Is It Safe to Use Crypto Exchanges and Wallets in 2018?

crypto exchanges are not reliable

The cases of hacker attacks aimed at major cryptocurrency exchanges and various scams are getting more and more frequent. A lot of experts in this field start seeing an ongoing tendency in this. So why are many cryptocurrency holders losing trust in digital wallets and exchanges?

Firstly, we all remember the strange story with the bounty campaign of John McAfee’s wallet Bitfi, during which nobody received the promised $250k. Secondly, one of the largest crypto exchanges Bithumb was hacked not so long ago with the losses of about $30 million. The list goes on and on.

Encrybit conducted a thorough research of the issue and conducted a survey. According to it:

40% of participants said that security is a major concern.

Hopefully, the representatives of exchanges and wallets take this into consideration and upgrade their security systems and customer service so that the users can be sure their funds are well-protected.

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Unit 42 Found Malware Which Threatens Israeli Fintech And Crypto Companies

Famous cybersecurity company Palo Alto Networks with its subsidiary Unit 42 found a malware which attacks two Israeli-based fintech companies, according to the recent blog post made by the company.

The report says that Unit 42 first bumped into the malware called Cardinal RAT in 2017, since then malicious software has been attacking two Israeli firms that engaged in crypto trading and developing forex. This malware is a Remote Access Trojan (RAT), by using it the culprit can remotely take control of the system.

The first version of Cardinal RAT has been recently updated, the newest version is using various obfuscation techniques to hinder analysis of the underlying code. The code of the most recent malware is:

SHA256 b742162197744a8caeb09f954213a3172ed699f8375f69c40b57b8c219c5e37c

The software itself gathers different information about victims, later remotely changes or updates its settings, gives commands and even uninstalls itself. The malware is so powerful that it can recover passwords and execute or download files without permission, it also cleans cookies from browsers.

The research team stated in the report that malicious malware Cardinal RAT has similar features with a JavaScript-based malware – EVILNUM. It is also used to attack against fintech organizations. Such malware families are very rare, thus developers and workers of fintech companies should be careful.

We remind you

The Hackers of the “51% Attack” on Ethereum Classic Returned Half of the Stolen Funds

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The Cofounder of the Infamous Cryptocurrency Exchange QuadrigaCX Turned Out to Be a Convicted Criminal

The digital assets exchange platform QuadrigaCX has recently become an epicenter of various scandals and controversies. We have already reported earlier about another cofounder of the exchange Gerald Cotten.

Cotten died in the age of 30, leaving his wife and the exchange employees with massive amounts of missing money and the total confusion in the financial situation on the platform, considering the fact that he mixed his own funds with the funds of Quadriga.

However, now the exchange has to deal with an even more serious issue. It is suspected that the second cofounder of QuadrigaCX, Michael Patryn changed his name to escape criminal prosecution.

According to the report made by Bloomberg, Michael Patryn might be the same person as Omar Dhanani, a person suspected of committing multiple offenses in the United States.

Allegedly, Dhanani changed his last and first name in 2003 and 2008 correspondingly, after being convicted in multiple crimes, including credit card scams, identity theft, burglary, larceny, and receiving a 18-month sentence in federal prison.

Michael Patryn denies all the accusations and claims that Omar and him are two completely different people.

However, he failed to provide any decent proof of his activities starting from the early 2000s. Patryn only mentioned that he worked for various crypto-related businesses during that time period.

The Canadian authorities are currently investigating the situation at the exchange QuadrigaCX, regarding both the financial troubles caused by Gerald Cotten and the accusations against Michael Patryn or Oman Dhanani.

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Japan Released New Rules In Crypto Margin Trading

Japan is a progressive country in terms of economy, as well as cryptocurrency regulation. This time Japanese financial authorities have released a new set of rules regarding crypto margin trading.

Margin trading is a strategy that allows a trader to buy more stocks than you can afford on money borrowed from a broker (similar to loan).

The Cabinet of Japan approved draft amendments to Japanese financial instruments and payment services laws on Friday. In fact, they will limit leverage in virtual currency margin trading at two to four times initial deposits. Such restrictions are a common practice in foreign exchange trading.

All crypto exchanges throughout the country are bound to get governmental registration. This type of registration will differ from that adopted in 2017, which was mostly focus on preventing money laundering. However, these rules make exchange operators be monitored in a way similar to securities traders to protect investors.

These crypto exchange operators will be classified into categories to differentiate those who involved in margin trading from those who issued ICO tokens. This will help to distinguish unsavory offerings that are similar to frauds or Ponzi schemes and protect investors from losing their money. The new rules will come into force in April 2020. All margin cryptocurrency exchange operators have to be registered within 18 months of that date.

Such a time limit is set to take down unregistered “quasi-operators” which conduct operations without governmental approval. A senior FSA official said:

“We intend to motivate operators to do what they can to become registered.”

