FTC Halts Activities of Four Floridians Involved in Crypto-Related Chain Referral Schemes

At the request of the Federal Trade Commission (FTC), the U.S. District Court for the Southern District of Florida has halted the activities of four individuals who allegedly promoted deceptive money-making schemes involving cryptocurrencies. These schemes falsely promised participants they could garner huge returns by using cryptocurrencies such as Bitcoin or Litecoin to enroll themselves and others.

In a complaint, the FTC alleges that four defendants — Thomas Dluca, Louis Gatto, Eric Pinkston, and Scott Chandler — promoted the chain referral schemes called Bitcoin Funding Team, My7Network, and Jetcoin. Using YouTube videos, social media, and conference calls, the defendants promised big rewards for small payments of Bitcoin or Litecoin. The FTC alleges, however, that the structure of the schemes ensured that few would benefit — and that, in fact, the large majority of participants would fail to recoup their initial investments.

Bitcoin Funding Team, My7Network, and Jetcoin

Two of these schemes — Bitcoin Funding Team and My7Network — required people to use Bitcoin or Litecoin to pay for the right to recruit others into the schemes. There was no product or service to sell, people were simply told to pay in and recruit other people into the program. Supposedly, the more cryptocurrency people paid in, the more they would make. The FTC alleges that these programs were “illegal chain referral schemes.”

“This case shows that scammers always find new ways to market old schemes, which is why the FTC will remain vigilant regardless of the platform – or currency used,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection. “The schemes the defendants promoted were designed to enrich those at the top at the expense of everyone else.”

The FTC alleges that a fourth defendant, Scott Chandler, promoted Bitcoin Funding Team and another deceptive cryptocurrency scheme, Jetcoin. Similar to the other two, Jetcoin also promoted a recruitment scheme but also promised investors a fixed rate of return on their initial Bitcoin investments as a result of Bitcoin trading. In a series of promotional calls, Chandler claimed Jetcoin participants could double their investment in 50 days. In reality, the FTC complaint alleges, the scheme failed to deliver on these claims and ceased operation within two months of launching.

In its complaint, the FTC charged that the defendants violated the FTC Act’s prohibition against deceptive acts by misrepresenting the chain referral schemes as bona fide money-making opportunities and by falsely claiming that participants could earn substantial income by participating in the schemes. As requested by the FTC, the court has issued a temporary restraining order and frozen the defendants’ assets pending trial.

These types of complaints have been popping up much more frequently as of late. This year has seen the U.S. Securities and Exchange Commission hitting cryptocurrency and blockchain based technology companies with subpoenas and demands for information in a widespread effort to control fundraising and weed out bad players. The CFTC has also been issuing warnings against similar crypto-related fraud schemes called pump and dumps.

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My previous longer article was about the January Miami BTC conference and the promised follow up is Al Capone style criminally overdue. The event moved at breakneck speed and had such a driven, positive vibe. Dealing with the atomic aftermath took till now to become a cohesive-ish write up. In short, the journey was a f**k yes, as I tend to vulgarly state in social occasions seemingly inappropriate for the expression. I’ll keep this punchy.

Coming To My Senses

Having scored the perfect Airbnb place 5 minutes from the conference center (actual balcony view pic below), I was pumped to get going but jet-lagged beyond available bodily resources. Getting everything ready for a two fair trip, including an overnight ‘stay awake painting’ just before the flight, took its toll. The free flow whiskey pouring by my generous hosts was a welcome edge smoother but not too many before a 48hr crypto sprint. Right? The fleeting pleasure of alcohol was replaced by a sauna, jacuzzi, and a city view pool. I realised also that I was staying with people who run a high-end print place. This trip is going to roast like a Run The Jewels track.

Being new to blockchain conferences, the hunger for the next new thing felt all around was inspiring. No joke. The integration solutions to the ‘real world’ in service prospects or made human connections were a much-needed chilli infusion for the brain. Much respect for Keynote for sponsoring the booth and helping me get physically visible in the scene.

