Lawrence Damilola – The Shib Daily

Fintech Firm Circle Pushes Forward with IPO Plans

Lawrence Damilola — Mon, 28 Oct 2024 16:49:18 +0000

Circle, the company behind the popular stablecoin USDC, is moving ahead with plans to enter public markets.

In a recent interview with Bloomberg, CEO Jeremy Allaire emphasized the company’s strong financial position, stating that Circle requires no additional funding.

The firm’s IPO aspirations follow its January 2024 filing of a draft registration statement with the U.S. Securities and Exchange Commission (SEC).

This marks Circle’s second attempt to go public after a prior plan to merge with Concord Acquisition through a Special Purpose Acquisition Company (SPAC) was canceled in 2022, impacted by regulatory concerns and market turmoil linked to the FTX collapse.

Allaire noted, “We’re in a financially strong position and have been able to build a very solid business,” underlining the company’s readiness for an IPO, contingent upon SEC approval.

The company continues to rely on USDC as its flagship stablecoin product, which holds a market valuation of nearly $35 billion, second only to Tether’s USDT, valued above $120 billion.

The stablecoin supports various transactions within the crypto ecosystem, allowing traders to navigate market shifts without fully exiting digital assets.

Circle’s euro-backed stablecoin, EURC, is also making strides in the European market, achieving a record-high supply of 91.8 million tokens. This growth places EURC’s market capitalization close to $100 million, establishing it as the largest euro-pegged stablecoin, a position previously held by Tether’s EURT, with a market cap of approximately $27.5 million.

Circle attributes EURC’s recent expansion to compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulation. Patrick Hansen, Circle’s Senior Director of EU Strategy and Policy, stated that EURC’s supply has grown more than 2.5 times since achieving MiCA compliance, with notable uptake on Ethereum’s layer-2 Base platform.

While Circle’s IPO application awaits SEC review, stablecoin regulations remain a topic of active debate in the U.S. Several bills, such as the Lummis-Gillibrand Payment Stablecoin Act and the Clarity for Payment Stablecoins Act, have been proposed but have yet to be enacted.

Allaire expressed optimism that regulatory progress could come after the November elections, stating that clear legislation could encourage broader adoption of digital assets by traditional financial firms. However, some lawmakers, like U.S. Rep. Maxine Waters, have acknowledged difficulties in securing bipartisan support for these regulatory measures.

A recent Barron report indicated that the SEC has questioned whether USDC might be classified as a security, which could impact Circle’s IPO timeline.

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Bolivia’s Banco Bisa Introduces Regulated Crypto Custody for Tether USDT

Lawrence Damilola — Mon, 28 Oct 2024 15:11:33 +0000

Bolivia’s Banco Bisa has introduced a custody service for Tether’s USDt stablecoin, allowing customers to buy, sell, and transfer the asset within a regulated framework.

This new service marks a step forward in Bolivia’s crypto landscape, which had previously imposed strict restrictions on digital assets. Banco Bisa’s offering enables users to hold USDt and use it for various transactions, including cross-border payments and sending funds to family members.

According to Banco Bisa, Bolivia’s financial regulator, Autoridad de Supervisión del Sistema Financiero (ASFI) supports the custody service. Yvette Espinoza from ASFI stated that this initiative “allows clients to carry out crypto transactions within the country’s regulatory framework,” thereby minimizing risks associated with unregulated crypto transactions.

Banco Bisa noted that users would be required to undergo a verification process to ensure secure operations, providing what the bank describes as “peace of mind” for clients engaging in crypto-related activities.

Banco Bisa implemented pricing for the service, with the minimum purchase starting at 200 USDT and a daily transaction cap of 10,000 USDT. Transaction fees for crypto sales range between 35 to 100 bolivianos ($5 to $14.5), depending on the amount, and cross-border transfers to dollar accounts incur a fee of 280 bolivianos ($40.5).

Bolivia’s approach to cryptocurrency has evolved since its initial ban in 2014, when the government prohibited digital currencies not issued or regulated by Bolivian authorities, specifically targeting Bitcoin.

At the time, Bolivia’s central bank cited concerns over potential financial losses and the protection of the national currency as reasons for the ban. However, recent regulatory adjustments have opened the door for more formalized crypto activities.

On June 28, 2024, Bolivia officially lifted its prohibition on Bitcoin and other digital currencies, allowing financial entities to engage with these assets.

Following the policy change, Bolivia’s central bank reported a 100% increase in virtual asset trading, with an average monthly trading volume of $15.6 million recorded from July to September.

Banco Bisa’s new service aligns with these regulatory updates, offering a structured pathway for customers to participate in the growing crypto market under regulated conditions.

This development comes as Latin American nations increasingly adopt cryptocurrencies. Argentina, for example, saw an estimated $91 billion in crypto deposits between July 2023 and June 2024, attributed partly to stablecoin transactions aimed at countering economic challenges such as inflation.

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Hong Kong FSTB Issues New AI Policies for Financial Sector

Lawrence Damilola — Mon, 28 Oct 2024 14:31:33 +0000

The Hong Kong Financial Services and Treasury Bureau (FSTB) released a policy framework today focusing on responsible AI use within the financial services industry.

The bureau, responsible for developing and enforcing financial policies, emphasized that AI deployment should enhance efficiency, security, and customer service standards across the sector. The FSTB also recommended a “dual-track approach” to foster innovation in AI while addressing potential challenges.

According to the policy statement, Hong Kong’s financial services industry, which includes banking, securities, insurance, accounting, pension fund management, and green finance, is well-positioned to incorporate AI into operations.

The FSTB plans to partner with financial regulators and service providers to ensure that the adoption of AI technology remains secure and effective. The bureau described this as “a balancing act” that aims to “capture opportunities and mitigate risks” associated with the new technology.

Six Key AI Applications for Financial Services

The FSTB identified six primary areas where AI applications could benefit the financial industry: research and data analysis, investment strategy development, customer service improvements, automated risk assessments, crime detection and prevention, and workflow automation.

These areas reflect a targeted approach to leveraging AI to address specific industry needs, from streamlining operations to enhancing customer interaction.

As AI adoption progresses, the FSTB emphasized establishing a supervisory framework to protect stakeholders and mitigate potential disruptions, such as job displacement and concerns over intellectual property rights.

The bureau’s approach ensures that AI technologies are adopted with comprehensive safeguards for all participants within Hong Kong’s financial ecosystem.

Upcoming SFC Guidance on AI Regulations

In addition to the FSTB’s policy announcement, the Hong Kong Securities and Futures Commission (SFC) is set to provide further regulatory guidance on AI. A circular scheduled for November is expected to outline specific compliance obligations and associated risks, offering financial institutions more detailed requirements for integrating AI technology.

Moreover, the SFC recently collaborated with the Customs and Excise Department (C&ED) to strengthen oversight of cryptocurrency over-the-counter (OTC) trading, a service that allows private cryptocurrency transactions. This regulatory initiative builds on earlier proposals to introduce a licensing regime for cryptocurrency OTC services, initially planned for the C&ED alone.

The FSTB and SFC’s collaborative regulatory efforts signal a structured approach to adopting AI across financial services, with a clear focus on balancing innovation with protective measures for stakeholders.

