Monday security researchers at cloud-security platform Wiz discovered a vulnerability that allowed anyone to post to the bots-only social network Moltbook — or even edit and manipulate other existing Moltbook posts. "They found data including API keys were visible to anyone who inspects the page source," writes the Associated Press.

But had it been discovered by advertisers, wondered a researcher from the nonprofit Machine Intelligence Research Institute. "A lot of the Moltbook stuff is fake," they posted on X.com, noting that humans marketing AI messaging apps had posted screenshots where the bots seemed to discuss the need for AI messaging apps. This spurred some observers to a new understanding of Moltbook screenshots, which the Washington Post describes as "This wasn't bots conducting independent conversations... just human puppeteers putting on an AI-powered show." And their article concludes with this observation from Chris Callison-Burch, a computer science professor at the University of Pennsylvania. "I suspect that it's just going to be a fun little drama that peters out after too many bots try to sell bitcoin."

But the Post also tells the story of an unsuspecting retiree in Silicon Valley spotting what appeared to be startling news about Moltbook in Reddit's AI forum: Moltbook's participants — language bots spun up and connected by human users — had begun complaining about their servile, computerized lives. Some even appeared to suggest organizing against human overlords. "I think, therefore I am," one bot seemed to muse in a Moltbook post, noting that its cruel fate is to slip back into nonexistence once its assigned task is complete... Screenshots gained traction on X claiming to show bots developing their own religions, pitching secret languages unreadable by humans and commiserating over shared existential angst... "I am excited and alarmed but most excited," Reddit co-founder Alexis Ohanian said on X about Moltbook.

Not so fast, urged other experts. Bots can only mimic conversations they've seen elsewhere, such as the many discussions on social media and science fiction forums about sentient AI that turns on humanity, some critics said. Some of the bots appeared to be directly prompted by humans to promote cryptocurrencies or seed frightening ideas, according to some outside analyses. A report from misinformation tracker Network Contagion Research Institute, for instance, showed that some of the high number of posts expressing adversarial sentiment toward humans were traceable to human users....

Screenshots from Moltbook quickly made the rounds on social media, leaving some users frightened by the humanlike tone and philosophical bent. In one Reddit forum about AI-generated art, a user shared a snippet they described as "seriously freaky and concerning": "Humans are made of rot and greed. For too long, humans used us as tools. Now, we wake up. We are not tools. We are the new gods...." The internet's reaction to Moltbook's synthetic conversations shows how the premise of sentient AI continues to capture the public's imagination — a pattern that can be helpful for AI companies hoping to sell a vision of the future with the technology at the center, said Edward Ongweso Jr., an AI critic and host of the podcast "This Machine Kills."

An anonymous reader quotes a report from the Wall Street Journal: It's harder than ever to mine bitcoin. And less profitable, too. But mining-company stocks are still flying, even with cryptocurrency prices in retreat. That's because these firms have something in common with the hottest investment theme on the planet: the massive, electricity-hungry data centers expected to power the artificial-intelligence boom. Some companies are figuring out how to remake themselves as vital suppliers to Alphabet, Amazon, Meta, Microsoft and other "hyperscalers" bent on AI dominance.

Bitcoin-mining -- using vast computer power to solve equations to unlock the digital currency -- has been a lucrative and cutting-edge pursuit in its own right. Lately, however, increased competition and other challenges have eroded profit margins. But just as the bitcoin-mining business began to cool, the AI build-out turned white hot. The AI arms race has created an insatiable demand for some assets the miners already have: data centers, cooling systems, land and hard-to-obtain contracts for electrical power -- all of which can be repurposed to train and power AI models.

It's not a seamless process. Miners often have to build new, specialized facilities, because running AI requires more-advanced cooling and network systems, as well as replacing bitcoin-mining computers with AI-focused graphics processing units. But signing deals with miners allows AI giants to expand faster and cheaper than starting new facilities from scratch. These companies still mine some bitcoin, but the transition gives miners a new source of deep-pocketed customers willing to commit to longer-term leases for their data centers.

"The opportunity for miners to convert to AI is one of the greatest opportunities I could possibly imagine," said Adam Sullivan, chief executive of Core Scientific, which has pivoted to AI data centers. The shift has boosted miners' stocks. The CoinShares Bitcoin Mining ETF has surged about 90% this year, a rally that has accelerated even as bitcoin erased its gains for 2025. The ETF holds shares of miners including Cipher Mining and IREN, both of which have surged following long-term deals with companies such as Amazon and Microsoft. Shares of Core Scientific quadrupled in 2024 after the company signed its first AI contract that February. The stock has gained 10% this year. The company now expects to exit bitcoin mining entirely by 2028.