Out of talking so much, my voice blew out halfway conference. At one point I got badly distracted from talking to a Coin Telegraph guy due to another conversation starting with a couple who represent the graffiti artist Banksy. Apologetic as I was about it to him upon this dawning on me, it was a good problem to have. It felt like being able to charge my phone from the surrounding air alone.

Your Vibe Attracts Your Tribe

The buzz around my booth gave me a sense that I’m really onto something with crypto art. It’s nothing short from being able to tell the story of a vast societal change in visual form. To uniquely communicate it to insiders and outsiders alike. One of the chance encounters was Eben Pagan popping by the space with his lovely wife Annie Lalla. It was a strange moment, as I must have spent thousands of hours with his material since 2004 and he hadn’t a clue the other way around. I rarely loose my cool but embarrassingly enough, this was one of those times. Appropriately so I think.

Far too many memories struggling with childhood trauma, depression, figuring out relationships and finding my way in life in general came flooding in talking to him. During those times, the abundance of value Eben delivered to my life through video seminars was a 100% unparalleled. There is no way my other platform Artevo, the LUX project nor my engagement would have happened without the influence his work had on me.

Some people in the crypto space, who think Lambos are the answer, could greatly benefit from his ‘ManTransformation’ program for example. There is a bunch of millionaires within the community still living their ‘Sweet 16’ at 30 and beyond – during global crisis times. Some really need to wake the hell up to smell the ‘more to life than a bit of money’ monologue. As he came to my booth space, I interrupted him eating a sandwich by asking: “Eben Pagan. What are you doing here?” He simply replied: “I’m eating”. Glad to know he is into crypto and I’ll make a better first impression next time.

Eben, Annie and their daughter in Miami.

The Emerging Collector Class

The nr.1 “T(r)opical – Gold Edition” piece, central to the booth picture, was sold to the striking model Gabriella Katia and her entrepreneur husband Matt Crown via Litecoin. By chance encounters, the three of us would all later on end up at a club for a night out. I’d spent a full month working my ass off to be ready for the trip and the official business of the conference was done. It was time to let loose before the coming AFL fair.

Matt & Gabriella

The other awesome person at the afterparty, clearly responsible for me drinking straight from the vodka bottle at the end of the night, was my new collector Michael Jonsson. After mentioning this personal responsibility disclaimer I can admit to literally waking up with my boots still on the following morning. A true flashback to some 20 years ago at a University party in Newcastle. We decided to meet up on Miami Beach for some breakfast to follow up.

His Bitcoin 1/1 piece “Unblocked” is now safely in Toronto being float framed.

A Worthy And Relevant Sidenote

The whole trip was quite an investment so could’t hodl all the benefits. Now if only Coinbase would sort out their customer service I could actually use the converted money trapped behind their non-service lines. Anyone else have this with them or just me?

Bit rude to hold someone else’s money for over a month, not reply to emails and then ask them to ‘rate their service’ – if you are really asking. The survey request was two weeks ago and I’m yet to hear back from them. Ok. Enough complaining. Still with me? Golden nudity ahead.

A 5m$ Home Full of Art Anyone?

Next up was the Tranter-Sinni Gallery organised participation with Art Fort Lauderdale. This fair was our first collaboration with the gallery. They had a few of my large Artevo pieces in their multi-million dollar homes loaded full of art, facilitated a keynote spot and a temperature rising performance at the W Hotel titled ‘Kintsukuroi’.

Watch the performance here

It was rejuvenating to be in front of people performing again so felt it best midway through to drown my suit in gold paint, with a little help from a fellow performer Dayanis Mondeja.

Much love also to the phenomenal dancers of the other performance Carlos Torres and Evelyn Robaina. They did a more classical dance performance version of the same theme. The passionate professionalism of all three performers blew me away. Thanks also for Alexis Espejo at W Fort Lauderdale for facilitating this madness. The plan is to repeat these at crypto conferences all over the world. It’s appropriate as the blockchain is helping to fix money.

