School to Pay $ 10,000 in Bitcoin After Ransomware Blow

Leominster Public School district has suffered from a Bitcoin Ransomware attack and was to pay pay $10,000 in BTC in order to unlock their system
03 May 2018   1162

The hackers revealed the computer system of the Leominster Public Schools district in Massachusetts, closing it On April 14. According to the chief of the school district Paula Deacon, a lock was set on the computer system and a ransom was queried. In the meantime, the cyber hijackers demanded that the ransom had to be paid in Bitcoin.

During the negotiations between the school district and hackers, the decryption keys were given to open some of the blocked files for a demonstration. The mayor of Leominster Dean Mazzarella, commenting the occasion, claimed that those responsible were “smart”. He also said that the Federal Bureau of Investigation (FBI) was following the matter. As the mayor declared, the payment of the $ 10,000 ransom would be taken from the general fund of the city.

They were on top of their game. They are using the best and highest technology. They were just looking for an opening and the system was hacked one way or another.
Dean Mazzarella,
Mayor, Leominster

The head of the Leominster temporary police Michael Goldman claimed the crime is impossible to track down. He supposed that the hackers were abroad (probably in Europe). So, there is very little that the police department is able to do. Goldman also said he recommended to pay the ransom. The ransomware attack does not represent a theft of any data. The school district files were locked, as was the school’s e-mail system, but no data was really extracted.

This case is the latest in a series of cyber-attacks towarding cryptocurrency that are becoming more and more popular. In January 2018, Hancock Health in Indiana was kicked by a ransomware attack. Finally the hospital was compelled to pay $ 55,000 worth of Bitcoins to hackers.

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   148

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.