A Texas man was arrested Thursday and charged with fostering a bitcoin-related Ponzi scheme, in what is the first securities fraud case involving the crypto currency ever lodged by US prosecutors.
Prosecutors said the defendant, Trendon Shavers, is accused [PDF] of promising investors "absurdly high interest" in exchange for turning over their bitcoin to him. Investors were falsely promised that their bitcoin was recoverable at any time, the authorities said.
Build A Better Bitcoin Wallet: Security Researcher Calls For Developers To Use Safer ECDSA Operations
One of the biggest fears of Bitcoin users is that one day they will wake up and find their virtual currency wallet emptied, signaling that someone, somehow, has managed to uncover the user’s private key. A Bitcoin private key is a secret number that acts as a kind of identifying “ticket,” allowing coins from the corresponding wallet to be spent.
The engineer behind the Heartbleed checker has created a tool to hunt down wallets from poorly secured transactions that leak private keys.
Filippo Valsorda released the Blockchainer tool to Github following a presentation at the Hack in the Box conference in Malaysia today.
A bitcoin-related company that allegedly engaged in deceptive marketing of specialized computers designed to produce the cryptocurrency has been shut down at the request of the US Federal Trade Commission.
In a complaint filed earlier this month against Butterfly Labs, the FTC alleged that the Missouri-based company charged consumers thousands of dollars for computers that mine Bitcoins but then failed to deliver the machines "until they were practically useless, or in many cases, did not provide the computers at all," the agency said in a statement Tuesday.
Someone has taken over the email account belonging to Bitcoin’s secretive creator, Satoshi Nakamoto, and says he will sell his secrets for money.