Published On: Thu, Jul 5th, 2018

Bitcoin price LIVE: Crypto hit by ‘51% attack’ as BTC ‘criminality myths’ are dismissed | City & Business | Finance

Bitcoin price LIVE: Crime is on the agendaGETTY

Bitcoin price LIVE: Crypto crime is on the agenda


Good morning, and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.

Bitcoin is currently priced at $6,606 after falling slightly from its weekly high on Wednesday. However, the general daily movement remains onward and upward.

Crypto crime is the hot topic of the day after MPs heard from a Treasury select committee on the potential for fraud, money laundering, hacking, crypto-jacking and phishing in the crypto space. 

The meeting has been viewed by industry onlookers as a positive step, and Kevin Murcko, CEO of cryptocurrency exchange CoinMetro argued that the Treasury hearing “set the right tone for the future of crypto-assets in the UK – one that reconciles the risks and benefits of the asset.”

Mr Murcko picks out Director Donald Toon, Prosperity Command at the National Crime Agency, arguing that the use of crypto-assets in money laundering was minimal, and that it paled in size to other laundering strategies, alongside Martin Etheridge, Head of Note Operations at the Bank of England, telling MPs that crypto didn’t pose a threat to financial stability.

Mr Murcko said: “The UK is setting a model example for how regulation should be fashioned.

“We heard today from the FCA, the Treasury, and the Bank of England – all experts on finance and crypto-assets. Around the world, we need subject specialists like these stepping forward to counsel governments on their approach to crypto-assets.”

Protecting blockchain hasn’t yet been a priority for many cryptocurrencies, this must change.

Paolo Passeri, Cyber Intelligence Principal at Netskope

However, the positivity of the hearing has been somewhat undone by the ongoing allegation of a “hack” on Syscoin and the suspension of trading on Binance.

Paolo Passeri, Cyber Intelligence Principal at Netskope told that Syscoin, the crypocurrency at one time worth 96 Bitcoins per unit, halted all transactions on Wednesday morning amid hacking fears.

He said: “The knock-on effect of this has caused the world’s largest crypto-exchange by trading volume, Binance, to suspend trading as well.

“Fears of the attack on Syscoin sparked a 4 percent decline in the cryptocurrency’s value within a few hours. It is the potential method of attack, known as a 51 percent attack where over half of a cryptocurrency mining network is taken over, that is causing real concern.”

Bitcoin price live: BTC is on the upGETTY

Bitcoin price live: BTC is on the up

Mr Passeri adds that the so-called 51 percent attack was considered “a theoretical scenario” until now, but after claiming Bitcoin Gold, Litecoin Cash, Monacoin, Zencash and Verge as recent victims – “this is a wakeup call to all digital currencies.”

He said: “Protecting blockchain hasn’t yet been a priority for many cryptocurrencies, this must change.

“Especially for newer cryptocurrencies, often created in forks from existing ones, which are more vulnerable to these attacks due to the limited size of their mining network.”

Syscoin have since denied the attack. They tweeted: “#Binance Resumes Suspended Services After ‘Irregular’ $SYS Trading Risk Alert”.

Got something to add? Send your reaction / thoughts / analysis / price predictions over to @DavidGDawkins

Updates below throughout the day….

8.51am – What is a 51 percent attack?

A 51 percent attack is a theoretical problem where an owner of huge computing resources can take over and change a blockchain.

Investopedia, the online resource for financial terminology says that a 51 percent attack would allow attackers to prevent new transactions from gaining confirmations, allowing them to halt payments between some or all users.

Attackers would also be able to reverse transactions that were completed while they were in control of the network, meaning they could double-spend coins.

This could potentially undermine the entire cryptocurrency ecosystem, giving bad agents control over bitcoin and other currencies globally.

Read more: The HACK that could break bitcoin – ‘51% attack’ concerns mainstream ‘banking bunnies’

10.12am – The death of crypto?

Max Kortrakul Founder and CEO of social crypto trading platform Carboneum told that although there is uncertainty over the future of Bitcoin, the fact remains that there is a large amount of wealth tied up in the currency; therefore investors will be attracted to it.

He said: “Its value is a long way from the $20K mark we saw late last year, but even if the price is to settle at $6/7K long term- it remains an exceptionally high price for what is a brand-new form of asset.

“The news that 800 cryptos are now ‘dead’ does not necessarily point to cryptocurrency being a fad. Whilst that is a high number of failed or scam projects that many a well-meaning investor may have lost money on, there are also a far greater amount of genuine, innovative projects that are going about it in exactly the right way.

“The true success of the crypto-sphere will only become apparent over the coming years as all of these fresh projects mature into the businesses they are aiming to be.”

Bitcoin price LIVE: Wallet holders are optimisticGETTY

Bitcoin price LIVE: Wallet holders are optimistic

11.16am – Crypto community’s message to the UK government

Danny Scott, co-founder of CoinCorner told that his message to the government on the myriad issues associated with regulation and cyber crime, “talk to us, work with us.

“Cryptocurrency is here to stay, so embrace it.”

He said: “Businesses like ourselves are keen to work with authorities to help educate the general public about cryptocurrencies and to prevent crime the best we can. We already work closely with the Isle of Man Financial Services Authority (IOMFSA), advising on regulatory issues surrounding crypto.

“Complying with anti-money laundering and proceeds of crime legislation has always been a priority for us and we feel it is crucial for the positive development of the industry.”

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