<h2>Body Count</h2>
On Feb. 1, <a href="https://www.coindesk.com/quadriga-creditor-protection-filing">news broke</a> that Gerald Cotten, the CEO of cryptocurrency exchange QuadrigaCX, had died in India — and taken the passwords to hundreds of millions of dollars worth of digital money <a href="https://futurism.com/crypto-exchange-loses-millions-encrypted-wallet">with him to the grave</a>.
Almost immediately, ripped off Quadriga customers suggested that Cotten had <a href="https://futurism.com/growing-suspicion-crypto-ceo-faked-death">faked his own death</a>, like a modern-day D.B. Cooper. Whether they&#8217;re right or wrong, the debacle shows that <a href="https://www.cnbc.com/2018/10/31/bitcoin-turns-10-years-old.html">more than a decade</a> after a pseudonymous coder released Bitcoin, the blockchain space remains a Wild West of cons, hustles and conspiracy.
Here&#8217;s our roundup of the latest news about fallout from the crypto CEO&#8217;s death.
<ul>
<li>That Whole Timing-of-the-Will Thing: Bloomberg <a href="https://www.bloomberg.com/news/articles/2019-02-05/crypto-exchange-founder-filed-last-will-12-days-before-he-died">reported yesterday</a> that Cotten filed a will just 12 days before his death.</li>
<li>That Whole Even-Academics-Are-Now-Questioning-This Thing: More credible sources are starting to question Cotten&#8217;s death, though often in careful language. Cornell professor Emin Gün Sirer, for instance, <a href="https://www.nytimes.com/2019/02/05/business/quadriga-cx-gerald-cotten.html">told the New York Times</a> yesterday that Cotten&#8217;s &#8220;death came at a very odd time in the history of that company.&#8221;</li>
<li>That Whole Timing-of-the-Story Thing: Aggrieved Quadriga users <a href="https://twitter.com/brenarchique/status/1092185238694809601">are also fixating</a> on why it took more than a month — from Dec. 9 to Jan. 31 — for the story of Cotten&#8217;s death to emerge.</li>
<li>That Whole Canadian-Funeral-Home-Thing: Others are calling the Canadian funeral home that provided a statement of death on Dec. 12 to demand answers. One <a href="https://www.reddit.com/r/QuadrigaCX2/comments/amkkno/statement_of_death_not_on_record/">posted on Reddit</a> that the funeral home confirmed that it had held a funeral service for Cotten on Dec. 14; another said the person who answered was &#8220;shaken by the question&#8221; and that another representative said Cotten wasn&#8217;t in the database.</li>
<li>That Whole Either-Way-Bad-For-Crypto Thing: One takeaway that&#8217;s not shrouded in mystery: the fiasco is a nightmare for blockchain&#8217;s public perception. A new <a href="https://www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/">Wired piece</a> by the brilliant security researcher Bruce Schneier doesn&#8217;t mention QuadrigaCX or Cotten by name, but both cast a long shadow on its brutal analysis. &#8220;Honestly, cryptocurrencies are useless,&#8221; Schneier wrote. &#8220;They&#8217;re only used by speculators looking for quick riches, people who don&#8217;t like government backed currencies, and criminals who want a black-market way to exchange money.&#8221;</li>
</ul>
More on Gerald Cotten: <a href="https://futurism.com/growing-suspicion-crypto-ceo-faked-death">Did a Crypto CEO Fake His Own Death to Abscond With $190 Million?</a>
More on QuadrigaCX: 
<ul>
<li><a href="https://futurism.com/crypto-exchange-loses-millions-encrypted-wallet/">Crypto Site Loses $137 Million in Dead Founder&#8217;s Encrypted Wallet</a></li>
<li><a href="https://futurism.com/growing-suspicion-crypto-ceo-faked-death/">Did a Crypto CEO Fake His Own Death to Abscond With $190 Million?</a></li>
<li><a href="https://futurism.com/the-byte/quadrigafx-details-ceo-death">Indian Hospital Fires Back at Rumors That Crypto CEO Faked Death</a></li>
</ul>

"Honestly, cryptocurrencies are useless."

Did a crypto CEO fake his own death? The great Quadriga conspiracy, day 6

L'Affaire Blockchain

Did Gerald Cotten fake his own death to abscond with $190 million in crypto? Here's our roundup of the latest news about the blockchain debacle.

Did a Crypto CEO Fake His Own Death? The Great Quadriga Conspiracy, Day 6

The drama continues.

