Russian Bank to Trade Crypto Overseas Despite Regulations

The state-owned russian bank Sberbank is going to sell well-known cryptocurrencies to customers abroad
31 January 2018   345

Sberbank is the largest state-owned bank in Russia and third largest in Europe with the major part of Sberbank subsidiaries (52%) owned by Russian Government. Russian laws prohibit trading cryptocurrencies, and selling crypto within the country is illegal, but Sberbank does not want to lose the possibility to provide their services for clients.

Andrey Shemetov, Sberbank’s Head of Global Markets, claimed that the bank is developing a strategy for trading cryptocurrencies overseas in order to avoid violating domestic rules. Sberbank aspires to satisfy the interests of clients that is why it needs to gain access to a wide range of products.

Anton Siluanov, the Minister of Finance of Russia, published draft law on the regulation of digital assets in Russia that is expected come into force in September of 2018.

The only solution found for crypto trading is Swiss branch of Sberbank called AG. Moreover, Sberbank’s Head of Global Markets said that Swiss colleagues were setting up an infrastructure for trading cryptocurrency. As a first step, the product will be available only to legal entities.

Bitcoin Gold hit by Malicious Miner`s Double Spend Attack

An evil-minded miner efficiently made a double spend attack on the Bitcoin Gold network, making BTG at least the third altcoin to succumb to a network attack
23 May 2018   123

Edward Iskra, Bitcoin Gold director of communications first admonished clients about the attack on May 18, reporting that an evil-minded miner was using the exploit to steal means from cryptocurrency exchanges.The miner bought at least 51 percent of the network’s total hashpower, which provided them with temporary control of the blockchain. Gaining this much hashpower is extremely expensive — even on a smaller network like bitcoin gold — but it may be monetized in tandem with a double spend attack.

The attacker, after getting the control of the network, started depositing BTG at crypto  exchanges while also intending to send those same coins to a wallet under their control. Generally, the blockchain would resolve this by including only the first transaction in the block, but the attacker managed to reverse transactions as they had majority control of the network.

As a result, they were able to invest funds on exchanges and withdraw them again soon, after which they repealed the initial transaction. This way they could send the coins they had primarily deposited to another wallet. 

An address of bitcoin gold connected with the attack has got more than 388,200 BTG since May 16 (basically from transactions it sent to itself). All of those transactions were associated with the double spend exploit, the attacker could have stolen as much as $18.6 million worth of funds from exchanges. The last transaction was sent on May 18, but the attacker could resume it if they still have access to enough hashpower to reach the control of the blockchain.

Bitcoin gold’s developers recommended exchanges to resist the attack by reaching the number of confirmations acquired before they lended deposits to client accounts. Blockchain data displays that the attacker reversed transactions as far back as 22 blocks, allowing developers to advise raising confirmation requirements to 50 blocks.