Extortion groups that send emails threatening companies with DDoS attacks unless paid a certain fee are making a comeback, security firm Radware warned today. From a report: In a security alert sent to its customers and shared with ZDNet this week, Radware said that during the last week of 2020 and the first week of 2021, its customers received a new wave of DDoS extortion emails. Extortionists threatened companies with crippling DDoS attacks unless they got paid between 5 and 10 bitcoins ($150,000 to $300,000).

Radware said that some of the emails it seen were sent by a group that was active over the 2020 summer when the extortionists targeted many financial organizations across the world. Companies that received this group's emails last summer also received new threats over the winter, Radware said. The security firm believes that the rise in the Bitcoin-to-USD price has led to some groups returning to or re-prioritizing DDoS extortion schemes.

Software development services provider Sequoia Holdings said on Thursday its employees can now receive a part of their salary in cryptocurrencies, should they choose to. From a report: Under the new program, employees can elect to defer a portion of their salary into bitcoin, bitcoin cash, or the Ethereum platform's ether, Sequoia Holdings said. Earlier this month, Bitcoin, the world's most popular cryptocurrency, hit a record high of $40,000, rallying more than 900% from a low in March and having only just breached $20,000 in mid-December.

An anonymous reader quotes a report from Ars Technica: Cryptocurrencies could come under renewed regulatory scrutiny over the next four years if Janet Yellen, Joe Biden's pick to lead the Treasury Department, gets her way. During Yellen's Tuesday confirmation hearing before the Senate Finance Committee, Sen. Maggie Hassan (D-N.H.) asked Yellen about the use of cryptocurrency by terrorists and other criminals. "Cryptocurrencies are a particular concern," Yellen responded. "I think many are used -- at least in a transactions sense -- mainly for illicit financing." She said she wanted to "examine ways in which we can curtail their use and make sure that [money laundering] doesn't occur through those channels."
UPDATE: Yellen's written remarks the next day also suggest America "consider the benefits of cryptocurrencies and other digital assets, and the potential they have to improve the efficiency of the financial system."

But they still also add that "At the same time, we know they can be used to finance terrorism, facilitate money laundering, and support malign activities that threaten U.S. national security interests and the integrity of the U.S. and international financial systems."

Massive blackouts and smog have hit cities across Iran. It's a toxic mix as the country, already under economic duress and suffocating U.S. sanctions, simultaneously battles the region's worst coronavirus outbreak. Blackouts are not new in Iran, where an aging and subsidized electricity sector is plagued by alleged mismanagement. But this time, government officials say that bitcoin mining at cryptocurrency farms -- the energy-intensive business of using large collections of computers to verify digital coin transactions -- is partly to blame. From a report: Iran's state-owned electricity firm Tavanir announced Wednesday that it had shut down a large Chinese-Iranian-run cybercurrency center in the southeastern province of Kerman because of its heavy energy consumption. The company reportedly was licensed to operate under a process the government had put in place to regulate the industry. Alongside pointing a finger at legal operations, Iranian officials have specifically singled out illegal cryptocurrency miners as a strain on the electricity grid spurring outages, Mostafa Rajabi Mashhadi, a spokesperson for the electricity industry at Iran's energy ministry, told the IRNA state-run news agency. On Wednesday, Ali Vaezi, a spokesperson for Iranian President Hassan Rouhani, said the government would be investigating cases of unlicensed cryptocurrency farms. But Iranians in the bitcoin industry reject the government's accusations, saying the industry is being blamed for a broader problem. "The miners have nothing to do with the blackouts," Ziya Sadr, a cryptocurrency researcher in Tehran, told The Washington Post. "Mining is a very small percentage of the overall electricity capacity in Iran."

Later this year, cryptocurrency exchange company Gemini is planning to launch a credit card that earns bitcoin rewards based on your purchases. It's based on the work done by Blockrize, a fintech startup which Gemini has acquired for an undisclosed sum. TechCrunch reports: The credit card will work like any other credit card and will be available in the U.S. Customers will earn up to 3% in bitcoin rewards (again, up to 3%). You'll be able to earn other crypto assets as well. Those rewards will be deposited on your Gemini account. This isn't the first time a company is announcing a credit card with bitcoin rewards. BlockFi already announced its own card back in December. Both companies have yet to launch their cards.

