Apple Pay Competitor CurrentC Launches Pilot Program, Gets Hacked - From The CoinFront

CurrentC, an alternative payment method to Apple Pay, has already been hacked and some users’ email addresses obtained.

The platform, launched by the company MCX, is currently being used only as a pilot program, and is expected to see a full launch some time in 2015. This event, however, will likely cause significant delays in their launch.

The company released the following statement to its users via email after the event:

Thank you for your interest in CurrentC. You are receiving this message because you are either a participant in our pilot program or requested information about CurrentC. Within the last 36 hours, we learned that unauthorized third parties obtained the e-mail addresses of some of you. Based on investigations conducted by MCX security personnel, only these e-mail addresses were involved, and no other information.

In an abundance of caution, we wanted to make you aware of this incident and urge you not to open links or attachments from unknown third parties. Also know that neither CurrentC nor Merchant Customer Exchange (MCX) will ever send you emails asking for your financial account, social security number or other personally identifiable information. So if you are ever asked for this information in an email, you can be confident it is not from us and you should not respond.

MCX is continuing to investigate this situation and will provide updates as necessary. We take the security of your information extremely seriously, apologize for any inconvenience and thank you for your support of CurrentC.

The Importance Of Security

This event underscores the importance of data sensitivity, and the value of a decentralized, pseudo-anonymous system.

After all, such an event is impossible with Bitcoin, since Bitcoin doesn’t collect any personal information in order to use it. But when one’s data sits in a centralized location, it becomes vulnerable to security risk.

Will MCX’s CurrentC survive such a negative event so early in their life? Let us know in the comments below.

Apple Pay Competitor CurrentC Launches Pilot Program, Gets Hacked

Bitcoin Foundation Executive Director Jon Matonis Resigns - From The CoinFront

Jon Matonis, executive director of the Bitcoin Foundation, has resigned.

Having been associated with the Bitcoin Foundation since its inception in late 2012, Matonis became executive director in mid 2013.

Matonis announced his resignation via Twitter yesterday evening:

The time has come for me to resign as Executive Director of the Bitcoin Foundation. Thank you for all of your passionate support! More soon.

— Jon Matonis (@jonmatonis) October 30, 2014

His background includes positions at Visa, VeriSign, and Hushmail, among others. His resignation as executive director is effective as of today, and he will also resign his board membership at the end of this year.

In the interim, Patrick Murck, the Bitcoin Foundation’s general counsel has been appointed as executive director. Murck is also a founding member of the Bitcoin Foundation.

The announcement for Murck’s replacement as general counsel has not yet been made.

“Two years is a lifetime in Bitcoin and we’ve come a long way from where we began,” Murck said in a statement on the Bitcoin Foundation’s website. “And yet, there is still so much ahead of us. I thank Jon for his service and am honored to receive this appointment.”

Bitcoin Foundation Executive Director Jon Matonis Resigns

Shopify Partners With GoCoin To Integrate Bitcoin - From The CoinFront

One of the largest ecommerce solutions providers online, Shopify, has entered into a new partnership with GoCoin to allow its retailers the option to accept cryptocurrency.

The new partnership allows users to accept not only Bitcoin, which Coinbase and BitPay offer, but also Litecoin and Dogecoin.

“We’re always looking for new technologies that will help our merchants run their businesses and increase sales,” said Louis Kearns, Product Director at Shopify in a press release. “The partnership with GoCoin provides anyone on our platform with the option to accept multiple cryptocurrencies.”

“Thousands of cryptocurrencies have entered the market since Bitcoin’s inception, and new altcoins are launched every day,” adds Steve Beauregard, co-founder and CEO of GoCoin. “GoCoin helps online merchants avoid shopping cart abandonment by quickly and easily offering the latest digital currencies as payment options.”

Ecommerce And Cryptocurrency

Shopify is the latest, but by no means the only, ecommerce solution to embrace cryptocurrency.

German ecommerce solution provider PlentyMarkets and Swedish payment processor Klarna have both embraced Bitcoin, and eBay continuously flirts with it, though they haven’t necessarily taken the plunge yet.

Oh yeah, PayPal accepts Bitcoin too, in a deal involving GoCoin.

As it becomes easier and easier for ecommerce sites to integrate Bitcoin, and Bitcoin becomes more popular, increased merchant adoption is sure to follow.

Shopify Partners With GoCoin To Integrate Bitcoin

Andreas Antonopoulos: "Centralization Is The Problem, Decentralization Is The Answer" - From The CoinFront

Andreas Antonopoulos, the well-known Bitcoin evangelist and speaker, was present via Skype at last night’s Bitcoin meetup in Toronto.

During the talk, which lasted for more than an hour, he spoke on a wide range of subjects, including his recent appearance at the Canadian Senate,

Canadian Senate

Andreas Antonopoulos recently appeared before the Canadian senate to testify on behalf of Bitcoin. He gave some insight into what brought him there in the first place.

…I started a roboforum system where I can be invited to conferences, and one day out of the blue I got an email from the clerk of the Senate Committee on Banking, Trade, and Commerce Canada. She said that they had heard my name, some other witnesses had mentioned my name, and they would like to invite me to come and testify in front of the senate committee.

He also joked about the committee’s name. “By the way, if you haven’t noticed, the acronym for the senate Banking & Trade Commerce is BTC. It was meant to be.”

He praised the Canadian senate’s openness toward Bitcoin.

I went to look at the previous committee hearings, and I saw that they had a rather open minded approach to this and were not scapegoating the Bitcoin community.

When asked by Anthony Di Iorio, the event’s organizer, whether or not he prepared prior to the meeting, he gave a simple answer. “The past two years of doing meetups, and Q&A from audiences of every walk of life, has been one continuous preparation for that. None of the questions were really surprising, and none of them were questions I’d never heard before.”

As far as the significance of the proceedings, he didn’t necessarily see it as as a watershed moment either way. “Bitcoin will progress as a technology according to the desires, actions, and will of its users, not a government committee…It won’t be the regulators that decide where Bitcoin goes”

Bitcoin Security

In the wake of the dubious events occurring this year around companies such as Neo & Bee, Mt. Gox, Moolah, MintPal, Bitcoin Trader, BitXoin, and many others, questions about security and safety naturally came up.

When asked about proof of reserve, Andreas acknowledged it as better than nothing, but considers it a band aid solution, saying “it doesn’t address the larger problem which is the centralization of control of private keys. Proof of reserves only proves that they have the money, but if they have control over that money it creates opportunities for fraud and embezzlement as well as risk of theft and loss. Centralization is the problem, and decentralization is the solution.”

He was very clear on the fact that he believes everyone should be in control of their private keys at all times.

Your keys, your Bitcoin. Not your keys, not your Bitcoin

The Future Of Bitcoin

Andreas gave a shout out to C4, the CryptoCurrency Certification Consortium, which offers professional certification of Bitcoin professionals. He acknowledged their importance, believing they will play a key role in the future of Bitcoin.

He also mentioned the significance of Bitcoin to the financial sector, and one of the reasons why we’re seeing such a rush of innovation in the Bitcoin world.

There’s a reason why no one – except PayPal – started any financial innovation in their garage…If you wanted to bring financial innovation, you had to go to the incumbent [the banks] and their answer was simple: no, we’re not going to let you disrupt our nice little racket…The last major innovation in banking was credit cards, and those are now 50 years old…What we’re seeing now is 50 years of pent up need for innovation crashing like a wave into the Bitcoin space. I don’t think we’ve even seen the beginning of it yet.

One of the things he cautioned the Bitcoin community against was what he called “premature optimization” of Bitcoin, and calls for “dealing with Bitcoin’s problems today, not the problems Bitcoin may have in the future.”

He insisted that “there is no problem with mining centralization“, and believes there are much bigger problems with Bitcoin, like wallet security and adoption.

He has a positive view on the future of decentralization, casting it in the light of the natural way for humans to move. “There’s a reason why Android has 84% of the market. There’s a reason why decentralized systems beat the…finely manicured walled garden of centralization.”

And as for Bitcoin? “I think the probability of Bitcoin being here a decade from now is greater than 95%.”