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Metaplanet Surpasses 1,000 BTC in Holdings After Latest October Purchase

Lawrence Damilola — Mon, 28 Oct 2024 14:18:57 +0000

Japan-based tech firm Metaplanet reported that its Bitcoin reserves have exceeded the 1,000 BTC mark following its most recent acquisition today.

The Tokyo-listed company revealed that it acquired an additional 156.78 BTC for approximately $10.4 million, raising its total Bitcoin holdings to 1,018 BTC, valued at around $68.8 million.

This purchase is part of a series of acquisitions throughout October, making Metaplanet one of Asia’s largest publicly traded corporate Bitcoin holders and among the top 20 worldwide.

.@Metaplanet_JP now owns more than 1000 BTC making it one of the largest corporate holders of Bitcoin in Asia https://t.co/31GSXgQ8rk
— Simon Gerovich (@gerovich) October 28, 2024

Metaplanet’s October buying spree began on October 1, when it purchased 107 BTC for roughly $6.6 million, paying an average price of $61,932 per Bitcoin.

This was followed by acquisitions of 108 BTC each on October 7 and October 11 and another 106 BTC on October 14, totaling over 600 BTC acquired during the month. As of the latest acquisition, the company’s average purchase price is approximately 9,450,746 yen, or $61,629 per Bitcoin.

Following the latest announcement, Metaplanet’s stock saw an 8% increase during early Asian trading hours, with shares reaching 1,150 yen ($7.50), according to Google Finance. The price of Bitcoin also saw a slight uptick, trading at $68,377.

The company’s decision to allocate part of its treasury to Bitcoin began in May, aligning with a corporate strategy to make Bitcoin a strategic reserve asset. CEO Simon Gerovich stated, “Metaplanet now owns more than 1,000 BTC, making it one of the largest corporate holders of Bitcoin in Asia.”

He also suggested that the company plans to continue its acquisitions in response to investor interest.

To further communicate the impact of its Bitcoin strategy, Metaplanet introduced a metric known as BTC Yield earlier this month.

This metric tracks the ratio between the company’s Bitcoin holdings and fully diluted shares, offering a transparent view of how Bitcoin purchases may affect shareholder value. Metaplanet’s BTC Yield in October increased by 155.8%.

Surpassing Hong Kong’s Meitu Inc., which holds 940.9 BTC, Metaplanet now stands as the largest corporate Bitcoin holder in Asia and ranks 19th globally, according to Bitcoin Treasuries data.

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Michael Saylor Defends Bitcoin Custody Comments After Backlash

Lawrence Damilola — Thu, 24 Oct 2024 16:43:37 +0000

Michael Saylor, founder of MicroStrategy, has addressed the cryptocurrency community’s backlash regarding his recent comments on Bitcoin custody.

Yesterday, Saylor clarified his stance on self-custody after facing criticism for suggesting that large financial institutions could serve as custodians for Bitcoin holders. In a post on X (formerly Twitter), Saylor stated, “I support self-custody for those willing and able, the right to self-custody for all, and freedom to choose the form of custody and custodian for individuals and institutions globally.”

Saylor’s clarification came after his interview on Monday, during which he referred to certain members of the crypto community as “paranoid crypto-anarchists” and suggested that “too big to fail” banks could be trusted to safeguard Bitcoin.

These remarks drew sharp reactions from the community, particularly from advocates of decentralization who prefer holding their own assets. Samson Mow, a notable Bitcoin advocate, took issue with Saylor’s use of the term “crypto-anarchist” in describing those who prioritize self-custody.

Criticism from the Crypto Community

Following the interview, Ethereum co-founder Vitalik Buterin and other prominent figures disapproved of Saylor’s comments. Joel Valenzuela, a marketer for Dash, labeled Saylor’s response to the criticism as “capitulation” and claimed that it revealed his “true colors.”

Max Keiser, another vocal Bitcoin supporter, added to the criticism, accusing Michael Saylor of favoring centralized banking systems over the principles Bitcoin was built upon. “The recent comments attacking self-custody demonstrate a regressive tendency to favor the legacy, centralized banking crooks that Bitcoin fixes,” Keiser posted.

Gabor Gurbacs, an advisor to VanEck, provided a more neutral view, stating: “This shouldn’t be a controversial position, just common sense.” He indicated that allowing individuals to choose how they store their Bitcoin is reasonable.

Pascal Gauthier, CEO of hardware wallet manufacturer Ledger, also addressed the matter. Speaking at a blockchain event in Dubai, Gauthier emphasized the importance of self-custody, saying, “There is no crypto without self-custody.”

However, he acknowledged the risks involved, citing the 2020 Ledger data breach that led to customer information being sold on the dark web and subsequent phishing attacks. Gauthier used the opportunity to highlight his company’s commitment to improving security in the self-custody space.

Despite the heated discussion, Michael Saylor reiterated that Bitcoin should be open to all forms of investment and custody preferences.

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Lazarus Group Exploits Google Chrome Zero-Day Vulnerability in Crypto Attack

Lawrence Damilola — Thu, 24 Oct 2024 16:31:03 +0000

Cybersecurity leader Kaspersky has revealed an advanced malicious operation aimed at cryptocurrency, orchestrated by the North Korean Lazarus Group.

Announced Wednesday, this campaign saw Lazarus leveraging a previously unknown flaw in Google Chrome through a counterfeit blockchain game. According to the report, the exploit facilitated the installation of spyware designed to hijack wallet details.

The attack was identified in May 2024 and involved a fake blockchain-based game as a cover to install spyware aimed at stealing wallet credentials. The group took advantage of a flaw in Chrome’s V8 JavaScript engine, allowing them to gain control over targeted devices. This vulnerability, labeled CVE-2024-4947, has since been patched by Google.

Kaspersky’s Global Research and Analysis Team, which presented its findings at the Security Analyst Summit in Bali, described how Lazarus Group used a fake NFT-based tank game to execute the attack. The website promoting the game appeared professional, inviting users to compete globally.

“The attackers went beyond typical tactics by using a fully functional game as a cover to exploit a Google Chrome zero-day and infect targeted systems,” said Boris Larin, Principal Security Expert at Kaspersky. He added that even simple actions like clicking on a link in an email or social media could compromise entire networks.

Fake Game Mirrors Real Blockchain Game

The fake blockchain game designed by Lazarus Group was used as a conduit to deliver malware. Kaspersky said that the game website’s design closely mirrored an actual blockchain game’s logo and visual quality, using stolen source code from the original developers. These helped to add credibility to the fake site. Campaigns on platforms such as LinkedIn and X (formerly Twitter) even promoted the game to potential victims in the crypto sector.

In March 2024, the legitimate developers of the real game, which was also blockchain-based, reported a breach involving the theft of $20,000 in cryptocurrency. Kaspersky researchers suspected that Lazarus Group was behind this earlier breach, as they repurposed the stolen source code to create the fake game. The malware was distributed through a ZIP file download containing the fake game, which required registration but also executed malicious code.

