Trader Stole $2.8M Worth Crypto from His Employer

The prosecution alleges that during his work, Kim secretly withdrew 284 BTC from company's account
16 February 2018   306

 24-year-old trader from Chicago is accused of stealing Bitcoins and Litecoin for $ 2 million from his employer. This is reported by the Bloomberg.

Joseph Kim is accused of committing fraudulent acts against his employer Consolidated Trading LLC. According to the accusation, Kim illegally transferred the company's crypto currency to his own purse to cover losses from unsuccessful trade transactions.

In a letter that Kim sent to his leadership last November, he pleaded guilty.

It was not my intention to steal for myself. Until the end I was perversely trying to fix what I had already done. I can't believe I did not stop myself when I had the money to give back, and I will live with that for the rest of my life.

Joseph Kim (as ABC7 Chicago reports)

After Kim was hired to work as a trader in Consolidated Trading, he was banned from trading outside of working hours in order to avoid a conflict of interest, which he agreed to do, but a week after taking office he transfered 980 Litecoin ($ 48,000) from the company's account to its own wallet. When a day later the employer discovered the loss and asked Kim, he replied that he had transferred the money "to his own purse for security reasons." Kim said that this purse will serve as an "intermediate storage space", which supposedly should protect him from the alleged problems with the Bitfinex exchange.

Later, when the employer asked him the same question, the trader stated that he had transferred the money back to the Consolidated wallet, but the investigation found that the money was not returned to the company's account.

In November, Kim again decided to take care of the funds of his firm and brought out about 55 bitcoins for a total of $ 433,000. Kim stated that these bitcoins were "blocked" and he was doing their unlocking. From his words, the management realized that he was going to return the assets to the company's account.

The prosecution alleges that during his work, Kim secretly withdrew from the company's account 284 bitcoins or about $ 2.8 million.

During the interrogation, Kim said that he invested the first 55 bitcoins in short futures positions. Later, he admitted that he had transferred Litecoin to bitcoins for the same purpose, and borrowed the remainder of the amount to prevent the forced elimination of his marginal positions.

Consolidated managed to withdraw from Kim's purses 144 bitcoins. The net loss of the company was $ 603,000.

Zero-confirmation BCH transactions to be kept in China

The Chinese exchange Bitasia declared about the start of supporting 0-confirmation transactions for BCH
23 March 2018   16

The trading platform Bitasia is one among the first exchanges to provide zero-confirmation transactions. Due to this fact the traders can use the platform as speedily as possible.

Bitasia is a platform which allows the traders to exchange a diversity of cryptocurrencies (ETH, ETC, LTC, BTC, BCH ect.). This week the exchange claimed that after some consideration the trading platform would hold 0-confirmation transactions for the Bitcoin Cash retail chain. For merchants and other businesses such kind of transactions suggests the possibility to accept a digital currency before the first web confirmation. Nevertheless, according to the common position within the BTC community, at least one confirmation is necessary in order to preclude double spends.

Lately the developers Gavin Andresen and Tom Harding made specific patches to prevent forgeries from happening while 0-confirmation transactions are held. But then they have removed those patches from the codebase of the core. Today the BCH programmers and the community in the whole believe that zero-confirmation transactions are safe and have begun testing 0-confirms during the past few weeks. The BCH supporters were excited to find out that Bitasia had been going to keep  zero-confirmations., a new website, has recently posted a list of all the double spends` attempts against zero-confirmation BCH transactions. Those who support Bitcoin Cash are rather sceptical of the website`s data because the most part of the transactions have a cost set lower than the network relay minimum requirement. That can be explained by the fact that transactions under 1 satoshi per byte are usually never promoted among the BCH clients. Due to this, many BCH upholders regard the website as an effort to spread FUD (fear, uncertainty and doubt).