WannaCry

rs

Dagobah Resident
It finally hit me this morning. This ransomware attack, originally designed by NSA, is a false flag attack. The purpose is to create a situation so dire, that the whole world bands together to ban Bitcoin. Governments issue fiat currency, which means they are free to manipulate it for their own purposes. Bitcoin is a "curency" governments cannot influence or manipulate. Given that the Iraq war was started because Sadam Hussein had a true "weapon of mass destruction" i.e. he threatened to accept payment for oil only in Euros, governments, particularly the US, will clearly be willing to initiate such an attack to destroy Bitcoin.

Mark my words...
 
Sounds plausible. I had the thought that it was a kind of testing of the malware that the NSA etc (or some deep state faction thereof) has to target other nations to 'bring them to heel'. In that sense, it may have been a warning shot along the lines of 'this is what we can do', complete with blaming it on two-bit hackers looking for some cash. :rolleyes:

But I see the bitcoin angle too. We'll have to see what happens to bitcoin.
 
If WannaCry is a NSA creation, is this report of a US cyber security company (FireEye) linking a Vietnamese government hacker group (APT32) to cyber-espionage hacking, throwing a stone in the opposite direction, taking the heat off of the NSA?

According to an US cybersecurity company, a group of hackers allegedly linked to the Vietnamese government have targeted transnational companies, foreign governments, journalists and others in a cyberattack.

Vietnamese Government Allegedly Involved in Cyberattacks on Foreign Companies
https://sputniknews.com/world/201705151053627929-government-vietnam-cyberattacks/

A group of hackers allegedly linked to the Vietnamese government have targeted transnational companies, foreign governments, journalists and others in a cyberattack, the motive behind which was espionage, US cybersecurity company FireEye said in a report.

“Based on incident response investigations, product detections, and intelligence observations along with additional publications on the same operators,
FireEye assesses that APT32 is a cyber-espionage group aligned with Vietnamese government interests. The targeting of private sector interests by APT32 is notable and FireEye believes the actor poses significant risk to companies doing business in, or preparing to invest in, the country,” the report, published on Monday, reads.

According to the report, Vietnamese, US, Philippine and European companies fell victim to the attacks by the so-called APT32 group (also known as the OceanLotus Group) from 2014 to 2017.

In response to the FireEye’s report, Hanoi refuted the allegations and denied its involvement in any kind of the cyber espionage.

The Government of Viet Nam does not allow any form of cyber-attacks against organizations or individuals … All cyber-attacks or threats to cybersecurity must be condemned and severely punished in accordance with regulations and laws," the Vietnamese Foreign Ministry’s spokesperson said, as quoted by the CNBC broadcaster.

In April, the international police cooperation agency Interpol said that its anti-cybercrime operation in Southeast Asia showed that around 270 websites in the region, among them several government portals with information on citizens, were laden with a malware code.

According to Interpol, almost 9,000 command and control servers in eight member states of the Association of Southeast Asian Nations (ASEAN), which Vietnam is a part of, were compromised through ransomware, DDoS attacks and spam.


Institutions of the European Union have not been affected by recent global cyberattacks, the European Commission's spokesman, Margaritis Schinas, said Monday.

No EU Institution Hit by Global Cyberattack
https://sputniknews.com/science/201705151053624993-eu-global-cyberattack/

According to Schinas, the European Commission has received no reports from any of the EU institution or agency on the attacks.

Last Friday, the Kaspersky Lab IT company registered about 45,000 ransomware attacks in 74 countries worldwide, with the largest number of targets in Russia. The company reported that the attack was carried out with the use of ransomware dubbed WannaCry. The malicious software has reportedly infected computers in up to a hundred countries and tried to extort users' money.

On Sunday, Europol Executive Director Rob Wainwright said that the global cyberattack may continue on Monday. According to Wainwright, the attack affected 200,000 users in 150 countries, including businesses and large corporations.

According to Microsoft, the ransomware, which was used in a recent major cyberattack, originated in the United States.


