{"id":13720,"date":"2019-06-09T21:53:42","date_gmt":"2019-06-09T21:53:42","guid":{"rendered":"https:\/\/davidgerard.co.uk\/blockchain\/?p=13720"},"modified":"2019-06-09T21:53:42","modified_gmt":"2019-06-09T21:53:42","slug":"news-sec-v-kik-poloniex-clam-disaster-facebook-globalcoin-icoxs-catholic-coin-lightning-network-node-profits","status":"publish","type":"post","link":"https:\/\/davidgerard.co.uk\/blockchain\/2019\/06\/09\/news-sec-v-kik-poloniex-clam-disaster-facebook-globalcoin-icoxs-catholic-coin-lightning-network-node-profits\/","title":{"rendered":"News: SEC v. Kik, Poloniex CLAM disaster, Facebook GlobalCoin, ICOx&#8217;s Catholic coin, Lightning Network node profits"},"content":{"rendered":"<p><a href=\"https:\/\/www.theblockcrypto.com\/2019\/06\/07\/the-sec-and-kik-are-poised-for-a-battle-that-could-further-flesh-out-securities-law-for-crypto\/\">Stephen Palley<\/a>, <a href=\"https:\/\/twitter.com\/collins_belton\/status\/1136399792882380800\">Collins Belton<\/a> and <a href=\"https:\/\/twitter.com\/ohaiom\/status\/1136286144407265280\">Jason Gottlieb<\/a> write up how they think an <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/06\/04\/the-sec-finally-loses-patience-and-sues-kik-over-the-kin-ico\/\">SEC v. Kik<\/a> courtroom fight will play out. Also, here&#8217;s Andy Bromberg and Palley on <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2019-06-05\/kik-suit-shows-sec-is-comfortable-regulating-cryptos-coinlist-president-says-video\">Bloomberg TV<\/a> \u2014 a video segment you should watch.<\/p>\n<p>ShapeShift, Messari and Coinbase aren&#8217;t donating actual <em>money<\/em> or <em>cryptos<\/em> to DefendCrypto, you understand. <a href=\"https:\/\/decrypt.co\/7331\/kik-lawsuit-brutal-coinbase-messari-shapeshift\">&#8220;But they do support it &#8216;ideologically.'&#8221;<\/a><\/p>\n<p>The Financial Times interviews Joshua Davis over <a href=\"https:\/\/ftalphaville.ft.com\/2019\/06\/05\/1559721360000\/A--100m-ICO-being-sued-by-the-SEC-wants-more-of-your-money\/\">DefundCrypto.<\/a><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Kik: We are going to force the SEC to rethink Howey.<\/p>\n<p>SEC: <a href=\"https:\/\/t.co\/ADQk3mCY6L\">pic.twitter.com\/ADQk3mCY6L<\/a><\/p>\n<p>&mdash; Guillermo Jimenez (@guillermojimnz) <a href=\"https:\/\/twitter.com\/guillermojimnz\/status\/1135972713305116672?ref_src=twsrc%5Etfw\">June 4, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>Crypto traders would bet on two flies crawling up a wall if they could tokenise the flies. Amy Castor writes up Poloniex&#8217;s recent <a href=\"https:\/\/amycastor.com\/2019\/06\/08\/clam-flash-crash-forces-poloniex-to-socialize-14-million-worth-of-btc-in-losses-what-happened\/\">CLAM flash crash margin disaster.<\/a> &#8220;Any crypto exchange that socializes losses is begging for a lawsuit,&#8221; <a href=\"https:\/\/www.theblockcrypto.com\/2019\/06\/06\/poloniex-could-leave-itself-open-to-legal-threats-by-socializing-1800-btc-loss\/\">says David Silver,<\/a> though Stephen Palley disagrees and thinks their terms of service will protect them.<\/p>\n<p>&#8220;The FBI and partners are seeking to identify victims in the QuadrigaCX investigation. If you believe you may be a victim, or have concerns regarding your Quadriga account, complete <a href=\"https:\/\/www.fbi.gov\/resources\/victim-services\/seeking-victim-information\/seeking-victims-in-the-quadrigacx-investigation\">this brief questionnaire here.<\/a>&#8221;<\/p>\n<p>Mark Karp\u00e8les, formerly of the collapsed Mt Gox Bitcoin exchange, was <a href=\"https:\/\/apnews.com\/921b996482a540ad83d060c842e5f5f0\">reported<\/a> to be working on a new crypto-related business in which to do nothing wrong. Karp\u00e8les says this was <a href=\"https:\/\/www.theblockcrypto.com\/2019\/06\/06\/former-mt-gox-ceo-sets-the-record-straight-about-his-new-venture-says-ap-missed-the-mark\/\">misreported,<\/a> and it&#8217;s actually the small business he&#8217;s been running since 2016, <a href=\"https:\/\/www.tristantechnologies.com\/l\/en-US\/\">Tristan Technologies<\/a> \u2014 and it doesn&#8217;t even do blockchain.