What's the world's most widely used cryptocurrency? If you think it's Bitcoin, which accounts for about 70% of all the digital-asset world's market value, you're probably wrong. From a report: While concrete figures on trading volumes are hard to come by in this often murky corner of finance, data from CoinMarketCap.com show that the token with the highest daily and monthly trading volume is Tether, whose market capitalization is more than 30 times smaller. Tether's volume surpassed that of Bitcoin's for the first time in April and has consistently exceeded it since early August at about $21 billion per day, the data provider says.

With Tether's monthly trading volume about 18% higher than that of Bitcoin, it's arguably the most important coin in the crypto ecosystem. Tether's also one of the main reasons why regulators regard cryptocurrencies with a wary eye, and have put the breaks on crypto exchange-traded funds amid concern of market manipulation. "If there is no Tether, we lose a massive amount of daily volume -- around $1 billion or more depending on the data source," said Lex Sokolin, global financial technology co-head at ConsenSys, which offers blockchain technology. "Some of the concerning potential patters of trading in the market may start to fall away."

Ten hospitals -- three in Alabama and seven in Australia -- have been hit with paralyzing ransomware attacks that are affecting their ability to take new patients, it was widely reported on Tuesday. Ars Technica reports: All three hospitals that make up the DCH Health System in Alabama were closed to new patients on Tuesday as officials there coped with an attack that paralyzed the health network's computer system. The hospitals -- DCH Regional Medical Center in Tuscaloosa, Northport Medical Center, and Fayette Medical Center -- are turning away "all but the most critical new patients" at the time this post was going live. Local ambulances were being instructed to take patients to other hospitals when possible. Patients coming to DCH emergency rooms faced the possibility of being transferred to another hospital once they were stabilized.

"A criminal is limiting our ability to use our computer systems in exchange for an as-yet unknown payment," DCH representatives wrote in a release. "Our hospitals have implemented our emergency procedures to ensure safe and efficient operations in the event technology dependent on computers is not available." At least seven hospitals in Australia, meanwhile, were also feeling the effects of a ransomware attack that struck on Monday. The hospitals in Gippsland and southwest Victoria said they were rescheduling some patient services as they responded to a "cyber health incident." According to news reports, hospital computer systems remained locked down at seven hospitals on Tuesday more than 24 hours after the attack struck. "An official said it would take weeks to secure and restore damaged networks," reports Ars Technica. "The official said there was no indication that patient records had been accessed."

"In April 2013, I received via U.S. mail more than a gram of pure heroin as part of a scheme to get me arrested for drug possession," writes security reserch Brian Krebs. "But the plan failed and the Ukrainian mastermind behind it soon after was imprisoned for unrelated cybercrime offenses.

"That individual recently gave his first interview since finishing his jail time here in the states, and he's shared some select (if often abrasive and coarse) details on how he got into cybercrime and why... Vovnenko claims he never sent anything and that it was all done by members of his forum... "They sent all sorts of crazy shit. Forty or so guys would send. When I was already doing time, one of the dudes sent it...." In an interview published on the Russian-language security blog Krober.biz, Vovnenko said he began stealing early in life, and by 13 was already getting picked up for petty robberies and thefts... "After watching movies and reading books about hackers, I really wanted to become a sort of virtual bandit who robs banks without leaving home," Vovnenko recalled...

Around the same time Fly was taking bitcoin donations for a fund to purchase heroin on my behalf, he was also engaged to be married to a nice young woman. But Fly apparently did not fully trust his bride-to-be, so he had malware installed on her system that forwarded him copies of all email that she sent and received. But Fly would make at least two big operational security mistakes in this spying effort: First, he had his fiancée's messages forwarded to an email account he'd used for plenty of cybercriminal stuff related to his various "Fly" identities. Mistake number two was the password for his email account was the same as one of his cybercrime forum admin accounts. And unbeknownst to him at the time, that forum was hacked, with all email addresses and hashed passwords exposed.