<h2>The Departed</h2>
When the CEO of a bank dies, the bank&#8217;s assets and holdings don&#8217;t get buried along with them.
But when it comes to cryptocurrency exchanges — places where you can trade your real-world money for digital currencies like Bitcoin — things work differently.
At least, that was the case for Vancouver-based exchange QuadrigaCX. The exchange was plunged into turmoil when the ostensible widow of its CEO, 30-year-old Gerald Cotten, announced that her husband <a href="https://futurism.com/crypto-exchange-loses-millions-encrypted-wallet">had passed away</a> in India while building an orphanage — and took the passwords to crypto holdings worth about $190 million to the grave.
Now the drama is escalating, with some observers suggesting that Cotten faked his own death to abscond with the cash.
<h2>Cold Wallet Case</h2>
CoinDesk <a href="https://www.coindesk.com/indian-death-certificate-crypto-exchange-quadrigacx-death">retrieved Cotten&#8217;s death certificate</a> from officials in India, but users on Reddit and Twitter <a href="https://www.reddit.com/r/CryptoCurrency/comments/ammcbn/did_the_quadrigacx_ceo_exit_scam_by_faking_his/">raised red flags</a>, calling the legitimacy of Cotten&#8217;s death into question — and pointing out that in parts of India, it&#8217;s <a href="https://timesofindia.indiatimes.com/Want-a-fake-death-certificate/articleshow/3218280.cms">possible to buy a death certificate</a>.
The saga has also angered QuadrigaCX clients who had money tied up in the exchange, as well as cryptocurrency observers.
Jesse Powell, the CEO of rival crypto exchange KrakenFX, <a href="https://twitter.com/jespow/status/1091863628066770944">took to Twitter</a> on Saturday, where he called the story of Cotten&#8217;s death &#8220;bizarre and, frankly, unbelievable.&#8221;
Earlier today, a Canadian court <a href="https://edmontonjournal.com/business/money-news/roughly-190m-in-cryptocurrency-locked-away-from-users-after-quadriga-founder-dies-along-with-only-password-to-encrypted-laptop-exchange-seeks-creditor-protection/wcm/68e55d2e-9f6a-42fb-bdad-fb2dee2dd38e">approved QuadrigaCX&#8217;s request for a stay</a> of 30 days — a period of time during which no lawsuits can be made against the exchange.
Cotten&#8217;s encrypted laptop will also soon fall in the hands of court-appointed lawyers working for creditors, <a href="https://www.cbc.ca/news/canada/nova-scotia/quadrigacx-cryptocurrency-gerald-cotten-court-bankruptcy-1.5006164?cmp=rss">Canadian news reports</a>. Whether or not the laptop will hold the secret key to unlock QuadrigaCX&#8217;s accounts is unclear.
<h2>Bankruptcy Protection</h2>
QuadrigaCX has a pretty daunting task ahead of it: recover the keys to hundreds of millions of dollars worth of cryptocurrency. The company has <a href="https://www.cbc.ca/news/canada/nova-scotia/quadrigacx-cryptocurrency-gerald-cotten-court-bankruptcy-1.5006164?cmp=rss">filed for bankruptcy protection</a>, as it&#8217;s frantically trying to recover the keys.
&#8220;For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets,&#8221; reads a black-on-white message that replaced the <a href="https://www.quadrigacx.com/">company&#8217;s entire homepage</a>.
A key question is why there was no backup. What series of actions led to QuadrigaCX&#8217;s quandary?
One clear takeaway from the unfolding story: it&#8217;s yet another cautionary tale about the regulatory vacuum in the cryptocurrency industry.
READ MORE: <a href="https://www.cbc.ca/news/canada/nova-scotia/quadrigacx-cryptocurrency-gerald-cotten-court-bankruptcy-1.5006164?cmp=rss">Quadriga in court to seek bankruptcy protection while it searches for $250M in cryptocurrency</a> [CBC]
More on QuadrigaCX: 
<ul>
<li><a href="https://futurism.com/crypto-exchange-loses-millions-encrypted-wallet/">Crypto Site Loses $137 Million in Dead Founder&#8217;s Encrypted Wallet</a></li>
<li><a href="https://futurism.com/did-a-crypto-ceo-fake-his-own-death-the-latest-updates/">Did a Crypto CEO Fake His Own Death? The Great Quadriga Conspiracy, Day 6</a></li>
<li><a href="https://futurism.com/the-byte/quadrigafx-details-ceo-death">Indian Hospital Fires Back at Rumors That Crypto CEO Faked Death</a></li>
</ul>

One clear takeaway from the unfolding story: it's yet another cautionary tale about the regulatory vacuum in the cryptocurrency industry.

