The head of the Bitcoin Foundation, Llew Claasen, has urged people to invest "no more than they can afford" in the crypto-currency. From a report: He was speaking at the TEDGlobal conference in Tanzania about the potential for Bitcoin in Africa. Billions lack access to formal banking, but the uptake of mobile money means many are willing to embrace alternatives. Bitcoin had been adopted in Nigeria, South Africa and Kenya, he said. The digital currency had particular resonance in countries with volatile economies, he said. "It offers people a chance to protect their savings from government abuse of monetary policy. A lot of people in Zimbabwe are interested in it as an alternative financial system, but that is not an easy thing to do formally as we don't want to be perceived as wanting to disrupt economies," he told the BBC. The Washington-based Bitcoin Foundation is a non-profit organisation that promotes the use of Bitcoin around the world.

BarbaraHudson writes: The Register is reporting that Alexandre Cazes, the 25-year-old Canadian running the dark web site AlphaBay, was using a hotmail address easily connected to him via his Linkdin profile to administer the site. From the report: "[A]ccording to U.S. prosecutors, he used his real email address, albeit a Hotmail address -- Pimp_Alex_91@hotmail.com -- as the administrator password for the marketplace software. As a result, every new user received a welcome email from that address when they signed up to the site, and everyone using its password recovery tool also received an email from that address. However, rather than carefully set up and then abandon that email address, it turns out that Alexandre Cazes -- Pimp Alex -- had been using that address for years. Cazes had also used his Pimp Alex Hotmail address as well as an email address from his own business -- EBX Technologies -- to set up online bank accounts and crypto-currency accounts. How did law enforcement know that Cazes was behind EBX Technologies? It was on his LinkedIn profile."

BarbaraHudson adds: "His laptop wasn't encrypted, so expect more arrests as AlphaBay users are tracked down."

An anonymous reader quotes Bloomberg: Demand for digital coins is soaring in Venezuela amid an escalating political crisis that has protesters demanding that President Nicolas Maduro step down. Inflation has spiraled to the triple digits, debasing the bolivar and depleting savings, while citizens struggle to find everything from food to medicine on store shelves. "If you're going to be in something volatile, you might as well be in something that's volatile and rising than volatile and falling," says Ryan Taylor, chief executive officer of crypto currency Dash Core, the third-largest digital coin by number of transactions... Bitcoin trading volume in Venezuela jumped to $1.3 million this week, about double the amount that changed hands two months ago, according to LocalBitcoins.com...

Venezuela's currency has become nearly worthless in the black market, where it takes more than 6,000 bolivars to buy $1, while bitcoin surged 53 percent in the past month alone. But it's not just about shielding against the falling bolivar, as some Venezuelans are using crypto currencies to buy and sell everyday goods and services, according to Jorge Farias, the CEO of Cryptobuyer.

New submitter unarmed8 quotes a report from CyberScoop: The ransomware known as WannaCry that spread rapidly to 300,000 machines in 150 countries over the past few days shares code with malware written by a group of North Korean hackers known as the Lazarus Group. While the shared code is important, experts warned that it's far from proof about who created and launched the ransomware attacks. Neel Mehta, a security researcher at Google, first pointed out the shared code on Monday on Twitter. The link was quickly echoed by numerous other experts. "From a technical point of view those two functions and their references are identical," said Matt Suiche, founder of United Arab Emirates-based cybersecurity firm Comaeio. "From an attribution point of view a ransomware would subscribe to the narrative of Lazarus Group, which is stealing money like we saw with multiple financial institutions with fraudulent SWIFT transactions -- having a nation-state powered ransomware leveraging crypto currency would be a first."

An anonymous reader writes: "An anonymous security researcher has published details on a vulnerability named "Antbleed," which the author claims is a remote backdoor affecting Bitcoin mining equipment sold by Bitmain, the largest vendor of crypto-currency mining hardware on the market," reports Bleeping Computer. The backdoor code works by reporting mining equipment details to Bitmain servers, who can reply by instructing the customer's equipment to shut down. Supposedly introduced as a crude DRM to control illegal equipment, the company forgot to tell anyone about it, and even ignored a user who reported it last fall. One of the Bitcoin Core developers claims that if such command would ever be sent, it could potentially brick the customer's device for good. Bitmain is today's most popular seller of Bitcoin mining hardware, and its products account for 70% of the entire Bitcoin mining market. If someone hijack's the domain where this backdoor reports, he could be in the position to shut down Bitcoin mining operations all over the world, which are nothing more than the computations that verify Bitcoin transactions, effectively shutting down the entire Bitcoin ecosystem. Fortunately, there's a way to mitigate the backdoor's actions using local hosts files.