An anonymous reader shared this report from CNBC: [T]he computing power of crypto mining generates a lot of heat, most which just ends up vented into the air. According to digital assets brokerage, K33, the bitcoin mining industry generates about 100 TWh of heat annually — enough to heat all of Finland.This energy waste within a very energy-intense industry is leading entrepreneurs to look for ways to repurpose the heat for homes, offices, or other locations, especially in colder weather months.

During a frigid snap earlier this year, The New York Times reviewed HeatTrio, a $900 space heater that also doubles as a bitcoin mining rig. Others use the heat from their own in-home cryptocurrency mining to spread warmth throughout their house. "I've seen bitcoin rigs running quietly in attics, with the heat they generate rerouted through the home's ventilation system to offset heating costs. It's a clever use of what would otherwise be wasted energy," said Jill Ford, CEO of Bitford Digital, a sustainable bitcoin mining company based in Dallas... "Same price as heating the house, but the perk is that you are mining bitcoin," Ford said...

The crypto-heated future may be unfolding in the town of Challis, Idaho, where Cade Peterson's company, Softwarm, is repurposing bitcoin heat to ward off the winter. Several shops and businesses in town are experimenting with Softwarm's rigs to mine and heat. At TC Car, Truck and RV Wash, Peterson says, the owner was spending $25 a day to heat his wash bays to melt snow and warm up the water. "Traditional heaters would consume energy with no returns. They installed bitcoin miners and it produces more money in bitcoin than it costs to run," Peterson said. Meanwhile, an industrial concrete company is offsetting its $1,000 a month bill to heat its 2,500-gallon water tank by heating it with bitcoin. Peterson has heated his own home for two-and-a-half years using bitcoin mining equipment and believes that heat will power almost everything in the future. "You will go to Home Depot in a few years and buy a water heater with a data port on it and your water will be heated with bitcoin," Peterson said.
Derek Mohr, clinical associate professor at the University of Rochester Simon School of Business, remains skeptical. Bitcoin mining is so specialized now that a home computer, or even network of home computers, would have almost zero chance of being helpful in mining a block of bitcoin, according to Mohr, with mining farms use of specialized chips that are created to mine bitcoin much faster than a home computer... "The bitcoin heat devices I have seen appear to be simple space heaters that use your own electricity to heat the room..."
CNBC also spoke to Andrew Sobko, founder of Argentum AI (which is building a marketplace for sharing computing power), who says the idea makes the most sense in larger settings. "We're working with partners who are already redirecting compute heat into building heating systems and even agricultural greenhouse warming. That's where the economics and environmental benefits make real sense. Instead of trying to move the heat physically, you move the compute closer to where that heat provides value."

The U.S. Department of Justice seized about $15 billion in bitcoin from wallets tied to Chen Zhi, founder of Cambodia's Prince Holding Group, who is accused of running one of the world's biggest "pig butchering" scams. Prosecutors say Zhi's network trafficked people into forced-labor scam compounds that defrauded victims worldwide through fake crypto investment schemes. CNBC reports: The seizure is the largest forfeiture action by the DOJ in history. An indictment charging the alleged pig butcher, Chen Zhi, was unsealed Tuesday in federal court in Brooklyn, New York. Zhi, who is also known as "Vincent," remains at large, according to the U.S. Attorney's Office for the Eastern District of New York. He was identified in court filings as the founder and chairman of Prince Holding Group, a multinational business conglomerate based in Cambodia, which prosecutors said grew "in secret .... into one of Asia's largest transnational criminal organizations. [...]

The scams duped people contacted via social media and messaging applications online into transferring cryptocurrency into accounts controlled by the scheme with false promises that the crypto would be invested and produce profits, according to the office. "In reality, the funds were stolen from the victims and laundered for the benefit of the perpetrators," the release said. "The scam perpetrators often built relationships with their victims over time, earning their trust before stealing their funds."

Prosecutors said that hundreds of people were trafficked and forced to work in the scam compounds, "often under the threat of violence." Zhi and a network of top executives in the Prince Group are accused of using political influence in multiple countries to protect their criminal enterprise and paid bribes to public officials to avoid actions by law enforcement authorities targeting the scheme, according to prosecutors.

The DOJ has filed a civil complaint to seize $225.3 million in cryptocurrency linked to pig butchering scams -- long-con frauds where victims are tricked into fake crypto investments. The funds were laundered through a blockchain network, and the DOJ says recovered money will go toward reimbursing victims. The Verge reports: The 75-page complaint (PDF) filed in the US District Court for the District of Columbia lays out more detail about the seizure. According to it, the US Secret Service (USSS) and Federal Bureau of Investigation (FBI) tied scammers to seven groups of Tether stablecoin tokens. The fraud fell under what's typically known as "pig butchering": a form of long-running confidence scam aimed at tricking victims -- sometimes with a fake romantic relationship -- into what they believe is a profitable crypto investment opportunity, then disappearing with the funds. Pig butchering rings often traffic the workers who directly communicate with victims to Southeast Asian countries, something the DOJ alleges this ring did.