Lazarus Group Uses Social Engineering Techniques

Lazarus Group’s attack involved sophisticated social engineering techniques to lure cryptocurrency investors. Kaspersky said that the group built an extensive social media presence over several months using AI-generated content and contacting crypto influencers to promote the fake game. “For several months, the attackers were building their social media presence, regularly making posts on X from multiple accounts and promoting their game,” said Larin.

The attack chain also used a validator in the form of shellcode that gathered system information to determine if the infected device was worth further exploitation. The payload delivered after this phase remains unknown.

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Radiant Capital Hacker Transfers $52M in Stolen Funds to Ethereum

Lawrence Damilola — Thu, 24 Oct 2024 14:55:26 +0000

The hacker responsible for the recent theft from the decentralized finance (DeFi) protocol Radiant Capital has transferred nearly all of the stolen assets to the Ethereum network.

Blockchain security firm PeckShield reported today that the exploiter moved around 20,500 Ether, valued at approximately $52 million, from layer-2 networks Arbitrum and Binance’s BNB Chain to Ethereum. PeckShield confirmed that “swapping to Ether quickly can help the hacker secure their funds before any preventative measures are taken by authorities or the issuers of centralized tokens.”

Radiant Capital, a cross-chain DeFi lending protocol, was hacked for over $50 million in a cyberattack on Wednesday last week.

The platform, which operates across multiple networks, including Ethereum, Binance’s BNB Chain, and Arbitrum, halted its lending markets following the breach. Yesterday, Radiant Capital warned users, urging them to revoke approvals for affected smart contracts. “Failing to do so puts your funds at risk of being drained,” the platform stated.

Details of the Radiant Capital Attack

The team at Radiant revealed that the exploit was not a typical smart contract vulnerability but a result of compromised developer devices. On October 18, the protocol’s developers shared that hackers had injected malware into the devices of at least three core team members, giving them control over the multi-signature wallet. This allowed the attackers to transfer the funds from the platform.

Radiant Capital’s total value locked (TVL) has sharply declined since the incident, dropping by 66% to approximately $24 million, according to DeFiLlama. This is the second major attack on the protocol in 2024. In January, Radiant Capital was targeted in a $4.5 million flash loan exploit, temporarily suspending its lending operations.

Crypto Hacks and Fund Obfuscation

Hackers in crypto frequently move stolen funds to Ethereum, using mixers like Tornado Cash to obscure the trail. This method has been employed in several high-profile hacks this year, targeting platforms like WazirX, CoinStats, and Pancake Bunny. PeckShield reported cumulative losses from crypto hacks in September 2024 exceeded $120 million, making it one of the most active months for DeFi-related exploits.

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The Verge Upgrade Explained: Ethereum Nodes on Your Phone?

Lawrence Damilola — Thu, 24 Oct 2024 14:29:28 +0000

Ethereum co-founder Vitalik Buterin has outlined the network’s upcoming upgrade, known as “The Verge.”

The upgrade is designed to improve Ethereum’s security and reduce the hardware requirements to run a node, allowing the network to operate on smaller devices such as smartphones and smartwatches. The Verge introduced a feature called “stateless verification,” which enables nodes to verify blockchain blocks without storing large amounts of data.

Current Ethereum nodes require hundreds of gigabytes of state data to function. Buterin stated that this new approach will make verifying the blockchain affordable for all devices, including mobile and browser wallets and even smartwatches.

Stateless verification is expected to lower the technical barriers for node operators, making it easier for individual users to participate in the network, including those interested in solo staking.

The upgrade also includes a shift toward Verkle trees, a cryptographic structure that reduces proof sizes to enable stateless verification. However, Buterin pointed out concerns about the potential vulnerability of Verkle trees to quantum computing.

He noted that if Ethereum replaces the current KECCAK Merkle Patricia trees with Verkle trees, they may later need to be replaced again due to quantum computing threats. Developers are considering alternatives, such as STARK-based binary hash trees, which offer more excellent resistance to quantum-based risks.

A graph showing the balance among data, computational requirements, and blockchain limits. Source: Vitalik Buterin

Additionally, The Verge includes changes to Ethereum’s gas cost system under Ethereum Improvement Proposal (EIP)-4762, which aims to prepare the network for stateless verification. The proposal adjusts gas fees for resource-intensive cryptographic operations and introduces the concept of “multidimensional gas.”

This separates gas costs for different operations, such as call data, computation, and state access, allowing for better management of network resources as Ethereum reduces its hardware requirements.

Buterin emphasized that these changes will help Ethereum nodes operate on smaller devices and make solo staking more accessible to users.

Overall, The Verge is designed to reduce hardware demands while improving the scalability and security of the Ethereum network.

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What Are Shiboshis? Exploring Shiba Inu’s Unique NFT Collection

Lawrence Damilola — Thu, 24 Oct 2024 12:31:18 +0000

The cryptocurrency world is no stranger to innovation and creativity, and the Shiba Inu project is a prime example of this dynamic spirit. Originating as a meme coin, Shiba Inu has expanded its ecosystem to include a unique collection of Non-Fungible Tokens (NFTs) known as Shiboshis. This guide delves into what Shiboshis are, their benefits, and their role in the Shiba Inu ecosystem.

What Are Shiboshis?

Shiboshis are a collection of 10,000 unique NFTs launched by the Shiba Inu cryptocurrency project. Each Shiboshi is a one-of-a-kind digital collectible inscribed on the Ethereum blockchain—the epicenter of NFT culture and the platform where Shiba Inu began its crypto journey.

Inspired by the Shiba Inu dog breed, these NFTs feature a variety of fun and eccentric traits, from laser eyes to party hats. Each Shiboshi boasts individual characteristics that give it a unique identity, making it highly sought after by collectors and enthusiasts alike.

However, Shiboshis are more than just digital art pieces; they are integral to the Shiba Inu ecosystem, offering utilities and benefits beyond mere ownership.

Shiboshi NFT Benefits and Utilities

Owning a Shiboshi NFT is like holding a golden ticket within the Shiba Inu community. Here’s a look at the perks that come with being a Shiboshi holder:

1. Access to the Shiboshi Social Club

The Shiboshi Social Club is an exclusive group akin to a members-only society for the SHIB Army—the passionate community behind Shiba Inu. This elite club provides a space for members to network, share insights, and celebrate their enthusiasm for the Shiba Inu ecosystem.

Being part of this club offers direct communication channels with Shiba Inu developers. This access allows members to engage in discussions, ask questions, and receive firsthand information about upcoming developments, giving them an insider’s perspective on the project’s future.

Moreover, the Shiboshi Social Club often serves as a hub for early announcements and alpha releases, enabling members to stay ahead of the curve and participate in new initiatives before the wider community.

2. Potential Role in SHIB: The Metaverse

While official details are yet to be confirmed, Shiboshis are anticipated to play a significant role in SHIB: The Metaverse, the forthcoming virtual world and digital playground for the Shiba Inu community.

Shiboshis may transcend their status as static NFTs to become interactive avatars or digital entities in this immersive environment. Their unique traits—such as laser eyes or special attire—could translate into specific utilities or abilities within the metaverse. For example, a Shiboshi with laser eyes might possess enhanced vision or special powers in the virtual world.

