Category Archives: Bitcoin

By Nate Raymond | NEW YORK

NEW YORK A Florida software engineer and a New Jersey pastor are expected on Monday to face trial in a case stemming from an investigation into a bitcoin exchange and a data breach at JPMorgan Chase & Co (JPM.N).

Jury selection is set to begin in Manhattan federal court in the case of Yuri Lebedev, who authorities call the architect of bitcoin exchange Coin.mx's electronic platform, and Trevon Gross, a pastor and ex-chairman of a now-defunct credit union.

Prosecutors contend Lebedev schemed to deceive financial institutions into processing transactions for the unlicensed Coin.mx. They say he also participated in bribing Gross to gain control over the credit union to facilitate the virtual currency business.

Both men have pleaded not guilty. Eric Creizman, Lebedev's lawyer, said he was "looking forward to his day in court." Gross' attorneys did not respond to requests for comment.

They are among nine people who have faced charges following an investigation connected to a breach JPMorgan disclosed in 2014 that exposed more than 83 million accounts.

Gross, 52, and Lebedev, 39, were not accused of hacking.

But they came under scrutiny in connection with Coin.mx, which authorities said was operated by Anthony Murgio, who attended Florida State University with Lebedev, and was owned by an Israeli behind the JPMorgan breach, Gery Shalon.

Prosecutors say Shalon, together with Maryland-born Joshua Samuel Aaron, orchestrated cyber attacks that resulted in the theft of over 100 million peoples' information.

Prosecutors said they carried out the cyber crimes to further other schemes with another Israeli, Ziv Orenstein, including pumping up stock prices with promotional emails. Shalon, Aaron and Orenstein have pleaded not guilty.

Prosecutors said Coin.mx operated through a front called "Collectables Club" to trick financial institutions into believing it was a memorabilia club while it converted, with no license, millions of dollars into bitcoin.

To further evade scrutiny, in 2014, Murgio, with Lebedev's help, tried to take over Helping Other People Excel Federal Credit Union of Jackson, New Jersey, which was linked to HOPE Cathedral.

To do so, they and others paid $150,000 in bribes via the church to Gross, its pastor, in exchange for facilitating Murgio's takeover and arranging for Lebedev and others to be put on the credit union's board, prosecutors said.

Gross' lawyers deny he was lining his pockets with what they call a church donation and say Collectables Club victimized the board.

Federal regulators took the credit union into conservatorship in 2015. Murgio pleaded guilty in January.

(Reporting by Nate Raymond in New York; Editing by Tom Brown)

Trump-branded consumer products have suffered new blows, with U.S. retailers Sears Holdings Corp and Kmart Corp discontinuing online sales of 31 Trump Home items, while new details emerged showing sales of Ivanka Trump's brand fell in the weeks before Nordstrom Inc stopped carrying her products.

WASHINGTON The new chairman of the U.S. Federal Communications Commission under President Donald Trump is keeping under wraps his strategy to revise or reverse the Obama administration's "net neutrality" rules, but emphasized he is committed to ensuring an open internet.

Amazon.com Inc warned on Friday that government actions to bolster domestic companies against foreign competition could hurt its business, in a possible reference to U.S. President Donald Trump's "America First" agenda.

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US trial set over bitcoin exchange linked to JPMorgan hack probe - Reuters

Bitcoin is showing signs of becoming a serious asset class.

Last week's price swings hardly back up that assertion. The cryptocurrency dropped 7.8 percent on Thursday after newsthat the People's Bank of Chinathreatened to shut exchanges that violate money-laundering rules. The announcement also prompted some of the biggest websites operating bitcoin in the country to haltwithdrawals, limiting them to converting the digital coin to yuan and depositing it in local banks.

Two-day bounce in late 2013

70%

For all the volatility, though, there are indications that bitcoin is acting more grown up. Go back to December 2013, when the PBOC intervened after the cryptocurrency reached a record high of $1,137. It then dropped 51.4 percent in a week, only to bounce back about 70 percent in the next two days and fall below $600 in another week. Bitcoin then settled into a slow descent to $183 by January 2015.

