Cryptocurrency brokerage Coinbase said Thursday that it has filed a draft registration statement with the Securities and Exchange Commission, paving the way for plans for an eventual initial public offering. CNN reports: The announcement comes as interest in bitcoin and other cryptocurrencies has soared during the coronavirus pandemic. Investors have found such currencies attractive as the US dollar weakens. Bitcoin has been smashing its own price records and recently surpassed the symbolic $20,000-a-coin milestone. It has since continued to climb higher, and was last trading just shy of $23,000, according to data provider Refinitiv.

Coinbase was launched in 2012, according to its website, and "more than 35 million people in over 100 countries trust Coinbase to buy, sell, store, use and earn cryptocurrency." The company indicates it has more than $25 billion in assets on the platform and more than $320 billion in total volume traded.

The socialist regime once cracked down on bitcoin miners. Now it's mining the digital asset itself. From a report: At a military base outside Caracas, Venezuela, state video footage shows officers in green fatigues cut a blue ribbon donned with a cluster of glossy balloons. Then, the men pry open the doors of a narrow, dimly-lit bunker. But the balloons weren't inaugurating a new weapons factory or training facility. They marked the opening of a new bitcoin mining farm. Venezuela's President Nicolas Maduro needs cash to sustain his grip on power after muddling through one of the worst economic implosions seen in recent modern history in the Western Hemisphere. It appears that Maduro's last ditch effort to buoy Venezuela's shriveling economy is to dig deep for this digital asset and sell it for hard cash.

"In a strategic alliance with private capital, the Bolivarian army inaugurated the first center for the production of digital assets at the Fuerte Tiuna facilities," said a spokesperson in footage published by state television in late November. Venezuelan General Domingo Antonio Hernandez Larez details the project in a cramped conference room, then he and other officers fondle a few S9 AntMiners, a type of specialized computer used to mine bitcoin, the volatile cryptocurrency whose price is scraping all-time-highs of just under $20,000 per coin. "This center of digital asset production will ensure self-financing sufficiency within the military," the Venezuelan state TV official explains. "These mining activities will be key for increasing revenues for the country."

Bitcoin breached the $20,000 level for the first time in history Wednesday, as crypto enthusiasts pointed to increased demand from institutional investors for the red-hot digital currency. From a report: The world's most-valuable virtual currency traded 4% higher to a price of around $20,327, according to market data from Coin Metrics, taking its year-to-date gains to more than 180%. Bitcoin has been on a tear this year. Analysts say it's gotten a boost from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller moving their own assets into the cryptocurrency, while tech firms such as Square and MicroStrategy have also sought to flock into bitcoin.

An anonymous Slashdot reader writes: For the past year, hackers have been breaking into MySQL databases, downloading tables, deleting the originals, and leaving ransom notes behind, telling server owners to contact the attackers to get their data back. If database owners don't respond and ransom their data back in nine days, the databases are then put up on auction on a dark web portal.
"More than 85,000 MySQL databases are currently on sale on a dark web portal for a price of only $550/database," reports ZDNet: This suggests that both the DB intrusions and the ransom/auction web pages are automated and that attackers don't analyze the hacked databases for data that could contain a higher concentration of personal or financial information. Signs of these ransom attacks have been piling up over the course of 2020, with the number of complaints from server owners finding the ransom note inside their databases popping up on Reddit, the MySQL forums, tech support forums, Medium posts, and private blogs.

Bitcoin is back. Again. From a report: Nearly three years after it went on a hair-bending rise and hit a peak of $19,783, the price of a single Bitcoin rose above that for the first time on Monday, according to the data and news provider CoinDesk. The cryptocurrency has soared since March, after sinking below $4,000 at the outset of the coronavirus pandemic. Bitcoin's latest climb is different from its last spike in 2017, which was driven largely by investors in Asia who had just learned about cryptocurrencies. Back then, the digital token soon lost momentum as people questioned what it could do other than allow for easy online speculating and drug and ransom payments.

While those questions remain, Bitcoin is now being fueled by a less speculative fever. Buyers -- led by American investors, including companies and other traditional investors -- are treating Bitcoin as an alternative asset, somewhat like gold, according to an analysis from the data firm Chainalysis. Rather than quickly trading in and out of it, more investors are using Bitcoin as a place to park part of their investment portfolios outside the influence of governments and the traditional financial system, Chainalysis and other industry firms said. "It's a very different set of people who are buying Bitcoin recently," said Philip Gradwell, the chief economist at Chainalysis, which analyzes the movement of cryptocurrencies. "They are doing it in steadier amounts over sustained periods of time, and they are taking it off exchanges and holding it as an investment."

