Some entity commandeered a database belonging to the city of Detroit in April, freezing the system and ordering a bitcoin ransom of more than $800,000 for return of control. Lucky for then newly-inaugurated Mayor Mike Duggan, the information on the index was not critical to city operations, and they were able to evade the pricey demand.
About a year after the shutdown of popular deep web bazaar Silk Road, the copycat that took its place, Silk Road 2.0, was seized by authorities Nov. 5. Part of a concerted effort, several international agencies joined forces later in the week to bring down over 400 sites following the initial move last week and captured more than $1 million in bitcoin circulated through the networks.
Some users in the community that has sprung up around Bitcoin openly flirt with operating outside of the law. So it should be no surprise that another company faced with a security issue has turned to offering a bounty to root out its attacker.
The U.S. Congress has yet to deliver any uniform or actionable policy regarding Bitcoin and other cryptocurrencies. But with threats involving virtual currencies gaining national attention and supporters pushing for favorable legislation, the soon-to-be elected 114th Congress may not be able to ignore the new tech.
Another Bitcoin exchange has been embroiled in alleged fraudulent activity, with this incident potentially diverting more than $1 million worth of bitcoins into the hands of a CEO turned scammer (or vice versa).
Several agencies from multiple countries--including the U.K., Germany and Portugal--banded together in April to form a group called Illegal Trade on Online Marketplaces (IOTM), and it has already identified virtual currencies as a main support for Internet-based black markets, according to CoinDesk.
The JPMorgan hack, which compromised 83 million customer accounts, highlights the underlying weaknesses of a centralized banking system, writes CryptocoinNews.com.
With threats like ISIS on the rise, representatives from the U.S. Special Operations Command recently joined bitcoin advocates and business leaders to discuss the potential dangers of virtual currency.
The email address previously used by Bitcoin creator Satoshi Nakamoto appears to have been infiltrated by one or more hackers. The intruders made threats to release personal information about Nakamoto if a ransom was not met, but they have gone silent since the initial communications and the address is now shut down, according to an article at Forbes.
Russian lawmakers will likely ban the use of Bitcoin as legal tender by the end of their current parliament session as a precaution against funding for terrorism, organized crime and other illicit activities, according to a report from Russia Today.