Texas Regulators Shut Down Three Cryptocurrency Scams

The Texas State Securities Board has issued an emergency action to halt the deceitful offerings of investments in three cryptocurrency related schemes. The agency entered a cease and desist order against Coins Miner Investment Ltd, DigitalBank Ltd, as well as Ultimate Assets, who is charged for offering Texans misleading ROIs and promising to grow an

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Dead Coin Walking: BitConnect Set to Be Delisted from Last Crypto Exchange

BitConnect’s BCC token is set to be delisted from the last cryptocurrency exchange that still traded it, meaning it’s about to become a dead coin over a lack of liquidity. Surprisingly, the token still has a market cap of over $6.6 million. TradeSatoshi, a little-known cryptocurrency exchange with a daily trading volume of about $1.16 … Continued

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Crypto Lender SALT Now Available in 35 States

Crypto Lender SALT Now Available in 35 States

SALT, one of the earliest cryptocurrency-backed lending providers in the space, announced this week it was expanding into 20 more states in the US, bringing its total market penetration to 35, including Washington DC, across America. And while that number is impressive on its own, SALT accomplished this during an extended bear market.

Also read:  15,000 Twitter Crypto Scam Giveaway Botsm, Reports Duo Security

SALT Crypto Lending in 20 More States

This week, cryptocurrency lending outfit SALT announced it was making its services available in 20 more states, bringing the grand total to 35 out of 50 in the United States. The US is geographically very large, and so covering ground on any wider scale is always an obstacle for businesses. That it too has 50 states with 50 different regulations governing a given industry adds to the task immeasurably. Combine all of that with the fact SALT is expanding in a decidedly bear market, and their feat becomes even more impressive.  

Crypto Lender SALT Now Available in 35 States

CEO Bill Sinclair explained, “SALT loans are and will be structured within the laws, regulations, and guidelines provided by each jurisdiction in which the loan is offered. The first borrowers to get loans in the new system were those who previously applied in areas in which we were not approved to lend and were still interested in a SALT loan.”

The crypto-lending company also used the announcement to roll out a new financial product, Proof of Access (POA), that they hope will expand “member flexibility.” A blog post detailed, “With the long-awaited introduction of POA, members now have access to more flexibility when it comes to structuring their loans. This gives members the opportunity to tailor their approach in order to meet their individual borrowing needs. Members no longer have to pre-redeem SALT membership units in order to access borrowing limits. They can simply use their SALT membership units to customize the terms of their loan.”

Florida, Illinois, Texas, Kansas, Michigan, Wisconsin, Maryland, Connecticut

POA essentially gives users the ability to modify loan terms using the firm’s proprietary token. To become a member, at least one SALT token is required, allowing users potential access to adjust interest rates on borrowing.

Crypto Lender SALT Now Available in 35 States

“As blockchain assets continue to grow in abundance and popularity,” Mr. Sinclair also stressed, “technology will need to pivot accordingly. Opening doors for our potential borrowers who may have selected different investments than bitcoin and ethereum will be a key differentiator for SALT in the future.”

Crypto borrowing is now available to residents of such states as Florida, Illinois, Texas, Kansas, Michigan, Wisconsin, Maryland, and Connecticut, to name a few, where SALT has expanded services.

What do you think about crypto-backed loans? Let us know in the comments section below. 


Images via Pixabay, Duo Security.


Be sure to check out the podcast, Blockchain 2025; latest episode here.

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Bitmain Launches Key Crypto Mining Facility in Texas

Bitmain Launches Key Crypto Mining Facility in Texas

Bitmain Technologies Ltd. is launching a crypto mining facility and blockchain data center in the U.S. state of Texas at a former aluminum smelting facility with a recently-retired coal power station. The company is reportedly getting a tax abatement phased in over 10 years.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Crypto Mining Facility in Texas

Bitmain Launches Key Crypto Mining Facility in TexasBitmain Technologies Ltd. announced Monday the launch of its newest blockchain data center and mining facility in a rural part of the U.S. state of Texas. According to the company’s announcement:

The Milam County blockchain data center and cryptocurrency mining facility represents a key component of Bitmain’s strategic investment and expansion plans within North America.