For his thoughts on these several other topics, including his book Mastering Bitcoin, Bitcoin in Malawi, how Apple Pay may affect Bitcoin, and what he thinks “Orwell warned us against”, watch the full video below.

Andreas Antonopoulos: "Centralization Is The Problem, Decentralization Is The Answer"

New FinCEN Statement May Force Bitcoin Exchanges Into Regulation - From The CoinFront

FinCEN, the US Financial Crimes Enforcement Network, has issued a statement with regard to digital currency.

The document was issued to an unnamed company concerned with their status as a money services business under the Bank Secrecy Act.

In this document, FinCEN makes a specific statement regarding money transmitters. The first pertains to trading platforms, including fiat-to-Bitcoin exchanges like Coinbase and crypto-to-crypto exchanges like Cryptsy.

Under this statement, these platforms would be required to obtain a licence as a money transmitting business, where before they did not.

What Does This Mean?

Under US law, money transmitting businesses must be separately licensed in each of the 50 states, which is cost-prohibitive to all but the most affluent of exchange owners.

Money transmitting businesses are also required to comply with a long list of invasive regulations from FinCEN, including anti-money laundering precautions, risk assessment, record keeping, and several others.

While the company who filed the claim went unnamed in the document, they are described as “a Platform that consists of a trading system to match offers to buy and sell convertible virtual currency for currency of legal tender, and a set of book accounts in which prospective buyers or sellers of one type of currency or the other can deposit funds to cover their exchanges.” This description could be applied to any number of Bitcoin exchanges.

If American-based Bitcoin exchanges are forced to comply with FinCEN rules, it could lead to a mass exodus of bigger players from the country to more Bitcoin-friendly jurisdictions, while the smaller players simply close up shop.

New FinCEN Statement May Force Bitcoin Exchanges Into Regulation

Former SEC Chairman Arthur Levitt Joins Advisory Board Of BitPay, Vaurum - From The CoinFront

Arthur Levitt Jr has become an advisor for both payment processor BitPay and Bitcoin exchange Vaurum.

Levitt’s involvement with these companies is significant, since he is the former chairman of the Securities and Exchange Commission, a US regulatory body whose mandate is to proposing and enforcing rules around the securities, stock, and options industries.

As former SEC chairman, Levitt is naturally more inclined toward regulation. This may mark a move toward a more regulatory-compliant atmosphere at BitPay, which may disturb some of the more libertarian-minded elements of the Bitcoin community.

“The founders of these companies tend to be entrepreneurial, irreverent, and probably feel that regulation should be avoided at all costs,” Levitt said in an interview. “I understand where they’re coming from, but I also believe that regulations really will do more to establish their credibility as an alternative. It’s got to be sensible, balanced regulation and it can’t be regulation that chokes them.”

Levitt served as SEC chairman from 1993-2001, making him the longest-serving person to fill that role.

Government Officials And Bitcoin

Former US Mint Director Edmund Moy has praised Bitcoin for its ability to bring “market solutions” to the table and get around a “govt-protected bank oligopoly”. He even delivered the keynote speech at last summer’s Cryptolina conference in Raleigh, North Carolina.

And former Federal Reserve chairman Ben Bernanke has had positive things to say about Bitcoin, saying it “may hold long-term promise, particularly if the innovations promote a faster, more secure and mroe efficient payment system.”

Former SEC Chairman Arthur Levitt Joins Advisory Board Of BitPay, Vaurum

Butterfly Labs Motions Court To Dismiss FTC's Case - From The CoinFront

The Butterfly Labs saga may have been overshadowed recently by other scam accusations and dubious business practices, but its creditors are certainly no less interested in the unfolding events.

And when the company continues to paint itself as the first victim in an upcoming FTC witch hunt against Bitcoin-related businesses, its many creditors, over 300 of which have submitted filings against Butterfly Labs, may have a hard time taking their claims seriously.

So when Butterfly Labs filed a motion to dismiss the FTC’s case against them, in what they called their “campaign to destroy BF Labs Inc”, which they follow up with a footnote saying “‘campaign’ and ‘destroy’ are not overstatements”, its creditors may again find that a hard pill to swallow.

Invalid Evidence

But Butterfly Labs claims the FTC’s evidence against them is invalid.

They claim to have halted preorders as of July 17th, 2014, “rendering much of the prospective relief sought by Plaintiff [the FTC] moot”. They also make reference to a class-action lawsuit filed against Butterfly Labs earlier this year, during which they “had been cooperating…without once trying to secrete away assets.”

As a result of this and other evidence, Butterfly Labs motions the court to dismiss the case altogether, since “Plaintiff’s complaint fails to state a claim upon which relief can be granted.”

Butterfly Labs is currently permitted to resume limited operations, including the delivery of services to its current clients.

Butterfly Labs Motions Court To Dismiss FTC's Case

MIT Students Can Now Claim Their $100 In Bitcoin - From The CoinFront

The long-awaited moment has finally arrived for MIT’s undergraduate population.

From this moment on, every MIT undergrad is eligible to claim their $100 in Bitcoin.

The project, which was announced in April of this year, promises to help spread Bitcoin through the school, which has a strong history of being on the cutting edge of technology. The funding comes mostly from MIT alumni, along with support from the Bitcoin community.

Students can register for their bitcoins by completing a survey by November 2nd.

Where To Spend ‘Em?

MIT’s Bitcoin ecosystem has been developing steadily since April’s announcement, and students have at least one option in spending their coin.

The MIT Coop, a bookstore and general merch shop, begun accepting Bitcoin last September, using BitPay as a payment processor.

And, if they like the experience, they can always refill their wallet at MIT’s Bitcoin ATM.

Universities And Bitcoin

MIT may be the largest university to begin forays into the cryptocurrency world, but it’s by no means the only one.

Flinders University begun accepting Bitcoin within its Venture Dorm program, geared toward helping aspiring entrepreneurs build new ventures.

Simon Fraser University in Vancouver has also taken its first steps into crypto-land by accepting donations to the university in Bitcoin, thanks to efforts from the school’s Bitcoin club.

Georgia Tech students have options in spending their bitcoins, including snacks & drinks at Bobby Dodd stadium.

And the University of Nicosia in Cyprus began offering a free online course, “Introduction to Digital Currencies”.

MIT Students Can Now Claim Their $100 In Bitcoin

Bitcoin Wallet V. 4.07 Beta Launches - From The CoinFront

Fresh off their latest update to version 4.0, Android’s popular Bitcoin wallet, the aptly named Bitcoin Wallet, is already beta testing their next version.

Bitcoin Wallet version 4.07 has been added to Github for the world to apply its scrutiny.

Among its new features are improvements on its performance, a tenfold network fee decrease, and the ability to record memos in payment requests.

The newest update will also allow users to protect their coins with a spending pin, meaning that even those who know the password to get into the wallet won’t be able to actually spend those coins without inputting the wallet’s pin as well. This is a feature the popular Mycelium wallet has had integrated for some time.

Finally, the update will also support HD key chain rotation.

Those who are interested in helping test out the beta can download it from developer Andreas Schildbach’s Github page.

Bitcoin Wallet V. 4.07 Beta Launches

Group Launches Class Action Lawsuit Against CAVIRTEX - From The CoinFront

Canada’s largest online exchange, CAVIRTEX, is being faced with a class action lawsuit.

The suit is being pursued in reference to CAVIRTEX’s investment round which they pursued in early 2013. The company offered 10% of its shares for sale on Havelock Investments, a cryptocurrency-based asset exchange.

10,000 shares were sold in total on its IPO date of March 23rd, 2013. These shares were traded on Havelock until the end of 2013, when CAVIRTEX announced they would be delisting their stock from Havelock. At the time they were trading for around $120 CAD, an all-time high for that stock. CAVIRTEX offered to buy back their shares at an “adjusted exit price” of $30 CAD, a naturally unpalatable sum.

On top of this, the process of selling their private share certificate was complex and unwieldly, so many investors are now permanent shareholders in CAVIRTEX.

As a result, one group of investors is filing a class-action lawsuit against CAVIRTEX to the sum of $884,800 CAD, based on CAVIRTEX’s market cap at the time of delisting and the adjusted exit price.