Soon enough, investigators were reading Fly's email, including the messages forwarded from his wife's account that had details about their upcoming nuptials, such as shipping addresses for their wedding-related items and the full name of Fly's fiancée. It didn't take long to zero in on Fly's location in Naples. While it may sound unlikely that a guy so immeshed in the cybercrime space could make such rookie security mistakes, I have found that a great many cybercriminals actually have worse operational security than the average Internet user. I suspect this may be because the nature of their activities requires them to create vast numbers of single- or brief-use accounts, and in general they tend to re-use credentials across multiple sites, or else pick very poor passwords -- even for critical resources...

Towards the end, Fly says he's considering going back to school, and that he may even take up information security as a study. I wish him luck in that whatever that endeavor is as long as he can also avoid stealing from people.

Venezuela's central bank is running internal tests to determine whether it can hold cryptocurrencies in its coffers, Bloomberg reports. From the report: The efforts come at the behest of state-run Petroleos de Venezuela SA, which is seeking to send Bitcoin and Ethereum to the central bank and have the monetary authority pay the oil company's suppliers with the tokens, according to the people, who asked not to be identified discussing internal deliberations. Staffers are also studying proposals that would allow cryptocurrencies to be counted toward international reserves, now near a three-decade low at $7.9 billion. U.S. sanctions against Nicolas Maduro's authoritarian regime have largely isolated Venezuela from the global financial system, exacerbating one of world's most severe economic crises and forcing officials to use a patchwork of methods to move money around. While Maduro's prior efforts to start the world's first sovereign crypto largely failed, the continued efforts to use digital currencies shows how desperate the government is to come up with a way to skirt the restrictions.

The owner of the New York Stock Exchange launched its long-delayed market for bitcoin futures Sunday, a high-profile bet that consumers, businesses and Wall Street will embrace cryptocurrencies. From a report: Trading in the new bitcoin futures began just after 8 p.m. EDT [Editor's note: the link may be paywalled; alternative source], with the first trade at $10,115.00, in line with the current price of bitcoin, said a spokesman for the exchange's parent company, Intercontinental Exchange Futures let traders bet on whether an underlying market such as oil, gold, stocks or currencies will rise or fall. The new futures are part of a venture called Bakkt (pronounced "backed"), whose ultimate goal is to make cryptocurrencies sufficiently transparent and regulated for individuals to use in retail purchases. Bitcoin has failed to gain traction as a tool for payment, in part because of its extreme volatility. If successful, ICE's futures could make it easier for merchants to protect themselves from swings in bitcoin prices.

An anonymous reader quotes a report from Motherboard: Facebook's plan to revolutionize the global economy with its version of bitcoin hit another snag this week when the French finance minister said the country would block the Libra cryptocurrency if it launches as planned in 2020. Libra, which is scheduled to launch in the second half of next year, is designed to be a fast and easy way for people to transfer money around the world, using the company's Messenger and WhatsApp services. Bruno Le Maire, speaking at a cryptocurrency conference organized by the Organization for Economic Development (OECD) on Thursday, didn't mince words when it came to the threat posed by Libra to the stability of the French economy by undermining the influence of the euro.

"The monetary sovereignty of countries is at stake [from] possible privatization of money by a sole actor with more than 2 billion users on the planet," he said. Le Maire said that during times of economic crisis, citizens may abandon national currencies in favor of Libra, making it very difficult for governments to manage the economy. "All these concerns around Libra are serious. So I want to say this with a lot of clarity: In these conditions, we cannot authorize the development of Libra on European soil," Le Maire added.

A $1 billion Bitcoin transaction has become conspicuous not because of its size but because its sender spent far too much on fees. From a report: Someone could have sent 94K BTC for $35. Social media users were guessing at the origin and destination of the funds on Sept. 6, which involved 94,504 BTC ($1.018 billion). According to Twitter-based monitoring resource Whale Alert, the transaction did not involve known wallets or those belonging to a specific cryptocurrency-related organization, such as an exchange.

One theory suggested the funds may be tied to institutional trading platform Bakkt, which begins accepting client deposits today. "Institutions building inventory for their market-making needs going forward," commented Max Keiser on the giant transaction. He added: "This = effective 'put' on the BTC price at $9,000. Ie, institutions are net-buyers of any BTC that shows up at $9k. Risk/reward now for buyers is excellent."

