Blockchain Investment Banking
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Bitcoin Tumbles As Miners Face Crackdown - the Buttonwood Tree Bitcoin Tumbles As Miners Face Crackdown
6/8/2021 Bitcoin Tumbles as Miners Face Crackdown - The Buttonwood Tree Bitcoin Tumbles as Miners Face Crackdown By Haley Cafarella - June 1, 2021 Bitcoin tumbles as Crypto miners face crackdown from China. Cryptocurrency miners, including HashCow and BTC.TOP, have halted all or part of their China operations. This comes after Beijing intensified a crackdown on bitcoin mining and trading. Beijing intends to hammer digital currencies amid heightened global regulatory scrutiny. This marks the first time China’s cabinet has targeted virtual currency mining, which is a sizable business in the world’s second-biggest economy. Some estimates say China accounts for as much as 70 percent of the world’s crypto supply. Cryptocurrency exchange Huobi suspended both crypto-mining and some trading services to new clients from China. The plan is that China will instead focus on overseas businesses. BTC.TOP, a crypto mining pool, also announced the suspension of its China business citing regulatory risks. On top of that, crypto miner HashCow said it would halt buying new bitcoin mining rigs. Crypto miners use specially-designed computer equipment, or rigs, to verify virtual coin transactions. READ MORE: Sustainable Mineral Exploration Powers Electric Vehicle Revolution This process produces newly minted crypto currencies like bitcoin. “Crypto mining consumes a lot of energy, which runs counter to China’s carbon neutrality goals,” said Chen Jiahe, chief investment officer of Beijing-based family office Novem Arcae Technologies. Additionally, he said this is part of China’s goal of curbing speculative crypto trading. As result, bitcoin has taken a beating in the stock market. -
Cryptocurrency: the Economics of Money and Selected Policy Issues
Cryptocurrency: The Economics of Money and Selected Policy Issues Updated April 9, 2020 Congressional Research Service https://crsreports.congress.gov R45427 SUMMARY R45427 Cryptocurrency: The Economics of Money and April 9, 2020 Selected Policy Issues David W. Perkins Cryptocurrencies are digital money in electronic payment systems that generally do not require Specialist in government backing or the involvement of an intermediary, such as a bank. Instead, users of the Macroeconomic Policy system validate payments using certain protocols. Since the 2008 invention of the first cryptocurrency, Bitcoin, cryptocurrencies have proliferated. In recent years, they experienced a rapid increase and subsequent decrease in value. One estimate found that, as of March 2020, there were more than 5,100 different cryptocurrencies worth about $231 billion. Given this rapid growth and volatility, cryptocurrencies have drawn the attention of the public and policymakers. A particularly notable feature of cryptocurrencies is their potential to act as an alternative form of money. Historically, money has either had intrinsic value or derived value from government decree. Using money electronically generally has involved using the private ledgers and systems of at least one trusted intermediary. Cryptocurrencies, by contrast, generally employ user agreement, a network of users, and cryptographic protocols to achieve valid transfers of value. Cryptocurrency users typically use a pseudonymous address to identify each other and a passcode or private key to make changes to a public ledger in order to transfer value between accounts. Other computers in the network validate these transfers. Through this use of blockchain technology, cryptocurrency systems protect their public ledgers of accounts against manipulation, so that users can only send cryptocurrency to which they have access, thus allowing users to make valid transfers without a centralized, trusted intermediary. -
Blockchain & Cryptocurrency Regulation