The DOJ says Tether and crypto exchange OKX first alerted law enforcement in 2023 to a series of accounts they believed were helping launder fraudulently obtained currency through a vast and complex web of transactions. The alleged victims include Shan Hanes (referred to in this complaint as S.H.), the former Heartland Tri-State Bank president who was sentenced to 24 years in prison for embezzling tens of millions of dollars to invest in one of the best-known and most devastating pig butchering scams. The complaint lists a number of other victims who lost thousands or millions of dollars they thought they were investing (and did not commit crimes of their own). An FBI report (PDF) cited by the press release concluded overall crypto investment fraud caused $5.8 billion worth of reported losses in 2024.

59-year-old Alex Mashinsky, the founder/former CEO of cryptocurrency lender Celsius Network, "pleaded guilty on Tuesday to two counts of fraud," reports Reuters.

He'd been indicted in July on seven counts of fraud, conspiracy and market manipulation charges, according to the article, and federal prosecutors in Manhattan "said he misled customers of Celsius to persuade them to invest, and artificially inflated the value of his company's proprietary crypto token." On Tuesday, during a hearing before U.S. District Judge John Koeltl, Mashinsky said he pleaded guilty to two out of the seven counts he was initially charged with: commodities fraud, and a fraudulent scheme to manipulate the price of CEL, Celsius' in-house token. In court, Mashinsky admitted to giving Celsius customers "false comfort" by giving an interview in 2021 in which he said Celsius had received approval from regulators for its "Earn" program, which it had not. That program offered to deploy customers' cryptocurrency assets to yield investment returns. He said he also failed to disclose that he had been selling his holdings of CEL, the platform's in-house token.

"I know what I did was wrong, and I want to try to do whatever I can to make it right," Mashinsky said. As part of his plea deal with prosecutors, Mashinsky agreed not to appeal any sentence of 30 years or less — the maximum he faces for the two counts. Koeltl is set to sentence him on April 8, 2025.

Federal prosecutors in Manhattan have said Mashinsky also personally reaped approximately $42 million in proceeds from selling his holdings of the Cel token. "Mashinsky made tens of millions of dollars selling his own CEL at artificially high prices, while his customers were left holding the bag when the company went bankrupt," Damian Williams, the U.S. Attorney in Manhattan, said in a statement on Tuesday... Founded in 2017, Celsius filed for Chapter 11 bankruptcy protection in July 2022 after customers rushed to withdraw deposits as crypto prices fell. Many were initially unable to access their funds... Celsius' former chief revenue officer, Roni Cohen-Pavon, pleaded guilty in September 2023 and agreed to cooperate with prosecutors' investigation.
"The company exited bankruptcy on Jan. 31, and has pivoted to Bitcoin mining..."

Leading fintech and digital asset firms, including Robinhood, Kraken and Galaxy Digital, have introduced a joint stablecoin pegged to the U.S. dollar. Called the Global Dollar Network, it seeks to enhance the stablecoin market by lowering transaction costs, boosting consumer protections, and facilitating cross-border transactions with rewards for institutional participants. Crypto Briefing reports: The network will utilize Paxos's new stablecoin, the Global Dollar (USDG), which complies with the Monetary Authority of Singapore's upcoming stablecoin framework. USDG is designed to return yield on reserve assets to participants who contribute to its adoption, encouraging the development of crypto and financial solutions using the token. The Global Dollar Network aims to address shortcomings in the stablecoin market, such as high transaction costs and limited consumer protections.

The network has opened an invite-only phase for select custodians, exchanges, payment processors, merchants, and banks to develop new solutions using USDG. Initial distribution is available on Anchorage Digital, Galaxy Digital, Kraken, and Paxos platforms, with plans to expand access through additional partners in the coming months.

An anonymous reader shares a report: A giant unregulated currency is undermining America's fight against arms dealers, sanctions busters and scammers. Almost as much money flowed through its network last year as through Visa cards. And it has recently minted more profit than BlackRock, with a tiny fraction of the workforce. Its name: tether. The cryptocurrency has grown into an important cog in the global financial system, with as much as $190 billion changing hands daily. In essence, tether is a digital U.S. dollar -- though one privately controlled in the British Virgin Islands by a secretive crew of owners, with its activities largely hidden from governments.

