Don’t be surprised, Twitter begins cryptocurrency ad ban

The rumors were true after all: Twitter has started banning cryptocurrency-related advertisements on its platform, too.

On Tuesday, the app became the latest social media network to clamp down on advertisements that promote potential fraud or cause large investor losses in the long run, Reuters reported. The new policy will cover ads on initial coin offerings (ICOs) and token sales, as well as promotions made by cryptocurrency exchanges and wallet providers who are not listed on major stock markets.

In Japan, advertisements made by cryptocurrency exchanges that are not recognized by the Financial Services Agency (FSA) will be banned on Twitter, the San Francisco company told Reuters.

A Twitter spokesperson confirmed to CNBC that “the advertisement of initial coin offerings (ICOs) and token sales will be prohibited globally” under the new policy.

Reports that Twitter is banning cryptocurrency-related advertisements surfaced last week, following in the footsteps of social media giant Facebook and tech giant Google. Early this month, Twitter said it has started implementing measures to prevent cryptocurrency accounts from “engaging with others in a deceptive manner.”

Facebook announced several weeks ago that it would ban all cryptocurrency advertising in order to restrict the number of misleading promotions, especially ICO-related advertisements. Google also confirmed that it would start banning all advertising for cryptocurrencies on its sites, including YouTube, starting June.

Also joining the crackdown on ICO promotions is Snapchat, which announced last week that it has forbidden all ICO-related ads      on the social media app. Snapchat’s parent company, Snap Inc., has been restricting advertisements that promote cryptocurrency token sales since February, although the ban doesn’t apply to other types of cryptocurrency ads.

In an interview with Reuters, Zennon Kapron, director of financial consultancy Kapronasia, said it’s now “an impossible task for anyone… to keep on top of which ICOs and cryptocurrencies are genuine versus frauds.”

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/dont-surprised-twitter-begins-cryptocurrency-ad-ban/

Bitcoin’s scripting language is Turing complete, paper shows

A new research paper authored by nChain Chief Scientist Dr. Craig Wright has demonstrated that Bitcoin’s dual stack push down automata (2-PDA) scripting language is capable of computing values computable in a system compatible with that of Godel’s logic system.

The paper, titled “Beyond Godel,” described a process in which the basic predicate systems used in Kurt Gödel’s logical constructions can be mapped directly into Bitcoin script operations, alongside primitive recursive functions. This, in turn, can be extended to explore the 2-PDA construction within Bitcoin.

A 2-PDA is a “two-way deterministic finite automation” which has already been proven to be as computationally effective as a 3-PDA, a fact that Wright has previously stated in his talks to highlight that 2-PDAs are Turing complete. 2-PDA, according to Wright, allows anyone to do everything that a Turing machine can achieve. It’s a known fact that 2-PDA is functionally equivalent to a Turing machine and can simulate a single or multi-tape Turing machine just as it can simulate a 2-PDA.

Turing completeness is used to describe a computer or software that can solve any problem that a Turing machine. To put it simply, a system that can execute any algorithm—like Bitcoin’s scripting language—is Turing complete.

In his new paper, the nChain chief scientist further explained that integrating basic predicate systems and primitive recursive functions across 2-PDA “allows us to create a system that is equivalent to a Turing machine,” which can handle all grammatical constructs that may be processed within a Turing machine.

“The richness and power of Bitcoin scripting language has been overlooked due to the complexity of the system,” Wright wrote. “In this paper we have demonstrated the true power of the system and how a complete implementation can create a script of a determined length and known maximum processing difficulty.”

Read Dr. Wright’s new paper, “Beyond Gödel,” here.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Coincheck, Bittrex weed out anonymous, low-liquidity altcoins

Spring (cleaning) came early for cryptocurrency exchanges Coincheck and Bittrex.

Tokyo-based exchange Coincheck will reportedly stop handling three anonymity-focused cryptocurrencies—Monero, Dash, and Zcash—as it “now recognizes the high risk” posed by these virtual currencies when used in money laundering activities, sources told the Japan Times.

Coincheck’s application for a cryptocurrency exchange license has been pending with the Financial Services Agency (FSA) in September, partly because most of its customers are anonymous, according to the report.

