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   724

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 As a result, roughly 6,000 BTC were withdrawn from WeExchange.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.

Bitfinex to Launch New Improved Fiat Deposit System

New system of deposists supports 4 popular currencies and requires KYC procedure completion
17 October 2018   93

Bitfinex Cryptocurrency Exchange has introduced a new system for fiat currencies deposits: the US dollar (USD), the British pound (GBP), the Japanese yen (JPY) and the euro (EUR). Now, the users who have completed the KYC procedure will create an application, indicating the deposit amount and currency, and the platform representatives will consider it within 48 hours.

Then, if approved, users will be sent the recipient's bank data, and the deposit itself will be credited to the account within 6-10 business days.

In this case, the minimum threshold of $ 10,000 was not abolished.

Earlier, Bitfinex had an anomalous growth of Bitcoin to the level of $ 7,788, which was associated with the possible collapse of Tether.

Nevertheless, the USDT price also stabilized, and representatives of the issuer said that the tokens were fully secured.