The Australian man who claimed to have invented cryptocurrency bitcoin has been ordered to hand over half of his alleged bitcoin holdings, reported to be worth up to $5 billion. From a report: The IT security consultant Craig Wright, 49, was sued by the estate of David Kleiman, a programmer who died in 2013, for a share of Wright's bitcoin haul over the pair's involvement in the inception of the cryptocurrency from 2009 to 2013. Kleiman's estate alleges Wright and Kleiman were partners, and therefore his family is entitled to a share of the bitcoin that was mined by the pair in that time. Wright denies there was a partnership. A US district court in Florida on Tuesday ruled that half of the bitcoin mined and half of the intellectual property held by Wright from that time belongs to Kleiman.

One issue is it is not known exactly how much bitcoin Wright holds. It has been claimed that the Kleiman estate could get anywhere between 410,000 and 500,000 bitcoin, putting the value at between $4.1 billion and $4.99 billion as of Wednesday. Wright claimed to the court that he couldn't access the bitcoin because he doesn't have a list of the public addresses of that bitcoin. He claimed in 2011, after seeing the cryptocurrency had begun to be associated with drug dealers and human traffickers, he put the bitcoin he mined in 2009 and 2010 into an encrypted file and into a blind trust. The encrypted key was divided into multiple key slices, and the key slices were given to Kleiman who distributed them to people through the trust.

UK police have seized Bitcoin worth more than £920,000 ($1.1 million) from a 27-year-old convicted of computer crimes -- and they're now planning to sell it to compensate his victims.

An anonymous reader quotes ZDNet: Authorities said Grant West used a tool called Sentry MBR to launch brute-force attacks against 17 companies, where he gained access to user accounts, which he later hijacked and resold on the dark web to other criminals. London police said the list of victims included some high profile names such as Uber, Groupon, T Mobile, Just Eat, Asda, and Sainsburys... Authorities said West, who used the moniker of "Courvoisier," started trading stolen accounts on the dark web in March 2015, and made more than 47,000 sales before his arrest. He also sold cannabis, along with hacking tutorials. West did all of this using his girlfriend's laptop.

After his arrest, UK police said they found "fullz" (a term short for "full credentials" and used to describe email, username, and password combos) for more than 100,000 people on this laptop. They also found an SD card storing 78 million individual usernames and passwords, as well as 63,000 credit and debit card details.
The Guardian reports that West agreed to give up his Bitcoin after a judge told him that if he didn't, he'd spend an additional four years in jail.

Ukrainian authorities are investigating a potential security breach at a local nuclear power plant after employees connected parts of its internal network to the internet so they could mine cryptocurrency. From a report: The investigation is being led by the Ukrainian Secret Service (SBU), who is looking at the incident as a potential breach of state secrets due to the classification of nuclear power plants as critical infrastructure. Investigators are examining if attackers might have used the mining rigs as a pivot point to enter the nuclear power plant's network and retrieve information from its systems, such as data about the plant's physical defenses and protections. According to authorities, the incident took place in July at the South Ukraine Nuclear Power Plant, located near the city of Yuzhnoukrainsk, in southern Ukraine. It's unknown how the scheme was discovered, but on July 10 the SBU raided the nuclear power plant, from where it seized computers and equipment specifically built for mining cryptocurrency.

An anonymous reader quotes a report from Ars Technica: YouTube is suing a Nebraska man the company says has blatantly abused its copyright takedown process. The Digital Millennium Copyright Act offers online platforms like YouTube legal protections if they promptly take down content flagged by copyright holders. However, this process can be abused -- and boy did defendant Christopher L. Brady abuse it, according to YouTube's legal complaint (pdf). Brady allegedly made fraudulent takedown notices against YouTube videos from at least three well-known Minecraft streamers. In one case, Brady made two false claims against a YouTuber and then sent the user an anonymous message demanding a payment of $150 by PayPal -- or $75 in bitcoin.