A hacker or group of hackers calling themselves the "Turkish Crime Family" claim they have access to at least 300 million iCloud accounts, and will delete the alleged cache of data if Apple pays a ransom by early next month. Motherboard is reporting that the hackers are demanding "$75,000 in Bitcoin or Ethereum, another increasingly popular crypto-currency, or $100,000 worth of iTunes gift cards in exchange for deleting the alleged cache of data." From the report: The hackers provided screenshots of alleged emails between the group and members of Apple's security team. One also gave Motherboard access to an email account allegedly used to communicate with Apple. "Are you willing to share a sample of the data set?" an unnamed member of Apple's security team wrote to the hackers a week ago, according to one of the emails stored in the account. (According to the email headers, the return-path of the email is to an address with the @apple.com domain). The hackers also uploaded a YouTube video of them allegedly logging into some of the stolen accounts. The hacker appears to access an elderly woman's iCloud account, which includes backed-up photos, and the ability to remotely wipe the device. Now, the hackers are threatening to reset a number of the iCloud accounts and remotely wipe victim's Apple devices on April 7, unless Apple pays the requested amount. According to one of the emails in the accessed account, the hackers claim to have access to over 300 million Apple email accounts, including those use @icloud and @me domains. However, the hackers appear to be inconsistent in their story; one of the hackers then claimed they had 559 million accounts in all. The hackers did not provide Motherboard with any of the supposedly stolen iCloud accounts to verify this claim, except those shown in the video.

The SEC has decided to deny an application for the first exchange-traded product that tracks the price of bitcoin, according to an order posted on the regulator's website. From a report: In an order today, the commission found that the proposed fund was too susceptible to fraud, due to the unregulated nature of Bitcoin. The result is a major setback for the fund, and a frustrating false start for the crypto-currency at large. The ETF is essentially a common stock fund pegged to the price of Bitcoin, allowing investors to purchase Bitcoin without the work of establishing a personal wallet. (In concrete terms, the ETFs investors will be buying shares whose price will always be the same as the price of a single bitcoin, similar to an equivalent investment in gold or cattle.) Without a wallet, investors still won't be able to spend Bitcoin, but they can buy and sell it at market price, adding more liquidity to the Bitcoin system overall.

An anonymous reader quotes a report from Motherboard: In bitcoin-related investigations, authorities will often follow the digital trail of an illegal transaction or suspicious user back to a specific account at a bitcoin trading company. From here, investigators will likely subpoena the company for records about that particular user, so they can then properly identify the person suspected of a crime. The Internal Revenue Service, however, has taken a different approach. Instead of asking for data relating to specific individuals suspected of a crime, it has demanded bitcoin trading site Coinbase to provide the identities of all of the firm's U.S. customers who made transactions over a three year period, because there is a chance they are avoiding paying taxes on their bitcoin reserves. Coinbase has a total of millions of customers. According to court filings, which were first flagged by financial blogger Zerohedge on Twitter, the IRS has launched an investigation to determine the correct amount of tax that those who use virtual currencies such as bitcoin are obligated to pay. But according to the documents, the IRS is asking for the identities of any U.S. Coinbase customer who transferred crypto-currency with the service between 2013 and 2015. "The John Does whose identities are sought by the summons are United States persons who, at any time during the period January 1, 2013, through December 31, 2015, conducted transactions in a convertible virtual currency," reads a memorandum written by Department of Justice attorneys and filed on Thursday, November 17.

Donald Trump's historic victory in the U.S. presidential elections has pushed up prices for the digital currency bitcoin. As the results for the election began to trickle in, the cryptocurrency quickly began to rise at around 2 a.m. London time. From a report on CNBC: The price for bitcoin was around 3.5 percent higher at 11:00 a.m. London time Wednesday at $733.84. Since November 4, the cryptocurrency has been stuck around the $700-709 trading band. The weakening dollar may have added to the rise, but the digital currency is also higher when priced in other currencies like the Chinese yuan, sterling and the euro. Charles Hayter, CEO and founder of Crypto Compare, said that the price is rising on safe-haven demand in reaction to the uncertainty created as a result of Trump's victory.