As a comparison, BlockFi promises 1.5% rewards on fiat purchases. There's a $200 annual fee, but you get $250 back if you spend at least $3,000 with the card in the first three months. [...] Gemini customers can sign up to the waitlist today. Blockrize has been working on a credit card for some time. While it is now part of Gemini, people who previously signed up to Blockrize's waitlist are still on the waitlist.

After Twitter banned President Trump's account last week, the site and its executives, including Twitter CEO Jack Dorsey, were largely silent in justifying their decision. That changed last night when Dorsey, in a series of tweets, explained that he felt banning Trump's account was the right move for the social network. The Verge reports: "Offline harm as a result of online speech is demonstrably real, and what drives our policy and enforcement above all," he wrote. Dorsey blamed Twitter's failure "to promote healthy conversation," acknowledged that Twitter needs to "look critically at inconsistencies of our policy and enforcement," and said that social platforms needed more transparency around moderation. Then, Dorsey plugged an effort to build a decentralized standard for social media he began in 2019 when he sought to hire five engineers to work on it. That's how, eight tweets into a thread on why his company banned Donald Trump, the CEO of Twitter managed to change the subject to his passion for bitcoin.

Banning the RealDonaldTrump Twitter account had "real and significant ramifications," Dorsey wrote. Dorsey said that the widespread suspension of the president by many platforms challenged the notion that if people didn't like Twitter's rules, they could simply go somewhere else. And though the president can issue a press release or call a press conference whenever he wishes -- or simply go on television -- Dorsey expressed concern that the enforcement actions might "erode a free and open global internet."

And that was when bitcoin came up. Dorsey is also CEO of Square, an internet payment company, that bought $50 million of bitcoin as part of a bet on cryptocurrency. Square has accepted bitcoin since 2014. According to Dorsey, bitcoin provides a model for a decentralized model for social media. Dorsey did not elaborate on how such a network might address Twitter's failures in moderation, creating healthy conversations, or provide for more consistent policy enforcment. "It's important that we acknowledge this is a time of great uncertainty and struggle for so many around the world," Dorsey wrote on Twitter. "Our goal in this moment is to disarm as much as we can, and ensure we are all building towards a greater common understanding, and a more peaceful existence on earth. I believe the internet and global public conversation is our best and most relevant method of achieving this."

An anonymous reader quotes a report from Bloomberg: European Central Bank President Christine Lagarde took aim at Bitcoin's role in facilitating criminal activity, saying the cryptocurrency has been enabling "funny business." "For those who had assumed that it might turn into a currency -- terribly sorry, but this is an asset and it's a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity," Lagarde said in an online event organized by Reuters.

The remarks, made in a conversation largely focused on the euro-area's economic outlook, show top policymakers are taking notice as a speculative fever sweeps cryptocurrency markets. Bitcoin prices have more than doubled since November and topped a record $41,000 earlier this month. Concerns over money laundering and the ability of financial firms to know the identities of their clients have been at the forefront of the cryptocurrency debate. While critics say that instruments like Bitcoin make the illicit transfer of funds easier, crypto advocates say the network of digital ledgers known as the blockchain allows money to be traced more easily than cash and can actually help law enforcement.

An anonymous reader quotes a report from The Associated Press: German prosecutors said Tuesday that they have taken down what they believe was the biggest illegal marketplace on the darknet and arrested its suspected operator. The site, known as DarkMarket, was shut down on Monday, prosecutors in the southwestern city of Koblenz said. All sorts of drugs, forged money, stolen or forged credit cards, anonymous mobile phone SIM cards and malware were among the things offered for sale there, they added. German investigators were assisted in their months-long probe by U.S. authorities and by Australian, British, Danish, Swiss, Ukrainian and Moldovan police.

