Industry Report: Big Bounty May Help Bitfinex Get its Money Back
A Bitfinex bounty, Russia changes its stance on bitcoin, and a rough fate lies ahead for an alleged Silk Road forum operator. Want to catch up on your latest digital currency news? Take a look below.
Hong Kong exchange Bitfinex has announced a $3.5 million bounty reserved for anyone who can help in their investigation to uncover the $72 million stolen from customer wallets last week. Explaining the terms, Director of Community and Product Development Zane Tackett states:
“5% of recovery and for information leading to recovery (but no bounty if no recovery); if multiple persons lead to recovery, share pro rata.”
Tackett is also refusing to draw up a contract offering explicit details until he can consult with the rest of the team.
In a related story, a bitcoin miner at Hashocean seems to have disappeared with millions of dollars in investors’ money. The website is down, reporting an error message when visited, and the miner has left no trace. Users are working hard to find the truth and earn their funds back.
After years of saying, “We hate bitcoin,” Russia is reversing its stance on the digital currency and potentially revoking its plan to penalize users. In the past, Russian authorities have sworn to enforce fines and even hand out prison time for those who indulge in the art of cryptocurrency, but now the country seems to be having a change of heart. Rather, financial experts have suggested taxing bitcoin over penalizing it. Sources explain:
“Resident natural persons are obliged to provide reports to tax authorities located at the place of their registration as to account moves through banks beyond the Russian Federation pursuant to the procedures established by the Decree of the Government of the Russian Federation No. 1365 dated 12.12.2015.”
While nothing has been set in stone, the idea is that if tax-hounds get their way, criminalizing bitcoin will have to be put on hold or discarded fully. Obviously, authorities can’t have it both ways.
28-year-old Irishman Gary Davis is set to be extradited and sent back to the U.S. for questioning regarding his alleged role with Silk Road. He has been charged with conspiracy to distribute illicit drugs, computer espionage, and money laundering.
According to the FBI, Davis worked as a Silk Road forum operator under the name “Libertas,” and had a personal relationship with Ross Ulbricht. David denies all allegations and is looking to appeal his case to the High Court. He explains:
“The prospect of being torn from my support network here in Ireland, which is essential for my mental well-being, flown halfway across the world, and being dumped into an American Gulag to rot while facing outrageous charges is gut-wrenching in the extreme. The conditions in the Metropolitan Correctional Center, New York, where I would be held post-extradition and pre-trial, are deplorable.”
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Images courtesy of Bitcoinist.net, IrishTimes.