A government structure is unlikely behind the recent ransomware cyberattacks across the world, former CIA Deputy Director Michael Morell stated in an interview on Monday.

Global Cyberattack Unlikely State Sponsored - Ex-CIA Chief
https://sputniknews.com/science/201705151053638030-globa-cyberattack-cia-morell/

Morell stated that the recent cybercrime was the largest in history.

"I don't think this was a nation state. I think this was organized crime, I think this was cybercrime," Morell told CBS News. "They're demanding ransom in order to free up the data that they're encrypting, I think that underscores that."

Earlier on Monday, US President Donald Trump’s Homeland Security Adviser Tom Bossert said he does not rule out that a state actor can be behind cyberattacks.

However, the Microsoft said earlier in the day that the current virus originates from that developed by the NSA.


Cybercriminals of the recent major ransomware attack that affected dozens of countries gathered more than $42,000 from users, media reported Monday.

Perpetrators of Friday Worldwide Cyberattack Extorted Over $42,000
https://sputniknews.com/science/201705151053624825-cyberattack-perpetrators-money/

According to The Times newspaper, the money has not been withdrawn from the accounts that victims of the cyberattack were asked to send money from in the form of bitcoin cryptocurrency, while law enforcement authorities continue to monitor the accounts.

The UK National Crime Agency reportedly cooperates with the Europol and the UK Government Communications Headquarters’ National Cyber Security Centre in tracing the hackers.

According to security officials, the attack was more likely performed by criminals rather than sponsored by a state, the newspaper specified.

Since Friday, 200,000 computers across 150 countries were hit by the ransomware cyberattacks, according to the Europol.


The ransomware, which was used in a recent major cyberattack, originated in the United States thus it is strange to hear accusations of Russia's alleged involvement in the attack, Russian President Vladimir Putin said Monday.

Russia Not Involved in Recent Major Cyberattack, Ransomware Originated in US
https://sputniknews.com/politics/201705151053623712-ransomware-cyberattack-putin/

The hacker attack] is a matter of concern. As for the source of those threats, in my opinion, the Microsoft authorities clearly stated… that the special services of the United States were the primary source of this virus. Russia has nothing to do with it. I am surprised to hear anything else in these circumstances," Putin said at a press conference at the end of his visit to China.

Putin stressed that the current situation served as a good example of searching for someone guilty in a wrong place.


There have been no new WannaCry ransomware attacks so far but the risk still remains, the UK National Crime Agency said Monday.

Risk of New WannaCry Ransomware Attack Persists - UK National Crime Agency
https://sputniknews.com/science/201705151053635475-risk-wannacry-attack-uk/

"We haven’t seen a second spike in #WannaCry #ransomware attacks, but that doesn’t mean there won’t be one," the agency wrote on its Twitter account.

Malicious software, called WannaCry, affected, among other institutions and organizations, the UK public health system NHS, the German state rail company Deutsche Bahn, the Russian Interior Ministry and banks.

The virus blocked computers with messages flashing on the screen demanding money to remove the restriction.


In the aftermath of the global WannaCry ransomware attack, which has spread around the globe like wildfire, a significant number of corporations and public services have found their infrastructure grinding to a halt, unable to operate with unprotected if mission-critical computers taken offline indefinitely. Some of the more prominent examples so far include:

Bank of China ATMs Go Dark As Ransomware Attack Cripples China (Photos - Tweets - Video)
http://www.zerohedge.com/news/2017-05-13/bank-china-atms-go-dark-ransomware-attack-slams-china

NHS: The British public health service - the world's fifth-largest employer, with 1.7 million staff - was badly hit, with interior minister Amber Rudd saying around 45 facilities were affected. Several were forced to cancel or delay treatment for patients.

◦Germany's Deutsche Bahn national railway operator was affected, with information screens and ticket machines hit. Travelers tweeted pictures of hijacked departure boards showing the ransom demand instead of train times. But the company insisted that trains were running as normal.

◦Renault: The French automobile giant was hit, forcing it to halt production at sites in France and its factory in Slovenia as part of measures to stop the spread of the virus.