Bitmain Launches Key Crypto Mining Facility in TexasThe facility will be located in the city of Rockdale, roughly 50 miles northeast of Texas’ capital, with an estimated population of 5,595. It will occupy a section of the former Alcoa Rockdale operations site which includes an aluminum smelting facility and a recently-retired coal-burning power plant. Alcoa Inc. is the world’s sixth largest producer of aluminium.

Milam County Judge Dave Barkemeyer confirmed to local newspaper Temple Daily Telegram last week that Bitmain is moving to the county. With the construction and facility setup underway, the facility is expected to be completed “early in the fourth quarter of 2018, with the data center initiation in early 2019,” according to the mining giant.

Bitmain Launches Key Crypto Mining Facility in Texas“Bitmain is working with Alcoa Inc. to repurpose the former aluminum smelter to become the home of Bitmain Technologies Ltd. site,” the publication elaborated, adding:

An incentive plan that includes a tax abatement phased in over 10 years was approved by the Milam County Industrial Development Corp. and the Milam County Commissioners Court.

Founded in 2013 and headquartered in Beijing, the global semiconductor and electronics manufacturing company has offices in Amsterdam, Hong Kong, Tel Aviv, Qingdao, Chengdu, Shanghai and Shenzhen. Bitmain owns several brands including Antminer, Antpool, and Hashnest. The company was recently valued at $12 billion.

$500+ Million Investment & 400+ Jobs

The facility “represents an investment of more than US $500 million by Bitmain over an initial period of seven years into the local, county, and statewide economies,” according to the company’s announcement.

Bitmain Launches Key Crypto Mining Facility in TexasBitmain expects to bring in 400 local jobs to the Rockdale economy over the first two years. The company is currently recruiting for multiple positions, ranging from senior management, sales and finance to research associates, engineers, technicians and other roles.

“The new jobs will be full-time, fully benefitted and will include positions in engineering and management, as well as opportunities for data center technicians,” the Telegram added.

Citing that the deal is a “game changer,” the Milam County Industrial Development Corporation president, Richard E. Williams Jr., was quoted by local TV station Kxxv saying:

The 400 new jobs in addition to an estimated 137 spin-off jobs could make a major dent in Milam County’s relatively high unemployment rate, while salaries and benefits are above average for Central Texas.

What do you think of Bitmain launching a mining facility and blockchain data center in Rockdale? Let us know in the comments section below.


Images courtesy of Shutterstock, Bitmain, City Data, and Alcoa.


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$500 Million Bitmain Data Center to Bring 400 Jobs to Texas Coal-Mining Town

Bitmain, the world’s largest bitcoin miner and mining equipment maker has announced construction plans for a new blockchain data center and cryptocurrency mining facility in the city of Rockdale in Milam County, Texas. CCN earlier reported that the company released plans to construct a data center in Texas as part of an ongoing North American … Continued

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Mining Round-Up: Sky Mining CEO Flees with $35 Million, Texas Attracts Miners

Mining Round-Up: Sky Mining CEO Flees With $35 Million, Texas Attracts Miners

In recent mining news, it has been alleged that the CEO of Vietnam-based Sky Mining has fled the country with $35 million USD in investor funds in his possession. Meanwhile, in the US, Tmgcore has acquired a 100-megawatt data center in Dallas, Texas, and local media have reported that Bitmain will open a mining facility in a former aluminium smelter in Rockdale, Texas.

Also Read: Market Caps for Privacy-Centric Currencies Have Dropped Significantly

Investors Allege CEO of Vietnamese Mining Company Fled to U.S. With $35 Million

Mining Round-Up: Sky Mining CEO Flees With $35 Million, Texas Attracts MinersInvestors and board members of Ho Chi Minh City-based Sky Mining have expressed fears that the company’s chief executive officer, Le Minh Tam, has fled the country and run away with approximately $35 million USD in investors funds.

According to local media, Mr. Tam has not been contactable since Monday, with the exception of an apology note posted to investors on Wednesday via Facebook. Investors reportedly visited the company’s main office in Phu Nhuan District to discover “the building closed and the company nameplate removed.” Additionally, “all 600 mining machines in the company’s factory in the neighboring Dong Nai Province’s Bien Hoa Town had been taken away by a group of people claiming to be maintenance workers.”

Le Minh Hieu, the deputy chairman of the company, is forming a temporary board to “support investors and calculate the remaining asset[s] of the company,” and has accused the CEO of fleeing to the United States. “[The board] has reported this to the police and showed evidence that we are not guilty,” said Mr. Hieu.

