Seven Key Takeaways From The Department Of Justice’s Cryptocurrency Enforcement Framework

The Department of Justice recently released a report that served as a “Cryptocurrency Enforcement Framework” as part of the Attorney General’s Cyber Digital Task Force. The full contents can be read here. What follows are some key takeaways from the report and some additional context.

1- Distributed ledger technology and even cryptocurrency itself is regarded as a potential positive technological force by the Department of Justice

“At the outset, it bears emphasizing that distributed ledger technology, upon which all cryptocurrencies build, raises breathtaking possibilities for human flourishing.” — in almost the beginning of the report this key point stands out almost right away —a somewhat positive

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Chinese city launches cryptocurrency lottery, gives away digital coins to promote adoption

The Chinese city of Shenzhen will become a testing ground for a new sovereign cryptocurrency with residents issued millions in the digital coin for free. 

As reported by the South China Morning Post, citizens have been able to enter a lottery to receive the digital funds, of which coins worth 10 million yuan ($1.47 million) will be awarded to promote their use in roughly 3,400 designated stores in the Luohu district. 

The 50,000 “red packets” will each contain roughly $30 in cryptocurrency. Chinese citizens living in Shenzhen have been able to apply via iShenzhen, a blockchain-based and government-operated network that backs the new sovereign asset. 

See also: IRS offers grants for software to trace privacy-focused cryptocurrency trades

Digital Renminbi, an official state app, can be used to create an e-wallet to store and exchange the cryptocurrency. The gift amounts can only be used until October 18 and cannot be transferred

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Square backs cryptocurrency, buys $50 million in bitcoin

Over the years, billionaire entrepreneur Jack Dorsey has cultivated a reputation as one of the more unconventional leaders in business, with his daily ice baths, weekend fasts, and devotion to Stoic philosophy.

Now his company Square is following in his footsteps with an unconventional investment. The Silicon Valley-based payments platform is buying 4,709 bitcoins—worth $50 million, or roughly 1% of Square’s total assets.

“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a statement Thursday.

Although unusual, the investment isn’t hugely surprising, as it was likely driven by Square founder and CEO Dorsey—who’s been a vocal advocate for cryptocurrency. In 2018, he told attendees at Consensus, an annual conference for cryptocurrency and blockchain enthusiasts, “The internet is going to have a native currency. So let’s

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Square buys $50 million in bitcoin as part of larger investment in cryptocurrency

Payments platform Square has purchased $50 million in bitcoin, part of its larger investment in cryptocurrency, the company announced on Thursday. Square bought a total of 4,709 bitcoins, which the company says represents about 1 percent of its total assets as of the end of the second quarter.

Square said it was making the purchase because it believes “bitcoin has the potential to be a more ubiquitous currency in the future,” calling cryptocurrency “an instrument of economic empowerment” that “provides a way for the world to participate in a global monetary system.” Square has accepted bitcoin as a form of payment since 2014.

Jack Dorsey, CEO of Twitter and Square, has long been a proponent of bitcoin, saying in 2018 that he believes it will eventually become the world’s single currency within the next decade. Dorsey, who also owns an undisclosed amount of bitcoin personally, said during an earnings call

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SEC sues John McAfee over promoting cryptocurrency offerings on Twitter

John McAfee

Paula Bustamante | AFP | Getty Images

The U.S. Securities and Exchange Commission on Monday sued John McAfee, creator of the eponymous anti-virus software, alleging that he made over $23.1 million in undisclosed compensation from recommending seven cryptocurrency offerings on Twitter that were materially false and misleading.

The regulator, which is seeking a trial by jury, alleged that from at least November 2017 through February 2018, McAfee recommended cryptocurrencies that he was paid to promote, while falsely denying “he was being paid by the issuers.”

“McAfee leveraged his fame to make more than $23.1 million in undisclosed compensation” by recommending at least seven initial coin offerings or ICOs to his Twitter followers, the SEC said.

McAfee’s recommendations were “materially false and misleading,” in that he tried to sell “virtually worthless” cryptocurrency tokens by encouraging investors to buy the securities without disclosing his own holdings, the SEC alleged.

The

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KuCoin cryptocurrency exchange hacked for $150 million

Singapore-based cryptocurrency exchange KuCoin disclosed today a mega hack. In a statement posted on its website, the company confirmed that a threat actor breached its systems and emptied its hot wallets of all funds.



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Hot wallets are cryptocurrency management apps that are connected to the internet. Cold wallets are stored offline.

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Cryptocurrency exchanges like KuCoin use hot wallets as their temporary storage systems for assets that are currently being exchanged on the platform, and they are used to power conversion operations and funds transfers.

KuCoin said it detected the hack after observing “some large withdrawals” from its hot wallets on September 26.

The company said it started a security audit and discovered the missing funds. KuCoin said the hacker managed to steal Bitcoin assets, ERC-20-based tokens, along with other types of tokens.

Currently, the loss is estimated at a minimal $150 million, based on an Etherium

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