◦FedEx: The US package delivery group acknowledged it had been hit by malware and said it was "implementing remediation steps as quickly as possible." .

◦Russian banks, ministries, railways: Russia's central bank was targeted, along with several government ministries and the railway system. The interior ministry said 1,000 of its computers were hit by a virus. Officials played down the incident, saying the attacks had been contained.

◦Telefonica: The Spanish telephone giant said it was attacked but "the infected equipment is under control and being reinstalled," said Chema Alonso, the head of the company's cyber security unit and a former hacker.

◦Sandvik: Computers handling both administration and production were hit in a number of countries where the company operates, with some production forced to stop. "In some cases the effects were small, in others they were a little larger," Head of External Communications Par Altan said.

One place which seemed to have emerged relatively unscathed from the global cyber-havoc (aside from the US, which is ironic as it is the U.S. NSA that was created the hacking software) has been China. Or so it seemed due to lack of media reports from the mainland. Now, courtesy of 95cn.org, and its twitter account, we have the first visual evidence that China too was materially impacted, to the point where not only local ATMs had been taken offline, but Chinese traffic police, immigration authorities and various public security bureaus and schools have suspended normal work until the malware threat is resolved.

Various Chinese traffic police, immigration authorities and Public Security Bureaus were forced to suspend normal work:

A map of the attacks shows that in addition to China, South Korea and Japan have also been seriously impacted. North Korea, however, has managed to squeeze through the cracks so far, perhaps due to the lack of local internet connectivity.

Finally, for those interested, here is a video courtesy of @hackerfantastic showing what realtime WannaCry infection looks like.

For now it is unclear what if any economic impact this "Biggest Ransomware Attack In History" will unleash on the world. Whatever the final outcome, don't forget to thank the NSA, whose product made all this possible, and which was warned by numerous skeptics, about just this eventuality.


The Wikileaks founder warned the world to update its digital security systems. He was ignored and this is the result.

Worried about ‘WannaCry’? You should have listened to Julian Assange
http://theduran.com/worried-about-wannacry-you-should-have-listened-to-julian-assange/

A widespread computer virus attack known as ‘WannaCry’ has been compromising computers with obsolete operating systems across the world.
This should be the opening sentence of just about every article on this subject, but unfortunately it is not.

The virus does not attack modern computer operating systems, it is designed to attack the Windows XP operating system that is so old, it was likely used in offices in the World Trade Center prior to September 11 2001, when the buildings collapsed. Windows XP was first released on 25 August, 2001.

Furthermore, early vulnerabilities in modern Windows systems were almost instantly patched up by Microsoft as per the fact that such operating systems are constantly updated.

The obsolete XP system is simply out of the loop.

A child born on the release date of Windows XP is now on the verge of his or her 17th birthday. Feeling old yet?

With the amount of money governments tax individuals and private entities, it is beyond belief that government organisations ranging from some computers in the Russian Interior Ministry to virtually all computers in Britain’s National Health Service, should be using an operating system so obsolete that its manufacturer, Microsoft, no longer supports it and hasn’t done for some time.

The scathing reality of this attack is that Julian Assange warned both private and public sectors to be on guard against known vulnerabilities in such systems, vulnerabilities Wikileaks helped to expose. Assange even offered to help companies to get their digital security up to date.

The fact that Assange’s plea fell on deaf ears must bring further shame to all those impacted by the ‘WannaCry’ attacks who refused to listen to Assange and get with the times.

As it is, the technology used in the hacking/malware incident was created by America’s National Security Agency (NSA).

World famous whistle-blower Edward Snowden had something to say about that, If NSA builds a weapon to attack Windows XP—which Microsoft refuses to patches—and it falls into enemy hands, should NSA write a patch?

The fact is that, if only governments and mega-corporations took precautions to ensure actual safety measures were in place, rather than engaging in bogus fear-mongering in order to conceal their own incompetence and lack of modern technology, the people that such bodies are supposed to protect would be safe rather than misled and exposed to threats.