The news comes on the heels of a cyber-attack in January, which saw hackers getting ahold of $534 million worth of NEXM tokens from Coincheck’s hot wallet. Executives at Coincheck hinted that the theft was caused by a possible malware-related incident, but police investigators discovered “multiple suspicious transmissions” were made from Coincheck’s intracompany network to Europe and U.S.-based servers around Jan. 23, three days before the theft occurred.

Cybersecurity experts believe that half of the missing NEM tokens have already been converted into other types of cryptocurrency for money laundering purpose, making it even harder to track.

All kinds of transactions on the Coincheck platform were immediately halted after the hack, but the company has since resumed activities, albeit of certain currencies—on March 12, following its promise to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the infamous Mt. Gox hack.

Meanwhile, Coincheck is eyeing the possibility of buying Monero, Dash and Zcash from its customers at a fixed price. According to sources, the embattled company has begun accepting transfers from verified accounts.

Bittrex de-lists 82 altcoins

Bittrex, once considered to be a safe haven for many altcoins, is bidding 82 of them goodbye.

Effective March 30, 82 token wallets will be removed from the cryptocurrency exchange’s system, according to an announcement on Bittrex website. These include altcoins who have low liquidity or do not have “a properly functioning blockchain and wallet.”

Of the 82 tokens, 26 currencies suffered from blockchain issues, such as not having a working blockchain, according to the exchange. Bittrex urged its customers to withdraw their coins before March 30, because “once these wallets are removed, we will no longer be able to recover these coins.”

The list of soon-to-be-removed altcoins can be found here.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Bitcoin Cash ‘dream team’ to hash out road to bComm future at CoinGeek Conference

The biggest minds in Bitcoin  are all set to take on the challenge of revolutionizing transactions not just for today, but for the future.

At the inaugural CoinGeek.com Conference, which will take place at the Four Seasons Hotel in Hong Kong on May 18, the so-called Bitcoin Cash “dream team”—Bitcoin.com CEO Roger Ver, nChain Chief Scientist Dr. Craig Wright, and Bitmain CEO Jihan Wu—will be sitting down at the Industry Leaders Panel to discuss “The Road to bComm’s Future.”

Currently, the eCommerce sector remains heavily reliant on traditional card payment processors like Mastercard and VISA. But what merchants really need is cryptocurrency, preferably Bitcoin Cash (BCH), which will allow them to pay far lower processing fees than on today’s payment card systems, and with instant payment confirmations on the blockchain, chargebacks will create significantly less financial exposure.

To explain more the keys to moving eCommerce to Bitcoin Commerce (bCommerce), the CoinGeek.com conference will be focusing specifically on merchant adoption of the best micropayment solution with the lowest fees not just for the vendors, but also for the buyers.

Jimmy Nguyen, CEO of the nChain Group, will open the conference with a presentation of “A bComm World,” discussing how Bitcoin Cash will power the future of bCommerce. Bitcoin ABC leader developer Amaury Sechet will then explain Bitcoin BCH’s technical vision for a global payment system, while Lokad founder Joannes Vermorel will talk about overcoming eCommerce hurdles with Bitcoin Cash.

Before the afternoon’s Industry Leaders Panel, Ver will give the audience a glimpse of Bitcoin BCH adoption around the world, while Wright will discuss how tokenization and atomic swaps will transform digital commerce. Another panel will discuss new products, opportunities, and challenges for using Bitcoin—this time featuring HandCash co-founder Alex Agut, CoinText.io CTO Vin Armani, nCrypt COO Angela Holowaychuck, Centbee CEO Lorien Gamaroff, VGM Holdings Manager of Global Poker Jonas Odman, and Expedia Global Payments legal director Michael Wood.

Also speaking at the event are Yours.org co-founder and CEO Ryan X. Charles, who will talk about how to bring Bitcoin Cash to more mainstream users; SBI Crypto Chief Strategy Officer Jerry Chan, who will explain the “new crypto world” with a roadmap from FinTech 1.5 to FinTech 2.0; and Quione CEO Mike Kayamori, who will talk about the state or regulation and commercial adoption of Bitcoin in Japan.

The event, which is also hosting an after-party courtesy of CoinGeek.com owner Calvin Ayre, is shaping up to be a landmark in merchant adoption and education in the benefits of Bitcoin BCH.  With its bigger blocks, faster speed, and lower transaction fees, Bitcoin BCH represents the truer vision of Bitcoin as a peer-to-peer electronic cash system.

