Users of 'Btc-e' cryptocurrency exchange reporting spike in email phishing attempts

   Bitcoin exchange 'Btc-e' was previously targeted by hackers in 2014iStock

Users of a popular cryptocurrency exchange called Btc-e are reporting a significant spike in email phishing attempts, a potential harbinger of a fresh spam or malware campaign being launched in an attempt to defraud the bitcoin community. The reports emerged this week (2 May) on the bitcoin sections of Reddit and Twitter, with many recipients posting images of the spam that appears to currently be in circulation.

The attacker is luring victims by asking them to "review attached Btc-e codes" and claiming they only have a matter of hours to redeem them. The emails contain a password and a Microsoft Word document. Sender names vary, with some to date including Pierce Cynthia and Parsons Dillon. One Reddit user wrote: "In the word document it claims to be an encrypted document (really just an image). To decrypt it you have to enter the code from the email. Once you do that it downloads a program that encrypts your whole computer."

Another claimed: "I got the same thing. Seems like btc-e.com has had a breach of their account details. [The attacker] had my email and username, passwords may have been taken too but likely hashed so it may be worth changing your password just to be on the safe side." According to one Twitter user with name "GasGeverij" – a self-described penetration tester – the slew of fraudulent emails may be part of a "well-organised spam campaign leveraging [the] new Office vulnerability bypassing Gmail and Yahoo filters". This is in reference to recent reports from cybersecurity firms McAfee and FireEye, which discovered a bug in Word that hackers could exploit by using attached documents to spread malware and exploit kits. Before a patch was released it put "millions of users" at risk.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Blockchain firm nChain appoints Jon Matonis as Vice President of Corporate Strategy

Bitcoin Foundation Executive Director Jon Matonis has joined blockchain company nChain

as the new Vice President of Corporate Strategy. Matonis will be supporting nChain's business growth by developing commercial relationships, and evaluating opportunities for strategic investments and acquisitions, the release said. In this position, he will also continue providing thought leadership on blockchain technology. Recognized as a leading bitcoin researcher, Matonis is a non-executive board director for various companies in the digital currency space.

“Jon was immediately attractive to nChain. During his notable career, he has consistently led the integration of financial services and cryptography,” Arthur Davis, Director of nChain Holdings Limited, commented. “Jon's philosophy for the Bitcoin protocol and the network is fully in line with nChain's vision of on-chain scalability with decentralization, advanced native scripting for the construction of smart contracts, and a dedicated move away from monolithic software. We are excited to have Jon's deep industry experience on our team, and look forward to working with him to achieve our vision for the Bitcoin blockchain.”

Being the founding director of the Bitcoin Foundation, Matonis served as the industry's first nonprofit trade association. He also held senior roles with the Sumitomo Bank, VISA International, VeriSign, and Hushmail. Matonis created first and leading general price index for bitcoin ‘the Bitcoin Price Index (BPI)’ and enlisted seven regional chapter offices to the Bitcoin Foundation from countries such as France, Germany, and Bangladesh. “The resources and funding in place at nChain provide a unique opportunity to reshape the existing landscape of Bitcoin protocol influencers. I am excited to work with nChain to support the growth of the blockchain ecosystem for everyone's benefit,” Matonis said, accepting the new management position at nChain.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Venture capital 3.0:
The initial coin offering explained

Alan Zibluk – Markethive Founding Member

 

  

You’ve never seen QR codes used this way before.

The interior of Legends. Image: The Legends Room

The Legends cryptocurrency (LGD) is issued via Ethereum, a decentralized, blockchain-based computing platform that allows for the creation of custom tokens, and until May 15 can be bought in a public crowd sale at a rate of 1150 LGD per bitcoin. As well as paying for services, the cryptographic token is the only way to obtain VIP membership, which is available to anyone holding more than 5000 LGD, or around $5750 at the current Bitcoin valuation and LGD exchange rate. (Legends Room staff told Motherboard that the target price for membership is $5000, which has been inflated by Bitcoin prices rising more than $200 in the past month.)

