Weekly Altcoin News Update: Brock Pierce Resigns from Mastercoin Foundation and a Nxt Stakeholder Posts a 500 Bitcoin Bounty

Journalist:
July 15, 2014

Welcome to the CryptoCoinsNews weekly altcoin news update, where we examine important altcoin stories that have gone under-the-radar. This week’s article examines Brock Pierce’s resignation from the Mastercoin Foundation and a huge Bitcoin bounty offered by a Nxt user whose coins were hacked.

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Brock Pierce Resigns from Mastercoin Foundation

Controversial Bitcoin Foundation board member and Realcoin founder Brock Pierce has resigned from his position as Mastercoin Foundation board member. Pierce was one of Mastercoin’s first investors and has been very involved in the project’s development.

Pierce stated that investors should not interpret his departure as a loss of faith in Mastercoin.

My belief and confidence in the project and team has not changed in the slightest…I will continue to be large stakeholder in MSC.

Rather, the former Mighty Ducks star conveyed his other duties have spread his attention thin.

The reason for my stepping down is that I have reached the limit of the number of boards I can serve on and be effective. My partner Jonathan Yantis is already on the board of the Mastercoin Foundation so I know my interests will continue to be represented by him and the rest of the board.

Presumably, this means Pierce will be free to devote more time to his work with the Bitcoin Foundation and Realcoin. However, considering the negative feelings much of the Bitcoin community harbors toward  Brock Pierce, they may not view this as a welcome development.

Mastercoin also announced several people, including Maidsafe COO Nick Lambert, have been added to the Mastercoin board in an observational role.

Nxt User Offers 500 Bitcoin Bounty to Hunt Down Stolen Funds

There is no greater horror story in the cryptocurrency community than having coins stolen by a hacker. For victims, the worst part of a hack is feeling powerless to fix things. When Androklis Polymenis (alias kLee), one of Nxt’s original 74 stakeholders, recently fell victim to one of these attacks, he was not content to sit idly by while the hacker ran off with his coins. He chose to fight back.

On July 11, Polymenis announced on BitcoinTalk that a hacker had stolen 1,170 bitcoins and 6 million Nxt from his personal accounts. Additionally, the hacker had gained access to Nxt’s infrastructure accounts using Polymenis’ personal key. In all, the hacker seized more than $1 million worth of cryptocurrency assets.

Upon spotting the attack, Polymenis took swift action. When the hacker tried to liquidate the Nxt on BTER, Polymenis contacted BTER, who quickly froze the hacker’s accounts. The hacker was able to sell part of his holdings, but BTER returned more than 3 million Nxt to Polymenis and the community.

The bitcoins were harder to track down, so Polymenis offered to pay a 43% bounty on any stolen bitcoins community members could retrieve for him. If someone returned all the stolen bitcoins, he or she would receive over 500 bitcoins.

The 500 bitcoin bounty gained traction on both reddit and BitcoinTalk. This may have spooked the thief, who soon contacted Polymenis. The hacker offered to return 462 bitcoins (more than $287,000) as well as up to 1/2 of the community Nxt funds if Polymenis would close the bounty and cease searching for the stolen funds. Polymenis agreed to the compromise and promised to replace the remaining stolen Nxt community funds from his own stake.

Unlike many hacks, the victim in this one was able to reclaim a portion of his coins. Polymenis’ proactive action following the attack should serve as a model for anyone unfortunate enough to suffer the same fate.

Featured image by Shutterstock.

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.