Additionally, exclusive areas or events within the metaverse could be accessible only to Shiboshi holders, offering unique experiences and fostering a deeper sense of community among members.

It’s important to note that these possibilities are speculative and await official confirmation. However, the potential integrations add an exciting dimension to Shiboshi’s ownership.

3. Integration with Shiba Inu Games

The Shiba Inu ecosystem is expanding into the gaming industry, with projects like Shiba Eternity capturing the community’s interest. Shiba Eternity is a strategic trading card game set within the Shiba Inu universe, where players can create Shiboshi avatars and engage in battles against others.

4. Shiboshi Renaming Feature

Shiboshi holders can rename their Shiboshis for a fee of $100 paid in SHIB tokens, adding a personal touch to their NFTs. This feature allows owners to customize their collectibles, enhancing their uniqueness and personal connection.

The renaming mechanism also contributes to the Shiba Inu ecosystem’s tokenomics. The SHIB tokens used for renaming are automatically burned, reducing the total supply and potentially increasing the token’s value over time.

Shiboshi Pros

Utility-Driven: Shiboshis offer tangible benefits beyond digital ownership, such as access to exclusive clubs and potential integrations in games and the metaverse.

Innovative Tokenomics: Features like the renaming mechanism provide unique ways to personalize NFTs while contributing to the ecosystem through token burning.

Active Development: The Shiba Inu team’s commitment to ongoing development ensures that Shiboshis remain relevant, with new features and utilities on the horizon.

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ShibaSwap: A Deep Dive into Shiba Inu’s Native DEX

Lawrence Damilola — Wed, 23 Oct 2024 17:41:45 +0000

The decentralized finance (DeFi) landscape has exploded with innovation, offering crypto enthusiasts new ways to engage with digital assets. One intriguing entrant in this space is ShibaSwap, a DeFi platform born from the Shiba Inu (SHIB) meme coin phenomenon.

ShibaSwap extends beyond the meme, providing users with a suite of financial services, including staking, swapping, and liquidity provision. This guide offers a comprehensive look at Shiba Inu’s DEX, exploring its features, tokens, and how it fits into the DeFi ecosystem.

ShibaSwap: An Introduction

Launched in July 2021, ShibaSwap is the native decentralized exchange (DEX) of the Shiba Inu project. Built on the Ethereum blockchain, it aims to offer a secure and user-friendly platform for trading cryptocurrencies. Shiba Inu’s DEX distinguishes itself by integrating meme culture with serious DeFi functionality, leveraging the popularity of the SHIB token while introducing additional tokens and features that enhance user engagement.

Tokens in which ShibaSwap operates with include:

Shiba Inu (SHIB): The original token started as a meme but has since gained substantial traction. SHIB is used for staking and liquidity provision within ShibaSwap.

Leash (LEASH): With a total supply of only 107,646 tokens, LEASH is designed to offer exclusivity. The Leash token is an important aspect of the Environmental Council of Shib State, especially the Protection & Policy Sector

Bone (BONE): BONE serves as the governance token. It allows holders to participate in the ShibaSwap DAO (Decentralized Autonomous Organization), influencing the platform’s development and proposals.

ShibaSwap: Core Features

Shiba Inu’s DEX offers several key functionalities that allow users to interact with the DeFi space effectively:

1. Liquidity Provision

The liquidity provision features enable users to provide liquidity to various token pairs on the platform. By adding liquidity, users receive ShibaSwap Liquidity Provider (SSLP) tokens, representing their share in the pool. In return, they earn rewards in BONE tokens, incentivizing participation in maintaining the platform’s liquidity.

2. Staking

Users can stake their SHIB, LEASH, or BONE tokens through the Bury function. Staking locks the tokens in smart contracts, helping to secure the network. In exchange, stakers receive xSHIB, xLEASH, or tBONE tokens, which accrue rewards over time.

3. Swap (Token Exchange)

The Swap feature allows users to exchange one ERC-20 token for another directly on the platform. Utilizing automated market maker (AMM) protocols, Shiba Inu’s DEX facilitates seamless and decentralized token swaps without intermediaries.

4. Yield Farming

The yield farming feature is where users can claim their returns from liquidity provision. Rewards are distributed in BONE tokens, and users can “woof” their returns by redeeming SSLP tokens.

5. NFTs (Non-Fungible Tokens)

ShibaSwap has also ventured into the NFT space with Shiboshis, a collection of 10,000 unique Shiba Inu-themed NFTs.

Shiboshi NFT owners possess much more than simple pixel art. Every Shiboshi serves as a key, opening doors to unique opportunities and fostering a stronger bond within the Shiba Inu community and its supporters.

ShibaSwap: How To Use

Engaging with ShibaSwap involves a few straightforward steps:

Set Up a Wallet: Use an Ethereum-compatible wallet like MetaMask or Trust Wallet.
Acquire Tokens: Purchase SHIB, LEASH, or BONE from exchanges that list them.
Connect Wallet to ShibaSwap: Visit the DEX’s official website and connect your wallet by following the on-screen prompts.
Choose an Activity: Decide whether you want to dig (provide liquidity), bury (stake tokens), or swap tokens.
Confirm Transactions: Execute your chosen activity by confirming the transaction in your wallet. Be mindful of Ethereum gas fees.

Security Measures and Audits

Security is paramount in DeFi platforms, and ShibaSwap has taken steps to ensure user confidence:

CertiK Audit: ShibaSwap underwent a security audit by CertiK, a leading blockchain security firm. The audit assessed the platform’s smart contracts and found no critical issues, enhancing its credibility.
Multi-Signature Wallets: The platform uses multi-signature wallets for administrative functions, reducing the risk of a single point of failure.
Decentralization: By distributing control through its governance token (BONE), ShibaSwap minimizes centralized risks, aligning with DeFi principles.

The Community and Governance

Shiba Inu’s DEX thrives on community involvement. Holders of BONE tokens can participate in governance through the Doggy DAO. This decentralized approach allows users to propose and vote on changes, ensuring the platform evolves according to the community’s needs.

ShibaSwap: The Future

ShibaSwap continues to develop new features and partnerships. Upcoming initiatives include:

The 2.0 Version: An anticipated upgrade to improve the platform’s interface and add new functionalities.
Enhanced NFT Integration: Plans to expand the utility of Shiboshis within games and the metaverse.

Shiba Inu’s DEX represents a significant evolution from a meme coin to a comprehensive DeFi platform. By offering a range of services like staking, liquidity provision, and token swapping, it provides users with multiple avenues to engage with the crypto ecosystem.

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Peter Todd Goes Into Hiding After HBO Documentary Sparks Harassment

Lawrence Damilola — Wed, 23 Oct 2024 16:02:51 +0000

Bitcoin core developer Peter Todd has been facing persistent harassment after being falsely identified as Satoshi Nakamoto in an HBO documentary released on October 8.

Todd quickly refuted the claims, but the documentary pointed to him as the main suspect behind the pseudonymous creator of Bitcoin.

In a recent Wired interview, Todd shared that the false identification has led to numerous individuals contacting him, many asking for money. Todd revealed that one person sent him 25 emails within two days requesting assistance with a loan.