<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Bitfinex has been caught red-handed, paying to manipulate public perception.. not that we needed much more proof.<a href=\"https:\/\/t.co\/D4otQYIhRx\">https:\/\/t.co\/D4otQYIhRx<\/a><\/p>\n<p>&mdash; Omar Bham (Crypt0) (@crypt0snews) <a href=\"https:\/\/twitter.com\/crypt0snews\/status\/1137201055731716096?ref_src=twsrc%5Etfw\">June 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>Yet another attempt to steal cryptos via a <a href=\"https:\/\/blog.npmjs.org\/post\/185397814280\/plot-to-steal-cryptocurrency-foiled-by-the-npm\">compromised node.js package<\/a> \u2014 &#8220;The attack was carried out by using a pattern that is becoming more and more popular; publishing a \u201cuseful\u201d package (electron-native-notify) to npm, waiting until it was in use by the target, and then updating it to include a malicious payload.&#8221;<\/p>\n<p>Cloud hosting service Digital Ocean had a widely publicised <a href=\"https:\/\/news.ycombinator.com\/item?id=20064169\">customer service foulup<\/a> last week, where a customer was cut off entirely based on fraud heuristics. The problem turned out to be that <a href=\"https:\/\/blog.digitalocean.com\/an-update-on-last-weeks-customer-shutdown-incident\/\">crypto spammers mean we can&#8217;t have nice things.<\/a> Procedures have been tweaked.<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">No bitcoins have been stolen other than the ones that were stolen <a href=\"https:\/\/t.co\/u2CUPF3nAD\">https:\/\/t.co\/u2CUPF3nAD<\/a><\/p>\n<p>&mdash; Buttcoin (@ButtCoin) <a href=\"https:\/\/twitter.com\/ButtCoin\/status\/1135317634143182851?ref_src=twsrc%5Etfw\">June 2, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>Microsoft has produced some <a href=\"https:\/\/thenextweb.com\/hardfork\/2019\/06\/04\/microsoft-azure-blockchain-ethereum\/\">automated tools<\/a> to audit Solidity smart contracts. This is probably a good idea, given how <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2018\/04\/26\/smart-contracts-stupid-humans-new-major-erc-20-token-bugs-batchoverflow-and-proxyoverflow\/\">relentlessly awful<\/a> most Solidity code is.<\/p>\n<p>After <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/06\/03\/news-localbitcoins-less-local-cryptopia-quadrigacx-crypto-banking-telegram-wirecard-eos-voice-kik-and-defund-crypto-wright-gets-a-copyright-competitor\/\">losing its smart contract lead,<\/a> Digital Asset Holdings <a href=\"https:\/\/www.ft.com\/content\/77bc7fd4-8903-11e9-97ea-05ac2431f453\">pivots<\/a> to its smart contract language, <a href=\"https:\/\/daml.com\/\">DAML,<\/a> as its main product.<\/p>\n<p>Remember Ryan X. Charles of yours.org, who spent several months at Reddit trying to <a href=\"https:\/\/www.reddit.com\/r\/Buttcoin\/comments\/2u7ddq\/the_real_reason_ryan_charles_was_fired_from\/\">rewrite Bitcoin in JavaScript?<\/a> He&#8217;s produced <a href=\"https:\/\/www.reddit.com\/r\/Buttcoin\/comments\/bvpnpt\/ryan_x_charles_is_wowed_by_the_genius_of_craig\/\">a video<\/a> on Craig Wright&#8217;s ineffable genius. He also spends forty-four minutes dissecting Twitter response GIFs \u2014 the built-in ones that Twitter offers you as canned responses.<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">definitely *not* a cult <a href=\"https:\/\/t.co\/b2lmTMETOU\">pic.twitter.com\/b2lmTMETOU<\/a><\/p>\n<p>&mdash; Buttcoin (@ButtCoin) <a href=\"https:\/\/twitter.com\/ButtCoin\/status\/1137399686233546758?ref_src=twsrc%5Etfw\">June 8, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>Facebook really does seem to be doing <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/05\/24\/facebooks-globalcoin-why-are-they-doing-it-as-a-cryptocurrency\/\">GlobalCoin<\/a> as a cryptocurrency. They are <a href=\"https:\/\/www.theinformation.com\/articles\/facebook-plans-outside-foundation-to-govern-cryptocurrency?