The blame for today’s attack can and should be equally shared by the hackers themselves and by those who patently ignored the warnings of Julian Assange, who advised the wider world to get clever, get secure and get modern upon the release of Vault 7 by Wikileaks.

When there is a wolf at your door, it is unwise to blame the person pointing out the presence of the hungry wolf. Those who attack Julian Assange for pointing out the wolf of un-secured computer systems are doing just that.
 
Joe said:
Sounds plausible. I had the thought that it was a kind of testing of the malware that the NSA etc (or some deep state faction thereof) has to target other nations to 'bring them to heel'. In that sense, it may have been a warning shot along the lines of 'this is what we can do', complete with blaming it on two-bit hackers looking for some cash. :rolleyes:

But I see the bitcoin angle too. We'll have to see what happens to bitcoin.

This was reported on April 22, less than a month ago and I wonder if it might have something to do with this WannaCry?

Five Eyes spying alliance reportedly gather in NZ for secret surveillance conference
https://www.rt.com/viral/385722-five-eyes-spying-alliance/

Officials from some of the top international government spy agencies have flocked to New Zealand’s Queenstown for a secretive meeting of the Five Eyes spying alliance between the US, UK, Australia, Canada and New Zealand.

The secretive meeting is expected to bring FBI director James Comey and CIA chief Mike Pompeo together with the top officials from the Australian, Canadian, UK and New Zealand intelligence and security agencies.

The Five Eyes alliance is a surveillance-sharing alliance between the five English-speaking allies dating back more than 70 years. It is currently comprised of the US’s National Security Agency (NSA), the UK’s Government Communications Headquarters (GCHQ), Canada’s Communications Security Establishment Canada (CSEC), the Australian Signals Directorate (ASD), and New Zealand’s Government Communications Security Bureau (GCSB).


This publication series is about specific projects related to the Vault 7 main publication.

AfterMidnight
https://wikileaks.org/vault7/#AfterMidnight

Today, May 12th 2017, WikiLeaks publishes "AfterMidnight" and "Assassin", two CIA malware frameworks for the Microsoft Windows platform.

"AfterMidnight" allows operators to dynamically load and execute malware payloads on a target machine. The main controller disguises as a self-persisting Windows Service DLL and provides secure execution of "Gremlins" via a HTTPS based Listening Post (LP) system called "Octopus". Once installed on a target machine AM will call back to a configured LP on a configurable schedule, checking to see if there is a new plan for it to execute. If there is, it downloads and stores all needed components before loading all new gremlins in memory. "Gremlins" are small AM payloads that are meant to run hidden on the target and either subvert the functionality of targeted software, survey the target (including data exfiltration) or provide internal services for other gremlins. The special payload "AlphaGremlin" even has a custom script language which allows operators to schedule custom tasks to be executed on the target machine.

"Assassin" is a similar kind of malware; it is an automated implant that provides a simple collection platform on remote computers running the Microsoft Windows operating system. Once the tool is installed on the target, the implant is run within a Windows service process. "Assassin" (just like "AfterMidnight") will then periodically beacon to its configured listening post(s) to request tasking and deliver results. Communication occurs over one or more transport protocols as configured before or during deployment. The "Assassin" C2 (Command and Control) and LP (Listening Post) subsystems are referred to collectively as" The Gibson" and allow operators to perform specific tasks on an infected target..
 
rs said:
It finally hit me this morning. This ransomware attack, originally designed by NSA, is a false flag attack. The purpose is to create a situation so dire, that the whole world bands together to ban Bitcoin. Governments issue fiat currency, which means they are free to manipulate it for their own purposes. Bitcoin is a "curency" governments cannot influence or manipulate. Given that the Iraq war was started because Sadam Hussein had a true "weapon of mass destruction" i.e. he threatened to accept payment for oil only in Euros, governments, particularly the US, will clearly be willing to initiate such an attack to destroy Bitcoin.

Mark my words...