Did a crypto CEO fake his own death to abscond with $190 million?

Quadriga Quandary

Now the drama is escalating, with some observers suggesting that QuadrigaCX CEO Gerald Cotten faked his own death to abscond with a pile of digital cash.

Did a Crypto CEO Fake His Own Death to Abscond With $190 Million?

A rival CEO called the death "bizarre and, frankly, unbelievable."

<h2>Password Manager</h2>
A prominent cryptocurrency exchange is scrambling to access $137 million dollars worth of Bitcoin after its founder died and took his passwords with him.
On Jan. 31, Jennifer Robertson <a href="https://www.scribd.com/document/398721572/Jennifer-Robertson-Affidavit?campaign=SkimbitLtd&amp;ad_group=100098X1555750Xc62d80d8591dd7135800787a58bce730&amp;keyword=660149026&amp;source=hp_affiliate&amp;medium=affiliate">testified to the Supreme Court of Nova Scotia</a> that her husband Gerry Cotten, the founder of crypto exchange QuadrigaCX, died in December. As a result, she said that most of the company&#8217;s funds — $137 million worth of Bitcoin — were locked away in an encrypted cold wallet that only Cotten knew how to access, <a href="https://www.coindesk.com/quadriga-creditor-protection-filing">according to CoinDesk</a>.
The grim saga demonstrates that even though blockchain technology can help promote accountability and transparency, it can also allow companies to operate without legal oversight — a glaring problem when it comes to financial matters.
<h2>Dig Deeper</h2>
But there may be more to the story than what Robertson and QuadrigaCX have presented. An <a href="https://medium.com/@zeroresearchproof/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets-19d3a375d389">unofficial, independent investigation</a> conducted into QuadrigaCX&#8217;s transactions on the blockchain by a pseudonymous blockchain researcher who goes by the handle Zerononcense called into question not only the existence of the alleged encrypted wallet but also the validity of QuadrigaCX&#8217;s business practices at large.
The investigation, which conceded that it&#8217;s based only on the researcher&#8217;s observations and not necessarily the definitive truth of the matter, suggested that QuadrigaCX may not have the massive Bitcoin reserves that it claims to, and may have instead been pocketing some customers&#8217; deposits and using other deposits to fulfill withdrawal requests as needed, not unlike, in the author&#8217;s words, &#8220;operating a shell exchange or a ponzi.&#8221;
Thus far, QuadrigaCX has not responded to the investigation. Futurism reached out to the company for comment and this article will be updated if it responds.
<h2>Cold Storage</h2>
Ironically, a since-archived <a href="https://web.archive.org/web/20190106211608/https://www.quadrigacx.com/about">version of QuadrigaCX&#8217;s website</a> reveals that the company partnered with the Bitcoin Foundation, an organization that aims to standardize the use of cryptocurrency.
Whether QuadrigaCX&#8217;s customers&#8217; money is stuck in an encrypted wallet or whether it was pocketed, what remains clear is that the blockchain, for all its purported safety and security, still has a <a href="https://futurism.com/the-byte/etherscan-hack-security-vulnerability">major accountability problem</a>.
Sure, the philosophy of blockchain technology — circumventing regulation in the interest of personal freedom — is a huge selling point of crypto. But without established, enforceable business practices, problems like this will likely continue to happen. Even if nothing shady happened at all, some sort of overarching rules are necessary to make sure that investors don&#8217;t lose over $100 million dollars just because a company&#8217;s president didn&#8217;t feel like writing down his passwords.
READ MORE: <a href="https://arstechnica.com/information-technology/2019/02/digital-exchange-loses-137-million-as-founder-takes-passwords-to-the-grave/">Digital exchange loses $137 million as founder takes passwords to the grave</a> [Ars Technica]
More on QuadrigaCX: 
<ul>
<li><a href="https://futurism.com/growing-suspicion-crypto-ceo-faked-death/">Did a Crypto CEO Fake His Own Death to Abscond With $190 Million?</a></li>
<li><a href="https://futurism.com/did-a-crypto-ceo-fake-his-own-death-the-latest-updates/">Did a Crypto CEO Fake His Own Death? The Great Quadriga Conspiracy, Day 6</a></li>
<li><a href="https://futurism.com/the-byte/quadrigafx-details-ceo-death">Indian Hospital Fires Back at Rumors That Crypto CEO Faked Death</a></li>
</ul>

Crypto site loses $137 million in dead founder's encrypted wallet

Shell Game

The founder of a crypto exchange, QuadrigaCX recently died, and his widow claims that the company's Bitcoin reserves are now stuck in an encrypted wallet.

