In today’s bitcoin and cryptocurrency news, learn about U.S. Attorney Nick Brown announced today in U.S. District Court in Seattle that a 37-year-old former Seattle tech worker was sentenced to time served and 5 years of probation, including location and computer monitoring, for seven federal crimes related to her scheme to hack into cloud computer data storage accounts and steal data and computer power for her own benefit. Meanwhile, the only time Index Funds trade is after market hours at a predetermined price, unlike ETFs which trade during the day at fluctuating prices. In addition, the market has responded positively to speculation that the Federal Reserve will be less hawkish in its monetary policy actions. Lastly, Ethereum’s native coin, ETH, began declining in value after the Merge upgrade was deployed earlier today and congratulations were given to the ETH community by Vitalik Buterin.
Former Hacker Convicted for Stealing Computer Power to Mine Cryptocurrencies and 100 Million People’s Personal Information
Original Source: Former hacker sentenced for stealing computer power to mine cryptocurrency and stealing the personal information of more than 100 million people
A 37-year-old former Seattle tech worker was sentenced today in U.S. District Court in Seattle to time served and 5 years of probation including location and computer monitoring for seven federal crimes related to her scheme to hack into cloud computer data storage accounts and steal data and computer power for her own benefit. Capital One informed the FBI about Paige A. Thompson’s hacking behavior in July 2019. A seven-day trial convicted her guilty in June 2022. Judge Robert S. Lasnik said Ms. Thompson’s mental health and transgender status would make jail difficult.
We appreciate the mitigating reasons, yet we’re saddened by the sentence. U.S. Attorney Nick Brown said this isn’t justice. Ms. Thompson’s hacking and theft of 100 million people’s information cost businesses and individuals $250 million. Her cybercrimes worried millions of individuals about their sensitive data. This behavior warrants a harsher penalty.”
Thompson was convicted of wire fraud, unlawful computer access, and computer damage.
Prosecutors cited Thompson’s own words in messages and online conversations to show how she utilized a tool she designed to monitor AWS accounts for faulty ones. She utilized misconfigured accounts to attack more than 30 companies, including Capital One bank. She illegally put bitcoin mining software on new servers, with the profits going to her online wallet. Thompson spent hundreds of hours on her plot and braggadocio via correspondence and internet forums.
Prosecutors asked for a seven-year term, saying Thompson’s acts were motivated by spite, retribution, and lawlessness. She committed these acts with arrogance and joy. Thompson wanted to make money off of others, prove she was wiser than them, and gain bragging rights in the hacking world.
Richard A. Collodi, FBI Seattle Field Office Special Agent in Charge, was proud of how swiftly his cyber task team recovered victims’ personal information and prevented additional harm. This case shows why companies and individuals who suspect online data theft should alert the FBI.
The judge will decide how much restitution Thompson must pay on December 1, 2022.
FBI Seattle Cyber Task Force investigated. Andrew Friedman, Jessica Manca, and Tania Culbertson prosecute.
Fidelity Unveils $5m Ethereum Index Fund
Original Source: Fidelity Reveals $5 Million Ethereum Index Fund
Fidelity owns $5 million in a new Ethereum index fund, SEC data show.
The $4.5 trillion asset management registered its Fidelity Ethereum Index Fund on Tuesday, but said the first sale was September 26.
Last month, Fidelity was said to be exploring giving Bitcoin trading to its 34 million retail customers. Galaxy Digital CEO Mike Novogratz spoke at SALT in New York.
“A bird in my ear informed me Fidelity will shift retail consumers to crypto soon,” he stated during the event. I hope the bird’s right.
Fidelity is working on a crypto exchange, EDX Markets. The corporation formed a consortium with Charles Schwab, Citadel Securities, and other sponsors in hopes that the new exchange will “enable a more efficient, secure, and cost-effective procedure for trading digital assets,” a Fidelity spokeswoman told Decrypt last month.
The new Fidelity Ethereum Index Fund joins other Ethereum funds.
Bitwise, a $1 billion asset manager, reported in September that its Ethereum Fund managed $25 million. San Francisco’s Bitwise launched an Ethereum index fund in 2018.
The way index funds like Fidelity and Bitwise’s and ETFs like Grayscale Ethereum Trust (ETHE) are traded is the key difference. Index funds can only be acquired after markets shut and at specified rates, like Fidelity’s latest offering.
Index funds have higher minimums, but the $50,000 minimum on the new Fidelity fund and $25,000 minimums at ETHE and Bitwise put them out of reach for average investors. All of these Ethereum funds are also limited to accredited investors.
