Russian startup can't withdraw funds from Poloniex

Russian startup Soundchain and several other companies have troubles with withdrawing funds from Poloniex 
21 August 2017   798

Russian blockchain startup Soundchain reports on problems with the Poloniex cryptocurrency exchange. Thus, the company can not withdraw their funds after the change in the Poloniex's policy towards citizens of the countries against which the USA sanctions are imposed. 

As shown, among the other provisions in paragraph one, there are now a couple of sentences which, in fact, support sanctions against Russia by the termination of services to the Russian citizens. 

Poloniex Policy Update Poloniex Policy Update

Artem Abaev, founder of Soundchain, claims that Soundchain team asked the exchange support to close the account and withdraw funds. However, Poloniex responded that the exchange no longer works with the country where Soundchain is based, therefore the company needs to withdraw funds on their own.

According to Abaev, the Soundchain team responded immediately and attached a screenshot showing the impossibility of independent withdrawal, since the links to the withdrawal confirmation by mail did not work:

Poloniex funds withdrawal problemsPoloniex funds withdrawal problems
credit: Artem Abaev, Soundchain

Poloniex funds withdrawal problems 
Poloniex funds withdrawal problems
credit: Artem Abaev, Soundchain

Since then, the support service has never responded to any Soundchain requests, Abaev details.

... The Poloniex exchange does not allow us to withdraw funds for some unknown reasons. These funds were collected during the pre-sale among our friends and were planned to be spend on launching the first round of the financing our project, scaling the team and preparing for the public presentation. We need to pay rent, pay our employees. Our problems are of no interest to anyone.
 

Artem Abaev
Soundchain startup creator

As Abaev argues, his team has analysed the public space on the branches of reddit.com and other forums and came to the conclusion that they are not the only victims and that the problem is of a massive nature.

Notably, the changes to the Poloniex policy were made while having numerous complaints from the customers about the work of the exchange. Thus, one of the reddit.com users claimed that his account with $15k was frozen for several weeks  without any explanation.

Bank of China Filed a Patent to Scale Blockchain Systems

Bank of China has filed a patent application for a process able to scale blockchain systems  
23 February 2018   102

According to a document released by China's State Intellectual Property Office (SIPO) on February 23, the application was invented by Zhao Shuxiang and first submitted on September 28 last year.

The application states that instead of letting a new block store transactions from its previous one, a data compressing system could be used to pack transactions from multiple blocks into what the patent calls a "data block."

For example, when the system receives a request to compress transactions from block 1 to 1,000, it causes a new data block to be formed and temporarily hosted on a different storage system. Then, the system will run the packed data through a hash function with a hash value. After that, the compression system will attach labels in order to identify blocks on the blockchain.

With the use of the described method, the patent claims a reduction in the amount of the data stored in new blocks as transactions mount in a blockchain while ensuring that data from all previous transactions will still be tamper-proof and traceable.

At the moment, the patent in the review process.