Crypto Site Loses $137 Million in Dead Founder’s Encrypted Wallet

Take this to your grave.

<h2>Prominent Hacking Groups</h2>
Hacking cryptocurrency exchanges and running away with the bounty is enormously lucrative, according to new research.
According to cryptocurrency fraud detection company Chainalysis, just two prominent hacking groups <a href="https://blog.chainalysis.com/reports/crypto-crime-hacks">have stolen</a> &#8220;around $1 billion to date.&#8221; For perspective, that&#8217;s well over half of all cryptocurrency stolen through publicly known hacks.
<h2>Lack of Regulation</h2>
The two groups worked together to steal cryptocurrency through phishing schemes, ransomware, and other security soft spots. Then they transferred funds from cryptocurrency wallet to wallet, in order to launder the funds, according to Chainalysis.
Making matters worse is the fact that cryptocurrency exchanges — companies that exchange cryptocurrencies like Bitcoin or Ethereum for regular currency — are for the most part unregulated. <a href="https://www.coindesk.com/2018-a-record-breaking-year-for-crypto-exchange-hacks">More and more</a> of these exchanges have been hacked over the years, pointing towards lax security standards.
That sense of insecurity hasn&#8217;t helped the blockchain industry. The value of Bitcoin has been in a <a href="https://www.cnbc.com/2018/11/14/bitcoin-plummets-under-6000-to-a-low-of-the-year-after-months-of-stability.html">downward spiral</a> after peaking in December 2017 over a year ago.
<h2>Catching on</h2>
While financial security firms are finally catching on to these schemes, hackers are also becoming more adept. They&#8217;re finding new ways to steal cryptocurrency — by stealing identities, hijacking public Wi-Fi connections, or even <a href="https://cointelegraph.com/news/six-tools-used-by-hackers-to-steal-cryptocurrency-how-to-protect-wallets">bypassing two-factor authentication</a>.
There&#8217;s plenty of evidence that the industry hasn&#8217;t learned its lesson yet. And that&#8217;s a big problem. The two unnamed hacker groups are likely still at large — without major crackdowns on cryptocurrency exchanges and meaningful regulation, they&#8217;re bound to get away with even more in the future.
READ MORE: <a href="https://www.wsj.com/articles/two-groups-account-for-1-billion-in-cryptocurrency-hacks-new-report-says-11548676800?ns=prod/accounts-wsj">Two Groups Account for $1 Billion in Cryptocurrency Hacks, New Report Says</a> [The Wall Street Journal]
More on crypto hacking: <a href="https://futurism.com/bithumb-hackers-cryptocurrency">Hackers Target Yet Another South Korean Crypto Exchange</a>

That's over half of all cryptocurrency ever stolen, according to public records.

Two hacker groups pilfered $1 billion worth of cryptocurrency

Crypto Hacking

According to a cryptocurrency security firm only two prominent hacker groups were responsible for stealing "around $1 billion" in cryptocurrency.

Two Hacker Groups Pilfered $1 Billion Worth of Cryptocurrency

And they're still at large.

<h2>Rough Patch</h2>
Bitcoin is going through a rough patch.
The value of Bitcoin dropped below $3,600 over the last week — a long fall from its average value last year of about  $6,500.
Analysts with JPMorgan Chase &amp; Co. found that the cost of mining a single Bitcoin outweighed the actual value of the Bitcoin itself, <a href="https://www.bloomberg.com/news/articles/2019-01-25/bitcoin-is-worth-less-than-the-cost-to-mine-it-jpmorgan-says">Bloomberg reports</a>. Analysts found the global average cost hovered around $4,060 globally in Q4 of 2018 — well above the current value.
<h2>Bad News, Good News</h2>
But that&#8217;s not necessarily bad news for everybody. The majority of the costs involved in mining Bitcoin (on a larger scale) come from paying for the power required to run massive power-hungry computer rigs. Bitcoin miners in China have found ways to reduce those costs significantly by setting up shop in the vicincity of power generators and cutting deals with them. That means they pay only <a href="https://www.bloomberg.com/news/articles/2019-01-25/bitcoin-is-worth-less-than-the-cost-to-mine-it-jpmorgan-says">roughly $2,400</a> on average per Bitcoin according to JPMorgan analysts.
Despite the rising relative costs, many Western Bitcoin mining productions have yet to call it quits. In fact the same analysts found that production shares of miners grew slightly in certain parts of the world.
<h2>Rising From the Dead</h2>
Earlier this week, <a href="https://www.reuters.com/article/us-facebook-whatsapp/zuckerberg-to-integrate-whatsapp-instagram-and-facebook-messenger-nyt-idUSKCN1PJ1O0">Reuters reported</a> that JPMorgan analysts expected the value of Bitcoin to tank even further, down to as low as $1,260.
Despite the pessimism, cryptocurrencies like Bitcoin tend to fluctuate significantly in value over short periods of time — the same quality that makes them so unpopular among banks.
Could Bitcoin come back from the dead? That&#8217;s the outcome many mining productions are willing to bet their money on.
READ MORE: <a href="https://www.bloomberg.com/news/articles/2019-01-25/bitcoin-is-worth-less-than-the-cost-to-mine-it-jpmorgan-says">Bitcoin Is Worth Less Than the Cost to Mine It, JPMorgan Says</a> [Bloomberg]
More on the value of Bitcoin: <a href="https://futurism.com/the-byte/mining-bitcoin-energy-gold">The Energy Spent Mining $1 of Bitcoin Could Earn You $3.40 in Gold</a>