Registration for the conference is now open with a 50% discount for those paying in BCH, but credit card payments are also welcome.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Dr. Craig Wright: We’re bringing Bitcoin BCH back to fungible cash

The next upgrades in the pipeline for Bitcoin Cash (BCH) will finally pave the way for people to start treating the cryptocurrency as what it is supposed to be—cash. And a fungible one at that.

That’s the declaration made by Dr. Craig Wright, chief scientist at blockchain research and development firm nChain Group, during a recent talk as part of the “We are Fascinating Project” series in London.

“We’re collaborating with a lot of groups at the moment. We’ve just announced the Electrum Cash project which is going to sort of increase private transactions fungibility and much more within Bitcoin (BCH), so what that will actually allow is people to start treating it as cash,” Wright said. “We’re going to make it back to fungible cash.”

Currently, Bitcoin Cash development groups like Bitcoin ABC are gearing up for a series of protocol upgrades happening every six months starting May 2018, which will see the developers re-enabling a whole host of opcodes in the scripting language, among other things. Restoring the opcodes is important for the network because they will enable Bitcoin Cash to become more than just a currency.

“We’re going to re-enable all those things people used to get excited about Bitcoin for: tokenization, the ability to make either divisible or non-divisible shares at your choice, bonds, futures, derivatives, things that actually make smart contracts that tied to [investment] vehicles, things that allow you to trade over time,” Wright said.

Essentially, the opcodes will allow Bitcoin Cash to have more complicated functionality so that it can also power smart contracts along with other functionalities that will drive up the cryptocurrency’s usage.

“We’re going to re-enable a whole lot of opcodes. We’ve got people in my team at the moment working on that. They’ve already started uploading on Github and other such things,” the nChain chief scientist said.

Not the be-all and end-all of Bitcoin Cash

nChain may be at the forefront of the push for a Bitcoin Cash world, but CEO Jimmy Nguyen is quick to point out that the group is all about collaborating with groups, people, and companies around the world to ensure that their goal of making a Bitcoin Cash-enabled global ecosystem will be a success.

In fact, nChain has already formed partnerships with several organizations and invested in ventures offering products and applications that made Bitcoin Cash more usable, easily as electronic cash on a global basis. The group’s first two investments, made via its investment arm nChain Reaction, were social network Yours.org and South African wallet provider Centbee.

“We at nChain group do not intend, have no desire to be the be all and end all of Bitcoin Cash,” Nguyen said.”We recognize that for it to be successful, we’ll take the collaboration and efforts of groups, companies, people all around the world. And what we’re doing is using our resources and innovation to try and spur and help other people to create and develop the things that’ll be necessary. We’ll be creating some of the things ourselves but our mission really is to enable a spark that goes on across the world so that there’s a thriving community of groups that are contributing to Bitcoin Cash’s success.”

Watch Dr. Craig Wright and Jimmy Nguyen talk about “A Bitcoin Cash World” here:

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Microsoft accepts Bitcoin Cash payments at 0% network costs

A few choice words from computer mogul Bill Gates isn’t going to stop the tech giant he founded from supporting cryptocurrencies like Bitcoin Cash (BCH).

This week, Microsoft quietly began accepting BCH payments alongside legacy Bitcoin (BTC), giving its users another option for topping up their Microsoft.com account balances. The key difference between the two options is that paying with BTC comes with 1.2% network cost, while Bitcoin Cash offers instant confirmation with 0% network fee.

A note in the Microsoft “Redeem Bitcoin” page warns users that there will be “no refunds added to your Microsoft account”:

Microsoft supporting Bitcoin Cash payments is a logical choice for the multinational technology company given that its Microsoft Billing Services has teamed up with payments processor BitPay to handle cryptocurrency-related transactions. Microsoft is among the over 100,000 merchants, along with Newegg, Namecheap and Vultr, that have started accepting payments made in Bitcoin Cash shortly after the payments processor included the popular cryptocurrency in its partner merchants’ accounts.

Currently, BCH payments are still converted to U.S. dollars or BTC before they’re delivered, although BitPay is looking to integrate an option for merchants to receive direct BCH payments in the next couple of weeks.