By The Dollar Vigilante: Published on May 18, 2017

WannaCry Ransomware Virus Is a Globalist False Flag Attack On Bitcoin
https://www.youtube.com/watch?v=Y59JCXc0o2k (4:44 min.)
 
rs said:
It finally hit me this morning. This ransomware attack, originally designed by NSA, is a false flag attack. The purpose is to create a situation so dire, that the whole world bands together to ban Bitcoin. Governments issue fiat currency, which means they are free to manipulate it for their own purposes. Bitcoin is a "curency" governments cannot influence or manipulate. Given that the Iraq war was started because Sadam Hussein had a true "weapon of mass destruction" i.e. he threatened to accept payment for oil only in Euros, governments, particularly the US, will clearly be willing to initiate such an attack to destroy Bitcoin.

Mark my words...

I think this is a plausible motive as well. A digital 9/11, if you will. Sometimes I wonder if Bitcoin and other cryptocurrencies (Monero / XMR) kind of slipped under the radar and are proving to be more effective than the PTB expected. This may be yet another example of the ol' "If you can't beat it, slander it" technique they enjoy using.
 
I remember a good blog post from a couple years back, I believe its by a bitcoin developer but I forget.

https://lifeboat.com/blog/2013/04/bitcoins-dystopian-future

This part is particularly relevant.
The Bleak Future of Law Enforcement

This is where things get really bleak. Currently distributed currencies facilitate money laundering, black market commerce (the Silk Road), and insider trading (TorBroker). These applications in their current form are just a snowflake on the tip of the iceberg. Not only will they get MUCH bigger, but we will see applications which are much less savory. Historically, the “Dark Net” accessible by Tor and private networks has been nothing more than a hidey-hole for illegal files and a hangout for paranoid schizophrenics, but it is quickly becoming the platform of choice for large-scale illegal commerce.

For this thought experiment, we will imagine that your child has been kidnapped and put up for sale on “TorSlaver”. Their business plan is to kidnap children and sell them to the highest bidder, whether parent or pedophile. The winning bidder is sent the location of the child, probably bound and gagged and dumped somewhere. As long as they don’t get caught doing the kidnapping, the kidnappers can do this again and again with complete impunity. Once someone proves it can be done, copycats will come out of the woodwork, and it won’t matter if the first mover gets caught.

As a parent of three small children, I cannot describe to you how awful this makes me feel. I have always been a very reluctant bitcoin investor, for this very reason. I don’t invest in bitcoin because I think it will bring about a happy utopian world. Quite the opposite. I invest in bitcoin because the rise of distributed currency is inevitable, and owning some bitcoins seems to be the best way to prepare for the chaos ahead. And just maybe, if I position myself correctly, I can make things a little less awful.

The Government Strikes Back

Does anyone really expect the government to sit back quietly and watch while their currency is debased, terrorism is funded, and children are kidnapped? The only question is when and how they will strike back against these forces. While the government does have a lot of options, ultimately those options only slow things down. At some point, we collectively with our governments face a difficult choice between trying to survive this deadly storm or attempting to destroy all decentralized computer networks (including the internet). The former seems unthinkable, the latter, impossible.

I wouldn’t be surprised if this chaos gives rise to a strong, centralized, one-world government which gets its revenues by tightly reigning in freedom of commerce in order to collect taxes. For instance, I will not be surprised to see a requirement someday that every person buying or selling have an implant which tightly binds their identity to the sale. Perhaps the implant will even be located on the back of the right hand or the forehead! This may seem repugnant to you now, but wait until you have lived in the storm for a while before you call it impossible. The natural reaction to the deadly chaos of decentralized currency is for the populace to embrace increasingly centralized controls on commerce. The battle lines are only just starting to be drawn, and your guess is as good as mine for how it will play out.

If you just think about bitcoin as a bank where every user is anonymous and anyone can send and withdraw any amount of funds, you can see there is a lot of problems.
 
An international assault on computer users provides a illuminating vehicle for interpreting the dubious political and economic constructs, presented by corporate news media as unambiguously real. In this instance closer consideration of the event’s reportage and context suggest an intent to undermine and confuse public interest in the burgeoning cryptocurrency space. The WannaCry cyberattack follows a decade of commodity price manipulation by central bankers necessary to support the value of fiat currencies amidst profligate money creation.

