Connect with us

Crypto

Venezuela's oil-backed cryptocurrency Petro to shut down

Published

on

Venezuela's oil-backed cryptocurrency Petro to shut down

The Venezuelan government will reportedly shut down Petro (PTR), its state-issued, oil-backed crypto, which was subject to controversy and did not see mass adoption by citizens in the country. 

According to reports, crypto wallets on the Patria website, the trading platform for Venezuela’s Petro, will cease operations on Monday, Jan. 15, with the remaining Petro converted to bolivar, the country’s fiat currency. 

Petro’s demise comes nearly six years after its official launch in 2018. Venezuelan President Nicolás Maduro said at the time that the crypto will help to circumvent harsh sanctions by the US government and also help the country’s collapsing economy.

However, the state-issued cryptocurrency which was an ambitious project, failed to see widespread adoption among citizens, with the country’s legislators labeling the token as unconstitutional in 2018 before its official launch. 

Despite criticism from within and outside Venezuela, Maduro’s administration continued to forge ahead with Petro, stating that passport fees would be paid in PTR. In 2020, the President stressed that the token will play a critical role in Venezuela’s economic recovery. 

Advertisement

While Petro may not have enjoyed mass adoption, Venezuelans embraced other cryptocurrencies, such as Bitcoin. 

Opposition leader Leopoldo López reportedly endorsed crypto, saying it helped Venezuela’s citizens preserve their savings from the continuous devaluation of the bolivar.

Follow Us on Google News

Crypto

India Freezes $271M in Crypto as Forex Web Unravels Across Global Payment Loops

Published

on

India Freezes 1M in Crypto as Forex Web Unravels Across Global Payment Loops
Indian authorities have unleashed a major financial strike, freezing crypto assets worth thousands of crores linked to illegal forex and crypto trades, as the dragnet tightens on global networks funneling funds through shell firms and offshore channels.
Continue Reading

Crypto

Former Northland man sentenced for ‘cryptojacking’ scheme

Published

on

Former Northland man sentenced for ‘cryptojacking’ scheme

ST. PAUL — A former Northland resident will repay more than $45,000 to his former employer for misusing their computer systems to mine cryptocurrency for personal gain.

Joshua Paul Armbrust, 45, was sentenced Tuesday by U.S. District Judge Jerry Blackwell to three years of probation following his

April guilty plea to a felony count of computer fraud.

Armbrust, according to court documents, continued to use the resources of Digital River, a Minnetonka-based global e-commerce and payment processing company, for more than a year after he resigned in February 2020.

Through the scheme known as “cryptojacking,” he took advantage of the now-defunct company’s computing power to obtain and liquidate $5,895 worth of Ethereum — while forcing Digital River to absorb $45,270 worth of web service fees.

Advertisement

“The defendant’s conduct strikes at the core of digital trust and security in the modern economy,” Assistant U.S. Attorney Bradley Endicott told the court. “Companies rely on former employees to act ethically, even after separation, and to respect corporate systems and data.

“Unauthorized access to corporate cloud infrastructure not only creates financial harm, as in this case, but also exposes sensitive systems to potential compromise and opens the door to more severe cyber threats.”

Armbrust was

living in Orr when he was indicted by a federal grand jury last November.

Records indicate he has since relocated to St. Paul and is working for an insurance company.

Advertisement

Endicott said the scheme came to light only because Digital River, which went out of business in January, conducted an internal investigation and discovered the unauthorized activity, which was then traced back to Armbrust’s IP address.

Defense attorney William Mauzy told the court Armbrust had been given a code to access Amazon Web Services, which hosted programs that Digital River was using to mine cryptocurrency.

After leaving the job, the defendant used that same code to build a program to generate cryptocurrency for himself — leveraging the services between 6 p.m. and 7 a.m. daily, and then transferring the Ethereum into a digital wallet he controlled.

Endicott said it was “not a momentary lapse in judgment” but a “calculated and covert misuse of enterprise-level computing resources for private enrichment.” It “resulted in real monetary losses, investigative costs and operational disruption to a private company.”

“The defendant is clearly a capable and technically skilled individual,” the prosecutor said. “But instead of using those talents for constructive and lawful purposes, he chose to exploit his former employer for personal gain. It is disappointing that someone with this ability used his skills to steal.”

Advertisement

Mauzy, though, noted the scheme occurred “during a time of extreme financial need and considerable emotional distress,” as Armbrust was caring for his mother, who was in deteriorating health and has since died.

The attorney said the evidence clearly shows his client was not a “malicious hacker” who set out to disable his former employer’s computer systems. He made no efforts to cover his tracks and has accepted responsibility for the financial losses.

“Armbrust’s conduct, while criminal, was an act of desperation and despair,” Mauzy wrote, “not a crime of greed.”

The probationary term was expected, as both sides jointly recommended it under the plea agreement. Armbrust has no prior criminal history.

The FBI handled the investigation.

Advertisement

Tom Olsen covers crime and courts and the 8th Congressional District for the Duluth News Tribune since 2013. He is a graduate of the University of Minnesota Duluth and a lifelong resident of the city. Readers can contact Olsen at 218-723-5333 or tolsen@duluthnews.com.

Advertisement
Continue Reading

Crypto

Russia Hits 95% De-Dollarization in Settlements With China and India

Published

on

Russia Hits 95% De-Dollarization in Settlements With China and India
Russia’s accelerating shift away from the U.S. dollar is shaking up global finance, with nearly all trade between Moscow, China, and India now conducted in national currencies—reshaping energy markets and propelling a new era of multipolar economic power.
Continue Reading

Trending