CNN reports: As the bitcoin craze took off in 2017, a Long Island iced tea company sent its share price spiking as much as 380% merely by announcing a "pivot" to blockchain technology. Long Island Iced Tea Corp. even changed its name to Long Blockchain Corp. At the time, the episode underscored the excessive hype around the crypto space.

Now, regulators say the name change was at the heart of an illegal insider trading scheme.The Securities and Exchange Commission charged three people Friday with insider trading in advance of the announcement that sent Long Island Iced Tea Corp.'s stock price to the moon... December 21, 2017, Long Island Iced Tea Corp., until that point exclusively a soft drink maker, announced its makeover, describing the pivot to blockchain as a "once-in-a-generation opportunity."

Even though the company had no actual business tied to blockchain at the time, and no experience in the cryptocurrency space, its Nasdaq-listed share price skyrocketed and trading volume spiked by 1,000%.
But the company's leading shareholder had told a broker/stockholder who'd then tipped off a stock-trading friend (who within two hours of the announcement ended up with "$160,000 in illicit profits," the SEC said). CNN adds that all three have now been charged with insider trading.

"The SEC said Long Blockchain was delisted by the Nasdaq in February for allegedly making a 'series of public statements designed to mislead investors and to take advantage of the general investor interest in bitcoin and blockchain technology.'"

Bloomberg identifies a variety of cryptocurrency scams, including a "rug pull," where the creators of a new cryptocurrency suddenly cut and run.

"Old-fashioned Ponzi schemes, newly cryptodenominated, have swindled people out of billions too," Bloomberg adds. And a 35-year-old crypto trader living with his parents ("trading meme coins as a full-time job") also tells them about "honey pots," where a coin's creators see a spike in value — and then temporarily disable selling for other holders: It might sound like a joke, given the crypto meltdowns of late, but serious money is at stake here. Billions — real billions — are getting pilfered annually through a variety of cryptocurrency scams. The way things are going, this will only get worse. Back in the Wall Street Dark Ages — six, 12, 18 months ago — these sorts of shenanigans were mostly associated with shlocky brokerages like the one depicted in the 2013 movie The Wolf of Wall Street. In those halcyon days before GameStop, Dogecoin and the rest, schlubs on Long Island might pitch ridiculous over-the-counter stocks to the gullible...

Tokensniffer, aptly named for Shit Coins, claims to have tracked 42,071 tokens and 2,250 scams or hacks. That was as of June 16. More than 200 supposed stings were logged by users during the first two weeks of June alone... His website scrapes data about new meme tokens from popular social media channels and scans the source code... A "smell test" program searches for vulnerabilities. Clones of existing meme tokens are often a red flag. Most recent scams — the site flagged 450 in in one recent 30-day period — were honeypots. Those tend to be easier to spot because of their code, Tokensniffer's creator says. Rug pulls are more complicated.

Such supposed safeguards aside, people are getting scammed in growing numbers. So far this year, over $2.6 billion has been grabbed, according to Chainalysis, a New York-based blockchain researcher. That figure doesn't include a giant Ponzi scheme that just came to light in South Africa. Local authorities put the haul at $3.6 billion worth of Bitcoin. Gob-smacking as all of this might sound, these numbers in fact represent a marked decline from 2019, when fraudsters walked away with an estimated $9 billion. But here's a key difference: the sheer number of people getting hoodwinked. With a few outsize exceptions, most crypto scams seem to be getting smaller. That's the good news. The bad news is that there are more of them, and more people are getting stung. From 2019 to 2020, the number of victims has jumped 48% to an estimated 7.3 million, a figure approaching the official population of Hong Kong. Between the last three months of 2020 and the first three months of 2021, the number of unique scams rose nearly 18%, to 1,335, according to Chainalysis...

