Posts Tagged mdash
Paxum Ends Association with Bitcoin Exchanges
Posted by admin in Uncategorized on March 6, 2012
CYBERSPACE—In a GFY thread posted up Saturday, Paxum announced that starting immediately it would cease working with any companies using virtual currency Bitcoin. The decision had been forced upon the global e-wallet and money transfer service by its banking partners, the company said.
“this was not an overnight/impulsive choice,” posted Ruth Blair for Paxum. “we had been in discussions with our banking partners, Mastercard and our auditors for the last couple of weeks, and on Friday our banking partners ended the discussions with us and stated that it was too much of a potential risk to continue doing business with Bitcoin and Bitcoin Exchangers and instructed us to close all Bitcoin-related accounts. we had no choice but to follow those instructions and therefore, all Bitcoin associations were severed on Friday.”
Paxum did not use Bitcoin as a currency itself but did allow Bitcoin exchanges to use Paxum as one of their payout options. As of Friday, that option was no longer available to them.
According to Betabeat.com, Paxum started working with the exchanges about a year ago. “Paxum hooked up with leading Bitcoin exchange Mt. Gox in December 2010, major Bitcoin exchange Tradehill in July 2011, and more recently with BitInstant, a service that speeds up Bitcoin transactions by fronting customers the credit, and others,” reported Adrianne Jeffries for the site.
Though Paxum declined to state which banking partners had ordered a halt to any affiliation with Bitcoin, Blair said in the GFY post that “Paxum was not hacked by any Bitcoin user(s), and we have not encountered any fraudulent activity with Bitcoin and Bitcoin-related accounts.”
There was speculation in the immediate aftermath of the announcement that Canadian regulators were to blame.
“Paxum, inc. is licensed and registered as an MSB (Money Servce Business) with main offices in Quebec, Canada,” wrote Jon Matonis on his blog, The Monetary Future. “Apparently, the MSB regulatory body in Canada, FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), has decided to exert some soft pressure on e-wallet companies and their banks that facilitate bitcoin exchanges.
“As no court jurisdiction has ruled on whether bitcoin is actually money,” continued Matonis, “the regulators have decided to issue statements of guidance as to how bitcoin may or not be interpreted by the courts. The result of this has been to exert regulatory influence through warnings because the licensed money service businesses are being ‘pre-warned’ of potential legal issues ahead.”
But Paxum’s Blair also rejected that claim, telling Betabeat that there were no new government regulations prompting the change, and pointed to the exceptionally high risk nature of Bitcoin is the ostensible reason for the cut-off.
“The main fears [of Paxum’s banking partners] had to do with the fact that [Bitcoin is] a decentralized currency and as such there isn’t much control over it,” she said. “In the end, it is converted to a legal tender (generally USD), but it is unclear to them how this currency is supported and who pours actual money into it, and more importantly, why.”
A sign of Bitcoin’s growing use is reflected in the increased media attention it has been getting recently. On Jan. 27, Pc Pro published an article titled “Paying for your crimes with Bitcoin,” in which the author stated, “It’s become increasingly clear over only two years that Bitcoin is now the currency of choice for the discerning cybercriminal.”
Not a week later, Financial Edge posted an article titled, “Bitcoin may be the Currency of the Future,” in which author outlined the reasons why virtual currencies are so attractive, but warned that in addition to the currency’s inherent volatility “There’s also the problem of trustworthiness. Although traditional or fiat currencies may not be based on an underlying asset like gold, they have an implied value due to their universal adoption. Bitcoins aren’t backed by a hard asset or a large government, so there is no guarantee that bitcoins will hold any value in the future.”
That fluctuating value, as well as some other well-publicized problems, has plagued the virtual currency. According to a Jan. 17 article in new Scientist, “It has been a rocky year for Bitcoin, the online peer-to-peer currency, with the exchange rate soaring from a few cents to over $30 per coin before crashing after a string of thefts, hacks and other setbacks. Coins have since regained a value of around $5. But it is becoming clear that the software could prove at least as useful as the currency itself, underpinning a number of important new technologies.”
The new technologies are emblematic of the potential uses that digital currencies can play in the developing global online economy, for better or worse. one ancillary use is as a form of “carbon dating.”
Jacob Aron explained, “an individual’s bitcoins are registered to one or more addresses, which are alphanumeric sequences that serve as the user’s identity on the P2P network. When a transaction takes place, it is broadcast on the network, effectively creating a public record. The coded address keeps the user’s identity anonymous.
“Clark and his colleague Aleksander Essex at the University of Waterloo, also in Ontario, realized they could convert a message—for example, a list of codes that securely link voters to their votes—into a Bitcoin address,” added Aron. “Sending a tiny fraction of a bitcoin—a small transaction—to that address would allow the holder of that list to store it in the public record without revealing its contents. When they later publish the message for verification, anyone can repeat the conversion to a Bitcoin address and confirm its age by checking the public record.”