Blockchain & Cryptocurrency Regulation Third Edition Contributing Editor: Josias N. Dewey Global Legal Insights Blockchain & Cryptocurrency Regulation 2021, Third Edition Contributing Editor: Josias N. Dewey Published by Global Legal Group GLOBAL LEGAL INSIGHTS – BLOCKCHAIN & CRYPTOCURRENCY REGULATION 2021, THIRD EDITION Contributing Editor Josias N. Dewey, Holland & Knight LLP Head of Production Suzie Levy Senior Editor Sam Friend Sub Editor Megan Hylton Consulting Group Publisher Rory Smith Chief Media Officer Fraser Allan We are extremely grateful for all contributions to this edition. Special thanks are reserved for Josias N. Dewey of Holland & Knight LLP for all of his assistance. Published by Global Legal Group Ltd. 59 Tanner Street, London SE1 3PL, United Kingdom Tel: +44 207 367 0720 / URL: www.glgroup.co.uk Copyright © 2020 Global Legal Group Ltd. All rights reserved No photocopying ISBN 978-1-83918-077-4 ISSN 2631-2999 This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. The information contained herein is accurate as of the date of publication. Printed and bound by TJ International, Trecerus Industrial Estate, Padstow, Cornwall, PL28 8RW October 2020 PREFACE nother year has passed and virtual currency and other blockchain-based digital assets continue to attract the attention of policymakers across the globe. -
An Investigative Study of Cryptocurrency Abuses in the Dark Web
Cybercriminal Minds: An investigative study of cryptocurrency abuses in the Dark Web Seunghyeon Leeyz Changhoon Yoonz Heedo Kangy Yeonkeun Kimy Yongdae Kimy Dongsu Hany Sooel Sony Seungwon Shinyz yKAIST zS2W LAB Inc. {seunghyeon, kangheedo, yeonk, yongdaek, dhan.ee, sl.son, claude}@kaist.ac.kr {cy}@s2wlab.com Abstract—The Dark Web is notorious for being a major known as one of the major drug trading sites [13], [22], and distribution channel of harmful content as well as unlawful goods. WannaCry malware, one of the most notorious ransomware, Perpetrators have also used cryptocurrencies to conduct illicit has actively used the Dark Web to operate C&C servers [50]. financial transactions while hiding their identities. The limited Cryptocurrency also presents a similar situation. Apart from coverage and outdated data of the Dark Web in previous studies a centralized server, cryptocurrencies (e.g., Bitcoin [58] and motivated us to conduct an in-depth investigative study to under- Ethereum [72]) enable people to conduct peer-to-peer trades stand how perpetrators abuse cryptocurrencies in the Dark Web. We designed and implemented MFScope, a new framework which without central authorities, and thus it is hard to identify collects Dark Web data, extracts cryptocurrency information, and trading peers. analyzes their usage characteristics on the Dark Web. Specifically, Similar to the case of the Dark Web, cryptocurrencies MFScope collected more than 27 million dark webpages and also provide benefits to our society in that they can redesign extracted around 10 million unique cryptocurrency addresses for Bitcoin, Ethereum, and Monero. It then classified their usages to financial trading mechanisms and thus motivate new business identify trades of illicit goods and traced cryptocurrency money models, but are also adopted in financial crimes (e.g., money flows, to reveal black money operations on the Dark Web. -
Application-Of-Kraken-Financial-For
October 5, 2020 SENT VIA E-MAIL Stephanie Martin, Esq. Senior Associate General Counsel Federal Reserve Board 20th & C Streets NW Washington, DC 20551 Re: Application of Kraken Financial for Access to Federal Reserve Account and Payments System Services Dear Ms. Martin: The Clearing House Payments Company (“The Clearing House”) and The Clearing House Association, American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Independent Community Bankers of America, Nacha, and National Association of Federally-Insured Credit Unions (collectively, the “Associations”) write to express concern over the potential application of Kraken Financial for access to a Federal Reserve account and payments system services. The Clearing House, as the private sector operator of the nation’s payments systems, and the Associations, as the trade associations representing users of the payments systems operated by both The Clearing House and the Federal Reserve Banks, are concerned that the nature of the business engaged in by Kraken Financial presents heightened risks that should be taken into consideration in determining whether the Federal Reserve should grant such access, and, if granted, on what conditions. Kraken Financial was formed as the result of a new and unique special purpose depository institution (“SPDI”) charter recently established under Wyoming law that appears to be targeted to cryptocurrency businesses.1 Kraken Financial presents a business model that is 1San Francisco based Kraken appears to have obtained the SPDI charter from Wyoming after previously running afoul of New York’s Virtual Currency Business Activity licensing requirements. Forbes, “New York Attorney General Warns that Kraken Cryptocurrency Exchange Could be Violating Regulations” (Sept. -