Bitmain to Open Mining Facility in Former Aluminum Smelter

According to local media, Bitmain will be opening a bitcoin mining facility in a former aluminum plant in Rockdale.

Jeff Mosier, an energy and environment reporter for Dallas News, states: “The new Bitcoin mining facility is going to be opening at the former Alcoa Aluminum smelter, and that’s next door to the coal plant that just closed. So now that that’s gone, they have a big industrial facility with lots of electricity infrastructure [capable of] Bitcoin mining, which is essentially a huge server farm.”

No indication has been made as to when the facility will launch operations, however Dallas News reports that a listing on job site Indeed.com indicates that Bitmain Technologies is seeking to employ a project manager for the Rockdale location. According to the publication, the facility is expected to create “300 to 500 jobs.”

Tmgcore Purchases $60 Million Data Center in Dallas

Mining Round-Up: Sky Mining CEO Flees With $35 Million, Texas Attracts MinersMining company Tmgcore has acquired a “$60 million USD, 150,000-square-foot data center” in Plano, Dallas, according to local media.

The facility is reportedly capable of a 100-megawatt power load, with the Tmgcore chief executive officer, JD Enright, stating: “One of the things you need is a lot of power, and there’s not a lot of places with 100 MW lying around.”

Mr. Enright claims that the company has “developed a two-phase liquid cooling Immersion technology to dramatically decrease cooling costs by up to 90 percent, allowing us to mine anywhere — even in Plano in the middle of the summer.”

Do you think that Texas will continue to see investment from cryptocurrency mining companies? Share your thoughts in the comments section below!


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Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

The Texas State Securities Board has taken an emergency action to stop a network of crypto-related companies from illegally offering investments in the state. A token offering and a mining firm are among those targeted by the securities board as selling fraudulent “cryptocurrency-related investments.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Emergency Action Taken

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesThe Texas State Securities Board announced Thursday that an emergency action has been taken to “target promoters of crypto-mining investments.” According to the notice published on July 12 by the Board:

Texas Securities Commissioner Travis J. Iles took emergency action July 11 to stop a network of companies from fraudulently offering cryptocurrency-related investments to Texas residents.

Utah-based companies Mintage Mining LLC, Symatri LLC, NUI Social, Social Membership Network Holding LLC, and BC Holdings and Investments LLC are named in the emergency cease and desist order. They are all controlled by Darren Olayan of Lehi, Utah. In addition, NUI Social affiliates, Utah-based Douglas Whetsell and Houston-based Wyatt Mccullough, are also named in the order.

Investment Schemes

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesMintage Mining LLC allegedly issues and offers two different crypto mining-related investments “illegally and fraudulently.” Together with Symatri LLC, they sell “pre-configured computer hardware to mine Kala,” an ERC-20 token which Symatri claims to be “fungible and transferable, and it is expected to be traded on cryptocurrency exchanges in the near future.”

Symatri also claims that more than 13,000 users have signed up for Kala’s ICO, which sold more than 814 million tokens. It supposedly raised over $8.5 million and more than 800 BTC. According to the Commissioner:

Symatri is not disclosing material information about the value of its cryptocurrency Kala. Nor is it providing information about the risks of investments in the computer hardware used to mine Kala.

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesNUI Social is a multi-level marketing company that claims to have more than 300,000 members in 140 countries. Members of the scheme recruit individuals for crypto investments and earn commissions for the people that they recruit.

Whetsell and Mccullough were named for publishing “advertisements targeting Texas residents,” the Commissioner explained. According to the document, the promoters made claims such as:

The average weekly rate of interest varies from three percent to seven percent and the annual rate of interest ranges from 180 percent to 250 percent.

The advertisements also represent that Mccullough’s investment grew 500% within 7 weeks while his uncle’s rose 4,000% in 10 weeks.

The Violations

The order “alleges widespread violations of the Texas Securities Act” by all of the entities and individuals named within. According to the Commissioner, “none of the persons offering any of the investments are registered to sell securities in Texas, nor are the investments themselves registered for sale or have qualified for an exemption from registration.”

The Commissioner elaborated:

The violations include making deceptive claims to the public. Olayan and Mintage Mining, for instance, are telling investors that Mintage is ‘in compliance’ with securities laws, ‘works to always stay ahead of cryptocurrency regulation,’ and ‘remain[s] so continually by keeping in contact with legal firms.’