Bitcoin and Ethereum’s Rise
Original Source: Why Bitcoin and Ethereum are rising today
What Happened
Several cryptocurrencies surged Tuesday morning on optimism the Federal Reserve may relax its hawkish monetary policies.
As of 10 a.m. ET, Bitcoin (CRYPTO: BTC) was up 4.8% in 24 hours, hovering around $20,000. Second-largest cryptocurrency Ethereum (ETH) was up 4.2%, and XRP (XRP) was up 6.8%.
So what The Reserve Bank of Australia lifted its benchmark rate by 25 basis points (0.25 percentage points) on Tuesday, when most experts expected a 50-basis-point hike. Philip Lowe, governor of the Reserve Bank of Australia, said policymakers had already raised rates “significantly”
Lowe and his colleagues are worried about the economy and how rate hikes would effect consumers once their full impact is felt.
“The current deterioration of the global economy’s outlook is unsettling. How Australians adapt to tightening financial conditions is another issue “Statement from Lowe. Inflation and interest rates are placing strain on household budgets, with the full impact of rising rates yet to be reflected in mortgage payments.
Rising interest rates have been a big headwind for bitcoin and other risky assets, causing substantial valuation drops. U.S. Dollar Index, which gauges the dollar against other currencies, has also declined. Another benefit for crypto is Bitcoin’s inverse relationship to the dollar.
Despite news from Australia, the Federal Reserve is likely to undertake two more significant rate hikes before the year ends, although that plan could change as new inflation data comes in.
In other news, XRP, the cryptocurrency invented by Ripple Labs, continues to make advances as it nears a favorable decision in a two-year court struggle.
In 2020, the SEC sued Ripple Labs for not registering XRP as a security when it received cash in 2013 and for not being transparent with investors. But the SEC is easing up. Ripple and the SEC filed documents last month asking for a summary judgment in the matter.
Recently, Judge Analisa Torres decided that the SEC must produce records from a former director who may have said in a speech that Ethereum is not a security — material Ripple says is important to its case.
Gary Gensler, chairman of the SEC, indicated at a recent conference that Bitcoin and Ethereum should be regulated by the CFTC, which crypto supporters favor.
what
While I’m not persuaded the Reserve Bank of Australia’s smaller-than-expected rate hike suggests the U.S. Federal Reserve will lighten up on inflation, a strong inflation report on Oct. 13 could aid the narrative.
Still, I’m pleased by Bitcoin’s ability to stay around $20,000, and I think Bitcoin and Ethereum will be smart long-term buys. I expect XRP will win its two-year legal battle, which is good for the token.
Original article from Fool.com. All figures in USD unless otherwise noted.
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Traders are Selling News, Causing Ethereum to Drop 9%
Original Source: Ethereum Drops 9% Despite Merge as Traders Are Selling News
After Ethereum’s Merge upgrade and Vitalik Buterin’s congratulations to the ETH community, the native coin of this blockchain, ETH, started falling in price.
After two small red candles, it printed a big hourly one. Ethereum has declined almost 9%, from $1,636 to $1,478 at the time of publication.
Charles Edwards, founder of Capriole Investments, tweeted earlier today that many are calling the Merge a sell-the-news event. He hoped that wouldn’t happen because he feels the Merge is a “Ethereum halving” event. With proof-of-stake, ETH supply will increase less quickly.
The CIO of Moskovski Capital believes the price reduction is due to traders selling the announcement of the ETH Merge. Many experts believe that “ETH is severely underpriced and there’s a catalyst around the corner.”
Summary of today’s Bitcoin and Cryptocurrency news
In summary, a hearing to determine the amount of compensation Thompson must pay to her victims has been scheduled for December 1, 2022, by Judge Lasnik. Seattle Cyber Task Force of the FBI looked into the incident. Andrew Friedman, Jessica Manca, and Tania Culbertson are assisting the US Attorney’s Office in the prosecution of this case.
On the other hand, although index funds typically have larger minimums, the new Fidelity fund’s $50,000 minimum and the $25,000 minimum at ETHE and Bitwise put them largely out of reach for retail investors, especially considering that all of these Ethereum funds are also limited to accredited investors.
Meanwhile, as a further point, SEC Chairman Gary Gensler recently stated at a conference that he believes Bitcoin and Ethereum should be governed by the Commodities Futures Trading Commission, which is the preferred regulatory body for cryptocurrencies.
Lastly, the chief investment officer of Moskovski Capital, however, thinks that the current price dip is due to traders selling the news of the ETH Merge. “ETH is severely underpriced and there’s a catalyst around the corner,” as several experts have put it.