In an eloquent essay, Scottish-American historian Niall Ferguson argues that "We are living through a monetary revolution so multifaceted that few of us comprehend its full extent." The technological transformation of the internet is driving this revolution. The pandemic of 2020 has accelerated it...

Covid-19 has been good for Bitcoin and for cryptocurrency generally. First, the pandemic accelerated our advance into a more digital word: What might have taken 10 years has been achieved in 10 months. People who had never before risked an online transaction were forced to try, for the simple reason that banks were closed. Second, and as a result, the pandemic significantly increased our exposure to financial surveillance as well as financial fraud. Both these trends have been good for Bitcoin....

What is happening is that Bitcoin is gradually being adopted not so much as means of payment but as a store of value. Not only high-net-worth individuals but also tech companies are investing. In July, Michael Saylor, the billionaire founder of MicroStrategy, directed his company to hold part of its cash reserves in alternative assets. By September, MicroStrategy's corporate treasury had purchased bitcoins worth $425 million. Square, the San Francisco-based payments company, bought bitcoins worth $50 million last month. PayPal just announced that American users can buy, hold and sell bitcoins in their PayPal wallets. This process of adoption has much further to run...

Some economists, such as my friend Ken Rogoff, welcome the demise of cash because it will make the management of monetary policy easier and organized crime harder. But it will be a fundamentally different world when all our payments are recorded, centrally stored, and scrutinized by artificial intelligence — regardless of whether it is Amazon's Jeff Bezos or China's Xi Jinping who can access our data... Rather than seeking to create a Chinese-style digital dollar, Joe Biden's nascent administration should recognize the benefits of integrating Bitcoin into the U.S. financial system — which, after all, was originally designed to be less centralized and more respectful of individual privacy than the systems of less-free societies.

Bitcoin investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year. From a report: It's a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold. Since January, bitcoin has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers. Bitcoin is within sight of its all-time peak of just under $20,000 hit in December 2017. It debuted in 2011 at zero and was last trading at $18,415. Going from $18,000 to $100,000 in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said. "I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal."

An anonymous reader shares a report: Satoshi didn't leave much behind when he decided to leave the scene for good back in April, 2011. But, he did leave enough for us to conduct a thorough research into his whereabouts when he was working on Bitcoin. To conduct this research, we gathered data from the following:
Satoshi's Bitcointalk account (539 available posts)
His 34 emails on the cryptography and Bitcoin mailing lists
His 169 commits on SourceForge
The metadata from Bitcoin whitepaper versions from 2008 (PDF) and 2009 (PDF)
The Genesis block
Various Wayback Machine archives

The data-driven part of the research focuses on timestamps from Satoshi's Bitcointalk posts, SourceForge commits, and emails, which represent a total of 742 activity instances from 206 days (not consecutive). The timestamp data starts from October 31, 2008, when he first announced Bitcoin on the cryptography mailing list, and ends on December 13, 2010, when he sent his last email that is known to be UTC timestamped. Using that data we compiled scatter charts in different suspect time zones to see when he was active and when he was not. We then used other data we gathered to further confirm the most likely location he called home. Common suspect locations are the UK (GMT), US Eastern (EST), US Pacific (PST), Japan (JST), and Australia (AEST). The last two were easy to debunk, but the first three prospects needed further examination.

"Bitcoin is now trading near $18,000, up almost 100% in six months," notes Bloomberg columnist Lionel Laurent, "and it's flirting with an all-time high reached in 2017 (which, given it was followed by an ugly crash, faithful Bitcoiners would rather forget)..." .

But what exacty does that mean? He challenges the notion that Bitcoin is the new wealth-protecting investment like gold, asking "is this really being driven by people seeking protection from a more uncertain world...?"

If anything, Bitcoin looks much more like the stock market on steroids than it does a digital version of gold, which has barely budged since the end of October as confidence about a Covid cure has gradually improved. You can see why hedge fund skeptics like Ray Dalio are dubious of Bitcoin's charms. The cryptocurrency's recent above-average correlation with equities is fine when everything's going up, but not in times of stress: In mid-March, for example, a flight to safety triggered by Covid cut Bitcoin's price in half. A recent Kansas City Fed study comparing bonds, gold and Bitcoin between 1995 and Feb. 2020 found Treasuries behaved "consistently" as a safe haven, gold "occasionally" and Bitcoin "never."