All named parties have been ordered to immediately cease and desist from offering a security for sale in Texas until the security is registered or exempt. They must also cease acting as securities dealers or agents in the state until they are registered or exempt. They have likewise been told that they cannot engage in any security-related fraud in the state.

What do you think of the Texas State Securities Board’s cease and desist order? Let us know in the comments section below.


Images courtesy of Shutterstock and the Texas State Securities Board.


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TMGcore is running high-efficiency crypto mines in Texas

Out on the plains of East Texas, not far from Dallas, a company called TMGcore is mining crypto. The company, funded to the tune of $70 million, will be mining multiple cryptocurrencies and is using some unique technology to ensure that it doesn’t eat up an entire city’s worth of energy.

“TMGcore will be one of the first companies to utilize 3M’s Novec fluorochemical coolant at the heart of an enterprise scale cryptocurrency mining apparatus,” said CEO JD Enright. “The company’s intelligent mining system uses a Two Phase Liquid Cooling Immersion technology to dramatically decrease cooling costs by up to 90% and lets the company conduct mining operations from anywhere, including the middle of hot and muggy Texas. TMGcore also employs dynamically intelligent mining software that automatically mines the most profitable coin based on realtime market value and difficulty of access for the most profitable deployment of resources in realtime. Our technology is first-to-market and delivers a transformative approach to crypto mining that stands to fundamentally disrupt the market.”

The goal is to create mining infrastructure in the US and to prevent overseas control of the various currencies.

“Giving America a seat at the table is our #1 goal here at TMgcore. Our cooling technology and efficient mining rigs open up more regions of this country to house this type of operation,” said Enright.

The mine is housed in Plano, Texas inside a 150,000 square foot facility and is capable of a “100 megawatt live power load.” Further, the company is running custom ASIC chips increase board density and reduce mining costs significantly. In short, it will be one of the highest tech mining facilities in the world.

From the release:

The company has developed a unique use case with a fluorochemical coolant that delivers smart, safe and sustainable cooling for industrial technology operations. TMGcore will be one of the first companies to utilize this compound at the heart of an enterprise scale cryptocurrency mining apparatus. The company’s intelligent mining technology uses a Two-Phase Liquid Cooling Immersion technology to dramatically decrease cooling costs by up to 90%. The system also dynamically adapts its mining efforts toward the most profitable token at any given time, factoring in real-time market price, the difficulty of access and hash rate. TMGcore has also developed custom-made ASIC mining boards that result in a 20% increase in token output.

“Leveraging the magic of this coolant and groundbreaking mining circuitry, we saw a massive opportunity to capitalize on the nascent and highly lucrative mining industry in a physical, tangible and industrial fashion,” said Enright. “TMGcore seeks to deconstruct the mining monopoly in other countries with an American-made, U.S. driven approach that not only pushes the blockchain ecosystem forward but also creates job opportunities for Texas’ fast-growing technology community. We understand the importance of the research and development that creates not only innovations but the efficiencies that support the blockchain industry on a global scale.”

“Texas, more so than many other states in this country, has an abundant supply of energy available on their grid with available real estate to house such a project,” said Enright. “Cryptocurrency mining has not really been able to take advantage of Texas’ energy supply to date because the state is too hot. By utilizing Novec in this Two Phase Liquid Cooling Immersion technology, we have unlocked Texas’ potential to mine for the first time.”

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Texas Regulator Hit Two Bitcoin Investment Schemes with Cease-and-Desists

The Texas State Securities Board has uncovered more suspicious activity from cryptocurrency businesses targeting residents in the state. The agency has most recently issued a pair of emergency orders against two separate entities that according to the regulators were scamming investors, including a bitcoin mining operation and a bitcoin foreign exchange investment fund. Both startups … Continued

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US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms

A U.S. state has issued emergency cease and desist orders to two companies and related persons purportedly engaged in cryptocurrency investment schemes. The first company posted videos of three mining farms composed of online stock images, according to the order. Both companies made numerous materially misleading claims and violated U.S. securities laws.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Bitcoin Trading & Cloud Mining Limited

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms
Texas State Securities Board.