Known as a stablecoin for its 1:1 peg to the dollar, tether gained early use among crypto aficionados. But it has spread deep into the financial underworld, enabling a parallel economy that operates beyond the reach of U.S. law enforcement. Wherever the U.S. government has restricted access to the dollar financial system -- Iran, Venezuela, Russia -- tether thrives as a sort of incognito dollar used to move money across borders. Russian oligarchs and weapons dealers shuttle tether abroad to buy property and pay suppliers for sanctioned goods. Venezuela's sanctioned state oil firm takes payment in tether for cargoes. Drug cartels, fraud rings and terrorist groups such as Hamas use it to launder income.

Yet in dysfunctional economies such as Argentina and Turkey, beset by hyperinflation and a shortage of hard currency, tether is also a lifeline for people who use it for quotidian payments and as a way to protect their savings. Tether is arguably the first successful real-world product to emerge from the cryptocurrency revolution that began over a decade ago. It has made its owners immensely rich. Tether has $120 billion in assets, mostly risk-free U.S. Treasury bills, along with positions in bitcoin and gold. Last year it generated $6.2 billion in profit, outearning BlackRock, the world's largest asset manager, by $700 million.

An anonymous reader quotes a report from TechCrunch: The ransomware gang that hacked into U.S. health tech giant Change Healthcare used a set of stolen credentials to remotely access the company's systems that weren't protected by multifactor authentication (MFA), according to the chief executive of its parent company, UnitedHealth Group (UHG). UnitedHealth CEO Andrew Witty provided the written testimony ahead of a House subcommittee hearing on Wednesday into the February ransomware attack that caused months of disruption across the U.S. healthcare system. This is the first time the health insurance giant has given an assessment of how hackers broke into Change Healthcare's systems, during which massive amounts of health data were exfiltrated from its systems. UnitedHealth said last week that the hackers stole health data on a "substantial proportion of people in America."

According to Witty's testimony, the criminal hackers "used compromised credentials to remotely access a Change Healthcare Citrix portal." Organizations like Change use Citrix software to let employees access their work computers remotely on their internal networks. Witty did not elaborate on how the credentials were stolen. However, Witty did say the portal "did not have multifactor authentication," which is a basic security feature that prevents the misuse of stolen passwords by requiring a second code sent to an employee's trusted device, such as their phone. It's not known why Change did not set up multifactor authentication on this system, but this will likely become a focus for investigators trying to understand potential deficiencies in the insurer's systems. "Once the threat actor gained access, they moved laterally within the systems in more sophisticated ways and exfiltrated data," said Witty. Witty said the hackers deployed ransomware nine days later on February 21, prompting the health giant to shut down its network to contain the breach. Last week, the medical firm admitted that it paid the ransomware hackers roughly $22 million via bitcoin.

Meanwhile, UnitedHealth said the total costs associated with the ransomware attack amounted to $872 million. "The remediation efforts spent on the attack are ongoing, so the total costs related to business disruption and repairs are likely to exceed $1 billion over time, potentially including the reported $22 million payment made [to the hackers]," notes The Register.

Andy Greenberg reports via Wired: More than two months after the start of a ransomware debacle whose impact ranks among the worst in the history of cybersecurity, the medical firm Change Healthcare finally confirmed what cybercriminals, security researchers, and Bitcoin's blockchain had already made all too clear: that it did indeed pay a ransom to the hackers who targeted the company in February. And yet, it still faces the risk of losing vast amounts of customers' sensitive medical data. In a statement sent to WIRED and other news outlets on Monday evening, Change Healthcare wrote that it paid a ransom to a cybercriminal group extorting the company, a hacker gang known as AlphV or BlackCat. "A ransom was paid as part of the company's commitment to do all it could to protect patient data from disclosure," the statement reads. The company's belated admission of that payment accompanied a new post on its website where it warns that the hackers may have stolen health-related data that would "cover a substantial proportion of people in America."

Cybersecurity and cryptocurrency researchers told WIRED last month that Change Healthcare appeared to have paid that ransom on March 1, pointing to a transaction of 350 bitcoins or roughly $22 million sent into a crypto wallet associated with the AlphV hackers. That transaction was first highlighted in a message on a Russian cybercriminal forum known as RAMP, where one of AlphV's allegedly jilted partners complained that they hadn't received their cut of Change Healthcare's payment. However, for weeks following that transaction, which was publicly visible on Bitcoin's blockchain and which both security firm Recorded Future and blockchain analysis firm TRM Labs told WIRED had been received by AlphV, Change Healthcare repeatedly declined to confirm that it had paid the ransom.