JPMorgan analysts think Bitcoin could drop even further in value.

Analysts: Bitcoin mining costs more than its worth

In the Trenches

Analysts with JPMorgan Chase & Co. found that the cost of mining a single Bitcoin outweighed the actual value of the Bitcoin itself

Analysts: Bitcoin Mining Costs More Than Its Worth

Unless you're a low-cost Bitcoin miner in China.

<h2>Blockchain-Powered ATMs</h2>
Bank of America customers could soon use automatic teller machines, better known as ATMs, that are powered by a blockchain ledger. The company filed a <a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&amp;Sect2=HITOFF&amp;p=1&amp;u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&amp;r=1&amp;f=G&amp;l=50&amp;d=PTXT&amp;S1=(%22bank+of+america%22+AND+%22blockchain+%22)&amp;OS=%22bank+of+america%22+AND+%22blockchain+%22&amp;RS=(%22bank+of+america%22+AND+%22blockchain+%22)">new U.S. patent</a> for the system that was published online Tuesday.
According to the patent, Bank of America could use blockchain tech to verify and track ATM cash transactions and improve ATM performance. The move highlights the tension and irony of the contemporary blockchain ecosystem. BofA, fearful of being left behind by new financial innovation, now holds more than 50 patents for blockchain technologies, <a href="https://www.coindesk.com/bank-of-america-files-for-blockchain-atm-as-a-service-patent">according to</a> Coindesk. That could be a sign that it&#8217;s positioning itself for a serious push into the same decentralized technology that was originally designed to take power away from big banks.
<h2>Decentralized Hub</h2>
The idea behind the patent, which was first filed in June 2017, is that tracking cash transactions on the blockchain could help plan and predict which ATMs need cash when — the bank would be able to cut down on how costs related to transporting the physical cash, <a href="https://www.coindesk.com/bank-of-america-files-for-blockchain-atm-as-a-service-patent">according to Coindesk</a>.
Bank of America also got the rights to new &#8220;ATM as a service&#8221; platforms, which the patent describes as a way to boost engagement with ATM services like video calls and integration into local marketing campaigns or pop-up stores. These features are seemingly intended to make cash withdrawals fun and trendy.
<h2>Full Circle</h2>
Two months after the blockchain ATM patent was filed, Bank of America and Wells Fargo cut down on cash-related costs by <a href="https://www.bizjournals.com/bizwomen/news/latest-news/2017/11/big-banks-ban-cash-deposits-into-others-accounts.html">banning third-party cash deposits</a>. This move away from tangible money <a href="https://twitter.com/tressiemcphd/status/1077221502137917440">recently resurfaced and drew ire</a> by would-be gift-givers over the holiday season.
If this blockchain patent is any indication, we can expect more changes in the future that make things smoother for BofA — even if we get fewer options as a result.
READ MORE: <a href="https://www.coindesk.com/bank-of-america-files-for-blockchain-atm-as-a-service-patent">Bank of America Files for Blockchain ‘ATM as a Service’ Patent</a> [Coindesk]
More on blockchain finance: <a href="https://futurism.com/bank-america-wins-patent-crypto-exchange-system">Bank of America Wins Patent for Crypto Exchange System</a>

The idea is part of an ironic trend: banks want to leverage a technology that was invented to take power away from financial institutions.

A new Bank of America patent describes blockchain-powered ATMs

Boosting Engagement

A newly-published patent grants Bank of America the rights to blockchain-powered ATMs and "ATM as a service" platforms to cut costs boost engagement.

A New Bank of America Patent Describes Blockchain-Powered ATMs

BofA can now build a distributed "ATM as a service" platform.

