Venture capital investors have invested in Bitcoin $50 million and lost a pair of socks

In 2014, the Studio Planet Money venture capitalist Ben Horowitz argued about the fate of Bitcoin with financial columnist Felix Salmona.

Ben Horowitz, invested his time in Facebook and Twitter invested $ 50 million in startups related to Bitcoin. He believed that Bitcoin will change the world and will fully conquer the market of online shopping.

Felix salmon, financial blogger and cryptomathic, held the opposite view. He published an essay called “the Bitcoin bubble that will surely burst.” Horowitz wrote a commentary to the essay in which the author proposed to make a bet on the future of Bitcoin.

The two forces met in the Studio of Planet Money (NPR) and made a bet of five years. The confidence of Ben Horowitz was based on the understanding that Bitcoin is a major technological achievement, due to which people will be cheaper and easier to buy and sell things through the Internet.

According to Ben, how do I shop on the Internet — basically, using credit and debit cards — is a problem for many enterprises whose business is based on such sales. First, enterprises have to pay the companies making the credit card a Commission of about 2.5% of everything they sell. For some companies it very much. In addition, according to Ben, the company issuing credit cards deny some law-abiding customers because they are considered potential fraud.

Felix was skeptical about the success of Bitcoin. In particular, he was troubled by the fact that the number of bitcoins is limited. And it should mean that over time Bitcoin will become more valuable. In other words, deflation is inevitable. The rising price of Bitcoin will make it inconvenient for shopping on the Internet.

Ben and Felix agreed to meet after the survey, which will give Planet Money an independent company to find out whether the Americans Bitcoin for online purchases. If more than 10% of respondents answered in the affirmative — Ben will win, otherwise the winner will be Felix. The stakes in this dispute have become socks from Alpaca wool, which in 2014 could be bought for bitcoins.

Planet Money recently announced the winner. According to the results of an independent survey among 900 Americans, only 3% of respondents have used the cryptocurrency for payment of online purchases in the last month. Felix salmon won the dispute and a pair of lovely socks.

The post Venture capital investors have invested in Bitcoin $ 50 million and lost a pair of socks appeared first on FineCrypto.


Jihan Wu had lost their voting rights in the Board of Directors Bitmain

The world’s largest manufacturer of equipment for mining Bitmain has reorganized, which resulted in the Jihan Wu lost his seat in the Board of Directors.

Now co-founder and shareholder of the company is no longer its Director and co-Chairman of the Board of Directors — local media claims that Wu remains as a member of the Supervisory Board and participate in polls on issues of operational management of the company will not accept.

This and other personnel reshuffle, obviously, due to the preparation for the IPO in any case, it is logical to assume that the departure of Wu from the operative management of the company needs to reassure potential investors who might be not happy with too great powers of the Creator and the owner of the company, at the same time he was its CEO.

Recall that Bitmain filed its preliminary application for IPO on the Hong Kong stock exchange in late September. In the document disclosed the company’s financial performance, but do not specify a number of details regarding the IPO. in particular, it does not indicate the number of shares to be placed, and a timeframe for placement.

According to the prospectus offering of shares and revenue Bitmain for 2017 is $ 2.5 billion, in 2016 — $ 277,6 million Revenue for the first half of 2018 amounted to $ 2,84 billion in gross profit last year was $ 1.2 billion, in 2016 — 151,3 million for the first half of 2018 — $ 1 billion.

The post Jihan Wu had lost their voting rights in the Board of Directors Bitmain appeared first on FineCrypto.


Bitmain has lost $ 5.5 million because of an unknown hacker. Company sues

In addition to the difficult financial situation, Bitmain also has serious problems with hackers. Recently in the district court for the Western district of Washington there was a lawsuit in the case of an anonymous hacker who stole $ 5.5 million from the wallets mining giant. A situation occurred in April, but the official document representatives of the company filled in only recently.

Bitmain against hackers

As stated in the document, an unknown hacker under the name John Doe was able to obtain control over the company’s account on Binance. Bitcoins to wallet, Bitmain the offender used to manipulate the price Aldona Decentraland (MANA). After a few successful transactions anonymous brought their “profits”.

