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Virgil Griffith, the US cryptocurrency expert arrested last week on suspicion of helping North Korea evade US sanctions, reportedly said it'd be "really cool" if North Korea mined ether. Ether is a cryptocurrency developed by the Ethereum Foundation, a nonprofit cryptocurrency platform which Griffith also works for. Griffith reportedly also told fellow crypto experts in April that he intended to arrange the delivery of equipment into North Korea to create ether. Griffith has since been released from prison and is awaiting trial. His lawyer described the allegations against him as "untested." Visit Business Insider's homepage for more stories. A US cryptocurrency expert arrested last week on suspicion of helping North Korea evade US sanction told acquaintances last year that he thought it would be "really cool" if the reclusive state mined cryptocurrency ether, according to one person with direct knowledge of the matter. Virgil Griffith, 36, a US citizen who works for the Ethereum Foundation, told fellow digital currency experts in April 2018 about his intention to arrange the delivery into North Korea of equipment to create ether, two sources told Reuters at the time. Cryptocurrencies, like bitcoin and ether, are created through a computer process called mining, which requires powerful hardware. Once generated, they can be exchanged on anonymous online platforms for fiat currencies such as the US dollar, which in turn can help illicit activities like evading sanctions or laundering money. One of the sources said Griffith said it would be "really cool" if ether were mined in North Korea. Reuters was unable to determine whether Griffith's plans to send the equipment to North Korea, which have not been previously reported, came to fruition. Federal prosecutors in Manhattan charged Griffith over a different incident, accusing him of sharing valuable technical information during a conference in North Korea in April 2019. "We dispute the untested allegations in the criminal complaint," said Brian Klein, Griffith's attorney, in a written statement. "Virgil looks forward to his day in court, when the full story can come out." Klein added that he was pleased that a judge found that his client should be released from jail pending trial. The US Department of State had denied Griffith permission to attend the April conference in Pyongyang A spokesman for the Ethereum Foundation declined to comment on the mining plans. US prosecutors did not respond to a request for comment. According to the federal complaint, Griffith traveled to North Korea via China this April to attend the Pyongyang Blockchain and Cryptocurrency Conference, despite being denied permission by the US Department of State to go. There, he and other attendees discussed how cryptocurrency technology could be used by Pyongyang to launder money and evade sanctions, the prosecutors said. Griffith, who faces up to 20 years in prison, acknowledged in a consensual interview with the FBI in November that his presentation amounted to a transfer of technical knowledge to other attendees, the complaint said. The Ethereum Foundation said in a written statement that it is aware of the recent charges filed against Griffith, and that it was not represented in any capacity at the events outlined in the Justice Department's filing. The "Foundation neither approved nor supported any such travel, which was a personal matter," it added. The complaint says Griffith and others combined and conspired to violate rules in the International Emergency Economic Powers Act from as early as August 2018. But the two sources said Griffith was talking about his interest in helping North Korea create ether at least since April that year, when cryptocurrency and blockchain experts gathered for an industry conference in Seoul's Walkerhill Hotel. An East Asian cybersecurity expert has said Griffith's presence in Pyongyang is 'likely to have been valuable to North Koreans' Griffith, who lives in Singapore, said that he planned to get the equipment through China into North Korea with the help of a Singaporean friend who was going to be in Pyongyang to participate in the annual marathon, the people said. Griffith, who has a doctorate from the California Institute of Technology, said at the time the plan was to have someone hand deliver the equipment to North Korea's telecom agency, one of the sources said. The 36-year-old's actions were defended by Ethereum cofounder Vitalik Buterin last week. On Sunday, he tweeted his hope that the US would "show strength rather than weakness and focuses on genuine and harmful corruption," and said he didn't think Griffith gave North Korea "any kind of real help in doing anything bad."  But on Tuesday, East Asian cybersecurity and ex-NSA expert Priscilla Moriuchi questioned Buterin's analysis. She told Business Insider that Griffith's talk was "likely to be valuable to North Koreans." "Most North Koreans, even relatively high-ranking government officials, do not have regular and unimpeded access to the global internet and it is therefore more difficult for them to gain access to knowledge about cryptocurrency that others might find basic or common," she added. North Korea is known to steal from cryptocurrency exchanges as well as banks. As Reuters reported in August, North Korean hackers stole $2 billion from banks and cryptocurrencies at leader Kim Jong-un's behest in order to fund the development of nuclear weapons.SEE ALSO: A US citizen was arrested for visiting North Korea and giving a talk on cryptocurrencies. An expert says such knowledge is hugely valuable to the hermit kingdom. Join the conversation about this story » NOW WATCH: Inside the US government's top-secret bioweapons lab […]

