Articles Tagged with #Blockchain

blockchain hacking In January of 2019, it was discovered that an online attacker had hacked Coinbase and processed over $1.1 million in what the cryptocurrency industry refers to as “double spends”. However, this is not the only incidence of blockchains being hacked since its increasing popularity on the market. In fact, since 2017 it is estimated that over $2 billion worth of cryptocurrency has been stolen by hackers. But, how have blockchains, which were once deemed as unhackable, become the latest source of fraudulent activity?

Two Documented Years of Hacking Activity

Since 2017, authorities have uncovered billions of dollars worth of stolen cryptocurrency due to online attackers. However, it is estimated that even more funds have been taken during this time. Two groups alone are suspected of profiting over $1 billion combined, but the extent of their reach, as well as others, is largely unknown. As the market for blockchain encryptions becomes larger and larger, it appears as though its vulnerability to hackers is also increasing. This could mean that the fraudulent activity associated with blockchain hacking is just beginning.

The US Securities and Exchange Commission obtained a court order stopping the activities of Titanium Blockchain Infrastructure Services (TBIS), a blockchain startup. The company had raised $21 million from both local and international investors. The SEC said that the court had approved an emergency freezing of the company’s assets as well as the appointment of a receiver for the company. The SEC alleges that TBIS is involved in fraudulent activities that include deceiving investors about the company’s relationships with many big firms such as Boeing and The Walt Disney Company. The SEC asserted that the company’s CEO, Michael Alan Stollery, had to investors about the company’s association with major firms get more investment.

The SEC also that Titanium had created fake testimonials from its corporate clients. Stollery is also accused of having promoted the fraudulent ICO in YouTube videos and on social media platforms, equating investing in Titanium to investing in Intel or Google.  Titanium had published the logos of 24 well-known companies on its website which it claimed to have been working with, but none of the partnerships were real. Titanium consented to the appointment of a permanent receiver following the issuance of a temporary restraining order by the court. The appointed receiver had already begun identifying the company’s assets, the company revealed, while assuring its token holders that all the involved parties would strive to arrive at the best possible outcome. The company also cautioned its community against paying attention to its Telegram channel, which it says “is no longer managed.” Information posted there may be disseminated by malicious individuals who are impersonating Titanium employees and may contain false statements, the company warned. Titanium remains unfazed by the setback, assuring its community that product development will continue quietly in the background.

Jeffrey Newman represents whistleblowers