Maturing

Bitcoin's wild swings hardly make it look like a mature market, but it's calmer than it was three years ago

Source: Bloomberg

The latest swings followed a similar pattern. As soon as bitcoin breached $1,000, the Chinese authorities got involved and the price plunged. Last week, once again, that level was pierced, and once more the central bank entered the fray. On Monday, the price was little changed at $1,003.

The difference now is the magnitude of the moves. While the currency did fluctuate by double digits some days, these were nothing like the gyrations the PBOC prompted back in 2013.

Less Fickle

While bitcoin has been volatile, it's nothing like the old days

Source: Bloomberg

Movements deriving from black swan events for the currency are therefore much smaller and shorter-lived than they once were. There are some technical reasons for that: There's greater volume,circulation is broader, and the overall market is deeper.

The relative stability of bitcoin is probably also a result of the variety of instruments associated with it available to investors. People wanting to hedge their positions or even short the asset, for example, can use futures contracts traded through Bitmex.com, a marketplace that specializes in them. Investors can even use the platform to check whether the direction of the currency is changing.

The quarterly contract sold at Bitmex entered backwardation -- the future price fell below the spot price -- in January, shortly after the PBOC started cracking down on the exchanges. In a market with limitedsupply, the fact that most of the big traders are betting prices will go down must be bad news. So it proved, but this time hedging may have limited the downside.

Bitfinex, another site, has created an active marketplace for lending bitcoin to people who want to sell it short. The exchange even publishes an average daily rate for borrowing the currency, which has been going up in the past two weeks.

Bitcoin is still a small market, prone todislocations, but as the variety of instruments around the currency grows, it's starting to look more like the real thing.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

To contact the author of this story: Christopher Langner in Singapore at clangner@bloomberg.net

To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net

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Is Bitcoin Growing Up? - Bloomberg Gadfly - Bloomberg

As Iran moves away from using the US dollar, bitcoin has emerged as a potential replacement. The cryptocurrency could thrive in a country where more than 50 million people are connected to the internet, financial experts claim.

In the wake of US President Donald Trumps travel restrictions on seven countries including Iran, the governor of the Central Bank of Iran announced last month that the US dollar will be replaced with a stable reserve currency more frequently used in foreign trades.

READ MORE: Iran to dump the US dollar in response to Trump's travel ban

Two possible replacements are being explored such as using one currency, potentially the euro, or allowing Iranians to select from multiple currencies, reported the Coin Telegraph.

The announcement has caught the attention of the countrys first bitcoin exchange, BTXCapital, which sees Iran as a market with potential to grow. The market is massive. A large population with a high proportion connected to the internet means there is a lot of completely untapped market potential, Ganesh Jung, CEO of Draglet who develop an exchange platform used by BTXCapital, told IBTimes UK.

India recently saw a surge in bitcoin usage following the countrys demonetization of high-value paper notes, pushing people towards cashless transactions.

However, last week the Reserve Bank of India issued a warning to bitcoin users saying it is not licensed in the country.

Any user, holder, investor, trader, etc. dealing with virtual currencies will be doing so at their own risk, they said in a statement.

The cryptocurrency faces similar challenges in Iran where, according to the central bank, Article 2 of the states Money and Banking Act states that The Currency of Iran shall be in the form of money and coins, which were either in circulation at the time the legislation was passed or which are issued under the Act.

However, the restriction does not prevent bitcoin being used for other purposes including money transfers overseas.

READ MORE:Bitcoin keeps popping with prices at 2016 highs

Jung claims Iran will be supportive of bitcoin and use it as a way to signal that the country is hoping to reintegrate with the West and bitcoin is one way to do this."

Bitcoin more than doubled its value in 2016, becoming the years best-performing currency. It rallied at 126 percent on the back of strong demand in China, where the yuan saw its worst year on record, weakening 6.5 percent.

