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Ongoing Verge Issues Spell Problems for Pornhub Partnership

Even though a lot of people are still shocked that Pornhub actually took the plunge on Verge, it seems that decision may come back to bite the company. Due to the ongoing attacks against the Verge network, Pornhub and its cohorts are at risk of seeing transactions reversed or spoofed. It is a very big problem and an example of why solid technology should always be the foundation of any payment method.

Pornhub and Verge Have Issues

While one has to commend an entity such as Pornhub for accepting cryptocurrency payments, the decision to go with Verge still raises a lot of questions. The Verge network has faced multiple attacks in quick succession. The latest issue was uncovered earlier this week, as someone has successfully manipulated the network for the second time in a few months.

While Verge’s developers continue to claim this is an ongoing DDoS attack, that explanation remains highly questionable. Someone is clearly targeting the Verge network – and succeeding – but this is more of a mining attack than a DDoS attempt. Resolving these problems will remain a major headache for the time being. It is evident that Verge’s developers have a lot of work ahead of them.

Suprnova officials claim the attacker successfully forked the Verge blockchain – again – and is now spoofing fake transactions. This issue also affects the Pornhub platform, as its XVG transactions may be reversed or not confirmed at all. False timestamps on blocks can cause all kinds of annoying issues, especially when accepting XVG transactions with a minimal amount of confirmations.

Charlie Lee has stated that some Verge transactions are being reversed as we speak. Whether or not that is actually true, it is evident that things are not looking all that great as of right now. Pornhub could have easily partnered with a proper and established cryptocurrency, yet for some reason, it decided to go with Verge. This was done despite knowing about the network’s previous issues earlier this year.

While no one will deny there has been a lot of hype and excitement associated with Verge, its technology remains questionable at best. Suffering from two similar setbacks a few months apart is unacceptable. That’s especially true because the latest attack involved the same exploit as the previous one, and the developers – for some reason – decided not to fix that security gap. Any company associated with such an unstable project will face repercussions sooner or later.

For the time being, it remains to be seen how this uneasy situation will evolve. No one but the attacker benefits from this particular development, yet it seems the Verge developers are incapable of doing something about the current situation. It also seems members of the Verge community – often referred to as Vergins – are slowly turning their backs on this particular cryptocurrency after the most recent screw-up.

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FBI: “Call of Duty” Players Remotely Stole $3.3 Million in Cryptocurrencies

A group of “Call of Duty” players from Indiana are accused of stealing more than $3 million in cryptocurrencies after coercing an Illinois man to aid them in remotely hacking unsecured crypto wallets on more than 100 cell phones. Man Coerced Into Hack After SWATing Incident The episode began in Bloomington, Illinois, where a local man told the FBI he met the members of the would-be group of cybercriminals online playing Call of Duty. In the simulated warfare game, players are able to communicate with each other in real-time and with relative privacy. The group, based out of Dolton, Indiana, allegedly coerced the man from Bloomington into working for them using an intimidation tactic called “SWATing,” a nefarious, illegal, and dangerous phenomenon that has become increasingly popular in online gaming communities. SWATing is when police are called with a false report of a violent crime at someone’s home, which prompts a response from a SWAT team — oftentimes leading to door breaches, gunfire, and even the accidental deaths of unknowing victims. It’s often used as a decidedly dark method of payback, or, as in this case, to intimidate or threaten an individual. Afraid of further retaliation the man succumbed to the hacker’s requests, to which they handed over names, phone numbers, and other information that permitted him to remotely access the cell phones of their victims. According to the FBI affidavit, the man admitted to taking over the cell phones of more than 100 people. Once the group took over a phone, they were able to hack into a victim’s cryptocurrency account and drain their funds. The group is suspected of stealing at least $3.3 million in various cryptocurrency, including about $805,000 in Augur’s Reputation Tokens, according to the FBI. The suspects then allegedly moved stolen tokens through cryptocurrency networks, such as Ether or Bitcoin, to their own digital wallets. As of yet, the Chicago Sun-Times isn’t naming the suspects identified in the affidavit because they don’t appear to have been charged with any crimes. In an online interview the Bloomington man proclaimed his innocence — even going as far as to say that considers himself a victim: “I have done nothing but cooperate with Augur and the FBI,” he said. “I have never once profited from anyone [by] crypto-hacking, ever.” Crypto Thefts in First Half of 2018 Total Over $1.1 Billion According to recent study from cybersecurity firm Carbon Black, the total amount of cryptocurrency that has been stolen through cybercrime this year alone is over $1.1 billion — primarily through ransomware and exchange hacks. The firm’s report claims that many criminals are using the dark web to appropriate cryptocurrency from their victims, estimating that there are over 12,000 marketplaces with almost three times that number of crypto theft listings between them. Rick McElroy, security strategist at Carbon Black, spoke on the trend, noting how easy it is for cybercriminals to operate these days: “It’s surprising just how easy it is without any tech skill to commit cybercrimes like ransomware… It’s not always these large nefarious groups, it’s in anybody’s hands.” Part of the reason for this is the accessibility and user-friendliness of the tools of the trade. McElroy said that certain pieces of malware even come with customer service to aid would-be cybercriminals, adding that the malicious software costs an average of $224 but can be picked up for as little as $1.04. Many of the attacks against crypto users, companies, and exchanges originate from an organized group of criminals like those out of Indiana, however, McElroy says, they’re just as likely to be the product of a trained engineer who is out of work: “You have nations that are teaching coding, but there’s no jobs… It could just be two people in Romania needing to pay rent.” Image from Shutterstock The post FBI: “Call of Duty” Players Remotely Stole $3.3 Million in Cryptocurrencies appeared first on NewsBTC.

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