Michael Burry, of "The Big Short"-fame, has been warning all of this could all go horribly wrong. An estimated 10,000 new coins have been minted this year. Who can say how many will turn out to be shams? So many Shit Coins are flying around out there, and prices can be so volatile, that many people can't even tell if they've been scammed... This much is sure: no one complains when they're making money. It's when people start losing money — and lately, many have been — that they scream they've been taken.
"A decade after Bitcoin was created, regulators are still grappling with how to police cryptocurrencies," Bloomberg adds, "when the whole point is that they operate without governments or central banks."

A Swedish man wanted by the United States for defrauding over 3,500 victims of more than $16 million has been sentenced to 15 years in prison for securities fraud, wire fraud, and money laundering, the Department of Justice said Thursday. CNBC reports: The DOJ says 47-year-old Roger Nils-Jonas Karlsson ran an investment fraud scheme from 2011 until his arrest in Thailand in June 2019. He pleaded guilty in March. According to court documents, Karlsson encouraged victims to buy shares in a scheme called "Eastern Metal Securities" using cryptocurrencies like bitcoin, promising "astronomical returns" tied to the price of gold. The funds paid by these victims were instead directed to Karlsson's personal bank accounts, where the money was put toward expensive homes, a racehorse, and a resort in Thailand. Karlsson has been ordered to forfeit this Thai resort and various other properties and accounts as part of the sentence.

Karlsson maintained the ruse, in part, by offering updates and account statements to victims. He also explained delayed payouts by falsely claiming to be working with the Securities and Exchange Commission. Karlsson's fraud targeted financially insecure investors, and the U.S. is seeking restitution on behalf of those victims. In addition to having to pay back $16,263,820, a restitution order is expected to be entered by the court within 90 days.

An anonymous reader quotes a report from Ars Technica: The fossil fuel power plant that a private equity firm revived to mine bitcoin is at it again. Not content to just pollute the atmosphere in pursuit of a volatile crypto asset with little real-world utility, this experiment in free marketeering is also dumping tens of millions of gallons of hot water into glacial Seneca Lake in upstate New York. "The lake is so warm you feel like you're in a hot tub," Abi Buddington, who lives near the Greenidge power plant, told NBC News. In the past, nearby residents weren't necessarily enamored with the idea of a pollution-spewing power plant warming their deep, cold water lake, but at least the electricity produced by the plant was powering their homes. Today, they're lucky if a small fraction does. Most of the time, the turbines are burning natural gas solely to mint profits for the private equity firm Atlas Holdings by mining bitcoin.

Atlas, the firm that bought Greenidge has been ramping up its bitcoin mining aspirations over the last year and a half, installing thousands of mining rigs that have produced over 1,100 bitcoin as of February 2021. The company has plans to install thousands more rigs, ultimately using 85 MW of the station's total 108 MW capacity. [...] The 12,000-year-old Seneca Lake is a sparkling specimen of the Finger Lakes region. It still boasts high water quality, clean enough to drink with just limited treatment. Its waters are home to a sizable lake trout population that's large enough to maintain the National Lake Trout Derby for 57 years running. The prized fish spawn in the rivers that feed the lake, and it's into one of those rivers -- the Keuka Lake Outlet, known to locals for its rainbow trout fishing -- that Greenidge dumps its heated water. Rainbow trout are highly sensitive to fluctuations in water temperature, with the fish happiest in the mid-50s. Because cold water holds more oxygen, as temps rise, fish become stressed. Above 70 F, rainbow trout stop growing and stressed individuals start dying. Experienced anglers don't bother fishing when water temps get to that point.

Greenidge has a permit to dump 135 million gallons of water per day into the Keuka Lake Outlet as hot as 108 F in the summer and 86 F in the winter. New York's Department of Environmental Conservation reports that over the last four years, the plant's daily maximum discharge temperatures have averaged 98 in summer and 70 in winter. That water eventually makes its way to Seneca Lake, where it can result in tropical surface temps and harmful algal blooms. Residents say lake temperatures are already up, though a full study won't be completed until 2023.