Youtube here.

Mom, I’m on TV.

The below segment of the Deco Drive TV show features the Artevo works, the houses and quite prominently, the back of my head. Both Evan Snow and Andrew Martineau did an ‘all in’ job getting this whole fair organised so props to those guys for pulling it off. Bring on AFL 2019.

Watch it here

Crypto Giveth and Crypto Taketh Away

And will likely soon giveth again. Some of you might have seen the previous announcement for the crypto art tour with 4NEW as the primary sponsor. Unfortunately, the recent events in crypto forced them to focus on their live ICO for now, so the mentioned tour is now open for a new main sponsor. 

I’ll be attending the crypto investor show this coming Saturday here in London regarding this. The tour is ready to take off and everything is in place with regards to the gallery and most locations. All that is needed is a funder ready to make some international waves with guaranteed traditional and blockchain press. On April 18th at 5pm I’ll also be presenting at the Ethereum London slot of the London Blockchain conference. Big ups for Stephan Tual for giving me my first crypto keynote opportunity. More to come this year as this fresh speaker page suggests.

2018 is going to be a massive year for me personally and about as exciting as it gets for crypto. None of the people, organisations or businesses in this article have paid to be mentioned. In case you are wondering if what you just read was news, promotional, a blog or something else, all I can say is that I don’t represent legacy media.

This is  the circle of transparent good stuff.

 V E S A
Visual Artist
London / Helsinki
Art: www.artforcrypto.com
Merc: www.artforcrypto.live
Artevo: www.artevo.org

The Winklevoss twins have been strong advocates of Bitcoin since they invested back when it was trading at $8. Today the billionaire brothers have their own exchange which is set to expand to include others from the ‘Satoshi family tree’, these are likely to be Litecoin and Bitcoin Cash.

Welcoming Members of the Satoshi Family

The Gemini Exchange operates primarily as a Bitcoin and Ethereum trading platform, however the twins have plans to expand this to include LTC and BCH this year. The move could have a big impact on CBoE Global Markets Inc which is Gemini’s partner on Bitcoin futures. The Chicago based exchange also has plans to expand its futures contracts beyond Bitcoin and currently uses Gemini to calculate its XBT contracts.

At the 34th annual CBOE Risk Management Conference the twins discussed ‘Digital Assets and the Future of Finance’ with Paul Stevens from the exchange.

The next possible futures contracts could well be Ethereum, possibly followed later in the year by Litecoin and Bitcoin Cash if they get listed on Gemini, which will be responsible for supplying the data.

According to Tyler Winklevoss the licensing agreement with CBoE is scalable, and they entered into the deal knowing it could expand in terms of offerings. Prices usually react when cryptocurrencies get listed on major exchanges; this has been the case historically with rival exchanges Coindesk Inc., and Coinbase. The move would place Gemini in a better position to compete with Coinbase which may then need to increase its own listings by adding others such as Ripple.

Optimistic about greater institutional investor participation in 2018, Tyler went on to say;

“Futures have gotten off to an incredible start. In 2018, you’re really going to see institutions and Wall Street really get in, and it’s going to look very different,”

The Winklevoss twins also praised the SEC for taking the official stance that crypto exchanges must register as a national exchange with the regulatory agency. Gemini itself is regulated by the New York State Department of Financial Services. Regulation is a critical move in protecting investors from fraudulent activity and products.

Bitcoin Cash has seen a positive reaction already, trading up 11.5% on the day however Litecoin has remained lackluster during this morning’s Asian trading session and is only up 4.4%. Real price action will be seen when the official announcement is made.

When a cryptocurrency catches up with a rival in terms of transactions it could be a sign of greater adoption, or maybe not. Litecoin and Bitcoin Cash have been duking it out over the past few months coming ever closer until the inevitable happened. Yesterday BCH caught up with LTC with number of daily blockchain transactions.

