEO of Zygote Media Group, who does world-class anatomy and visualization for physiology.

Brandenburg describes most of his career as being a scientist with real-time high-performance graphics and scientific visualization expertise:

I really got to thinking about when I was at Zygote, the whole concept of fractal physiology. It was something that they didnt have an appetite for at the time. It was probably too early. I really thought there was a great opportunity to visualize the human body from gross anatomy all the way down to atoms and quarks.

But it wasnt until 2012 that Farr brought Brandenburg into his vision of creating a comic con that set itself apart from the almost infinite number of comic cons out there today.

Back in 2012, Dan and I were actually working on a 3D software company when he said, Lets start a comic con. I really was familiar with them but had never been to one. I went to one in Portland with him and thought it was pretty fun. I thought I would help him get it started and get back to software.

Yet, successful as FanX was and still is, the Utah-based comic-con still stirred pots outside of the state.

This group down in San Diego decided that even though there were 150 comic cons out there, we were somehow causing problems, Brandenburg explained, and added that [he] spent a lot of time helping Dan get through all of that.

But Brandenburg anticipates FanXs final chapter is likely to be a happy one for he and Farr in the Ninth Circuit Appeals Court.

I felt like we got through that very successfully. The company is in a good place and is very strong now. I was able to devote myself full-time starting early this year.

For the average millennial who may be in school, whether its medical school or nursing school, our question was how this technology could, if at all, be implemented into and utilized by the millennial demographic?

Thats a great question, Brandenburg responded, adding his even better answer:

I have millennial children. One of them is a nurse whose mother is a nurse and grandmother is a nurse. I have another daughter who has a Masters in Speech Therapy. My son-in-law has a masters degree in social work and works in mental health. I think the great opportunity for young people in why this is the future for you and for everybody isI believe that augmented reality is a computing platform of the future. We are building a platform based on augmented reality, virtual reality, high-end visualization, the kind you would see in Fortnight and video games of todays era. Young people today want to reach their highest potential physically, mentallywere creating tools to do that like never before.

GD: So, lets take the wearables industry for exampleapply some Zenerchi!

BB: If you think about how best to understand your body, there is the whole world of wearables for wellness and fitness. Just last week, Google announced it bought Fitbit for a little over $2 billion. I think that is very much an indicator of where all of this is going. People using the Internet of Things (IoT) and advanced technologies like augmented reality (AR) and VR are going to be able to understand their body more than ever. The person who is going to live to 150 years oldhes alive today. He is probably a millennial. We think were going to be creating world-class visualization simulation AI tools that will bring in a whole new era of understanding of the human body.

GD: In our full conversation, you mentioned the FDA and being able to work alongside it, rather than against it. Can you expand?

BB: The FDA requires testing right now on real people. We think we can complement FDA clinical trials with tests on simulated people. Instead of doing 1,000-10,000 at a time, we can do one million-10 million at a time using genome data and an understanding of human physiology that has never been had before. We can use the same technology to test products that cant afford FDA approval like nutritional supplements.

From a lawyers perspective, I have my own criminal defense practice. I used to intern and work at a personal injury and medical malpractice firm, where, as many know, is all about understanding the mechanics of the human body and anatomy. In todays digital age, utilizing visual aids in the courtroom is a major advantage and almost essential in communicating effectively with the jury.

GD: Have you thought about how this could eventually be used in a courtroom, where it could be a licensed platform for the legal system?

BB: Absolutely. To go back to the late 90s, I sold my game company to a publicly traded company called Engineering Animation. They have since been acquired, but they were one of the premier companies in the country that did visualization for the legal industry for court. They visualized things like the Oklahoma City bombing, many accidents and medical malpractice situations. Even back then, I was thinking, this is amazing that we can recreate the impact on the human body in a video animation.

GD: So, lets apply real-time to that equation.

BB: Now, what were doing today is doing it in real-time and being able to simulate in real-time multiple outcomes. This is right on track and an area where I do have experience. For us back then, it was almost a $100 million-a-year business to do visualizations for CNN and the courtroom and pharmaceutical companies to demonstrate how their drugs worked. This is right on track for being able to utilize a real-time simulation platform to do the same thing.

