Homeland Security Warns Bots Are Exploiting Decentralized Crypto Exchanges

The U.S. Department of Homeland Security has warned that arbitrage bots are exploiting “inefficiencies” in decentralized exchanges (DEX). Citing recent research from Cornell Tech, the department said on Monday that such cryptocurrency platforms are being used by “predatory users” to profit from everyday trades, “siphoning millions or possibly billions of dollars a year in cryptocurrency.” In some cases, high fees are paid to prioritize certain transactions, posing a security threat to entire blockchains, the agency said. According to the article: “Like high-frequency traders on Wall Street, these bots exploit inefficiencies in…

Kraken Ramps Up Security With Enforced 2FA and Dedicated Lab

Cryptocurrency exchange Kraken has introduced two new initiatives aimed at enhancing client and industry security. Firstly, the firm’s recently appointed chief security officer, Nicholas Percoco, announced in a blog post on Tuesday that the exchange has launched compulsory two-factor authentication (2FA). Kraken has had 2FA as an option for usres since its launch in September 2013, but now they will be asked to enable the feature upon their next login, Percoco said, adding that the prompted options for 2FA are Google Authenticator and YubiKey currently. Secondly, the exchange has formed Kraken…

Crypto Platform DX.Exchange Adds Secondary Trading of Security Tokens

DX.Exchange, an Estonia-based platform that soft-launched in January, has opened its market to secondary trading of security tokens.  Announced today, the exchange now allows companies to list their security tokens previously issued on other platforms. Institutional investors in Europe can purchase the tokens on the exchange for fiat, bitcoin, ether, tether and XRP. However, to start with, only one such token will be listed on DX.Exchange – its native IGWT token. Eventually, the platform’s co-founder Daniel Skowronski told CoinDesk, the company will roll out its own technology for asset tokenization, but for now,…

Security Token Startup Templum Shifts to Private Blockchains

Security token specialist Templum is shifting from public to private blockchains. Announced Monday, enterprise software vendor Symbiont is building a private blockchain and smart contracts system that Templum will use for future security token offerings (STOs) by its clients. Previously, the regulated broker-dealer left the choice of blockchain protocol up to the issuers, but this posed problems, Templum CEO Christopher Pallotta told CoinDesk. Many were choosing ERC-20 tokens that run on top of ethereum, said Pallotta, but that network’s well-known scaling challenges meant trading could be hampered during periods of high transaction…

Brazilian Bank Aims to Raise $15 Million Through Security Token Offering

A Brazilian investment bank is planning to raise millions of dollars through the offering of a security token. In an announcement Thursday, Banco BTG Pactual said it will back its blockchain-based token with distressed Brazilian real estate assets, with the expectation of raising up to $15 million. It will also establish a secondary market following the sale in order to provide liquidity to the tokens. The offering will allow investors to invest in the Brazilian real estate market and, based on the performance of the tied assets, receive periodic profits. International investors will be…

Bithumb, SeriesOne to Launch Security Token Exchange in the US

South Korean crypto exchange Bithumb has teamed up with crowdfunding platform seriesOne to launch a compliant security token exchange in the U.S. The joint venture was revealed in a press release from seriesOne shared with CoinDesk on Thursday, which adds that the exchange launch is still subject to regulatory approvals from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). SeriesOne already offers an SEC-regulated platform that supports projects launching initial token offerings, as well as traditional equities and debt offerings. “I believe that our companies will…

IBM Patent Eyes Blockchain for Drone Fleet Security

Computing giant and prolific blockchain researcher IBM has applied to patent a system that would use distributed ledger technology (DLT) to address privacy and security concerns associated with the increasing usage of drones in both commercial and recreational applications. According to documents made public on Thursday by the US Patent and Trademark Office (USPTO), IBM first applied for the patent, the latest in its growing library of prospective blockchain applications, in March 2017. In the patent application, the authors detail how a blockchain ledger could be used to store data…

Binance Partners With Malta to Launch Security Token Trading Platform

Binance, the world’s largest crypto exchange by volume, is teaming up with the Malta Stock Exchange (MSX) to enable security token trading on the “blockchain island,” a local news site reported Tuesday. The exchange’s chief financial officer, Wei Zhou, signed a memorandum of understanding with MSX chairman Joe Portelli to launch a security token trading platform, Malta Today reported. Malta’s finance minister, Edward Scicluna, praised the crypto industry during a press conference, saying the nation will not miss an opportunity to take advantage of new innovations. Although blockchain and cryptocurrencies…

Crypto Exchange Kraken Denies Rumor of Office Closure, Security Breach

U.S.-based cryptocurrency exchange Kraken has denied a rumor that has emerged on social media claiming the firm is shutting down operations at one of its service centers amid a security issue. Reddit user “throwaway34034324” posted a thread on Thursday claiming that the exchange is closing operations in Halifax, Canada, and has “just laid off hundreds of people in response to a security [breach].” Another user, “MysteriousPlankton,” who is apparently one of the Halifax employees, commented on the thread that they were asked to accept voluntarily resignation with eight weeks’ pay as a…

OpenFinance Launches Regulated Trading Platform for Security Tokens

Trading platform OpenFinance has launched a regulated alternative trading system (ATS) for security tokens, CEO Juan Hernandez announced Tuesday. Accredited investors in the U.S. can now purchase or trade the digital assets on OpenFinance’s platform. Retail investors who cannot receive accreditation may also be able to trade certain assets, though after a 12-month holding period, Hernandez told CoinDesk. The platform soft-launched several weeks ago, he said, to allow buyers and sellers to register and complete their anti-money laundering and know-your-customer procedures, with today’s announcement marking the start of actual trading.…