Monthly Archive: November 2018

London authorities confiscate $700,000 in Bitcoin

Cybercrime is becoming an important issue in today’s technological society. In addition, cybercriminals are beginning to launder their money with the help of crypto currencies. Last year, Scotland arrested Yard Grant West and seized $700,000 worth of Bitcoin.

Cybercrime and Bitcoin code

Mick Gallagher led a two-year investigation that led to the arrest of Grant West. On Wednesday, the British court announced that West will be sentenced on 25 May 2018. Cyber criminals feel secure and anonymous behind their keyboard and even invincible. The arrest was a great success not only for Scotland Yard, but also for law enforcement worldwide. In December 2017, West was found guilty of numerous Bitcoin code cyber attacks – the authorities announced that West was responsible for Bitcoin code cyber attacks on over 100 companies.

West and the Bitcoin revolution

The severity of the conviction is not yet known but it remains exciting, especially when the results of previous cases are taken into account. Ross Ulbrichts case is one of the most remarkable and hardest of its kind. Ulbricht created the Silk Road, the first illegal online Bitcoin revolution marketplace for the sale of drugs. After a long investigation, the FBI managed to track down and arrest Ulbricht in a public library in San Francisco. Ulbricht was sentenced to life imprisonment by a US federal court. There have been many headlines about the Ross Ulbricht case, as most people do not consider the punishment fair, as he himself only created a Bitcoin revolution marketplace.

Two former federal agents who led the Ulbricht investigation were accused of stealing hundreds of thousands of dollars. Shaun Bridges, a former Secret Service agent, redirected $800,000 worth of Bitcoin to his personal account. The other accused agent, Carl Force, pleads guilty to extortion, money laundering and obstruction of justice. The agents were each sentenced to less than 10 years in prison. Thus it is clear that the US government wanted to set an example to Ross Ulbricht in order to prevent possible cyber criminals from the same fate.

West used phishing emails to expose personal information such as credit cards and passwords, which he then sold online. Despite his less serious crimes, British courts can follow in the footsteps of the US and severely condemn Grant West. As crypto currencies become increasingly popular in both legal and illegal activities, governments will continue to regulate these new digital assets and punish those who use them for the wrong reasons.

Dfinity Tokenmetrics

The first official private sale round was in February 2017, when Dfinity raised approximately CHF 3.9 million ($ 4.2 million) from institutional investors and surrendered 24.72% of the total tokens. It should be borne in mind that 3.9 million was still very high at the beginning of 2017, as the real crypto boom came after that. The team reportedly liquidated the collected money (which was mainly in BTC and ETH) into Fiat money even at peak times, when that USD 4.2 million was already USD 40 million.

Token Price and Presale of the Bitcoin profit

The company subsequently collected more than CHF 61 million at the end of last year and only allocated 6.85% of the Bitcoin profit for this purpose. The last round is still pending, with only 4.75% to be collected for a whopping CHF 90 million. While in the first round 1 token was still at approx. 0.036 USD, the current price is already at 4.00 USD. Thus the first Bitcoin profit investors got the tokens more than 99% cheaper. For us as late beginners very bad cards, therefore we give here unfortunately 1/5 points.

Token distribution and Ethereum code

The token distribution between Ethereum code and investors is 52.93% to 47.07%, which is an average value and therefore gives us 3/5 points. However, considering that over 40% of Ethereum code investors have bought at better terms, we can imagine that there will be a price collapse if they sell their tokens. The market capitalization for a new project is also vertiginously high. If you assume a price of about $4.00 per token, you get a market capitalization of over $1.8 billion, which is too high even for protocol projects. Therefore we can only give 1/5 points for the market capitalization.

Special features
The Token-Metrics rating has been slightly improved by a special feature. Investors are bound to a certain contract for a period of 3 years, which prevents them from selling all their tokens. How exactly this looks was not clear to us, however. For this we give +0.2 points.

The overall rating for the Token Metrics is 1.8/5 points.