New Study Finds Less Than 1% of Bitcoin Transactions To Exchanges Are Illicit – Bitcoinist.com

By Matthew Tompkins     January 19, 2018

A new report that analyzes illicit transactions conducted on the blockchain has determined that less than 1% of all Bitcoin transactions are criminal in origin.


Elliptic, a UK based cybersecurity firm specialized in creating tools to identify criminality associated with blockchain related transactions, has released a report analyzing the global Bitcoin market with a focus on money laundering.

The results somewhat surprisingly find that the much-hyped criminal elements involved in Bitcoin appear disproportionately small, amounting to less than 1% of all Bitcoin transactions. Another surprising fact discovered in the report was that illicit Bitcoin transactions were again disproportionately made to European sources.

. . .

The research paper identifies the fraction of all transactions that consist of illicit payments here, emphasizing how the figure has fallen from just over 1% in 2013:

According to our study, the total percentage of identified ‘dirty bitcoins’ going into conversion services was relatively small. Only 0.61 percent of the money entering conversion services during the four years analyzed were verifiably from illicit sources, with the highest proportion (1.07 percent) seen in 2013.

More at: New Study Finds Less Than 1% of Bitcoin Transactions To Exchanges Are Illicit – Bitcoinist.com

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China Assembles Coalition to Hunt Down, Prosecute Those Using Blockchain Name to Scam Its Citizens – Cryptovest

By Tedra DeSue    January 17, 2018

Arrests and prosecutions are in the cards for those in China who try to peddle fake tokens by using the name Blockchain.

In its quest to prevent cybercrimes, China is going after people promoting token sales they say are affiliated with the Blockchain, according to reports.

We’ve seen this practice increase over the last few months as companies try to boost their attractiveness and appear legitimate through the use of the digital ledger technology’s name.

China’s not sitting back and allowing for it.

Instead, several of its regulatory authorities have formed a coalition of sorts to halt this kind of abuse so not to cause the overall reputation of Blockchain to be damaged.

Already, it has reportedly identified more than 2,000 tokens with active user bases and 3,000 knockoff platforms that are promoting fake Blockchain products.

When caught, these fraudsters face arrest and prosecution. Something in particular has caught the eye of some observers and it’s the phrase being used to describe the effort. They are calling it a “special campaign,” which has given rise to the thought that prominent figures could be snared.

More at: China Assembles Coalition to Hunt Down, Prosecute Those Using Blockchain Name to Scam Its Citizens – Cryptovest

Cryptocurrency mining malware will be a real problem this year – KnowTechie

By Chris Smith    January 16, 2018

Cryptocurrency mining malware is expected to stay within the cryptocurrency world. They are indeed a real problem that will continuously bring a headache to cryptocurrency enthusiasts.

Cryptocurrency started to gain extreme popularity last year. If you’re a newbie in cryptocurrency, the LetsGoBitcoin will be so helpful to you. It’s one of the hottest websites today that lets anyone learn the best way to use the progressive cryptocurrency on the market. However, the world of bitcoins is threatened by cryptocurrency mining malware. It uses your smartphone’s or PC’s computing power to carry out somebody else’s task in completing cryptocurrency transactions.

You’re in trouble if Google Chrome is your favorite web browser, and if you’ve been using the browser extension we call Archive Poster. With this browser extension, your computer will be secretly attacked by hijackers and they will use your device in mining cryptocurrencies. Archive Poster uses a mining program known as Coinhive to start mining the virtual money called Monero. So, it’s best to stop using this web browser extension and remove it.

More at: Cryptocurrency mining malware will be a real problem this year – KnowTechie

Cybersecurity company claims that it has found a software which sends mined cryptocurrency to a North Korean university – Firstpost

India – Reuters    January 9, 2018

A cybersecurity company said it has found software that appears to install code for mining cryptocurrency and sends any mined coins to a server at a North Korean university, the latest sign that North Korea may be searching for new ways to infuse its economy with cash.

Representational image. Reuters.

The application, which was created on 24 December, uses host computers to mine a cryptocurrency called Monero. It then sends any coins to Kim Il Sung University in Pyongyang, said cybersecurity firm AlienVault, which examined the program.

“Crypto-currencies may provide a financial lifeline to a country hit hard by sanctions, and as a result universities in Pyongyang have shown a clear interest in cryptocurrencies,” the California-based security firm said in a release, adding that the software “may be the most recent product of their endeavors.”

More at: Cybersecurity company claims that it has found a software which sends mined cryptocurrency to a North Korean university – Firstpost

Hacks, Scams and Attacks: Blockchain’s Biggest 2017 Disasters – CoinDesk

By Nikhilesh De    December 29, 2017

Hard forks? Soft forks? ICOs?

Bombarded by no shortage of unfamiliar technical terms in 2017, consumers in the blockchain sector once again proved a ripe target for hackers and criminals. But, not all hacks and scams were created equal. Some rose above the froth – either due to their size or impact – as well as what they said about the state of blockchain technology and the industry itself.

Still, the impacts of these incidents were far from academic. Whether it was a simple wallet hack, fraudulent ICO or a bug in a piece of software code, investors lost millions, with nearly $490 million taken in the incidents below.

So far, none of the perpetrators of these crimes has been caught or even identified, and it’s questionable whether most of these funds can be found or returned.

More at: Hacks, Scams and Attacks: Blockchain’s Biggest 2017 Disasters – CoinDesk

$70,000 in ZCoin Stolen: User Gets Scammed Trying to Set up Znode – Cryptovest

By Hunain Naseer    December 19, 2017

While absolute beginners often lose their cryptocurrencies to scams such as ‘bitcoin doubling’ and so on, in a recent incident, a scammer managed to steal 1,000 XZC (ZCoin worth about $70,000 right now), from a user by pretending to help set up a Znode.

The user, magvie#8479, was approached on ZCoin’s official discord, by user #1541 (soccerfan), who offered to help magvie set up a Znode on VPS.

According to magvie, the scammer struck up a long conversation and seemed very friendly, giving him the impression that he was a supportive member of the community:

“…my thoughts: what a nice guy, gotta love the zcoin community. so he started to go through everything with me even explained all of the steps in detail to me. we also start talking about some private things. about crypto and its critics, about my girl friend and his wife, about where he’s living (belgium)…just seemed like a really nice guy and we were joking a lot.”

Afterwards, helping magvie set up the node on the VPS, the scammer sent him multiple commands, one of which generated a wallet on the VPS, and he asked magvie to transfer the 1,000 XZC there. Once the scammer had access to the funds, he moved them.

More at: $70,000 in ZCoin Stolen: User Gets Scammed Trying to Set up Znode – Cryptovest

Another South Korean Bitcoin Exchange Hacked, Files For Bankruptcy – Inside Bitcoins

By Joseph Young    December 20, 2017

This story was shared from this site

Seoul-Based South Korean bitcoin exchange Youbit has admitted to suffering a major security breach that led to the loss of a fifth of user funds stored on the trading platform.

Youbit to Proceed With Bankruptcy Proceedings

In an announcement, Youbit told its users that they will only be able to withdraw 75 percent of their funds stored on the exchange. The company stated that the rest will be credited to the users after the final bankruptcy proceedings are settled.

The official statement of Youbit read:

“We sincerely apologize about the delay in the our announcement of the hacking attack and security breach we had experienced. Currently, we are cooperating with law enforcement and third party investigators to evaluate the breach. We are trying everything in our capability to minimize the losses of our users and we are considering several ways to handle this situation. We would like to apologize again for disappointing our users.”

More at: Another South Korean Bitcoin Exchange Hacked, Files For Bankruptcy – Inside Bitcoins