Facilitating Cross-Chain Cryptocurrency Exchanges: an Inquiry Into Blockchain Technology and Interoperability with an Emphasis on Cryptocurrency Arbitrage
Eastern Michigan University DigitalCommons@EMU Senior Honors Theses & Projects Honors College 2020 Facilitating cross-chain cryptocurrency exchanges: An inquiry into blockchain technology and interoperability with an emphasis on cryptocurrency arbitrage Samuel Grone Follow this and additional works at: https://commons.emich.edu/honors Part of the Computer Sciences Commons Facilitating cross-chain cryptocurrency exchanges: An inquiry into blockchain technology and interoperability with an emphasis on cryptocurrency arbitrage Abstract Since the introduction and proliferation of the blockchain-based cryptocurrency Bitcoin, alternative cryptocurrencies also based on blockchain technology have exploded in number. It was once believed that one, or very few, cryptocurrencies would eventually dominate the market and drive out competitors. This assumption, however, was incorrect. Thousands of cryptocurrencies exist concurrently. The vast number of cryptocurrencies leads to a problem—what if the cryptocurrency that an individual possesses does not meet their current needs as well as another cryptocurrency might? The attempt to solve this problem has led to the rise of many cryptocurrency exchanges and exchange schemes. In this paper, we will discuss the motivations for an individual to be interested in exchanging two or more cryptocurrencies by describing and comparing various popular cryptocurrencies with different desirable attributes. While we will discuss these attributes, this paper will give special focus to arbitrage in particular. In addition, we will describe various cryptocurrency exchange schemes and their advantages and disadvantages. Finally, we contribute to the understanding of cryptocurrency exchangeability and interoperability by comparing the historical price data of several cryptocurrencies to determine how often arbitrage has been possible in the past. Degree Type Open Access Senior Honors Thesis Department Computer Science First Advisor Weitian Tong Second Advisor S. -
SBN 206441) CONSENSUS LAW 2 5245 Av
Case 3:20-cv-08034 Document 1 Filed 11/13/20 Page 1 of 197 1 Pavel I. Pogodin, Ph.D., Esq. (SBN 206441) CONSENSUS LAW 2 5245 Av. Isla Verde 3 Suite 302 Carolina, PR 00979 4 United States of America Telephone: (650) 469-3750 5 Facsimile: (650) 472-8961 Email: [email protected] 6 7 Attorneys for Plaintiff Păun Gabriel-Razvan 8 UNITED STATES DISTRICT COURT 9 FOR THE NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 12 Păun Gabriel-Razvan, Case No. 3:20-cv-08034 13 COMPLAINT FOR CONSPIRACY TO Plaintiff, CONDUCT AND CONDUCTING 14 ENTERPRISE’S AFFAIRS THROUGH A PATTERN OF RACKETEERING 15 ACTIVITY IN VIOLATION OF 18 v. U.S.C. §§ 1962(d) AND (c) (RICO), 16 CRYPTOCURRENCY MARKET MANIPULATION IN VIOLATION OF 7 17 U.S.C. § 9(1) (USE OF DECEPTIVE OR HDR Global Trading Limited (A.K.A. MANIPULATIVE DEVICE), 7 U.S.C. §§ 18 BitMEX), ABS Global Trading Limited, 9(3) AND 13(a)(2) (PRICE Grape Park LLC, Mark Sweep LLC, MANIPULATION), PRINCIPAL 19 Unknown Exchange, Arthur Hayes, Ben Delo, AGENT LIABILITY, AIDING AND Samuel Reed, Agata Maria Reed (A.K.A. ABETTING PRICE MANIPULATION 20 Agata Maria Kasza), Barbara A. Reed and IN VIOLATION OF 7 U.S.C. § 25(a)(1), Trace L. Reed, NEGLIGENCE, FRAUD, CIVIL 21 CONSPIRACY, UNFAIR BUSINESS PRACTICES IN VIOLATION OF CAL. 22 Defendants. BUS. & PROF. CODE §§ 17200 ET SEQ, UNJUST ENRICHMENT 23 (RESTITUTION), CONSTRUCTIVE TRUST, ACCOUNTING, 24 CONVERSION, AIDING AND ABETTING CONVERSION, AIDING 25 AND ABBETING FRAUD AND VIOLATION OF CAL. -