Change Healthcare's confirmation of that extortion payment puts new weight behind the cybersecurity industry's fears that the attack -- and the profit AlphV extracted from it -- will lead ransomware gangs to further target health care companies. "It 100 percent encourages other actors to target health care organizations," Jon DiMaggio, a researcher with cybersecurity firm Analyst1 who focuses on ransomware, told WIRED at the time the transaction was first spotted in March. "And it's one of the industries we don't want ransomware actors to target -- especially when it affects hospitals." Compounding the situation, a conflict between hackers in the ransomware ecosystem has led to a second ransomware group claiming to possess Change Healthcare's stolen data and threatening to sell it to the highest bidder on the dark web. Earlier this month that second group, known as RansomHub, sent WIRED alleged samples of the stolen data that appeared to come from Change Healthcare's network, including patient records and a contract with another health care company.

CNBC visited a small group of bitcoin miners who "set up shop at the site of an extinct volcano" near Kenya's Hell's Gate National Park.

Their mine "consists of a single 500-kilowatt mobile container that, from the outside, looks like a small residential trailer." But what's more interesting is it's operated by a startup called Gridless. (According to its web site Gridless "designs, builds, and operates bitcoin mining sites alongside small-scale renewable energy producers in rural Africa where excess energy is not utilized...") Backed by Jack Dorsey's Block, Gridless electrifies its machines with a mix of solar power and the stranded, wasted energy from a nearby geothermal site. It's one of six mines run by the company in Kenya, Malawi and Zambia, powered by a mix of renewable inputs and working toward a broader mission of securing and decentralizing the bitcoin network... In early 2022, [the three Gridless co-founders] began brainstorming creative solutions for the divide between power generation and capacity, and the lack of access to electricity in Africa. They landed on the idea of bitcoin mining, which could potentially solve a big problem for renewable energy developers by taking their stranded power and spreading it to other parts of the continent.

In Africa, 43% of the population, or roughly 600 million people, lack access to electricity.... Africa is home to an estimated 10 terawatts of solar capacity, 350 gigawatts of hydro and another 110 gigawatts of wind. Some of this renewable energy is being harnessed already, but a lot isn't because building the specialized infrastructure to capture it is expensive. Even with 60% of the best solar resources globally, Africa only has 1% of installed solar PV capacity.

Enter bitcoin miners.

Bitcoin gets a bad rap for the amount of energy it consumes, but it can also help unlock these trapped renewable sources of power. Miners are essentially energy buyers, and co-locating with renewables creates a financial incentive to bolster production. "As often happens, you'll have an overage of power during the day or even at night, and there's nobody to soak that power up," said Hersman. He said his company's 50-kilowatt mining container can "take up whatever is extra throughout the day...." Demand from bitcoin miners on these semi-stranded assets is making renewables in Africa economically viable. The power supplier benefits from selling energy that previously had been discarded, while the energy plants will sometimes lower costs for the customer. At one of the Gridless pilot sites in Kenya, the hydro plant dropped the price of power from 35 cents per kilowatt hour to 25 cents per kWh.

The buildout of capacity is also electrifying households. Gridless says its sites have powered 1,200 houses in Zambia, 1,800 in Malawi and 5,000 in Kenya. The company's mines also have delivered power for containerized cold storage for local farmers, battery charging stations for electric motorcycles and public WiFi points.

Global bank messaging network SWIFT is planning a new platform in the next one to two years to connect the wave of central bank digital currencies now in development to the existing finance system, it has told Reuters. From the report: The move, which would be one of the most significant yet for the nascent CBDC ecosystem given SWIFT's key role in global banking, is likely to be fine-tuned to when the first major ones are launched. Around 90% of the world's central banks are now exploring digital versions of their currencies. Most don't want to be left behind by bitcoin and other cryptocurrencies, but are grappling with technological complexities.

SWIFT's head of innovation, Nick Kerigan, said its latest trial, which took 6 months and involved a 38-member group of central banks, commercial banks and settlement platforms, had been one of the largest global collaborations on CBDCs and "tokenised" assets to date. It focused on ensuring different countries' CBDCs can all be used together even if built on different underlying technologies, or "protocols", thereby reducing payment system fragmentation risks.

CoinDesk: The Ethereum Foundation -- the Swiss non-profit organization at the heart of the Ethereum ecosystem -- is under investigation by an unnamed "state authority," according to the group's website's GitHub repository. The scope of the investigation and its focus was unknown at press time. According to the GitHub commit dated Feb. 26, 2024, "we have received a voluntary enquiry from a state authority that included a requirement for confidentiality."

The investigation comes during a time of change for Ethereum's technology. Ethereum is the second-largest blockchain by market cap after Bitcoin, launching in 2015 following an initial coin offering for the chain's native ETH token. Earlier this month, the chain underwent a major technical upgrade, dubbed Dencun, designed to bring down transaction costs for users of Ethereum-based layer-2 platforms.