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'Untapped potential': Bitcoin poised to profit from Iran's ban on US ... - RT

Forbes

Bitcoin Or Bust: Taking British Banking Out Of Exchanges - Forbes Forbes With a host of bitcoin exchanges in the UK having gone out of business from pressure exerted by commercial banks - through denying or withdrawing facilities ... Is It Time To Remove UK Banks From the Bitcoin Ecosystem?newsBTC Austria gets first dedicated 'Bitcoin Bank' - EconoTimesEconoTimes Blockchain and Bitcoin round-up: 13 February 2017 Banking ...Banking Technology all 4 news articles »

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Bitcoin Or Bust: Taking British Banking Out Of Exchanges - Forbes - Forbes

Bitcoin is by default and by nature a currency which shows no respect for borders. One of the less popularized advantages of Bitcoin is that, through the power of encryption, immutable transactions are possible, as well as the ability to withhold funds from seizure. In the nations which are currently producing the most refugees, Bitcoins digitization is another great aspect of it people are less likely to steal what they cannot see. A private key can be written and stored virtually anywhere. For all intents and purposes, Bitcoin is precisely the currency you would want if your world were torn apart by war and famine, provided you had some way to turn it into usable goods.

AirBNB recently entered the political conversation by launching its #WeAccept campaign. The decentralized rental service made a stern political statement, despite having a bright and positive message, with the following commercial:

The sentiments expressed were not long ago what would be considered an All-American attitude. We urge the hungry, the tired, the broken to reach our shores and thrive in the land of the opportunity. For decades gone past, people from all corners of the globe have been able to do as much. Bitcoins resistance to regulatory jurisdiction, at the code level, is less of a political decision than it is a security matter. For it is obvious that if the state can compromise a Bitcoin transaction, someone else can, as well.

But as long as AirBNB is advertising an internationalist message, perhaps it should also adopt an internationally immutable payment method. AirBNB could increase its own take of fees placed on providers, and attract users who may struggle to provide other forms of digital payment. CEO Brian Chesky recently asked Twitter followers:

He then came back and said:

Multiple users had suggested Bitcoin. With things that can require later pull transactions such as rental services, the cryptocurrency has certain limitations that must be worked out within the solution in question.

Its not possible, for instance, to bill a persons Bitcoin wallet for funds previously authorized. The Bitcoin holder must choose to push the funds to the requestor. In implementation, this could mean that Bitcoin users would be required to pay more than the amount of the actual rental via AirBNB, and have the remainder of funds returned to them upon successful closing of the transaction.

But this writer is not here to talk about the technical implementation of Bitcoin for AirBNB. I am here to talk about the philosophical reasons for adopting Bitcoin, and potentially for refusing certain other payment methods which have shown themselves to be diametrically opposed to the views expressed by AirBNB. Credit card companies have willingly shut down freedom-fighting organizations like WikiLeaks as part of the banking blockade. Indeed, this episode in recent history was one of the most attention-bringing for Bitcoin, and one of Satoshis last memos expressed concern about

Credit card companies have willingly shut down freedom-fighting organizations like WikiLeaks as part of the banking blockade. Indeed, this episode in recent history was one of the most attention-bringing for Bitcoin, and one of Satoshis last memos expressed concern about overflow government persecution:

I make this appeal to WikiLeaks not to try to use Bitcoin. Bitcoin is a small beta community in its infancy. You would not stand to get more than pocket change, and the heat you would bring would likely destroy us at this stage.

While the WikiLeaks project deferred to Satoshi at the time, they did later accept Bitcoin when it was flourishing. AirBNB accepting Bitcoin in order to protect the privacy of its users, as well as the peace of mind of its socially conscious board, seems an obvious plus for both parties. Chesky says the company has long considered the idea, but there is no time like the present. Intermingling the idea of a universal currency for a united race of humans would be a plus, but its unlikely anyone expects as much of the company.

Intermingling the idea of a universal currency for a united race of humans would be a plus, but its unlikely anyone expects as much of the company.

Featured image from Shutterstock.

