An "Anonymous Collective" Complains to the SEC Over DAO Hack
- Could the Ethereum Foundation, Slock.it or others be held liable for the losses of the DAO?
A Securities Exchange Commission (SEC) complaint form regarding the hack of the DAO has been posted online by "an anonymous collective concerned with the lack of regulation in the cybercurrency sector". The SEC is not charged with policing smart contracts or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term but U.S authorities routinely claim jurisdiction over any matter that involves American residents - it is therefore not out of the question that they might actually decide to act on this and at least examine the case.
The posters of the form say they have contacted the SEC "to raise awareness of the developments in Ethereum and specifically concepts like the DAO." The SEC has declined to comment on the claims to Finance Magnates but on its 'Tips, Complaints and Referrals' website it seems to accept anonymous filings with a similar format.
In the preamble to the message to the SEC, the group apparently writes to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term community: "While we generally support the innovations in cryptography and cybercurrency, the current "wild-west" environment presents dangerous pitfalls for potential investors, as the DAO attack has shown. As such, regulation is required to protect investors in the United States and abroad.
We are currently in contact with investigators at the SEC, the ESC (European Securities Committee) and the MAS (Monetary Authority of Singapore) to explore this matter. We urge the community to reach out to both the above mentioned authorities, as well as their own national regulators to explore possible measures to protect investors and to establish liability for fraudulent investment schemes."
The message itself contains a summary of a New York Times report of the incident and this claim: "Dear SEC Investigators, Someone close to me lost over $10000 in a cybercurrency like investment fund that was allegedly hacked for $50m shortly after. Most importantly, this investment was touted as safe and secure by its inventors and now it is the opposite. I hope the SEC can look into this and recover the funds."
A Securities Exchange Commission (SEC) complaint form regarding the hack of the DAO has been posted online by "an anonymous collective concerned with the lack of regulation in the cybercurrency sector". The SEC is not charged with policing smart contracts or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term but U.S authorities routinely claim jurisdiction over any matter that involves American residents - it is therefore not out of the question that they might actually decide to act on this and at least examine the case.
The posters of the form say they have contacted the SEC "to raise awareness of the developments in Ethereum and specifically concepts like the DAO." The SEC has declined to comment on the claims to Finance Magnates but on its 'Tips, Complaints and Referrals' website it seems to accept anonymous filings with a similar format.
In the preamble to the message to the SEC, the group apparently writes to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term community: "While we generally support the innovations in cryptography and cybercurrency, the current "wild-west" environment presents dangerous pitfalls for potential investors, as the DAO attack has shown. As such, regulation is required to protect investors in the United States and abroad.
We are currently in contact with investigators at the SEC, the ESC (European Securities Committee) and the MAS (Monetary Authority of Singapore) to explore this matter. We urge the community to reach out to both the above mentioned authorities, as well as their own national regulators to explore possible measures to protect investors and to establish liability for fraudulent investment schemes."
The message itself contains a summary of a New York Times report of the incident and this claim: "Dear SEC Investigators, Someone close to me lost over $10000 in a cybercurrency like investment fund that was allegedly hacked for $50m shortly after. Most importantly, this investment was touted as safe and secure by its inventors and now it is the opposite. I hope the SEC can look into this and recover the funds."