Bitcoin News in Review: SEC, Bitcoin Price, Hacks, and More

Journalist:
Neil Sardesai @@neilsardesai
November 3, 2014

Happy Sunday, and welcome back to another Bitcoin News in Review, where we feature some of the biggest stories of the week here on CryptoCoins News. This week (26 October – 2 November), it was revealed that the United States Securities and Exchange Commission will send out inquiry letters to hundreds of bitcoin companies, the bitcoin price continued a slow and steady decline, Drupal and CurrentC were targets of cyberattacks, and more. Keep scrolling for this week’s top stories.

SEC Sends Out Inquiry Letters to Hundreds of Bitcoin Companies

The U.S. SEC was created to regulate the stock market and enforce related laws such as the Securities Act of 1933, which requires any sale or offer of securities to be registered with the SEC. Unfortunately for many bitcoin companies, this law also applies to securities on platforms such as Counterparty and Cryptostocks. Hundreds of bitcoin companies have released unregistered securities on Counterparty and Cryptostocks, and the SEC is now asking these companies to hand over any documentation they have about their offerings. While some companies anticipated this move from the SEC and already had the necessary information prepared, others believed that their offerings technically weren’t securities at all. The SEC has already fined Erik Voorhees for Satoshi Dice’s unregistered IPO. It’s likely that more companies may face similar fines.

The Bitcoin Price

At the time of this article, the price of one bitcoin is ~$325.8 USD. The price had rebounded from a little over $330 to $350, but then started dropping again at a slow and steady rate. It’s possible that the price may even reach the $200’s, given the current downwards trend. Of course, nothing is certain with the bitcoin price. Have your own theories about the bitcoin price? Please share them in the comments section below.

Drupal and CurrentC Targets of Cyberattacks

The popular content management framework Drupal, used by millions of websites including whitehouse.gov, had a critical security bug that may have compromised up to 12 million websites. The bug is so serious that an attacker could have obtained all data stored on a Drupal-powered website as well as have installed backdoors on the site. Drupal has instructed users that if they did not apply for a patch for the recent bug, they should “assume” that they have been hacked.

“Attackers may have copied all data out of your site and could use it maliciously. There may be no trace of the attack.”

It’s estimated that at least 2.1% of all web sites online use the Drupal framework.

In related hacking news, MCX’s upcoming CurrentC has already been hacked. CurrentC rivals services like Apple Pay and Google Wallet as a POS solution. Whereas Apple Pay and Google Wallet benefit consumers by making quick and secure payments with NFC, CurrentC benefits merchants by helping them cut credit card fees. CurrentC directly links to a user’s checking account, stores information such as email addresses, driver’s license numbers, and social security numbers in the cloud, and relies on QR codes. This week, the platform was breached, leading to the theft of hundreds of email addresses. Other information was not compromised, and the mobile application remains unaffected. However, it certainly calls to question CurrentC’s security practices.

FinCEN Releases New Virtual Currency Guidance Notes

The United States Financial Crimes Enforcement Network, responsible for combating domestic and international money laundering and other financial crimes, recently released new guidance for virtual currency payment systems and trading platforms. According to FinCEN, the above two require money transmitter licenses under the new clarifications. How this affects companies like Bitstamp remains to be seen.

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That’s it for this week. To keep up with the latest cryptocurrency news, be sure to follow CCN on Facebook and Twitter.

Images from Shutterstock.

Tags: fincensec
Neil Sardesai @@neilsardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.