Transitioning from the courtroom and adding in a potential use case, whether in the courtroom or outside of it with respect to medical education, Brandenburg presented us with such a scenario:

For example, we have, cardiovascular simulations that actually analyze and visualize the blood flow through the arteries. As part of that simulation, we can add medical devices like stints into the artery and examine how it will affect blood flow and prevent strokes from blood clots in the arteries. Being able to visualize that with the particular medical device companies, a stint, is super valuable, where you could play, here is a variety of patients, and you can simulate across multiple patients how that device would perform and validate or invalidate the case in question.

In terms of medical education, we have developed an interface into our practical physiology where across all of the major anatomy systems from cardiovascular, circulatory, nervous system, digestive, endocrine, and so on, we can drill down from major to minor systems going from the circulatory system to the heart and arteries to heart tissue to heart cells to the proteins and molecules that make up the tissue all the way down to the atomic and subatomic level.

That kind of visualization is now available on modern devices but we can drill down in a fantastic voyage paradigm and provide a level of understanding that is unprecedented. If you look at where all the breakthroughs are being made in the medical community, its not about gross anatomy medical products anymore; its about pharmaceutical products that are re-engineering and creating new proteins that create a paradigm shift in the biochemistry and physiology. Being able to visualize at a protein and molecular level is the right thing at the right time.

With the support from universities such as Stanford, MIT, Indiana University, Harvard Medical School, and the U.S. Department of Defense, Brandenburg explained the collective vision behind Zenerchi.

What we discovered in the initial planning of this company was that there were over 1,000 physiology simulation and visualization software products being developed by world class organizations, including the ones you mentioned, he explained.

We systematically evaluated which ones were being utilized and would have long-term importance, which ones had the most activity and the most potential. We said, You know what? We have the opportunity to create a holistic platform where you have a brain simulator, a cell simulator, a molecular dynamic simulator, a cardiovascular simulator, that were all very different designs, and none of them talk to each other. We designed a platform where we could systematically bring in the open source software that are freely available, as long as we credit organizations, and then create an interface between the modules so that not only are they much more accessible than they were before and produce much more meaningful visual results, but now they are going to start to talk to each other.

GD: What was the general feedback youve had from these universities?

BB: We have been reaching out to universities, including Stanford, MIT, and Harvardwe have relationships there and theyre excited about our ability to take their babies and paradigm shift them into the 21st century with modern technologies like cloud technology and real-time gaming engines like Unreal and Unity.

GD: The software itself is open-source. Can you explain to readers how that works?

BB: As a lawyer, if you understand the nature of open source, most of the licenses are the MIT open source license, which basically anybody can use it, just credit the creator. If you modify the core source code, contribute it back to the open source project, which were adhering to. The intellectual property which were building which will make it extremely valuable or already has is the visualization, simulation, AI in a cohesive platform, where if you think of these as self-contained simulation packages within a broader platform solution, with a visualization and artificial intelligence layer on top of that, that is where our IP gets very valuable.

GD: How could you make this more of a license to those who wished to have more specialized access?

BB: Can we make the individual units, for example, Wholecell from Stanford or the SIM vascular project from Stanford or the protein prediction software out of MIT, can we make that more valuable? Absolutely. That is an open-source product. But the real opportunity for us and the community as well is the broad platform of connecting the simulation products and providing a world-class visualization solution, taking all that data into the cloud, and then being able to, using artificial intelligence and machine learning, learn from the simulations and predict results that will create opportunities in medical treatment and disease prevention.

While exciting, the companys software also presented a very realistic concern that anyone in todays digital age would be curious ondata protection and privacy. With companies such as Facebook, Capital One, and other tech giants finding themselves victimized by data breaches, its a question that doesnt go unspoken.

Brandenburg touched on his four-year history at Symantec, the company known for its Norton security suite of utility products.

GD: Touching on the cloud, how does cybersecurity and data come into play herefrom a software development standpoint and of course rolling out to the general public?

BB: While working at Symantec, I worked at the Peter Norton group as the external development manager for the Norton family of products. I wrote the first security business plan that then became the core business for the company. I had a small contribution to that, but I spent a lot of time visiting with people like New Scotland Yard and the Dutch computer crime unit as part of my work. I have good background in cybersecurity. Two of the members of my team are Symantec veterans as well. We understand that medical data and personal data is going to be ultra-important. Our solution that is in the works is going to use blockchain to protect that data.

