BTC Users Running Lightning Network Nodes Urged To Update After Confirmed CVE Vulnerabilities Exploited

An unfortunate event happened in the Bitcoin Lightning Network recently. According to the recent announcement made on Twitter by Lightning Labs, the network is currently being exploited due to a vulnerability.

According to the tweet, all Ind 0.7, c-lightning 0.7, eclair 0.3 and their editions below that are possible to be affected by the exploit, so people should upgrade to the latest version of the system in order to protect themselves from the attack. The latest versions, 0.7.1 and 0.3.1, are not subject to the attacks.

Olaoluwa Osuntokun, the Chief Technology Officer (CTO) at Lightning Labs, affirmed that there are several cases of people exploiting the network. The exploit was originally discovered a few days ago by Rusty Russel, another LN coder.

According to Russel, security vulnerabilities could make several projects to lose funds. He did not disclaim exactly what was the bug, obviously, in order to protect the users, but someone or a group of people may have discovered the exploit and is using it to steal money from the LN.

The Twitter profile also warned people that LN technology is prone to have bugs as it is still during its experimental phases. Because of this, nobody should put more money on the network than they were willing to lose if a bug happens.

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Author: Hank Klinger

BitMEX Jokingly Jabs at Binance on Plagiarizing Its Documents For a Futures Trading Platform

The most recent spat between crypto exchanges happened between BitMEX and Binance. According to BitMEX, people from the other exchange plagiarized some content from documents had created.

BitMEX decided to be sarcastic and congratulated the other platform for it. The tweet also affirmed that the company was glad that the people at Binance enjoyed the paper so much that they copied it.

The original document created by BitMEX was used for the testnet of the company’s futures platform. Now, Binance also used it for the testnet of its own futures platform.

Even the CEO of BitMEX, Arthur Hayes, commented on the occasion. He joked that people who plagiarize should at least make a small effort so it doesn’t seem so obvious that they are stealing content.

The CEO of Binance, Changpeng Zhao, had no alternative but to confess that it was their fault. According to him, it was their mistake and he did not read the documents from BitMEX himself, so this part was not spotted by anyone.

His reaction was seen favorably in social media and some people have even defended Binance, affirming that it was not such a huge sin because people are launching new products practically all the time. Hayes seemed to be ok with the answer, posting a friendly meme as the answer.

Now, Binance is set to continue the launch of its futures testnet platform. The company has launched not one, but two platforms. The main idea was that people from the community could vote on which platform they liked the most. The platform with more votes would end up being chosen as the official one when the test phase is over.

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Author: Bitcoin Exchange Guide News Team

Siberia: Bitcoin Mining Farms Are Flourishing Over A Ruined Industry

After the end of the Soviet Union and the economic fallout that happened in Russia, several industry facilities were abandoned. Now, cryptocurrency miners are giving these abandoned places a new breath of life by using them as mining farms.

Most of these platforms were built during the Cold War and were originally used for manufacturing. Now, the installations and the Bratsk hydroelectric station, which are set in Siberia, are being used for BTC mining.

Several mining companies have been using the legacy of the Soviet Union, the hydroelectric station, as a way to get cheap energy. As the industry is no longer strong in the region, it is really inexpensive to use it for mining.

Siberia also has a pretty cold climate, so it is becoming an important mining hub right now. Several companies from other countries are entering Russia in order to also be benefitted from this emerging market.

According to Dmitry Ozersky, the CEO of one of the now local mining companies, Eletro Farm, there is a huge surplus of power in Russia. The Soviet Union created a lot of power stations, but the economic crisis made several places shut down.

After the new system was enacted and the country got in its feet again, the issue was that no one wanted to use the surplus power. Eletro Farm has over 18,000 ASIC miners and, according to its executives, is one of the largest operations around.

Regions such as Siberia still have industrial activity, but there is simply not a huge demand for it anymore. This was seen by miners who decided to takeover. They bought these cheap factories and used cheap electricity to get high profits. With their help, the region is starting to get some of its former importance back.