The Texas State Securities Board has issued “an emergency cease and desist order” to London-based Bitcoin Trading & Cloud Mining Limited, also known as Btcrush. Also included in the order are the company’s sole director and shareholder Jaylon Cross, founder and CEO Bruce Rodgerson, Chief Marketing Officer Robin Lozinski, and sales agent Thomas A. Johnson.

Btcrush is self-described on its website as “a cloud-based cryptocurrency mining company that mines bitcoin and altcoins and profits from selling altcoins for bitcoins.” The company promises an investment return of 4.1% daily interest regardless of the profitability of its mining operations, adding that its main principle is a “100% satisfaction guarantee for [its] customers.” The company claims:

A principal investment of $10,000.00 for a term of 365 days returns approximately $17.08 per hour, $410.00 per day and $149,650.00 per year.

In addition, the company has been recruiting investors as sales agents, promising them a commission of 15% of the principal deposited by the new investors that they recruit.

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms

Bogus Mining Farm Videos

According to the order, Btcrush had posted videos of its three mining farms on its website.

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment FirmsThe first mining farm the company claims to operate is the Maverik Farm, which it describes as the “most powerful farm” located “in the mountains.”

The second is the Hephaestus Farm, which Btcrush claims to be the “most reliable and secretive farm located in a bunker of the Second World War times.”

The third is the Rebelpower Farm, located “at the former power station.”

However, the Securities Commissioner wrote:

Although the Btcrush website represents these videos depict the Maverik Farm, the Hephaestus Farm and the Rebelpower Farm, they do not actually depict mining farms operated by respondent Btcrush. Instead, respondent Btcrush created these videos by manipulating stock footage available for sale on the internet.

Forex EA & Bitcoin Investment LLC

The second company to receive an emergency cease and desist order from the Texas State Securities Board on Tuesday is the New York-based Forex EA & Bitcoin Investment LLC, also known as My Forex EA. Also included in the order are James Butcher and Richard Dunn who market the company’s Forex and Bitcoin trading program targeting Texas residents, the Securities Commissioner detailed. They advertise:

An investment of $500.00 in the Forex and Bitcoin trading program will return $5,000.00 in twenty-one calendar days…[and] an investment of $1,000.00 in the Forex and Bitcoin trading program will return $10,000.00 in twenty-one calendar days.

Similarly, an investment of $20,000 will yield $20,000 and $5,000 will yield 50,000 in the same time period, the order describes. They also claim that the investments involve “no risk” and their returns “are 100% assured and that there is no possible way investors can lose money.”

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms

Violating Securities Laws

The Texas State Securities Board’s order explains that the investments both companies offer are securities and their sales are in violation of the Securities Act since neither the companies nor their agents have been registered with the state’s Securities Commissioner.

US State Issues Emergency Cease and Desist Orders to Two Crypto Investment FirmsBtcrush also asks investors to agree to a “private transaction rule” of the US Securities Act of 1933 and related acts when signing up. “This statement is materially misleading,” the order shows, adding that the public will likely be deceived into thinking that the company is offering regulated securities in the state.

Furthermore, Btcrush asks investors to agree at signup that they “are investing at their own risk” and that the company “reserves the right to amend…. fixed interest rates… without agreement with investors.” The order says that these statements are also materially misleading given the advertised guarantee of 4.1% return regardless of the company’s profitability.

In both cases, the Securities Commissioner concluded that:

Respondents [both companies] are engaging in fraud in connection with the offer for sale of securities…[and] are making offers containing statements that are meterially misleading or otherwise likely to deceive the public.

What do you think of Texas issuing cease and desist orders to these two investment schemes? Let us know in the comments section below.


Images courtesy of Shutterstock and the State of Texas.


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Bitcoin in Brief Thursday: ICO Scares Investors with Ghost Prank

Bitcoin in Brief Thursday: Another ICO Ghosts with $50 Million - Sends Thanx from Beer Beach

Today we’ve simply given-in to no nutritional value, guilty pleasure, lowest common denominator: bitcoin-related crime news. Start your day with laughs and head scratching, as we examine the purported Savedroid ICO exit scam, an international bitcoin heist escape, the fury of a scorned woman, a bear spray robbery, and some whole food violence.  

