Bitcoin Drama

TradeHill

Bitcoin Exchange TradeHill Suspends Trading

The Bitcoin economy may be in some real trouble. After the announcement last week that e-payments service Paxum would no longer support Bitcoin clients, at least one major Bitcoin exchange has shut down. Chile-based TradeHill had been using Paxum, a PayPal competitor, for a large percentage of money transfers. The loss of Paxum, coupled with recent problems banking with Citibank that caused TradeHill to fall behind on processing transactions and other troubles, left the founders feeling like they had no choice but to suspend trading and return client deposits. Read More

Hack Hack Hack Hack It Apart

Mr. Young

Whistleblowing Website Cryptome Hacked, Conspiracy Theories Do Not Abound

Cryptome, a sort of proto-WikiLeaks website best known for exposing the CIA analyst who found Osama Bin Laden, announced this week that its entire website had been hacked. But, in a surprising response from Cryptome founder John Young—a man suspicious even of tap water—no foul play was suspected. At least no more foul than the usual Internet hijinks.

Reached by phone, Mr. Young explained that the site had been attacked by malware from Blackhole exploit kit 12, the latest iteration of  what TechWorld calls an insidious, but “incredibly common automated web compromise system. ” This kind of malware harvests IP addresses of people visiting the site for potential nefarious use later on, said Mr. Young.

Mr. Young discovered the malware when a reader got a virus this morning from downloading one of Cryptome’s files that had been in its directory for a long time. After some examination, his team discovered other files containing the malware script as well. Crytome, which made the breach public (part of the site’s mission to expose such security flaws), is currently in the process of completely restoring all of its  70,000 files and expects to be finished by the end of the day. Read More

Bitcoin Drama

(falkvinge.net)

Banking Partners Force Paxum to Drop Bitcoin Due to ‘Potential Risk’

Established banks and payments processors are skittish about the cryptocurrency Bitcoin, it would seem, prompting Canadian e-payments service Paxum to drop its Bitcoin clients last week.

Paxum, an e-commerce payments solution popular with adult web sites, started working with Bitcoin exchanges more than a year ago. Paxum hooked up with leading Bitcoin exchange Mt. Gox in December 2010, major Bitcoin exchange Tradehill in July 2011, and more recently with BitInstant, a service that speeds up Bitcoin transactions by fronting customers the credit, and others.

But on Friday afternoon, the operators of Paxum’s Bitcoin-related accounts received an email with the subject line “Bitcoin termination.” Paxum’s banking partners, which include MasterCard, had called off the Bitcoin party.

Paxum declined to name the partners that were responsible for the change. Read More

Love in the Time of Algorithms

Beep bloop beep . . . love connection!

NYU-Poly Instructor Builds Nerdtastic Website to Help Craigslist ‘Missed Connections’ Find Their Match

Did you just watch the love of your life exit the L train without asking for her digits? Digital renaissance man Luke DuBois is here to help. As the Brooklyn Paper reports, Mr. DuBois, an instructor at both the Polytechnic Institute of NYU and the Brooklyn Experimental Media Center, has built a website to help the Craigslist crowd find their “Missed Connections.”

The site scrapes Missed Connections listings in nine different cities, including New York, then uses an algorithm that matches descriptive words from from listings in the same city. If it’s a close enough match (upwards of 85 percent), users are prompted to email the authors of the initial posts to let them know you may have found their subway soulmate. Read More

Accelerators

Mr. Crowder

DreamIt Ventures Formalizes Focus on Minority-Owned Startups With DreamIt Access NYC

DreamIt Ventures, the Philadelphia-based accelerator that launched its first New York program last May, has another offering for local startups in the works. The firm recently announced a program called DreamIt Access that will bring five minority-led businesses to each DreamIt Ventures class going forward. The new initiative begins with DreamIt’s summer class in New York City.

A number of notable New York startups have graduated from DreamIt’s program, including SeatGeek, Parse.ly, Postling, Adapt.ly, KeepRecipes, and more. The emphasis on minority-owned business is an attempt to institutionalize a program DreamIt developed in Philadelphia last year when Comcast sponsored five startups as part of special track in DreamIt’s accelerator called the Minority Entrepreneur Accelerator Program (MEAP). Read More

The Internet Makes You Social

(wikipedia.org/wiki/File:MotherTeresa_090)

Social Media Week Wants to Save the World

Here at Betabeat, we live every week like it’s social media week. But this week is also Social Media Week, the fourth such annual event and the “Super Bowl of Social Media,” which takes place simultaneously in cities around the world. And on Twitter, #smwnyc.

The surprising thing about the agenda: Social Media Week has taken a turn for the socially-conscious. In New York, at least, the lineup is heavily filled with do-gooder topics. This year’s theme is “Empowering Change through Collaboration,” featuring collaborative consumption panels and collaborative consumption consumption, and there seem to be a ton of events focused on health, a few based around education, and many more with an eye toward making the world a better place for people rather than brands. Just today, there’s a keynote on redesigning the hospital room and an event called “Educate Girls, Change the World.” Read More

Goooood Morning Silicon Alley!

sponsor_garys_red_tie

Best Tech Events This Week (The LINSANITY! Edition)

This is a guest post from Gary Sharma (aka “The Guy with the Red Tie”), founder & CEO of GarysGuide and proud owner of a whole bunch of black suits, white shirts and, at last count, over 40 red ties. You can follow him at @garysguide and reach him at gary [at] garysguide.com.

LINSANITY, Baby!
If you’re a die-hard New York sports fan like me, you have probably been pinching yourself at whats been transpiring the last 10 days. First the Giants win the SuperBowl against the Patriots in another amazing one-for-the-ages game. And now, the Knicks have won 5 in a row on the shoulders of an unlikely hero, Jeremy Lin. Now, dear reader, as you know, I like to do my part in making sure you hold ur own in any water-cooler / cocktail conversation and this week Linsanity is the topic du jour. So here goes. Read More