<h2>More Sanctions</h2>
U.S. regulators are taking a stronger stance against Iran&#8217;s plans to develop its own sovereign cryptocurrency.
Congress introduced a <a href="https://www.congress.gov/115/bills/hr7321/BILLS-115hr7321ih.pdf">bill</a> on December 17 called the &#8220;Blocking Iran Illicit Finance Act&#8221; that threatens Iran with more sanctions in response to activity that could see Iran develop its own national cryptocurrency. The U.S. is worried that the development of such a cryptocurrency could allow Iran to launder money, thereby dodging U.S. sanctions.
A <a href="https://www.congress.gov/bill/115th-congress/senate-bill/3758/text">corresponding bill</a> sponsored by Ted Cruz (R-TX) calls for additional sanctions against anybody who could be aiding Iran to develop such a digital currency, including sanctions against any foreign person that might facilitate transactions for the &#8220;sale, supply, or transfer&#8221; of such a currency.
<h2>Existing Tension</h2>
And tensions between the U.S. and Iran are already high after the Trump administration decided to withdraw from the <a href="https://www.bbc.com/news/world-middle-east-33521655">Joint Comprehensive Plan of Action</a> (JCPOA) in May 2018. Under the accord, Iran agreed to limit any nuclear activity, and allow international actors to inspect any nuclear plants in the country. In return, economic sanctions would be lifted.
And Iran has been busy laying the groundwork for an official national digital currency. The country has been in the news recently, promising that blockchain technology could give Iran a much-needed <a href="https://www.coindesk.com/iranian-official-says-blockchain-could-deliver-economic-boost">economic boost</a>, Coindesk reports.
Officials <a href="https://www.ccn.com/iran-inches-closer-to-national-cryptocurrency-in-plan-to-evade-us-sanctions/">announced in July</a> that Iran was planning to issue its own national cryptocurrency. Months later, Iran agreed to <a href="https://news.bitcoin.com/iran-officially-recognizes-cryptocurrency-mining/">officially recognize</a> crypto mining as an industry in the government.
<h2>The Petro</h2>
There&#8217;s a precedent for a country developing its own sovereign cryptocurrency — without the best of intentions. Venezuela&#8217;s <a href="https://futurism.com/venezuela-cryptocurrency-petro-blockchain">highly controversial &#8220;petro&#8221;</a> — an oil- and state-backed cryptocurrency pushed by president Nicolas Maduro — is meant to give the South American nation a way out of crippling hyperinflation. So far, the people of Venezuela have yet to see any tangible benefits from the petro.
In fact, the Trump administration has also <a href="https://www.nytimes.com/2018/03/19/world/americas/trump-venezuela-sanctions-petro.html">expanded sanctions</a> in March against Venezuela to include any trade of the petro.
Will Iran comply with Congress&#8217; demands — if the bill passes — and cease any activity related to the issuing of a digital currency? Unlikely. But it could have a negative effect on already poor relations between the two countries.
READ MORE: <a href="https://www.coindesk.com/us-lawmakers-seek-sanctions-against-irans-cryptocurrency-efforts">US Lawmakers Seek Sanctions Against Iran’s Cryptocurrency Efforts</a> [Coindesk] 

More on Iran&#8217;s cryptocurrency: <a href="https://futurism.com/iran-national-cryptocurrency">Iran May Move to Create Its Own National Cryptocurrency</a>
&nbsp;

Tensions are already high between the two countries.

The U.S. challenges Iran's attempt to develop a cryptocurrency

Iran Crypto

Congress just introduced a bill calling for sanctions against Iran's efforts to develop its own national cryptocurrency.

The U.S. Challenges Iran’s Attempt to Develop a Cryptocurrency

According to the U.S., entering the crypto space would let Iran dodge sanctions.