"A U.K. high court told Bitcoin.org it can no longer share the 2008 white paper that outlines what bitcoin is on its website," reports Business Insider, "delivering a victory to Craig Wright, a computer scientist who claimed he wrote the original document." Wright won the copyright-infringement case he brought by default, after the website's anonymous founder, known as Cobra, decided not to speak in his defense in the proceedings in London. The ruling on Monday means Bitcoin.org must take the document down from its website. It must also pay Wright £35,000 ($48,600) toward legal costs, as well as put a notice of the court's order on its website for six months, said Ontier, the law firm representing Wright...

"This is an important development in Dr Wright's quest to obtain judicial vindication of his copyright in his white paper," said Simon Cohen, a senior associate at London-based Ontier... The Australian computer scientist claimed to be the original author of the white paper that was published in 2008 and describes what bitcoin is and how it works. Ontier said Wright took Cobra to court in order to prevent supporters of assets such as Bitcoin Core from using the white paper to mis-represent those assets as bitcoin...

"I didn't turn up because I didn't want to expose my identity," Cobra told Insider in a tweet.
Cobra shared more philosophical thoughts on Twitter: All your fiat based assets are ultimately secured by the same legal system that today made it illegal for me to host the Bitcoin whitepaper because a notorious liar swore before a judge that he's Satoshi. A system where 'justice' depends on who's got the bigger wallet. I don't think you could get a better advertisement of *why* Bitcoin is necessary than what happened today. Rules enforced through cryptography are far more superior than rules based on whoever can spend hundreds of thousands of dollars in court.
In later tweets he added: Sucks when you have billionaires determined to bury you in endless frivolous litigation... Normally it's the person who owes money who runs and hides, but I've repeatedly reached out to CSW to pay him his court ordered costs, and he doesn't seem to want to receive it. Perhaps he is running away from his money so he can make me in "contempt of court"?

A Los Angeles summer camp is offering children as young as 5 "a crash course in all things crypto," reports NBC News: In a sign of the bubbling enthusiasm for digital currencies, the Crypto Kids Camp began Monday in a warehouse in a busy port district. Over five days, the camp combines activities that would be common at any summer camp with a crash course in how to think about, buy and even mine bitcoin and other cryptocurrencies... The camp is part of a trend toward young adults and even children becoming immersed in cryptocurrency through online trading exchanges, school clubs, social media and other outlets. In Georgia, state lawmakers this year considered a bill to require high school students to take a course on personal finance including cryptocurrency...

Children attend the camp for a one-week session where each day they learn about a different emerging technology. Camp founder Najah Roberts has an acronym, BEASTMODE, to keep track of the breadth of material they cover: Blockchain, Evolution of money, Artificial intelligence, Security (cyber), Technology (virtual reality), Mining and machine learning, Online gaming, Drones and Engineering.

Campers this week included children from as far away as Texas and New Jersey, staying with parents in hotel rooms, she said. There's no minimum age to buy or hold an online token such as bitcoin, just as there isn't a minimum age to hold U.S. dollars and cents. Many cryptocurrency exchanges have a minimum age in their terms of service, often 18 years old, and enforce the requirement through banking-style know-your-customer rules, but not all exchanges do....

Eventually they want to encourage public schools to adopt similar programs, not just in Los Angeles but also nationwide. "We want to get it set up to the point where it's in each city," she said.
One 18-year-old said the camp taught them how to build a mining machine from scratch that helped them make $200.

Bitcoin mining just became easier and more profitable, reports CNBC: The world has known for months that more than half the world's bitcoin miners would be going dark as China cracked down on mining. Now that it's happened, the bitcoin algorithm has adjusted accordingly to make sure miner productivity doesn't continue to fall off a cliff. That adjustment — which took effect early Saturday morning — also means that way more cash is going to the bitcoin miners who remain online. "This will be a revenue party for miners," said bitcoin mining engineer Brandon Arvanaghi. "They suddenly own a meaningfully larger piece of the pie, meaning they earn more bitcoin every day..."

