Genesis Mining hacked and funds stolen

Cloud mining service Genesis Mining reports the theft of funds
27 July 2017   2527

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen

One of the leading hashpower provider for Bitcoin and Altcoins, cloud mining service Genesis Mining, reports the theft of funds from the company's accounts due to an attack by unknown hackers.

The official statement notes that technical problems forced the company to suspend payments to their customers, however all the lost funds are to be reimbursed in full.


Distributed database that is used to maintain a continuously growing list of records, called blocks

As Marco Streng, CEO Genesis Mining, details, they detected an unauthorized intrusion by an attacker on the night of Friday, July 21st. This attacker gained access to a hot wallet and was able to transfer funds which we will reimburse in full. Shortly after the intrusion was detected, the team was able to shut down the attack. As reported, the company immediately took steps to mitigate the issue, including enhancing the monitoring and detection capabilities, and further hardening the environment. Thus, one of those increased security measures was to delay our daily payouts.

Genesis Mining immediately engaged 3rd party cyber security advisory to investigate the attack.

The company assures the clients that the mining operation was not affected and is running as normal.

Every single one of our customers will receive their missing payouts as soon as we’re sure about the safety and integrity of our payment system. One of the advantages of the daily payout system is that it helps prevent actual losses, even in moments like these that cause delays.

Marco Streng
CEO Genesis Mining

Genesis Mining will cover the full amount, and the clients will receive all of your payouts.

SEC May Signal Some Flexibility on ICOs

Looks like senior advisor for digital assets and innovation at SEC is not 100% against ICOs
14 December 2018   41

Some blockchain projects may be able to circumvent the requirements of US securities laws by contacting the Securities and Exchange Commission (SEC) for a so-called non-action letter. As SEC consultant on digital assets and innovations Valerie A. Szczepanik explained, such letters will not be issued often, but this does not mean that they cannot be received at all.

I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want. 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

According to advisor, issuers of tokens have three ways to comply with the requirements of the laws: register an offer of securities, declare an exceptional case, or "make sure they're not a security."

In certain cases, the SEC may decide that “maybe this doesn’t fit the letter of our law or regulation but it fits the spirit and we can accomplish all the goals of investor protection”. In this scenario, the SEC may indeed issue such a letter, which will indicate that its employees do not recommend taking legal measures against a particular issuer.

The letters set forth exactly what the person plans to do or the entity plans to do and if it’s something that the SEC feels comfortable with we can release a no-action letter for exemptive relief saying ‘we can recommend no enforcement action.

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

As reported, her remarks signaling a modicum of flexibility are notable in light of SEC Chairman Jay Clayton’s advice last month to anyone raising money by selling a token that they should “start with the assumption that it is a security.”

Speaking about the principles of recognition of tokens as securities, Valerie recommended to take into account the structure of sales. According to her, only in rare cases the token will not be recognized as a security. Most often, investors expect to profit from investments in such proposals, which is enough to recognize them as the spread of securities.