According to Bitinfocharts Litecoin has been on a slow downtrend since the beginning of the year with fewer transactions per day. Its last spike was 225k transactions on January 4 when price was also heading over $300. Bitcoin Cash only surpassed LTC once in the past three months on January 14 when it reached 110k transactions.

Litecoin has been above Bitcoin Cash since mid-January by almost double though the two have been slowly coming together. Yesterday BCH transactions reached around 38.5k whereas Litecoin recorded 37.5k. There have been a number of smaller spikes in the transaction numbers for both altcoins so it has yet to be determined whether this is a long term change in trends or just another spike.

Litecoin did not get the boost it expected from the launch of LitePay which was supposed to bring the altcoin to the masses with easy credit card payments. This never happened and only the merchant component of the service was rolled out. As a result LTC has failed to maintain its first upward spurt since early December and has started to slide back towards $200.

Bitcoin Cash has also been on a downward slide since mid-December and it has lost almost 70% of its value since its all-time high of just over $4,000. Its transaction chart looks far more linear than Litecoin’s which rises and falls with natural usage of the asset. Litecoin forefather Charlie Lee has already made a number of comments about a ‘flappening’ in which the LTC market capacity surpasses BCH.

At the moment this doesn’t look likely as they have both maintained a steady gap for a couple of weeks now. Bitcoin Cash remains the fourth most popular cryptocurrency with $21 billion while Litecoin, only one place behind it, has almost half at $11 billion. It will need an almighty announcement or partnership to boost levels enough to overtake BCH in the short term.

Over a longer period it seems more likely if BCH loses its appeal due to more Segwit and Lightning Network adoption for its big brother BTC. The race goes on in the cryptodrome.

News on new partnerships, technology, or services for a specific cryptocurrency usually does wonders for its price action. Yesterday was the launch of Litecoin payments provider LitePay and as expected LTC prices were bullish throughout the day. Today has been the complete opposite as the long awaited service failed to impress, or offer what was expected of it.

An Imprudent Launch

LitePay is essentially a Litecoin version of BitPay which allows merchants and businesses to accept payments in Bitcoin, or in this case Litecoin, much easier. According to reports the launch has been postponed and recipients on the LitePay mailing list have received emails stating that the intended launch of the service is ‘imprudent’;

“Due to recent hostile actions by card issuers towards crypto companies, we have decided that offering LitePay card registrations at this time is imprudent. We will continue to monitor the situation with regards to card services and will open registration as soon as a reliable product can be supported.”

The disappointing message is in reference to the recent prohibition of credit card use for cryptocurrency purchases by a number of major banks. The credit card clampdown news was nothing new however LitePay made the decision to delay this information until the day of the launch.

On the merchant side the launch went as intended and they could sign up for a LitePay Merchant Payment Processing account at the time of launch yesterday. The idea most people had would be that the LitePay Card would work the same way as a Visa or debit card enabling users to spend Litecoin from the card with businesses operating LitePay.

Litecoin Retreats Slightly

Other crypto companies such as TenX have had similar debit cards rendered invalid by the issuers. Visa had already issued a notice in January regarding their clampdown on cards for crypto; “Our actions were not specific to cryptocurrency but rather reflect the issuer’s failure to comply with Visa’s policies that ensure the safety and integrity of our payment system.”

What LitePay has effectively done is create a mini pump and dump for Litecoin which climbed 26% in the days leading up to the launch. Since then it has fallen back from over $233 to $220 where it currently trades, additionally it is the only cryptocurrency in the top 25 in the red at the time of writing.

FUD aside, LTC is still a pretty stable cryptocurrency which is still up 25% from this time last month and has been one of the best performing altcoins in February. Any payment system, with card services or not, can only increase the overall adoption for the digital currency and improve its longer term prospects.

