The promoters were looking for investors, attracting them by making false promises. The Prosecutor’s Office opened an investigation in response to a victim’s complaint.

The Public Prosecutor’s Office of the Argentine city of Córdoba ordered the arrest of 12 people linked to the Ponzi OneCoin scheme. Eight of the suspects were detained, while the rest are at large, including Ruja Ignatova, better known as the crypto queen, and her brother Konstantin Ignatova. They are accused of crimes of illicit association and alleged fraud through a false cryptocurrency.

The public body ordered the arrest of citizens at the request of the Prosecutor for Complex Crimes. The OneCoin scam would have left hundreds of victims in the city of Córdoba and the rest of Argentina. In this context, the Complex Causes Investigations Unit carried out various raids; these raids were created to search for evidence, as reported by local media.

Edgar Moreno, a well-known broadcaster and journalist in Córdoba is among those arrested. The group is completed by Gustavo Adolfo Amuchástegui, Andrés Matías López, Mariana Noel López, Manuel Vicente Peralta Guevara, Mónica Gabriela Blasco, Daniel Cornaglia and Ricardo Beretta. While among the fugitives are Eduardo Alejandro Taylor and José Gordo, in addition to the aforementioned Ignatova brothers.

OneCoin Victim Demands Justice

The actions of the prosecution would have been supported by a complaint of a victim, who was contacted in 2018 by the promoters of OneCoin. After several meetings and multiple promises, the victim ended up depositing more than $ 70,000 to acquire a cryptocurrency that has never existed, according to digital media.

The scam growth is so big that it is even possible to find its promotions on almost every social media platform in social networks. There are tons of examples of the promotional activities that several of the detainees organized to attract new victims.

 Among them, there is an event that took place in 2018 that was attended by Konstantin Ignatova, who assumed the leadership of the scam after the disappearance of the crypto queen, founder of OneCoin.

Konstantin got caught in Los Angeles International Airport in March 2019. He pleaded guilty to charges of money laundering and conspiracy to commit wire fraud in October.

OneCoin appears to be one of the biggest scams in the history of cryptocurrencies. Its founder, Ruja Ignatova, traveled the entire world in search of people who believed and were willing to invest in her idea: a revolutionary and potential cryptocurrency that would enrich whoever had it.

Thousands of people believed they were investing in a real project until one day in 2017; they were hit by the news of the disappearance of the crypto queen who, since then, has been wanted by the FBI.

OneCoin promoters have been arrested for scams in Italy, Singapore, and other countries. In early July, two of these operators were found murdered in Mexico.

By: Jenson Nuñez.

Discrete Registration Contracts (DLC) integrate oracles to Bitcoin and the Lightning Network. A DLC can be indistinguishable from a Lightning network command, giving it privacy.

Discrete Registration Contracts (DLCs) allow clients to build DeFi applications on Bitcoin and the Lightning network claimed its developer Tadge Dryja. Dryja, a Bitcoin researcher for the MIT Digital Currency Initiative, brought a short live presentation from LaBitConf, where he showed important thoughts about Discreet Log Contracts (DLC), their use cases, and a list of other technical and relevant details

Dryja considered the implementation of DLC contracts to be one of the most relevant improvements for Bitcoin today. Dryja noted among her reasons that DLCs allow DeFi-style transactions in Bitcoin.

Dryja exposes an example of a contract for the exchange of the USD / BTC pair, where he would make the purchase or sale of the assets by seeing the oracle’s signature validating certain information, such as the price of BTC and other indicators. This example is a decentralized finance use case or application in Bitcoin.

Dryja commented that DeFi, though he can find it funny to handle with, is not so safe. The researcher points out that a considerable number of attacks have targeted the Ethereum oracles, resulting in thefts for DeFi users.

Discreet Bitcoin Smart Contracts are threatened by Oracles+

The researcher valued the discrete registration contracts as a way to deploy smart contracts in Bitcoin, computable in the Lightning Network, and with oracles independent of the network, in an efficient, private way and without requiring major changes or forks to the protocol.