"If you decide not to pay us, we will file a 3rd strike," the message said. When a YouTube user receives a third copyright strike, the YouTuber's account gets terminated. A second target was ordered to pay $300 by PayPal or $200 in Bitcoin to avoid a third fraudulent copyright strike. A third incident was arguably even more egregious. According to YouTube, Brady filed several fraudulent copyright notices against another YouTuber with whom he was "engaged in some sort of online dispute." The YouTuber responded with a formal counter-notice stating that the content wasn't infringing -- a move that allows the content to be reinstated. However, the law requires the person filing the counter-notice to provide his or her real-world name and address -- information that's passed along to the person who filed the takedown request. This contact information is supposed to enable a legitimate copyright holder to file an infringement lawsuit in court. Shortly after filing a counter-notice, the targeted YouTuber "announced via Twitter that he had been the victim of a swatting scheme."

YouTube says it doesn't have hard proof that Brady was responsible for the swatting call -- even though it "appears" that way, but it does have compelling evidence that Brady was responsible for the fraudulent takedown notices, which are against the law.

An anonymous reader quotes a report from The New York Times: Hamas, the militant Palestinian group, has been designated a terrorist organization by Western governments and some others and has been locked out of the traditional financial system. But this year its military wing has developed an increasingly sophisticated campaign to raise money using Bitcoin. In the latest version of the website set up by the wing, known as the Qassam Brigades, every visitor is given a unique Bitcoin address where he or she can send the digital currency, a method that makes the donations nearly impossible for law enforcement to track. The site, which is available in seven languages and features the brigades' logo, with a green flag and a machine gun, contains a well-produced video that explains how to acquire and send Bitcoin without tipping off the authorities. Terrorists have been slow to join other criminal elements that have been drawn to Bitcoin and have used it for everything from drug purchases to money laundering.

But in recent months, government authorities and organizations that track terrorist financing have begun to raise alarms about an uptick in the number of Islamist terrorist organizations experimenting with Bitcoin and other digital coins. The yields from individual campaigns appear to be modest -- in the tens of thousands of dollars. But the authorities note that terrorist attacks often require little funding. And the groups' use of cryptocurrencies appears to be getting more sophisticated. The Middle East Media Research Institute, a nonprofit that tracks and translates communication from terrorist groups, is about to publish a 253-page report about the increased signs of cryptocurrency use by terrorist organizations. According to the NYT, the report will focus on groups in Syria that are on the run as Islamic militants have lost almost all the territory they used to hold.

An anonymous reader shares a report: For years, Faketoshis have been fighting to claim the Bitcoin throne, trying to make us all believe they were responsible for the cryptocurrency's creation. But things took a different turn this weekend after an unknown person(s) decided it was time to reveal their identity as the 'real' Satoshi Nakomoto in a three-part blog post series. Possibly exhausted by peoples' previous attempts to do the same, and having noticed several significant inconsistencies in the person's writing, it didn't take long for Bitcoin Twitter to react and call Faketoshi's claims into question. Further reading: How the NSA Identified Satoshi Nakamoto (2017);
Bizarre New Theories Emerge About Bitcoin Creator Satoshi Nakamoto (2019);
The CIA 'Can Neither Confirm Nor Deny' It Has Documents on Satoshi Nakamoto (2018);
Craig Wright Claims He's Satoshi Nakamoto, the Creator Of Bitcoin (2016);
Former Bitcoin Developer Shares Early Satoshi Nakamoto Emails (2017);
He Says He Invented Bitcoin and Is Suing Those Who Doubt Him (2019);
Elon Musk Says He Is Not Bitcoin's Satoshi Nakamoto (2017);
Satoshi Nakamoto Found? Not So Fast (2014);
Bitcoin Releases Version 0.3 (2010).

option8 ((Slashdot reader #16,509) writes: TL;DR: Mining Bitcoin on a 1MHz 8-bit processor will cost you more than the world's combined economies, and take roughly 256 trillion years.
"But it could happen tomorrow. It's a lottery, after all," explains the blog post (describing this mad scientist as a hardware hacker and "self-taught maker", determined to mine bitcoin "in what must be the slowest possible way. I call it 8BITCOIN....")