WannaCry Cyberattack: Deep State Assault on Cryptocurrencies?
http://www.globalresearch.ca/wannacry-cyberattack-deep-state-assault-on-cryptocurrencies/5591112

The recent price explosion across a wide swath of virtual currencies is the exact opposite of the stagnation experienced in precious metals–specifically gold and silver–the traditional measures of fiat currencies’ true worth. This sharp contrast augments theories of central bank manipulation of the metals markets that seek to preserve the US dollar especially against the accelerated inflationary policies instituted over the past decade.

Quantitative Easing is a threat to the dollar’s exchange value,” Paul Craig Roberts and David Kranzler write in a key 2014 article. “The Federal Reserve, fearful that the falling value of the dollar in terms of gold would spread into the currency markets and depreciate the dollar, decided to employ more extreme methods of gold price manipulation.” As the authors explain alongside a compelling array of data,

The Fed’s gold manipulation operation involves exerting forceful downward pressure on the price of gold by selling a massive amount of Comex gold futures, which are dropped like bombs either on the Comex floor during NY trading hours or via the Globex system. A recent example of this occurred on Monday, January 6, 2014. After rallying over $15 in the Asian and European markets, the price of gold suddenly plunged $35 at 10:14 a.m. In a space of less than 60 seconds, more than 12,000 contracts traded – equal to more than 10% of the day’s entire volume during the 23 hour trading period in which which gold futures trade.

There was no apparent news or market event that would have triggered the sudden massive increase in Comex futures selling which caused the sudden steep drop in the price of gold. At the same time, no other securities market (other than silver) experienced any unusual price or volume movement. 12,000 contracts represents 1.2 million ounces of gold, an amount that exceeds by a factor of three the total amount of gold in Comex vaults that could be delivered to the buyers of these contracts.

The absence of derivatives in most cryptocurrency markets makes these digital assets (and the perpetual computational power necessary to affirm their blockchain presence) impervious to price suppression via futures contracts used by central bankers and their agents.

With the above in mind, there is indeed a distinct possibility that WannaCry’s deployment and far-reaching publicity constitute a desperate attempt to undermine public interest in the rapidly-expanding crypto space.

On May 12 hundreds of thousands of computers utilizing Microsoft’s operating system were struck with a “ransomware” virus encrypting users’ data and offering to unlock it in exchange for $300 USD. The apparent pandemonium is related by major financial news publications, including the Wall Street Journal.

The cyberattack that spread around the globe over the weekend, hitting business, hospitals and government agencies in at least 150 countries, is likely to keep growing as people around the world return to work, law enforcement authorities warned.

The identical software vulnerability the WannaCry culprits employed was, perhaps not coincidentally, secretly developed by the US National Security Agency and leaked online by an anonymous entity calling itself Shadow Brokers. While Microsoft promptly issued a remedy, countless computers lacking the “patch” remained vulnerable.

At the core of this narrative is the fact that WannaCry attackers demanded the $300 ransom in Bitcoin, the most well-known and highly valued of the cryptocurrencies, oft-identified by prominent financial spokespersons and news outlets with drug smuggling and terrorism. “The Justice Department has successfully prosecuted online criminal operations that used bitcoin,” the Washington Post instructed in a piece reminding its readers of Bitcoin’s nefarious history. “In 2013, the government arrested Ross Ulbricht, the founder of a major underground drug market, and seized more than $3.5 million worth of bitcoin.”

When an event transpires and quickly gains traction via abundant and sensational news coverage, while tending to convey a certain uniform impression, there is a strong possibility of deep state agendas and objectives at play. As the late journalist and author Udo Ulfkotte observed, today more than ever intelligence agencies exert direct influence over what is proffered as “responsible” reportage and opinion. Much as Soviet citizens resorted to detecting truth between the lines of reports from a party-controlled press, so it has become necessary to place contemporary phenomena in a broader context.