Those who feel they were wronged by CAVIRTEX have until November 1st to submit a claim. If you were an investor at the time of delisting, contact claim@cavirtexlawsuit.com with your name, email, phone number, number of shares you held, and any other relevant information.

CAVIRTEX

CAVIRTEX is Canada’s oldest and largest Bitcoin exchange, and in fact they may be one of the oldest exchanges in the world.

The company recently made headlines for launching a fleet of Bitcoin ATMs across Canada.

Lawsuits Ahoy

Several entities in the Bitcoin world are currently facing lawsuits.

Silver Law Group is gathering information to launch a lawsuit against both Cryptsy and Bitcoin Savings & Trust. The suit alleges both organizations used “false and misleading claims” to fool investors. Cryptsy isn’t backing down without a fight, though.

Meanwhile, Dorian Nakamoto is suing Newsweek for what he claims has been dishonest, reckless reporting for their story tying him to Bitcoin creator Satoshi Nakamoto.

A class action lawsuit against what’s left of Mt. Gox by a group of Ontario-based bitcoiners has been partially certified as well, and hinges upon the Japanese government’s response.

Group Launches Class Action Lawsuit Against CAVIRTEX

UK Court Grants Injunction Against Moolah - From The CoinFront

The UK high court has ordered Moolah and its scandal-plagued CEO Alex Green to hand over a large sum of Bitcoin to the Syscoin team.

The team had stored their funds on Moolah’s service, to the tune of 750 BTC (roughly $262,500 at press time’s prices).

Moolah has been ordered to pay back the money by 8:00 pm EST today. The consequences for not following through have not been made clear.

The Syscoin team is being represented by Selachii LLP, a UK-baed law firm.

The injunction was originally granted to allow the Syscoin team to recover the BTC it raised in a crowdsale, which was managed by Moolah. Of the original 1500 BTC that was raised, around 750 BTC remained in Moolah’s coffers when the platform’s issues began.

Where Is Alex Green?

Moolah CEO Alex Green, meanwhile, hasn’t been heard from since last Saturday, when Moolah posted a tweet series on its page.

“A full report regarding everything to date, including a verifiable withdrawal list, etc – is coming this weekend,” the tweets say. “It has taken time to put together, but is fairly detailed. The numbers reported by the media are grossly inaccurate.”

It remains to be seen to which numbers Green is referring, but it’s safe to say any statement from Green will be met with extreme skepticism by the cryptocurrency community, especially by the Dogecoin community.

UK Court Grants Injunction Against Moolah

mcxNOW Will Destroy Your Coins On November 15th - From The CoinFront

If you have any coins stored on trading platform mcxNOW, you’d better withdraw them soon.

The site has posted a message warning of an upcoming maintenance period. The site is suffering from some security issues involving their wallets, and they’re scrapping them all in order to make way for a new system.

As a result, you’ll need to pull your coins off of their platform by November 15th. If you don’t, the results aren’t pretty.

“Any coins left in mcxNOW at the cutoff point will be destroyed,” the site’s statement reads. “Existing wallets and all backups are going to be shredded to maintain privacy of users.”

A Controversial Move

It isn’t clear why mcxNOW would take such a drastic action. Those won don’t get the memo, though, will certainly be angry when they show up in December to check their balances and discover their wallet has been emptied.

McxNOW has a decent volume, trading over 9BTC daily. Hopefully the owners of those bitcoins read this article…

A Sign Of Instability?

The cryptocurrency community has been rocked by instability lately, as platform after platform collapses as a result of security issues, poor leadership, or outright scammery.

Moolah, the Dogecoin community fixture, has been collapsing amid allegations that its CEO Alex Green is actually well-known internet scammer Ryan Humble, who also goes by Ryan Gentle, Ryan Kennedy, Lemon, and several other aliases.

Green himself denies the charges, claiming poor management as being the culprit rather than wrongdoing, but for the most part his name is already damaged beyong repair.

In Moolah’s wake, MintPal has also been dragged down, in an event Dogecoin founder Jackson Palmer has called “The New Mt. Gox“. Moolah was to take over MintPal’s operations, and potentially own it as well, though the details behind that are unclear.

Bitcoin Trader, an arbitrage and high-yield investment platform, has also collapsed under suspicious circumstances. After several months of requests for them to prove they held the bitcoins they claimed they did, its owners claim it was hacked just as they transferred their funds into their hot wallet so they could prove their solvency.

Shortly after the alleged hack, Bitcoin Trader’s social media accounts were shut down.

Is mcxNOW’s action necessarily a dishonest or scam-oriented one? Maybe not, but the Bitcoin community is on such a hyper-vigilant scam watch that mcxNOW’s actions will certainly raise more than a few red flags.

mcxNOW Will Destroy Your Coins On November 15th

Dogecoin Makes Friends With League Of Legends - From The CoinFront

Dogecoin has gotten involved with the popular online game League of Legends with their latest drive, Doge4esports.

The initiative is designed as a contest to raise awareness of Dogecoin with high school-aged people, as well as to stimulate the Dogecoin economy.

And due to the popular video game streaming site Twitch’s decision to accept Dogecoin as a payment method, Doge4esports just became a bit more interesting.

“MIT is giving $100 of Bitcoin to all undergrads this fall,” their website reads. “Let’s consider this initiative junior varsity to their varsity.”

The tournament, which began at the end of September and is being held over nine weeks, had “literally millions of Dogecoin” for the final four contestants, as well as a physical dogecoin for the winner.

Dogecoin Finds Its Niche?

Dogecoin is worth far less than Bitcoin, so it doesn’t work well as a store of value. And it isn’t being used as a secondary trading market, at least not on the large scale Litecoin is.

As a result, it has long been viewed as the tipping crypto. And so far this has been useful on the Dogecoin subreddit, and an occasionally-used Twitter tip bot, but it hasn’t spread much outside of that.

Dogecoin having spread to Twitch, though, could drive up its value and demand. After all, League of Legends is one of the most popular video games in the world currently, with over ten million active users.

It remains to be seen, though, whether or not the League of Legends community will be receptive to Dogecoin.

Dogecoin Makes Friends With League Of Legends

Twitch.tv Begins Accepting Dogecoin - From The CoinFront

Such Twitch. Very Dogecoin. Wow.

Twitch.tv has recently announced it would begin accepting Dogecoin as a payment method for their channel subscriptions.

The platform made the announcement on their official Twitter account.

We now accept DogeCoin! Just use the More Methods option when paying for a subscription. #FrankerZ pic.twitter.com/PqvNJPpz5s

— Twitch (@Twitch) October 21, 2014

This comes after Twitch announced their acceptance of Bitcoin in early August, and developer Josh Mohland created a version of reddit’s Dogetipbot platform, which Dogecoin users use to tip each other, for Twitch.

Twitch seems to be gathering just about every payment method possible on their platform. Working through the platform Xsolla, the platform accepts over 600 different payment options, including, bizarrely, gift cards from Subway, Circle K, and CVS, among many other options.

Twitch.tv Begins Accepting Dogecoin

Cryptsy Responds To Silver Law Group's Suit - From The CoinFront

Cryptsy has responded to the lawsuit against them in a posting on their official blog.

The blog post, made by Paul “BigVern” Vernon, the operator of Cryptsy, claims that Silver Law Group’s lawsuit represents only one client in an isolated case against Cryptsy.

The wording in Silver Law Group’s release claims “investors with Cryptsy…have seen their accounts emptied and Bitcoin simply disappear”.

Vernon also claims not to have received any official notification of legal proceedings, and “find it unprofessional that the law firm decided to push out such a large PR campaign prior to serving any notice.”

Silver Law Group may have, however, released the PR statement in an attempt to gain support from other Cryptsy users who may have been wronged in the past and not taken any action.

The Isolated Incident

The single user Vernon claims to have lost funds did so as a result an “an attack…from within their own computer”.

If that’s true, Cryptsy could certainly not be held accountable for any losses on the part of the user. Further details will likely come to light as Silver Law Group decides on what actions to take next.

