IN BITCOIN, FRAUD IS QUICKER THAN THE LAW | Pump-and-dump schemes are shut down in the financial markets all the time. But such frauds involving digital money like Bitcoin have gone unchecked, Nathaniel Popper reports in DealBook. Government authorities do not agree on which laws apply to Bitcoin, the popular virtual currency — or even on what Bitcoin is. One recent scam began with a call on Twitter: “For insane profits come and join the pump.” The person behind it, a trader known on Twitter as Fontas, told Mr. Popper in a secure Internet chat that he operated with little fear of a crackdown. “For now, the lack of regulations allows everything to happen,” Fontas said in the chat, where he verified his control of the Twitter account but did not give his identity. He added that the world of Bitcoin would benefit when someone steps in to police it, and would stop his schemes when they do. Mr. Popper writes: “Chinese authorities drew attention to the issue on Thursday when they announced that they were barring Chinese banks from making Bitcoin transactions. The same day, the Bank of France issued its own warning about the potential risks. The news sent the price of Bitcoin tumbling, but it quickly bounced back to near its all-time high of around $1,200. “Bitcoins are little more than computer code — created according to a set algorithm and traded between online wallets using virtual keys. Some people insist that virtual currencies could become a revolutionary new form of payment in the real world. Bank of America became the first major Wall Street bank to release research about Bitcoin on Thursday, noting that it could become ‘a major player in both e-commerce and money transfer.’”

SEARS TO SPIN OFF LANDS’ END | Sears Holdings, the struggling retailer run by the hedge fund manager Edward S. Lampert, said on Friday that it had filed to spin off its Lands’ End business by distributing shares to investors. The company said it expected the spinoff to be tax free for shareholders in the United States, except for any cash received in lieu of fractional shares. The move is subject to approval by the board.

LIVELY DEBATE ON PROXY ADVISORY FIRMS | Corporate shareholders voting on a merger or the election of directors often take advice from so-called proxy advisory firms, independent groups that analyze such issues. But companies and regulators are growing uncomfortable with the amount of influence these advisory firms wield, DealBook’s David Gelles reports. These critics say that the two main firms, Institutional Shareholder Services and Glass Lewis, are understaffed and often uninformed, and that the firms, which also offer consulting services, are riddled with conflicts of interest. The Securities and Exchange Commission on Thursday hosted a round-table discussion that examined the influence of proxy advisers. While it has not proposed any rules, the agency is considering if any regulation is needed. The S.E.C. chairwoman, Mary Jo White, said that as the influence of proxy advisers had grown, so had questions about the fairness of their recommendations and decision making. “I am particularly interested in the discussion of conflicts of interest that may or may not arise in connection with the participation of proxy advisers in our system — what they are and views on how they should be addressed,” Ms. White said.

TWITTER ADDS FIRST FEMALE BOARD MEMBER | Twitter, which came under fire in the run-up to its I.P.O. for the absence of any women on its board of directors, said on Thursday that it had added the former publishing executive Marjorie M. Scardino to its board. The addition of Ms. Scardino, the first woman to serve as a director at the company, expands Twitter’s board to eight members from seven. Ms. Scardino, 66, is the former chief executive officer of Pearson, the London-based education and media conglomerate. She has also served on Nokia’s board. Vindu Goel writes on the Bits blog: “Ms. Scardino’s background should certainly help Twitter with its global expansion plans and its efforts to encourage use of the service by the media, including news organizations around the world. Before running Pearson, she ran its Economist Group, which is well known for its deeply reported country and industry profiles. And as the leader of one of the world’s largest publishing companies, she certainly got to know some of the biggest advertisers on the planet.”



ON THE AGENDA | The jobs report for November is released at 8:30 a.m. Data on personal income and spending in October is out at 8:30 a.m. John Donahoe, the chief executive of eBay, and David Marcus, the president of PayPal, are on Bloomberg TV at 1 p.m. Art dealers and buyers are in Florida this weekend for Art Basel Miami Beach, where some prices are looking particularly lofty.

SPOTLIGHT ON BLACKROCK | The giant asset management firm BlackRock appears on the cover of The Economist. The subheadline reads: “In 25 years, BlackRock has become the world’s biggest investor. Is its dominance a problem?”