\">planning a nonprofit foundation<\/a> to run it. The network will start with 100 nodes, with node operators paying Facebook $10 million each for the privilege; the $1 billion will be used to back the coin. Facebook also plans to <a href=\"https:\/\/www.cnbc.com\/2019\/06\/05\/facebook-cryptocurrency-coming-in-june-report.html\">pay employees in GlobalCoin<\/a> \u2014 even though paying wages in company scrip has been <a href=\"https:\/\/en.wikipedia.org\/wiki\/Fair_Labor_Standards_Act_of_1938\">illegal in the US since 1938.<\/a> I still don&#8217;t understand why this thing will be a crypto.<\/p>\n<p>ICOx Innovations, hot off the massive* success** of KodakCoin, announces <a href=\"https:\/\/www.globenewswire.com\/news-release\/2019\/05\/31\/1862826\/0\/en\/ICOx-Innovations-Inc-ICOx-Announces-New-Customer-Cathio-Inc-Cathio-Which-Will-Transform-How-the-Catholic-Economy-Moves-Money.html\">CathIO \u2014 a coin for Catholics!<\/a> With a board of directors including ex-Senator Rick Santorum.<br \/>\n* <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/06\/07\/kodakcoin-defends-its-ico-failure-and-eastman-kodak-starts-a-new-blockchain-adventure\/\">no<\/a><br \/>\n** <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2018\/12\/10\/the-kodakcoin-ico-failed-and-now-everyone-wants-their-money\/\">LOL, no<\/a><\/p>\n<p>How good a business is running a Lightning Network node? LNBig provides 49.6% ($3.7 million in bitcoins) of the Lightning Network&#8217;s total channel liquidity funding \u2014 that just sits there, locked in the channels until they&#8217;re closed. They see 300 transactions a day, for total earnings on that $3.7 million of &#8230; <a href=\"https:\/\/www.reddit.com\/r\/btc\/comments\/bxxiul\/lnbig_the_lns_largest_source_of_liquidity\/\">$20 a month.<\/a> They also spent $1000 in channel-opening fees.<\/p>\n<p>Simon Liu has left Zcash \u2014 specifically, Zerocoin Electric Coin Company \u2014 and is <a href=\"https:\/\/webapps.sftc.org\/ci\/CaseInfo.dll?CaseNum=CGC19576321\">suing<\/a> them over &#8220;promised equity,&#8221; fraud and &#8220;constructive termination&#8221; of employment.<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Griphook brandished the papers. &quot;The documents clearly show Master Potter controls a majority of seats in the Wizengamot through his direct line descent from the four Houses of Hogwarts and Merlin. It&#39;s all stored here, on the immutable Blockchain.&quot;<\/p>\n<p>Dumbledore could only scowl.<\/p>\n<p>&mdash; Rough Beast Stan Account (@SamFateKeeper) <a href=\"https:\/\/twitter.com\/SamFateKeeper\/status\/1137543714581168134?ref_src=twsrc%5Etfw\">June 9, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>The Financial Stability Board <a href=\"https:\/\/www.fsb.org\/wp-content\/uploads\/P060619.pdf\">warns<\/a> that tokenised liquidity could be <a href=\"https:\/\/ftalphaville.ft.com\/2019\/06\/06\/1559824318000\/FSB-warns-tokenised-liquidity-could-be-illusory\/\">illusory<\/a> \u2014 just making tokens for an illiquid asset doesn&#8217;t make them liquid. You might remember the 2008 financial crisis, where this sort of synthesised pretend-liquidity led to a spot of bother.<\/p>\n<p>Voatz, the terrible voting-on-the-blockchain startup that runs <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2018\/06\/05\/the-west-virginia-voatz-blockchain-voting-pilot-another-single-user-blockchain-as-a-database\/\">endless pilot programmes<\/a> and <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2018\/08\/07\/west-virginia-and-the-voatz-blockchain-voting-system-scaling-and-security-concerns\/\">can&#8217;t scale up<\/a> to running a primary, <a href=\"https:\/\/www.axios.com\/newsletters\/axios-pro-rata-f01afe71-8b7d-4996-a655-c7081e390f48.html\">just got $7 million<\/a> in <a href=\"https:\/\/www.investopedia.com\/terms\/s\/seriesa.asp\">Series A funding<\/a> from venture capitalists.<\/p>\n<p>I&#8217;m picturing Warren Buffett <a href=\"https:\/\/decrypt.co\/7287\/tron-justin-sun-warren-buffett\">gritting his teeth<\/a> and going &#8220;it&#8217;s for the kids &#8230; it&#8217;s for the kids&#8221; for an hour. You too can feel sorry for the third-richest man in the world.