Detained Russian controlled Bitcoin exchange

Alexandr Vinnik, 38 years old Russian citizen, arrested due to suspected money laundering
27 July 2017   1542
Blockchain

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

A Russian citizen who was detained in Greece on suspicion of money laundering with the help of bitcoins, was connected with the bitcoins exchange BTC-E. This is reported by Greek news portal Daily Thess.

Alexandr Vinnik arrested
Alexandr Vinnik arrested
Alexandr Vinnik arrested

According to above mentioned Daily Thess, Vinnik rested in one of the most expensive hotels in the Chalkidiki region, without even suspecting that he had been closely followed by the FBI and the Greek police for several months.

On July 25, as a result of the special operation, Alexander Vinnik was arrested, and today he was handcuffed to the Prosecutor's Office of Thessaloniki, where the procedure of his extradition to the United States was launched.

According to US law enforcement agencies, Vinnik is one of the leading members of a criminal organization that has cleared more than $ 4 billion through the BTC-e crypto exchange since 2011. It is noteworthy that Alexander Vinnik was tracked through an account in the WebMoney payment system.

The documents of the US Justice Department, sent to the Greek authorities, also state that the criminal organization was related to the part of the funds that disappeared after the bankruptcy of the Bitcoin Exchange Mt. Gox. As a result of the alleged hacking of Mt. Gox in 2014, about 850,000 BTC were abducted, and according to law enforcement agencies, 306,853 BTC of them were transferred to wallets associated with BTC-e.

The BTC-e exchange itself is called one of the world's largest electronic platforms for money laundering, obtained by criminal means. According to the US Justice Department, funds received as a result of cyberattacks and extortion, drug trafficking and tax evasion were laundered at the BTC-e.

Bitcoin

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

As informs Bits.media, the portal managed to receive the information that Alexander Vinnik is one of the owners and administrators of BTC-e. This information was shared by the administrator of the qugla.com service.

BTCE is unavailable from 25th of July. The official reason is “maintenance”.

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   95

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.