Dryja pointed out that the Lightning Network, as a Bitcoin smart contract style, is not able to receive external information to execute contracts under more concrete conditions.

In response to this need, oracles would allow DLCs to use real-world information on Bitcoin, and the Lightning network. Oracles are an information bridge between a blockchain and the outside world. They are responsible for transmitting the necessary information so that smart contracts can work according to external parameters.

The example that Dryja starts from to explain his theory is a bet on the state of the climate. If it rains tomorrow, Alice receives 1 BTC; if tomorrow is sunny (not raining), Bob receives 1 BTC.

The implementation of an oracle would be necessary for the event that Bob and Alice do not respect the results and conflict. The oracle will embody the third part of the agreement, putting its signature on the validity of certain information, without judging or deliberating about it, since it does not know the conditions of Alice and Bob’s contract.

“If an oracle knows about the contract, it is not an oracle, it is a judge”, Dryja also indicates that in the case of Ethereum, the oracles are within the chain and compute the results; while with DLC, the oracle stays out of Bitcoin and only certifies the veracity of a piece of information.

The Case of The Human Oracle: Centralized, Honest and Neutral

Dryja then raises no problem with using centralized human oracles, as something that, despite the decentralized qualities of Bitcoin, could be much more practical to implement.

In the same way, he proposes that oracles work, using traditional finance as an example. Dryja also clarifies that some conventional contracts base their fulfillment on the information that a trusted centralized entity provides, such as betting on the price of an asset (gold, oil, etc.)

By: Jenson Nuñez.

They fear that applying “excessive regulation” to self-custodial purses would violate the financial privacy of users.

Four lawmakers from the United States Congress asked Treasury Secretary Steven Mnuchin to retreat any intention to apply hasty regulations to self-custodial bitcoin (BTC) and cryptocurrency wallets. The representatives asked the official to consult them before issuing potential guidelines for the use of wallets of this nature, in which the user has possession of the private keys.

The Republican legislator for the state of Ohio, Warren Davidson, assured that “excessive regulation will crush a nascent industry and leave the United States behind the rest of the world to harness the power of blockchain and cryptocurrencies.” Congressmen Tom Emmer, Ted Budd, and Scott Perry also joined the request.

Even though neither Mnuchin nor the Treasury Department have formalized any kind of regulation since November rumors about a possible inspection of the purses are circling the crypto world. Recently, Coinbase CEO Brian Armstrong expressed his fears about this possibility.

“The wrong regulations will violate the financial privacy of users and send a message to the world that you should not build businesses or test new use cases for blockchains in the United States. I hope the Treasury Department will carefully consider any action it takes on self-custodial purses”, Said Davinson.

Lawmakers called the issue “important” to the development of financial technology in the United States. Also, they pointed out that, in the event of executing any regulation, the Treasury Department could undermine its actions to stop “illicit agents”.

Nobody knows what the regulatory measures could be, but the guidelines would be aiming at the application of KYC measures (know your client) before sending funds, something that opposes what is right about the privacy of any user.

Circle against regular bitcoin wallets

Requests to reject a potential regulation continued to spread with a letter from Circle CEO Jeremy Allaire. The executive also questioned the possibility of regulation of self-custodial purses and said that it could lead to unnecessary harm:

“With all due respect, I believe that the proposal would inadequately address the real risks at stake, would significantly harm industry and US competitiveness, and would continue to provide economic and industrial advantages to Chinese companies,” was part of the message from Allaire, who added that the regulation would have unexpected consequences.

The voices against unofficial regulation prove that the Treasury Department, at least, would have shown their intentions by putting the issue on the table. However, the situation still does not go beyond the unconfirmed rumors.

In the bitcoin ecosystem, there are dozens of wallets of this nature through which users can send and receive bitcoin and cryptocurrencies. A self-custodial purse is one in which the owner has control and keeps safe the private keys that grant him access to the funds.

A wallet is and will keep being a software that manages addresses (accounts) and keys (passwords) of blockchains; there, users can consult, send, and receive crypto assets.