Cryptsy Responds To Silver Law Group's Suit

Silver Law Group Files Lawsuit Against Cryptsy And Trendon Shavers - From The CoinFront

Silver Law Group, a Florida-based law firm, is pursuing claims against two different cryptocurrency-related entities.

The suit alleges that these two entities used “false and misleading claims of easy profits, high returns, and little risk.”

Bitcoin Savings And Trust

The first is against well-known Ponzi scheme Bitcoin Savings and Trust. BS&T, operated by Trendon Shavers, was one of the earliest Ponzi schemes in Bitcoin history, for which Shavers was recently fined $40.7 million.

Shavers’ scheme promised astronomical returns, and delivered them at first. The way he described his investment scheme was a textbook Ponzi, and this would have set off alarms to any seasoned investor. Bitcoiners though, many of whom were naive and new to the world of currency and investments, fell right in.

Crypsy

The second entity is Cryptsy, one of the few remaining altcoin exchanges with anything even remotely resembling an untarnished reputation.

The suit alleges that Cryptsy users “have seen their accounts emptied and Bitcoin simply disappear.”

This makes Cryptsy the fourth major cryptocurrency entity to face scandal in recent weeks. Moolah’s collapse has been well-documented, and MintPal was pulled down in its wake in an event Dogecoin founder Jackson Palmer called “the new Mt. Gox“. Bitcoin Trader, a Bitcoin arbitrage and high-yield investment service, has also collapsed amid claims of a hack from their part, and scam allegations from the community.

The Suits

The firm has launched two separate lawsuits against these companies, and has encouraged the community to contact them if they have been affected by either Bitcoin Savings and Trust or Cryptsy.

“If you have invested in Bitcoin or any other cryptocurrency”, their site reads, “and believe you are the victim of a fraud or theft of your assets, you might have the grounds upon which to assert a claim to recover your losses.”

To contact Silver Law Group, email dsilver@silverlaw.com, or call toll-free 1-800-975-4345.

Silver Law Group Files Lawsuit Against Cryptsy And Trendon Shavers

Is Moolah CEO Alex Green On The Run? - From The CoinFront

Moolah CEO Alex Green, alleged to be online scammer Ryan Gentle, is missing with $1.4 million in Bitcoin. Or at least, that’s what The Guardian has said.

The magazine alleged that “the [missing $1.4 million] is believed to be in the personal wallet of the company’s founder and chief executive, Alex Green, who has not been heard from since Moolah went bust.”

Green, however, has taken to Twitter to refute this claim, posting the following:

@VeryVeriViral @theguardian I am not quite sure why I keep being reported as missing. The numbers are wrong too.

— Moolah (@moolah_io) October 23, 2014

Numerous sources have reported Green as being “on the run”, and there have been rumours that law enforcement has already contacted him. These rumours have, so far, been unsubstantiated.

What Do We Know?

Though Green insists he’s not on the run, his current whereabouts are unknown.

And while the theory that Alex Green is Ryan Humble hasn’t been entirely confirmed, the evidence in its favour seems to be piling higher and deeper.

The CoinFront interviewed an anonymous source with close ties to Ryan Gentle, who claims to know “without a shadow of a doubt” that Green and Gentle are one, after seeing the video of his Skype conversation:

It’s not just his voice, it’s the way he speaks, the way he moves, the way he chews on stuff when stressed. The glasses are new though. Not a very good disguise, though I guess it worked for Superman.

Dogecoin founder Jackson Palmer and community member Ben Doernberg originally presented the evidence against Green shortly after Moolah declared bankruptcy and since then everything seems to be unraveling for him.

Is Moolah CEO Alex Green On The Run?

Gavin Andresen : Bitcoin Needs "Regulatory Clarity" - From The CoinFront

Gavin Andresen, chief scientist of the Bitcoin Foundation and longtime Bitcoin Core developer, took to Reddit yesterday afternoon for an AMA interview.

In the interview, he revealed some details on his involvement with Bitcoin, and his experiences.

Technical Aspects of Bitcoin

As a longtime leader of the Bitcoin Core development team, Andresen was naturally the centre of many questions on the subject.

One user suggested the idea of having regularly scheduled hardforks to Bitcoin, in order to take care of the items on Bitcoin’s hardfork wishlist, which often stack up for some time before being taken care of. Gavin liked the idea, though he confessed he “might be the only one, though…”

When asked what he was most excited about in Bitcoin’s development, he said “all of the non-currency uses of the blockchain’s ledger-ordering ability. I have no idea which ones will turn out to be successful, but I’m glad all of that experimenting is happening.”

As for his concerns? Scalability. “My concern is that a solution won’t get consensus before we bump into the 1MB block size. That won’t be a disaster, but I think it could hurt Bitcoin’s reputation as a low-transaction-fee way to transfer value around the world.”

Other Cryptocurrency Developments

Andresen called the idea of Overstock’s Medici project “really really interesting”, though whether or not it will be able to challenge Wall Street “depends on how the SEC (or similar regulatory agencies overseas) reacts.”

He also gave a shout out to Amir Taaki’s Dark Wallet, naming it specifically when mentioning “lots of other great wallet options” than Bitcoin-Qt. He expressed his excitement with Mycelium’s hardware wallets, and with “watching the spread of Bitcoin ATMs, because getting BTC is still a bottleneck for ordinary people”

Satoshi

Of course, since Andresen was one of the few people who had contact with Bitcoin’s enigmatic founder Satoshi Nakamoto, several questions revolved around him.

When asked if he thinks Satoshi will ever make contact with the general public again, he replied simply “I don’t know if Satoshi will ever reappear.”

The Future Of Bitcoin

What does Bitcoin need in order to move forward? According to Andresen, it’s “regulatory clarity, ease of use, and no-single-point-of-failure security.” He’s optimistic, explaining that “I think we’re very close on all of those things.”

He’s always believed that Bitcoin is an “experiment”, and to that effect Bitcoin 1.0 has never been released (the current version being Bitcoin Core 0.9.2). He believes it will reach version 1.0 “when it feels like it is stable and won’t need to change (besides minor bug fixes) for two or three years.”

As for advice on how to get involved in the Bitcoin world? “I guess my advice would be to act like an entrepreneur — try lots of things, expect most of them to fail, but keep your eyes open for opportunities.”

Gavin Andresen : Bitcoin Needs "Regulatory Clarity"

BitLicence Commentary Period Comes To A Close - From The CoinFront

The commenting period for New York’s BitLicence proposal has now come to a close.

The final day for commenting was yesterday. New York’s Department of Financial Services will now take what they’ve heard from the community and use that to build a better BitLicence.

Or at least, that’s what the community is hoping.

Many big names in the industry have already put in their comments on it. Circle CEO Jeremy Allaire has called it “technically impossible to comply with“, while Xapo and OKCoin had similar complaints. Coinbase’s comments were more tempered, but still opposed it in its current state. The Bitcoin Foundation, Digital Currency Council, and the Electronic Frontier Foundation have all spoken out against it.

Final Commentary

BitPay, which was surprisingly mum on the subject, put in their commentary at the eleventh hour. In their argument, they outline what they believe to be major weaknesses in the BitLicence as it currently exists.

They believe it lacks what they call “innovative rule making”, calling the BitLicence “a compilation of every banking rules and regulations that exist rather than a risk-based ensemble of controls that enables innovation…with sound consumer protection, anti-money laundering objectives and data security controls.”

BitPay made several specific requests, including the removal of requirements for audited annual financial statements, and the requirement for names, account numbers, and physical addresses to be collected from any users for every transaction.

“Merchants on Broadway do not collect such information for ‘each transaction'”, their statement reads, “whether via cash for a hotdog or via debbit cards to attend a show.” This attitude of hyper regulation of Bitcoin will lead to an uneven playing field where the use of Bitcoin will be far more inconvenient than fiat currency.

New York’s Future

NYDFS Superintendant Benjamin Lawsky recently said in a talk at Cardozo Law School that the BitLicence in its current framework was somewhat rushed. As a result of Mt. Gox’s collapse, they felt it necessary to get to work on a Bitcoin regulatory framework as soon as possible.

This may explain why the BitLicence seems to overextend itself and falls so far short of what most in the community would prefer.