Behind the talk of digital gold is the reality of an erratic, still-speculative asset with the potential for big price swings...

While digital payment firms such as PayPal Holdings Inc. and Square Inc. have launched Bitcoin applications, this price jump is not about people buying cappuccinos. Data from Chainalysis estimates merchants made up only about 1% of crypto activity in North America between mid-2019 and mid-2020, while exchanges accounted for almost 90%... Crypto is still a heady bet on life-changing wealth, not a disruptor of how normal people use money.

Reader shanen shares a report (and offers this commentary): When the open source concept emerged in the '90s, it was conceived as a bold new form of communal labor: digital barn raisings. If you made your code open source, dozens or even hundreds of programmers would chip in to improve it. Many hands would make light work. Everyone would feel ownership. Now, it's true that open source has, overall, been a wild success. Every startup, when creating its own software services or products, relies on open source software from folks like Jacob Thornton: open source web-server code, open source neural-net code. But, with the exception of some big projects -- like Linux -- the labor involved isn't particularly communal. Most are like Bootstrap, where the majority of the work landed on a tiny team of people. Recently, Nadia Eghbal -- the head of writer experience at the email newsletter platform Substack -- published Working in Public, a fascinating book for which she spoke to hundreds of open source coders. She pinpointed the change I'm describing here. No matter how hard the programmers worked, most "still felt underwater in some shape or form," Eghbal told me.

Why didn't the barn-raising model pan out? As Eghbal notes, it's partly that the random folks who pitch in make only very small contributions, like fixing a bug. Making and remaking code requires a lot of high-level synthesis -- which, as it turns out, is hard to break into little pieces. It lives best in the heads of a small number of people. Yet those poor top-level coders still need to respond to the smaller contributions (to say nothing of requests for help or reams of abuse). Their burdens, Eghbal realized, felt like those of YouTubers or Instagram influencers who feel overwhelmed by their ardent fan bases -- but without the huge, ad-based remuneration. Sometimes open source coders simply walk away: Let someone else deal with this crap. Studies suggest that about 9.5 percent of all open source code is abandoned, and a quarter is probably close to being so. This can be dangerous: If code isn't regularly updated, it risks causing havoc if someone later relies on it. Worse, abandoned code can be hijacked for ill use. Two years ago, the pseudonymous coder right9ctrl took over a piece of open source code that was used by bitcoin firms -- and then rewrote it to try to steal cryptocurrency.

An anonymous reader quotes a report from Business Insider: Softbank CEO Masayoshi Son said that he "doesn't understand" bitcoin, and that he spent a good chunk of his time tracking its movement while invested in the cryptocurrency. Son, who made the remarks at The New York Times DealBook conference, said he was told by a friend to invest "1% of his personal assets" into bitcoin, meaning he invested "about 200 million." After investing the money, Son said he would spend about five minutes each day looking at bitcoin prices fluctuate.

While speaking with host Andrew Ross Sorkin, Son said he found the investment to be "distracting [his] own focus on [his] own business." Son quickly grew tired of checking the price of bitcoin every day. This reoccurring distraction from checking prices every day led Son to sell his stake in bitcoin, and he estimates that he lost around $50 million. According to a Wall Street Journal report, Son lost closer to $130 million when he sold his stake in 2018, citing sources who are familiar with the matter. "I feel so much better," Son said of exiting the cryptocurrency. "I think digital currency will be useful," Son added. "But I don't know what digital currency, what structure, and so on."

Three years ago, Bitcoin's historic surge dominated Thanksgiving dinner conversations. This year, the cryptocurrency is in the midst of another notable rally and yet almost no one's talking about it. From a report: How fevered has Bitcoin's latest leg higher been? With the coin trading around $16,300, it's been more expensive in only eight other instances in the past decade, Bloomberg data show. Almost all of those came during the 1,375% surge in 2017 that saw it reach close to $20,000 before a spectacular plunge wiped out 70% over the next year. The world's largest cryptocurrency by market value has been through a boom and bust and a second boom since its frenzied heydays in 2017. A lot has changed in the years since, and crypto enthusiasts argue digital coins have gone through a maturing process. But the mania that surrounded digital currencies back then is largely absent, despite Bitcoin being about 15% shy of its vaunted record highs. "The fascination with it has worn off. You have the hardcore 'I'm a cryptocurrency investor' group but it hasn't really expanded because it's been so volatile, there have been so many questions around security and what regulations might do," said Kathy Jones, chief fixed income strategist for Schwab Center for Financial Research. "The number of questions I get on it now is a fraction of what I got a couple of years ago when it was really hot."

