Overstock BCH=BTC payment bug fixed

Bug allowed users to 1 Bitcoin Cash instead of 1 Bitcoin
11 January 2018   1344

Coinbase and online retailer Overstock.com eliminated a serious bug that allowed their customers to pay for purchases in Bitcoin Cash instead of Bitcoin. This is reported by KrebsOnSecurity.

Bug was noticed by JB Snyder in early January. When buying goods from Overstock for bitcoins, the site accepted payment from Bitcoin Cash, despite the fact that the price of BCH is approximately 15% of the bitcoin price.

To verify this information, KrebsOnSecurity author Brian Krebs bought a set of three outdoor solar lamps worth $ 78.27, for which Overstock billed 0.00475574 BTC.

Solar Lamps Bill
Solar Lamps Bill

Going to Coinbase, Krebs sent 0.00475574 Bitcoin Cash instead of bitcoin. The site replied that the payment was made. A few seconds later Overstock sent the message of a successful purchase. Thus, Krebs instead of $ 78 paid only $ 12. When the journalist canceled the order, to his surprise the system returned bitcoins, and not Bitcoin Cash.

Return Bill
Return Bill

Over the solution of the problem, Coinbase and Overstock worked together for several hours. According to representatives of Coinbase, the problem was caused by the fact that Overstock incorrectly used the return values in the API for integration with trading partners. At the moment, this bug has already been fixed.

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   168

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.