At this point, the commentary period is over, but the Bitcoin community will doubtless still have lots of commentary on it.

BitLicence Commentary Period Comes To A Close

MintPal's Collapse "The New Mt. Gox" - From The CoinFront

The drama which has unfolded with Moolah and its scandal-plagued CEO Alex Green has overshadowed what may be one of the most important and traumatic events of 2014 in the Bitcoin world; the collapse of MintPal.

The company has had a difficult year so far, having been at the centre of a controversy after a hack emptied out a large amount of VeriCoin. 30% of the world’s supply, in fact.

However, there seemed to be hope when Moolah acquired the struggling exchange. This was back when Alex Green’s reputation among the Dogecoin community was still respectable.

Moolah had planned on re-launching MintPal with a new and improved service. As a result, the exchange was taken offline for a time. Its relaunch was plagued with technical issues, which led to its removal once again.

However, after Green’s alleged fraudulent activities began to come to light, the future of MintPal came into question.

Missing Funds

Around 3700 BTC are missing from MintPal’s coffers, about $1.5 million USD at current rates.

MintPal’s primary shareholders have been left to clean up the mess, and it isn’t pretty. Eoghan Hayes, a former employee of Moopay, Green’s parent company which controlled MintPal, said that “what happened to MintPal is the equivalent of a nuclear bomb being dropped on a city, and a two-man hazard crew consisting of Mike and Ferdous (MintPal’s primary shareholders) are now in charge of the clean up.”

Meanwhile, Alex Green/Ryan Kennedy is the only person with access to MintPal’s funds. MintPal said as much in a tweet:

We do not know Ryan's current location, and he is unfortunately the only one with access to customer funds.

— MintPal (@MintPalExchange) October 19, 2014

MintPal said in a tweet that they have “reached out to law enforcement”, though it remains to be seen what can be done.

Mt. Gox All Over Again?

Dogecoin co-founder Jackson Palmer has called MintPal’s collapse “essentially the new Mt. Gox”, and others have echoed the sentiment. While the amount of funds lost in MintPal isn’t as enormous as what was lost in Mt. Gox, it’s doubtless that many MintPal users were seriously hurt by the collapse.

The collapse of MintPal, along with Moolah and Bitcoin Trader, has marked a rough week for the Bitcoin community.

As more details in each of these sagas come to light, one thing is clear. The Bitcoin community must be more vigilant to scams and security than ever.

MintPal's Collapse "The New Mt. Gox"

Amazon Hiring A Sr Software Engineer To Push Its Own Virtual Currency - From The CoinFront

Individual digital pay systems seem to be increasing in popularity among bigger companies. Google has their Google Wallet service. Apple has Apple Pay. And now it seems like Amazon is getting on board.

In a posting on the job search website Indeed, Amazon is searching for a senior software engineer to help push forward their “Amazon Coins” project, which they call “a virtual currency that can already be used to purchase apps, games, and in-app items on Amazon Appstore.”

The ad offers a not-so-subtle dig against Bitcoin and the rest of the cryptocurrency world:

Unlike some of those other “currencies” out there, we’re backed up by and have access to the customer trust and fortitude of the world’s largest online retailer.

Nevertheless, it’s clearly trying to appeal to those within the Bitcoin community. “If the crazy ride and popularity of Bitcoin makes you cackle like a mad-scientist, this is the place for you.”

Amazon had registered a patent in May which hinted at some sort of virtual currency adoption, and Amazon Coins may have been what that patent referred to.

Each Amazon Coin is worth one cent USD, and can be currently used for Amazon-related purchases only. In that sense, it’s more like a gift certificate than a currency.

Amazon And Bitcoin

Those hoping for Amazon to accept Bitcoin will undoubtedly be disappointed by this news. After all, if Amazon is developing its own virtual currency, it’s not likely to be interested in anything outside of it.

However, Amazon does have a history with Bitcoin.

Earlier this summer, the company acquired the online video streaming site Twitch.tv, which had already begun accepting Bitcoin a few weeks prior. The company later expanded its Bitcoin acceptance to more services on its platform under Amazon’s stewardship, an encouraging prospect.

Regardless, whether or not Amazon accepts Bitcoin will make little difference in its continued success. Respected names like Overstock, Expedia, Dell, and PayPal have already joined in, and Amazon will simply be left behind.

Amazon Hiring A Sr Software Engineer To Push Its Own Virtual Currency

Bitcoin Trader Collapses Amid Claims Of Hack - From The CoinFront

Bitcoin Trader, a Bitcoin arbitrage and investment service, has declared bankruptcy.

It’s the result of a hack, according to Bitcoin Trader owner John Carley. He said in a statement that while they were preparing the results of an audit done on the site, “our bitcoin wallet has been hacked and emptied, just after exchanging our fiat holdings within the exchanges to bitcoin and transferring our entire holdings to our wallet, in order to (sic) proof our solvency.”

Carley also claims to have been contacted by the hacker, who offered a ransom for returning the funds, “but haven’t heard back from him for several days now.”

Bitcoin Trader’s social media accounts have also been closed. It’s almost as if they never existed.

Deja Vu

For a community hit so hard from scam after scam after hack after hack, Bitcoin Trader’s behaviour seems to be just part of the game.

Many members of the community had requested Bitcoin Trader prove their solvency earlier this year, a request which was met with resistance from Carley himself. This was enough to cause concern among many members of the community that Bitcoin Trader wasn’t what it claimed to be.

In Carley’s statement, he blames the hack on the proof fo solvency request. After converting all their funds to Bitcoin and transfering it to their wallet in order to prove their solvency, a hacker emptied out their wallet.

As a result, Bitcoin Trader’s investors are left empty-handed, much like they must have felt after Mt. Gox collapsed.

A Likely Story?

“Hackers” have quickly become an easy scapegoat for any Bitcoin-related business to get out of a sticky situation.

Mt. Gox CEO Mark Karpeles has blamed his exchange’s collapse on a hack. Meanwhile, the other two possibilities, gross negligence or inside shenanigans, are equally as likely.

This is not to say that hackers aren’t real, and that there aren’t legitimate security threats online. But the more Bitcoiners hear about their favourite services being “hacked”, especially by organizations of dubious authenticity, the less seriously the real security threats will be taken.

Bitcoin Trader Collapses Amid Claims Of Hack

Moolah CEO Alex Green: "I F***ed Up On A Catastrophic Level - From The CoinFront

Alex Green, CEO of Moolah and the man alleged to be well-known internet scammer Ryan Gentle, has spoken on Moolah’s blog.

In the blog, he provides secveral insights into what happened with Moolah in an attempt to clear his name. In short, he says “I know I have f***ed up on a catastrophic level”.

Moolah

Green gives a long-winded explanation of what happened with Moolah, claiming the platform “had been bleeding funds from the core platform.”

As a result of a “giant technical oversight”, Green claims users on Moolah were able to double their balances through the exploitation of a bug . A similar bug was discovered earlier this year, but Green claims there was another one of which they were unaware until now.

As a result, Green hastily declared bankruptcy at the same time as Moolah was working on a solution to replace the funds through a venture capital injection. The VC pulled out, though, after the strong backlash against the scandal-plagued company.

More details will come to light in the future, including “a full breakdown [of expenses, including] receipts/invoices where available.”

MintPal

Green claims MintPal users can still withdraw their funds from the platform, and that it has processed 2597 BTC worth of altcoin withdrawals since they shut down the service.

MintPal themselves, however, seem to disagree. They said as much in a tweet yesterday evening:

We do not know Ryan's current location, and he is unfortunately the only one with access to customer funds.

— MintPal (@MintPalExchange) October 19, 2014

Alex Green Or Ryan Kennedy?

In a previous post, Green asserted cryptically that “in the eyes of the law, my name is Alex Green.” Green would later admit he legally changed his name to Alex Green from Ryan Kennedy, “in an attempt to start my life over and have some peace.”

What isn’t clear is what he’s had to start his life over from, though the allegations made against him may lead one to fill in the blanks.

The CoinFront’s sources claim his birth name was Ryan Francis Gentle. He may have changed it multiple times as a result of multiple fraudulent activities.

What’s Next?