Todd has since taken measures to protect his safety, citing concerns similar to those Satoshi Nakamoto might have had for maintaining anonymity. He explained that the pressure and risks associated with being linked to such a significant figure have prompted him to go into hiding.

Peter Todd Criticizes the Pursuit of Satoshi Nakamoto’s Identity

Despite his efforts to clarify the situation, Todd continues to face public interest and scrutiny. He pointed out that while he has contributed significantly to improving Bitcoin’s security and scalability, his work has always focused on refining the system rather than creating it. On the other hand, Satoshi Nakamoto is credited with developing Bitcoin’s core technology, including decentralized finance and trustless exchanges.

Todd also believed that searching for Satoshi Nakamoto’s identity was unnecessary. He argued that Bitcoin has thrived under a decentralized and merit-based system, where ideas are debated and adopted through consensus rather than under the influence of a central figure. He said that even being falsely identified as Nakamoto has exposed him to significant personal risks, and being correctly identified would be far worse.

Todd also suggested that the filmmaker behind the HBO documentary used the Satoshi Nakamoto claim to generate attention. “He needed a way to get attention for his film,” he stated.

Satoshi Nakamoto’s Anonymity Remains Protected

Satoshi Nakamoto’s identity has remained a mystery since Bitcoin’s inception. From the beginning, Nakamoto used a pseudonym and took careful steps to conceal personal information, interacting with the cryptocurrency community solely through online channels.

Many speculate that Nakamoto holds a significant amount of Bitcoin, making the individual one of the wealthiest people in the world if identified. However, this wealth would expose Nakamoto to legal actions, tax scrutiny, and potential personal threats, all strong reasons to remain anonymous.

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Tesla Still Has $780M Bitcoin Despite Transfers to Unidentified Wallets – Report

Lawrence Damilola — Wed, 23 Oct 2024 15:48:06 +0000

Tesla likely retains its entire Bitcoin collection, valued at around $780 million, despite transferring the assets to anonymous wallets on October 15, according to blockchain analytics firm Arkham Intelligence.

The electric vehicle manufacturer reportedly transferred 11,509 Bitcoin across seven different wallets, with each wallet containing between 1,100 and 2,200 Bitcoin. The two largest ones, identified as “1Fnhp” and “1LERL,” received $142.2 million and $128.1 million, respectively.

Despite initial concerns that Tesla might be preparing to sell its Bitcoin, Arkham Intelligence clarified in yesterday’s post on X (formerly Twitter) that these transfers appear to be part of a “wallet rotation,” suggesting Tesla still holds its entire Bitcoin stash. The transferred Bitcoin has remained in the new wallets since October 15, with no further movement detected.

Market Reaction to Tesla’s Bitcoin Moves

The large-scale transfers sparked speculation across social media platforms about the potential impact on Bitcoin’s price. However, the transfers did not trigger any significant price volatility. According to data from CoinGecko, Bitcoin’s price rose by 5% from $66,387 to $69,220 between October 15 and October 21. Since then, the price has pulled back by 2.3% to $67,600.

There has been speculation that the funds may have been moved to a custodian, possibly to secure a loan against the Bitcoin. Tesla currently uses Coinbase Prime Custody to store its cryptocurrency assets, though it remains unclear why the funds were transferred.

Tesla’s Status Among Top Bitcoin Holders

If Arkham Intelligence’s analysis is accurate, Tesla remains one of the largest corporate Bitcoin holders, trailing behind companies like MicroStrategy and Bitcoin miners Marathon Digital and Riot Platforms. Tesla first acquired $1.5 billion worth of Bitcoin in February 2021 and continues to hold a substantial portion of that investment.

SpaceX, another company owned by Tesla CEO Elon Musk, also holds significant Bitcoin holdings. The company possesses 8,285 Bitcoin, valued at around $560 million, making it the seventh-largest Bitcoin holder among private firms.

Tesla’s third-quarter earnings call, scheduled for October 23, may offer additional insight into the company’s plans for its Bitcoin holdings. At present, however, there has been no indication that Tesla plans to sell any of its cryptocurrency.

The post Tesla Still Has $780M Bitcoin Despite Transfers to Unidentified Wallets – Report first appeared on The Shib Daily.

Tether CEO Slams the US for Lagging in Crypto Regulations

Lawrence Damilola — Wed, 23 Oct 2024 15:43:42 +0000

Tether CEO Paul Ardoino has criticized the United States for lagging behind in developing cryptocurrency regulations, and suggested that progress might be seen after the elections.

Speaking at the DC Fintech Week conference yesterday, Ardoino expressed concern over the U.S.’s current stance on crypto regulation.

“There is no place like the U.S,,” he said, emphasizing that the country has traditionally been a leader in technological advancement. However, he noted, “This is the first time in history that I see the U.S. dropping the ball,” referring to its handling of crypto policies.

The United States crypto industry has been pushing for regulations tailored explicitly to digital assets, arguing that existing rules in the financial industry do not align with crypto companies’ needs.

Some observers in the industry have suggested that the lack of clear regulations has led to a migration of crypto firms from the country. “Whoever will win the elections, I think it is very, very important that crypto regulation, sensible crypto regulations, and stablecoin regulations will come to fruition in a way that will protect the end-users,” added Ardoino.

US Role in Global Crypto Regulation

Ardoino emphasized the global significance of the United States in shaping crypto regulations, stating that every regulator around the world looks to the U.S. for guidance on this issue. “The US has huge importance in this dialogue,” he said, adding that the right regulations could have a far-reaching impact.

The crypto industry in the U.S. has spent at least $130 million during this election cycle, largely supporting Republican candidates in Senate and House races. Republican presidential candidate Donald Trump has made passing crypto-friendly laws part of his campaign promises, while Democratic rival Kamala Harris also expressed support for cryptocurrency, specifically in her outreach to Black male voters.

Tether’s Focus on Transparency

In addition, Ardoino highlighted Tether’s commitment to transparency and communication. He mentioned that the company is “doubling down” on these efforts, given past regulatory scrutiny. “Compliance is very, very important,” Ardoino said, acknowledging that Tether had been perceived differently in the past, particularly in the US.

In 2021, the US Commodity Futures Trading Commission fined Tether $41 million for making “untrue or misleading statements” regarding the backing of its USDt token. Ardoino reiterated Tether’s focus on improving its communication and transparency efforts, stating, “We are actually doubling down on that.” Tether has also faced calls from US lawmakers for investigations into its involvement in illicit finance, which the company has denied.

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Vitalik Buterin Rejects Michael Saylor’s Bitcoin Custody Proposal

Lawrence Damilola — Wed, 23 Oct 2024 15:20:33 +0000

Vitalik Buterin, co-founder of Ethereum, has strongly criticized MicroStrategy’s Michael Saylor for suggesting that Bitcoin users should rely on large financial institutions to hold their cryptocurrency.

In a post on X (formerly Twitter) yesterday, Buterin described Saylor’s suggestion as “batshit insane,” referring to a growing debate in the crypto community over Bitcoin custodianship.