David Marcus is the executive leading Facebook's wildly ambitious plan to build a new digital currency. Business Insider spoke to former colleagues of Marcus' to understand what drives the man at the heart of Facebook's most controversial project yet. Sources described the 46-year-old, French-born exec as intensely product-focused, ruthlessly focused, and unafraid to talk in visionary terms. The serial entrepreneur views the late Apple cofounder Steve Jobs as a hero. Click here for more BI Prime stories. After PayPal acquired David Marcus' startup in 2011, a three-letter word — "GSD" — started appearing on signs in company conference rooms. It was an acronym that represented a mission statement of the ambitious payments executive: "Get shit done." Nearly a decade later, Marcus is now at the helm of a wildly ambitious project from Facebook to build a new digital currency called Libra — battling critics and fending off deeply skeptical regulators as he attempts to kickstart a project with potentially global implications. Business Insider spoke to former coworkers of Marcus, to learn more about the man behind Facebook's most audacious project in years, what he's like as a leader, and how his personal attributes might shape the outcome of Libra. They described a man who is intensely product-focused, unafraid to talk in visionary terms, and ruthlessly focused on trying to "get shit done." Serial entrepreneur-turned-in-house exec Marcus, 46, is a serial entrepreneur.  Back in 1996, after dropping out of college he founded retail communications provider GTN Telecom, which he ran for four years. It was acquired by World Access in 2000, and he immediately kicked off his next venture — Echovox, which built an early form of mobile payments using SMS billing. It too, was ultimately acquired, and in 2008 he launched his third act: Zong.  Zong also helped build mobile payments, and — there's starting to be a pattern here — it ended up getting acquired, this time by PayPal, three and a half years after launch. At PayPal, though, he hung around for a few years, rising from a mobile executive to eventually become president of the multi-billion-dollar payments firm.  In 2014, though, Facebook came knocking. He joined as vice president of messaging products, responsible for building out Messenger from a dime-a-dozen messaging app into a fully fledged app, a position he held for almost four years before diving headfirst into blockchain as the head of Facebook's experimental new unit. Today, as head of Calibra, he effectively runs a company-within-a-company, building a product from the ground-up that has a radically different focus to some of Facebook's traditional areas of expertise. A product-first entrepreneur styled after Steve Jobs David Marcus has a professional hero that points to his aspirations for blockchain technology: Steve Jobs. "David was a big Steve Jobs fan, he seemed to want to emulate people like Jobs in terms of having ubiquitous product accolade and conformity," said Colin Walsh, who worked alongside Marcus as a strategic account executive at Zong and later PayPal. The executive is obsessive about how products look and work, and that focus could bode well for the cryptocurrency space, which has struggled to achieve any meaningful consumer usage, despite all the buzz. "It's extremely hard to use. Look at most of the apps based on crypto today ... designed for engineers," said Upwork CEO Stephane Kasriel, who worked with Marcus at Zong and PayPal and still counts him as a friend. "I think there's one thing David does extremely well ... extremely user experience-centric" design. Outside of work, the France-born, Switzerland-raised entrepreneur is passionate about motorbikes and skiing. He has successively landed at bigger and bigger platforms Marcus has been involved with cryptocurrencies for at least the best part of a decade. He was one of a small group of Silicon Valley tech and fintech figures — early Facebook employee turned investor Chamath Palihapitiya is also among them — who dabbled in bitcoin fairly early. He first sent Kasriel, the Upwork CEO, a bitcoin about eight years ago, he remembered. Since then, his involvement has grown more serious, and in December of 2017, he joined the board of high-profile blockchain firm Coinbase, in a nod to his future calling. (He stepped down eight months later, citing his work for the then-nascent Facebook blockchain group). His interest in blockchain is only fitting, given what former colleagues described as a focus on ambitious projects and bold dreams. "David wants to achieve big, life-changing developments in technology," Walsh said. "As long as I knew him, that is his motivation in business." "He cares deeply about the details, he was on the phone with engineers" to talk about individual product changes, Kasriel said — but he's "also a visionary, he has big dreams ... [and] talks about them in a very compelling" manner. Throughout Marcus career trajectory, he has successively landed at bigger and bigger platforms to try and achieve his goals, learning how to manage different team sizes and "radically different environments" along the way. Much of the Calibra team are veterans from Zong and PayPal, Kasriel points out: "He's managed to convince people from amazing companies" to sign up for his vision. "He does not settle for whatever he's inherited" This lofty demeanor does not obscure another side to Marcus: A relentless focus on execution. PayPal, by the time of the Zong acquisition, "had become a slow moving company," Kasriel said. Marcus came in and shook things up immediately — driving its shift to mobile, and ultimately laying the groundwork for a company with a market cap today of $126 billion. The three-letter "mantra" displayed on signs served as a constant reminder of Marcus' approach.  "He does not settle for whatever he's inherited," said Kasriel. Walsh said: "David is a serious business person but does have a lighter side, a sense of humor and empathy to a degree, but is ultimately a very focused and determined individual who will not let obstacles impede the outcomes he wishes to achieve." So after five years at Facebook, might David Marcus one day want to be CEO again, and have another chance to truly run the show? "I think you'd have to ask him," Kasriel demurs. "But given what he's trying to do, you need to do it in a place that has scale ... a company that already has billions of online users." Do you work at Facebook? Contact this reporter via encrypted messaging app Signal at +1 (650) 636-6268 using a non-work phone, email at rprice@businessinsider.com, Telegram or WeChat at robaeprice, or Twitter DM at @robaeprice. (PR pitches by email only, please.) Read more: Instagram's lax privacy practices let a trusted partner track millions of users' physical locations, secretly save their stories, and flout its rules Mark Zuckerberg's personal security chief accused of sexual harassment and making racist remarks about Priscilla Chan by 2 former staffers Facebook says it 'unintentionally uploaded' 1.5 million people's email contacts without their consent Years of Mark Zuckerberg's old Facebook posts have vanished. The company says it 'mistakenly deleted' them. Join the conversation about this story » NOW WATCH: Inside the US government's top-secret bioweapons lab […]

Bitcoin on Monday sank to its lowest level since May, dropping below a key $7,000 threshold. It fell to $6,575 at around 1 a.m. in New York (2 p.m. Hong Kong) as the world's largest cryptocurrency extended its losing run for an eighth straight day.  Reasons for the drift are unclear, but one analyst pinned the drop on China pessimism.  On Friday, the People's Bank of China told businesses that are involved with crypto to correct any "improper actions," according to Bloomberg. View Business Insider's homepage for more stories.  Bitcoin on Monday sank to its lowest level since May, falling below the key $7,000 threshold as the world's largest cryptocurrency extended its losing run for an eighth straight day.  According to Markets Insider data, bitcoin fell to $6,575 at around 1 a.m. in New York (2 p.m. Hong Kong), before rising to $6,767 at 4 a.m. Bloomberg, which used data from Bitstamp, reported that the eight-day losing streak tied a for the currency's record fall in 2014.  "The market is so opaque if not damn right impenetrable," said Neil Wilson, chief markets analyst at Markets.com "But it does seem that the China optimism has gone and the market has rolled over as a result." He added: "From a technical perspective we've blown out key support on the 61% Fib level of the big move up and now we may well see $5k before long ($5400 is the next major Fib line and the last line of defence.) If that is reached then we look to $3k again." Bitcoin has rallied this year, rising 82% since the start of 2019, and even with the recent fall, the cryptocurrency is 69% higher than it was one year ago. "There does not appear to be a single trigger for the sell-off, but it does come after a period of ongoing market uncertainty and we are seeing investors starting to look to the year end and closing positions which they are unsure about," said Marcus Swanepoel, CEO of Luno, a UK crypto buying and storage firm.  China is clamping down on crypto China has been cracking down on cryptocurrencies since 2017, according to the Wall Street Journal, but in the last week this ramped this up.  On Friday the People's Bank of China told businesses that are involved with crypto to correct any "improper actions" according to Bloomberg, while the Journal reported that the PBoC "warned investors not to confuse blockchain technology with virtual currencies." Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption […]

Crypto investor Michael Terpin lost roughly 1,5oo bitcoins on January 7, 2018, after falling victim to a SIM swap attack, The Wall Street Journal reported. The bitcoin stake was worth $24 million that day, roughly three weeks after the asset hit its record high price. The incredibly precise hack involves thieves taking control of a phone number and using it to access email accounts, bank reserves, and even crypto wallets. Visit the Business Insider homepage for more stories. One crypto investor lost bitcoin worth as much as $24 million after falling victim to a new kind of hack known as SIM swapping, The Wall Street Journal reported. Michael Terpin was hit by the attack on January 7, 2018, days after bitcoin reached its record high price. Thieves stole roughly 1,500 bitcoins by taking control of his phone number and using Google's "Forgot password?" feature to gain access to his email. With possession of the two personal accounts, the thieves hacked Terpin's crypto wallet, stole the digital assets and quickly sold them, according to WSJ. Bitcoin traded between $16,969 and $15,790 per coin on January 7, 2018. The digital coin now trades at roughly $8,700. SIM swaps involve stealing an individual's phone number and using it to gain access to numerous other accounts. Once a hacker can breach a user's email account, they can scour for proof of asset holdings and subsequently target trading apps, bank accounts, and crypto wallets. Twitter CEO Jack Dorsey was hit with a SIM swap attack on August 30, allowing hackers to post racist and anti-Semitic tweets to his account. The January SIM swap attack wasn't Terpin's first. He had been hacked in the same way seven months