"For the first time in the bitcoin network's history, we have a complete shutdown of mining in a targeted geographic region that affected more than 50% of the network," said Darin Feinstein, founder of Blockcap and Core Scientific. More than 50% of the hashrate — the collective computing power of miners worldwide — has dropped off the network since its market peak in May. Fewer people mining means that fewer blocks are solved each day. Typically, it takes about 10 minutes to complete a block, but Feinstein told CNBC the bitcoin network has slowed down to 14- to 19-minute block times. This is precisely why bitcoin re-calibrates every 2016 blocks, or about every two weeks, resetting how tough it is for miners to mine.

On Saturday, the bitcoin code automatically made it about 28% less difficult to mine — a historically unprecedented drop for the network — thereby restoring block times back to the optimal 10-minute window...

"We are expecting a period of much higher mining profitability for Compass Mining clients," said Whit Gibbs, CEO and founder of Compass, a bitcoin mining service provider. "We expect miners to be approximately 35% more profitable." Blockcap's Feinstein agrees. "We are expecting a revenue and profit increase for the foreseeable future. This was an unexpected gift to the network, not just on revenues but on decentralization and sustainable energy metrics."
CNBC also spoke to the former Chief Mining Officer at Greenridge Generation, the New York-based, coal-fired power plant that converted to large-scale bitcoin mining.

"Zhang estimates revenues of $29 per day for those using the latest-generation Bitmain miner, versus $22 per day prior to the change."

An anonymous reader quotes a report from PC Gamer: An oversight in accounts used to test Microsoft's payment systems let one engineer swindle his way into over $10 million after selling Xbox Gift Cards for Bitcoin over two years, a new report from Bloomberg revealed this week. In order to make sure its payment systems work, Microsoft employs engineers to "simulate" purchases on its stores. But soon after joining the company in 2017, Volodymyr Kvashuk discovered that there was a flaw in the accounts used to test purchases. See, these simulated accounts are usually flagged as such by the system, and won't send you physical goods if you tried to buy, say, a new gamepad from its site. But if you tested a purchase of Xbox Gift Cards, you'd still receive a completely valid 25-digit code. Kvashuk could've easily reported this to his bosses. But with unlimited free codes at his fingertips, he chose a different option instead.

At first, Kvashuk generated himself a handful of codes -- a cheeky $5 or $10 here or there. But there was the opportunity to make massive, life-changing sums of money off this exploit. He began cycling through mock profiles belonging to his colleagues to hide his tracks, automating the process with a bespoke piece of software prosecutors would later describe as "created for one purpose, and one purpose only: to automate embezzlement and allow fraud and theft on a massive scale." After acquiring these codes, Kvashuk would head to crypto marketplaces like Paxful to find prospective sellers. He'd sell them in bulk at a relative discount, which buyers would then go on to sell to folks who wanted to use the codes. Money laundering sites like ChipMixer would let him hide his trail, and the proceeds went towards facilitating an increasingly lavish lifestyle. [...] Microsoft was eventually clued in to Kvashuk's antics after noticing a sharp spike in gift card transactions, with federal agents eventually raiding his home in July 2019. In court, Kvashuk tried to argue that the mass theft was simply an experiment to increase store spending. Obviously, it didn't fly. Kvashuk was sentenced to 9 years in prison, likely deported back to his home country of Ukraine, and will be charged restitution of $8.3 million.

Sam Altman has a new startup that intends to give a special type of cryptocurrency to every person on earth. But first, it wants to scan everybody's eyeballs. From a report: Altman, the former head of the Silicon Valley business incubator Y Combinator, is one of three founders of the company Worldcoin. Among the many parts of its plan, Worldcoin has designed an orb-shaped device that would scan a person's iris to construct a unique personal identifier. The company is backed by Andreessen Horowitz, the venture capital arm of Coinbase Global Inc., LinkedIn founder Reid Hoffman and Day One Ventures. It recently raised about $25 million from investors.

