German Authorities to Sell $14M Worth Crypto Due to Risks

The Bavarian Public Prosecutor's Office issued an order to sell the seized cryptocurrency; main reason - price drop risk
29 May 2018   791

Concerns over the possibility of a further decline in the prices of digital assets forced the German authorities to sell the confiscated bitcoins and other crypto-currencies for an amount equivalent to $ 14 million, CoinDesk reports.

The Bavarian Public Prosecutor's Office issued an order to sell the seized cryptocurrency on February 20, when the bitcoin rate returned to $ 10,000 after reaching a minimum below $ 6,000.

The liquidation of the cryptocurrency took about two months. A total of 1,312 bitcoins, 1 399 Bitcoin Cash, 1 312 Bitcoin Gold and 220 Ethereum were sold for 1,600 transactions through the German trading platform.

All crypto coins were confiscated during two ongoing investigations of Bavarian law enforcement agencies dealing with cyber security. Although the charges in these cases have not been brought to the present time, German laws allow the liquidation of confiscated assets if there is a risk of their loss.

Since all cryptocurrencies are exposed to the risk of high price fluctuations or even total loss, the Bayern Central Office of Cybercrime ordered an emergency sale.

German state prosecutors 

As the department will dispose of the proceeds, it is still unknown, since the final decision on the cases was not rendered.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   975

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.