earlier, but didn't lose any assets then. Following the first hack, the crypto investor added additional security measures to his AT&T account, including a six-digit PIN required for any future changes, according to WSJ. He also switched out text-message authentication for Google's authentication service. "On a scale of 1 to 10, I'd say my security protections were a 9.8 or higher. But these hackers, all they do is sit around in a basement and figure out ways of hacking people," Terpin told WSJ, noting he thinks employees at an AT&T authorized store gave hackers control of his phone number. SIM swaps are incredibly precise, and the odds of randomly being hit by one are small compared to other hacks. Adding passcodes to a mobile account, using a password-management app, exploring "forgot my password" options, and using other forms of two-factor authentication can help protect phone numbers from SIM hackers, according to WSJ. Now read more markets coverage from Markets Insider and Business Insider: UBS faces a $51 million fine for overcharging Hong Kong accounts through excess trade fees Robinhood's 'infinite money' glitch has reportedly drawn regulatory scrutiny — and the company could be fined A martech startup that has raised $3.5 million says its technology helps cannabis brands reach consumers in a new wayJoin the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption […]

Facebook is trying to make its ambitious plan to create a new digital currency, called Libra, palatable to US lawmakers by amping up fears around China's financial dominance. Facebook announced a new currency, Libra, as a way to allow people to pay for goods and services online, but is facing considerable blowback from politicians and regulators ahead of its launch. Facebook CEO Mark Zuckerberg will appear before US lawmakers and argue that Libra will "extend America's financial leadership... around the world" against competition from China, according to prepared remarks for the House Financial Services Committee. The 35-year-old's optimism about the Libra project comes despite seven of the project's founding members dropping out in recent weeks, including major global payment processing firms such as Mastercard, PayPal and Visa. Visit Business Insider's homepage for more stories. Facebook CEO Mark Zuckerberg has come up with a new angle to make his radical plan for an online currency more palatable to US politicians — by playing on fears that China will beat out the US as a global financial leader. Zuckerberg argued that Libra, the Facebook-backed digital currency, will "extend America's financial leadership as well as our democratic values and oversight around the world." He added that if the US doesn't innovate financially, China might gain more influence over the global financial system. Facebook is trying to get Libra off the ground as a new form of digital currency that will let people pay for goods and services more easily online. But the firm has faced considerable blowback on the plan from regulators and lawmakers around the world. Zuckerberg's comment forms part of the prepared remarks he will deliver on Wednesday in Washington before the House Committee on Financial Services. Here's what's he said: "But I also hope we can talk about the risks of not innovating. While we debate these issues, the rest of the world isn't waiting. China is moving quickly to launch similar ideas in the coming months. Libra will be backed mostly by dollars and I believe it will extend America's financial leadership as well as our democratic values and oversight around the world. If America doesn't innovate, our financial leadership is not guaranteed." Zuckerberg and other Facebook execs have made the China argument before as a way to fend off criticism of their own firm. Facebook is not only battling global efforts to block Libra from launching, it also faces a prospective break-up as lawmakers worry the company has garnered too much power. COO Sheryl Sandberg has explicitly said that breaking up Facebook would help Chinese social media rivals. As the argument goes, these rivals are unlikely to face the same scrutiny in their home nation, but don't necessarily have US-friendly values around freedom of speech and privacy.  In his prepared remarks, Zuckerberg addressed some concerns regarding the project's timescale; its regulation; and how consumers will be protected. Read more: Facebook's blockchain boss David Marcus defends the feasibility of Libra after a quarter of its partners drop out Addressing worries that the project is moving too fast – the currency is slated for a 2020 rollout – he said: "We are committed to taking the time to get this right." He flat-out denied the idea that Facebook intends to circumvent regulators, saying that: "Facebook will not be a part of launching the Libra payments system anywhere in the world unless all US regulators approve it." On the consumer protection front, Zuckerberg claimed that "Facebook is committed to strong consumer protections for the financial information we receive" before making a number of claims about how such information would be handled. "We do not sell people's data; we do not use people's data to make decisions about lending, or to create credit reports; we do not share information with third parties for lending or credit decisions," he said. Despite Zuckerberg's bullishness, the Libra project is going through a rough patch at present. Seven members of the Libra Association – the coalition of firms interested in developing the Libra currency – have backed out of the project in recent weeks. Of the 28 original Libra Association members, 21 now remain, including Facebook, after the departures of PayPal, Visa, Mastercard, eBay, Stripe, Booking Holdings and Mercado Pago. In the wake of these departures, Facebook's Libra chief David Marcus was forced to defend the project's feasibility in a series of media interviews last week. Speaking to Yahoo Finance, Marcus insisted that Libra was "absolutely not" in jeopardy, while admitting that the project is "going to get harder before it gets easier."SEE ALSO: Facebook CEO Mark Zuckerberg has admitted to coming across as 'robotic' Join the conversation about this story » NOW WATCH: Inside the US government's top-secret bioweapons lab […]

