Cryptocurrency regulation and consumer protection regarding cryptocurrency

The use of cryptocurrency in the past one year has grown tenfold, and it is becoming increasingly complex to understand how each one of them is going to work out. Several countries are now accepting cryptocurrencies with open arms while some are trying to shut it down. However, this year most of the governments have been planning to at least put forward some regulations so it would control the usage and the strength of the cryptocurrencies.

Here is how the regulation of cryptocurrencies working around the world and why consumer protection is an eminent responsibility of the government in it.

Cryptocurrency Regulations in the United States

The United States currently does not have any regulation over its cryptocurrency but plans to do it soon. The Deputy General attorney of the country has said that they’re coming up with a comprehensive strategy surrounding cryptocurrency. In regards to the regulation, the Securities and Exchange Commission has halted several ICOs recently and has warned its investors of the risks involved in cryptocurrencies.

However, the government has accepted cryptocurrency to some extent as the commodity futures trading Commission has allowed the Cryptocurrency derivatives to be traded publicly. The government, time and again, has maintained that they want to make sure that the cryptocurrency is not used for Cybercrimes. They have maintained that a lot of schemes involving these currencies do not fall under the traditional financial system. Therefore, a strategy is needed that would involve representatives from several law enforcement agencies to make sure that these cryptocurrencies are being put to good use. The challenges for the government, however, remains the education and complete knowledge of the working of these cryptocurrencies.

Apart from the US, countries like Canada, China, and India do not recognise cryptocurrencies as legal tender or plan to regulate them to a great extent. On the other hand, countries like Japan and Switzerland have been quite accepting of it. There are also countries like South Korea and Russia which still have not decided about cryptocurrencies. It’s this grey area that we need to tackle soon, to ensure proper crypto justice.

Consumer protection regarding cryptocurrency


The reason why governments want to regulate cryptocurrencies is that the unrelated nature of the same makes many people fall prey to several scams. Many consumers have reported suffering heavy losses new to their account closures on trading platforms. Apart from this, the Bitcoin crash recently brought the most number of complaints from the consumers. Therefore, it becomes essential to have policies that protect their interests under all circumstances.

The government wants to preserve the idea of affair economic space where the interest of the consumers, as well as the business products they consume, are protected. However, the revolution in the cryptocurrency area promises to bring the power of the money in the hands of people who use it. Thus, controlling the to and fro of the income by fair means would be very difficult. As a result, the government wants to take efforts that are more public-oriented and offer the right solutions in case of any damage.…

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###Critical Security Update from BitFlikz### -Internal Report Shows GDAX & Coinbase may be Insolvent

We have come to learn that users may be at risk from the exhanges Coinbase and GDAX. This is breaking right now and we have some pending reports of how deep this may actually reach.

In actual fact, GDAX and Coinbase are related. They are owned by the same company.

It has become apparent that GDAX have suffered major replay attacks in the early trading of the new hardfork (ETHF) clone. They did not properly secure themselves from the attack after advice presented by the Ethereum foundation was taken.

During this period it is unknown what actual amount of ETC was relayed but we have estimated it is much bigger than initially anticipated. This occurred over a number of days as GDAX where assured by the Ethereum foundation there would be no interest in the original and unbreakable genesis chain. They where even aware of the attack vector but left it unpatched. It is specualted this may have been an attempt to kill off their competing chain.

At the time of the attack the $ETC was trading between $0.26 USD and $0.58 cents. It is now trading successfully above $1.80 USD after failed attempts harm the chain.

For every dollar taken during the replay attack they are now in deficit over appx -540%.

Sadly, If $1 million USD in ETH was withdrawn at the time that will place GDAX in a loss of -%540 or over USD $6M at current prices.

If Ethereum classic continues to rise, this may spell disaster if they have not repurchased customer funds.

 

This may be crippling to a smaller exchange of their size and we understand there are already users having difficulty withdrawing funds and getting deposits credited.

We understand they have just raised fees on their sister site @coinbase to outrageous and unknown levels never before seen inside the crypto world. This may be an attempt to cover the losses sustained on GDAX.

For example.

Lets say I withdrew 28,000 ETH from GDAX at the time. What would of happened is my transaction would have reflected on both chains and I would have ended up with 28,000 ETH and 28,000 ETC. The ETC would of been worth around $6,440 at the time but has since soared in value to over $50,400. This moment, they continue to climb in value as what seems to be a rejection of the clone.

Any losses GDAX sustained are now multiplied and it doesn’t look to be going away.

At the time of writing, the fraudulent chain now trading as $ETH on exchanges has declined in value and has seen a large % of miners abandon the chain and  begin mining on the original again once more. The mining power can be seen clearly drop off on http://etherscan.io/charts/hashrate and that also poses a threat as the price plummets.

As it weakens, the original chain may assume full power. This is very dangerous right now.

