Some of the larger players in the cryptocurrency space have formed a council that will opine on whether a crypto asset would meet the Security and Exchange Commission's (SEC's) definition of a security. The Crypto Rating Council has created a points-based system of several dozen yes/no factual questions derived from SEC guidance and case law. The answers to those questions will help the council determine, under its own private framework, whether the at-issue asset should or should not be deemed a security. The council says it hopes this approach will help others reduce costs and get clarity to improve industry growth.
Bad news from Fusion Network (FSN) this week, where its token swap wallet was compromised; approximately one-third of its tokens, valued at about $6.4 million, were stolen. Reports state the attacker stole the private key to affect the tokens' theft. FSN's value dropped 66% after the tokens were stolen. In an effort to fight financial crimes involving cryptocurrencies, a blockchain solutions provider this week scored a contract with the U.S. government to deliver software to help detect suspicious cryptocurrency activity. The company says it will help the feds track and trace potential illicit transactions.
Cryptocurrency exchange Binance has helped U.K. authorities investigate a criminal at the center of a $50 million phishing fraud. The exchange noted its help was motivated by "fostering a safe environment in this space." The police extradited the Bulgarian, who subsequently pleaded guilty to five fraud counts. U.K. police recently conducted their first-ever auction of cryptocurrency stemming from the seizure of fraudulently obtained assets. Bitcoin, ether and other cryptocurrencies valued at about $300,000 were seized from a hacker, with the auction netting 7,500 bids from around the globe.
For more information, please refer to the following links:
- Coinbase Blog: Introducing the Crypto Rating Council
- Crypto Rating Council
- $6.4M Worth of FSN Tokens Stolen From Fusion Network's Swap Wallet
- BIGG Digital Assets Inc. subsidiary Blockchain Intelligence Group Signs CAD $389k Contract with United States Federal Government Agency
- Binance Helped UK Police Investigate Criminal Involved in $50 Million Fraud
- Cryptocurrency gained by criminal enterprise sold at auction for more than £240,000
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