Bitcoin Pioneer Jeff Garzik Subpoenaed in 4 Bln Lawsuit Against Craig Wright

Bitcoin Pioneer Jeff Garzik Subpoenaed in $4 Bln Lawsuit Against Craig Wright

            

Software engineer and Bitcoin (BTC) pioneer Jeff Garzik

has been subpoenaed by a United States District Court in connection with the $4 billion lawsuit against Craig Wright, according to a document Garzik posted in a tweet on March 15. The suit was initially filed last February with the U.S. District Court of the Southern District of Florida, with the family of David Kleiman —  a computer scientist, whom many suspect to have been one of the developers of Bitcoin and blockchain technology — alleging that Wright stole up to 1.1 million BTC after he passed away.

Following Kleiman’s death in 2013, Wright, who proclaimed himself to be Bitcoin creator Satoshi Nakamoto, contacted his estate, allegedly claiming to want to help dispose of the Bitcoin fortune. Kleiman’s family claims that Wright did not return the funds. The official complaint states that Wright “forged a series of contracts that purported to transfer Dave’s assets to Craig and/or companies controlled by him. Craig backdated these contracts and forged Dave’s signature on them.”

Wright subsequently requested the court to dismiss the lawsuit against him, however the court rejected the request. The court document confirms that “the Court finds that Plaintiffs have sufficiently alleged a claim for conversion.” Now, the subpoena calls Garzik to appear in court and reveal any evidence to the “personal theory” that Kleiman was Satoshi Nakamoto. The subpoena also requests to provide all communications, agreements and documents related to both Wright and Kleiman.

Additionally, the document asks Garzik to provide information concerning Bitcoin mining for the period between January 1, 2009 and April, 2013, and refers to the search for documents related to Silk Road, Liberty Reserve,  Mt. Gox, and the Prometheus Project. The subpoena also asks for any communications with financial cryptographer Ian Grigg, CEO of Centre for Strategic Cyberspace + Security Science, Richard Zaluski, and early Bitcoin investor Roger Ver, among others. Last November, commenting on various hypotheses as to the Bitcoin creator’s identity,

Garzik said:

"My personal theory is that it’s [Satoshi Nakamoto] Floridian Dave Kleiman. It matches his coding style, this gentleman was self taught. And the Bitcoin coder was someone who was very, very smart, but not a classically trained software engineer.”

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/bitcoin-pioneer-jeff-garzik-subpoenaed-in-4-bln-lawsuit-against-craig-wright

SEC Chairman Highlights Investor Protection in Regard to Bitcoin ETF

SEC Chairman Highlights Investor Protection in Regard to Bitcoin ETF

            

United States Securities and Exchanges Commission (SEC) Chairman Jay Clayton

is still concerned about investor protection when it comes to the commission approving a Bitcoin (BTC) Exchange-Traded Fund (ETF). The SEC chairman spoke about crypto in an interview with FOX Business on March 14.

In the interview, Clayton claimed to be neutral toward digital currencies, saying that he is not a spokesperson against the asset. The SEC chairman explained that he is concerned with the potential for manipulation associated with the space, and wants to

guarantee investor protection:

“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.”

While Clayton declined to comment on any specific Bitcoin ETF application, he still noted that there “may be a case where a Bitcoin ETF could satisfy our rules.”

The chairman elaborated:

“I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”

Recently, the SEC announced it will soon start the countdown period to approve or disapprove the VanEck/SolidX Bitcoin ETF. After withdrawing the ETF application due to the U.S. government shutdown in late January, the Chicago Board Options Exchange (CBOE) re-submitted the application a week later. Earlier this week, Jay Clayton confirmed his previous statement that Ethereum (ETH) and similar cryptocurrencies are not securities under U.S. law. However, Clayton stipulated that he meant that a digital asset’s definition as a security can change over time.

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https://cointelegraph.com/news/sec-chairman-highlights-investor-protection-in-regard-to-bitcoin-etf

Read previous article at:
https://markethive.com/group/cryptocoin/blog/ledger-client-address-issue-and-fake-deposits-community-spots-two-vulnerabilities-related-to-monero

US Marshals Service Issues Information Request on Management of Forfeited Crypto Assets

US Marshals Service Issues Information Request on Management of Forfeited Crypto Assets

                              

United States federal law enforcement agency,

the U.S. Marshals Service (USMS), is looking to set up an agent for managing confiscated cryptocurrency, according to public documents released on March 5. The USMS has recently published two draft documents including a Request for Information (RFI) for legal procedures of the management and disposal of forfeited crypto assets.