Lawyers Bitmain declare that the loss of the company “has exceeded 5.5 million dollars in Bitcoin and other digital assets.” According to them, crook “managed to steal almost 617 BTC”. The incident happened on April 22, the day the price of Bitcoin was $ 8935$ .

Part of the circuit the hacker is also listed in the lawsuit. The prosecution argues that the offender used two accounts of the exchange on Binance and two accounts on Bittrex (there were also 2.3 million coins MANA). Then John Doe manipulated the price Aldona placing buy orders “significantly above the market price”.

In other words, Doe inflated the local bubble, with the price of the asset. After other bidders have begun to act in their interests, the hacker leaked the unsuspecting traders a couple million MANA. For this price Aldona plummeted, and he got the opportunity to take the stolen cryptocurrency from the exchange to your wallet.

According to Cointelegraph, the damage from the hacking of exchanges in the first nine months of 2018, 2.5 times the statistics of 2017.

The post Bitmain has lost $ 5.5 million because of an unknown hacker. Company sues appeared first on FineCrypto.


A College student lost cryptocurrency $ 755 000 (119,28 BTC): Blame the bears?

A bear market has hit many cryptocurrency traders. But while many investors have had to withdraw their funds left, and those who now literally crying from damages.

For example, a College student who bought the Bitcoin at a price of $ 5,000 in 2017, have expressed their disappointment with the loss of $ 755,000 (119,28 BTC), asking like-minded people, not if he destroyed his life. The fact that the guy was left alone with taxes on cryptocurrency trading in the $ 400 000, which he is unable to pay.

A user under the name Throwaway283921 explained on Reddit that started trading cryptocurrency in may 2017, after he learned that his friend traded Ethereum. He signed up for Coinbase and invested $ 5 000, which was half of his savings.

He’s started to sell Bitcoin in a pair of Ethereum, driving means back and forth, making the end of 2017 more than ten-fold increase in initial investment and in December of 2017 earned a whopping $ 880 000 (139,03 BTC).

The purpose of “Throwaway” was to withdraw money after he crossed the 1 000 000 dollars. It is a peculiar tradition followed by most cryptocurrency investors, but the hero of our story foolishly invested in a fraudulent ICO, which has led to irreparable loss of his condition. On arrival of bears on the market the guy managed to lose about 755 000 dollars, saving all of $ 125,000.

He explained:

“I didn’t know anything about taxes, so I didn’t bother putting nothing on hold. Me that nobody taught. I invested in several failed ICO, tokens which fell without any chance of recovery. Today my portfolio is $ 125 000 and not $ 880 000. The amount of taxes I have to pay for 2017, is approximately $ 400 000 (lives in California)”.

Now the student, following the advice of the cryptocurrency community to consult with a tax lawyer specializing in crypto-currencies and alternative investments.

The post A College student lost cryptocurrency $ 755 000 (119,28 BTC): Blame the bears? appeared first on FineCrypto.


A Reddit user who has taken a loan of $125 000, lost all altonah

Cryptocurrency enthusiast, received a six-figure loan to buy cryptocurrency has lost almost 85% of their investments.

On Monday, a Reddit user under the nickname “Cryptohomie” (32-year-old resident of the UAE) posted on the forum a photo of your repayment schedule Bank loan

On photos extract from Emirates Islamic Bank, which lists the monthly payments in the amount of 8 194 dirhams (3 067 USD) to 14 Dec 2021. Original loan 338,000 AED (126 $ 500. USA) with a total return of 393 296 dirham (147 $ 200. USA), including interest.

“Here’s my Bank statement associated with a loan, which I took to invest in crypto-currencies,” writes Cryptohomie. “Three and a half years of bondage. Now I did not earn and has already lost 85%. I hope my story will serve as a lesson to others”

It should be noted that the loan money was not used for the purchase of Bitcoin and had invested in NEO, Stellar, Litecoin, Ethereum, “sidony and some who lost 95 percent of its value”.

