US Government Arrests The Owner of BitFunder

According to U.S. Attorney's Office Southern District of New York a founder of BitFunder, a bitcoin-denominated stock exchange was arrested
22 February 2018   554

Today, the U.S. Justice Department following an investigation that involved the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC) unveiled the charges against Jon Montroll.

According to the SEC press release, the commission is pursuing civil charges against Montroll in a separate action, alleging that he operated an unlicensed securities exchange and defrauded investors.

The case goes back to an earlier period in bitcoin's history when websites like BitFunder were more common. BitFunder was shuttered in late 2013 and acted as a service to cryptocurrency exchange WeExchange.

According to the Department of Justice's complaint, BitFunder was the target of a hacking effort that enabled those behind the attack to credit themselves funds. As a result, roughly 6,000 BTC were withdrawn from WeExchange.

According to the agency, it alleges Montroll operated BitFunder as an unregistered online securities exchange and defrauded exchange users by misappropriating their Bitcoin, and also for failing to disclose a cyber attack on BitFunder’s system that resulted in the theft of roughly 6,000 BTC.

Contemporaneous digital evidence, including chat logs and transaction data, revealed that the Balance Statement was a misleading fabrication. Three days into the Exploit, Montroll had participated in an internet relay chat with another person in which he sought help in tracking down "stolen coins." When that did not work, Montroll transferred some of his own bitcoin holdings into WeExchange to conceal the losses. The Exploit, however, continued. By the time of the Balance Statement, WeExchange actually held thousands of bitcoins less than Montroll had asserted through the false Balance Statement.

The Justice Department

According to the statements, Montroll is accused of further misleading SEC staff after being confronted by SEC investigators.

Korea May Issue New Crypto Regulation Soon

Ass reported, during the period from July 13 to 26 members of political parties will present their proposals on regulating the sphere of cryptocurrencies
12 July 2018   170

In the coming days, the National Assembly of South Korea, presumably, will consider a number of legislative initiatives related to the regulation of the cryptocurrency.

As reported by The Korea Times, during the period from July 13 to 26 members of a number of political parties of the country will present their proposals on regulating the sphere of cryptocurrencies, the ICOs and blockchain.

According to the source, among others, the representative of the ruling Democratic Party Pak Jon-ji and representative of the leading opposition party "Free Korea" Chun Tae-ou will present their bills.

It is expected that many bills will be considered these days, but it is unknown exactly how the process will proceed. The Korea Times notes that members of the National Assembly "remain mostly scattered" when discussing the problem of cryptocurrency.

In any case, this initiative should serve as a catalyst for a new debate on the status of the country's cryptocurrency, whose population shows an increased interest in this market.

Another member of the National Assembly will hold another event this month, which can also affect the fate of the country's exchanges. The representative of "Free Korea" Song Hy-kun will participate in the debate with the Korean Agency for Internet and Security regarding the safety of local crypto exchanges. The event is organized in the light of the recent hacking of Coinrail and Bithumb.