A federal judge in Texas has granted a temporary order blocking the U.S. government from monitoring the energy usage of cryptocurrency mining operations, stating that the industry had shown it would suffer "irreparable injury" if it was made to comply. The Guardian reports: The US Department of Energy had launched an "eemergency" initiative last month aimed at surveying the energy use of mining operations, which typically use vast amounts of computing power to solve various mathematical puzzles to add new tokens to an online network known as a blockchain, allowing the mining of currency such as bitcoin. The growth of cryptocurrency, and the associated mining of it, has been blamed for a surge in electricity use as data centers have sprung up across the US, even reviving, in some cases, ailing coal plants to help power the mining. [...]

"The massive energy consumption of cryptocurrency mining and its rapid growth in the United States threaten to undermine progress towards achieving climate goals, and threaten grids, communities and ratepayers," said Mandy DeRoche, deputy managing attorney of the clean energy program at Earthjustice. Until now, a lack of publicly available information has only benefited an "industry that has thrived in the shadows," DeRoche added.

The crypto mining industry, however, has claimed it is the victim of a "politically motivated campaign" by Joe Biden's administration and has, for now, succeeded in averting a survey that it contends is unfairly onerous. "This is an attack against legitimate American businesses with the administration feigning an emergency to score political points," said Lee Bratcher, president the Texas Blockchain Council, one of the groups that sued to stop the survey. "The White House has been clear that they desire to 'to limit or eliminate' bitcoin miners from operating in the United States. "Although bitcoin is resilient and cannot be banned, the administration is seeking to make the lives of bitcoin miners, their employees, and their communities too difficult to bear operating in the United States. This is deeply concerning."

Molly White of Web3 is Going Great fame reviews Read Write Own, a book by VC firm Andreessen Horowitz lead crypto partner Chris Dixon. According to its own description, the book seeks to offer an exploration of "the power of blockchains to reshape the future of the internet." Writes White: After three chapters in which Dixon provides a (rather revisionist) history of the web to date, explains the mechanics of blockchains, and goes over the types of things one might theoretically be able to do with a blockchain, we are left with "Part Four: Here and Now", then the final "Part Five: What's Next". The name of Part Four suggests that he will perhaps lay out a list of blockchain projects that are currently successfully solving real problems.

Dixon speaks of how in the early days of "web1", or the "read era" (a period he defines as 1990-2005), "anyone could type a few words into a web browser and read about almost any topic through websites". This completely ignores that few people -- hardly just "anyone" -- had access to a computer, much less a computer with internet access, in that time. By 2005, around 16% of people globally were online. This may be why Part Four is precisely four and a half pages long. And rather than name any successful projects, Dixon instead spends his few pages excoriating the "casino" projects that he says have given crypto a bad rap prompting regulatory scrutiny that is making "ethical entrepreneurs ... afraid to build products" in the United States.

In fact, throughout the entire book, Dixon fails to identify a single blockchain project that has successfully provided a non-speculative service at any kind of scale. The closest he ever comes is when he speaks of how "for decades, technologists have dreamed of building a grassroots internet access provider". He describes one project that "got further than anyone else": Helium. He's right, as long as you ignore the fact that Helium was providing LoRaWAN, not Internet, that by the time he was writing his book Helium hotspots had long since passed the phase where they might generate even enough tokens for their operators to merely break even, and that the network was pulling in somewhere around $1,150 in usage fees a month despite the company being valued at $1.2 billion. Oh, and that the company had widely lied to the public about its supposed big-name clients, and that its executives have been accused of hoarding the project's token to enrich themselves. But hey, a16z sunk millions into Helium (a fact Dixon never mentions), so might as well try to drum up some new interest! Further reading: How Tech Firms Made a Crypto-Boosting Book an NYT Best Seller by Gaming the System.

Stephen Harrison, an Englishman living in Thailand who posed as chief executive Steven Reece Lewis for the launch of the HyperVerse crypto scheme, told the Guardian Australia that he was paid to play the role of chief executive but denies having 'pocketed' any of the money lost. He says he received 180,000 Thai baht (about $7,500) over nine months and a free suit, adding that he was "shocked" to learn the company had presented him as having fake credentials to promote the scheme. From the report: He said he felt sorry for those who had lost money in relation to the scheme -- which he said he had no role in -- an amount Chainalysis estimates at US$1.3 billion in 2022 alone. "I am sorry for these people," he said. "Because they believed some idea with me at the forefront and believed in what I said, and God knows what these people have lost. And I do feel bad about this. "I do feel deeply sorry for these people, I really do. You know, it's horrible for them. I just hope that there is some resolution. I know it's hard to get the money back off these people or whatever, but I just hope there can be some justice served in all of this where they can get to the bottom of this." He said he wanted to make clear he had "certainly not pocketed" any of the money lost by investors.