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Airbnb and Bitcoin: An Obvious Match - CryptoCoinsNews

Bitcoin price collapsed this past week vs the USD due to Chinese exchanges pausing withdrawals. It looks like BTC/USD may decline further.

Bitcoin price collapsed this past week vs the USD due to Chinese exchanges pausing withdrawals. It looks like BTC/USD may decline further.

This past week there was a strong downside move initiated in Bitcoin price taking it below the $1000 level against the US Dollar. The main reason was the PBOCs warning to Chinese Bitcoin exchanges, which resulted in suspension of withdrawals temporarily. The BTC to USD price dived down, and broke the $1050 and $1000 support levels to trade as low as $916.

However, the price later found support and started a recovery. It moved above the 23.6% Fib retracement level of the last decline from the $1114 high to $916 low. However, the upside seems to be limited near $995 and $1000. There is a short-term bearish trend line formed on the 4-hours chart (data feed from SimpleFX) of BTC/USD. It is acting as a barrier near $995, and preventing gains.

There are a few other hurdles around the same level. Like, the 100 simple moving average (H4) at $998 is positioned to act as a resistance. Moreover, the 38.2% Fib retracement level of the last decline from the $1114 high to $916 low is also near the same resistance. All in all, it looks like the price may struggle to move back above $1000. If there is no close above it, the price may move down once again towards $950.

Looking at the technical indicators:

4-hours MACD The MACD is in the bearish zone with no major sign of a trend change.

4-hours RSI (Relative Strength Index) The RSI is steady below the 50 level, which is a bearish sign.

Major Support Level $950

Major Resistance Level $1000

Charts courtesy SimpleFX

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Bitcoin Price Weekly Analysis BTC/USD To Extend Its Slide - newsBTC

Novice cryptocurrency users are often worried about how they can best store their bitcoin balance moving forward. Keeping money on an exchange wallet needs to be avoided at all costs. Using a desktop bitcoin wallet makes a lot more sense, as the user is in full control of their funds at all times. Below are some of the most convenient desktop bitcoin wallets for novice users, all of which are well worth checking out.

One of the oldest desktop bitcoin wallet solutions available today goes by the name of Armory. On paper, the desktop wallet is rather easy to set up, as most of the world is done through the installation procedure. Do keep in mind Armory requires the users to download the entire blockchain on their computer. This process will take a few hours or longer, as the blockchain is roughly 100GB in size right now.

What makes Armory so appealing are some of its more extensive features, even though they may not necessarily appeal to novice cryptocurrency users right away. Taking security seriously is of the utmost importance when it comes to bitcoin. Armory offers multi-signature and cold storage support, which will provide for more security to both novice and experienced users. Armory is available for Windows, Linux, and MacOS, and is certainly worth checking out. It also provides a bit more privacy, as the wallet does not reveal the IP address linked to your bitcoin wallet.

It may seem surprising to see the Bitcoin-QT wallet ranked number 3 on this list, but there is a good reason for that. Not only does the QT client require users to download the entire blockchain, it is also one of the more bland wallets for novice users.At the same time, Bitcoin-QT works quite well and receives regular updates, which make it worth checking out. Users will need to encrypt their wallet themselves, though, which may be considered a daunting task for novice users. In the end, Bitcoin-QT is a bit of a hit-and-miss among novice cryptocurrency users, thus your mileage may vary.

Multibit has always advertised itself as the go-to wallet for desktop bitcoin users. It takes mere seconds to set up a bitcoin wallet, as everything is done through a Setup Wizard. Moreover, the wallet is available in several dozen languages, which makes it more appealing to non-English speakers as well. The only downside is how Multibit is only available on Windows right now, which leaves Linux and MacOS users out in the cold. Then again, most novice cryptocurrency users seem to be using a Windows computer, which makes Multibit a more than solid pick.

From a convenience point of view, Electrum is the best desktop Bitcoin wallet client hands down. It is very lightweight, easy to set up, and does not require the whole bitcoin blockchain to be downloaded. Electrum has been around since 2011 and still receives regular updates to improve stability and add a few new features as time progresses. Users can also choose between various user interfaces, tweaking the Electrum wallet look and feel to their liking.