GD: Moving forward, what would you consider to be one or some of the bigger challenges that you feel the company currently faces before its public unveiling? In other words, whats the next obstacle to overcome in the companys journey moving forward?

BB: The biggest obstacle to come? I think the more we get into this, the more we realized what an amazing opportunity it is. The total addressable market is $10 trillion. If everything goes right, we might exceed .01% of that. Its a ginormous market. We think we have the right product at the right time.

The biggest challenge is its a $10 trillion market so there are lots of well funded companies in the space. We have to be very strategic with the funding we raise and the product we develop. We have to be wise and choose the right direction in the sea of very large indirect competitors. We have to carefully position ourselves to find our place within that $10 trillion market and be able to get traction and get to market in a way that is meaningful.

GD: On the flip side, what do you think is the biggest strength from this project, from the team youve seen thus far?

BB: Our biggest strength isIm not going to disclose some of the key things because theyre proprietary, but I do think that our approach for fractal physiology is one of a kind. We havent identified anyone who has taken this approach to medical education, to simulation, to visualization. People are focused on gross anatomy or cells or molecules and proteins, but nobody is connecting the dots like we are planning to. Its very much a fractal world in the human body, where you have to pay attention to what is going on at an atomic level, a protein level, a cellular level. All the systems are connected in a meaningful way. Our strategy of bringing Electronic Arts veterans to visualize in a high-performance way along with medical doctors and medical illustrators and animators, and our vision for the product, nobody has our unique vision and we have lots of meaningful experience to execute on that vision. Im certain of that. That is our strength.

GD: In terms of education, do you see in the future having some internal education programs for- Lets say youre hiring a new candidate or an intern or whomever may be potentially joining this product. What if somebody isnt as familiar with the blockchain or the experience of blockchain and AR and VR? Do you think having programs in place, if you dont already, could be valuable? Is that something you guys have thought about at this point with regards to the project itself?

BB: No. We take a little different approach. My strategy for building successful companies has been to go down the path of hiring really smart people who love to learn, to hire Renaissance people, that already are polymaths in their own right, in their own area. People that have no problem saying, Oh my gosh, I get to learn about blockchain at work, or, Awesome! I get to learn about human physiology, and be excited about that. There isnt any formal training other than hiring people who love to learn and are really smart.

GD: Whether youre speaking to the millennial demographic (including your children), or the average entrepreneur, what do you want individuals to take away from Zenerchi?

BB: If I could choose one takeaway for the vision of our company in the context of our conversation, that would be that the human body, along with everything else in the universe, is the most beautiful, elegant creation by far. We think were smart by designing skyscrapers and Teslas and solar panels but compared to the elegance of the universe and the human body, were light years away from that kind of design. Were creating access that makes it possible to simulate and visualize the elegance and beauty of the human body in a way that has never been done before.

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FanX's Bryan Brandenburg Unveils 'Zenerchi' That Aims to Change the Way In Which We Visualize Human Physiology - Grit Daily

Cryptocurrency exchange that went dark with $16M in user funds only has $45k, report – The Next Web

A Canadian cryptocurrency exchange that was shut down earlier this month for allegedly misappropriating CAD$16 million ($12.1 million) in user funds only has $45,000 in hard assets, reports Global News.

As previously reported by Hard Fork, the B.C. Securities Commission (BCSC) shut down Einstein Exchange after looking into several complaints from customers unable to access their cash and cryptocurrency assets.

Grant Thornton Limited was appointed to seize the exchanges assets and return the allegedly missing funds to users. These included cryptocurrency, such as Bitcoin, the BCSC case documents said.

But, a British Columbia Supreme Court filing published yesterday reportedly says Grant Thorton has discovered that the business only has approximately $15,000 in cryptocurrency and $30,000 in cash.

The cryptocurrency exchange was incorporated by director Michael Ongun Gokturk in December 2017, during Bitcoins famous bull run.

In May this year, the BCSC launched an investigation into customer complaints.

Grant Thornton has reportedly issued notices to several banks across Canada and the US, whereGokturk and the exchange may have held investments or deposits, and seized shares in private companies.