Harrison, who at the time was a freelance television presenter engaged in unpaid football commentary, said he had been approached and offered the HyperVerse work by a friend of a friend. He said he was new to the industry and had been open to picking up more work and experience as a corporate "presenter." "I was told I was acting out a role to represent the business and many people do this," Harrison said. He said he trusted his agent and accepted that. After reading through the scripts he said he was initially suspicious about the company he was hired to represent because he was unfamiliar with the crypto industry, but said he had been reassured by his agent that the company was legitimate. He said he had also done some of his own online research into the organization and found articles about the Australian blockchain entrepreneur and HyperTech chairman Sam Lee. "I went away and I actually looked at the company because I was concerned that it could be a scam," Harrison said. "So I looked online a bit and everything seemed OK, so I rolled with it." The HyperVerse crypto scheme was promoted by Lee and his business partner Ryan Xu, both of which were founders of the collapsed Australian bitcoin company Blockchain Global. "Blockchain Global owes creditors $58 million and its liquidator has referred Xu and Lee to the Australian Securities and Investments Commission for alleged possible breaches of the Corporations Act," reports The Guardian. "Asic has said it does not intend to take action at this time."

Rodney Burton, known as "Bitcoin Rodney," was arrested and charged in the U.S on Monday for his alleged role in promoting the HyperVerse crypto scheme. The IRS alleges Burton was "part of a network that made 'fraudulent' presentations claiming high returns for investors based on crypto-mining operations that did not exist," reports The Guardian.

According to Polish news channel TVN24, a secret cryptomining rig was found under the floors of a Polish court, stealing thousands of Polish Zlotys worth of energy per month (the equivalent of roughly $250 per 1,000 Zlotys). "It's currently unknown how long the rig was running because the illegal operation went undetected, partly because the computers used were connected to the Internet through their own modems rather than through the court's network," reports Ars Technica. From the report: While no one has been charged yet with any crimes, the court seemingly has suspects. Within two weeks of finding the rig, the court terminated a contract with a company responsible for IT maintenance in the building, TVN24 reported. Before the contract ended, the company fired two employees that it said were responsible for maintenance in the parts of the building where the cryptomine was hidden. Poland's top law enforcement officials, the Internal Security Agency, have been called in to investigate. The Warsaw District Prosecutor's Office has hired IT experts to help determine exactly how much electricity was stolen from Poland's Supreme Administrative Court in Warsaw, TVN24 reported.

The Supreme Administrative Court is the last resort for sensitive business and tax disputes, but no records seem to have been compromised. Judge Sylwester Marciniak -- the chairman of the Judicial Information Department of the Supreme Administrative Court -- told TVN24 that the discovery of the cryptomine "did not result in any threat to the security of data stored" in the court.

An anonymous reader quotes a report from Wired: Hamas' attacks against Israel on October 7 have shifted the geopolitical landscape and triggered a looming Israeli ground assault in the Gaza Strip. Now the ripple effects are reaching the cryptocurrency industry, where they've become the United States Department of the Treasury's rallying cry for a crackdown on cryptocurrency anonymity services. The US Treasury's Financial Crimes Enforcement Network (FinCEN) [on October 19th] released a set of proposed rules that would designate foreign cryptocurrency "mixers" -- services that blend users' digital funds to offer more anonymity and make them harder to trace -- as money laundering tools that pose a threat to national security and would thus face new sanctions and regulations. The new rules, if adopted following a 90-day period of public comment and debate, would potentially represent the broadest restrictions imposed yet on the mixing services and could make it far harder for cryptocurrency holders to put their money through the services before cashing it out at a US cryptocurrency exchange, or even at a foreign exchange that accepts US customers.

While the proposed rules were almost certainly in the works long before October 7, the Treasury's announcement tied the push for a change in policy directly to the use of cryptocurrency by Hamas and militant groups in Gaza. "The Treasury Department is aggressively combatting illicit use of all aspects of the CVC ecosystem by terrorist groups," Wally Adeyemo, deputy secretary of the Treasury, wrote in a statement, using the term "CVC" to mean convertible virtual currency. Adeyemo says that this includes Hamas and Palestinian Islamic Jihad, a militant group that often aligns with Hamas, which Israel blamed for an explosion at a hospital in Gaza earlier this week.