South Dakota Sen. Mike Rounds came out as Libra's first major supporter in Congress on Thursday. Senator Rounds wrote a letter to Libra Association member Anchorage praising the company's "entrepreneurial spirit." Other Libra backers including PayPal, Mastercard, and Visa recently backed out of Facebook's cryptocurrency project. Visit Business Insider's homepage for more stories. South Dakota Sen. Mike Rounds has become the first major supporter of Libra, Facebook's venture into cryptocurrency. On Thursday, Rounds sent a supportive letter to Libra Association member Anchorage, a San Francisco-based company that describes itself as a "digital asset custodian." Anchorage tweeted the letter, saying that it is committed to continuing to work with Libra. Thank you @SenatorRounds for your support of entrepreneurship and innovation. We are committed to @Libra_'s ambitious mission and look forward to partnering with regulators. pic.twitter.com/2PGDvuxV6u — Anchorage (@Anchorage) October 17, 2019 Rounds positioned Libra as a necessary development that would allow US tech companies to continue competing with Chinese companies. He wrote that he sees a future in cryptocurrencies and digital payments, so he doesn't understand his colleagues' "hostility." According to Rounds, more than 80% of Chinese consumers used digital payments in the last year, compared to fewer than 10% of US consumers. Rounds also addressed the importance of regulation from Congress for Libra moving forward and supports expanding US anti-money laundering law to cover cryptocurrency, but he slammed the "archaic and inflexible nature of our regulatory and legal system" that drives companies to incorporate internationally. Read more: Facebook CEO Mark Zuckerberg is trying to build a legacy amid scandals and criticism In a statement to Business Insider, an Anchorage spokesperson wrote: "Anchorage is grateful to Senator Rounds and the state of South Dakota for their support of entrepreneurship and innovation. Along with the Libra Association's other Founding Members, Anchorage welcomes regulatory feedback and remains committed to working closely with policymakers, at home and abroad. We respect the critical role that regulators will play in Libra's launch. We hope that Libra's ambitious mission will inspire them as much as it has inspired us." Facebook and Rounds' office did not immediately respond to Business Insider's requests for comment. Rounds wrote that it was "profoundly disappointing" that other lawmakers responded so negatively to the cryptocurrency, which he fears could "put a chill on innovation in the long run." In July, 5 members of the House Financial Services Committee wrote a letter to Facebook CEO Mark Zuckerberg and other executives to put Libra plans on hold until Congress and regulators had a chance further examine the cryptocurrency. Zuckerberg is scheduled to testify about Libra before Congress on October 23. That increased scrutiny may have scared off more than a quarter of the project's backers, including Mastercard, PayPal, Visa, and eBay. SEE ALSO: JPMorgan and Goldman Sachs reportedly rejected any involvement in Facebook's Libra cryptocurrency because of fears it would be used by criminals Join the conversation about this story » NOW WATCH: Watch Google reveal the new Nest Mini, which is an updated Home Min […]

JPMorgan and Goldman Sachs declined involvement in Libra cryptocurrency due to fears it could be used for criminal acts, The Wall Street Journal reported. Libra is Facebook's move into cryptocurrency, which it announced in June. Many of Libra's backers have already dropped out, including Visa, Mastercard, and PayPal. Visit Business Insider's homepage for more stories. JPMorgan Chase and Goldman Sachs declined Facebook's invitation to join Libra because of worries that cryptocurrency could be used to violate money laundering and sanctions laws, AnnaMaria Andriotis, Peter Rudegair, and Liz Hoffman at The Wall Street Journal reported. Facebook hoped to launch Libra by June 2020 with over two dozen cofounders and members of the Libra Association, but these plans have been unraveling since the project was announced early this summer. Facebook did not immediately respond to Business Insider's request for comment regarding J.P. Morgan and Goldman Sachs' involvement. Lawmakers have had concerns about Facebook moving into the cryptocurrency world, especially after privacy snafus like the Cambridge Analytica scandal. In July, Facebook cryptocurrency chief and former Paypal president David Marcus was questioned about the project by the Senate Committee on Banking, Housing, and Urban Affairs. He promised that the company wouldn't launch Libra until regulators' concerns were addressed.  Read more: Facebook made the unusual decision to push back directly on Elizabeth Warren and her criticism of the company, but its attempt to defend itself backfired spectacularly In July, Rep. Maxine Waters and other lawmakers sent a letter to Facebook calling on the company to stop Libra implementation over "serious concerns" about the project. Increased regulatory scrutiny spooked many of the project's backers, and more than a quarter of initial partners have backed out, including PayPal, Mastercard, Visa, and eBay. These criticisms also come amid worries that Facebook and other big tech companies are monopolies without sufficient competition. Democratic presidential candidate Sen. Elizabeth Warren has made breaking up large tech companies a cornerstone of her platform. Facebook CEO Mark Zuckerberg is slated to testify before Congress — which will include critics like Waters — about Libra on October 23.SEE ALSO: TikTok hired former US lawmakers to review its content policies after facing backlash and accusations of censorship Join the conversation about this story » NOW WATCH: Apple just released iOS 13.2 with 60 new emoji and emoji variations. Here's how everyday people submit their own emoji. […]