Altman, 36, said in an interview that he conceived the idea in late 2019. The intention was to use cryptocurrency to spread money around equitably, inspired by the trendy economic theory known as universal basic income. Altman was the first investor in Worldcoin but said he has no role in day-to-day operations and mainly serves as an adviser to the company when needed. "I've been very interested in things like universal basic income and what's going to happen to global wealth redistribution and how we can do that better," Altman said. "Is there a way we can use technology to do that at global scale?"

The cryptocurrency aficionados' mantra that Bitcoin is equivalent to digital gold is winning converts among the world's biggest holders of the precious metal. From a report: In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That's despite outright hostility toward the asset class from the central bank and a proposed trading ban. Richi Sood, a 32-year-old entrepreneur is one of those who swerved from gold to crypto. Since December, she's put in just over 1 million rupees ($13,400) -- some of it borrowed from her father -- into Bitcoin, Dogecoin and Ether.

[...] She's part of a growing number of Indians -- now totalling more than 15 million -- buying and selling digital coins. That's catching up with the 23 million traders of these assets in the U.S. and compares with just 2.3 million in the U.K. The growth in India is coming from the 18-35 year old cohort, says the co-founder of India's first cryptocurrency exchange. Latest World Gold Council data indicated Indian adults under age 34 have less appetite for gold than older consumers.

Billionaire bitcoin owner Mircea Popescu has reportedly died, leaving behind a cache of virtual currency and a controversial crypto legacy. MarketWatch reports: The bitcoin pioneer, who was believed to own over $1 billion in the world's No. 1 crypto, making him, at the time, one of the asset's larger single-holders, died off the coast of Costa Rica, according to a Spanish-language publication, Teletica.com, which reported last week that a foreigner had drowned at Playa Hermosa de Garabito, Puntarenas in Costa Rica, describing him as a 41-year old of Polish origin. Popescu was viewed as a pioneer in digital assets and one of the earliest adopters. An article in Bitcoin Magazine written by Pete Rizzo said that Popescu was known for starting MPEx, a Bitcoin securities exchange, around the same time as the Coinbase Global launched. At its mid-April peak this year, Popescu's bitcoin holdings would have been worth nearly $2 billion. Further reading: Bitcoin Magazine, Coinspeaker

New research by two leading scientists says some dire warnings of environmental damage from technology are overstated. From a report: The giant tech companies with their power-hungry, football-field-size data centers are not the environmental villains they are sometimes portrayed to be on social media and elsewhere. Shutting off your Zoom camera or throttling your Netflix service to lower-definition viewing does not yield a big saving in energy use, contrary to what some people have claimed. Even the predicted environmental impact of Bitcoin, which does require lots of computing firepower, has been considerably exaggerated by some researchers.

Those are the conclusions of a new analysis by Jonathan Koomey and Eric Masanet, two leading scientists in the field of technology, energy use and the environment. Both are former researchers at the Lawrence Berkeley National Laboratory. Mr. Koomey is now an independent analyst, and Mr. Masanet is a professor at the University of California, Santa Barbara. (Mr. Masanet receives research funding from Amazon.) They said their analysis, published earlier this month as a commentary article in Joule, a scientific journal, was not necessarily intended to be reassuring. Instead, they said, it is meant to inject a dose of reality into the public discussion of technology's impact on the environment. The surge in digital activity spurred by the Covid-19 pandemic, the scientists said, has fueled the debate and prompted dire warnings of environmental damage. They are concerned that wayward claims, often amplified by social media, could shape behavior and policy.

The Wall Street Journal reports: Authorities in the U.K. and Japan took aim at affiliates of Binance Holdings Ltd., the world's largest cryptocurrency exchange network, in the latest regulatory crackdown on the wildly popular trade in bitcoin and other digital assets. The U.K. Financial Conduct Authority, the country's lead financial regulator, told consumers Saturday that Binance's local unit wasn't permitted to conduct operations related to regulated financial activities...