Another system already in development utilizes Bitcoin to circumvent internet censorship. “Launched last year, [Namecoin] uses modified Bitcoin software to provide decentralized domain names for websites,” wrote Aron. “When you enter an address like newscientist.com into a browser, it consults a domain name system (DNS) server to find the site’s numerical address. DNS servers are centrally controlled by the Internet Corporation for Assigned Names and Numbers; Namecoin offers a P2P alternative.
“this allows owners of ‘.bit’ domains to get around DNS restrictions such as those proposed in the US Stop Online Piracy Act (SOPA), which if passed into law would see copyright-infringing sites struck from the DNS record,” he concluded.
And last year, Ars Technia reported on malware that was targeting Bitcoin, warning, “In a report issued last week, Symantec researchers described a Trojan that uses the user’s computer to mine Bitcoins on behalf of the intruder. they estimate that, at current exchange rates, a fast computer could generate as much as $150 worth of Bitcoins per month.”
Clearly, there are two sides to Bitcoin, which explains why it has and will continue to attract so much conflicted attention.
As far as Paxum’s decision goes, some impacted parties are still hoping that an accommodation can be found. In a post to a Bitcoin forum on Saturday, Charlie from BitInstant, one of the exchanges cut off by Paxum the day before, expressed his hope that the issue can still be worked out.
“Paxum and I have a few conference calls with their partners set up for this week and if all goes well, we can have this resolved and back online in 1-2 weeks,” he said, adding, “I just booked a flight to Paxum HQ in Canada for next week, and I hope to have it reinstated in the coming weeks.”
Whether such an accomodation is possible remains to be seen. Monday, as the Paxum news was still sinking in, Betabeat reported that Bitcoin exchange Tradehill had suspended trading, effective immediately, and would return all clients’ funds. The reason reinforces the speculation that regulators have increased pressure on the sector.
“Due to increasing regulation TradeHill can not operate in it’s current capacity without proper money transmission licensing,” said an announcement on the Tradehill blog. “Combined with multiple bank account closures and Paxum’s decision to close all Bitcoin business accounts, we have deemed the best course of action is to halt trading and pursue licensing while raising funds.”
Paxum Ends Association with Bitcoin Exchanges
Personal Kluge items being auctioned off in Lynchburg
Posted by admin in Uncategorized on February 23, 2012
LYNCHBURG — Vehicles, watches, furs, art, silver, a crystal collection and more will be for sale at a bankruptcy auction Saturday in Lynchburg from the estate of former billionaire Patricia Kluge.
The sale includes items from other bankruptcy cases, such as jewelry and a 2,000-plus-piece coin collection, but most of the items will be from the Kluge estate in Albemarle County, said Micah Torrence, marketing director of TRF Auctions, which is conducting the sales.
The auction will begin at 10 a.m. Saturday at the Plaza, on the upper level near Rent-A-Center. there will be a preview of the items from 10 a.m. to 7 p.m. Thursday and from 8 a.m. to the start of the auction Saturday.
William Schneider, the trustee of the estate, would not comment for Kluge.
Three vehicles, four fur coats, two watches, two four-wheelers, two golf carts, four kayaks, several pieces of furniture, 25 pieces of art and a six-piece silver set are among the items for sale.
Torrence said he wanted to have the auction in Charlottesville, where Kluge lives, but the site where most of the items were stored was sold earlier at auction. He looked for other locations in the Charlottesville area, but with his company in Lynchburg and the trustee here, as well, having the auction in the Hill City was a good option.
Items subject to lien due to a debt owed to Farm Credit Bank will be sold, as will items sold on behalf of the bankruptcy estate, according to federal bankruptcy court records. the order was filed Dec. 21.
Farm Credit Bank foreclosed on the Kluge Estates Winery and Vineyard last year and sold the property at auction. Most of the property was bought by Donald Trump. Kluge put up her real estate and other personal property as collateral to help fund the winery, which was the largest in the state.
Torrence said they had conducted an auction in Lynchburg from the Kluge estate for a Jeep Grand Cherokee on Dec. 7 that was subject to a lien. the other auctions of Kluge property and high-end assets were held in Charlottesville.
While most of the high-end items were sold at previous auctions, Torrence said, some remain, including a Cartier watch that would cost $5,000 new.
“not your everyday ordinary stuff,” he said. “It’s a really neat selection of items.”
Davison reports for the News & Advance in Lynchburg.