Similarly to most other wallet services, Electrum requires specific servers and nodes to maintain its connection to the bitcoin network. However, the Electrum servers and decentralized and redundant, which means users will always be able to access their bitcoin wallet without interruption. Last but not least, the wallet supports various add-ons and plugins, allowing for even more customization.

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Top 4 Best Beginner Bitcoin Wallets for Your Desktop - The Merkle

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Genesis Mining - Cloud Bitcoin Mining Contracts

Forbes

After Bitcoin Dropped 10%, How Likely Is An ETF Now? Forbes As Tyler and Cameron Winklevoss's almost four-year-long pursuit to offer a Bitcoin exchange-traded fund or ETF nears its final deadline on March 11, developments in bitcoin continue to shift the calculus for tea-leaf readers. On Thursday, bitcoin shed ... Needham's Insights Into Factors Affecting SEC's Decision on Bitcoin ETFsNigeria Today all 2 news articles »

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After Bitcoin Dropped 10%, How Likely Is An ETF Now? - Forbes

Tech-savvy Chinese bitcoin traders may have just seen their good days come to a halt as China's central banks continue to place sharperscrutiny over the virtual currency market.

Under pressure to clamp down on capital outflow and prop up the Chinese currency, the People's Bank of China warned nine bitcoin trading exchanges at a meeting in Beijing on Wednesday that it will shut down venues that violate foreign exchange management, money laundering, and other regulatory rules. The warning is followed by some of China's biggest bitcoin exchanges announcing that they would prevent customer withdrawals of the cryptocurrency.

Three of China's biggest bitcoin exchanges OkCoin, Huobi and BTCC, which had accounted for more than 90 percent of the global bitcoin market in January, had respectively suspended withdrawals or subjected all bitcoin withdrawals to a 72-hour review. The disruption is likely to temporarily constrain volumes further after already shrinking trading volumes since the government started clamping down in January.

Analytics platform Sosobtc showed the number of bitcoins traded on the three exchanges slid from 13.6 million on Jan. 6 to just over 120,000 on Feb. 9. but as an analyst pointed out, the exchange volumes might be misleading.

"Prior to January 24 those exchanges didn't charge a trading fee and the volume was largely compared to exchanges that were charging a trading fee. Without a trading fee, I could sit there and trade 1,000 BTC back and forth with myself all day and generate massive volume but it isn't economically meaningful," said Spencer Bogart, a bitcoin analyst at Needham & Co., one of the few Wall Street investment banks that covers bitcoin.

"Exacerbating this effect was the fact that these exchanges also provided leverage for trading. Starting on January 24, in response to concerns from the PBOC, the Chinese exchanges began charging a trading fee and stopped offering leverage. In that sense it's a one-time shock that has normalized trading volumes and not an ongoing 'downward spiral'," said Bogart.

But the announcement is notable and Bogart said he expects that "volume will fall significantly until withdrawals are re-enabled and confidence in the exchanges and regulators returns."

China has been the leading venue for bitcoin trading. Bitcoin prices have soared to near-record highs since last year even as the Chinese currency maintains a sharp depreciation streak against the dollar. But bitcoin's meteoric 120% gain in 2016 is also coincided with China's ever-widening capital outflow.

According to an outlook report fromthe Institute of International Finance on Thursday,China is expected to have around $1 trillion of resident outflows, including errors and omissions, and $560 billion of net capital outflows in 2017. In the past, the Chinese government has resorted to several measures to stanch the money outflows, which includesrequiring citizens to report overseas transfers over $10,000, discouraging Chinese companies from making overseas acquisitions andbarring individuals from moving more than $50,000 out of the country each year.

However, none of these measures have managed to bring any pronounced improvements to the problem so far, which is lately evidence by China's currency reserves hitting down below the $3 trillion mark. A lot of this is said to have come from Chinese investors' resort to using bitcoin as a way to move money out of the country.

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Bitcoin Trading Comes Under Threat of Chinese Government - TheStreet.com