Gokturk did not respond to Global News request for comment, nor has he replied to the allegations made in the BCSC case filings.

But, the Einstein Group has reportedly told Grant Thornton that it believes it owes clientsbetween US$8 and $10 million.

This deficit, the company says, stems from credit card and bank draft frauds. The majority of this loss is made up of cryptocurrency assets, it adds.

Einstein Exchange is believed to have served 200,000 users from all over the globe.Grant Thornton has so far heard from 200-300 people said to be affected by the exchanges collapse.

Published November 19, 2019 11:00 UTC

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Cryptocurrency exchange that went dark with $16M in user funds only has $45k, report - The Next Web

China’s crypto boom is expected to be less ‘fragmented’ as government backs blockchain efforts – CNBC

Industry experts are expecting a much less fragmented cryptocurrency boom in China, compared to other parts of the world, with President Xi Jinping's government recently backing digital currency initiatives.

"I hope that we will have an enlightened infrastructure here," said Paul Brody, EY global blockchain leader, at CNBC's East Tech West conference in the Nansha district of Guangzhou, China.

"And I hope that we will avoid some of the mistakes that happened in the rest of the world."

With Xi's backing, China is developing a Digital Currency Electronic Payment, or DCEP, to be issued by the People's Bank of China. The national currency may be launched within months.

China will look to avoid replicating the turmoil in the United States caused by a rush to the cryptocurrency market during bitcoin's rapid growth, Brody said. In 2017, some investors flocked to initial coin offerings, many of which proved to be pure speculation where the involved companies never produced a product.

Paul Brody, Global Blockchain Innovation Leader of EY, Edith Yeung, Managing Partner of Proof of Capital and Rae Deng, Founding Partner of Du Capital speak with Arjun Kharpal, Technology Correspondent of CNBC on Day 2 of CNBC East Tech West at LN Garden Hotel Nansha Guangzhou on November 19, 2019 in Nansha, Guangzhou, China.

Zhong Zhi/Getty Images for CNBC International

China's policy shift may look from the outside like an abrupt move to capitalize on a trend, but it fits squarely in Xi's long-term plan for "industrialization of the digital economy," added Rae Deng, partner at DU Capital, who was on the same panel discussion at the East Tech West conference.

China's entry into digital currency could effectively tip the scales in favor of new currencies worldwide, spurring some traditional investors to give blockchain a second look, she added.

"I think the magnitude and appetite of the traditional money would definitely change the status quo of the crypto community," Deng told CNBC's Arjun Kharpal.

Blockchain is the underlying technology for digital currencies and acts as a global database of transactions. It has been touted as being able to revolutionize the payments industry but it has many other uses.

China has signaled that it doesn't want to over-regulate its digital currency, instead letting companies "experiment" with it, said Edith Yeung, managing partner at Proof of Capital.

She added that the country is looking at this as a long-term investment. Driving the adoption of digital currency might be a way to ensure their currency doesn't lose value.

"And I really think that the U.S. needs to hurry up," she added, "otherwise, I think what China is doing is leading the way to drive more dominance for the renminbi for the world."

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China's crypto boom is expected to be less 'fragmented' as government backs blockchain efforts - CNBC

Swedish gold-for-cryptocurrency scammer finally extradited to US – The Next Web

A Swedish citizen has been extradited from Thailand to the US. The Swede is facing charges of securities fraud, wire fraud, and money laundering based on a heinous cryptocurrency investment con hes run since 2006.

According to a US Department of Justice release, Roger Nils-Jonas Karlsson was extradited yesterday after being arrested in Thailand in June this year.

As Hard Fork has previously reported, Karlsson and his company, Eastern Metal Securities (EMS), were charged earlier this year following a complaint that claimed he had been running a gold-based investment scam.

Karlsson reportedly used a website to invite potential investors to buy shares in exchange for an eventual payout of in gold. However, the funds were never used to buy gold. Rather, they are tied up in real estate in Thailand, and not returned in any way to the investors.

The accused reportedly offered investments in shares of gold for $98 per share. Karlsson said each share would lead to a payout of 1.15 kilograms of gold. Thats insane, when you consider that the same weight in gold would cost you over $47,000 in the US at the time of writing.