There's also a Twitch.TV stream, with some appropriate 8-bit music, and the blog post ends by including his own bitcoin address, "If you feel like you absolutely must throw some money at me and this project."

"Upon doing some research, I found that, not only were other 8-bit platforms being put to the task, but other, even more obscure and outdated hardware. An IBM 1401 from the 1960s, a rebuilt Apollo Guidance Computer, and even one deranged individual who demonstrated the hashing algorithm by hand. It turns out, those examples all come from the same deranged individual, Ken Shirriff."

The U.S. Department of Justice has filed a civil lawsuit seeking to recover more than $100 million from a notorious cryptocurrency exchange that has helped cyber-criminals launder stolen funds, such as those obtained from ransomware payments, dark web drug marketplaces, and funds from hacked cryptocurrency exchanges. ZDNet reports: In a lawsuit filed on Friday, July 26, the U.S. wants to recover $88,596,314 from the accounts of the now-defunct BTC-e cryptocurrency exchange, and an additional $12 million from Alexander "Mr. Bitcoin" Vinnick, BTC-e's founder and CEO. The sum represents a fine that was imposed by the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) in 2017 when the FBI shut down the BTC-e portal, and Greek authorities arrested Vinnick. For the past two years, the DOJ has been trying to extradite Vinnick to the U.S. to face charges, but with no success. The DOJ's civil lawsuit is an alternative legal method to make sure the U.S. Treasury FinCEN recovers its due fine in the case U.S. authorities opened in 2017.

Those fines were imposed because BTC-e violated the Bank Secrecy Act (BSA). First by not registering with U.S. authorities as a Money Services Business (MSB), even if it catered to U.S. consumers. Second, for failing to implement an anti-money laundering (AML) program in accordance with U.S. and many other international standards. And third, for failing to file any suspicious activity report (SAR) for the numerous shady transactions that have happened on its platform. When authorities charged Vinnick and shut down BTC-e on July 26, 2017, the DOJ said that the platform, which claimed on its website to have handled over $7 billion worth of Bitcoin in its lifetime, had laundered criminal proceeds of more than $4 billion, representing more than half of the funds that have ever gone through its accounts. After the BTC-e shutdown, it was revealed at the Black Hat USA 2017 security conference that 95% of all ransomware ransom payments that had been made up until that point had been cashed out and converted into fiat currency through Vinnik's BTC-e portal.

The Internal Revenue Service has begun sending letters to more than 10,000 cryptocurrency holders, warning about penalties for failing to report income and pay tax on transactions involving virtual currencies. From a report: The agency expects its mailing to be completed by the end of August [Editor's note: the link may be paywalled; alternative source]. It is sending three variations of one letter, depending on the information it has about the recipient. "Taxpayers should take these letters very seriously. The IRS is expanding efforts involving virtual currency, including increased use of data analytics," said IRS Commissioner Chuck Rettig. An IRS spokesman declined to say whether the letters stem from information turned over by digital-currency platform Coinbase. In mid-March of 2018, Coinbase provided data -- under a federal court order -- on about 13,000 accounts requested by the IRS.

Forbes notes that other financial transaction platforms hope to benefit from Facebook's struggles in launching its Libra cryptocurrency -- including Celo. The key value proposition of the assets running on top of the [Celo] platform is that they are immune to the wide swings in volatility that have plagued leading crypto assets in recent years. Many are designed to mirror the price movements of traditional currency, and most have names that reflect their fiat brethren, such as the Gemini Dollar. This is a critical need for the industry, as no asset will be able to serve as a currency if it does not maintain a consistent price. However, rather than being a centralized issuer that supports the price pegs with fiat held in banks, Celo has built a full-stack platform (meaning it developed the underlying blockchain and applications that run on top), that can offer an unlimited number of stablecoins all backed by cryptoassets held in reserve.