The tech giant has had a tumultuous relationship with BTC since it started supporting the cryptocurrency back in 2014. In 2016, a note in the Microsoft Store FAQ stated that users “can no longer redeem Bitcoin” into their Microsoft accounts, which the company immediately retracted citing “inaccurate information.” Early this year, reports surfaced that Microsoft again barred—albeit temporarily—its customers from adding BTC funds to their accounts due to the cryptocurrency’s “unstable state.”

BTC’s high transaction fees and network congestion has prompted BitPay to start processing payments on other blockchains like Bitcoin Cash. In an interview with CoinGeek, BitPay CEO Stephen Pair said their goal is to simplify the blockchain payments process for merchants, while also making sure that the retailers are paid fairly.

“We’re continuing to learn from customer feedback and refine the BitPay platform to be even simpler and more seamless for businesses that need blockchain payments. We expect that offering the same service for the Bitcoin Cash blockchain will make it easier for consumers and businesses to use BCH for important transactions,” Pair said.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Coincheck starts refunding clients affected by $530M NEM heist

Tokyo-based cryptocurrency exchange Coincheck has begun reimbursing customers who have lost their funds in the January hack that resulted in the theft of some $530 million worth of NEM coins (XEM).

On Monday, the Japanese exchange announced on its website that the “reparations for illicitly transferred NEM” tokens have commenced. The refunds will be made in Japanese yen (JPY) at a fixed rate of JPY88.549, or about $0.83 per NEM token stolen at the time of the theft on January 26. This is the same amount indicated in Coincheck’s initial compensation plan and is twice the current trading value of the XEM token, which is trading at under $0.40 at the time of writing.

“Reparations will be made directly to users’ accounts’ balances on Coincheck, not to bank accounts registered to accounts,” according to the exchange. “We will be completing withdrawal requests in the order that they come in, so it may take a short period of time for your transfers to be completed after withdrawals resume.”

Withdrawals in Japanese yen from Coincheck platforms will incur a fixed fee, and the exchange urge its customers to complete their identity verifications. Completed identity verification is required for JPY withdrawals, although clients are eligible for XEM refunds whether they have completed their identity verifications or not.

The announcement of a refund comes almost one month after the beleaguered cryptocurrency exchange resumed yen withdrawals on its platform. At the time, Coincheck received withdrawal requests amounting to JPY40.1 billion ($373 million) from customers seeking to get their money out of the exchange.

Coincheck promised to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the infamous Mt. Gox hack. The January heist saw hackers getting ahold of 523 million XEM from Coincheck’s hot wallet.

The government’s Financial Services Agency (FSA) has been keeping close tabs on the exchange. Last week, FSA authorities slapped Coincheck with a second business improvement order after it was determined that the company’s risk management and consumer protection measures were not up to the required standards.

Executives at Coincheck hinted that the theft was caused by a possible malware-related incident, but police investigators discovered “multiple suspicious transmissions” were made from Coincheck’s intracompany network to Europe and U.S.-based servers around Jan. 23, three days before the theft occurred. The transmissions were allegedly phishing emails targeting employees at Coincheck.

Several customers have already filed a lawsuit seeking the return of their XEM and 12 other kinds of cryptocurrencies. Other victims have also formed groups to request their cryptocurrency holdings back.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

South Korea declares cryptocurrency ban for government officials

Everyone in South Korea can hold and trade cryptocurrencies. Everyone except government officials, that is.

This week, reports surfaced that the South Korean government has banned its officials from having virtual currency holdings as well as participating in cryptocurrency-related transactions. According to Korean-language Maeil Business, “This is the first time the government has formulated a virtual currency ban for all public officials.”

A government document, titled “Virtual currency holdings and transaction related information for civil servants,” detailed a Ministry of Personnel Management request for public servants to “refrain from reserving and trading virtual money” at all times.

Cryptocurrency is not illegal in South Korea, but government officials getting involved in it violates “the prohibition of forbearance obligations under the civil servants law,” according to the document. Government officials who will get caught will be subjected to disciplinary actions, especially if the activities were done during working hours.

The ban applies to all government ministries, “even if there is no job relevance [government employees] could be subject to discipline.” The Financial Services Commission (FSC), the Fair Trade Commission, and Hong Nam-ki, head of the Office for Government Policy Coordination Hong Nam-ki, had already warned their staff to stop investing in cryptocurrencies even before the ban was announced.