Speaking of losses: NEO lost about 90% of its value compared to December last year, Stellar has decreased by about 75%, Litecoin 85%, but Ethereum has slipped to 80%. Bitcoin fell by almost 70% relative to its December high of $ 20 000.

Overall, the total market capitalization of almost 2000 cryptocurrencies tracked CoinMarketCap dropped from 800 to 200 billion dollars at the time of publication.

Despite their losses, Cryptohomie is still a holder of the cryptocurrency. According to him, now “basically, it’s NEO, Ontology, Elastos, Stellar and HPB”. The trader explained that the money for his investment was “ordinary credit”, which UAE banks give you “almost instantly”.

“You can get 100,000 dollars in a few days on your account without significant testing,” he said.

The Reddit response to the loss Cryptohomie

The reaction of the Reddit community was mixed. Some were sympathetic, not mocking Cryptohomie. Other released being sarcastic, hinting that such hasty investors as the hero of this story, the cryptocurrency market and soared to their highs.

There were, however, wise comments. For example, one commenter noted that “people complained”, when banks were forbidden to use credit cards for buying cryptocurrencies. However, the case with Cryptohomie confirmed the validity and necessity of such actions:

“Since the last rise I thought about how many people have done something similar and how many banks issued money at this money. I think they will be a large percentage of defaults on such loans”.

The post A Reddit user who has taken a loan of $ 125 000, lost all altonah appeared first on FineCrypto.


Cryptocurrency hacker stole bitcoins in the amount of 2.5 billion euros and lost it all in an online casino

In Estonia, police have arrested a hacker suspected of stealing bitcoins with a total value of 2.5 billion euros. His name and the details of the case were not disclosed because the investigation is ongoing.

It is known that an attacker several years stealing user passwords from e-mail accounts and thus have access to their cryptocurrency wallets. Translating means, dependent from casino hacker, he had spent it all gambling, “playing wherever he could.”

“Because people used the same password in multiple accounts, and not used two-factor authentication, he continued to clean up their accounts”, — says head of Department on fight against cybercrime of Central criminal police.

Recall that in Scotland, Castle Craig hospital, which deals with the rehabilitation of people with drug, alcohol, and gambling, began offering a course designed for people with painful dependence on trade cryptocurrencies. During hospitalization the clinic clients help to understand the reasons underlying such behavior, and to get rid of them.

With regard to gambling hacker, that is, in this story, something that doubt. Too large amounts of just slipping through my fingers, and at the time of arrest pockets “moth eaten”. Dark either the attacker or the police. But something is clearly fishy.

The post Cryptocurrency hacker stole bitcoins in the amount of 2.5 billion euros and lost it all in an online casino appeared first on FineCrypto.


$ 500 million in Ripple forever lost after the death of the owner

In their world, when a person dies, his estate goes to his spouse, children, parents, relatives or even the state, if the will was not properly drafted.

But in the world of cryptocurrencies where a law “is Not your key is not your crypt”, it is very difficult to predict what will happen to digital assets after the owner’s death.

An integral part of investing in cryptocurrencies — “storing a secret key in security and privacy”. The only way by which other people can spend your coin to get access to your keys. To prevent unauthorized access, you need to make sure that no one knows the keys. But what if sudden death comes, and the secret key is not transmitted to the heir?

Unfortunately, that’s exactly what happened to 54-year-old cryptocurrency millionaire Matthew Mellon, who died suddenly, leaving half a billion dollars in Ripple (XRP) forever locked in their wallets.

According to a statement from his family, Mr. Mellon took a course of rehabilitation from drug addiction in a medical facility in Mexico.

“He survived only for the sake of their children. The family asks that their privacy be respected at this very painful time, ” the statement said.

Tycoon, reportedly, was an early investor in Ripple and initially invested $ 2 million in cryptocurrency, even when others were skeptical about such investments.

According to Matthew Mellon:

“Cryptocurrency is scary and dark. It is anti-America. I’m for America, for business and for banks, so I chose Ripple”.