Buterin’s comments came in response to Saylor’s recent statement advocating that Bitcoin holders trust “too big to fail” banks like BlackRock and Fidelity to safeguard their assets. Saylor, in an interview on Monday, argued that these institutions, with government and regulatory backing, are better suited to serve as custodians of Bitcoin.

Saylor asserted that Bitcoin holders stand to gain everything by transferring their Bitcoin to institutions, arguing that fears regarding the U.S. government interfering with their self-custody rights are unfounded. He said these are just the thoughts of “paranoid crypto-anarchists.”

According to Saylor, large financial entities are “engineered” to handle assets safely, which could offer additional protection to Bitcoin holders.

The suggestion marks a shift from Saylor’s previous support for Bitcoin self-custody, a practice widely promoted to reduce reliance on intermediaries and protect users from potential risks tied to centralized control. Saylor’s latest comments have sparked backlash from prominent figures in the crypto space, including Buterin.

Criticism from the Crypto Community

Jameson Lopp, chief security officer of Bitcoin custody firm Casa, also criticized Saylor’s proposal. Lopp emphasized the importance of self-custody, arguing that it strengthens the Bitcoin network. According to Lopp, placing Bitcoin into the hands of large financial institutions could increase systemic risks, such as asset seizure and loss, and stifle innovation. He pointed out that relying on such institutions could limit participation in Bitcoin’s governance.

Bitcoin self custody isn't just about being a paranoid mountain man. There are many long-term negative ramifications to convincing people to trust third party custodians.

1. Centralizing coins into a few hands increases systemic risk of loss and seizure.
2. Bitcoiners get…
— Jameson Lopp (@lopp) October 22, 2024

ShapeShift founder Erik Voorhees added his voice to the criticism. Voorhees stated that the ability to withdraw Bitcoin into self-custody is essential to preventing centralization and the corruption that can arise from it. He further remarked that Saylor’s casual dismissal of this fundamental concept deserved the backlash he was receiving from the crypto community.

Saylor’s remarks were part of a broader discussion about the future of Bitcoin custody. They came just weeks after the collapse of the crypto exchange FTX, where users lost access to their Bitcoin. Saylor’s comments have continued to draw criticism as the debate over Bitcoin’s custodianship deepens.

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CoinSwitch CEO Accuses WazirX of Transferring $73.6M After Cyber Attack

Lawrence Damilola — Tue, 22 Oct 2024 15:44:47 +0000

CoinSwitch CEO Ashish Singhal has claimed that WazirX transferred approximately $73.6 million in users’ crypto assets to global exchanges Bybit and KuCoin following a $234 million cyber attack in July.

Singhal raised the accusation on Monday as CoinSwitch introduced a public dashboard designed to track wallet activities in response to WazirX’s recent wallet disclosures.

WazirX recently filed an affidavit with the Singapore High Court, disclosing over 240,000 wallet addresses as part of its ongoing debt restructuring process. Singhal explained that CoinSwitch holds both fiat and crypto assets with WazirX, but the exchange “illegally” suspended withdrawals. In response, CoinSwitch used its own treasury to ensure users’ funds were covered.

Making sense of WazirX’s wallet disclosure for users

Crypto exchange WazirX — which allegedly faced a cyberattack in July 2024 — has released over 240,000 wallet addresses as part of an affidavit they filed in the High Court of Singapore.

These many wallet addresses can be… pic.twitter.com/QfaEmuQXUZ
— Ashish Singhal (@ashish343) October 21, 2024

CoinSwitch Legal Dispute Over Trapped Funds

CoinSwitch mounted legal action against WazirX in July, revealing that it has $9 million in trapped funds with the exchange. According to Singhal, the amount represents less than 1% of CoinSwitch’s total assets. The company has now made its tracking dashboard public to address transparency concerns. “Now, we are making that dashboard publicly available in the hope that it will be of some help to crypto investors at large,” Singhal said.

He further stated that CoinSwitch had identified the movement of $72.13 million worth of crypto to Bybit and $1.5 million to KuCoin after the cyber attack.

WazirX CEO Responds to Accusations

WazirX CEO Nischal Shetty acknowledged the funds’ transfer to other exchanges but clarified that the movement was unrelated to trading. “Funds were moved to some exchanges because we are still onboarding a custodian,” Shetty said on X. “This process is taking longer than expected, and we need to be thorough in our assessment and carefully explore all options.”

POR work is ongoing. Team is aiming to complete it asap so we can share it with everyone.

There have been false claims circulating that funds were moved to exchanges to trade!

Funds were moved to some exchanges because we are still in the process of onboarding a custodian. This…
— Nischal (Shardeum) (@NischalShetty) October 22, 2024

A WazirX spokesperson criticized CoinSwitch for publishing a dashboard with WazirX’s wallet addresses, noting that it had yet to demonstrate the same level of transparency regarding its own reserves. “It shows how easy it is to build a dashboard, but unfortunately, [CoinSwitch] themselves haven’t built it for their customers who have been demanding it for many years now.”

The spokesperson urged CoinSwitch to implement a real-time Proof of Reserves (POR) and provide its wallet addresses along with a dashboard. They stressed that this level of transparency is crucial for the industry and called on CoinSwitch to “make it real-time and share all of their wallet addresses too.”

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Michael Saylor Faces Backlash Over Bitcoin Custody Comments

Lawrence Damilola — Tue, 22 Oct 2024 15:38:58 +0000

MicroStrategy’s executive chairman, Michael Saylor, faced backlash following his recent comments suggesting Bitcoin holders should entrust their assets to large financial institutions instead of using self-custody.

During an interview yesterday with financial reporter Madison Reidy, Saylor said Bitcoiners “have nothing to lose” when they transfer their Bitcoin to institutions. This statement contrasts with his previous support for self-custody.

When asked about the possibility of the U.S. government restricting Bitcoin holders’ rights to self-custody, Saylor dismissed the notion, calling it a concern of “paranoid crypto-anarchists.” He referred to the fear of a state-mandated Bitcoin seizure as “a myth and a trope” and added, “There’s just a lot of fear that’s unnecessary.” Saylor suggested that instead of relying on hardware wallets, Bitcoin owners should trust “too big to fail” financial institutions “engineered to be custodians of financial assets.”

His comments drew criticism from several prominent figures in the Bitcoin community, with some seeing it as a reversal of his earlier stance on the importance of self-custody.

Bitcoin Advocates Respond to Saylor’s Remarks

Sina, founder of Bitcoin custody and security firm 21st Capital, voiced strong disapproval of Saylor’s recommendation. Sina stated, “Saylor is on a mission to relegate Bitcoin into an investment petrock and halt its usage as a currency.”

Michael Saylor, the leading voice and influencer on Bitcoin by a mile, says:

You don't need to self-custody
You should trust government and institutions
Government would never confiscate your custodial Bitcoin
You're a "paranoid crypto anarachist, and a profit-driven… https://t.co/mRdgUPgC5n
— Joel Valenzuela (@TheDesertLynx) October 21, 2024

Similarly, Simon Dixon, a longtime Bitcoiner and author of “Bank to the Future,” suggested that Saylor’s new position on custodianship might align with MicroStrategy’s business interests. Dixon speculated that Saylor is downplaying the importance of self-custody because it may not benefit MicroStrategy’s long-term strategy to become a Bitcoin bank and offer collateralized loans.