Furthermore, Celo is what is known as an algorithmic-based stablecoin provider. This distinction means that rather than being a centralized entity that controls issuances and redemptions, the company employs a smart-contract based stability protocol that automatically expands or contracts the supply of its collateral reserves in a fashion similar to how the Federal Reserve adjusts the U.S. monetary supply... Additionally, a key differentiator for Celo from similar projects is that for the first time its blockchain platform allows users to send/receive money to a person's phone number, IP address, email, as well as other identifiers. This feature will be critical to the long-term success for the network because it eliminates the need for counterparties in a transaction to share their public keys with each other prior to a transaction.

And now... Celo is open-sourcing its entire codebase and design after two years of development. Additionally, the company is launching the first prototype of its platform, named the Alfajores Testnet, and Celo Wallet, an Android app that will allow users to manage their accounts and send/receive payments on the testnet.

This announcement and product is intended to be just the first of what will be a wide range of financial services applications designed to connect the world.
Celo's investors include LinkedIn founder Reid Hoffman and Twitter/Square CEO Jack Dorsey, the article points out, as well as some of Libra's first members, "including venerated venture capital firm Andreessen Horowitz and crypto-unicorn Coinbase."

An anonymous reader quotes Ars Technica: David Marcus, the head of Facebook's new Calibra payments division, appeared before two hostile congressional committees this week with a simple message: Facebook knows policymakers are concerned about Libra, and Facebook won't move forward with the project until their concerns are addressed. While he didn't say so explicitly, Marcus' comments at hearings on Tuesday and Wednesday represented a dramatic shift in Facebook's conception of Libra.

In Facebook's original vision, Libra would be an open and largely decentralized network, akin to Bitcoin. The core network would be beyond the reach of regulators. Regulatory compliance would be the responsibility of exchanges, wallets, and other services that are the "on ramps and off ramps" to the Libra ecosystem. Facebook now seems to recognize its original vision was a non-starter with regulators. So this week Marcus sketched out a new vision for Libra -- one in which the Libra Association will shoulder significant responsibility for ensuring compliance with laws relating to money laundering, terrorist financing, and other financial crimes...

[T]here's a pretty fundamental tradeoff between network openness and effective enforcement of regulations governing payment networks. If the Libra Association doesn't have a way to enforce compliance by wallet providers, criminals are likely to flock to wallet services that don't strictly enforce the rules -- or to download open source wallet software and use non-custodial accounts. But if the Libra Association does have a mechanism for forcing compliance, that inherently raises the bar for entering the market and makes the Libra network look more like conventional financial networks -- with all the red tape that entails. This could be particularly harmful for marginalized people in developing countries, since developers in those markets will have the fewest resources to jump through regulatory hoops.

As cryptocurrency prices tumbled across the board last year, venture capitalists focused their attention on the promise of the underlying technology, the ledger known as blockchain. That, many said, was the smarter bet. Now, the tables have turned. From a report: While Bitcoin's price has rebounded this year, a fresh batch of data shows the flow of cash into blockchain startups dropped dramatically. So far, traditional venture capital investments in blockchain companies have totaled $784 million via 227 deals, according to CB Insights. At that pace, businesses focusing on that technology may only draw $1.6 billion this year, down roughly 60% from a record $4.1 billion in 2018, the research firm said. Money coming from corporations is on "an even sharper decline," despite interest from companies such as Facebook in creating their own digital coins, CB Insights said. Maturing startups are drawing less support, while young startups are faring better, it said.

Two years ago Nasdaq and Citigroup announced a new blockchain system they said would make payments of private securities transactions more efficient. Nasdaq Chief Executive Adena Friedman called it "a milestone in the global financial sector." But the companies did not move forward with the project, Reuters reported Tuesday, because while it worked in testing, the cost to fully adopt it outweighed the benefits. From a report: Blockchain, the person added, "is a shiny mirage" and its wide-scale adoption may still "take a while." In a joint statement, the companies said the pilot was successful and they were "happy to partner" on other initiatives. Both companies are also working on other projects. Companies, including banks, large retailers and technology vendors, are investing billions of dollars to find uses for blockchain, a digital ledger used by cryptocurrencies like bitcoin. Just last month, Facebook revealed plans for a virtual currency and a blockchain-based payment system. But a review of 33 projects involving large companies announced over the past four years and interviews with more than a dozen executives involved with them show the technology has yet to deliver on its promise.