Millions of people have donated their unused computer power as part of "a global movement of teams and individuals committed to Protein Folding research," according to a special anniversary update at CureCoin.net. And after two years, CureCoin is now the fourth-largest contributor to Stanford's massively distributed computing project for disease research. An anonymous Slashdot reader writes: CureCoin rewards citizen scientists participating in life science research through Stanford's Folding@home... It's actually very easy to participate -- basic account setup can take as little as 20 minutes, and you're contributing computing power with a PC or Mac while earning the tokens...

CureCoin uses a blockchain token called CURE as the means of reward. There is a growing market and exchange network for the coin. Occasional market volatility puts penny stocks to shame -- which if you are risk averse, makes it fun to watch nonetheless.
Sounds more useful than that cryptocurrency which rewards its users for participating in denial-of-service attacks.

An anonymous reader quotes Softpedia: Anthony Di Iorio, founder of Jaxx, a crypto-currency wallet, claims that an Apple representative revealed to him the six crypto-currencies allowed on the App Store, during a private phone conversation... Di Iorio had this conversation with the Apple employee after the company removed his Jaxx iOS app from the store. The Apple employee told Di Iorio that they had to remove his app because it featured support for Dash, another blockchain technology, touted as an alternative to Bitcoin.

During the conversation, Di Iorio asked what crypto-currencies Apple approves of, so he'd know what to remove from Jaxx's iOS version and get his app back on the App Store. Di Iorio says that Apple is comfortable approving apps on its App Store that handle only six crypto-currencies: Bitcoin, Dogecoin, Litecoin, Ethereum, the DAO and Ripple. Reaction to Apple's list of approved crypto-currencies wasn't positive, at least on Twitter. Most users criticized Apple's decision to limit the list to only six, which they considered might thwart the evolution of other, lesser-known crypto-currencies.
Vitalik Buterin, who helped create Ethereum with Di lorio, tweeted "For the record: despite being a beneficiary of this instance of (private) regulatory protectionism, I oppose it."

An anonymous reader writes from a report via Softpedia: "In the most innovative, weirdest, and stupidest idea of the month, two researchers from the University of Colorado Boulder and the University of Michigan have created a crypto-currency that rewards people for participating in DDoS attacks," reports Softpedia. "Called DDoSCoin, this digital currency rewards a person (the miner) for using their computer as part of a DDoS attack. Just like Bitcoin, DDoSCoin uses cryptographic data to provide a proof-of-work. In DDoSCoin's case, this proof-of-work is extracted from the TLS connection a miner establishes with the website they're supposed to attack." This means that DDoSCoin can be used only with DDoS attacks on TLS-enabled websites. Participating in DDoS attacks gives miners DDoSCoin, which can then be converted in Bitcoin or fiat currency. Furthermore, anyone can request a DDoS attack via the PAY_TO_DDOS transaction. The research paper that proposes DDoSCoin is only a theoretical exercise, and a DDoSCoin crypto-currency does not currently exist in the real world. For now.

An anonymous reader writes: In another installment of "Linux has malware too," security researchers have discovered a new trojan that targets Linux servers running Redis, where the trojan installs a cryptocurrency miner. The odd fact about this trojan is that it includes a wormable feature that allows it to spread on its own. The trojan, named Linux.Lady, will look for Redis servers that don't have an admin account password, access the database, and then download itself on the new target. The trojan mines for the Monero crypto-currency, the same one used by another worm called PhotoMiner, which targets vulnerable FTP servers. According to a recent Risk Based Security report from last month, there are over 30,000 Redis servers available online without a password, of which 6,000 have already been compromised by various threat actors.

Three cryptocurrency experts published a scientific paper Friday detailing seven attacks that could influence how the Decentralized Autonomous Organization (DAO) allocates its Ether funds. An anonymous Slashdot reader writes, "Coincidentally or not, they released their work with one day before funding for the DAO closed, and not surprisingly, Ether's price went down, devaluing the DAO from $150 million to $132 million."

