Cryptocurrency
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California makes it legal to pay with Bitcoin and other virtual currencies
If you've previously paid for goods with Bitcoin or other digital currency in California, you're technically a criminal -- the state has long had a law requiring US dollars, even if it hasn't been enforced. As of this weekend, though, you're officially in the clear. Governor Jerry Brown has signed a bill that legitimizes payments with Bitcoin, other forms of virtual money, community currencies and reward systems like coupons and points. As state assembly member Roger Dickinson explained when fighting for the measure, modern commerce has "expanded" beyond cash and credit; to him, it only makes sense that the law keeps up with the times.
Mt. Gox Bitcoin exchange gets approval for US bankruptcy protection
The Mt. Gox Bitcoin exchange may still be reeling from the botnet discovery that ruined its business, but it just got a big reprieve. A US court has approved Mt. Gox's Chapter 15 bankruptcy protection, preventing creditors who sued the company from seizing any American assets (including servers) or pressing for evidence. The exchange can also chase down any funds it needs to repay its debts and, if necessary, file lawsuits of its own.
US targeting Bitcoin exchanges in hunt for drug money
While Bitcoin tries to go mainstream, many supporters still celebrate its "anarchist spirit" -- but certainly not the FBI. According to the WSJ, they're probing the now-collapsed Mt. Gox exchange and several others in connection to Silk road, the notorious former drug marketplace. Authorities recently arrested its founder, Ross Albrecht, and charged him with money laundering, drug trafficking and other offenses. They've reportedly now issued subpoenas to exchanges including Mt. Gox, looking to see if they gave Silk Road crooks hard currency in exchange for Bitcoins. The investigation has just started, but such businesses now seem to be in the fed's cross-hairs -- despite the underworld's love for cryptocurrency, they still need cold cash.
Bitcoin bank entices mom and pop with insurance, fraud checks and no fees
If Bitcoin is meant to be an anonymous, decentralized currency that is free of intermediaries and national restrictions, then today's launch of a new Bitcoin bank, called Circle, might seem deeply antithetical. Circle's website does its utmost to look like that of an ordinary financial service, using words like "withdrawing," "depositing" and "digital money," instead of the usual terms about buying and selling Bitcoins. It follows US anti-money laundering rules, requiring users to identify themselves, and it expects you to connect your Bitcoin account to your normal credit card or bank accounts. Crypto-currency purists just aren't going to dig it, but then again Circle claims to offer some serious advantages that are missing from other, more direct approaches to Bitcoin banking.
Hackers set to release Bitcoin-laundering app 'Dark Wallet'
Ever since sites like Silk Road showed the dark side of anonymous Bitcoin transactions, governments have been trying to regulate the crypto-currency. But a group of coders -- headed by 3D-printed gun creator Cody Wilson and Amir Taaki (above) -- want to keep that genie out of the bottle with a new app called Dark Wallet. It was first launched on Indiegogo, where it met its $50,000 funding goal, thanks in part to Bitcoin donations. The software could make it nearly impossible to trace the currency's flow, thanks to a one-two punch of encryption and "CoinJoin" technology. In brief, the latter code registers multiple transactions as a single movement of funds, masking transfers.
MIT students raise cash to give $100 in Bitcoins to every undergrad
Starting this fall, every MIT undergrad will have at least $100 worth of Bitcoins to their name, thanks to a couple of students who've raised half a million to do so. But, they're not just doing it so their schoolmates can eat something other than ramen -- this is actually an official project by the school's Bitcoin Club, so professors and researchers from the institute can study how students spend their virtual money. This initiative, started by computer science sophomore Jeremy Rubin and MIT Bitcoin Club president Dan Elitzer, was funded by MIT alumni and people with vested interest in the currency. The two masterminds believe this move is necessary for MIT to continue being at the "forefront of emerging technologies." Rubin even said: Giving students access to cryptocurrencies is analogous to providing them with internet access at the dawn of the internet era. [Image credit: George Frey/Getty Images]
Yelp now shows the local businesses that let you pay with Bitcoin
Some online retailers are quick to say whether or not they'll accept Bitcoins, but local shops aren't always so forthcoming -- and community mapping efforts like CoinMap only reveal so much. It might not be hard to find a cryptocurrency-friendly store in the near future, though. Yelp has added a flag that lets business owners identify themselves as Bitcoin-friendly, making it easier to spot places that take virtual cash.