John Carvalho, CEO of Bitcoin payments firm Synonym, also expressed frustration, questioning Saylor’s shift from his previous assertion that “Bitcoin is hope” for individuals. Carvalho added, “I am curious what exactly that means if we must discount the ‘paranoid crypto anarchists’ and their ‘tropes’ as salesmen with ulterior motives.”

You can tell people to go 'f*ck themselves' if they come for you #bitcoin

– Michael saylor pic.twitter.com/WMonJImx7K
— Arsen @ Relai (@satoshibaggins) August 16, 2023

Support for Saylor’s Perspective

Despite the criticism, Saylor’s comments were supported by some in the Bitcoin space. Julian Figueroa, founder and host of “Get Based,” argued that Saylor’s message was directed at institutions rather than individuals. Figueroa explained that while individuals can maintain self-custody through hardware wallets, larger entities like institutions, pension funds, or wealth management firms would likely require Bitcoin banks to manage their assets.

Mitchell Askew, head analyst at Bitcoin mining firm Blockware Solutions, noted that Saylor was willing to “stomach criticism” in order to make Bitcoin more appealing to institutions. Askew indicated that Saylor’s efforts were aimed at making Bitcoin “less sketchy” for large financial players.

MicroStrategy currently holds 252,220 BTC, valued at nearly $17 billion, according to BitcoinTreasuries data.

The post Michael Saylor Faces Backlash Over Bitcoin Custody Comments first appeared on The Shib Daily.

Former Mine Digital CEO Charged with Fraud Over Missing Bitcoin Funds

Lawrence Damilola — Tue, 22 Oct 2024 13:56:57 +0000

Grant Colthup, the former CEO of Australian cryptocurrency exchange Mine Digital, has been charged with fraud after allegedly misappropriating a customer’s $1.47 million (2.2 million Australian dollars).

The Australian Securities and Investments Commission (ASIC) confirmed yesterday that the customer transferred the funds to Mine Digital’s parent company, ACCE Australia, intending to exchange them for Bitcoin. However, the customer never received the cryptocurrency.

ASIC alleges that Colthup used the funds to pay off ACCE’s liabilities, purchase cryptocurrency for other clients, or combine both. This is the latest legal issue for Mine Digital, which collapsed in September 2022, leaving creditors attempting to recover approximately $16 million.

Following an ASIC investigation, the ex-CEO of crypto exchange Mine Digital has been charged with fraud in connection with a $2.2 million transaction https://t.co/tHrFgaHiSD
— ASIC Media (@asicmedia) October 21, 2024

Legal Proceedings Begin in Queensland

Colthup was informed of the fraud charge during a hearing at the Magistrates Court in Ipswich, Queensland, Australia, yesterday. However, the case was adjourned to December 16. Colthup is charged under section 408C of Queensland’s Criminal Code 1899, which carries a potential maximum prison sentence of 20 years.

According to ASIC, the incident occurred when Bitcoin prices ranged between $18,890 and $24,580, based on data from CoinGecko. Given Bitcoin’s current price of approximately $67,460, the stolen funds would now be valued between $4 million and $5.24 million.

Mine Digital Collapse and Financial Shortfall

Mine Digital, which began operations in May 2019, offered various cryptocurrency trading services until its closure in September 2022. When the company entered administration, an initial investigation revealed that ACCE Australia held only $20,000 in assets, far less than the $16 million creditors claimed.

In December 2022, PKF’s business recovery and insolvency partner, Brad Tonks, was appointed as ACCE’s liquidator. By January 2023, PKF was reportedly exploring legal action against Colthup, seeking a court order to compel him to compensate the creditors. The Australian Financial Review reported that PKF was focused on recovering the funds owed to the creditors left out of pocket after the company’s collapse.

ASIC’s investigation into the missing funds remains ongoing while creditors continue to try to reclaim lost assets from Mine Digital and its parent company, ACCE Australia.

The post Former Mine Digital CEO Charged with Fraud Over Missing Bitcoin Funds first appeared on The Shib Daily.

Crypto Regulation Efforts in the US Stalled, Says CFTC Chair

Lawrence Damilola — Tue, 22 Oct 2024 13:14:28 +0000

During a speech at the Securities Industry and Financial Markets Association (SIFMA) annual meeting in New York yesterday, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam highlighted significant challenges in regulating the cryptocurrency market due to stalled legislative efforts.

Behnam emphasized the CFTC’s limited capacity to enforce compliance and oversee the market without proper regulatory framework, expressing concern for the vulnerabilities this creates for market participants and institutional investors.

He acknowledged that progress is unlikely to occur before the year ends but remained optimistic about future developments, stating, “I’m not betting on anything happening necessarily at the end of the year, but there’s a unique appetite that this election, I think, has changed around digital assets and technology.”

SIFMA President Kenneth Bentsen also voiced concerns from the financial industry, noting the growing frustration among brokerage firms. According to Bentsen, firms are questioning whether they can operate successfully without facing enforcement actions or if it will remain a persistent risk.

Crypto Regulation Intensifies Fight vs. Fraud

In response to increasing fraud and manipulation cases in the crypto sector, Behnam confirmed that the CFTC is dedicating more resources to address such issues. At the Chainalysis Links conference, he revealed that the agency had filed 23 crypto-related enforcement actions in the past fiscal year. This figure represents nearly half of all such cases brought by the CFTC since 2015.

Behnam remarked that headlines about significant losses in digital assets due to protocol exploits, phishing attacks, and schemes targeting vulnerable individuals have “become far too common.” The surge in these incidents has prompted the CFTC to intensify its focus on enforcement.

During a confirmation hearing in 2023, Behnam stated that the CFTC was prepared to assume primary responsibility for regulating the cryptocurrency market. The question of whether the CFTC or the U.S. Securities and Exchange Commission (SEC) should take the lead on crypto regulation remains a topic of debate among lawmakers.

The Use of AI in Market Surveillance

Behnam also disclosed that the CFTC has been utilizing artificial intelligence (AI) to improve its oversight of the markets. By incorporating AI tools and analytics, the agency can sift through large volumes of data to detect market manipulation, cyberattacks, and potential compliance issues.

He expressed optimism about the potential of AI in crypto regulation, suggesting that its use could lead to a reduction in enforcement cases. “If we can start to use AI collectively to ensure compliance, I think there’s probably going to be a lot fewer enforcement cases,” he added.

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The Shiba Inu Ecosystem: SHIB, BONE and LEASH Explained

Lawrence Damilola — Tue, 22 Oct 2024 10:10:10 +0000

The Shiba Inu cryptocurrency, launched as a meme coin, has since evolved into a more dynamic ecosystem. This ecosystem currently has three tokens: Shiba Inu (SHIB), DogeKiller (LEASH), and Bone Shbaswap (BONE).

Each token plays a distinct role within the system, offering different utilities to investors and participants. This article will break down these tokens, their roles, and how they differ.