<h2>ZuckerCoin</h2>
Facebook is getting into the crypto business.
That&#8217;s according to <a href="https://www.bloomberg.com/news/articles/2018-12-21/facebook-is-said-to-develop-stablecoin-for-whatsapp-transfers?srnd=technology-vp">new reporting</a> by Bloomberg. Sources familiar with the project told the business magazine that the social media giant is working to develop a money transfer system for its WhatsApp chat app that uses a stablecoin — a form of blockchain-based cryptocurrency that is pegged to a particular unit of value like the U.S. dollar. For a major tech corporation like Facebook to enter into the cryptocurrency space could be a key inflection point for the blockchain industry.
<h2>FaceCoin</h2>
WhatsApp may not be the number one choice of messenger app in the U.S., but it enjoys massive popularity in other parts of the world, including India — <a href="https://www.financialexpress.com/industry/technology/whatsapp-now-has-1-5-billion-monthly-active-users-200-million-users-in-india/1044468/">over 200 million</a> of the app&#8217;s 1.5 billion users reportedly live there. Many global immigrants send money back home in the form of remittances, including <a href="https://economictimes.indiatimes.com/news/economy/finance/india-highest-recipient-of-remittances-at-69-billion-says-world-bank/articleshow/63881096.cms">almost $70 billion</a> worth sent to India alone in 2017, according to the World Bank.
Now it looks like Facebook wants to take a cut using cryptocurrency. Rumors about the possibility Facebook is getting into crypto arose when the company made some key hires for a <a href="https://www.coindesk.com/facebooks-david-marcus-lead-new-blockchain-research-unit">brand-new blockchain team</a> back in May 2018. And the company sent out job listings for <a href="https://www.coindesk.com/facebook-is-hiring-5-new-staff-members-for-its-blockchain-team">five more staff positions</a> earlier this month.
<h2>WhatsCoin</h2>
But Facebook picked a challenging moment for the venture. Stablecoin startup Basis had to <a href="https://www.coindesk.com/basis-stablecoin-confirms-shutdown-blaming-regulatory-constraints">close its doors</a> earlier this month after only eight months in the cryptocurrency business thanks to regulatory hurdles.
And then there&#8217;s the complicated relationship between Facebook and India. The Indian government <a href="https://futurism.com/india-facebooks-whatsapp-violence">recently warned</a> Facebook that its WhatsApp platform was to blame for an intense wave of mob violence.
The bottom line: do the people of India — and their government — really have enough faith in the Facebook-owned platform, and in the stability of cryptocurrency, to send money using the new system? That remains to be seen.
READ MORE: <a href="https://www.bloomberg.com/news/articles/2018-12-21/facebook-is-said-to-develop-stablecoin-for-whatsapp-transfers?srnd=technology-vp">Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say</a> [Bloomberg] 

More on WhatsApp: <a href="https://futurism.com/india-facebooks-whatsapp-violence">India’s Government Blames Facebook’s WhatsApp for Mob Violence</a>

WhatsApp users will need to trust not just Facebook but the stability of cryptocurrency.

Facebook is reportedly creating its own cryptrocurrency

WhatsApp Crypto

Bloomberg reports that Facebook may be working on creating its own cryptocurrency in the form of a stablecoin for WhatsApp users.

Facebook is Reportedly Creating Its Own Cryptocurrency

A WhatsApp stablecoin could allow users to send money abroad using crypto.

<h2>Bomb Threats</h2>
Ransomware that demands cryptocurrency payments in exchange for releasing infected computers is an <a href="https://coinsutra.com/cryptocurrency-scams/">old phenomenon</a>.
Now that practice has a dark new twist. This week, scammers have started <a href="https://twitter.com/tomscott/status/1073282152031240192/photo/1?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1073282152031240192&amp;ref_url=https%3A%2F%2Fwww.theverge.com%2F2018%2F12%2F13%2F18139724%2Fbitcoin-bomb-threat-scam-email-us-police-department-investigation-evacuations">emailing bomb threats</a> to hundreds of schools, hospitals, businesses and other public and private institutions in multiple countries, demanding bitcoin payments in exchange for not setting off seemingly made-up explosives. The threats caused mayhem. <a href="https://www.thestar.com/news/gta/2018/12/13/toronto-police-evacuate-king-subway-station-after-bomb-threat.html">Entire blocks</a> were shut down in several cities — a dark testament to the power of online anonymity.
<h2>No Terrorism Here</h2>
Emergency responders were dispatched in <a href="https://www.thestar.com/news/gta/2018/12/13/toronto-police-evacuate-king-subway-station-after-bomb-threat.html">multiple cities</a> across North America to investigate the threats — including a <a href="https://www.thestar.com/news/gta/2018/12/13/toronto-police-evacuate-king-subway-station-after-bomb-threat.html">dozen threats</a> in DC alone. Not a single bomb has been found at press time, leading authorities to believe the threats were an elaborate bluff.
The advice from the U.S. government: <a href="https://cointelegraph.com/news/us-government-tells-bitcoin-bomb-scam-victims-to-inform-fbi-not-pay-ransom-money">tell the FBI</a>, and do not pay the ransom of $20,000 U.S. in Bitcoin.
The <a href="https://twitter.com/tomscott/status/1073282152031240192/photo/1">cryptic emails</a> demanded that victims send the payment to a bitcoin address.
&#8220;If you are late with the transaction,&#8221; the email says, &#8220;the bomb will explode.&#8221;
<h2>Hitting Bitcoin While It&#8217;s Down</h2>
The value of Bitcoin took a <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-bomb-threats-demand-crypto-for-ransom-2018-12-1027808375">substantial hit</a> in the wake of the bomb threats. That&#8217;s bad news, since Bitcoin <a href="https://www.newscientist.com/article/mg24032082-400-bitcoins-price-is-plummeting-will-the-cryptocurrency-survive/">was already slouching</a>. Bitcoin Cash also <a href="https://cointelegraph.com/news/bitcoin-cash-tanks-13-percent-as-major-cryptocurrencies-all-fall-hard">fell 13 percent</a>, and many other major cryptocurrencies followed.
The takeaway: advocates have long predicted that blockchain technology is about to go mainstream, but to date the technology hasn&#8217;t strayed far from its <a href="https://gawker.com/the-underground-website-where-you-can-buy-any-drug-imag-30818160">early roots in crime and drug sales</a>. Only time will tell whether the tech will eventually shed that identity.
READ MORE: <a href="https://www.theverge.com/2018/12/13/18139724/bitcoin-bomb-threat-scam-email-us-police-department-investigation-evacuations">Bitcoin scammers send bomb threats worldwide, causing evacuations</a> [The Verge]
More on bitcoin: <a href="https://futurism.com/bitcoin-conspiracy-21e8">Here’s The Conspiracy Tearing Bitcoin Crypto Communities Apart</a>