Visualized: omg hi, Phil Parsons Racing's Dogecoin-sponsored entry, is much amaze
Josh Wise's NASCAR entry in the Aaron's 499 at the Talladega Superspeedway is wrapped and ready to race after raising more than $55,000 in Dogecoin, a Doge meme-inspired virtual currency. The NASCAR Ford Fusion started the season as a plain, black, sponsorless car, but some kindness from the subreddit /r/Dogecoin, miraculously transformed the car into Shiba Inu-bedecked masterpiece. Oh and don't worry if you miss the running of the race May 4th, Lionel Racing apparently makes official die-cast replicas in two different scales of every NASCAR entry.
IRS says bitcoins are taxable property, but not currency
People love referring to Bitcoin as a "cryptocurrency," but the Internal Revenue Service looks at it a little differently. According to a new IRS statement, Bitcoin should be considered property, not currency. What does that mean for US Bitcoin aficionados? Quite a bit, actually.
Bitcoin's elusive founder reportedly discovered living in California (update: maybe not)
There have been many theories bandied about as to the true identity of Satoshi Nakamoto, the creator of Bitcoin. Nothing conclusive has married the name to an individual or group, but now Newsweek claims to have found the Nakamoto, a 64-year-old Japanese-American man of the same name residing in California. Allegedly living an understated life, Nakamoto's said to no longer be connected to the digital currency he's implicated in making. We know this all sounds annoyingly cut and dried (a story's often more exciting than the reality, after all), but there's still Nakamoto's name changes and classified government work, among other things, to keep things mysterious. Whether this truly is the father of Bitcoin is still up for discussion, too -- there's still been no clear admission as such -- so we'll just point you to the Newsweek piece and let you make your own mind up. Update: After an eventful day of dodging reporters and engaging in a multi-car chase through Los Angeles, Nakamoto has sat down with the Associated Press to strongly deny he has anything to do with the digital currency. Indeed, he told the AP that he's never even heard of Bitcoin until three weeks ago when his son told him a reporter called to ask questions about it. However, the Newsweek article itself quotes Nakamoto's brother as saying that "he'll never admit to starting Bitcoin" and that "he'll deny everything." All of which is to say the true identity of Bitcoin's founder remains very much unconfirmed. Update 2: Apparently the genuine Satoshi Nakamoto has just posted on to the P2P Foundation (a forum for peer to peer currency) stating that he is not Dorian Satoshi Nakamoto, the person whom Newsweek fingered as Bitcoin's founder.
Bitcoin and other cryptocurrencies compromised by Pony botnet
It looks like the Pony botnet that stole two million passwords in December has an even more egregious sibling galloping around. According to security firm Trustwave, this more advanced botnet has compromised 700,000 various online accounts up to date (it's been active since September), including 85 Bitcoin and other cryptocurrency wallets mostly from Europe. In the months since the equine-loving hackers got the wallets' private keys, a total of $220,000 have been transferred into and out of the accounts. Because anyone can take over a wallet with the appropriate private key (and cryptocurrencies' transactions go through anonymously), it's unclear whether that much money was actually stolen. Some of those transactions could very well be performed by the original owners themselves. Still, add this incident on top of the $1.2 million Input.io Bitcoin heist in 2013, and it's clear users need to start using (strong) transaction passwords and store their wallets offline. Those who've sadly been negligent in the security department can use Trustwave's Bitcoin tool to check if they own one of the 85 accounts. Considering popular Bitcoin exchange website Mt. Gox just went dark, as well, we hope nobody's retirement funds got wiped out.
