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CryptoCann™ Report: AT&T and T-Mobile sued on behalf of victims of crypto theft; Marijuana legalization may be headed to Washington DC

Last updated: 17:00 09 Nov 2018 GMT, First published: 15:48 09 Nov 2018 GMT

Marijuana protesters in Washington DC

The Crypto Report

Cryptocurrency theft isn’t anything new, evident by the millions in digital currency lost at the hands of hacker, but the ways thieves are getting to crypto is ever-changing.

There have been recent reports of a technique known as “SIM swapping” technique, a process in which hackers have telecom providers transfer a person’s phone number to a SIM card and then use the phone number to reset passwords on cryptocurrency exchange accounts.

A US investor sued AT&T Inc (NYSE:T) for US$224mln earlier this month when his cryptocurrency was stolen via a similar scheme, alleging that the wireless carrier was complicit in the theft by not following the proper safety measures to transfer his information.

In a recent development, crypto-focused law firm Silver Miller has reportedly filed arbitration claims against AT&T and T-Mobile US Inc (NASDAQ:TMUS) on behalf of victims of these hacks, as per a Coindesk report.

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"By leaving holes in their security protocols and failing to properly train and monitor their employees, cellphone providers have assisted thieves in remotely taking over the SIM cards in people's smartphones, accessing financial records and account information of the victims, and emptying the victim's accounts of cryptocurrency and other valuable assets,” stated the law firm.

In other crypto legal news, the Winklevoss twins' lawsuit against BitInstant founder Charlie Shrem continues, and its appears the brothers have lost this round. Gemini founders and brothers Cameron and Tyler Winklevoss are suing Shrem for more than US$32 million in Bitcoin.

A judge froze Shrem’s assets last month before Shrem knew about the lawsuit, but has lifted that order after a court hearing, according to a Bloomberg report.

Winklevoss attorney Tyler Meade had argued that the asset freeze should continue, highlighting Shrem’s recent multi-million purchases, including a US$2 million house in Florida and US$12 million in real estate holdings, crypto and other investments.

The Winklevoss brothers gave Shrem, their advisor at the time, US$750,000 and then an additional US$250,000 to buy Bitcoin on their behalf. The brothers are alleging that Shrem did not give them the full value of Bitcoin at the time.

A trial has been scheduled for June 17.

The Cann Report

Cannabis advocates viewed the US midterm elections results as win with legalization, recreational and medicinal, brought to three more states.

The Democratic takeover of the House may mean marijuana legalization in Washington, DC as well.

Mayor Muriel E. Bowser (D-DC) won re-election and announced that she plans to introduce legislation early next year to legalize the sale of marijuana, as per a The Washington Post report.

DC recently legalized possession of small amounts of marijuana, allowing residents over 21 to legally grow and use marijuana and possess up to two ounces.

READ: Redfund Capital says cannabis legalization in 3 more US states a milestone

However, legislation to regulate and tax marijuana has not yet been passed.

“We have an untenable situation in the District,” said Bowser at a conference “As long as we have the ability to possess marijuana, which is our law, we also need the ability to procure marijuana legally, which we don’t have now.”

There are a few dispensaries in the District available to registered medical marijuana patients.

In New York, the City announced a new policy in May to cut down the number of marijuana arrests and it appears to be working.

As per the policy, New Yorkers with no priors receive a summons instead of being arrested if caught smoking marijuana in public.

A total of 151 New Yorkers were arrested for marijuana possession, a 97% drop compared with more than 4,300 arrests recorded in September 2010, according to statistics from Drug Policy Alliance.

Prosecution of low-level marijuana crimes has gone down as well. Marijuana arraignments in Manhattan fell 94% year over year in October to 28 cases, according to a Leafly report.

The report notes that while around 60% of New Yorkers are in favor of legalization, the state doesn’t have the referendum option that other states have used to pass the legislation.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter@LenoreMariee

 

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