Green asserts that he’s not on the run, and that it would be “very easy for any official body to find me.”

He also reasserts that no criminal wrongdoing has taken place by either himself or any other employee of Moopay LTD, the holding company under which Moolah has been maintained. “I fully intend to cooperate with any and all law enforcement and regulatory agencies as required.”

Interestingly, at no point does he specifically address any of the allegations made against him, other than to say that “some of the latest ones are getting rather ridiculous, and I deny the vast majority of them.”

He also swears to never go into business as a entrepreneur again, especially as the head of a financial services company, and expresses regret at the way things turned out.

I am shocked and upset that this has happened, and I am fully aware that I deserve the general sentiment in relation to me. Again, words cannot express how sorry I am. I will be taking any and all possible action in order to mitigate the damage caused by this event, in turn likely caused by poor management by myself.

Moolah CEO Alex Green: "I F***ed Up On A Catastrophic Level

"I Watched The Video. It's His Voice. It's Him All Over" - From The CoinFront

The CoinFront was recently approached by a source who claims to know Moolah CEO Alex Green personally, with evidence against him.

The source, who asked to remain anonymous, has been aware of Green’s activities for several years.

He used to sell phones on eBay fraudulently back before they improved their security. And he committed check fraud with hotels too, when you could still do that. He always manipulated someone into using their personal details during his activities though, so on paper he’s clean.

Are Ryan Gentle And Alex Green The Same Guy?

The source knew Ryan Gentle when he went by the alias Ryan Kennedy, as well as Ryan Albright. “I watched that video,” the source told The CoinFront, referring to the now-infamous Skype conversation Alex Green had. “It’s his voice. It’s him all over.”

When pressed for more details, the source admitted “I’m not sure how I can prove it”, but noted they believe it’s him “without a shadow of a doubt.”

It’s not just his voice, it’s the way he speaks, the way he moves, the way he chews on stuff when stressed. The glasses are new though. Not a very good disguise, though I guess it worked for Superman.

But despite the fact that the source disapproves of his activities, they do not wish any harm upon him.

He is a horrible human being, I get that, and many people are angry with him. They have a right to be, but you have to understand he’s mentally ill. He needs help. I want him to get mental help, and I want him to stop hurting people.

Support

Others in the cryptocurrency community have come out in opposition to Alex Green/Ryan Humble.

Andreas Antonopoulos posted the following on Twitter shortly after the initial evidence against Alex Green came to light

Congratulations to @BenDoernberg and @ummjackson who both blew the whistle on Moolah months ago, to howls of disapproval. They were right.

— AndreasMAntonopoulos (@aantonop) October 16, 2014

The Dogecoin subreddit is ablaze with discussion on the matter as well, with most people now joining in opposition to Green’s activities.

Our friends over at Coin Fire have also reported the SEC is currently under investigation for their activities as “unregistered securities”.

The evidence against Green continues to mount. And while rumours have been circulating that Green has been arrested, he continues to post using the account /u/moolah_ on reddit. Free or imprisoned, though, his credibility and reputation are likely entirely shot now.

"I Watched The Video. It's His Voice. It's Him All Over"

Ross Ulbricht Trial Delayed Until 2015 - From The CoinFront

Ross Ulbricht, alleged creator and operator of Silk Road, will have to wait in prison a while longer for his court date.

His defense originally sought to delay the beginning of his trial, which was slated to begin on November 10th. And that request has seemingly been granted, as the trial has been adjourned until next year.

The delay is a result of scheduling issues which Ulbricht’s defense needed to resolve in order to move forward, including jury availability. Considering the fact that the trial would likely run into the Christmas holidays, it makes sense.

This is one of the first victories (albeit minor) Ulbricht has won during the trial. He attempted to dismiss the charges brougpt against him, citing a then-recent IRS ruling which claimed that Bitcoin was property, not currency, and therefore he could not be charged with money laundering. This bid, however, failed.

His second bid to drop the charges against him are a result of cliams the FBI violated his 4th amendment rights while gathering the evidence against Silk Road. Under US law, if law enforcement violates the 4th amendment during their investigations, all charges must be dropped. The FBI, however, is not taking this lightly and has mounted a defense against this claim.

Ulbricht’s trial will begin late January 2015.

Ross Ulbricht Trial Delayed Until 2015

Bitcoin Group Aims For An IPO - From The CoinFront

Bitcoin Group, an Australian-based cryptocurrency arbitrage service, is working on an initial public offering for its company.

If it works, this will make it one of the first publicly traded Bitcoin businesses.

The company is hoping to raise $20 million by selling its stocks at 20 cents per share, as part of a plan to shift the company’s direction.

Bitcoin Group’s modus operandi is focused on automated cryptocurrency trading, which moves money from one Bitcoin exchange to another to take advantage of price differences when prices change from the historical average. This has allowed them to deliver investors enormous returns of over 700% since June 2013.

From Arbitrage To Mining

However, once the company raises enough capital during its IPO, founder Sam Lee wants to refocus Bitcoin Group’s efforts on mining instead.

To make sure the mining process is profitable, the company will be negotiating with Bitcoin mining machine manufacturers as well as electricity companies.

Investors

Bitcoin Group has already received pre-IPO investment from Chinese millionaire Allan Gao, who helped fund the company’s early expenses, including legal fees and brokerage fees.

The rest of the company’s investors could come from a wide range of sources. A number of well-known investors in the Bitcoin community are often on the lookout for new investment opportunities. Roger Ver earned his nickname “Bitcoin Jesus” from his angel investments in many Bitcoin startups, and Sir Richard Branson has been investing in Bitcoin companies like BitPay and Blockchain.

Bitcoin Group Aims For An IPO

Doctors Without Borders Campaign Accepts Bitcoin, Dogecoin To Fight Ebola - From The CoinFront

A new fundraiser from Doctors Without Borders is hoping to raise funds to help fight Ebola in West Africa. And they’re accepting cryptocurrencies to do it.

The campaign, “A Day Without Touch”, encourages participants to go as long as they can without direct skin-to-skin human contact, in order to simulate the struggle those in West Africa face.

The Ebola virus is spread through touching the bodily fluids of a person sick or infected with it, including urine, blood, saliva, vomit, and other unpleasant things. One of the best ways to avoid ebola infection in an area where ebola is rampant is to avoid contact with those who may be infected.

Take The Challenge

In order to take the challenge, you can create a fundraising page on the site adaywithouttouch.org, where you then halt all physical contact with other human beings.

Once you end up touching another person, either accidentally or deliberately, flip a coin. Heads, you live. Tails, you die. This simulates ebola’s lethality.

The campaign is accepting donations in PayPal, as well as Bitcoin and Dogecoin. To donate to the campaign, visit their website.

Doctors Without Borders Campaign Accepts Bitcoin, Dogecoin To Fight Ebola

Moolah CEO Alex Green Alleged To Be Online Scammer Ryan Humble - From The CoinFront

Two prominent members of the Dogecoin community have come out with evidence they believe ties Moolah CEO Alex Green to a history of fraudulent activity.

Jackson Palmer, the co-founder of Dogecoin, along with Ben Doernberg, a long time member of the Dogecoin community, have released a document where they’ve compiled their evidence of the “abuse, fraud, and destruction he leaves in his wake”.

Who Is Ryan Kennedy?

They allege that Alex Green is in fact the well-known online scam artist Ryan Kennedy, who also goes by the pseudonyms Ryan Humble, Ryan Gentle, Ryan Fletcher, Ryan Albright, and possibly others.

However, before they even start into the evidence, they go out of their way to mention the people who worked with Green “were not aware of who they were dealing with”, and that employees of Moolah, MintPal, and members of the Dogecoin & Syscoin communities in general were not part of Green’s alleged fraudulent activities.

The Evidence

The document starts with a simple email from an unknown source which read “Alex Green = Ryan Kennedy/Ryan Gentle”.

It then provides links to sources which cite Ryan Gentle’s fraudulent activities as a member of the Bitcoin Talk forum under the name “Lemon”, as well as a blog called “Stop Ryan” which dates as far back as 2006.

The document also provides several images of Ryan Humble, and of Alex Green’s face from a Skype conversation. Take a look at them below to see for yourself.