Ex-employee charged in tool theft » Local News » The Richmond Register
Posted by admin in Uncategorized on January 12, 2012
RICHMOND — Richmond Police arrested John M. Albertini, 29, of Dixie Plaza, on Thursday after an investigation determined that he had transferred to a third party tools that were reported stolen on Halloween. A former employer of Albertini’s told police several tools had been taken during the previous two to three months while the owner was out of town. Investigators developed information that Albertini had been in possession of the stolen items, including a ladder and two grinders, and had transferred them to a third party, RPD Chief Larry Brock said. Albertini was arrested at his residence and charged with theft by deception (under $500) and receiving stolen property (under $500). he was booked at the Madison County Detention Center and released six hours later under a $500 bond, according to the jail’s website. Drug arrest, criminal mischief on Wednesday, Richmond police charged Trina D. Abney, 44, of McDaniel Avenue, with first-degree possession of a controlled substance, after arresting her on a contempt of court warrant from Whitley County, Brock said. After she was taken into custody on S. Killarney Lane, a search of Abney’s vehicle produced five suspected oxycodone pills hidden under the driver’s seat, the chief said. she was lodged in the detention center, where she remained Friday afternoon under a $263 bond, according to jailtracker.com. the website shows six arrests for Abney in the past 13 months. also on Wednesday, police charged Phillip Scott Lamb, 40, of N. Robbins Court, with second-degree criminal mischief in connection with a Christmas-eve incident at the Blue Moon on W. Irvine Street. A complainant told police he, Lamb and a third person were involved in an altercation inside the bar involving Lamb and another party, Brock said. Lamb and his companion left the bar, and when the complainant left a short time later, three tires on his truck had been punctured. Investigators determined Lamb had punctured the tires after he leaving the bar, the chief said. the suspect was arrested at his residence, and lodged in the detention center. he remained incarcerated Friday afternoon under a $500 bond and a holding order because he was free on bond when arrested, according to a jail booking officer. the jail website lists seven arrests for Lamb in the past four years. Thefts from residences A coin collection valued at nearly $1,700 was stolen from a Mt. Rushmore Drive residence between Dec. 1 and Dec. 21, the owner reported Wednesday. Listed as taken were: 2006 Benjamin Franklin, U.S. Marine Corps, U.S. Army and Sacagawea uncirculated silver commemorative coins; a $5 gold coin; four Eisenhower silver dollars; six Kennedy half-dollars minted in the 1970s; two Liberty half-dollars; 10 Indian-head nickels, two $5 red notes; three $1 bills with sequential serial numbers; and numerous other collectable coins. an apartment resident in the 700 block of Four Mile Road reported Wednesday that her residence had been broken into during the past three weeks and a silver JVC stereo with 3-disc CD player and two 12-inch speakers had been stolen. the loss was estimated at $200. Entry was gained by breaking a backdoor window, according to the police report. an employee of Richmond Manor Apartments, N. Third Street, reported Monday that the facility’s maintenance building had been broken into overnight and a number of items stolen. Entry was gained by forcing open a door that connects the maintenance and laundry rooms. Reported stolen were: a Dewalt 18-volt drill with charger; an electrical meter; a Bosch 12-volt drill; a Craftsman electrical meter; a Dewalt drill-bit set in case; and a black canvas tool bag. the loss was estimated at $505. on Christmas Day, an apartment resident in the 300 block of Turpin Drive reported that his dwelling had been broken into sometime during the past six days and a number of items stolen. Entry was gained by breaking a rear window, according to the police report. an LG 60-inch plasma television, a Hewlett-Packard laptop computer, a black Nintendo Wii gaming system with 100 games downloaded, an RCA DVD player, an antenna converter box and a green/jade colored arrowhead were listed as taken. They were valued at $6,670. Thefts from vehicles A patron of Casa Fiesta reported that a Magnavox DVD player, valued at $150, was stolen from her vehicle while it was parked mid-evening Thursday at the restaurant on the Eastern Bypass. There were no signs of forced entry, according to the police report. A resident in the 100 block of Manna Drive reported Tuesday that her unlocked vehicle had been entered overnight and a number of items stolen. two Memphis 15-inch subwoofers, a silver-and-black Memphis 800-watt amplifier and six homemade CDs, valued at nearly $1,100, were listed as taken. Theft of vehicle A resident in the 300 block of Rosedale Avenue reported Thursday that his maroon 1994 Nissan king cab pickup truck, Kentucky license 622-CHT, had been stolen from his driveway overnight. an acquaintance who had been at the residence also was gone. the vehicle is valued at $1,800. anyone with information regarding these crimes is asked to call the Richmond Police Department at 623-1162.
Bill Robinson can be reached at brobinson@richmondregister.com or at 624-6622.
Ex-employee charged in tool theft »
Local News »
The Richmond Register
U.S. deep in debt, while Mint floods with $1 coins
Posted by admin in Uncategorized on January 9, 2012
WASHINGTON — the federal government has too much money on its hands.
That may be surprising, especially given that the government is flat broke, with a $15 trillion national debt.