In the end, the profit Matthew from these investments amounted to 1 billion. He lived a luxurious life, spending about 7 million every month.

“It’s an easy $ 1 billion. Although, actually I earned it because I was the only person who wanted to take the risk. My family thought I was crazy, but I knew it was the right decision, ‘ said Mr Mellon.

The remaining XRP is estimated at $ 500 million, but according to others the coins in half.

The Mellon family can inherit his cryptocurrency as, only if you find the secret access keys. Rumor has it that the deceased retained their digital assets in cold wallets, which are “scattered” across the United States using fictitious names. Chief assistant Mellon claims that the millionaire has suffered this paranoia about their cryptocurrency savings. We also learned that Matthew was owned bitcoins, but how many remains a mystery that may never get an answer.

The post $ 500 million in Ripple forever lost after the death of the owner appeared first on FineCrypto.


The Swiss lost the package with cryptocurrency in the amount of 800 thousand francs

9 April, a young man named Thomas from the Swiss city of Lucerne as usual went shopping in the supermarket. Having bought all necessary, Thomas was horrified to find that lost package, which was with him after a visit to the Bank.

The worst thing about this story is that the contents of the package was two hardware wallet cryptocurrency, which kept cryptocurrency worth about 800 000 francs.

The young man immediately wrote a statement to the police and also posted the ads, which promises the finder a reward of 40 000 francs. According to Thomas, the third-party person is not able to take possession of the cryptocurrency, so 5% of the lost is a worthy compensation.

Thomas assures that stores its hardware wallets in a jar and takes them twice a year to perform the necessary operations with cryptocurrency. He’s not sure if he left the package containing the device and Keepkey Ledger Nano’s in my car or just forgotten somewhere in a supermarket.

However, he lost the storage device and does not have access to backups, because it does not have the necessary codes.

Thomas was fascinated by the cryptocurrency in the beginning of 2017, when invested 50,000 francs in Neos. After a year its capital was increased to 800 000, due to growth in the prices of the token. Despite the loss, Thomas T. says that still believes in digital currencies and “sees in them great potential.”

The post The Swiss lost the package with cryptocurrency in the amount of 800 thousand francs appeared first on FineCrypto.


Epic Fail: Russia greedy miners lost farm value of $ 9.3 million

Employees of the interior Ministry of the Russian Federation with the power support of fighters of Regardie detained two men who organized in the territory of one of the abandoned factories of Orenburg underground farm for mining cryptocurrency.

To locate a farm managed in a banal way — on the trail induced the employees of energy companies that went to the police with a statement that recorded a large loss of power.

Your visit to the mining-farm law enforcement authorities recorded on video:

On the territory of an abandoned factory of rubber technical products of the interior Ministry was discovered and seized more than six thousand units of equipment connected to the mains and power supply cables leading to the substation located nearby. Judging by the photo published by the media, Bitcoin is mined by miners from Bitmain Antminer S9 whose market value is about $ 3000 per unit.

The news of the exposure of the largest in the Volga Federal district of the underground mining farm first appeared in the media a month ago, but only on April 11 this fact was confirmed by the official representative of the Ministry of internal Affairs of Russia Irina Wolf.

Against the “owners” of the farm initiated a criminal case under article 165 of the criminal code of Russian Federation (“Causing property damage by deception”) on the basis of theft of electricity in amount of 60 million rubles.

However, if you believe Orenburg TV channel “Region”, true farm owners among those detained was not. Investors live in the UK, and the local “Director” for a long time is wanted. Most likely, the money received from sponsors to pay for the electricity he put in his pocket, and brought suspicion. Channel sources tell us what a wonderful lifestyle recently led the farm Manager bought an expensive foreign car, visited foreign resorts, walking in a big way in restaurants and clubs.

Likely to take the rap for it and investors will have a simple “watchmen” one of the largest mining farms in Europe.

The post Epic Fail: Russia greedy miners lost farm value of $ 9.3 million appeared first on FineCrypto.