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Author: Gabriel Machado

Troublesome Exchanges QuadrigaCX and Cryptopia See Users of Both Share Same Unfortunate Fate

Troublesome-Exchanges-QuadrigaCX-and-Cryptopia-See-Users-of-Both-Share-Same-Unfortunate-Fate

Two Of The Biggest Crypto Dramas Of 2019 Happened On The Exact Same Day

  • Both Cryptopia and QuadrigaCX shut down their withdrawals and froze transactions on January 14th.
  • Since then, both exchanges have filed for bankruptcy.

Coincidences happen all of the time, but there are a few coincidences that are too close not to draw a connection. That is exactly the case with QuadrigaCX and Cryptopia, according to a recent article from Decrypt.co. A few customers discussed their recent losses that they experienced in January, watching QuadrigaCX go under on the same exact day that Cryptopia’s hack happened.

The hack of Cryptopia has been well publicized, resulting in the loss of $16 million in both ETH and ERC20 tokens on January 14th. The exchange discovered the loss rather quickly, taking the exchange offline and stopping anyone else from making withdrawals. Unbeknownst to Cryptopia, Quadriga was announcing the passing of their CEO the month before, which was a strange enough situation on its own.

Quadriga had already been slow for quite some time, but the news of Gerald Cotten’s death coincided with the exchange completely freezing withdrawals. As all of this news hit, investors on both sides of these exchanges were take aback, losing so much in one day. One trader named Ida, who omitted her last name, said that she switched to her Cryptopia account after having troubles with Quadriga to pull her coins as soon as possible, but Cryptopia had already been hacked. With the fast-acting work of Cryptopia to shut down withdrawals, Ida was met with another roadblock. The story was the same with many other mutual traders.

QuadrigaCX did not come back from their freeze, deciding to file for creditor protection. The company ultimately decided to file for bankruptcy recently. Cryptopia worked with the authorities in an attempt to relaunch the platform in the middle of March this year, but it didn’t quite go as planned. After multiple attempts by the team to revive the platform with the right security measures, Cryptopia decided to shut down and file for bankruptcy in New Zealand less than two weeks ago.

Realistically, the fact that both of these exchanges met the beginning of their ends on the same day is probably just an unfortunate twist of fate. However, the lack of regulations in the crypto industry are likely the true culprit here, along with the lack of protection.

Cryptopia used to be a place for crypto traders to create a diverse home of converting to altcoins. The platform even listed 400 altcoins at one time, including HoboNickels and BeaverCoin. The year 2017 was a great atmosphere for altcoins, though the volume is rather low for these types of coins. By having such a lot volume, these altcoins tend to become organized “pump and dump” schemes, and Cryptopia ended up being a place for these altcoins.

However, since the exchanges could not actually get the banking needed, these altcoins were not actually available for purchase, and could only be purchased through an exchange that let users use fiat currency to buy Bitcoin. In an interesting turn of events, that was where Quadriga was technically connected with Cryptopia. They would allow for the purchase of these coins, and consumers could go back over to Cryptopia for the altcoins.

Another major issue was the lack of Know Your Customer (KYC) protocols with Cryptopia, which they did not require for NZ $5,000 ($3,270 USD). In May 2017, Cryptopia’s bank started to notice the issues when the exchange decided to launch a stablecoin that they pegged to the New Zealand dollar called NZDT. As a result, locals could purchase their Bitcoin from Cryptopia directly. As funds flew in and out of their bank accounts, Cryptopia’s bank worried that the funds could be used for illicit activities, like drug purchases from the Black market. When the bank decided to shut down their accounts by February 2018, Cryptopia sent out a notification to their users.

Between the banking problems of both Cryptopia and QuadrigaCX, combined with poor accounting of their own blockchains, the companies finally met their demise. On January 14th, both exchanges saw the first stage of failure. Though both have sought the help of the traditional financial system, there are still many former customers that just want their money back.

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Author: Krystle M