An image of Ryan Humble from an earlier time

“Ryantehninja”

An image of Alex Green from a conversation on Skype

They also link Ryan Humble to another cryptocurrency project for which he raised funds and then failed to follow through on, Crypto.pm. The site’s design and investment offering “are essentially identical to the Moolah PIE investment offering”. Ryan Humble then claimed health issues before disappearing with over 500 BTC.

But what they called their “final nail in the coffin in determining that who we know as ‘Alex Green’ is not who they say they are” is when they acquired Ryan Gentle’s drivers licence.

Alex Green Defends Himself

Alex Green has made a posting on Moolah’s blog defending his and his company’s name.

Calling his identity “irrelevant”, he claims that neither he nor his employees have broken any laws, and that “in the eyes of the law, my name is Alex Green.”

He also claims not to have disappeared with the money raised during Moolah’s investment period, instead having used those funds to run Moolah, which he claims takes $63,500 to operate.

Interestingly, Green has decided to step down as CEO of Moolah, “in order to ensure the company has management better able to cope with the issues now surrounding the company, and so that any reputation tarnished by association with me is no more.”He asserts that Moolah will continue, regardless of how its future unfolds.

And is Alex Green a scammer? He flat out denies that claim. “There is no scam here, no matter how you look. There has been poor management however and that is my fault.”

Jackson Palmer And Alex Green

This isn’t the first time Green and Palmer have come to odds.

When UltraPRO first announced their intention to trademark the Doge meme, Palmer and Green had a very public argument which ended up with Palmer leaving the Dogecoin community for a time. Palmer believed Green was attempting to gain control of Dogecoin and any related materials.

At the time, Palmer seemed to be overreacting. However, if his allegations against Green are accurate, his actions may be vindicated.

Do you trust Alex Green? Do you think the evidence against him is legitimate?

Moolah CEO Alex Green Alleged To Be Online Scammer Ryan Humble

Electronic Frontier Foundation Joins The Fight Against The BitLicence - From The CoinFront

The BitLicence now has one more opponent, and it’s a big one.

The Electronic Frontier Foundation has started a campaign in opposition to the BitLicence, citing its requirement for Bitcoin-related services to essentially spy on its users.

They call the BitLicence “bad news for privacy and free speech”, but urge users to take action, as we have a chance to “change the proposal or even stop it altogether.”

Major Issues

The Electronic Frontier Foundation takes issue with the BitLicence for several reasons.

One is its broad scope. The supposed thought behind the BitLicence is to protect individuals from fraudulent and poorly-run money transmitting and financial services. However, “far more than just money services” will need a BitLicence.

NYDFS Superintendant Benjamin Lawsky did say in a talk at Cardozo law school that regular Bitcoin users and miners will be exempt from having to hold BitLicences, though.

They are also concerned with the infringement of privacy the BitLicence would bring. BitLicenced companies would have to collect data on their users including their full name and residence. This defeats the purpose of Bitcoin in the first place, since one of its greatest benefits is its pseudonymity. “So while individual users may not need a BitLicence, their privacy will be seriously affected.”

This issue also means that users will need a physical address in order to use Bitcoin-related services, which means those in impoverished nations will be restricted from using Bitcoin. This point was previously brought up by Digital Currency Council member David M. Long.

They also believe it will cause a barrier to entry for startups, since anyone who wants to start a money-related cryptocurrency business will have to undergo background checks, and even submit fingerprints to the government.

Take Action

The Electronic Frontier Foundation concludes by saying

Virtual currencies like Bitcoin have the potential to be privacy-protective and censorship-resistant, but the proposal from New York could undermine all of that. New York is pushing this regulatory framework under the guise of combatting money laundering, but it will affect everyday users and small businesses that have done nothing wrong. Perhaps worst of all, it could stifle a fledgling privacy-enhancing industry before we even know what virtual currencies could help launch.

They’ve created an email campaign where bitcoiners can send a message to Superintendant Lawsky and General Counsel Dana Syracuse informing them of their opposition to the BitLicence and their support of the EFF’s thoughts on the matter. To take part in the campaign, click here.

Electronic Frontier Foundation Joins The Fight Against The BitLicence

Ben Lawsky Speaks About The BitLicence At Cardozo Law School - From The CoinFront

NYDFS superintendant Benjamin Lawsky recently made an appearance at Cardozo Law School in New York to speak on the BitLicence.

He provided some interesting insight into the NYDFS’ process when getting to know virtual currency and Bitcoin, and why he believes a BitLicence is necessary.

Why Is Regulation Necessary?

“Bitcoin and virtual currency came up on the DFS’ radar some time last year”, he said. However, current moneyary regulations were created “before anyone had ever thought of an internet”, let alone cryptocurrency. As a result, he believes the NYDFS has a responsibility to regulate virtual currency-related businesses and bring old laws up to 21st century standards.

He also cites Liberty Reserve and Silk Road as examples of virtual currency’s history with money laundering and criminal activity.

Bitcoin’s Potential

Lawsky lists several important features of virtual currencies which he believes underscores “the power behind this technology”.

One of the biggest is lower fees. Citing remittance rates of up to 8% being fairly standard in New York, Bitcoin can lower that to 1% or even lower.

This will provide a competitive effect, which will force banks to lower their fees and improve their service in order to remain competitive in the industry.

Transactions also don’t require credit card information, which means “far less chances of identity fraud.” He admits to having been a victim of identity fraud himself in the past, and that Bitcoin’s potential to prevent this is exciting.

Mt. Gox

Lawsky mentioned the NYDFS’ original plan to have a BitLicence proposal prepared by the end of 2014, but the collapse of Mt. Gox changed that.

As a result of the hundreds of millions of dollars in Bitcoin having disappeared, the NYDFS pushed forward their proposal and rushed it out quickly.

When Mt. Gox collapsed, there was no regulatory body to step in and get timely answers for customers. Instead there was radio silence.

As a result of the lack of regulatory oversight, Lawsly believes, Mt. Gox’s collapse caused more damage than it needed to.

Clarity On The BitLicence’s Reach

One of the most eye-opening moments of this talk, though, is the clarity on the BitLicence’s reach.

Lawsky clarified that most people operating in the cryptocurrency community will not be subject to the BitLicence’s regulations. Software developers and miners, for example, will not need a BitLicence to operate. Nor will the average person using Bitcoin.

However, any business that acts as a “financial intermediary” will need one.

Most of the entities who have come out most strongly against the BitLicence are those that will be subject to its regulation. Coinbase, Circle, Xapo, OKCoin, and even the Bitcoin Foundation itself have come out in opposition to it.

Goals

The BitLicence is geared toward protecting consumers while at the same time keeping the cost of compliance down. Rather than strangle startups, the goal is to foster their growth.

He concluded by stating that bitcoiners and virtual currency advocates can still make a profit playing by the BitLicence’s rules.

Most in the Bitcoin community, however, seem to disagree.

Ben Lawsky Speaks About The BitLicence At Cardozo Law School

Moolah Declares Bankruptcy, Citing "Volatile Environment" - From The CoinFront

One of the most polarizing figures in the cryptocurrency world, Moolah, is closing its doors after 10 months of operation.

The company, which operates under Moopay LTD, has cited “a volatile environment”, “rising costs and dropping revenue”, and “the loss of a number of key clients” as the reasons for its closure, and will be filing for bankruptcy and dissolution.

Once the bankruptcy proceedings are completed, Moopay plans to liquidate all its assets. It will then pay its creditors, and anything left will be divided among the company’s investors.

Another Mt. Gox?

Those who were burned by Mt. Gox, Dogevault, Flexcoin, BitXoin and others are extremely wary of bankruptcy proceedings in cryptocurrency-related businesses.

But Moolah has assured its users that “all client funds held in consumer accounts are safe, and can be withdrawn as per normal”, and will be available until the 31st of October. After that, users will receive an email notification asking where they want their funds to go.

The community could hardly be blamed for being skeptical of such claims. Nevertheless, it remains to be seen how easily Moolah users can access their funds.

A Controversial Figure

Moolah’s history within the cryptocurrency world has been marked with victories and controversy.