FOMO Moments

Monday morning in crypto land brings a pretty flat market to start the week. Traders have been resting over the weekend and there has been little movement in either direction for many of the altcoins. Bitcoin barely moved over the past two days and has remained steady at around $9,700. A few of the altcoins are up a couple of percent and a few are down a couple but one that is in double figures this morning is Litecoin.

Coinmarketcap has LTC up 11% on the day during the morning’s Asian trading session. This time 24 hours ago it was trading at $205 and this morning it is up to $230. Litecoin peaked at $252 on Feb 21 but has fallen back by 20% over the week, today however it has rallied upwards once again. LTC is higher month on month and has remained above the crucial $200 support level for most of the latter half of February.

The launch of LitePay today is the likely catalyst. The payments processor will expand the adoption of Litecoin as more merchants and businesses will start accepting it as a method of payment for their products and services. A LitePay card and wallet will allow easy conversion from LTC into fiat. This can only be good news for the altcoin which has fallen out of favour since its peak in mid-December.

Additionally Litecoin founder Charlie Lee has been active on Twitter again extolling the coin that he sold out of a couple of months ago. His references to a ‘flappening’ when the Litecoin market capacity over takes the Bitcoin Cash market cap have spurred further speculation.

Litecoin currently has a $12.6 billion market cap with BCH on $19.9 billion. It is traded predominantly on OKEx which has 28% of the total; $1.2 billion has changed hands in trade volume for LTC in the past 24 hours.

Other altcoins doing well this morning are Cardano, Icon and DigixDAO. Iota, Ethereum Classic and Nano have all fallen back over 5% from their recent rallies.

More on Litecoin can be found here: https://litecoin.com/

FOMO Moments is a section that takes a daily look at the top 25 altcoins during the Asian trading session and analyses the best performing one, looking for trends and fundamentals. 

When forks occur, which is quite often in crypto land, the original one tends to have a good run up. This is largely due to the promise of free equivalent tokens from the new fork to holders of the original. Traders want to get in both for the price boost of the first coin, and the added bonus of free crypto, whatever it is worth at the time.

When Litecoin hard forked on Sunday at block 1371111 Litecoin Cash was born. There was a fair bit of controversy leading up to the blockchain split as LTC founder Charlie Lee called it a scam. His own coin however finally awoke from weeks of down trending jumping from $154 on February 13 by almost 58% to $243 where it currently trades a week later today. Renewed interest in LTC is likely come from the upcoming launch of LitePay which enables businesses and merchants to accept payments in Litecoin which is faster and cheaper to send than Bitcoin.

Litecoin Cash Lifts Off

Litecoin Cash landed on the Russian crypto exchange Yobit in the early hours of Monday 19 where it was valued at around $1.20 per token. Since then the price has gone skywards to a high of $9.28 representing an increase of over 675% in its first 24 hours trading. In the past 12 hours it has corrected a little back to around $7.6 where it currently trades. According to Yobit the 24 hour volume at the time of writing is over $4.2 million which is higher than Bytecoin, Rchain, Electroneum, Maker, and Decred, all of which are in the top 50 chart with a market capacity over $500k.

Since most major crypto exchanges did not support LCC it is unlikely that many LTC holders actually claimed their free tokens as the process was convoluted and involved opening multiple wallets and exporting private keys. LCC has also yet to be listed on the analytics websites such as Coinmarketcap and Livecoinwatch.

It is currently too early to tell whether this is an initial pump and dump or Litecoin Cash has any legs. Without more exposure on more exchanges it is not going to get the influx of traders that it’s big and disapproving brother has. There have also been a number of posts on social media throughout the day from users experiencing technical issues with LCC wallets. Good news for Charlie Lee and co but maybe not so for the creators of Litecoin Cash who are still pushing out their next best thing in crypto land.

Cryptocurrencies have their moments, each day one will outshine the rest on the back of good news or a FOMO (fear of missing out) moment. Today Litecoin has been on a roll as a double whammy of news has awoken the crypto coin from a long slumbering down trend.