South Korea may be the third largest market for cryptocurrencies, trailing behind the United States and Japan, but its government has yet to make a clear stance on the sector. The country has been in an upheaval over the government’s mixed messages regarding the legality of cryptocurrencies and transactions that involve digital coins. In January, the local crypto community was rattled by news that Seoul is banning cryptocurrencies. That turned out to be a false alarm, prompting South Koreans to call for the termination of Justice Minister Park Sang-ki, who announced the supposed ban.

Recently, the Financial Supervisory Service (FSS) announced that the government will support what it deems are “normal” cryptocurrency transactions.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

From tax breaks to unblocked sites, cryptocurrency ekes out multiple wins in Russia

It has been a fairly busy week for the cryptocurrency sector in Russia.

For years, the Russian government has been adamantly against the use and exchange of virtual currency in the country. That could all change starting this summer, following reports that the government officials have been given marching orders to legalize the domestic cryptocurrency market in July.

According to a report from Russian-language Parliament Newspaper, President Vladimir Putin has ordered officials to adopt cryptocurrency-related legislations by July 1, 2018.

So far, two draft laws have already been prepared by the Central Bank of Russia and the Ministry of Finance. The proposals seek to “establish the legal basis for the primary release of tokens (ICO) in Russia and regulate the turnover of the crypto currency, the implementation of the mining and ICO,” according to the report.

Although the central bank and the finance ministry have already ironed out the main regulatory positions, the two parties were reportedly remained at odds on the subject of “exchange operations.” In the central bank’s draft law, only commercial organizations and individual entrepreneurs can initiate token crowdsales. The finance ministry’s proposal, on the other hand, establishes that owners of digital financial assets like cryptocurrency can only transact “through the operator of the exchange of digital financial assets.”

“The Central Bank is against the legalization of this type of digital currency, since in this case citizens can start actively investing in crypto-tools, not taking into account possible risks,” said Anatoly Aksakov, chairman of the State Duma Committee for the Financial Market.

The news of cryptocurrency legalization comes on the heels of reports that government officials were also discussing the possibility of creating tax exemptions on profits—both corporate and private—from cryptocurrency-related transactions during a meeting at the Russian Ministry of Economic Development.

Russian news outlet Vedemostireported that participants, including representatives from the ministries of communications and justice, the Central Bank of Russia, and Sberbank, also called for raising the limit for individual investments in initial coin offerings (ICOs) from 50,000 rubles ($880) to 500,000 rubles ($8,800).

Crypto websites ordered unblocked

Meanwhile, a municipal court canceled a court decision that blocked at least 40 cryptocurrency-related websites in the Russian Federation.

In 2017, the Oktyabrsky District Court of St. Petersburg ruled to block websites like Bestchange.ru and 24paybank.com, which prosecutors said were “spreading information” about cryptocurrencyeven though it “is not backed by any real asset and does not provide information about its owners.”

This prompted Moscow-based Digital Rights Center to file an appeal before the Municipal Court of St. Petersburg. And on Tuesday, the municipal court overturned the initial decision.

“The case is sent for a new consideration by another composition of the court,” according to state news outlets.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

CFTC staff gets green light to trade cryptocurrency

After receiving “numerous inquiries,” the U.S. Commodity Futures Trading Commission (CFTC) has given its employees the go signal to invest in cryptocurrencies.

In a Feb. 5 memo, CFTC general counsel Daniel Davis told agency staff that they can trade digital tokens like they would corn, oil, precious metals, and other commodities, according to a Bloomberg report. The decision, Davis said, was in response to the inquiries the regulator received from CFTC employees.

The guidelines, however, warned CFTC employees against trading cryptocurrencies on margin as well as using inside information they picked up in the work at the agency, especially if the nonpublic information has the potential to impact the trade. Likewise, investing in the Bitcoin futures that CFTC regulates is also forbidden.

“In this environment, the situation is ripe for the public to question the personal ethics of employees engaging in cryptocurrency transactions,” Davis wrote, urging CFTC staff members to avoid actions that could result in them “violating the law or government and commission ethical standards.”

The commodities regulator first defined cryptocurrency as a commodity in 2014, effectively placing digital coins under the purview of the agency. At the time, CFTC’s supervision are mostly enforcement actions against alleged fraud schemes—the agency doesn’t have authority to supervise cryptocurrency exchanges, which are regulated under state money transmitter laws.