The marketplace had nearly 500,000 users and more than 2,400 vendors, prosecutors said. They added that it processed more than 320,000 transactions, and Bitcoin and Monero cryptocurrency to the value of more than 140 million euros ($170 million) were exchanged. The suspected operator, a 34-year-old Australian man, was arrested near the German-Danish border. Prosecutors said a judge has ordered him held in custody pending possible formal charges, and he hasn't given any information to investigators. More than 20 servers in Moldova and Ukraine were seized, German prosecutors said. They hope to find information on those servers about other participants in the marketplace. The move against DarkMarket originated from an investigation of a data processing center installed in a former NATO bunker in southwestern Germany that hosted sites dealing in drugs and other illegal activities.

Stefan Thomas, a German-born programmer living in San Francisco, has two guesses left to figure out a password that is worth, as of this week, about $220 million. From a report: The password will let him unlock a small hard drive, known as an IronKey, which contains the private keys to a digital wallet that holds 7,002 Bitcoin. While the price of Bitcoin dropped sharply on Monday, it is still up more than 50 percent from just a month ago when it passed its previous all-time high around $20,000. The problem is that Mr. Thomas years ago lost the paper where he wrote down the password for his IronKey, which gives users 10 guesses before it seizes up and encrypts its contents forever. He has since tried eight of his most commonly used password formulations -- to no avail. "I would just lay in bed and think about it," Mr. Thomas said. "Then I would go to the computer with some new strategy, and it wouldn't work, and I would be desperate again."

Bitcoin, which has been on an extraordinary and volatile eight-month run, has made a lot of its holders very rich in a short period of time, even as the coronavirus pandemic has ravaged the world economy. But the cryptocurrency's unusual nature has also meant that there are many people who are locked out of their Bitcoin fortunes as a result of lost or forgotten keys. They have been forced to watch, helpless, as the price has risen and fallen dramatically, unable to cash in on their digital wealth. Of the existing 18.5 million Bitcoin, around 20 percent -- currently worth around $140 billion -- appear to be in lost or otherwise stranded wallets, according to the cryptocurrency data firm Chainalysis. Wallet Recovery Services, a business that helps find lost digital keys, said it has gotten 70 requests a day from people who want help recovering their riches, three times the number of a month ago. Bitcoin owners who are locked out of their wallets speak of endless days and nights of frustration as they have tried to access their fortunes. Many have owned the coins since Bitcoin's early days a decade ago, when no one had confidence that the tokens would be worth anything.

Bitcoin and other digital coins tanked on Monday, wiping some $200 billion off the cryptocurrency market. CNBC reports: The market capitalization or value of the cryptocurrency market was $880 billion at 9:20 a.m. ET, down from $1.08 trillion a day earlier, according to Coinmarketcap. Bitcoin, the largest cryptocurrency, fell over 12% from a day earlier to $32,576, according to Coin Metrics data. It earlier sank to an intraday low of $30,863. Ether, the second-largest cryptocurrency, was down 23% to $1,005. It briefly tumbled below $1,000, hitting an intraday low of $945. The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 300% in the last 12 months and last week hit an all-time high just below $42,000.

Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital, said the pullback in bitcoin could be a buying opportunity for new investors. "This short term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year's end," Chu told CNBC. Last week, Social Capital's Chamath Palihapitiya said bitcoin could go above six digits. "It's probably going to $100,000, then $150,000, then $200,000," Palihapitiya told CNBC's Halftime Report. "In what period? I don't know. [Maybe] five or 10 years, but it's going there."

A hacker took control of people's internet-connected chastity cages and demanded a ransom to be paid in Bitcoin to unlock it. From a report: "Your cock is mine now," the hacker told one of the victims, according to a screenshot of the conversation obtained by a security researcher that goes by the name Smelly and is the founder of vx-underground, a website that collects malware samples. In October of last year, security researchers found that the manufacturer of an Internet of Things chastity cage -- a sex toy that users put around their penis to prevent erections that is used in the BDSM community and can be unlocked remotely -- had left an API exposed, giving malicious hackers a chance to take control of the devices. That's exactly what happened, according to a security researcher who obtained screenshots of conversations between the hacker and several victims, and according to victims interviewed by Motherboard. A victim who asked to be identified only as Robert said that he received a message from a hacker demanding a payment of 0.02 Bitcoin (around $750 today) to unlock the device. He realized his cage was definitely "locked," and he "could not gain access to it."