From Softpedia: DAO is a crowdfunded project that works on the Ethereum network, a new crypto-currency network that deals with crypto-currency named Ether, which many experts say is better than Bitcoin's blockchain... Investors can submit funding proposals, on which the DAO users vote by submitting some of their tokens and a YES/NO vote. In the end, based on the tokens and YES/NO votes, the DAO's computer program decides on the outcome.
Softpedia reports that the paper released Friday also suggests a series of mitigations to a design they say will "incentivize investors to behave strategically; that is, at odds with truthful voting on their preferences."

Qbertino writes: With the ever-looming cyberpunk future in close proximity, I'm starting to wonder if it isn't time to get myself familiar with crypto currency as a means of trade. Bitcoin is all the hype, but the blockchain has flaws, in that it isn't as anonymous as one would hope for — you can track past transactions. Rumors of Bitcoin showing cracks are popping up and also there are quite a few alternatives out there. So I have some questions: Is getting into dealing with crypto currency worthwhile already? Is Bitcoin the way to go, or will it falter under wide use / become easily trackable once NSA and the likes adapt their systems to doing exactly that? What digital currency has the technical and mind-share potential to supersede bitcoin? Are there feasible cryptocurrencies that have the upsides of Bitcoin (such as a mathematical limit to their amount) but are fully anonymous in transactions? What do the economists and digi-currency nerds here have to contribute on that? What are your experiences with handling and holding cryptocurrency? And does Bitcoin own the market or is it still flexible enough for an technology upgrade?

An anonymous reader writes with this snippet from The Stack: The European Union's Court of Justice (ECJ) has today ruled that Bitcoin is a currency, detailing exchanges that transfer traditional currencies into the crypto-coins for a fee are to be exempt from consumption taxes. Under the EU rule against value added taxes (VAT) on transfers of "currency, bank notes and coins used as legal tender," the new call presents an important boost for Bitcoin, erasing related costs for buying and using the virtual funds in Europe – one of the world's leading trading zones. That decision overrides other approaches previously taken by some of the member countries, which treated Bitcoin like an exchangeble commodity itself, rather than a medium of exchange.

Today, the conclusion of my talk with Jim Blasko (here's part 1), who encourages you to go start your own crypto currency, because it's a fun exercise and because every entrant adds new ideas to the mix. As you'd expect, he's bullish about both his own Unbreakable Coin and cryptocurrencies more generally; how any given given currency performs, though, is an open question: U.S. dollars, Euros, or Yen may not go experience any meteoric rises, but their stability, even with inflation, is a nice feature, and so is their worldwide convertibility.

Regulation, speculation, fraud, and cultural fashions all play a role in making new currencies risky; reader mbkennel yesterday asked an insightful question: "Are you up to loaning bitcoin or something less popular for 10 years?" Confidence in any given currency can be tested with the terms current holders are willing to accept to make loans payable in that same currency. (On the other hand, if large companies will accept it in payment, they've probably got an idea that a given currency will be around next month or next year.) If you've bought any form of crypto currency, what's been your experience, and what do you expect in 10 years? (Alternate Video Link)

An anonymous reader writes The team over at the BITCOMSEC (Bitcoin Community Security) project released a second part to their 'Tracking a Bitcoin Thief' series in which they disclose what happened to a once-rising alternate crypto currency project that promised to place guaranteed value of its MidasCoins by backing it with actual Gold. Dealing with the reality of user compromise, the projects founder ups and runs away with all of the communities coins; cashing them out at an exchange for Bitcoins. A sobering tale of trust issues within the alternate crypto currency community. (The first part is interesting, too.)

An anonymous reader writes A small group of researchers were able to publish an investigative report on the hacking of a popular Bitcoin exchange earlier this year by the name of CryptoRush.in. Close to a million dollars stolen in crypto currency lead the group to discover evidence, track down the attacker and put together a timeline of what exactly happened. A captivating read for a community desensitized by thefts, hackings and lack of reporting. With pictures, and logs to prove it all.

An anonymous reader writes Ars Technica reports that for the first time in Bitcoin's five-year history, a single entity has repeatedly provided more than half of the total computational power required to mine new digital coins, in some cases for sustained periods of time. It's an event that, if it persists, signals the end of crypto currency's decentralized structure."