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Cryptocurrencies Under Increased UK Regulatory Scrutiny

Cryptocurrencies Under Increased UK Regulatory Scrutiny

Bitcoin (BTC), Ethereum (ETH), Ripple (XRP): Prices, Charts and News

  • UK Cryptoasset Taskforce warns of ‘substantial potential risks’.
  • Cryptocurrencies fade lower in thin market conditions.

UK Regulator Releases Cryptoasset Update

The UKCryptoasset Taskforce –consisting of HM Treasury, the Financial Condust Authority (FCA) and the Bank of England – has released a paper warning that there are ‘substantial potential risks associated with cryptoassets, and the most immediate priorities for the authorities are to mitigate the risks to consumers and market integrity and prevent the use of cryptoassets for illicit activity’. The report concludes that strong action should be taken ‘ to address the risks associated with cryptoassets that fall within existing regulatory frameworks’.

The report adds that the authorities will consult on, among other areas,

‘a potential prohibition of the sale to retail consumers of derivatives referencing certain types of cryptoassets (for example, exchange tokens), including CFDs, options, futures and transferable securities’.

Market reaction to the report saw cryptocurrencies shed 3%-5%, pushing some coins back to noted support levels and the overall market capitalization to just above $200 billion, a six-week low. The cryptocurrency market has traded in a tight range over the last few weeks and volume remains low.

bitcoin (BTC) currently trades around $6,250, just above horizontal support at $6,110, a break of which would open the way back to the August 15 low at $5,887. bitcoin is below all three moving averages.

bitcoin (BTC) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies under increased uk regulatory scrutiny

Ethereum (ETH) is back below $200, and all three moving averages, and is eyeing support at $186.5 ahead of $167.6.

Ethereum (ETH) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies under increased uk regulatory scrutiny

Ripple (XRP) is not immune to the sell-off and trades around $0.44, sharply lower than the September 21 ‘spike-high’ of $0.77. Support is seen at $0.427 ahead of $0.375. Ripple also trades below all three moving averages.

Ripple (XRP) Daily Price Chart (June – October 30, 2018)

Cryptocurrencies under increased uk regulatory scrutiny

We will take a more in-depth look at the UK proposal in our Weekly Cryptocurrency Webinar on Wednesday.

Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading bitcoin, bitcoin Cash, Ethereum, Litecoin or Ripple we can help you begin your journey. We have an Introduction to bitcoin Trading Guide along with a Free Demo Account so you can practice trading this volatile asset class.

IG Sentiment Data show how retail traders are positioned in various cryptocurrencies and how changes in daily and weekly holdings can affect market sentiment.

What’s your opinion on the cryptocurrency market? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at nicholas.cawley@ig.com.

— Written by Nick Cawley, Analyst.

Published at Tue, 30 Oct 2018 11:30:00 +0000

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How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer

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An ethical hacker breached the database of a phony darknet website offering hitman services and leaked the data. The information from the data dump helped the FBI in their investigation of a man who murdered his wife.

In November 2016, Stephen Carl Allwine, 47, of Cottage Grove, Minnesota, killed his wife in “one of the most bizarre cases ever seen,” police officers reported. The husband tried to mask the murder as a suicide, including putting a 9 mm pistol next to Amy Allwine’s elbow. However, detectives arriving on the scene identified the case as murder and collected evidence — mostly electronic devices, such as computers — belonging to Mr. Allwine. Later on, in January, investigators arrested and charged Mr. Allwine with second-degree murder based on the forensic evaluation of the confiscated electronic equipment.

In May 2016, a hacker called “bRpsd” breached the database of a controversial hitman service offered on a darknet website. The service, “Besa Mafia,” offered a link between customers and hitmen, who could register on the site anonymously. The price for a murder ranged between $5,000 and $200,000, but clients seeking to avoid fatalities could also hire a contractor to beat up a victim for $500 or set somebody’s car on fire for $1,000.

The hacker uploaded the data dump to a public internet website. The leaked files contained user accounts, email addresses, personal messages between the Besa Mafia admin and its customers, “hit” orders and a folder named “victims,” providing additional information on the targets.

The breach highlighted the fake nature of the website, which operated only to collect money from the customers. Chris Monteiro, an independent researcher who also hacked into the site, stated the owner or owners of Besa Mafia had made at least 50 bitcoins ($127,500 based on the current value of the cryptocurrency) from the scam operation.

According to a message posted by a Besa Mafia administrator and uncovered in the dump, “[T]his website is to scam criminals of their money. We report them for 2 reasons: to stop murder, this is moral and right; to avoid being charged with conspiracy to murder or association to murder, if we get caught.”

The leak of the Besa Mafia database helped the police investigating the murder of Mrs. Allwine. As the officers analyzed her husband’s devices, they discovered the suspect had accessed the dark web as early as 2014. Furthermore, investigators identified the pseudonym Mr. Allwine used on the darknet, “dogdaygod,” which was also linked to his email, “dogdaygod@hmamail.com,” in some cases. Detectives found bitcoin addresses in the conversations between Besa Mafia and Mr. Allwine, which linked the husband directly to the “dogdaygod” pseudonym, providing authorities with necessary evidence for the case.

Eventually, law enforcement agents analyzed the data dump bRpsd leaked and discovered Mr. Allwine’s email in the list. In addition, investigators found messages between the suspect and the Besa Mafia admin. According to a criminal complaint, Mr. Allwine paid between $10,000 to $15,000 to the supposed hitman service to kill his wife. The complaint detailed how Mr. Allwine had decided to have the hitman shoot Mrs. Allwine at close range and burn down the house afterward.

However, once the funds were transferred, the Besa Mafia communicator told Mr. Allwine that “local police [have] stopped the hitman [from] driving a stolen vehicle and taken [him] to jail prior to the hit,” thus rendering him unable to complete his “service.” The complaint cited Sergeant McAlister who reported that during that time, “no one was apprehended in Minnesota and western Wisconsin in a stolen vehicle and possession of a gun.”

It is likely that the ethical hacker’s data breach had an impact on Mr. Allwine’s case; on March 24, 2017, the Washington County District Court charged him with first-degree murder. In addition, officers have gathered more evidence in the case — a drug called scopolamine was discovered at 45 times higher than the recommended level in Mrs. Allwine’s body. Investigators subsequently discovered that her husband had also ordered the substance on the dark web.

The post How a Bitcoin Whitehat Hacker Helped the FBI Catch a Murderer appeared first on Bitcoin Magazine.