David Marcus, the head of Facebook's Libra cryptocurrency project, has defended the project's feasibility after multiple major backers cut ties. Speaking to Yahoo Finance, Marcus said Libra was "absolutely not" in jeopardy, adding that the project is "going to get harder before it gets easier." On Monday, the 21 partner companies involved in Libra formally established the charter and governing council for the Libra Association. A quarter of the project's 28 founding backers have now abandoned the project, including major payment processing firms like PayPal, Visa, and Mastercard. Visit Business Insider's homepage for more stories. Facebook is on the defensive after a swathe of major firms abandoned the Libra cryptocurrency project in the past week. In an interview with Yahoo Finance, Facebook's Libra head David Marcus defended the feasibility of the project, insisting that Libra was "absolutely not" in jeopardy, while admitting that the project is "going to get harder before it gets easier." And he told Bloomberg that he "totally respects the fact that those businesses and those leaders have a responsibility to their shareholders, employers and stakeholders." He said the project is "going to move forward," and reaffirmed the plan that the Libra Association — the group of firms interested in developing the Libra cryptocurrency — will eventually have 100 members. Marcus's comments come at a critical juncture for the Libra project. Seven of the Association's twenty-eight founding members have now abandoned it, including big hitters like PayPal, Visa, Mastercard, eBay, and Stripe. Latin American online payments platform Mercado Pago and US online travel firm Booking Holdings have also cut ties. Read more: Facebook's Libra cryptocurrency plan just got formalised, but a quarter of its backers have now dropped out The Association's 21 remaining members include Facebook, Spotify, Uber and Lyft. On Monday, those firms agreed upon the association's charter and its leadership council, formally establishing the Libra Association. That 21-member council also appointed a five-person board of directors, which includes Marcus. As well as losing key backers, the Libra project has faced increased regulatory scrutiny in recent weeks. On Monday, Libra's newly appointed deputy chairman Dante Disparte told The Financial Times that regulatory barriers would likely delay the cryptocurrency's proposed 2020 launch. US President Donald Trump has said Libra "will have little standing or dependability," while Democratic Congressperson Rashida Tlaib reportedly asked if Facebook was trying to create a "crypto mafia" by setting up the Libra Association. Marcus has previously been outspoken in his defence of the project. In a tweet on Friday about the exits of Mastercard and others, he wrote: "I would caution against reading the fate of Libra into this update. Of course, it's not great news in the short term, but in a way it's liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you're on to something when so much pressure builds up."SEE ALSO: eBay, Mastercard, Visa, Mercado Pago, and Stripe all cut ties with Facebook's Libra Association Join the conversation about this story » NOW WATCH: People are still debating the pink or grey sneaker, 2 years after it went viral. Here's the real color explained. […]

Apple co-founder Steve Wozniak is concerned how global governments will regulate cryptocurrencies going forward.  While speaking at the Nordic Business Forum in Helsinki on Wednesday, Wozniak said he's "very much afraid" countries will "only want control" as cryptocurrencies spread, according to Bloomberg.  The comments come as advocates are battling to legitimize cryptocurrencies and government are trying to determine how to regulate them.  Visit the Business Insider homepage for more stories. Steve Wozniak is worried about the future of cryptocurrency regulation.  The Apple co-founder said during a speech at the Nordic Business Forum in Helsinki on Wednesday that he's "very much afraid" that as cryptocurrencies spread, "countries will only want control, because countries make their money controlling their currency," according to a report from Bloomberg.  "We're going to see a little bit of a revolution in that sense, and regulation, very tight regulation," Wozniak added.  Bloomberg also reported that Wozniak said he only supports novel blockchain solutions that are improvements from existing technologies such as the decentralized network ledgers system because "if it's kind of like another way to own a share of something. He added: "It's unquestionable who owns what, you can't have phony trading."  Wozniak is a known supporter of blockchain-based currencies. In late 2018, he co-founded EQUI Global, a venture capital firm that issues investors a digital currency called EquiTokens. His comments also come as central banks around the world are assessing the impact of cryptocurrencies on financial markets, and advocates are trying to legitimize the technology.  Facebook CEO Mark Zuckerberg is expected to testify in front of Congress regarding the social media giant's new cryptocurrency initiative called Libra. Federal Reserve Chair Jerome Powell and President Trump have both expressed concerns about Facebook's push into crypto.  Read more: A group of small tech stocks is quietly dominating the FANGs after lagging behind for years. Here's why a Wall Street expert is convinced its gains are just getting started.Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption […]

