Bitcoin Financial News

WASHINGTON—The Justice Department said Tuesday it seized over $3.6 billion worth of digital currency stolen during a hack of a cryptocurrency exchange and arrested two suspects for allegedly trying to launder the proceeds.

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Bitcoin rose to a four-week high on Monday, climbing for a second consecutive session, driven in part by liquidation of some short positions that have accumulated in the virtual currency's recent three-month downtrend. The world's largest cryptocurrency hit $44,524.18, the highest since mid-January. It was last up 3.8% at $44,024. Since hitting a roughly six-month low on Jan. 24, bitcoin has gained about 35%.Ether, the second-largest digital currency in terms of market capitalization, touched a three-week peak of $3,180 and was last up 3.1% at $3,153.21. It dropped to a six-month trough in late January, but since then, ether, the token used for the Ethereum blockchain, has surged about 47%.

To many investors and analysts, cryptocurrencies truly stepped over the line when dogecoin was launched as a «joke currency» in 2013. The digital currency is based on a popular meme about a Shiba Inu dog. While most digital currencies offer (or at least purport to offer) some benefit in terms of transaction speed, blockchain usefulness, or practical application, dogecoin appears to simply be an attempt to cash in on the popularity of cryptocurrencies.

Uphold, the cloud-based digital currency exchange and platform, has made a bold move in order to attract new users and entice investors interested in ripple (XRP). A report by bitcoinist.com indicates that Uphold recently launched XRP trading on its exchange platform. Perhaps more importantly, however, is the fact that the first 5 million XRP purchased through the exchange will be available with zero transaction fees.

As concerns rise that entrepreneurs are cashing out their initial coin offerings and that some digital tokens including Bitcoin may have become overvalued, nearly all of the largest cryptocurrencies fell.

Since late 2015, the Hyperledger Project has existed to facilitate collaboration among developing blockchains and distributed ledgers of various types. Developed by the Linux Foundation and now including dozens of members, Hyperledger aims to improve the performance of blockchain networks in order to help integrate this new technology with businesses worldwide. Now, Coindesk reports that the distributed ledger startup Ripple, the developer of the cryptocurrency of the same name, has joined the consortium. (Related: What's the Difference between Bitcoin and Ripple?)

Ever since their inception, cryptocurrencies have railed against government interference and regulation. But Ripple wants governments to step in. 

While 2017 was a big year for cryptocurrencies, Ripple seems to haveflown under the radar to a certain extent. Certainly, the digital currency has its share of investors and enthusiasts. As of this writing, with a global market cap of more than $43 billion (according to coinmarketcap.com), it remains the fourth-largest virtual currency in the world.

In the fast-moving world of virtual currencies, it seems there is always at least one currency that's making major moves. Bitcoin and ethereum both saw their values skyrocket in 2017, largely on the strength of newfound investor interest in the cryptocurrency space, media hype, and the initial coin offering (ICO) craze. However, the cryptocurrency with the largest percentage increase in price was ripple (XRP). (See also: How Do I Buy Ripple (XRP) Cryptocurrency?)

First it was bitcoin, then ethereum, litecoin, and other digital currencies became the center of attention. Now, it's apparently time for ripple to enjoy the spotlight. The once-obscure cryptocurrency has catapulted itself into the No. 1 spot on the list of largest digital currencies by market cap, surpassing bitcoin cash, ethereum, and a host of other competitors.

Recent news that the National Security Administration (NSA) may have successfully launched investigations into "Tor, I2P, and VPN," with an additional pending request for projects focused on cryptocurrencies, is likely to go over poorly with the cryptocurrency community.

As the digital currency market starts to creep back following a major decline earlier this year, one long-time banker suggests that 2017's high-flying run may repeat itself. Oki Matsumoto, CEO of Japanese financial services company Monex Group Inc., spoke at the Japan Society in New York on Tuesday, indicating that despite a pushback from global regulators, cryptocurrencies could take off in the same manner that derivatives did 38 years ago when they were equally disliked by regulators. The finance executive started his career in derivatives at Solomon Brothers in 1987. The entrepreneur then spent 12 years at Goldman Sachs, where he was responsible for starting the investment bank's yen-denmonated fixed-income trading desk. (See also: Already More ICOs in 2018 Than All of 2017: $6.3B.)

US-headquartered banking giant Wells Fargo has three tips for new cryptoasset investors, with a recent report released by the bank’s Investment Institute answering the question that many ask themselves: is it too early or too late to jump on the crypto train? The report's authors advise new crypto investors to be patient, prudent, and careful.

Hope for the possibility of another significant rally in the cryptocurrency market has returned, even though Bitcoin (BTC) rejected at $45,500. Currently, bulls are looking to shore up their defense at the $43,000 support level. 

The hack saw more than 2000 unauthorised transactions which sent the stolen bitcoin to a digital wallet controlled by Lichtenstein, say authorities. According to the Department of Justice, over the last five years, about 25,000 of the bitcoin were move from the wallet via a "complicated money laundering process" that ended with some of the funds being deposited into financial accounts controlled by Lichtenstein and Morgan.Deputy Attorney General Lisa O Monaco says: “Today’s arrests, and the department’s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals.“In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions.

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The money was found in accounts controlled by husband and wife, Ilya Lichtenstein and Heather Morgan, who have been charged with money laundering and fraud.

On Tuesday, Singapore-based crypto exchange, Bybit, announced a new partnership with digital assets institution Cabital for the euro (EUR )and British pound sterling (GBP) on-ramp integration. 

Two individuals were arrested this morning in Manhattan for an alleged conspiracy to launder bitcoin (BTC) that was stolen during the 2016 hack of Bitfinex, presently valued at approximately USD 4.5bn, the US Department of Justice said.  

Hacker groups and traditional resistance movements in Ukraine are increasingly using cryptoassets as a way to fund their activities and bypass traditional financial services providers.