Also read: Bitcoin in Brief Wednesday: Pornhub? We’ve Never Heard of Pornhub

Savedroid Appeared to Ghost With Investors’ Money

This can’t be real, right? This must be a publicity gimmick. Well, in any event, German online news source Wirtschafts Woche documents how Savedroid has apparently taken the money and run. The company website was replaced with a meme picture, “Aannnd it’s gone.” Founder and CEO Yassin Hankir tweeted a picture of himself on a beach, long gone. All this after having raised $50 million in an ICO.

Bitcoin in Brief Thursday: Another ICO Ghosts with $50 Million - Sends Thanx from Beer Beach
Savedroid webpage

Promises of artificial intelligence, curated portfolios, and a native credit card proved too much for investors, and they poured in money. Stranger than fiction.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million

Reads Like a Movie Script

A suspect involved in an Icelandic heist involving a dozen perpetrators, 600 missing bitcoin mining rigs, was able to evade authorities after they’d managed to arrest him. “Sindri Thor Stefansson” the BBC reported, “escaped the low-security prison through a window and fled to Sweden on a passenger plane that was also carrying Iceland’s prime minister, local media report. The ticket had another man’s name and he was identified through CCTV video. The stolen computers, which are still missing, are worth $2m (£1.45m).” It appears Mrs. Stefansson was also arrested, but he didn’t have time to circle back evidently.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million
Sindri Thor Stefansson

Hell Hath No Fury

Speaking of angry women, the broader ecosystem has been accused as being too male. Well, here’s Tina Jones breaking through the digital glass ceiling. According to WGN, Ms. Jones was  “charged after allegedly paying thousands of dollars via bitcoin to a company on the dark web to murder the wife of a man she had an affair with, according to officials. Tina Jones, 31, appeared at bond court Wednesday morning where a judge set bond at $250,000. She was charged with one felony count of solicitation of murder-for-hire.”

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million
Tina Jones

Bearly Escaped with Bitcoin ATM

The Irving Patch, a Texas local online news source, are attempting to help police find two men. Police claim they “entered a store […]  and sprayed a clerk with bear spray before making off with cash from a Bitcoin machine …. They can be seen in security footage spraying the store clerk with bear spray, a powerful form of pepper spray, before heading to the back of the store where the Bitcoin machine was located ….The clerk was taken to a hospital for treatment after being sprayed but was later released.”

Well, He Warned Him

Government crackdown on legitimate cryptocurrency exchanges usually receive very positive media coverage. What both government and mainstream media often miss is how less online exchanges necessarily means more face-to-face encounters, which can be dangerous for reasons bitcoin traders are well familiar. Case in point: a Miami man wished to turn $30,000 cash into more than that in bitcoin. He met supposed crypto dealers at a public place, a local Whole Foods parking lot. The fellow with the cash brought a gun just in case something went wrong. Turned out to be a pretty good idea. He was jumped for the money, and as he was attacked, yelled to his attacker, “Back off, I have a weapon,” the Miami Herald details. The attacker didn’t listen, and was shot. He was later arrested after being taken to a local hospital.

Bitcoin in Brief Thursday: Savedroid Scams Investors for $50 Million

Bitcoiners Wanted at Citi

A recent now hiring Linkedin post detailed how Citi is looking for a  “Senior Vice President, Senior AML Compliance Officer —Emerging Risk,” in Tampa, Florida. “Knowledge of cryptocurrency and bitcoin monitoring” and “Certified Bitcoin Professional Certification a plus,” are among the job qualifications and requirements.

More Spring Cleaning

Clearing off some smaller stories, Riot Blockchain has been subpoenaed.  The Securities and Exchange Commission of the Philippines issued a rather blunt warning about what it terms bitcoin “schemes” to defraud investors. It lists more than a dozen companies by name, and proceeds to go through steps to identify future scams. Josh Ellithorpe tweeted how he “Just released my first open source project at Coinbase. If you need Cashaddr support for your Ruby app then you should check it out!” here.  

Do you think Savedroid really scammed its investors? Let us know in the comments section below.


Images courtesy of Shutterstock. Special thanks to Kai Sedgwick and Avi Mizrahi for sourcing.


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The post Bitcoin in Brief Thursday: ICO Scares Investors with Ghost Prank appeared first on Bitcoin News.