Along these lines news outlets serving the cryptocurrency enthusiasts quickly found contradictions in the mainstream account built around WannaCry, noting how the incident was likely intended to serve Western financial elites by implicating Bitcoin in the cyberattack, thereby causing retail investors to vacate their positions. Indeed, in the event’s immediate prelude the fiat valuation of the entire crypto space more than doubled, from $25.5 billion on April 15 to $53.65 billion on May 11.

“One has to suspect this is a big ploy by the US government led by the [Securities and Exchange Commission] and other concerned parties to discredit Bitcoin, by association,” CoinTelegraph argued.

It is overwhelmingly a ploy especially given the SEC’s position as they are those who are pushing the [European Union] and [European Central Bank] to begin blocking users of cryptocurrency, in a vague attempt to regulate it, to control it, to scare people off.

If WannaCry is in fact an attempt to keep the public from using Bitcoin and its crypto peers, as is suggested by broad media attention, it appears to have been a colossal failure. As of this writing the valuation of all cryptocurrencies is approaching $70 billion USD. The week of May 15 has seen new records set by not only Bitcoin, but several of its peers, including Ethereum, Dash, Ripple, NEM and Monero.

In light of 9/11 and the continuum of often suspicious terror incidents punctuating the West’s “War on Terror” mainstream news media persist in matter-0f-factly accepting and promoting dubious events at face value, shorn of almost any historical, political, or economic context.
 
If you bought $100 of bitcoin 7 years ago, you'd be sitting on $72.9 million now after new record high
https://www.yahoo.com/finance/news/bought-100-bitcoin-7-years-081422112.html

Monday marks the seven-year anniversary of Bitcoin Pizza Day – the moment a programmer named Laszlo Hanyecz spent 10,000 bitcoin on two Papa John's pizzas.

More important than the episode being widely recognized as the first transaction using the cryptocurrency is what it tells us about the bitcoin rally that saw it break through the $2,100 mark on Monday.

Bitcoin (Exchange: BTC=-USS) was trading as high as $2,185.89 in the early hours of Monday morning, hitting a fresh record high, after first powering through the $2,000 barrier over the weekend, according to CoinDesk data.

On May 22, 2010, Hanyecz asked a fellow enthusiast on a bitcoin forum to accept 10,000 bitcoin for two Papa John's Pizzas. At the time, Hanyecz believed that the coins he had "mined" on his computer were worth around 0.003 cents each.

Bitcoin mining involves solving a complex mathematical solution with the miner being rewarded in bitcoin. This is how Hanyecz got his initial coins.

The cryptocurrency has many doubters as it continues to be associated with criminal activity, but it has still seen a stunning rally. Here are two facts, on Bitcoin Pizza Day, however, that highlight this:

While being worth $30 at the time, Hanyecz pizzas would now cost $21.8 million at current bitcoin prices
If you bought $100 of bitcoin at the 0.003 cent price on May 22, 2010, you'd now be sitting on around $72.9 million

A number of factors have been driving the rally:

Recently passed legislation in Japan that allows retailers to start accepting bitcoin as a legal currency has boosted trading in yen, which now accounts for over 40 percent of all bitcoin trade.

Political uncertainty globally has driven demand for bitcoin as a safe haven asset
A debate within the bitcoin community about the future of the underlying technology behind bitcoin known as the blockchain has been taking place. There was fear at one point this could lead to the creation of two separate cryptocurrencies but those worries have largely subsided with an alternative, more palatable option now being put forward.

For an in-depth look at the factors driving bitcoin, click here.

Bitcoin has rallied over 117 percent year to-date.
 
US Congresswoman Kathleen Rice has introduced a bill tasking Homeland Security with conducting a threat assessment for terrorists using virtual currencies such as Bitcoin, despite evidence terrorist groups use such payment methods is scant. A cybersecurity expert has told Sputnik the real fear is Bitcoin supplanting national currencies.

No Evidence: US Pushes for Investigation Into Terrorist Use of Virtual Currency (Video)
https://sputniknews.com/science/201705221053868044-bitcoin-terrorism-crime-funding/
https://www.youtube.com/watch?v=Ryz-pXbsojU (1:58 min.)