Bitcoin sank below $8,000 per token early Monday, hitting its lowest level since early June. The world's most traded cryptocurrency has fallen roughly 31% from its yearly high of $12,921, though global recession fears and asset selloffs have played to bitcoin's favor in recent months. Investors have used the digital token as a hedge against common assets, as it's less tied to geopolitical tensions than stocks and bonds. Watch Bitcoin and other cryptocurrencies trade live here. Bitcoin fell below $8,000 per token early Monday, reaching a low not seen since June. The world's most traded cryptocurrency slipped as low as $7,831.92 before paring its losses and rising above the $8,000 threshold. Read more: Facebook's cryptocurrency push takes a big hit as PayPal cuts ties with Libra Bitcoin has dropped roughly 31% from its yearly high of $12,921 in late June. The asset has seen short recoveries from its early 2019 lows, as gears of recession have recently played to the cryptocoin's favor. Some investors have used the token as a hedge against more common investments, since the token isn't as tied to geopolitical tensions as stocks or bonds. The token climbed above $12,000 in early August after China allowed its currency to fall below a critical psychological level, signalling a prolonged trade conflict between it and the US. Bitcoin traded at $8,044.77 per token as of 8:25 a.m. ET Monday, up roughly 116% year-to-date. Now read more markets coverage from Markets Insider and Business Insider: Here's why you still can't get a raise, even with unemployment at a 50-year low Stocks are dropping after China reportedly signals it will take a tougher stance in trade-war talks this week Meet 2019's Rising Stars of Wall Street shaking up investing, trading, and dealmaking Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption […]

Blockchain startup Block.one will settle with the Securities and Exchange Commission for $24 million to resolve allegations of conducting an unregistered initial coin offering. The company allegedly sold cryptocurrency tokens to investors without adhering to securities laws, and didn't provide investors with disclosures they were entitled to, the SEC said in a statement. Block.one is "committed to ongoing collaboration with regulators and policy makers," the company said in a statement. The company neither admitted nor denied the agency's findings. Visit the Business Insider homepage for more stories. Blockchain startup Block.one will settle with the Securities and Exchange Commission for $24 million after being charged with conducting an unregistered initial coin offering. The company, which has operations in Virginia and Hong Kong, held an ICO between June 2017 and June 2018, according to an SEC statement. The offering landed in the midst of the crypto boom, and the startup brought in "several billions of dollars" in the 900 million coin offering, including a portion from US investors. The tokens issued were sold on the Ethereum blockchain, according to Block.one. Block.one didn't register its ICO as a securities offering and didn't seek an exemption from relevant laws, the agency noted. "Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering," SEC Division of Enforcement co-director Steven Peikin said.  "The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions." Read more: Dan Fuss is revered as 'the Warren Buffett of bonds.' He walked us through the investing approach that's delivered market-beating returns and turbocharged his 61-year career. The crypto startup noted it is "committed to ongoing collaboration with regulators and policy makers" as digital assets grow in popularity around the world. Block.one neither admitted nor denied the agency's findings. "We will continue to fight for the development of our industry to achieve as much alignment around policy and best practices as possible," the company said in a statement. The SEC began a greater look at ICOs and cryptocurrencies in 2017, as the deals often fell outside of existing securities laws. Cryptocurrency offerings have slowed as regulation increased and coin prices plummeted from their record highs in December 2017. Now read more markets coverage from Markets Insider and Business Insider: Airbnb reportedly opts for direct listing over traditional IPO ahead of 2020 market debut Charles Schwab says it will cut online stock and ETF fees to zero — and all the major brokers are getting clobbered YouTube star Alisha Marie uses Instagram direct messages to land brand deals. Here are the DMs she sends.Join the conversation about this story » NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption […]