Binance Markets Ltd., the company's U.K. arm, applied to be registered with the Financial Conduct Authority and withdrew its application on May 17. "A significantly high number of cryptoasset businesses are not meeting the required standards" under money-laundering regulations, said a spokesperson for the FCA in an email. "Of the firms we've assessed to date, over 90% have withdrawn applications following our intervention."

Japan's financial watchdog issued a statement on June 25, saying that Binance isn't registered to do business in the country...

As of April, Binance operated the largest cryptocurrency exchange in the world by trading volume, allowing tens of billions of dollars of trades to pass through its networks, according to data provider CryptoCompare. It was founded in 2017 and initially based in China, later moving offices to Japan and Malta. It recently said it is a decentralized organization with no headquarters... The FCA move doesn't ban customers from using Binance completely; U.K. customers can continue to use Binance's non-U.K. operations for activities the FCA doesn't directly regulate, such as buying and selling direct holdings in bitcoin.
The Financial Times called the move "one of the most significant moves any global regulator has made against Binance" and "a sign of how regulators are cracking down on the cryptocurrency industry over concerns relating to its potential role in illicit activities such as money laundering and fraud, and over often weak consumer protection." But more countries are also taking action, Reuters reports: Last month, Bloomberg reported that officials from the U.S. Justice Department and Internal Revenue Service who probe money laundering and tax offences had sought information from individuals with insight into Binance's business. In April, Germany's financial regulator BaFin warned the exchange risked being fined for offering digital tokens without an investor prospectus.
And CoinDesk adds: Binance is no longer open for business in Canada's most populous province, apparently choosing to close shop rather than meet the fate of other cryptocurrency exchanges that have had actions filed against them for allegedly failing to comply with Ontario securities laws.

Millions of Americans received stimulus checks in the past year, but Salvadoreans will be soon be receiving one paid in Bitcoin. From a report: The Central American country will give U.S. $30 worth of Bitcoin to each adult citizen that downloads and registers on the country's new cryptocurrency app, Chivo, President Nayib Bukele said during a televised speech Thursday. The $30 promotion is the nation's latest effort to push adoption of Bitcoin as legal currency. Bukele announced via video at the Bitcoin 2021 conference in Miami earlier this month that he would be introducing legislation to make Bitcoin legal tender. His "Bitcoin Law" goes into effect on Sept. 7.

"This law is made to generate employment, to generate investments, and at no moment will it affect anybody, like opponents have tried to say with their dirty campaign," Bukele said during the hour-long speech Thursday. Chivo, the crypto wallet whose name translates to "goat" in English, will be compatible with both dollars and Bitcoin, and will be available on both iOS and Android devices, Bukele said. Since former Salvadorean President Francisco Flores passed a 2001 dollarization law, the U.S. dollar has been the most used legal tender in the country.

An anonymous reader quotes a report from VentureBeat: Blockchain.com will let people use human-readable usernames in blockchain transactions thanks to a partnership with Unstoppable Domains. San Francisco-based Blockchain.com now supports Unstoppable Domains, a domain name provider for blockchains, which are the secure and transparent digital ledgers behind cryptocurrencies. That's a big deal because Blockchain.com is the world's largest crypto wallet provider, and people have been stumbling around with encoded names that are impossible to remember. And when people lose these names for their wallets or the passwords that go with them, they are often unable to recover their names. This particular deal won't help you with your passwords, but it does help with usernames. And that helps people send money to each other more easily, with fewer mistakes. Traditionally, sending Bitcoin, Ethereum, Doge, and other cryptocurrencies requires entering the recipient's 25- to 42-digit alphanumeric wallet address, said Matthew Gould, CEO of Unstoppable Domains, said in an interview with VentureBeat. If a person mistypes or miscopies a wallet address, those funds can be lost forever. Now, instead of "156i6HJfMWb1h2BEsKpfvZ2tQugqo4vs2w," users can simply type "[YourName].crypto" to send money to others or transfer it between accounts. "What is funny is this is a case of history repeating itself because we did the exact same thing with computer networks in the 90s, where the very first way to look up websites was actually using IP addresses," Gould said. "You actually had to remember long strings of numbers in order to find the very first content on the internet. And then they invented a naming service for those so that you could use .com names. It's a very similar thing."

