Islamic militants based in the Middle East used bitcoin (OTCQB:BTCS, COIN) and online-payment services such as PayPal (NASDAQ:PYPL) to fund terrorist activities in Indonesia, WSJ reports.
"They used virtual money because that would make it harder for us to track the transaction," according to the country's financial-transactions agency, but it didn't disclose the amount that had been sent.
The big bull market in Bitcoin (OTCQB:BTCS, COIN) reverses sharply this morning, with the crypto-currency down nearly 18% in just the last hour and now selling at $886. Earlier today, it was changing hands at nearly $1,115.
The crypto-currency kicked off 2017 by jumping above $1,000 for the first time in three years, having outperformed all central-bank-issued currencies with a 125% climb in 2016.
Bitcoin (OTCQB:BTCS, COIN) may have been boosted in the past year by increased demand in China on the back of a 7% annual fall in the value of the yuan, the currency's weakest showing in over 20 years.
The price of Bitcoin (COIN, OTCQB:BTCS) has just topped $900, taking its gain this year to 107%, beating every major currency, stock index and commodity contract in 2016.
The last time it was at such levels was in January 2014, when the cryptocurrency was tumbling from its record price of $1,137 following the implosion of the MtGox exchange and tightening Chinese controls.
New York's financial regulator had sights set on becoming a global hub for bitcoin (COIN, OTCQB:BTCS) when it adopted trailblazing virtual currency rules last year, but the state lost momentum when the agency's chief left, putting a licensing process in limbo.
Since then, the Department of Financial Services has issued just two BitLicenses, according to a spokesman. Another 15 applications are still pending, with four others withdrawn and four denied.
There's some good news out of the U.K. for Bitcoin (COIN, OTCQB:BTCS) after the Gambling Commission decided to add BTC to its list of accepted payments methods.
CalvinAyre.com's Rebecca Liggero says online gaming operators could benefit from the development.
"Its possible to receive a payout in Bitcoin as a player or an affiliate and convert it instantly into the fiat currency of choice, meaning you don’t even need a Bitcoin wallet or knowledge of how Bitcoin works in order to use it," writes Liggero.
Bitfinex's plan to impose losses on all its trading clients for the theft by hackers of $72M in Bitcoin (COIN, OTCQB:BTCS) and be granted "BFX tokens" rests on two flawed pillars, according to lawyers.
Imposing losses on customers who were not hacked appears to go against the company's terms of service, said Ryan Straus, a Fenwick & West lawyer.
The exchange's tokens could also be problematic, said Zach Zweihorn, a lawyer at DavisPolk.
The U.S. government plans to auction over 2,700 bitcoin (COIN, OTCQB:BTCS) that were forfeited during several cases, including the prosecution of the creator of the online black market known as Silk Road.
The online auction would be held on Aug. 22, and that potential bidders must register by Aug. 18. According to Bitstamp exchange, the bitcoin are worth nearly $16.1M.