The scammy website used by Karlsson directed investors to make investments in cryptocurrencies, such as Bitcoin.

According to the DoJ statement, Karlsson allegedly defrauded more than 3,750 victims of over $11 million.

It should also be noted that this indictment and extradition is to have Karlsson present in court to defend these allegations. He is yet to be found guilty of the above.

Published November 19, 2019 09:36 UTC

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Swedish gold-for-cryptocurrency scammer finally extradited to US - The Next Web

TRM Labs, the first cryptocurrency risk management platform, raises $4.2 million in funding from Initialized Capital, Blockchain Capital, PayPal…

"At TRM, we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people," said Esteban Castao, co-founder and CEO of TRM Labs. "By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people."

The growth of cryptocurrencies is a global phenomenon and brings both opportunities and new risks to financial institutions. TRM is accelerating the safe adoption of crypto assets with its platform designed to help financial institutions monitor and mitigate these risks at scale. Compliance teams at financial institutions use TRM to risk-score their cryptocurrency-related transactions, customers, or partnerships, helping them to simplify customer due diligence and meet regulatory requirements.

TRM integrates with more than a dozen blockchains, and analyzes billions of virtual asset transactions to detect signs of fraud and financial crime like money laundering in real-time. TRM launched out of the startup accelerator Y Combinator this summer. Since then, it has delivered its cryptocurrency compliance and risk management solutions to global financial institutions including major banks, brokerages, and exchanges across US, Latin America, Asia, and Europe.

"PayPal has been trusted by consumers for over 20 years because of its emphasis on fraud prevention and risk management," said Rahul Raina, co-founder and CTO of TRM Labs. "Their strategic investment in TRM signals their continued commitment to ensuring safety and compliance as the digital payments landscape evolves and innovates."

Initialized Capital, early investors in Coinbase and Digit, also participated in this fundraise. "Illicit activity is an existential problem for crypto since it impacts the willingness of financial institutions, regulators, and consumers to embrace crypto," said Garry Tan, co-founder and managing partner of Initialized. "We can't imagine more mission-oriented founders who can bridge the worlds of traditional finance, compliance, and crypto to tackle this critical problem."

The new funding will be used to grow TRM's engineering and data science teams, expand into new markets, and accelerate product development.

Spencer Bogart, General Partner at Blockchain Capital, said that the company's solution is desperately needed by financial institutions. "TRM provides a solution that every financial institution needs today because they are either establishing plans to directly engage with crypto or because they inevitably have customers or partnerships that are in some way exposed to cryptocurrency transactions."

About TRM

Founded in 2018, TRM helps financial institutions to measure, monitor, and mitigate their cryptocurrency risk exposure so they can safely embrace cryptocurrency-related transactions, products, and partnerships. TRM's risk management platform includes solutions for cryptocurrency KYC/AML, entity risk scoring, transaction monitoring, threat intelligence, and wallet screening. Financial institutions use TRM to monitor and mitigate their direct and indirect risk exposure to cryptocurrencies. For instance, a global bank may use TRM to detect whether customers are depositing funds sourced from virtual currency linked to illicit activity. A payment company may use TRM to monitor the risk of its cryptocurrency-related partnerships. TRM is based in San Francisco, CA and hiring across engineering, product, sales, and data science.

Contact:contact@trmlabs.com

SOURCE TRM Labs

https://www.trmlabs.com

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Is the IRS HODLing Out on Us? IRS Issues Additional Cryptocurrency Guidance Addressing Hard Forks, Soft Forks, and Airdrops – JD Supra

Updated: May 25, 2018:

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Is the IRS HODLing Out on Us? IRS Issues Additional Cryptocurrency Guidance Addressing Hard Forks, Soft Forks, and Airdrops - JD Supra

Maksim Zaslavskiy of the cryptocurrency Recoin was sentenced to 18 months in prison for lying to investors – Crain’s New York Business

At one point Paris Hilton and boxer Floyd Mayweather got on the bandwagon touting ICOs.

Maksim Zaslavskiy, a computer programmer from Sheepshead Bay with masters'degrees in finance and law, got into this wild-west of Wall Street two years ago when he launched an ICO forRecoin, which was intended to help him buy real estate. He issued a slew of false and misleading statements about the ICO, which he claimed was backed by property investments in the U.S. and overseas and led by a team of experienced real estate professionals.