It was teased last month, and now it's official: PayPal is bringing its newly-announced support for cryptocurrency to all US accounts. Engadget reports: PayPal says all eligible users can start buying, selling and holding bitcoin, litecoin, ethereum and bitcoin cash. Beginning next year, PayPal also plans to bring cryptocurrency into Venmo and will allow users to pay merchants with their cryptocurrency holdings (the digital currency will be converted to fiat currency). The company hasn't detailed its plans to make cryptocurrency trading available in other countries, but says it will come to "select international markets in the first half of 2021."

A former Microsoft software engineer from Ukraine has been sentenced to nine years in prison for stealing more than $10 million in store credit from Microsoft's online store. Ars Technica reports: From 2016 to 2018, Volodymyr Kvashuk worked for Microsoft as a tester, placing mock online orders to make sure everything was working smoothly. The software automatically prevented shipment of physical products to testers like Kvashuk. But in a crucial oversight, it didn't block the purchase of virtual gift cards. So the 26-year-old Kvashuk discovered that he could use his test account to buy real store credit and then use the credit to buy real products.

At first, Kvashuk bought an Office subscription and a couple of graphics cards. But when no one objected to those small purchases, he grew much bolder. In late 2017 and early 2018, he stole millions of dollars worth of Microsoft store credit and resold it online for bitcoin, which he then cashed out using Coinbase. US prosecutors say he netted at least $2.8 million, which he used to buy a $160,000 Tesla and a $1.6 million waterfront home (his proceeds were less than the value of the stolen credit because he had to sell at a steep discount).

Kvashuk made little effort to cover his tracks for his earliest purchases. But as his thefts got bigger, he took more precautions. He used test accounts that had been created by colleagues for later thefts. This was easy to do because the testers kept track of test account credentials in a shared online document. He used throwaway email addresses and began using a virtual private networking service. Before cashing out the bitcoins, he sent them to a mixing service in an attempt to hide their origins. Kvashuk reported the bitcoin windfall to the IRS but claimed the bitcoins had been a gift from his father.

A billion dollars worth of bitcoins linked to the shuttered darknet market Silk Road has changed hands for the first time in seven years, prompting renewed speculation about the fate of the illicit fortune. The Guardian reports: Almost 70,000 bitcoins stored in the account which, like all bitcoin wallets, is visible to the public, had lain untouched since April 2013. The website was shut down by an FBI raid six months after they were deposited, and they have not moved since. Late on Tuesday night, however, the full amount less a $12 transaction fee was transferred to a new bitcoin address, records show.

"Through blockchain analysis we can determine that these funds likely originated from the Silk Road," said Tom Robinson, chief scientist at the cryptocurrency analysts Elliptic. "They left the Silk Road's wallet back on 6 May 2012 when they were worth around $350,000 and then remained dormant for nearly a year, before being moved ... in April 2013." From there, the funds have lain dormant. After the marketplace was shut down in late 2013, its founder and boss, 36-year-old San Franciscan Ross Ulbricht, was sentenced to a double life sentence plus 40 years without possibility of parole. The FBI managed to seize 174,000 bitcoins, then worth about $100m, but an estimated 450,000 earned by the marketplace remain unaccounted for.

Robinson says it is unclear who moved the money. "The movement of these bitcoins today, now worth around $955 million, may represent Ulbricht or a Silk Road vendor moving their funds," he said. "However, it seems unlikely that Ulbricht would be able to conduct a bitcoin transaction from prison." One possibility is that an individual or group has managed to "crack" the wallet, effectively guessing its password and stealing the funds. A file that some claimed was an encrypted bitcoin wallet containing the keys to the funds has been circulated in cryptocurrency communities for the past year, and -- if it is what it was claimed to be -- then a combination of brute computing power and good luck could have successfully decrypted the wallet.

Cointelegraph reports: While many children dressed as ghosts, goblins, and witches last night may have been disappointed to find an inedible thin piece of cardboard left out in a goodie bag, a lucky few recognized the treat as a Bitcoin prize.

According to an October 31 tweet from Brad Mills, the crypto user filled a Halloween candy box with more than just chocolates and sweets — he also added $200 in Bitcoin (BTC) cards. Mills posted a video of him adding the two gift cards, each worth roughly 0.007 BTC following the coin's rise to $14,000, and filmed the reactions of trick or treaters in his Canadian neighborhood.