The world's cryptocurrency is now worth more than $1 trillion, with bitcoin accounting for a large majority of the value. The price of the oldest virtual currency has risen above $40,000, pushing the value of all bitcoins in circulation up to more than $700 billion. From a report: Ether, the cryptocurrency of the Ethereum network, is now worth more than $140 billion. Then there's a long list of less valuable cryptocurrencies, including Tether at $22 billion, Litecoin at $11 billion, and Bitcoin Cash at $8 billion. Bitcoin creator Satoshi Nakamoto is believed to own around 1 million bitcoins. Most of these were mined in the first two years of Bitcoin's existence when there was little competition. If he still has copies of the private keys that control these coins, that would give him a net worth of nearly $40 billion -- enough to make him among the 40 wealthiest people on the planet. Nakamoto has never publicly revealed his true identity and has not communicated publicly since 2014.

Bitcoin surged to $40,000 for the first time, doubling in value in less than a month and pushing the total market value of cryptocurrencies beyond $1 trillion. From a report: Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year, data from tracker CoinGecko shows. Strategists have cited demand from speculative retail traders, trend-following quant funds, the rich and even institutional investors as among the reasons for the surge. Bitcoin rose as much as 11% on Thursday to $40,065 and has more than quadrupled in the past year, according to a composite of prices compiled by Bloomberg. It accounts for about two-thirds of cryptocurrency market value, followed by Ether at about 13%, according to CoinGecko data.

An anonymous reader quotes a report from ZDNet: Security firm Intezer Labs said it discovered a covert year-long malware operation where cybercriminals created fake cryptocurrency apps in order to trick users into installing a new strain of malware on their systems, with the obvious end goal of stealing victims' funds. The campaign was discovered last month in December 2020, but researchers said they believe the group began spreading their malware as early as January 8, 2020. Intezer Labs said the hackers relied on three cryptocurrency-related apps for their scheme. The fake apps were named Jamm, eTrade/Kintum, and DaoPoker, and were hosted on dedicated websites at jamm[.]to, kintum[.]io, and daopker[.]com, respectively.

The first two apps claimed to provide a simple platform to trade cryptocurrency, while the third was a cryptocurrency poker app. All three apps came in versions for Windows, Mac, and Linux, and were built on top of Electron, an app-building framework. But Intezer researchers say the apps also came with a little surprise in the form of a new malware strain that was hidden inside, which the company's researchers named ElectroRAT. Intezer researchers believe the malware was being used to collect cryptocurrency wallet keys and then drain victims' accounts. To spread the trojanized applications, Intezer says the hackers posted ads for the three apps and their websites on niche cryptocurrency forums, or they used social media accounts. Because of a quirk in the malware's design, which retrieved the address of its command and control server from a Pastebin URL, Intezer believes this operation infected around 6,500 users -- the total number of times the Pastebin URLs were accessed.

Telegram has no plans to fix a vulnerability that makes it easy for hackers to find your precise location. The problem stems from a feature called People Nearby, which is disabled by default, but allows users who are geographically close to you to connect. Ars Technica reports: Independent researcher Ahmed Hassan, however, has shown how the feature can be abused to divulge exactly where you are. Using readily available software and a rooted Android device, he's able to spoof the location his device reports to Telegram servers. By using just three different locations and measuring the corresponding distance reported by People Nearby, he is able to pinpoint a user's precise location. Telegram lets users create local groups within a geographical area. Hassan said that scammers often spoof their location to crash such groups and then peddle fake bitcoin investments, hacking tools, stolen social security numbers, and other scams.

Telegram lets users create local groups within a geographical area. Hassan said that scammers often spoof their location to crash such groups and then peddle fake bitcoin investments, hacking tools, stolen social security numbers, and other scams. A proof-of-concept video the researcher sent to Telegram showed how he could discern the address of a People Nearby user when he used a free GPS spoofing app to make his phone report just three different locations. He then drew a circle around each of the three locations with a radius of the distance reported by Telegram. The user's precise location was where all three intersected.