Later, he switched to marketing a coin that he described as an exclusive and tokenized membership pool hedged by diamonds. That wasnt true, either.

Still, mania for all things crypto was so intense during the summer of 2017 that about 1,000 investors took the bait and invested at least $300,000 in Zaslavskiys ICOs.

His attorney, Mildred Whalen of the Federal Defenders of New York, argued that Zaslavskiy refunded as much money as he could before PayPal froze his customers accounts over concerns that payments for hisICOs were made with stolen or fraudulent credit cards.

Zaslavskiy became the first person charged criminally with ICO fraud when federal prosecutors brought a case against him in 2017 and he pleaded guilty last year to conspiracy to commit securities fraud. Zaslavkiy is a native of the USSR who immigrated to New York in 1991 with his family when he was 12.

He told federal Judge Raymond Dearie he was sorry for doing things he knew were wrong.

At no point am I a thief, he insisted in Brooklyn federal court Monday morning.

You are a thief, Dearie replied. You took something that didnt belong to you under false pretenses.

Assistant U.S. Attorney Julie Nestor observed that cases like Zaslavskiys are a dime a dozen, so a stiff sentence was necessary to send a message other fraudsters in the crypto-currency world.

Judge Dearie agreed.

This is a very unusual case for a lot of reasons. It involves new technologies and new currencies, he said. But there is nothing new about lying or flagrant fraud.

Read more:
Maksim Zaslavskiy of the cryptocurrency Recoin was sentenced to 18 months in prison for lying to investors - Crain's New York Business

Blockchain, Cryptocurrency, and the Future of Monetary Policy – 2019 Report – ResearchAndMarkets.com – Business Wire

DUBLIN--(BUSINESS WIRE)--The "Blockchain, Cryptocurrency and the Future of Monetary Policy - 2019 Report" report has been added to ResearchAndMarkets.com's offering.

The rise of cryptocurrencies offers an important perspective on the successes and the failures of monetary policy, as we detail in our report. Cryptocurrency seems to offer the promise of currency secure from compromise, safe from manipulation by financial institutions and increasing in value at a rapid pace. But, does it really?

Some have suggested that cryptocurrency and blockchain technology may signal the beginning of the fourth industrial revolution: "Speaking as part of the 18th collective study of the Political Bureau of the Central Committee on October 24, 2019 in Beijing, Xi Jinping, President of the People's Republic of China and General Secretary of the Communist Party of China, said blockchain technology has a wide array of applications within China, listing topics ranging from financing businesses to mass transit and poverty alleviation."

As indicated, we have updated the report to include information on the 10/18/19 session at the World Bank IMF Annual Meeting during which China outlined its plan for using digital currency in Africa and the Caribbean: "Central Bank Digital Currencies in the Caribbean: How Can Public and Private Sectors Work Together."

The report objectively outlines the pros and cons.

These developments have several potential impacts: first, the vast and as-of-yet untapped potential of blockchain technology to transform the social infrastructure and second, the force with which cryptocurrencies may influence the future of monetary policy. These are covered in this report.

The first section of the report describes these technologies. Next, it examines the ramifications for monetary policy. The author's forecast for LIBRA and review of new information from sessions they attended at the Annual Meeting of the IMF/World Bank on the promotion of China's digital currency to certain finance ministers give a unique, useful and objective take on what the future might bring. The author closes with an initial forecast of one possible path for cryptocurrencies and monetary policy.

The report helps:

Key Topics Covered

1. Blockchain Technology

1.1 Cryptocurrency

2. Regulatory Concerns

2.1 Criminal Implications and Risks

2.2 Cybersecurity Risks

2.3 Asset Classification Risks

2.4 Taxation Risks

2.5 Disintermediation

2.6 China's Appeal

2.7 US Takeover of the LIBRA Association

3. The Future of Monetary Policy

Companies Mentioned

For more information about this report visit https://www.researchandmarkets.com/r/h8lg5e

Read more:
Blockchain, Cryptocurrency, and the Future of Monetary Policy - 2019 Report - ResearchAndMarkets.com - Business Wire