At the time of writing Litecoin is trading at just over $232 according to Livecoinwatch (including South Korean markets) which puts it around 28% higher than this time yesterday. This time last week the altcoin was hovering around $145 so its weekly increase is an even more impressive 60%. Litecoin has had a rough year plummeting from an all-time high of $370 just before Christmas to a low of $107 on the big February 6 dip. This is the first time the digital asset has shown solid gains in just under two months.

LitePay lights it up

According to CNBC, which is more accustomed to spreading FUD, Litecoin’s surge can be attributed to the launch of a new payments processor. LitePay, due for launch on February 26, will enable merchants and businesses in 41 countries including the US, UK, China, Japan and Germany to accept payments in Litecoin. It is a Visa-compatible system that converts Litecoin to dollars, which would enable users to use Litecoin anywhere Visa is accepted.

Additionally the Singapore registered non-profit Litecoin Foundation is also an investor in the new system. LitePay CEO Kenneth S. Asare told media;

“Our goal is to create a way for merchants to earn Litecoin, which is a particularly good crypto currency for payments,” 

In addition to LitePay, Coinbase recently launched a crypto payments app enabling merchants to receive the top digital currencies, including Litecoin.

Forking frenzy

Further interest in the once slow moving altcoin has come from an impending fork due around February 18 at block 1371111. When the chain splits holders of Litecoin have been promised 10 new Litecoin Cash tokens for every 1 LTC they have. There is a catch though which has raised concerns of a scam and drawn criticism from Litecoin founder Charlie Lee.

Usually blockchain forks are supported by the exchanges, as was the case with Bitcoin Cash, however this time there has been no mention of it. To claim free LCC is not easy and involves setting up multiple wallets and exporting and importing private keys which is highly insecure. Litecoin founders have warned users about the independent fork;

At the time of writing Litecoin’s market capacity stands at $12.8 billion, it has overtaken Cardano in the charts and is now the fifth most popular cryptocurrency. Over $2 billion has been traded in LTC over the past 24 hours, and it continues to rise on the long awaited good news.

FOMO Moments

As the first firecrackers of Chinese New Year ring out across the cities and towns of Southeast Asia the markets are looking good. Nearly all of the cryptocurrencies in the top 25 are in the green and Bitcoin has broken through the $9,500 barrier and is heading upwards during this morning’s Asian trading session. One altcoin has shown exceptional growth over the past couple of days and it is the stalwart Litecoin.

Litecoin is trading 30% higher over the past 24 hours according to Coinmarketcap. This time yesterday it was also up to $180 but today it has reached a monthly high of $233. Litecoin has never really recovered from it’s all time high and has been down trending since December 20. Several things have caused this including founder Charlie Lee selling his entire stash, though he claims this would reduce any conflict of interest should the altcoin go into any large partnerships.


The renewed interest is an upcoming fork in which Litecoin Cash will be created. Despite the divisions in the LTC community and Lee himself calling the new version a scam, Litecoin has skyrocketed. This usually happens when free tokens are distributed at the time of the blockchain fork. Litecoin Cash creators have dangled the digital carrot and promised LCC tokens at a ten to one ratio for LTC holders.  Feelings are mixed but something doesn’t ring right as to get these tokens users have to compromise the security of their wallet key.

Adding to the FOMO is the February 26 release of the LitePay service which will allow merchants to accept Litecoin has also revived interest in this crypto stalwart. LitePay is a Visa-compatible system that converts Litecoin to dollars, which would enable users to use Litecoin anywhere Visa is accepted.

As a result Litecoin has moved up the market cap chart to 5th place with a $12.8 billion capacity. Litecoin can be traded with fiat on many exchanges which has also increased its adoption. Around $2.6 billion has been traded in the past 24 hours and LTC continues upwards.

Other altcoins enjoying double digit positive momentum this morning are Iota, Monero, VeChain and OmiseGO.