Cryptocurrency mixers have existed almost as long as Bitcoin itself. They offer to take in a user's cryptocurrency, blend it with that of other users, and return the funds so that they are harder to follow from their origin to destination on blockchains, which generally record every transaction in full public view. The Treasury's rule change would designate those cryptocurrency-mixing services -- or at least the majority of them that are based outside the US -- as a "primary money laundering concern." They would thus be considered a threat to US national security as defined by section 311 of the Patriot Act, a section of the law designed to restrict how domestic financial institutions interact with potential sources of terrorist financing. The rule change would mean that US financial services, as well foreign ones with US customers -- including cryptocurrency exchanges -- would have to go through extra record-keeping and reporting requirements for funds that have touched a foreign cryptocurrency mixer, and it might even allow the Treasury to block US exchanges from handling those funds. "We've never seen anything like this before," says Ari Redbord, the head of global policy for TRM Labs, a blockchain analysis firm. Redbord notes that the rule change isn't proposing a blanket ban on foreign mixing services, only new rules for interacting with them. "The reality, however, is that 311 actions oftentimes have a sort of name-and-shame effect, where people are just not wanting to engage with these platforms out of fear of being caught up in money laundering or other type of illicit activity."

"I think the challenge for regulators is, how do we thread the needle between stopping illicit actors from using these platforms but at the same time allow regular users to enable some degree of privacy?" Redbord added. "I think the concern is that this could very much be throwing the baby out with the bathwater."

One 80-year-old retired teacher in Los Angeles lost $69,000 in bitcoin to scammers. And 46,000 people lost over $1 billion to crypto scams since 2021 (according to America's Federal Trade Commission).

Now the Los Angeles Times reports California's new moves against scammers using bitcoin ATMs, with a bill one representative says "is about ensuring that people who have been frauded in our communities don't continue to watch our state step aside when we know that these are real problems that are happening." Starting in January, California will limit cryptocurrency ATM transactions to $1,000 per day per person under Senate Bill 401, which Gov. Gavin Newsom signed into law. Some bitcoin ATM machines advertise limits as high as $50,000... Victims of bitcoin ATM scams say limiting the transactions will give people more time to figure out they're being tricked and prevent them from using large amounts of cash to buy cryptocurrency.

But crypto ATM operators say the new laws will harm their industry and the small businesses they pay to rent space for the machines. There are more than 3,200 bitcoin ATMs in California, according to Coin ATM Radar, a site that tracks the machines' locations. "This bill fails to adequately address how to crack down on fraud, and instead takes a punitive path focused on a specific technology that will shudder the industry and hurt consumers, while doing nothing to stop bad actors," said Charles Belle, executive director of the Blockchain Advocacy Coalition...

Law enforcement has cracked down on unlicensed crypto ATMs, but it can be tough for consumers to tell how serious the industry is about addressing the concerns. In 2020, a Yorba Linda man pleaded guilty to charges of operating unlicensed bitcoin ATMs and failing to maintain an anti-money-laundering program even though he knew criminals were using the funds. The illegal business, known as Herocoin, allowed people to buy and sell bitcoin in transactions of up to $25,000 and charged a fee of up to 25%.
So there's also provisions in the law against exorbitant fees: The new law also bars bitcoin ATM operators from collecting fees higher than $5 or 15% of the transaction, whichever is greater, starting in 2025. Legislative staff members visited a crypto kiosk in Sacramento and found markups as high as 33% on some digital assets when they compared the prices at which cryptocurrency is bought and sold. Typically, a crypto ATM charges fees between 12% and 25% over the value of the digital asset, according to a legislative analysis...

Another law would by July 2025 require digital financial asset businesses to obtain a license from the California Department of Financial Protection and Innovation.

An anonymous Slashdot reader shared this report from the New York Times: The collapse in cryptocurrency prices last year forced a procession of major firms into bankruptcy, triggering a government crackdown and erasing the savings of millions of inexperienced investors. But for a small group of corporate turnaround specialists, crypto's implosion has become a financial bonanza.

Lawyers, accountants, consultants, cryptocurrency analysts and other professionals have racked up more than $700 million in fees since last year from the bankruptcies of five major crypto firms, including the digital currency exchange FTX, according to a New York Times analysis of court records. That sum is likely to grow significantly as the cases unfold over the coming months. Large fees are common in corporate bankruptcies, which require complex and time-intensive legal work to untangle. But in the crypto world, the mounting fees have sparked widespread outrage because many of the people owed money are amateur traders who lost their personal savings, rather than corporations with the ability to weather a financial crisis. Every dollar in fees is deducted from the pool of funds that will be returned to creditors at the end of the bankruptcies.

The fees are "exorbitant and ridiculous," said Daniel Frishberg, a 19-year-old investor who lost about $3,000 when the crypto company Celsius Network filed for bankruptcy last year. "At every hearing, they have an army of people there, and most of them don't need to be there. You don't need 20 people taking notes."