Moolah CEO Alex Green was involved in the original Dogecoin Foundation, which quickly imploded amid infighting. Green claims that members of the Dogecoin Foundation harassed him and his company, while the others allege it was Green who dissolved the Foundation in the first place.

Green was also at the centre of a controversy around the company UltraPRO’s attempt totrademark the Doge meme. While Green believed in fighting it, Dogecoin cofounder Jackson Palmer disagreed, which led to a very public confrontation and Palmer’s exit from the Dogecoin community. Though he has since returned, the rift between Green and Palmer remains.

Moolah has also recently taken control of the beleaguered and controversial cryptocurrency trading platform MintPal. Earlier this year, MintPal was hacked in an event which caused 30% of the world’s VeriCoin supply to be stolen. Moolah took control shortly thereafter, though MintPal’s relaunch has been marred by delays and technical issues.

As for MintPal’s future, Moolah claims to have “sourced a new management team for it”, though it will be coming down until the current issues have been resolved.

However, Moolah has been involved in a number of Dogecoin’s victories as well. Without Green’s donation of 20 million DOGE, the Dogecoin community would likely have missed out on what may be their greatest victory so far, the Dogecar.

He also took an active role in Dogecoin’s fundraiser for the Washington mudslide victims earlier this year.

What do you think of Moolah, and its CEO Alex Green?

Moolah Declares Bankruptcy, Citing "Volatile Environment"

Living Room Of Satoshi Closes Its Doors Over New "Economically Infeasible" Regulations - From The CoinFront

Living Room of Satoshi, an Australia-based company which allows users to pay any bill in Australia with Bitcoin, has suspended all operations.

Citing the Australian government’s recent ruling on Bitcoin, they claim it “makes it economically infeasible for any Australian-based business to use bitcoin as the currency that it was designed to be.”

They cite the Australian government’s recent ruling that Bitcoin be considered an asset, not a currency. Though it permits Bitcoin to be used legally, it also causes some issues.

Australia’s Bitcoin Regulations

One of the major problems with Australia’s Bitcoin regulations is the fact that it effectively creates a “double-tax” on it. Those who wish to use Bitcoin must pay a 10% GST when purchasing Bitcoin, and another 10% when actually using it.

A petition has been started to push back against this ruling, with corporate signees including HardBlock, CoinSpot, Coin Loft, and, of course, Living Room of Satoshi, among others. They urge that Bitcoin is not a good or service, but a digital currency, and must be treated as such.

In the meantime, though, Living Room of Satoshi has been forced to close its doors.

Those interested in signing the No Double GST For Bitcoin petition can click here.

Living Room Of Satoshi Closes Its Doors Over New "Economically Infeasible" Regulations

Dorian Nakamoto To Sue Newsweek Over "Reckless Reporting" - From The CoinFront

Dorian Nakamoto has had an unusual year which he certainly never could have predicted.

In March of this year, the magazine Newsweek re-launched its print edition, and their cover story was a claim to have discovered the identity of Satoshi Nakamoto’ Bitcoin’s enigmatic creator.

Journalist Leah McGrath Goodman pointed the finger at a 64 year old Japanese American living in California named Dorian Prentice Satoshi Nakamoto. Hers and Newsweek’s claim, since then, has been thoroughly discredited by the Bitcoin community, by Dorian’s brother Arthur, and by Dorian himself. Meanwhile, we still don’t know the identity of Satoshi Nakamoto.

And now, Dorian is suing Newsweek for what he calls their “reckless reporting”.

The Dorian Nakamoto Legal Defense Fund

Shortly after Newsweek’s publication, Andreas Antonopoulos began a fundraising campaign for Dorian. “If this person is Satoshi,” he said, “then the funds are a small ‘thanks’ and won’t make much of a difference. However, if this person is not Satoshi, then these funds will serve as a ‘sorry for what happened to you’, help with medical bills…any legal bills…or anything else.”

The Bitcoin community ended up raising nearly $30,000 for Dorian, which Andreas himself presented to Dorian.

But Dorian has now launched his own legal defense fund. Describing his “severe financial distress”, the website Newsweeklied.com mentions that the cost of a lawsuit against Newsweek would be cost-prohibitive, which he is unable to manage.

The website asks for donations in order to help Dorian mount a successful suit against Newsweek.

If a private citizen like Dorian can be targeted and victimized by a reckless news organization, it could happen to others. Please help us to remind Newsweek and the press community of their continuing legal and ethical responsibilities to the broader public.

To contribute to the Dorian Nakamoto Legal Defense Fund, visit the website newsweeklied.com. They accept cheque, money order, credit card, and, of course, Bitcoin.

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What Are The Internet's Five Giants Saying About Bitcoin? - From The CoinFront

Alexa keeps a ranking of the world’s top websites by traffic. And while many of the top 5 aren’t surprising, you may not even have heard of some of them!

Of course, with the growth of the currency of the internet, those in the Bitcoin community are interested in these large internet companies accepting Bitcoin. Here’s what each of them have had to say on the subject.

Google

Not surprisingly, Google is the largest website on the planet. And if Google were to begin embracing Bitcoin, it would be a momentous occasion.

And Google has taken some tentative steps into the Bitcoin world. They launched a price calculator on their platform which allows users to check the average value of Bitcoin right in Google’s search menu.

Google’s CEO Eric Schmidt has had good things to say about Bitcoin as well, calling it a “remarkable cryptographic achievement,” and saying that the technology upon which it was built “has enormous value”.

However, though there have been rumours Google was considering accepting Bitcoin, nothing has yet come to light.

Facebook

Google’s biggest antagonist, Facebook is the second largest website on Earth.

While other big names in the tech world have been vocal on their opinions on Bitcoin, Facebook has been remarkably mum on the subject.

However, that hasn’t stopped others from building on Facebook’s platform. A cryptocurrency tipping app for Facebook made its debut back in June, which allows users to tip each other from within groups.

There was also a trojan floating around on Facebook’s platform which took advantage of users’ computers to mine Litecoin. Facebook shut it down earlier this year.

There have been rumours they are preparing an online money service, but so far nothing has come to light.

YouTube

With the #1 and #3 slot online, it’s clear Google is the king of the internet.

As a content-driven platform, YouTube would be perfect for adopting cryptocurrency. Content creators could accept cryptocurrency tips and donations from their viewers.

And while YouTube has implemented what they call a “tip jar” function, it’s done with fiat currency, not crypto. It’s a step in the right direction, but Google itself takes a 5% fee to process the transaction, as well as a flat rate of $0.22.

With cryptocurrency, the fees would be much lower, but YouTube of course wouldn’t be able to skim their cut off each transaction.

Yahoo

One of the biggest search engines on the planet and one of the oldest internet-based companies, Yahoo’s popularity has waned in favour of Google, but it still holds a strong spot near the top of the internet.

Yahoo has taken a similar path to Google when it comes to Bitcoin. They’ve added a Bitcoin price calculator to their platform, but haven’t taken a deeper plunge.

Yahoo Finance published an article earlier this year which featured some astounding misconceptions about Bitcoin.

Calling Bitcoin “an asset with little underlying value” is arguably false, but saying that “governments can, in theory, shut down bitcoin commerce” is almost completely false. In order to truly shut down Bitcoin transactions, the world’s governments would likely need to shut down the internet as a whole.

While this one article doesn’t sum up the entire company’s views on cryptocurrency, it is disconcerting.

Baidu

Have you heard of Baidu? If not, it’s not surprising. They aren’t a household name in the west.

But in China they’re incredibly popular, seen as China’s answer to Google. And with the Chinese government’s strict controls on what their citizens can and can’t access online, it makes sense that China would have its own search engine.

Baidu actually begun accepting Bitcoin last year around the same time the price began to skyrocket. However, once China’s policy on Bitcoin became less and less clear, Baidu pulled back and canceled their Bitcoin program.

The Next Five

In general, the view of Bitcoin for these online behemoths is bleak. Not one of them has waded further into the world of Bitcoin than simply testing the waters.

But what about the next five? The outlook there is a little better. But that’s a story for another article.

What Are The Internet's Five Giants Saying About Bitcoin?