Along with the prestige of membership (which gets you access to a private area featuring appearances by athletes, celebrities, and adult entertainment stars), the owners of the club are also touting the anonymity properties of cryptocurrency over other digital payment methods as a selling point. Nick Blomgren, founder, of the Legends Room, said in a phone call. "The first question they ask me in the club when they use a credit card is, 'What does your receipt say on the statement?' So if you can use bitcoin, well, there's no problem."

Legends' cryptocurrency ATM. Image: The Legends Room

Besides disguising the patrons' spending habits, the use of cryptocurrency will also provide for some novel ways for clients and dancers to interact. Bitcoin wallet apps often make use of QR codes to share transaction details between sender and receiver, a fact that Peter Klamka, the Legend Room's cryptocurrency specialist, says the club plans to make use of. "Vegas is all about what's new, what's different," said Klamka. "So let's put a QR code on a porn star's thigh and you can scan your app or even your blockchain wallet right on her thigh… Then all of a sudden you've got a real draw."

Klamka and Blomgren say they are targeting the club firmly at the new generation of young, affluent tech workers, who may be based in neighboring California's Silicon Valley or visiting Las Vegas for conferences, and would be drawn by the premise of the club. "If you think about who owns bitcoin and who uses it—younger, technologically inclined, likes the idea of nightclubs and beautiful women—we created an opportunity for somewhere they'd really want to spend it," explained Klamka. The Legends Room is scheduled to open at the end of May. In the meantime, early investors can purchase tokens through the Bittrex exchange.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

“It is the best investment of my life”

said billionaire Mike Novogratz at an April 19 Harvard Business School Club of NY event, where he announced that he holds ten percent of his net worth in cryptocurrencies like Bitcoin and Ethereum. Mike Novogratz was the Chief Investment Officer of the Fortress Macro Fund and a principal and member of the board of directors of Fortress Investment Group LLC. Novogratz joined Fortress after a decade-long at Goldman Sachs. He featured on the Forbes billionaire list in 2008. While clearer revelations on his investment in cryptocurrencies have come out now, his interest in cryptocurrencies isn’t new. He has been advocating for Bitcoin as a good investment since 2013.

Bitcoin’s journey has been incredible. It started trading at around $0.0007 per bitcoin in the beginning of 2009 and about two years later, it hit parity with the dollar. While the year 2013 saw Bitcoin's potential, it displayed its massive volatility. Even 2014 remained volatile but it was milder. In 2015, there was recovery and gradual uptrend which continued through 2016. The year 2017 has been exceptionally good for Bitcoin which crossed the $1,300 mark for the first time. Mike Novogratz now predicts it to go past $2,000. Mike Novogratz has invested in Ethereum (ETH) as well. He made his investment when it was trading at $1. Today, it's trading around $69 and is the second largest cryptocurrency by market capitalization. (Related reading, see: The 6 Most Important Cryptocurrencies Other Than Bitcoin)

Mike Novogratz isn’t the only billionaire supporter of Bitcoins and other cryptocurrencies. Patrick M. Byrne can be called a bitcoin enthusiast. Back in 2014, when no major revenue generators were accepting bitcoin as payment, he decided that Overstock.com, with $1.3 billion in revenue then, would accept bitcoins. Overstock became the first large retailer to accept Bitcoin, going live in January of 2014. Then we have Tim Draper, founder of Draper Associates – a seed-stage venture capital firm – has been investing in Bitcoins (ad now Ether) too. He ranked #98 on the 2014 Worth Magazine 100 Most Powerful People in Finance. (Related reading, see: Overstock.com Announces Rights Offering on Blockchain Platform)

The rising awareness, acceptance by governments and rising adoption are supporting Bitcoin’s price movement which is motivating people to invest. Bitcoin is emerging as a new asset class and given its low correlation with traditional asset classes, it’s being dubbed as a perfect diversifier for an investor’s portfolio. However, like any investment, there are risks involved and investors must factor them in being leaping into the world of cryptocurrencies.

Alan Zibluk – Markethive Founding Member