A pair of South African brothers have vanished, along with Bitcoin worth $3.6 billion from their cryptocurrency investment platform. From a report: A Cape Town law firm hired by investors says they can't locate the brothers and has reported the matter to the Hawks, an elite unit of the national police force. It's also told crypto exchanges across the globe should any attempt be made to convert the digital coins. Following a surge in Bitcoin's value in the past year, the disappearance of about 69,000 coins -- worth more than $4 billion at their April peak -- would represent the biggest-ever dollar loss in a cryptocurrency scam. The incident could spur regulators' efforts to impose order on the market amid rising cases of fraud.

The first signs of trouble came in April, as Bitcoin was rocketing to a record. Africrypt Chief Operating Officer Ameer Cajee, the elder brother, informed clients that the company was the victim of a hack. He asked them not to report the incident to lawyers and authorities, as it would slow down the recovery process of the missing funds. Some skeptical investors roped in the law firm, Hanekom Attorneys, and a separate group started liquidation proceedings against Africrypt. "We were immediately suspicious as the announcement implored investors not to take legal action," Hanekom Attorneys said in response to emailed questions. "Africrypt employees lost access to the back-end platforms seven days before the alleged hack." The firm's investigation found Africrypt's pooled funds were transferred from its South African accounts and client wallets, and the coins went through tumblers and mixers -- or to other large pools of bitcoin -- to make them essentially untraceable.

An anonymous reader quotes a report from Ars Technica: While bitcoin leaves a visible trail of transactions on its underlying blockchain, the niche "privacy coin" monero was designed to obscure the sender and receiver, as well as the amount exchanged. As a result, it has become an increasingly sought-after tool for criminals such as ransomware gangs, posing new problems for law enforcement. "We've seen ransomware groups specifically shifting to monero," said Bryce Webster-Jacobsen, director of intelligence at GroupSense, a cyber security group that has helped a growing number of victims pay out ransoms in monero. "[Cyber criminals] have recognized the ability for mistakes to be made using bitcoin that allow blockchain transactions to reveal their identity."

Russia-linked REvil, the notorious ransomware group believed to be behind the attack this month on meatpacker JBS, has removed the option of paying in bitcoin this year, demanding monero only, according to Brett Callow, threat analyst at Emsisoft. Meanwhile, both DarkSide, the group blamed for the Colonial Pipeline hack, and Babuk, which was behind the attack on Washington DC police this year, allow payments in either cryptocurrency but charge a 10 to 20 percent premium to victims paying in riskier bitcoin, experts say. Justin Ehrenhofer, a cryptocurrency compliance expert and member of the monero developer community, said that at the beginning of 2020, its use by ransomware gangs was "a rounding error." Today he estimates that about 10 to 20 percent of ransoms are paid in monero and that the figure will probably rise to 50 percent by the end of the year.

The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, took a jab at Dogecoin (DOGE) last week by referring to the memecoin as a Ponzi scheme, upping his rhetoric against cryptocurrencies. Cointelegraph reports: Kashkari's comments were in response to a LinkedIn poll by Paul Grewal, the chief legal officer and corporate secretary of Coinbase, who asked his connections about the proper way to pronounce "Doge." "The right pronunciation is pon-zi," Kashkari quipped.

This isn't the first time Kashkari has taken aim at cryptocurrencies. In February 2020, he said digital assets like Bitcoin (BTC) lack the basic tenants of a stable currency and praised the Securities and Exchange Commission for "cracking down" on initial coin offerings. Kashkari is not a member of this year's Federal Open Market Committee, the group responsible for setting United States monetary policy. The Minneapolis branch of the Fed will serve as an alternate FOMC member in 2022 before rotating back onto the committee as a voting member in 2023.