We remind you

Japan’s Biggest Bank Is Not Going To Create Its Own Cryptocurrency: Fake News Is Not Confirmed

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Donald Trump Might Have Increased His Wealth Due to Some Shady Business with Deutsche Bank

Donald Trump has undoubtedly won the title of the most eccentric president of the United States. Given the amount of accusations, convictions and general displeasure, it is a wonder how he has not been impeached yet. However, this new endeavour might put the last bits of his reputation at stake.

The New York Attorney General started an investigation regarding the financial relationship between the Trump Organization and Deutsche Bank. Reportedly, the major German bank has provided over 2 billion dollars in loans to the American president over the years.

The misconduct of Trump

The story begins in 2004, when Trump first encountered Deutsche Bank. The businessmen went to the real estate department and filed for a loan for his 92-story Trump International Hotel and a Trump Tower in Chicago.

At first sight everything seems fine, but it surely isn’t. When asked about the financial situation, Trump claimed to own a much larger sum of money than he actually had back then. Simply speaking, he lied to the bank about his net worth.

Mr. Trump told Deutsche Bank his net worth was about $3 billion, but when bank employees reviewed his finances, they concluded he was worth about $788 million, according to documents produced during a lawsuit Mr. Trump brought against the former New York Times journalist Timothy O’Brien,” is mentioned in the investigation files.

The weird thing is that although the bank officials surely suspected something, they didn’t take time to check and verify the information provided by Trump. Instead of that, they kept loaning him massive amounts of money.

In 2010 Trump received a 100-million-dollar loan from the Deutsche Bank to built a resort in Florida. Experts claim that he deliberately increased his net worth by almost 70% in the application in order to get the money.

In 2014 the current US president tried to purchase the popular football team Buffalo Bills. When the NFL demanded the proof that he would have enough finances to conduct the deal, Trump claimed that he owned almost 9 billion dollars, and this all happened through Deutsche Bank once again.

Right now, the authorities are finally starting to see the whole picture and its scale. The investigation has already started. Faking net worth to get such huge loans might result in big problems for both Trump and Deutsche Bank.

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American Mining Company Riot Blockchain To Launch Crypto Exchange In The USA

According to a SEC filing, U.S.-based Bitcoin mining company Riot Blockchain plans to launch a crypto exchange by the end of July 2019.

Exchange Details and Current Situation

Riot Blockchain has partnered with SynapseFI, a major software company, and invested approx. $250,000 in the project. It has also form a special subsidiary to operate the exchange. The budget of the exchange is expected to be more than $2 million after its launch.

The software company will take care of banking services of the exchange, the provided API will connect Riot Blockchain’s accounts to other American banking institutions. Moreover, SynapseFI will track locations and identities of customers to “prevent fraud and improper use of its RiotX exchange.”

The SEC’s filing reads:

“SynapseFi’s API will enable to Company to know where the user is when accessing RiotX, thereby enabling the Company to prevent a user from Montana, a state where the exchange of digital currencies is permitted, from traveling to neighboring Wyoming, where the exchange of digital currencies is not permitted, and using RiotX in the prohibited jurisdiction.”

The exchange will be available in 48 states (without Hawaii and Wyoming) by December 2019. RiotX has already been provided a license in five states.

Rumours of Launching Before Official Statement

Back in March 2018, there were rumours based on facts that Riot Blockchain planned to launch crypto exchange since the company acquired Logical Brokerage Corp.. The public filing published at the same time stated that the company wanted to investigate futures brokerage operations and details of launching a digital currency exchange.

In November 2018, RiotX “entered into a Master Services Agreement with Shift Markets, Ltd. to provide RiotX with its crypto exchange platform. These services will enable RiotX to further execute its plans to launch a U.S. focused cryptocurrency exchange.

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Winklevoss’ Brothers Said “Crypto Doesn’t Need Rules”, What About Crypto Companies?

Winklevoss twins are one of the most influential crypto personalities in the modern world. They are multi-millionaires with their own exchange – Gemini – and own dollar-pegged Gemini coin. It is no secret that the brothers have supported crypto since the beginning of it, but now they promote crypto regulation which confronts with the idea of crypto as well as with their billboard slogans. What happened?

Crypto Needs Or Doesn’t Need Rules

The twins are known for deconstructing the stereotypes and the myths that surround crypto in the public. They want to change the image of crypto that has been plagued with scams, hacks, frauds. However, their billboard slogan “Crypto Needs Rules” was criticized by Bitcoin users as the main meaning of crypto is to transfer money or digital assets without having to trust anyone.

Source: Bitcoinist

Cameron Winklevoss said that some people wondered why Gemini believes that the crypto revolution needs rules. He responded:

“Crypto doesn’t need rules, but the companies built on top of it do.”

Cameron also cited a part of report regarding to the defunct QuadrigaCX exchange which lost millions of dollars.

In order to prevent cases like QuadrigaCX and Mt.Gox, the latter’s CEO was sentenced to 2 years and six months in prison, the companies that provide custodial services of customers assets should be regulated. Furthermore, Winklevoss pointed out that these cases as well as other incidents could have been preventable if there was a proper management of the company, in particular, “proper rules and thoughtful regulation”.

We remind you

The Gemini Dollar of Winklevoss Brothers Is Officially Approved

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