Electrum Pro Wallet to be Suspected of Seed Keys Stealing

Electrum wallet team published evidence at GitHub that the Electrum Pro app is actually fraudulent and steals user's seed keys
10 May 2018   1380

The document on GitHub contains a step-by-step instruction on the decompilation of Electrum Pro. In addition to the fact that the new application clearly used a foreign brand without permission, its creators also launched the website electrum.com, very similar to the original page - electrum.org.

Recently Electrum team presented strong evidence of dishonesty of the developers of Electrum Pro. So, in a certain part of the code (lines 223-248 in electrumpro_keystore.py), a function was found for copying custom seed-phrases and sending them to the electrum.com.

Note that such cryptographic keys allow an application to access the contents of bitcoins-addresses, tied to specific purses. When sending seed phrases to electrum.com, site owners can use them to steal cryptocurrency from accounts.

According to the developers of Electrum, when creating or restoring a Electrum Pro a copy of the seed phrases is always automatically sent to electrum.com.

The developers noted that they analyzed only the binary files Electrumpro-4.0.2.dmg (macOS) and ElectrumPro-4.0.2-Standalone.zip (Windows), but with a certain degree of certainty it they assumed that the rest of the files for Windows are malicious.

Users who stored their funds with Electrum Pro are advised to transfer their coins to new wallets as soon as possible. At the same time, no reports of the theft of bitcoins with Electrum Pro have yet been reported.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   148

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.