Blockchain Bites: Billionaire Bullish on Bitcoin, Updates on Fowler’s Crypto Capital Case and More

Another billionaire investor disclosed his bitcoin bags. The Silvergate Exchange Network added another exchange member. Riot Blockchain, a publicly traded bitcoin mining firm, recorded bumper revenues with plans to expand.

Top shelf

Billionaire’s bitcoin
Billionaire U.S. investor Stanley Druckenmiller, who just weeks ago was said to be shorting the dollar, is long on bitcoin. In a Monday CNBC appearance, Druckenmiller disclosed a bitcoin position significantly smaller than his gold horde. However, he predicts bitcoin will outperform gold in the long run – largely due to millennial and Silicon Valley attraction to the crypto scene. “Frankly, if the gold bet works the bitcoin bet will probably work better because it’s thinner, more illiquid and has a lot more beta to it,” he said. Drunkenmiller made headlines last week for his bearish views on the U.S. dollar, which he suspects will decline for the next three to four years.

Botched BSV
A protocol change in at least one Bitcoin SV (BSV) multisig wallet has crippled security and led to lost customer funds. Bitcoin Core developer Gregory Maxwell found that after BSV developers removed a proven transaction script and replaced it with an outdated version, one wallet manufacturer’s home-brewed hash function has serious security flaws. The ElectrumSV wallet’s so-called “accumulator multi-sig” function cancels transfers if more than the minimum number of keys sign a transaction and, perhaps more dangerously, enables anyone to access multi-sig funds “with too few signatures (such as none at all).” One BSV user, Aaron Zhou, lost 600 BSV to an attack exploiting this weakness.

Legal maneuvers
Lawyers are looking to ditch Reginald Fowler – accused of running a “shadow banking” service for cryptocurrency exchanges – as a client, according to court documents. Fowler and partner Ravid Yosef, who remains at large, stand accused of opening bank accounts with various financial institutions to illegally store…

Read More