It's a dark testament to the power of online anonymity.

Scammers sent hoax bomb threats worldwide demanding Bitcoin

Bomb Threats

This week, scammers have started emailing hoax bomb threats to schools and hospitals, demanding bitcoin payments in exchange for not setting off explosives.

Scammers Sent Hoax Bomb Threats Worldwide Demanding Bitcoin

Email: "If you are late with the transaction, the bomb will explode."

<h2>Abstract Investments</h2>
A cryptocurrency investment firm called Digital Currency Group <a href="https://insights.dcg.co/introducing-metaverse-ventures-f82fc09a5f83">just launched a new fund</a>, Metaverse Ventures, which will focus solely on simulated products in a virtual reality world called Decentraland.
In case you missed it, Futurism <a href="https://futurism.com/virtual-real-estate">previously reported on Decentraland&#8217;s fundraising efforts</a>, where people and companies paid exorbitant amounts of money for a plot of virtual land in what&#8217;s being marketed as a <a href="https://decentraland.org/">virtual reality megamall-meets-amusement park</a>, all of which runs on the Ethereum blockchain.
<h2>Third Life</h2>
According to Digital Currency Group&#8217;s announcement, Metaverse Ventures already made two key investments.
The first is in <a href="https://www.vegascity.org/">Vegas City</a>, a district that takes up about one-twelfth of Decentraland&#8217;s entire virtual map and is currently allotting space to VR game developers.
The other investment is into a <a href="https://www.artie.com/">startup called Artie</a>, which plans to develop AI-driven avatars for Decentraland visitors.
<h2>Breaking Ground</h2>
What remains unclear is just how much of its resources Digital Currency Group has put into Metaverse Ventures for Decentraland investments. If Decentraland lives up to the hype, it could become a successful marketplace that will reward early investors several times over.
But so far, Decentraland isn&#8217;t open to visitors, and its success depends on people widely embracing two technologies — virtual reality and blockchain decentralization — that <a href="https://futurism.com/tech-research-investigated-43-blockchain-startups">tend to get stuck at roadblocks</a> as people try to <a href="https://futurism.com/the-byte/goldman-sachs-cryptocurrency">move them into mass markets</a>.
But if <a href="https://futurism.com/the-byte/trade-commodities-blockchain">these investments</a> are any indicator of Decentraland&#8217;s potential, you could soon find us hanging out in virtual Vegas.
READ MORE: <a href="https://insights.dcg.co/introducing-metaverse-ventures-f82fc09a5f83">Introducing Metaverse Ventures</a> [Digital Currency Group]
More on blockchain investments: <a href="https://futurism.com/the-byte/blockchain-city-nevada-desert-gigafactory">A Millionaire is Building a Blockchain Utopia in the Nevada Desert</a>

It's going to corner the market of people who regularly use VR and blockchain tech and...

A new VC fund is bankrolling virtual products in a simulated world

Decentraland

Digital Currency Group's new branch, Metaverse Ventures, will invest exclusively in Decentraland startups that develop products for the VR blockchain world.

/Blocknik