More on Litecoin can be found here: https://litecoin.com/

FOMO Moments is a section that takes a daily look at the top 25 altcoins during the Asian trading session and analyses the best performing one, looking for trends and fundamentals. 

New research by citrix suggests that 50% of large UK businesses have accumulated a stockpile of digital currency in case of a ransomware attack — and just 7% are only stockpiling Bitcoin — the vast majority, 93%, are spreading their risk by investing in other digital currencies as well.

The research — commissioned by Citrix and carried out by OnePoll — is based on interviews with 750 IT decision makers in companies with 250 or more employees across the UK, to uncover the extent to which large British businesses are accumulating stores of digital currencies, the impact of the fluctuating price of digital currencies, and how organizations plan to keep these investments secure.


The poll revealed that 9/10 (90%) of respondents that do keep a ready stockpile of digital currency stockpile Bitcoin. While Bitcoin has proven extremely popular, the vast majority of these companies have also invested in additional digital currencies. More than half (54%) have bought Litecoin, but a significant proportion of these organizations have also invested in Ethereum (43%), Ethereum Classic (33%), Ripple (33%), and Dash (29%). In fact, as noted above, just 7% of large UK businesses are choosing to accumulate Bitcoin only.


While more UK companies are building a ready stockpile of digital currency — rising from 42% in 2016 to 50% in 2017 — the number of Bitcoin kept on standby has remained largely consistent: Large UK businesses now stockpile an average of 24 Bitcoin — only one more than the 2016 average.

This consistency in terms of the amount of Bitcoin kept on standby may reflect many organizations’ decision to cash in on fluctuating prices to make a profit. The poll uncovered that more than half (57%) of those companies stockpiling Bitcoin have sold some of their supply to make a profit. An additional 2/5 (38%) of these businesses are currently considering making a sale — leaving just 5% choosing to keep all their Bitcoin.


Almost 2/3 (64%) of those companies keeping a ready supply of Bitcoin believe that its inflated price has led cybercriminals to target their Bitcoin stockpile. In fact, large British businesses are very aware of the cyber threat to valuable Bitcoin wallets: Only 5% of organizations which stockpile the currency have not taken any steps to protect their Bitcoin reserves.

Of those which have made changes to secure their Bitcoin assets, more than half (52%) have used specific backup procedures. Popular security measures include: Using cold storage/offline storage (36%), moving to multiple wallets (36%), using a dedicated computer (35%), and using dual control (22%) — where multiple people are required to access the cryptocurrency.

Concerns: Value, Internal policy, and Security

More organizations are investing in digital currencies, yet its value is a key deterrent. More than 1/3 of large UK businesses polled cite concerns that the digital currency will crash (35%) and fluctuating prices (34%) as factors that discourage them from stockpiling digital currencies. Additionally, almost 1/5 (18%) are concerned that the business will not be able to cash the cryptocurrency in when required.

Organizational policies and uncertainty are also holding companies back. 1/3 (33%) admit that the fact they don’t have a policy on how to deal with digital currency as a type of company asset deters them from stockpiling a digital currency — while 31% pinpoint the lack of an assigned budget to use to purchase digital currencies as a discouraging factor. Security concerns are similarly rife. Almost 1/3 (31%) believe a stockpile of digital currency might make the business a target for cybercriminals, while almost 1/5 (18%) worry that it might put them at risk of insider theft.

Chris Mayers, Citrix chief security architect, sums up the findings as follows: “Initially many organisations were treating ransomware as a cost of doing business – just like shrinkage and fraud in some sectors – and building a stockpile of cryptocurrency to cover potential cyber ransoms. Yet this is changing as companies begin to embrace its potential as a revenue driver, as well as an alternative means to pay for staff and services. As British companies continue to build and diversify their cryptocurrency portfolios, vital security measures must be put in place to protect these reserves and ensure they can be used for a growing range of business processes instead of falling into criminal hands through ransom or theft.”