An anonymous reader quotes a report from Gizmodo: Bitcoin continued its dramatic plunge to $32,281 Monday morning, down 17.65% from a week earlier as some of China's largest bitcoin mining farms were shut down over the weekend. The bitcoin mining facilities of Sichuan Province received an order on Friday to stop doing business by Sunday, according to Chinese state media outlet the Global Times. The Sichuan Provincial Development and Reform Commission and the Sichuan Energy Bureau issued an order to all electricity companies in the region on Friday to stop supplying electricity to any known crypto mining organizations, including 26 firms that had already been publicly identified, according to the Global Times.

It seems that some local miners were optimistic that Sichuan's abundant hydroelectric energy would insulate the region from a cryptocurrency crackdown by authorities, but that optimism was obviously misplaced. "We had hoped that Sichuan would be an exception during the clampdown as there is an electricity glut there in the rainy season. But Chinese regulators are now taking a uniform approach, which would overhaul and rein in the booming Bitcoin mining industry in China," Shentu Qingchun, CEO of a Shenzhen crypto company told the Global Times. Videos on social media sites purported to show miners in Sichuan turning off their mining machines and packing up their businesses. Miners in China are now looking to sell their equipment overseas, and it appears many have already found buyers.

Bloomberg Businessweek describes what happened when an anonymous donor started "seeding" the tiny El Salvadoran surfing village of El Zonte (population: 3,000) with Bitcoin, turning it into the world's biggest Bitcoin experiment. Workers now receive their salaries and pay bills in Bitcoin, tourists can buy pupusas with a special Bitcoin payment app, and community projects are financed with Bitcoin donations. According to Jorge Valenzuela, an upbeat 32-year-old surfing aficionado who leads the volunteers, "it has changed my town...." [T]he most striking thing these days is the orange "B" — the international symbol for Bitcoin — splashed on garbage cans, near the entrance of the dirt-floor pizza joint, and hanging on the wall near the surf shack at the beachfront hotel. The town has never had a bank. Now the lone ATM buys and sells Bitcoin... In El Zonte, Bitcoin is a possible solution to an actual problem, as opposed to a solution in search of a problem, which is how critics describe its role in, say, the U.S...

But it was the pandemic that ultimately jump-started the project. When El Salvador's tourism industry and El Zonte's economy collapsed, Michael Peterson started making monthly transfers of about $35 in Bitcoin to 500 families around town [on behalf of an anonymous donor]. He used Wallet of Satoshi, one of the many existing smartphone apps created for small transactions using Bitcoin, which is notoriously impractical — expensive and slow — for everyday purchases. As more stores began asking how they could accept Bitcoin, Peterson decided El Zonte needed its own app. The Bitcoin Beach Wallet, which launched in September, similarly uses technology that allows for small transactions. It shows users how much they hold in Bitcoin and greenbacks and where they can spend it. Shops in town price everything in dollars, whether the underlying transaction is in Bitcoin or not. A cappuccino always costs $3.50, even if Bitcoin's value has just jumped or dropped. In this way, it behaves more like a token than a currency...

He says that 18 months after the project launched, roughly 90% of El Zonte's households are interacting with the currency regularly. "It's crazy how fast Bitcoin has caught on," he says. Businesses are using it on their own to pay bills and accept payments. Residents use transfers to the Strike app, the ATM, and peer-to-peer transactions to move money back and forth between Bitcoin and cash... Many business owners say it makes up just a small fraction of sales. Although some 85% of families have access to smartphones, many still live in cramped houses with dirt floors and tin roofs. But for others, it's clearly been life-altering. A construction crew chief pays his dozen or so employees in Bitcoin. He was sick of losing them for a half-day every month so they could travel to the nearest bank, an hourlong bus ride away, on payday...

El Zonte is among the longest-running experiments of its kind, but it's still largely untested. "I'd be very interested in seeing what happens if we enter a bear market," says McCormack, the British podcaster. "If you're a shop owner and you have $50 a day in Bitcoin sales and all the sudden that goes up to $60, that's cool. But what happens when it starts going down to $40 or $30?"