The Homeland Security Assessment of Terrorists' Use of Virtual Currencies Act was passed May 18. If signed into law by President Donald Trump, the DHS will work with other federal agencies to investigate whether terrorists use virtual currencies, or receive funding with them. The assessment would be completed within 120 days of the Act passing, and the results shared with state and local law enforcement agencies. Rice is a high profile Democrat in the House Counterterrorism and Intelligence Subcommittee.

​While it has repeatedly been claimed terror groups such as Daesh use Bitcoin extensively — the European Union announced plans to crack down on the virtual currency following the 2015 Paris attacks — little evidence has been forthcoming to suggest this is meaningfully the case. A pertinent question may be why Daesh would need to use the currency, given the group has an established history of funding its operations via the sale of oil to countries such as Turkey, netting millions of dollars daily in the process.

Two separate reports — one produced in 2015 by the UK Treasury, another in 2017 by the Royal United Services Institute — have both concluded terror groups do not generally use virtual currencies, and are much more likely to fund their activity using easily accessible financial services (including student and payday loans, public benefits, and cash).

"Available information on terrorists' use of cryptocurrencies is limited and anecdotal. In June 2015, the US charged a Daesh supporter for posting on Twitter about how others might use Bitcoin to fund the terror group — however, there is no indication actual transfers took place. In August 2016, a former CIA analyst published findings identifying a Palestinian media organisation, Ibn Taymiyyah — labelled by the US as having terrorist connections — as receiving small-value Bitcoin donations. Otherwise, the record is unspecific and speculative," the latter concluded.

Moreover, a spokesperson for Rice even admitted demonstrable examples of terrorists using Bitcoin and the like were limited to a "few instances" and "not widespread," although these examples are recent, perhaps suggesting terrorist groups — much like most virtual currency holders — are relatively new converts to the Bitcoin cause, if at all.

Dr. Kevin Curran, Professor of Cybersecurity at Ulster University, is likewise skeptical of Bitcoin's insurrectionary connections — for the time being, at least.

"Daesh and others favor the greenback. Bitcoin's price volatility against other currencies makes the system very risky for terrorist groups — it's a payment method that could lose half its value in a day. We cannot say terrorist cells are using Bitcoin to a large degree," Dr. Curran told Sputnik.

Nonetheless, he notes the anonymity of Bitcoin does make it attractive for criminals. It is demonstrably the favored payment method of choice for illicit drugs and child pornography bought via the dark web for this reason — transactions can be tricky for law enforcement agencies to track. Moreover, ransomware attacks — such as WannaCry — can be facilitated via cryptocurrencies, and denial of service strikes.

Nonetheless, Bitcoin's anonymity is not complete — if an attack is suitably big, and law enforcement agencies have enough power behind them, cybercriminals using Bitcoin can be tracked down — when individuals convert their Bitcoins to real world currencies, they use regulated exchanges, and larger withdrawals can be detected.

Nonetheless, Dr. Curran believes it's an "obvious" next step for terrorists to use Bitcoin. While the majority of individuals using Bitcoin presently are "speculators or geeks," due to relatively high technological barriers to entry, it's becoming ever-easier for lay users to master — and as it can be used for so many purposes, criminal elements are increasingly waking up to its potential.

"We will see an increase in terrorist groups using it as more and more members of the public use it. More people know about it, more and more websites accept it as a payment method, it's becoming increasingly pervasive in the digital world. It can be used for good or bad, but I hope it'll become a universal currency. There is no central authority with Bitcoin — no banks or financial organizations control it, the people who own it do — and users can bypass a lot of financial services fees as a result," he adds.

Still, Dr. Curran believes there's "no doubt" Bitcoin will be the currency of the internet in years to come. It will become more regulated, and politicians will progressively view it as a threat to mainstream financial institutions and currencies as it becomes further accepted. Moreover, he's certain it'll be difficult if not impossible for governments to truly put a stop to it — the internet has no borders, and national bans won't be effective.
 
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