<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">When you watch someone\u2019s timeline slowly filling up with bitcoin nonsense <a href=\"https:\/\/t.co\/PRHuoNrxVp\">pic.twitter.com\/PRHuoNrxVp<\/a><\/p>\n<p>&mdash; Antony Johnston (@AntonyJohnston) <a href=\"https:\/\/twitter.com\/AntonyJohnston\/status\/1136763187708268544?ref_src=twsrc%5Etfw\">June 6, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<p>I did a <a href=\"https:\/\/bitsonline.com\/bitcoin-car-talk-2019-courage\/\">Bitcoin Car Talk!<\/a> This is a scripted comedy piece, I may need a proper autocue. Apparently the only other guest to tweak their script was <a href=\"https:\/\/www.youtube.com\/watch?v=zbRI9SxKpJ4\">Richard Stallman.<\/a><\/p>\n<p>&nbsp;<\/p>\n<div class=\"jetpack-video-wrapper\"><span class=\"embed-youtube\" style=\"text-align:center; display: block;\"><iframe loading=\"lazy\" class=\"youtube-player\" width=\"735\" height=\"414\" src=\"https:\/\/www.youtube.com\/embed\/aIiRYOT5Pg0?version=3&#038;rel=1&#038;showsearch=0&#038;showinfo=1&#038;iv_load_policy=1&#038;fs=1&#038;hl=en-GB&#038;autohide=2&#038;wmode=transparent\" allowfullscreen=\"true\" style=\"border:0;\" sandbox=\"allow-scripts allow-same-origin allow-popups allow-presentation allow-popups-to-escape-sandbox\"><\/iframe><\/span><\/div>\n<p>&nbsp;<\/p>\n<p>Not only has my Initial Nocoin Offering been a startling success \u2014 I&#8217;ve sold it to US retail customers without the <em>slightest<\/em> issues with the fine public servants of the SEC.<\/p>\n<p>&nbsp;<\/p>\n<p>https:\/\/twitter.com\/gulovsen\/status\/1136730629964537861<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">lol remember when you disrupted your mining operation into the PiTato and a weird \u201cget paid to read spam\u201d operation?<\/p>\n<p>at least the founders got rewarded! <a href=\"https:\/\/t.co\/8CwvBvOzpt\">pic.twitter.com\/8CwvBvOzpt<\/a><\/p>\n<p>&mdash; Buttcoin (@ButtCoin) <a href=\"https:\/\/twitter.com\/ButtCoin\/status\/1137511241272975360?ref_src=twsrc%5Etfw\">June 9, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<br><br><div align=\"center\"><p><a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\"><img src=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/10\/become_a_patron_button.svg\" alt=\"Become a Patron!\" title=\"Become a Patron!\" width=217 height=51><\/a><br><p style=\"align:center;\" class=\"patreon-badge\"><i>Your subscriptions keep this site going. <a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\">Sign up today!<\/a><\/i><\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>And me on Bitcoin Car Talk!<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[1322,1314,1309,1312,1307,915,1311,444,1310,1320,1285,9,832,30,380,233,6,1316,90,350,1029,1030,680,938,1315,1313,33,1317,643,694,1321,1318,1319],"class_list":["post-13720","post","type-post","status-publish","format-standard","hentry","category-uncategorised","tag-bitcoin-car-talk","tag-cathio","tag-clam","tag-daml","tag-defend-crypto","tag-digital-asset","tag-digital-ocean","tag-facebook","tag-fbi","tag-fsb","tag-globalcoin","tag-ico","tag-icox-innovations","tag-kik","tag-kin","tag-lightning-network","tag-links","tag-lnbig","tag-mark-karpeles","tag-microsoft","tag-nodejs","tag-npm","tag-poloniex","tag-quadrigacx","tag-rick-santorum","tag-ryan-x-charles","tag-sec","tag-simon-liu","tag-solidity","tag-voatz","tag-warren-buffett","tag-zcash","tag-zerocoin-electric-coin-company"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/13720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/comments?post=13720"}],"version-history":[{"count":22,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/13720\/revisions"}],"predecessor-version":[{"id":13742,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/13720\/revisions\/13742"}],"wp:attachment":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/media?parent=13720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/categories?post=13720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/tags?post=13720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}