The Leftover Bits 4/21/15: TradeBlock, Mt.Gox, Shapeshift and Naughty Police

Shapeshift now supports TetherUSD, a bitcoin blockchain-based currency pegged to the US dollar. Users can exchange bitcoin for TetherUSD with near-instant settlement and anonymity preserved. Stablecoins backed by fiat reserves have become a popular approach to price stability in cryptocurrency. Bitreserve allows users to hold fiat and commodities on blockchain. Nubits operates as a separate currency designed to maintain a one-dollar price. BitUSD occupies a middle ground between the two models. TetherUSD is backed by the issuer's fiat reserves. Shapeshift plans to roll out TetherJPY and TetherEUR in coming months.

A ten-year police officer and SWAT team member was arrested this week for selling stolen computer equipment, including KnC Neptune bitcoin miners. The same officer accepted a $250 bribe from an undercover agent in exchange for identifying a license plate owner. The arrest echoes recent disclosures that a DHS agent involved in the Silk Road case faces investigation for his own misconduct. Bitcoin's rising prominence has attracted interest from criminals in all sectors, and law enforcement has not been exempt. The original owner of the miners has not been identified.

Wizsec released a report concluding that missing Mt. Gox bitcoins were routed through mixing services and then sold on Mt. Gox and other exchanges. The firm determined that Mt. Gox operated on fractional reserve principles for years and held almost no coins by 2013. Wizsec has not released its underlying data publicly in order to protect its sources, though it indicated some findings may emerge later. Few observers have maintained sustained focus on the Mt. Gox collapse more than a year after it imploded. Wizsec's investigation represents some of the most rigorous analysis the community has received on the subject, and the organization warrants recognition for that work.