IRS Seizes Bitcoin Tied To Terrorists; U.S. Postal Service Files Blockchain Voting Patent

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CRYPTO MARKETS

Bitcoin’s rally met some resistance this week as it plateaued under $12,000 after a 30% rise in July and early August. A brief bug on the Binance exchange last week showed the futures price suddenly appearing much higher, up to $100,000. “Another day in crypto,” Binance CEO Changpeng Zhao said, adding that a user’s algorithm went “ballistic” to cause the spike.

In altcoin news, chainlink doubled in value this week at its peak to become the fifth-largest cryptocurrency in the world by market cap, overtaking bitcoin cash.

VOTING ON A BLOCKCHAIN?

With the U.S. Postal Service at the forefront of the news as the prospect of mail-in voting has become a political flashpoint, the U.S. Patent and Trademark office revealed that the USPS filed a patent in February for a system “that can use the security of blockchain and the mail to provide a reliable voting system.” The system would give voters a code in the mail to store their ballot information while ensuring anonymity.

IRS CRACKS DOWN ON TERROR

The U.S. Justice Department announced that the IRS seized millions of dollars worth of bitcoin tied to ISIS, al-Qaeda and the al-Qassam Brigades, the armed branch of Hamas. The IRS criminal investigations unit used undercover agents to expose money laundering schemes after the terrorist groups called for bitcoin donations on social media. 

Don Fort, the criminal investigation chief for the IRS said the seizures “directly prevents them from wreaking havoc throughout the world.”

INSTITUTIONAL BULLS

More than 20 institutions have filed paperwork showing they’ve invested in the Grayscale Bitcoin Trust, a useful proxy for institutional interest in cryptocurrency. The firm with the most disclosed holdings of GBTC is $4.5 billion mutual fund Ark Invest.

Goldman Sachs
GS
is also making under-the-radar moves to embrace blockchain, poaching JPMorgan
JPM
’s head of digital assets strategy as it reportedly explores the possibility of creating its own blockchain-based answer to bitcoin. And data analytics firm MicroStrategy
MSTR
made one of the biggest bitcoin bets ever this week, buying $250 million worth of the cryptocurrency as a “reasonable hedge against inflation.” Its market cap rose by more than $100 million after the announcement.

MORE ENTERPRISE ADOPTION

Crypto custodian Anchorage is further blurring the lines between traditional finance and cryptocurrencies, teaming up with security platform Tokensoft to allow investors to hand custody of security tokens directly to Anchorage when they’re bought. Typically, users have to initially keep custody themselves, but the new experience is more in line with normal investing.

Also, here’s why blockchain could be the secret sauce necessary to propel 5G internet adoption forward.

BLOCKCHAIN BALLERS

Dapper Labs, the creator of CryptoKitties, is launching a blockchain-powered digital trading card product called Top Shot that will package NBA-licensed player stats and highlights onto virtual “cards.” Users can buy, sell and trade cards of their favorite players on Dapper’s app. To coincide with the launch, Dapper announced a $12 million funding round, with investments from several NBA players.

ELSEWHERE

Jay-Z, Charles Schwab-Backed Ethereum App Opens Doors to Public [Bloomberg]

Coinbase to Offer Bitcoin-Backed Loans to US Customers [CoinDesk]

Why Grayscale’s New Digital Currency Ad Could Bring Crypto Investing To Millions [Cointelegraph]