You can find critical information about the competing chains here: https://slacknation.github.io/medium/13/13.html

We feel it may be important to inform the community as we know people close to us who have suffered through exchanges in the past.

We all remember what happened to disgraced crypto exchange Cryptsy. At first, users couldn’t withdraw or transfer funds. Then, slowly they would process with delay after delay. They suffered a large scale hack and had to rely on a rolling Ponzi system in order to keep the exchange running.

Eventually, they just gave up and ran off with everyones money. Cryptsy were a respectable exchange for some time but it all changed very quickly. Coinbase appears to have a nice looking website but we begin to worry when we soon learn they are not crediting users funds and have begun stalling on withdrawals.

If you spend a couple minutes and do a search of the #coinbase $ETC or #GDAX hastag on twitter you can see there are a upset and angry individuals. Unfortunately you need to do some scrolling as they have activated their news wire and tried one of the more popular forms of stealth censorship (sliding) in attempt to bury the voice of those affected.

Sadly users have already started to close their accounts in protest.

Fortunately, this wont be at our expense but the exchanges will need to provide the customer assets. Coinbase claims to be insured by http://www.aon.com/. We are not sure if GDAX is insured at this point but will update as the situation develops. They state on their website “Specifically, Coinbase’s insurance policy would respond in the event that digital currency stored in Coinbase was lost or stolen as a result of a breach of our physical security, cyber security, or as a result of employee theft.”(https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-)

In a worrying statement released to the public GDAX leaked some deeply concerning information.

They claim to hold %100 of customers $ETC in cold storage which is impossible. We are aware of individuals who repeated the process and collected more than their fair share of $ETC. How can they possibly have %100 of funds if that is true?

They are either severely incompetent or do not have customer funds. It does not take “weeks” to instate withdrawals of customer funds. (Update) We have confirmed with experts that this is a minor feature and can be implemented overnight.

The statement is entirely misleading. Coinbase have been known in the past to have had some very dodgy dealings with claims of mutisig addresses. They attempted to cover it up with a “misunderstanding”.

They then updated their documents 5 days agoThe page was offline at the time of the article:https://support.coinbase.com/customer/en/portal/articles/1743782-the-multisig-vault

We haven’t even started our update on BTC-e (UPDATE) BTC-e may have lashed out in anger with their initial statement.

It was not their fault losing customers ETC as they were advised by the Ethereum foundation. -We apologise for any misunderstanding and harm this may have caused.

It has been revealed that the Ethereum foundation where coercing exchanges to abandon customers assets as they saw no value in the tokens. This was found on one of crypto’s most advanced and trusted trading platforms: POLONIEX.

Despite repeated assurances from representatives of the Ethereum foundation that the community had little to no interest in Ether on the unforked chain (ETC), demand for a market grew rapidly, as did over-the-counter trading between private sellers and buyers.”

 After uncovering some disturbing documents and email leaks we soon discovered the Foundation participated in misleading and fraudulently rigged voting systems in order to push their cloned chain onto exchanges.

They where completely aware of the replay attacks and chose to ignore the fatal flaw’s EVEN advising exchanges against protection taking advantage of their positions as trusted advisors.

Concerned developers had raised the issue but were promptly dismissed.

Sadly, this has been extracted from their website written over a year ago.

“Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”

We now need a new “Genesis Foundation” that will uphold the original core values.

There have been trusted and well known figures rise to offer support and these people are who we look to in order to form the new foundation.

Team BitFlikz have attempted to reach out to the foundation and negotiate a handover of the $ETC assets  but remain unsuccessful.

It has been speculated they may have already sold the communities funding as undercover chat logs have begun to leak

This is a very sad day in crypto history. Satoshi will be ashamed.

Subscribe and follow us on twitter @bitflikz1 -We will keep you updated.…

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The Theft of a $1 Billion Dollar Blockchain -Ethereum/Slock.it Facing Legal Action

We have decided to launch legal action against the Ethereum foundation and the Slock.it development team. Please join us if you feel you have been effected in any way through the actions of the Ethereum foundation or Slock.it.

We are motivated by our crypto morals, ethics and the unspoken law within our culture. We are backed by the real word legal system and the US Securities and Exchange Commission (SEC). Not only do we challenge the foundation but we demand a full public Audit of the funds and transactions related to the Ethereum Foundation and developers.

Has there been a crime here?

Most certainly.

The theft of a USD $1billion dollar blockchain with trading assets, copyright material, websites, logos, github, development funds and employees was switched with fraudulent software. The Exchanges are now operating orderbooks with cloned software belonging to the original Blockchain. We seek to reinstate new leaders of the foundation and reclaim our $1B USD in assets.

The Ethereum Foundation is now in possession of a community asset (ETHF) and it is within our best interests to liquidate this position to extend Genesis ETH funding. As the foundation has become corrupt, they cannot be trusted to make decisions for our benefit, only themselves. 