In a blog post, Hassan included an email from Telegram in response to the report he had sent them. It noted that People Nearby isn't enabled by default and that "it's expected that determining the exact location is possible under certain conditions." People Nearby poses the biggest threat to people using Android devices, since they report a user's location with enough granularity to make Hassan's attack work. The recently released iOS 14, by contrast, allows users to divulge only a rough approximation of their location. People who use this feature aren't as exposed. Fixing the problem -- or at least making it much harder to exploit it -- wouldn't be hard from a technical perspective. Rounding locations to the nearest mile and adding some random bits generally suffices. When the Tinder app had a similar disclosure vulnerability, developers used this kind of technique to fix it.

An anonymous reader quotes a report from CoinDesk: Ukraine's government has chosen the Stellar blockchain network as a platform to build a central bank digital currency (CBDC). Announced Monday, the Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) signed a Memorandum of Understanding to build out a "virtual assets ecosystem and national digital currency of Ukraine." The National Bank of Ukraine has been researching the possibility of CBDC implementation since 2017, and the Stellar partnership will now be the basis of its virtual currency development, according to Digital Transformation and IT Deputy Minister Oleksandr Bornyakov.

"The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine," Bornyakov said in a statement. "We believe our cooperation with the Stellar Development Foundation will contribute to development of the virtual asset industry and its integration into the global financial ecosystem." Stellar Development Foundation CEO Denelle Dixon said the partnership with Ukraine's government and other stakeholders to digitize the hryvnia will officially launch this month. "We've been in conversations with governments and institutions all over the world about the key considerations for issuing CBDCs. It's important to remember many, if not all, of these organizations weren't designed to be technology companies and that they have many audiences that they are supporting," Dixon said via an email. "That makes a public-private partnership so essential to getting this right."

An anonymous reader quotes a report from Ars Technica: Ether, the native currency of the Ethereum network and the second most valuable cryptocurrency, has soared above $1,000 for the first time since 2018. The rise is part of a broad cryptocurrency boom inspired by the continued rise in bitcoin's price. Last month, bitcoin rose above $20,000, smashing its previous all-time record of around $19,500. Since then, it has continued to rise, breaking above $30,000 in recent days. As I write this, one bitcoin is worth around $31,000.

Cryptocurrencies tend to rise and fall together. So it's not surprising that other virtual currencies are also on the rise. Ether has seen dramatic gains over the last year. At the start of 2020, one ether was worth around $140. The price rose to around $600 in late November, the same month bitcoin started flirting with a new record. In the last few days, ether has been on a tear, rising from $600 on Christmas Day to more than $1,000 today. It isn't just ether. Litecoin, one of the oldest "altcoins," has seen its value triple over the last three months to $150. Bitcoin Cash, a variant of bitcoin that's optimized for high transaction volumes, has nearly doubled over the same period and is now worth $400. Polkadot and Tether have also seen continued growth in recent months.

The one exception is XRP, the currency of the Ripple network. "Just before Christmas, the Securities and Exchange Commission charged two Ripple executives with selling unregistered securities," reports Ars. "The announcement has caused some US cryptocurrency exchanges to stop offering trades in XRP. XRP has lost two-thirds of its value since a November peak." Coinbase, the largest cryptocurrency exchange in the U.S., also suspended trading in XRP.

Last Sunday we reported Bitcoin's price had surged 50% in the previous month.

In the week since it's surged another 24.8%.

As Bitcoin celebrates its 12th anniversary, a Forbes columnist writes that Bitcoin "soared to $34,000 yesterday — but here's why Warren Buffett will never own Bitcoin." Buffett has called Bitcoin, among other names, "rat poison squared" and has said he won't ever buy the cryptocurrency. "I don't have any cryptocurrency and I never will," Buffett told CNBC in February, when Bitcoin was trading at about $10,000. Here are 3 reasons why Buffett will never own Bitcoin, no matter how high the price of Bitcoin soars:

Buffett believes that Bitcoin has no underlying value. As a value investor, Buffett invests in companies that are undervalued, produce stable and recurring cash flow and have the ability to increase in book value. To Buffett, Bitcoin doesn't produce earnings or dividends. Rather, the value of Bitcoin is simply what one person is willing to pay for it. In this regard, Bitcoin is no different than the tulip craze of 1637. Therefore, Buffett believes that Bitcoin has no inherent value...