By Jenson Nuñez

The regulatory space would allow demystifying existing prejudices. The audit would be relevant but not essential for adoption.

The conformation of the regulatory sandbox or testing space for Bitcoin in Colombia is turning the wheel of the narrative that already existed in the country regarding the first cryptocurrency. This conformation took part in the panel at the eighth edition of LaBitConf, and analyzed the advances of the local bitcoin ecosystem what it holds for the future.

The speakers Mauricio Tovar, CEO of the privacy-oriented startup TRU; Yesika Padilla, director of innovation and technology of the Davivienda bank; Alejandro Beltrán, country manager of the Buda exchange, and Simón Chamorro, CEO and co-founder of the remittance company Valiu, exchanged views with the moderation of Juliana Carmona Giraldo, director of operations at Colombia Fintech.

Mauricio Tovar is one of those who consider that Colombia has needs that can turn into more potential opportunities. One of them is the neglect on which that the financial system stands for to achieve greater inclusion. Tovar assured that people are looking for options and that Bitcoin can meet those requests to mobilize or protect value.

Alejandro Beltran, Buddha’s representative in Colombia shares a similar point of view, although with a social questioning, the manager pointed out that in the country there is the concept that regulations are reliable and that what is not regulated is illegal or is outside the law. On this point, Beltran stressed:

“We must shift the chip towards cultures that are more open to exploration and innovation. While the regulatory framework is important, it is not essential for adopting the technology. Also, all the advances of the fourth industrial revolution are arriving and in the end, regulating them at an early stage may bring more risky results”.

Regarding the regulatory sandbox, the Buda spokesperson also commented that the project pursues goals to establish minimum operational mechanisms for cryptocurrency exchange platforms.

In other words, the Colombian financial authorities pursue the consolidation of a risk management system against money laundering and cybersecurity. “Crypto-assets need a clearer definition,” he stressed in the panel.

Demystify Bitcoin with regulation

The reach that Bitcoin has achieved around the world in recent years has forced multiple regulators to take a closer look at it to, in a certain way, delimit it. For Yesika Padilla, banks and supervisory institutions must understand cryptocurrencies as a new reality in the global market.

The innovation director of Davivienda classified as a good sign the opening of a space such as a sandbox to develop tests that allow exploring the potential of Bitcoin. Based on the results shown, it would be possible to establish alliances between exchanges and institutions that are already regulated, such as banks.

“We have a very important regulatory burden that sometimes prevents us from going at the same speed as emerging technologies in terms of appropriation and deployment of projects. In good time, Colombia opens this opportunity for collaborative work that will allow us to demystify the preconceived ideas about the crypto world, “said the panelist.

Padilla said that there are prejudices from the bank against “this type of new offers.” However, he indicated that the first steps are being taken ahead to create a trusted environment of co-existence between users and financial institutions.

By: Jenson Nuñez.

Identity verification protocols are not synonymous with increased security. This topic topped the discussion in LaBitConf about the vulnerability of privacy by supervision.

Ripple CEO Brad Garlinghouse shared his opinion on the relevance of executing KYC-AML protocols in cryptocurrencies so that they can integrate into the global financial system; he claims that “a reasonable oversight is crucial if we want cryptocurrencies to be the infrastructure of the next-generation financial system.”

Garlinghouse started a thread on Twitter to extend his opinion on identity identification protocols and their relevance to achieving a robust financial system:

‘Consumer protection has to be part of that. I am not against privacy, I am against bad actors who take advantage of anonymous transactions. I have said many, many times before: KYC / AML are important protocols that aim to help cryptocurrencies to move from the margins to a more integral spot, and then become an essential part of our global financial system »Garlinghouse adds in the third tweet of the same thread.

KYC or “Know your consumer” has the specific objective of consolidating the identity of users by its verification system, also storing their information, and keeping track of transactions; basically supervision of the authors of such transaction and what are their activities.

It is a fact that this protocol limits the access of malicious actors in the traditional financial system, although, at the same time, it compromises user privacy thanks to a centralization of the information at a single point of failure.

