Petro, Venezuela’s Own Cryptocurrency Is A Scam? Tesla Servers Hacked For Crypto Mining!

Initial reaction from bitcoin enthusiasts and the financial community at large has been negative, as the white paper issued by Venezuela has some large loopholes.

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Is Venezuela's Cryptocurrency A Scam

Venezuela became the first country in the world to launch their own cryptocurrency, which is called Petro.

However, financial experts are terming this as a big scam. We will soon share why.

Meanwhile, Tesla, known for path-breaking innovations, found themselves at the receiving end, when their servers were found to be hacked by crypto miners.

This way, Tesla joins Gemalto, Aviva and other big brands, who were hacked for mining cryptocurrencies illegally.

Petro, Venezuela’s Own Cryptocurrency

Venezuela has become the first country in the world to launch their own cryptocurrency, called Petro.

Backed by oil, Venezuela has offered 100 million tokens of Petro, and each Petro has been compared to 1 barrel of oil. Hence, 100 billion barrels of oil, valued at $6 billion have been offered to investors from all over the world.

Venezuelan President Nicolas Maduro declared: “Petro is born and we are going to have a total success for the welfare of Venezuela,”

As per him, wealthy investors from Qatar, Turkey and US have shown interest in the cryptocurrency.

Is Petro A Scam?

However, the initial reaction from bitcoin enthusiasts and the financial community at large has been negative, as the white paper issued by Venezuela has some large loopholes.

To start with, investors won’t exactly receive 1 barrel of oil for 1 token of Petro, as advertised. If we dig into the white paper, we will find that each Petro has been linked with Venezuelan Bolívar, which is their currency.

And right now, due to the economic turmoil, Venezuelan bolívar means nothing.

Venezuela decided to opt for decentralized digital currency instead of selling their oil on the open market, due to US sanctions, which were imposed last year by President Trump.

Treasury Secretary Steven Mnuchin had said,

“Maduro may no longer take advantage of the American financial system to facilitate the wholesale looting of the Venezuelan economy at the expense of the Venezuelan people,”

Besides, Venezuela’s constitution prohibits anyone to guarantee finances, in exchange for their oil. More or less, it seems like a Govt. bond scheme, garbed in the name of cryptocurrencies.

Mariano de Alba, an expert on Venezuela at the Washington-based think tank the Atlantic Council said,

“I don’t see how rich people who do their homework would see this as an intelligent investment…. This seems like a desperate measure to scam people and see if some people will actually give money to the government”

Tesla Serves Hacked!

Meanwhile, security firm RedLock has informed the tech community that Tesla’s server hosted on Amazon has been hacked by crypto miners, to mine cryptocurrencies illegally.

RedLock’s Cloud Security Intelligence has informed Tesla about this intrusion.

It seems Tesla forgot to change the passwords of one of their open-source scripts, which encouraged hackers to mine cryptocurrencies, for free.

However, Tesla has denied this. A spokesperson said,

“We maintain a bug bounty program to encourage this type of research, and we addressed this vulnerability within hours of learning about it,”

As per RedLock, the hackers leveraged Stratum mining protocol and avoided being caught by hiding the IPs of mining pool server behind CloudFlare.

RedLock CTO Gaurav Kumar said,

“The recent rise of cryptocurrencies is making it far more lucrative for cybercriminals to steal organizations’ computing power rather than their data,”

We will keep you updated, as we receive more updates.

  1. Sagar says

    Nice Article
    Good information share with us thank you very much..

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