CFTC, however, has direct control of the U.S. cryptocurrency futures markets. In December, CFTC Chairman J. Christopher Giancarlo gave CME and CBOE the go signal to list Bitcoin futures contracts on their trading platforms.

Giancarlo, who is known for his “relaxed approach to cryptocurrency regulation, was reportedly among those who inquired about a CFTC ethics guidelines to ensure that there won’t be a  conflict of interest.

“The chairman has made it clear that staff members who own Bitcoin should not participate in matters related to Bitcoin, as it presents a conflict of interest,” Erica Richardson, spokeswoman for Giancarlo, told the news outlet.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Probe links ‘overseas hacker group’ to Coincheck $530M crypto heist

Investigators in Japan are looking into the possibility that an overseas hacker group has gotten its hands on Coincheck’s encryption keys several days before the Japanese cryptocurrency exchange lost 523 million NEM tokens (XEM) from its hot wallet.

On Tuesday, The Yomiuri Shimbun reported that Metropolitan Police Department investigators noted “multiple suspicious transmissions” were made from Coincheck’s intracompany network to Europe and U.S.-based servers around Jan. 23, three days before the theft occurred.

Sensitive data, such as encryption keys, were managed in Coincheck’s intracompany network, according to sources with knowledge of the investigation. The intracompany network is normally not connected with external servers, which led authorities to believe that it may have been infected with viruses and resulted in it being illegally manipulated externally.

On Jan. 26, roughly three days after the recorded suspicious transmissions, Coincheck was stung by the theft of JPY58 billion worth of digital money.

A 100-man cybercrime team from the police department has already set up an investigation headquarters on Monday, a month after the virtual currency theft. The investigation, however, will prove to be quite a challenge, given that hacker groups are known for hiding behind multiple servers.

Currently, an estimated JPY15 billion worth of the stolen NEM have reportedly been exchange for other virtual currencies in dark websites. The MPD and the NEM Foundation have pledged to beef up the monitoring of the movements of NEM, particularly in the dark web.

Meanwhile, seven Coincheck customers have filed a lawsuit seeking the return of their NEM and 12 other kinds of cryptocurrencies in response to the exchange’s promise to repay them in yen, rather than in cryptocurrencies. Other victims have also formed groups to request their cryptocurrency holdings back.

The exchange resumed yen withdrawals last Feb. 13, but there has been no word yet on when the crypto withdrawals would restart. The government’s Financial Services Agency (FSA) has been keeping close tabs on the exchange. Aside from visiting Coincheck’s Tokyo office, the agency also required the company to submit a report not just on the heist, but also on the safety of its systems as well as Coincheck’s plan of action to prevent a repeat of the incident.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Steve Wozniak loses $75K worth of BTC in Bitcoin scam

Bitcoin scam, it happens to the best of us—even legends like Steve Wozniak.

The American inventor and Apple co-founder recounted at the recently held Economic Times of India’s Global Business Summit how he had been defrauded out of a sizable amount of legacy Bitcoin (BTC). If you recall, Wozniak revealed last year that he bought BTC—most of which he liquidated several months later. And that’s when, apparently, the man had lost some of his coins.

“I had seven bitcoins stolen from me through fraud,” Wozniak said, according to the news outlet. “Somebody bought them from me online through a credit card and they cancelled the credit card payment. It was that easy. And it was from a stolen credit card number so you can never get it back.”

Wozniak said he bought the cryptocurrencies when they were still going for $700 each, which means that in today’s trading price of $10,777, the stolen digital coins were already worth roughly $75,441.

At the time, Wozniak bought the cryptocurrencies as part of an experiment to see if BTC could take the place of fiat currencies, but decided to sell them later on because he “didn’t want to watch the price everyday.”

“I had them so that I could someday travel and not use credit cards, wallets or cash. I could do it all on Bitcoin. I studied which hotels and facilities accepted Bitcoin… it’s still very difficult to do so. I also tried to buy things online and trade Bitcoin online,” he said.

Despite the incident, Wozniak remains to be a proponent of cryptocurrencies. Wozniak previously described cryptocurrencies as better than gold, and unlike the “kind of phony” U.S. dollar, “there is a certain finite amount of bitcoin that can ever exist.”

“Bitcoins to me was a currency that was not manipulated by the governments. It is mathematical, it is pure, it can’t be altered,” he said.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.