But it’s also awash in shiny one-dollar coins, with more than a billion of them going unused by the public and piling up in bank vaults across the country.
To deal with the excess, the Obama administration announced Tuesday that it would all but halt production of its special presidential dollar coins for general circulation.
The decision came after the Federal Reserve told Congress earlier this year that it wanted to spend $650,000 to build a storage facility at its bank in Dallas to store all of the surplus coins in one place. And it planned to spend another $3 million to transport the surplus coins to the new warehouse.
Administration officials said the move would save the government $50 million annually for the next several years.
“we simply shouldn’t be wasting taxpayer money on money that taxpayers aren’t using,” said Treasury Secretary Timothy Geithner.
Members of Congress were trying to intervene, with Rep. Adam Smith, D-Tacoma, introducing a bill that would have forced the U.S. Mint to reduce production. Smith said he was pleased that the president and his administration “have seen the waste in this program” and reacted to it.
“we don’t use dollar coins,” Smith said. “It’s funny – you go to Europe, and you’ve got the euro and you’ve got the pound, but in America, people just don’t walk around carrying coins the way they do in Europe. It’s a cultural thing.”
The beginning of the surplus dates back to 2005, when President George W. Bush signed the Presidential $1 Coin Act, which required the U.S. Mint to issue new coins to honor deceased presidents each year, regardless of demand. the government tried to force circulation of the coins by requiring their use by federal agencies and the U.S. Postal Service.
Despite the efforts, nearly 1.4 billion excess dollar coins sat untouched in vaults, enough to meet expected demand for more than 10 years. And the Mint planned to produce another 1.6 billion dollar coins in the next five years.
The plan to stop production was made by Vice President Joe Biden as part of the administration’s “Campaign to cut Waste.” Biden said the Mint was only halfway through its production cycle, still making coins to honor presidents from the 1800s.
“And as it will shock you all, the call for Chester a. Arthur coins is not there,” Biden told members of the Cabinet.
At first, Smith said, Congress’ mandate was a moneymaker for the federal government.
“It costs like 30 cents to make a dollar coin, so you make 70 cents on the deal,” Smith said. “the problem is we were generating so much more than there was demand for. If you’ve spent 30 cents and don’t sell it, all you’ve done is spend 30 cents, first of all. second of all, you’ve got to store the darned things somewhere. … We’re trying to save money here.”
In its annual report to Congress this year, the Federal Reserve said it had ample space to store more than $2 billion in dollar coins by 2016, when the government planned to stop producing the presidential coins.
But since it needed more space for its inventory, the Fed said it needed a new warehouse in Dallas, even though there would be “no perceptible benefit to the taxpayer.”
The Fed’s report prompted a spate of bills on Capitol Hill.
Smith proposed a bill that would require the Fed to roughly cut its production of coins in half. His bill would not have stipulated exactly how many coins would be produced each year, but the number would have been linked to the demand for the coins in the previous year.
The administration said it still would be required by law to produce “a relatively small number of the coins to be sold to collectors,” but not the 70 million to 80 million coins mandated to honor each president.
Officials said they expect the excess inventory to be drawn down over time.
While the government will stop producing most of the coins, it won’t stop the debate over whether U.S. citizens should stop using the one-dollar bill.
A report by the Government Accountability Office in March of this year found that replacing the one-dollar bill with the one-dollar coin would save the government about $5.5 billion over 30 years.
That’s mainly because the coins are so much more durable than bills. but polls have consistently found that Americans favor the dollar bill.
Rob Hotakainen: 202-383-0009 rhotakainen@mcclatchydc.com
Anonymous donor puts gold coin, note in Salvation Army Red Kettle in Houston
Posted by admin in Uncategorized on December 26, 2011
HOUSTON—an anonymous donor put a gold coin in a Salvation Army Red Kettle in Houston Tuesday night, just days after the official kickoff of the fundraising campaign.
Salvation Army officials said the coin was donated outside of a Sam’s Club in the 5300 block of South Rice Avenue.
The coin was wrapped inside of a dollar bill, with an accompanying note that read, "A child is born, Jesus!"
"This is a wonderful start to our holiday fundraising efforts, and really makes all of us feel that much more motivated to continue doing what we’re doing to help others this Christmas," said Captain Roman Leal of the Salvation Army Irvington Corps Community Center. "That tells us there are a lot of people out there with generosity in their hearts who really believe in the true spirit of the Christmas season. whoever this donor or donors are thank you! We will put the funds raised by this gold coin to good use."
Funds raised locally from the Red Kettle Campaign benefit programs and services funded by the Greater Houston Area Command across Harris, Fort Bend and Montgomery counties at 18 facilities.
Anonymous donor puts gold coin, note in Salvation Army Red Kettle in Houston
Gold Price