Knowledge Discovery in Cryptocurrency Transactions
Knowledge Discovery in Cryptocurrency Transactions: A Survey Xiao Fan Liua,∗, Xin-Jian Jiangb, Si-Hao Liub, Chi Kong Tsec aDepartment of Media and Communication, City University of Hong Kong, Hong Kong SAR, China bSchool of Computer Science and Engineering, Southeast University, Nanjing, China cDepartment of Electrical Engineering, City University of Hong Kong, Hong Kong SAR, China Abstract Cryptocurrencies gain trust in users by publicly disclosing the full creation and transaction history. In return, the transaction history faithfully records the whole spectrum of cryptocurrency user behaviors. This article analyzes and summarizes the existing research on knowledge discovery in the cryptocurrency transactions using data mining techniques. Specifically, we classify the exist- ing research into three aspects, i.e., transaction tracings and blockchain address linking, the analyses of collective user behaviors, and the study of individual user behaviors. For each aspect, we present the problems, summarize the methodolo- gies, and discuss major findings in the literature. Furthermore, an enumeration of transaction data parsing and visualization tools and services is also provided. Finally, we outline several future directions in this research area, such as the current rapid development of Decentralized Finance (De-Fi) and digital fiat money. Keywords: cryptocurrency, Bitcoin, Ethereum, transaction analysis, data mining, complex network Contents arXiv:2010.01031v1 [cs.CR] 2 Oct 2020 1 Introduction 2 2 Preliminaries 4 2.1 Thecryptocurrencyeconomy . 4 2.2 DataModels ............................. 5 3 Traceability and Linkability Issues 8 3.1 Tracingcryptocurrencytransactions . 8 ∗Corresponding author Email address: [email protected] (Xiao Fan Liu) Preprint submitted to Elsevier October 5, 2020 3.2 Counter-tracingmeasures . 9 3.3 Taint analysis techniques . -
Quoint Weekly Intelligence Bulletin 39
Week 39 Weekly Intelligence Bulletin Date 28 September 2018 Reading Time 25-30 min Type Intelligence Bulletin Audience-Role Management Sub-Type Weekly Bulletin Audience-Industry Cross Industry R�������������� Period 20-09-2018 to 27-09-2018 TLP AMBER TLP: AMBER Intelligence Bullen TABLE OF CONTENTS CYBER 3 VULNERABILITIES .......................................... 3 Linux Kernel IP Fragment Reassembly Vulnerability impacting multiple Cisco Products . 3 New Exploit Variation of Recent VBScript Engine Vulnerability in theWild ............ 3 Zero Day Initiative Reports Remote Code Execution Vulnerability in Microsoft Windows Jet Database Engine ...................................... 4 THREAT ACTOR ACTIVITY ...................................... 5 COBALT: Latest campaign activity spoofing Oracle ......................... 5 REPORTED INCIDENTS ........................................ 5 The United Nations Experiences Data Incidents on Third Party Platforms ............. 5 Energy Company RWE Suffers DDoS Attack ............................ 6 ROLLUP ............................................... 7 CRYPTOCURRENCY 8 Cryptocurrency Total Market Capitalization Declines ....................... 8 German Cryptoasset Exchanges Launches First Blockchain Bank Account ............ 8 French Government Reportedly Creating Legal Framework for Cryptoasset Providers . 9 ROLLUP ............................................... 9 GEOPOLITICS 11 Deutsche Telekom and German Armed Forces Cooperate on Cyber Defense . 11 U.N. General Assembly Annual Session ............................. -
Bitwise Asset Management, Inc., NYSE Arca, Inc., and Vedder Price P.C
MEMORANDUM TO: File No. SR-NYSEArca-2019-01 FROM: Lauren Yates Office of Market Supervision, Division of Trading and Markets DATE: March 20, 2019 SUBJECT: Meeting with Bitwise Asset Management, Inc., NYSE Arca, Inc., and Vedder Price P.C. __________________________________________________________________________ On March 19, 2019, Elizabeth Baird, Christian Sabella, Natasha Greiner, Michael Coe, Edward Cho, Neel Maitra, David Remus (by phone), and Lauren Yates from the Division of Trading and Markets; Charles Garrison, Johnathan Ingram, Cindy Oh, Andrew Schoeffler (by phone), Amy Starr (by phone), Sara Von Althann, and David Walz (by phone) from the Division