North Korea, along with Russia, Venezuela, and Iran, have all pursued cryptocurrencies, largely as a means to circumvent sanctions. That development illustrates the shortcomings of the board sanctions the US has slapped on those countries and shows why the US's "maximum pressure" can ultimately be self-defeating, writes Willis Krumholz. Visit Business Insider's homepage for more stories. North Korea claims that it is creating its own cryptocurrency. Bitcoin and other cryptocurrency prices fell on the news—at least briefly—because if North Korea is developing its own cryptocurrency, that may reduce its demand for existing cryptocurrency options. This tells us something about the importance of bitcoin and other cryptocurrencies to North Korea. And American policymakers would do well to understand why North Korea is so heavily involved in these encrypted digital currencies, and the implications of their involvement. North Korea's new digital currency will be "more like bitcoin or other cryptocurrencies," said Alejandro Cao de Benos, who is both a North Korean official and a Spanish national long fond of the despotic regime. "We are still in the very early stages in the creation of the token," he added. "Now we are in the phase of studying the goods that will give value to it." How do cryptocurrencies work? Normal financial transactions are centralized. When you write a check to someone else, for example, your check is used by that other person's bank to go to the Federal Reserve and withdraw money from your bank's account at the Fed. Because the transaction flows through the Federal Reserve, which acts as an intermediary, this is a centralized ledger: The Fed stands between the two banks and acts as a neutral party in their transactions. Bitcoin, on the other hand, is a computer code that allows a decentralized payment ledger. Bitcoin's computer code keeps track of who owns what and when all on its own. It does this by incentivizing owners of computing power to "solve" a mathematical equation each time a bitcoin changes hands. Once that mathematical equation is solved, a new set of code—which says who owns each bitcoin—is added to the previous set of code. This chain of code is called the "blockchain." And because no one person owns or single-handedly tracks the blockchain, the process of clearing and settlement has been democratized, and decentralized. This accomplishes two things. It removes counterparty risk, so the buyer and seller don't need to trust one another, and it removes third party risk—the owners of bitcoin don't need to trust the computers clearing and settling bitcoin transactions (though bitcoins can still be stolen from an exchange, which is a separate matter). This decentralization is incredibly valuable to a sanctioned country like North Korea. America's sanctions power flows from the dollar being the world's reserve currency, and the power this gives the American banking system. Because the US government controls the Fed, which controls the dollar, the US government has sway over a large portion of international transactions. Because doing business with North Korea means getting cut off from access to dollars and the US (and therefore global) banking system, any bank or company wishing to stay above board must avoid North Korea altogether. Yes, bitcoins can be tracked, especially when sent through regulated exchanges. But it is much harder to track cryptocurrencies than it is to track dollars. And using cryptocurrencies helps North Korea circumvent the American-centric financial system that gives America its sanctions power. The limits of 'maximum pressure' That's why North Korea has long used bitcoin to dodge sanctions. For example, North Korea makes money via hacking, and cryptocurrencies help North Korea launder that money and put it to work for other uses. Aside from talking up moves to create its own digital currency, the rogue state held its first ever blockchain and cryptocurrency conference in April. Meanwhile, Russia, Venezuela, and Iran have a similar interest in cryptocurrencies—all for the purpose of sanctions evasion. The implication for America is that this cat-and-mouse game makes economic sanctions campaigns hard to sustain—and it increases the cost on the US of employing such coercive measures. The more Washington resorts to broad sanctions—not targeted on specific regime officials or entities but at a foreign economy more generally—the more countries like North Korea, and even our European allies, will develop means of evasion. Aside from this, sanctions are usually ineffective at achieving their desired goals. But the efficacy of broad sanctions is just one reason why Washington should use the blunt force of broad sanctions far more sparingly than it does. The other reason? US politicians and officials seem to think that using sanctions is a win-win. They are wrong. Over time, sanctions power wanes. Overusing sanctions, especially broad sanctions, encourages countries to build their own institutions and systems outside of America and the dollar. In this way, sanctions chip away at dollar dominance, threatening to severely reduce US power. There's already proof of this, and cryptocurrencies used by Russia, Iran, and North Korea are but one piece of this equation. Already, China is buying Iranian oil priced in Chinese renminbi (RMB) rather than petrodollars. Russia, while selling China natural gas, has agreed to issue RMB-denominated bonds. And even Europe has examined ways to escape US secondary sanctions to buy oil from Iran, keeping it in the JCPOA. None of this should be taken to mean the dollar's dominance will soon end—but it won't be the world's reserve currency forever. Abusing sanctions hastens this inevitable decline. Broad, "maximum pressure" sanctions erode US dominance. Just like using missiles or troops, there are consequences for the overuse of sanctions, often unseen or difficult to measure. Let's hope Washington policymakers figure this out before it is too late.SEE ALSO: North Korea is getting better at evading 'maximum pressure' — and it's bringing in more cash in the process Join the conversation about this story » NOW WATCH: Vitalik Buterin created one of the world’s largest cryptocurrencies in his early twenties — here’s how he did it and why […]