TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. Bitcoin miners facing losses due to market selloff. MakerDAO system struggled with the recent market drop. Ethereum fees rose to $564,000 during the price drop. New York regulator asks for cryptocurrency firms to define plans to face coronavirus. BitMEX attributes downtime to DDoS attack, and US woman gets 13 year conviction for laundering money for ISIS using bitcoin.
Bitcoin Miners in Red After Selloff
Bitcoin miners in several parts of the world are facing losses now that cryptocurrency prices dropped to sub $7,000 levels, according to a report from Bloomberg. This could be even worse due to the fact that many miners were expecting price increases before the so-called “halvening” of mining reward. Chris Bendiksen, head of research of CoinShares, stated prices should be around $7,400 for mining to be profitable; but miners with new gear should be better equipped to survive this drop, the theory goes.
Maker Struggled With Ethereum Price Drop
@MakerDAO situation explainer thread ELI10 :
– 4.5M$ underwater due to auction fail
– Surplus Buffer of 500k eaten
Minting MKR is a seriously considered option.
Maker jargon in (), will try to use human words as much as possible
— Marc 'aDai is Money' Zeller (@lemiscate) March 12, 2020
Maker, one of the pillars of the DeFi movement and its stablecoin DAI, struggled to keep functioning correctly under extreme conditions the market experienced during the recent selloff. While Maker declared it is all under control, the malfunction of some price oracles caused more than 5 million DAI to be undercollateralized due to the event. Maker proposed a set of changes to amend the current state of their system and prevent situations like this in the future, which are being voted on.
Market Turbulence Causes Ethereum Fees to Skyrocket
The extraordinary fall the market suffered made fees of several cryptocurrencies skyrocket while users were competing to move funds. In the case of Ethereum, the second most important cryptocurrency, fees reached record levels, with ‘gas’ prices increasing tenfold compared to the day before. In total, Ethereum users paid $564,000 during March 12, the highest fee amount this year, and also the highest since February of last year.
New York Asks for Crypto Firms Plans to Deal With Coronavirus
The New York Department of Financial Services (NYDFS) issued a public letter directed to the CEOs of cryptocurrency-related firms requiring details about how they plan to deal with the coronavirus outbreak. These plans, at a minimum, should list a series of parameters defined by the NYDFS, including “preventative measures tailored to the institution’s specific profile and operations to mitigate the risk of operational disruption,” and an assessment of the assets that can be impacted by the outbreak.
BitMEX Denounces Repeated DDoS Attack Amidst Selloff
BitMEX, a notorious cryptocurrency exchange, announced today the downtime they experienced on March 12 during the cryptocurrency selloff was caused by a DDoS attack, raising eyebrows among customers. Bitmex stated they came “under an aggressive DDoS attack, which delayed and prevented requests to the platform,” but they were able to control the situation and regain control of the platform in less than 30 minutes. However, Twitter users signaled skepticism about the coincidence of this occurrence and cryptocurrency prices dropping.
US Woman Gets 13 Years for Funding ISIS With BTC
A US woman indicted back in 2017 for funding ISIS with BTC bought with swindled funds from financial institutions, was sentenced to spend 13 years in jail. Zoobia Shahnaz, from Long Island, took loans from banking institutions like American Express, Chase and Discover, and funneled these funds through Pakistan and other countries to ISIS. Shahnaz was facing a possible 110 year conviction, but the defense argued the funds were used “to heal the sick and care for the wounded,” as she was a volunteer in Syria.
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