of Corporation Finance; and David Lisitza (by phone) from the Office of General Counsel, met with the following individuals: Teddy Fusaro, Bitwise Asset Management, Inc. Matt Hougan, Bitwise Asset Management, Inc. Hope Jarkowski, NYSE Arca, Inc. Jamie Patturelli, NYSE Arca, Inc. David DeGregorio, NYSE Arca, Inc. (by phone) Tom Conner, Vedder Price P.C. John Sanders, Vedder Price P.C. The discussion concerned NYSE Arca, Inc.’s proposed rule change to list and trade, pursuant to NYSE Arca Rule 8.201-E, shares of the Bitwise Bitcoin ETF Trust. Bitwise Asset Management, Inc. also provided the attached presentation to the Commission Staff. Bitwise Asset Management Presentation to the U.S. Securities and Exchange Commission March 19, 2019 About Bitwise 01 VENTURE INVESTORS Pioneer: Created the world’s first crypto index fund. 02 TEAM BACKGROUNDS Specialist: The only asset we invest in is crypto. 03 Experienced: Deep expertise in crypto, asset management and ETFs. 2 Today’s Speakers Teddy Fusaro Matt Hougan Chief Operating Officer Global Head of Research Previously Senior Vice President and Senior Previously CEO of Inside ETFs. -
Cryptocurrency: a Primer for Policy-Makers
August 2019 Cryptocurrency: A Primer for Policy-Makers Zack Gold and Megan McBride Approved for public release. Unlimited distribution. CRM-2019-U-020185-Final Abstract This primer is an effort to address a gap in knowledge about cryptocurrencies and the cryptocurrency ecosystem among the policymaking community and advance the understanding of cryptocurrencies and consideration of their national security implications. Cryptocurrencies are strictly digital currencies, are typically overseen by a decentralized peer-to-peer community, and are secured through cryptography. We use clear, non-technical language to describe complex concepts and demystify overly technical terms in order to explain the technical and economic aspects of cryptocurrency, why they are used, and the benefits and drawbacks to cryptocurrencies compared to conventional currencies—like the US dollar. We conclude by considering some cryptocurrency-related issues of which greater exploration would benefit US national security. This document contains the best opinion of CNA at the time of issue. It does not necessarily represent the opinion of the sponsor or client. Distribution Approved for public release. Unlimited distribution. Cover image credit: “Photo of a mobile phone with a Bitcoin Cash wallet, Bitcoin whitepaper by Satoshi Nakamoto and Bitcoin.com pen.” BitcoinXio, Apr. 15, 2018. Approved by: August 2019 Jonathan Schroden, Research Program Director Special Operations Program Center for Stability & Development Strategy, Policy, Plans, and Programs Division (SP3) Request additional copies of this document through [email protected]. Copyright © 2019 CNA. All rights reserved Executive Summary In 2017, the value of one Bitcoin skyrocketed to more than $20,000. Media coverage increased, and even people who did not join the investment frenzy became aware of so-called “cryptocurrencies.” Despite this familiarity, few actually understand cryptocurrencies and the implications they may have on US interests, from global finance to national security to good governance. -
Notice of Filing of a Proposed Rule Change to List and Trade Shares of the Wisdomtree Bitcoin Trust Under BZX Rule 14.11(E)(4), Commodity-Based Trust Shares
SECURITIES AND EXCHANGE COMMISSION (Release No. 34-91521; File No. SR-CboeBZX-2021-024) April 9, 2021 Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change to List and Trade Shares of the WisdomTree Bitcoin Trust under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),1 and Rule 19b-4 thereunder,2 notice is hereby given that on March 26, 2021, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange rule change to list and trade shares of the WisdomTree Bitcoin Trust (the “Trust”),3 under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares. The shares of the Trust are referred to herein as the “Shares.” The text of the proposed rule change is also available on the Exchange’s website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 The Trust was formed as a Delaware statutory trust on March 8, 2021 and is operated as a grantor trust for U.S.