Weekly Update #8: Lightning Bug, AML Policy, And Conference In North Korea

Dominik Olech
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Last week, although quite calm, was a good reminder for how vital security in the cryptocurrency industry is. This topic concerns both governments and their care for AML policy and crypto software, which is vulnerable to attack.

New stablecoin by Tether

Many may forget that Tether, asides from USD backed stablecoin, is also aiming to expand over other fiat currencies. As for know, they managed to issue EURT, pegged to the European euro. Since last week, Teteher’s family has grown with a new member: CNH₮, a digital version of Chinese yuan.

As we may read in an official statement, the new currency will be available on the Ethereum blockchain with a signature ERC-20. Soon we will see how good Tether will manage in a completely different environment which the Chinese market is.

Bug in Lightning infrastructure may cost you your bitcoins

Lightning Network is a prominent project within the whole cryptocurrency world, aiming to facilitate the use of crypto as a payment method for everyday use. But even so proud idea might have some defects.

Apparently, the bug in the network may cause a loss of your assets. Although specific information wasn’t provided, Lighting Lab warned people about the necessity of upgrading the software.

This situation is a good reminder that most of the crypto projects, even soo popular like Lightning, are still in development. It’s wise to be cautious while you’re using every crypto-related software. 

An excellent example of overuse of blockchain software happened last week. A hacker used an exploit to steal 30,000 EOS form its infrastructure. He used EOS REX financial service to win continuously in EOSPlay.

AML rules and crypto legislation

Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Intelligence, made a statement in Geneva that every cryptocurrency has to apply to American anti-money laundering and combating the financing of terrorism law. Her speaking was a part of a meeting concerning the matter of Libra, which is to be launched by a Swiss-based association.

Mandelker point that although cryptocurrency researches put many efforts into developing technology, they don’t bother to provide sufficient measures to avoid abuses on the matter of AML policy.

Governments concern about AML and proper legislation are widespread recently. Similar topic was raised in the Netherlands, where all crypto firms not based in this country may be blocked. It’s also good to notice that all European Union countries are currently introducing new EU Anti-Money Laundering Directive.

Mt. Gox – new hope?

A few weeks ago, we recalled the story of Mt. Gox – an unfamous cryptocurrency exchange closed in 2014. Victims affected by this fiasco are fighting for their money since that year. Currently, the most promising solution concerns Japanese law. 

But now, a new idea for resolving this case came from the Rusia. ZP Legal, a Moscow-based firm, states that they are able to recover about 170,000 to 200,000 from 850,000 bitcoins stolen in 2014. The current value of such sum of coins is up to $2 billion. All hope relay on former Mt. Gox’s creditors, whose information would help Russian authorities to connect the case with another defunct exchange, BTC-e.

North Korea blockchain conference

North Korea will hold a cryptocurrency and blockchain conference next year. It will be the second time when this country will invite foreign people (except South Korean, Japanese, and Israeli citizens) interested in the crypto industry. For the time of the conference, North Korean restrictions will be liberalized for invited guests.

Although this conference might seem positive, we shouldn’t forget that North Korea is accused of stealing about $2 billion worth of crypto and using them to finance the weapon industry of this country. In the light of such facts, Pyongyang Blockchain and Cryptocurrency Conference look like just another act of propaganda. This topic is especially interesting (and intriguing), so we will surely go back to it in the next few days.

That’s all for this week. As you have seen, it was quite interesting – North Korea in the blockchain is not a common thing. And what drew your attention in the last few days?

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