Coinbase Custody announced

A Digital Currency Custodian For Institutions announced by the US cryptocurrency exchange Coinbase 
17 November 2017   714

Californian company Coinbase announced the launch of a new company, the main purpose of which will be to assist institutional investors in the safe storage of digital assets. The new company was named Coinbase Custody.

According to the CEO of Coinbase, over the past year, more than 100 hedge funds targeting digital currencies have been created, and even more traditional institutional investors are beginning to view digital assets as one of the options. In addition to traditional hedge funds, it also deals with family funds, capital saving funds and other types of conservation and asset growth.

By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.
 

Brian Armstrong

Co-founder and CEO, Coinbase 

According to Brian Armstrong, institutional clients require:

  • Strict financial controls (multiple signers, audit trails, limits, etc)
  • Dedicated account representatives and phone support
  • SLAs on funds transfers
  • A regulated digital currency custodian
  • Multi-user accounts with separate permissions
  • Support for a wide range of digital assets and currencies
  • Insurance (in some cases)
  • And high levels of cyber and physical security

Coinbase is well positioned to launch this product. We already store billions of dollars worth of digital assets on behalf of our customers. We serve thousands of institutions via our GDAX product, the leading digital currency exchange in the U.S. We’ve raised $216M from venture capital firms and financial institutions like the NYSE/ICE, USAA, BBVA, Westpac, and MUFG. And we have approximately 200 employees working across our three offices in New York, London, and San Francisco with deep industry knowledge. 
 

Brian Armstrong

Co-founder and CEO, Coinbase 

The statement notes that in the coming years Coinbase Custody will help significantly increase the flow of institutional money into digital currencies.

The product will be gradually introduced throughout 2018 and will be available only to investors willing to make a minimum purchase of $ 10 million.

First real-life cryptocurrency robbery reported in Taiwan

Four men stole 5 million Taiwanese dollar worth of Bitcoin, the police has already arrested the suspects
22 February 2018   57

Bitcoin has attracted lots of unwanted attention from hackers and scammers alike. Recently not a week passes without news of an exchange or user being hacked or some company's computers being hijacked to mine cryptocurrency. And now Taiwanese news outlets report first real-life robbery of Bitcoin in their country.

The robbery took place in Taichung, Taiwan's central city. The police reports three men being involved in the robbery itself and one as a planner. Criminals persuaded the victim to meet with them face-to-face under the guise of being interested in buying Bitcoin from him. After the victim showed the robbers the proof of his bitcoins on his phone, the men attacked him and his friend and transferred 18 bitcoins worth 5 million Taiwanese dollar via the phone wallet.

The suspects then forced the unfortunate seller to drink strong local liquor to make everything look like a drunken fight had taken place. The police arrived at the scene after receiving the reports of a fight and found two victims. Two of the offenders had fled, but the third has been arrested at the scene of the crime. He later provided investigation with information about his accomplices. They were arrested soon after.

The police later apprehended the man believed to be the mastermind behind the plan. All this was released in the yesterday's report by the Taiwanese law enforcement and the case is already viewed as “the first domestic case of bitcoin robbery”. The report doesn't mention if the crypto was returned to the rightful owner.

Similar cases has been rumored to happen in the US, but no records are released as of yet. So the unofficial governmental advice is to be more cautious of the buyers requesting face to face meetings in the light of this event.