Pipe Dream: Analysts Mull Natural Gas-Powered Bitcoin Mining Operation

A group of Wall Street analysts has a unique idea to allow shale producers in Texa’s oil-rich Permian Basin to profit from the massive amount of natural gas that is currently being wasted as a result of shale extraction: harness it to power a Bitcoin mining operation. Writing in a recent note to clients, a … Continued

The post Pipe Dream: Analysts Mull Natural Gas-Powered Bitcoin Mining Operation appeared first on CCN

Bitgrail’s $170M Hack Continues to Provide Drama

After $170 Million Bitgrail Exchange Hack, Lawsuits and Lawyers Get Involved

Fallout from the $170 million hack earlier this year of the Bitgrail exchange continues to mount, and this time lawyers are involved. A class action lawsuit was announced against Bitgrail’s Nano core development team, seeking damages and a “rescue fork” to recover funds. In response, a group calling itself Nano Foundation fired back, insisting blame for the hack rests not with developers but with Bitgrail itself, and they’re raising funds on behalf of victims to bring their own suit.

Also read: First Soros, Now Rockefellers Move into Cryptocurrency

Bitgrail Hack Fallout Means Lawsuits

Perhaps emblematic of where the cryptocurrency ecosystem is at present, the Bitgrail exchange hack from earlier this year continues to provide drama. Back during 2017’s massive price run up, at the start of December (Nano was then known as Railblocks, under the ticker, XRB) “1 XRB could be bought for $0.20. One month later, 1 XRB had soared to $35 after gaining 17,500%, making it 2017’s biggest gainer and putting the likes of bitcoin, litecoin and ripple in the shade,” News.Bitcoin.com reported.

Rather suddenly the Italian micro exchange was swimming in hundreds of millions in value. In late January of this year, Bitgrail abruptly suspended trading. Within weeks, the exchange announced an indefinite stoppage due to a 17 million XRB/Nano “shortfall” from a wallet it managed. It assured users authorities were alerted.

After $170 Million Bitgrail Exchange Hack, Lawsuits and Lawyers Get Involved

Rumors flew: The exchange’s charismatic owner had made off with the loot. Indeed, Nano core devs even alluded to at the very least mismanagement. Bitgrail publically implored its devs to change key aspects of the code in order to return coins to users. Back and forth the two sides have gone, but one thing is clear: 12.7% of XRB remains missing.

By March, Bitgrail announced a 20% return of customer Nano with the other 80% being made up in a new coin, BGS, on one condition: users, upon reanimating their accounts, would be required to sign away future legal claims against the exchange. It is unclear how many customers were eager to take up the offer.

Class Action, Legal Fund

This week, Bitgrail customer Alex Brola’s class action lawsuit against four Nano core developers based in Texas was published online. Mr. Brola’s initial $50,000 investment grew close to 17,000 Nano, according to court documents. His suit begins by attacking the entire project, defining Nano as a security thus placing those associated with its sale as violating US securities law. It then goes on to allege developers misled Bitgrail users in nearly every regard, from the supposed integrity of the system itself against hacks, to Nano devs actively conspiring to ultimately achieve ill gotten gains.

Mr. Brola and the respective class of victims are seeking return of their coins and fiat investments, along with a mandated “rescue fork,” presumably to recover said coins, and restitution in the form of all damages incurred by Mr. Brola and the class as a result. They’d also like an audit, a full accounting, and a trust set up for coin distribution, along with attorney’s fees paid in full.

After $170 Million Bitgrail Exchange Hack, Lawsuits and Lawyers Get Involved

In response, a group referring to itself as the Nano Foundation claimed it was they who really represented hack victims, and that a legal fund was being established to bring action against Bitgrail exchange. They detail having formed an alliance with “Espen Enger, a representative of nearly 600 Bitgrail victims at the time — now over 1,400, announcing our plans to help establish a legal fund. We had a series of productive initial discussions with Mr. Enger. Over time we became confident that Mr. Enger was the best prepared person to manage a legal fund and a large group of Bitgrail victims in their pursuit of justice in Italy.”

Their stated goal is to help smaller investors. They claim to have doubled the victims’ legal fund from $300,000 to $600,000 as of 9 April 2018, while “will be matching the contributions of the victims to the legal fund established by Mr. Enger — including both past and future donations, for up to $1 million — with a goal of establishing a total legal fund valued at $2 million.” They’ve set up a Discord account as a way to keep tabs on their progress going forward.

 Which side do you believe? Let us know in the comments section below.


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