One boy in a white costume was the first to meticulously dig through the box before saying to his group of friends, "I just got a $100 Bitcoin gift card!"

"Many patients of a large psychotherapy clinic in Finland have been contacted individually by a blackmailer, after their data was stolen," reports the BBC: The data appears to have included personal identification records and notes about what was discussed in therapy sessions.

Vastaamo is a nationwide practice with about 20 branches and thousands of patients. The clinic has advised those affected to contact the police. It said it believed the data had been stolen in November 2018, with a further potential breach in March 2019... About 300 records have already been published on the dark web, according to the Associated Press news agency.

On its website, the clinic calls the attack "a great crisis". It has set up a helpline and is offering all victims one free therapy session, the details of which will not be recorded.
According to the article, the blackmailer claims Vastaamo refused to pay the 40 bitcoin ransom — so they are instead blackmailing individual patients.

And one patient even complained that while his therapist took notes in a physical notebook, "he had not been told these would be uploaded to a server."

PayPal has partnered with cryptocurrency company Paxos to launch a new service. PayPal users in the U.S. will soon be able to buy, hold and sell cryptocurrencies. More countries are coming soon. From a report: PayPal plans to support Bitcoin, Ethereum, Bitcoin Cash and Litecoin at first. You'll be able to connect to your PayPal account to buy and sell cryptocurrencies. Behind the scenes, Paxos takes care of trading and custody. In early 2021, PayPal wants to let you use your crypto assets as a funding source for your PayPal purchases. This could be a good way to use cryptocurrencies for everyday purchases without having to convert cryptocurrencies on an exchange first. There are 26 million merchants that offer PayPal around the world. For those merchants, customers paying in crypto won't have any impact. Everything will be converted to fiat currency when a transaction is settled. As part of today's move, PayPal has been granted a conditional BitLicense by the New York State Department of Financial Service. It should be able to launch its crypto service in partnership with Paxos in New York.

A hacking group is donating stolen money to charity in what is seen as a mysterious first for cyber-crime that's puzzling experts. smooth wombat writes: Darkside hackers claim to have extorted millions of dollars from companies, but say they now want to "make the world a better place." In a post on the dark web, the gang posted receipts for $10,000 in Bitcoin donations to two charities. One of them, Children International, says it will not be keeping the money. The move is being seen as a strange and troubling development, both morally and legally. In the blog post on 13 October, the hackers claim they only target large profitable companies with their ransomware attacks. The attacks hold organisations' IT systems hostage until a ransom is paid. They wrote: "We think that it's fair that some of the money the companies have paid will go to charity. No matter how bad you think our work is, we are pleased to know that we helped changed someone's life. Today we sended (sic) the first donations." The cyber-criminals posted the donation along with tax receipts they received in exchange for the 0.88 Bitcoin they had sent to two charities, The Water Project and Children International.

An anonymous reader quotes a report from The New York Times: American authorities brought criminal charges on Thursday against the owners of one of the world's biggest cryptocurrency trading exchanges, BitMEX, accusing them of allowing the Hong Kong-based company to launder money and engage in other illegal transactions. Federal prosecutors in Manhattan indicted the chief executive of BitMEX, Arthur Hayes, and three co-owners: Benjamin Delo, Samuel Reed and Gregory Dwyer. Mr. Dwyer was arrested in Massachusetts on Thursday, while the other three men remained at large, authorities said.

Prosecutors said BitMEX had taken few steps to limit customers even after being informed that the exchange was being used by hackers to launder stolen money, and by people in countries under sanctions, like Iran. "BitMEX made itself available as a vehicle for money laundering and sanctions violations," the indictment released on Thursday said. BitMEX has handled more than $1.5 billion of trades each day recently, making it one of the five biggest exchanges on most days. BitMEX and Mr. Hayes have been known for pushing the limits in the unregulated cryptocurrency industry.

After it was founded in 2014, BitMEX grew popular by allowing traders to buy and sell contracts tied to the value of Bitcoin -- known as derivatives, or futures -- with few of the restrictions and rules that were in place in other exchanges. That allowed investors to take out enormous loans and make risky trades. The relaxed attitude also made it possible for people all over the world to easily move money in and out of BitMEX without the basic identity checks that can prevent money laundering. In August, BitMEX put in place some of those verification checks.