The foundation involved themselves with a third party and begun colluding to perform a hardfork (or %51 attack) motivated by personal investment decisions.

The foundation have stepped outside their scope outlined in the original binding agreement presented to crowd-sale investors. In this structured world of law and order, it is not up to individuals to decide on what is right and wrong or what constitutes a donation, this is a matter of law.

The foundations claimed “not for profit” will come under scrutiny and we will test every action and statement made with the power of the legal system.

The Slock.it team and developers provided an investment vehicle and made claims pertaining the investment. Their negligence in the execution of coding resulted in the loss of 11m ETH or $120 million US dollars of funds.

Each of these members had invested genesis positions of Ethereum and encouraged others to participate. Once they had caused this loss, they then proceeded to produce a fraudulent Blockchain in the attempts to recover their investment.

They successfully executed a joint operation collectively defrauding investors and offering them with cloned software as a substitute, benefiting themselves financially.

This was conducted in collaboration with the Ethereum foundation and pressure was mounted upon the community with heavy campaigning, propaganda and strong arm bully tactics.

The original Ethereum chain has now been hijacked by slock.it and the foundation. They believe the funding we provided them for our Genesis chain is now “free money” and they are under the illusion that the Hardfork is the main chain.

The fraudulent chain now operates on major exchanges with the theft of a our USD$1B dollar market cap and margin trade engines.

Once you begin to bring outside politics, selfish motive and corruption into a blockchain, you destroy the very worth of that chain. In the crypto world, Hardforks designed for selfish reasons violate our code of ethics. Any software updates, improvements to code or patches are a most welcome feat. Any attempts to justify your actions will be promptly shut down by lawyers smarter than you and I.

Our first steps in taking action will be to locate an appropriate base to conduct our affairs. As we understand the Ethereum foundation is based in Switzerland listed as a non profit organisation.

Slock.it is a registered company in Germany – HRB 30026 – VATID DE303959655.

My assumption is that we begin our proceedings on Swiss soil and seek guidance on how to best tackle slock.it from this position. If you are an expert in this field we would like to hear from you and seek your guidance on how to best approach.

What is our aim? We pursue our blockchain funding, branding, development, community assets including reddit, websites, domains and associated content.

If we so need, we will reinstate new developers/contractors and will likely employ passionate developers immune to corruption and political motive. If the Ethereum developers wish to participate, they will be contracted for set tasks.

We will move to secure the transparency of funding, spending and related transactions to the Ethereum public Blockchain for all to see and Audit. This reckless spending and wage blowout has gone on too far unabated and we now demand a public Audit. 

The foundation has fallen to corruption and we must act to secure stability.

We call for the resignation of Vitalik Buterin and the board of members and propose a re-election for the safety of our chain. We ask for them to step down from these positions and hand over the community assets to trusted members deemed fit to serve.

There are mountains of evidence piled through chat logs, emails, tweets, conferences, and discussions.

The crypto community is strong and just. We need to make an example of those who wish to bend moral compass and abuse positions of trust.

In the coming weeks we will begin establishing our community grounds and creating the legal vehicle for action. This will not be a solo mission. There are already thousands upon thousands willing to back the challenge and we invite you to join us.

We ask for your support gathering information and intelligence detailing the events as they unfolded. Any emails, chat logs, screenshots, tweets and recordings will be useful.

Join us in the slack group @ ethlegal.slack.com !

Please forward relevant information to ethlegal@tutanota.com

Head over to https://tutanota.com/ and grab an email. Any correspondence with us will be encrypted by default. 

Once you have that you will be able to access our public slack 

https://ethlegal.slack.com/x-63124676919-63135394002/signup

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About Us

Bitflikz is the leading cryptocurrency news website for all sorts of cryptocurrency fanatics. The blockchain community is a unique set of humans that prefer to be updated on the most recent events across the space. These types of individuals are constantly seeking room for growth and they are willing to read almost everything they can get their hands on. This allows us at Bitflikz to be proud of what we publish since are group of readings are highly dedicated. We at Bitflikz hold ourselves to the highest level of accountability and we love serving the blockchain community.

Bitflikz was founded in 2015 and it has a reach of 500,000 users. The cryptocurrency market-cap is raising year after year and can potentially reach the same level as the dot com era in late 1990’s. We at Bitflikz have positioned well to capitalize during this time. The reason we believe this is because the dot com bubble bursted when it was trillions of dollars big however the blockchain bubble looks like it can reach the same level potentially.

Bitflikz is looking forward to working with the blockchain community and updating them everyday. Our goal is to make sure all cryptocurrency fanatics get there information in a timely matter. Our goal is to be one of the largest cryptocurrency news sites in the world and we have the right team in place to accomplish this goal.

Believe in us and we will believe in you…

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