As a key component of the department's Asset Forfeiture Program (AFP) operating within the U.S. Department of Justice (DoJ), the USMS intends to assign an agent or contractor that will manage and dispose of seized or forfeited virtual currency. By initiating the RFI, the USMS expects to improve its current custodial operations by maintaining a complete and accurate accounting of the USMS’ virtual currency inventory. In the first document, the Performance Work Statement (PWS), the USMS describes the full range of forfeited virtual currency management and disposal services, including general procedures and responsibilities of the contractor.

According to the document, the contractor must ensure the accuracy and security of all virtual currency transactions, including the direct exchange of virtual currencies into U.S. dollars, the exchange into a more liquid form of virtual currency, a return to the owner and others. The PWS contract includes major activities associated with the management of virtual currencies, including accounting, customer management, audit compliance, managing blockchain forks, wallet creation, transformation of token assets into coin assets and others.

In the second document, the Quality Assurance Surveillance Plan (QASP), the USMS establishes an evaluation system for the performance of the contractor. The QASP describes major authorities such as Contracting Officer and Contracting Officer’s Representative that are responsible for performance measurement and effective evaluation of the contractor’s compliance. The USMS noted that the recently issued RFI is provided solely for information and planning purposes and does not represent either a Request for Proposal (RFP) or a promise to issue an RFP in the future. Last year, the USMS announced a bid auction for approximately 660 confiscated Bitcoins (BTC), with the auction participants required to deposit $200,000 in order to take part.

Article Produced By
Helen Partz

Helen is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2017, she joined Cointelegraph as a writer.

https://cointelegraph.com/news/us-marshals-service-issues-information-request-on-management-of-forfeited-crypto-assets

Securities Lawsuit Against Ripple to Stay in Federal Court

Securities Lawsuit Against Ripple to Stay in Federal Court

                                 

An ongoing securities lawsuit against payment startup Ripple

will stay in federal court, per a recent ruling. The news was announced by lawyer Jake Chervinsky in a tweet on Mar. 1. “The Court has denied the plaintiffs' motions to remand. This means the case stays in federal court, a minor but meaningful victory for Ripple,” Chervinsky wrote in the post. The ruling reads that United States District Judge Phyllis J. Hamilton, of the Northern District of California, has ordered that the class action suit against Ripple Labs, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse, for the sale of unregistered securities must stay in federal court.

The document also mentions the court’s previous explanation that “[b]ecause interstate class actions typically involve more people, more money, and more interstate commerce ramifications than any other type of lawsuit, the Committee firmly believes that such cases properly belong in federal court.” Per the ruling, the parties have been given 14 days to conduct a meeting and determine how the litigation should proceed. On the expiry of 30 days of the order, the plaintiffs shall reportedly file an amendment consolidated compliant — i.e. a revision of the original complaint. Lawyers representing Ripple in the lawsuit filed an application to move the case to federal level in November of last year. That would purportedly allow Ripple to prove definitively that its XRP token is not a security under U.S. law, should it win.

The class action lawsuit against Ripple was initially filed by law firm Taylor-Copeland in May of last year, stating that the plaintiff, Ryan Coffey, purchased 650 XRP on Jan. 5 and sold it on Jan. 18 of last year for USDT. He then exchanged it for U.S. dollars, purportedly sustaining a loss of around 32 percent, or $551.89. The class action suits alleges that the defendants violated both the Securities Act and the California Corporations Code. The plaintiffs on whose behalf Coffey filed the claim are asking for payment for attorney’s fees, the costs of the suit, and punitive damages, as well as declaring the sale of XRP an unregistered securities sale.

Article Produced By
Ana Alexandre

Total change in her career took Anastasia into the world of analytics and business information as a researcher and translator in 2010. Some time later she got into FinTech, a dynamically developing segment at the intersection of the financial services and technology. Ana joined Cointelegraph in September 2017.

https://cointelegraph.com/news/securities-lawsuit-against-ripple-to-stay-in-federal-court