This vulnerability leads to the emergence of p2p platforms in which no centralized entity manages other people’s credentials or money. Such is the case of the decentralized exchange houses, Bisq, and HodlHodl.

KYC protocols generate a lot of aversed opinions in the cryptocurrency community for the different values ​​and principles that are actually in the table regarding supervision policies, protocols, and integral security.

Garlinghouse’s opinion, being representative of one of the heavyweights of cryptocurrencies, does not go unnoticed and maintains the debate that nurtures those involved from different perspectives.

In a recent report, the discussion in the LaBitConf forum also pointed out how these protocols violate the privacy of users. Nathan Wilcox, Chief Engineer of the Electric Coin Company, comments on the forum “While regulators may have the best intention of protecting users when they require information about their transactions from service providers, keeping that information centralized introduces an additional vulnerability “.

What is AML (ANTI-MONEY LAUNDERING), and how does it work?

AML is an acronym for the term Anti-Money Laundering. It is used to revolve around the financial, legal, and compliance sectors to develop the standard controls that companies and organizations execute to avoid, identify, and report any suspicious behaviors regarding money laundering.

Anti-Money Laundering, AML compliance focuses on performing procedures that discourage and prevent potential violators from engaging in money laundering, and many other fraudulent movements or crimes. Thanks to this protocol, criminals lose de ability to hide the illicit origin of money in any transaction of doubtful nature.

Practices and requirements in the AML establish compliance regulations on money laundering prevention, not only helping businesses to avoid involvement in any possible frauds and crimes but also highlighting and improving their assessment, optimizing and automating their processes.

By: Jenson Nuñez.

The Manager did not clarify how much his assets amount or tThe Amount of Bitcoin he Bought. He foresees a big wave of Institutional Capital coming on bBitcoin soon.

Shaan Puri, Product Manager at Twitch, announced that he placed 25% of his equity in bitcoin (BTC). He did so, he said, to anticipate the “wave of institutional capital that will hit bitcoin in the next two years.”

Puri made his statements on the social network Twitter, and he provoked various reactions from other users. Some of them told him that only having 25% in bitcoin does not seem enough. “For all those who say they are at 90% … the denominator matters,” was his reply.

“I think you are late! Although multiplying by 10 your position is still a good thing!”, someone wrote to him by that means. Puri agreed: “That’s still good enough for a fool like me.”

Unlike other entrepreneurs such as Michael Saylor, CEO of MicroStrategy, who claimed to have purchased 17,732 bitcoins, Puri did not specify the purchased amount. He did just clarify when asked by a Twitter user, that it is about a quarter of his net worth.

“Bitcoin is the only asset where you can irresponsibly go long, and then everyone tells you that it is not enough. And they are probably right. “

Companies and institutions come to bitcoin.

Puri also wrote that the reasons why BTC is close to $ 20,000 differ from the previous all-time high, in December 2017. Even when he did not elaborate on this statement, it may refer to the massive invasion of institutional capital that entered bitcoin during 2020.

There are reports about bitcoin purchases from companies such as Stone Ridge, MassMutual, and MicroStrategy, which have so far bought an estimated figure of 888,000 BTC.

 Besides, this year they made a series of announcements regarding the successful integration of services that includes bitcoin-recognized financial companies, BBVA, PayPal, and DBS, the largest bank in Southeast Asia are actually among these included companies.

Shaan Puri, is the hoster in the My First Million podcast,He’s also known as an “angel investor.” Before coming to Twitch, Puri had served between 2017 and 2019 as CEO of the defunct Bebo platform, one of the first social networks, active between 2005 and 2013.

What is Twitch and how does this platform work?

Twitch is the largest live streaming platform in the world and since its inception, It specializesin videogames broadcasts, but it offers more content of another type, such as music, lifestyle, talks with users, or sports.

This platform serves as a broadcaster for many important soccer clubs like Real Madrid, PSG, or Arsenal, each one having and managing their channel. The platform defines itself in this way: “Twitch is where millions of people meet life daily to chat, interact and create their own entertainment together.”

By Jenson Nuñez