While all investing involves some degree of speculation, Buffett's background is in insurance and risk mitigation. Buffett doesn't invest in "high fliers" — that's not his game. His game is "buy and hold" — forever. He invests in companies that grow over time, steadily and consistently.
And the third reason? Warren Buffett "only invests in things he understands."

"He prefers to invest in stable consumer goods companies like Coca-Cola and financial services companies like American Express."

The Nordic region once again has become a lucrative place to mine crypto-currencies, thanks to a plunge in electricity prices. From a report: The wettest weather in at least 20 years boosted production from hydro-electric plants, leaving Sweden and Norway with some of the lowest power prices in the world. The resulting glut in the most important raw material for making the virtual coins coincided with a year when the price of Bitcoin almost quadrupled. The currencies are made in giant computer farms that process complex algorithms in halls as big as airport hangars. That makes electricity one of the key inputs, with operations sometimes consuming as much power as that used by 70,000 households. The current market dynamics give big miners alternatives to places where Bitcoin are usually created such as China, Kazakhstan and Canada.

Their luck follows several years of poor margins from higher electricity costs and lower prices for most virtual currencies. Many of the the miners that were attracted to the region during the last rally in 2017 have left. "The ones that stayed through the difficult period, like us, are quite happy now," said Philip Salter, head of operations at Hong Kong-based Genesis Mining, which operates a data center in Boden, Sweden. "There were times we were not making any profit at all, but during the last year our profitability has more than tripled." Unusually wet weather along with mild temperatures boosted hydro reservoirs across Nordic region to the highest level in more than 20 years, leaving the area awash in generation capacity. The result is power prices close to zero for extended periods. Average prices this year are about a third of those in Germany, Europe's biggest power market.

The price of Bitcoin increased 50% — in the last four weeks.

Now priced at $26,579, "Bitcoin is crashing — upward," quips CNN Business: The digital currency has a market value north of $500 billion. Think Bitcoin is just a fad? It's worth more than Visa or Mastercard. Or Walmart...

Its rapid rise has been remarkable — or insane, depending on your appetite for risk. But there's some logic to the run-up: Investors are pouring money into bitcoin and other cryptocurrencies during the Covid-19 pandemic as the Federal Reserve sent interest rates near zero (and expects to keep them there for several more years), severely weakening the US dollar. That makes bitcoin, comparatively, an attractive currency. There's a set limit to the number of bitcoins on the planet, and investors believe that once the supply runs out, the digital coin's value can only increase.

Also aiding in bitcoin's soaring valuation: Big, name-brand investors are stockpiling it, and huge consumer companies are embracing it. That's adding a dose of validity and appeal to cryptocurrency for mainstream investors. For example, a top executive at BlackRock [the world's largest asset manager, with $7.81 trillion in assets under management] recently said the cryptocurrency can replace gold, and Square and PayPal have both embraced bitcoin.
The article also includes some advice from Anthony Scaramucci, founder and managing partner of the global investment firm Skybridge Capital (who was also, for 10 days, White House Communications Director): Scaramucci said people have begun to accept bitcoin — and since it appears in so few portfolios, it has plenty of room to grow. Still, bitcoin is a volatile asset and will be a risky holding if you invest in it. "This thing has a tendency to crash up," he said. "It is due for a correction, and these corrections can be violent." Scaramucci said bitcoin could suddenly tumble 20% to 50%. "You have to be very cautious," he added.

But he also highlighted bitcoin's staying power over the course of the past decade: If you took $1 and put 99 cents of it in cash and a penny in bitcoin, that investment strategy would have outperformed $1 invested in the S&P 500 over the last 10 years, he noted.

"Bitcoin's best days are ahead of it, but it's going to be volatile and I think people need to be prepared for it," Scaramucci told CNN Business.