Blockchain Bites: BlockFi’s Revenue, DEX Volume and a Wallet Bug

New research shows certain wallets are vulnerable to a quasi double-spending attack, a federal appeals court effectively said blockchain data is not protected under the Fourth Amendment and more. Here’s the story:

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Law of the Land
The Senate Banking Committee plans to introduce legislation this week to study virtual currency’s role in illicit online activity. “Although the use and trading of virtual currencies are legal practices, some terrorists and criminals, including international criminal organizations, seek to exploit vulnerabilities” through them, the amendment read. Meanwhile, a federal appeals court on Tuesday effectively said searches of a suspect criminal’s blockchain activity does not violate the Constitutional Fourth Amendment’s protection against warrantless search and seizure in denying defendant Richard Gratkowski’s claims his blockchain and Coinbase-held bitcoin transaction records could not be used as evidence against him.

Shut Down?
The U.K. High Court of Justice has ordered crypto exchange GPay to be “wound up in the public interest.” In a statement Tuesday, the U.K. government said 108 clients had lost a total of just under £1.5 million ($1.9 million) using GPay, which also sold clients insurance to protect them against trading losses, but the exchange did not always pay out.

Bugs
Researchers at ZenGo have discovered a vulnerability in how certain wallets display Bitcoin’s replace-by-fee transactions, possibly enabling malicious actors to swindle funds from unsuspecting victims. The affected wallets ZenGo studied, Ledger Live, Breadwallet and Edge have fixed or are fixing the issue, though other wallets may be vulnerable. Meanwhile, cybersecurity firm Group-IB has identified a scam that uses victim’s…

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