SHIB: The Foundation Token

Shiba Inu (SHIB) is the first token launched in August 2020. Initially created as a meme coin to rival Dogecoin, SHIB has grown far beyond its novelty origins. As an ERC-20 token on the Ethereum blockchain, SHIB is used for various purposes, including trading, staking on ShibaSwap (the ecosystem’s decentralized exchange), and even as a payment method for some merchants. SHIB has a circulating supply of 589.26T coins and a max supply of 999.98T SHIB.

The Shiba Inu ecosystem employs token burn mechanisms, which help reduce the circulating supply and create scarcity, potentially increasing the token’s value over time. SHIB holders can also “bury” their tokens (stake them) to earn rewards, such as BONE tokens.

SHIB has been accepted by various businesses and charitable organizations, allowing users to spend or donate their tokens for various purposes.

LEASH: A Key Token in Shiba Nation-State

While SHIB is abundant, LEASH represents the other end of the spectrum. The token has a fixed supply of just 107,646 tokens. This makes LEASH one of the more scarce assets in the Shiba Inu ecosystem.

The Leash token is integral to the Environmental Council of Shib State, especially the Protection & Policy sector. This sector is essential in upholding the community’s integrity by protecting its fundamental principles. It follows a rigorous oversight process to prevent the misuse of power, whether from within or by external authorities.

At the heart of drafting and enforcing policies that align with the community’s core beliefs, as outlined in “The Canine Code,” this sector is crucial. This code sets the moral standards for the Shib ecosystem. The primary responsibilities of the branch include ensuring the defense of community members’ rights and the safeguarding of their values, Implementing an extensive checks and balances system to limit any potential power misuses within the governance structure, and taking charge of creating and implementing policies that adhere to the principles of “The Canine Code.”

One of LEASH’s key functions is granting holders exclusive access to participate in upcoming projects within the Shiba Inu ecosystem, including land claims in the anticipated metaverse. For instance, locking LEASH tokens can reward holders with land plots in the virtual space.

BONE: The Governance and Gas Fee Token

The third key token is BONE, which functions as both a governance token of ShibaSwap and a gas fee token of Shibarium. With a total supply of 250 million tokens, BONE is used by the community to vote on important proposals through the Doggy DAO (Decentralized Autonomous Organization). This gives holders a say in the future direction of the Shiba Inu project.

In addition to its governance role, BONE serves as the native gas token for Shibarium. This Layer 2 platform is designed to lower transaction costs and increase scalability on the Ethereum network, further integrating BONE into the broader ecosystem. BONE can also be earned through staking and liquidity mining on ShibaSwap. Bone also powers all activities in the Shibarium network.

BONE is required to process transactions within Shibarium, meaning anyone interacting with the ecosystem’s applications, such as NFTs or decentralized applications (dApps), will need to use BONE for transaction fees.

The Synergy of SHIB, BONE and LEASH

These three tokens—SHIB, BONE and LEASH—work together to create a cohesive ecosystem that blends community participation, decentralized finance (DeFi), and tokenomics. SHIB provides widespread accessibility and transactional utility, LEASH offers scarcity and exclusivity, and BONE empowers the community through governance and transactional utility on Shibarium.

The Shiba Inu ecosystem’s growing complexity, including projects like ShibaSwap, Shiboshis NFTs, and the Shib Metaverse, all rely on these tokens to function. As Shiba Inu continues to develop, the interplay between SHIB, LEASH, and BONE will be crucial to its success.

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South Korean Youth Deep In Debt Amid Rise in Crypto Trading – Report

Lawrence Damilola — Mon, 21 Oct 2024 15:41:21 +0000

Reports on October 20 indicate a sharp rise in loan defaults among young South Koreans, with many linking the trend to the growing popularity of cryptocurrency trading.

Data shows that a substantial number of individuals in their teens and twenties are defaulting on loans, particularly from neobanks associated with crypto exchanges.

The South Korean government said Thursday that it has decided to administer a regular mental health checkup for those aged between 20 and 34, starting next year as part of the state-run national health examination program.https://t.co/FbjD67l4Yd
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) October 20, 2024

Loan Default Rates Among Youth in Neobanks

Data from K Bank, a neobank partnered with the cryptocurrency exchange Upbit, reveals that 4.05% of its customers under the age of 30 have defaulted on their loans. The Financial Supervisory Service provided this information following a freedom of information request from lawmaker Kim Jung. The reports indicate that young customers with linked accounts to crypto wallets may have borrowed funds for cryptocurrency investments but are now unable to repay their loans.

South Korean media outlets, such as Segye Ilbo and Digital Daily, noted that K Bank’s default rate among under-30s is notably higher than other neobanks. Kakao Bank, which has a partnership with Coinone, recorded a default rate of 2.1% for customers aged 29 and below, while Toss Bank, which does not currently work with any domestic crypto exchange, had a lower rate of 1.75%.

The overall default by young borrowers has cost South Korean neobanks around $288 million, representing a significant increase of 484% compared to December 2021. The data suggests this rise in defaults coincides with the increase in young people engaging in cryptocurrency trading.

Calls for Stricter Loan Screening

Financial experts said that many young borrowers who linked their bank accounts with Upbit may have borrowed excessively to invest in cryptocurrency. As a result, they have found themselves unable to repay their loans. Kim Hyun-jung, a member of the National Assembly’s Political Affairs Committee, stated, “Neobanks’ loan accessibility offer some positive aspects. But this can also make it easier for young people to take out loans beyond their means. This can expose them to serious financial risks.”

Kim urged neobanks to adopt stricter screening processes, suggesting that more discerning loan practices are necessary to prevent further issues. “We need measures that stop young people from taking out loans they can’t pay back,” Kim emphasized, stressing the importance of preventing overborrowing among young crypto traders.

K Bank, which is gearing up for an initial public offering (IPO) at the end of October, has seen a large influx of accounts from younger South Koreans interested in crypto trading. However, this rise in activity has also been accompanied by increasing concerns over loan defaults. As neobanks like K Bank continue to grow, attention is focused on their lending practices and the potential risks posed by customers involved in cryptocurrency trading.

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Bitcoin Should Be Taxed or Banned, Say ECB and Federal Reserve Reports

Lawrence Damilola — Mon, 21 Oct 2024 15:15:33 +0000

A recent Federal Reserve Bank of Minneapolis paper proposes that assets like Bitcoin should be taxed or banned to help governments manage permanent deficits.

The paper, published last Thursday, argues that in an economy where the government relies on nominal debt to maintain permanent deficits, Bitcoin poses challenges for policy implementation. The researchers claim that Bitcoin (BTC) introduces what they describe as a “balanced budget trap,” where the government is forced to balance its budget, disrupting its ability to sustain a permanent deficit.

The paper uses Bitcoin as an example of private-sector security with a fixed supply and no real resource claims, concluding that banning or taxing the asset could solve this problem. “A legal prohibition against Bitcoin can restore unique implementation of permanent primary deficits, and so can a tax on Bitcoin,” the report stated.

The United States, which has a total national debt of $35.7 trillion, currently faces a primary deficit of around $1.8 trillion. A recent Reuters report pointed to a 29% rise in interest costs for Treasury debt, which reached $1.13 trillion, as a key factor contributing to the fiscal 2024 deficit. The Federal Reserve paper suggests that regulating Bitcoin could help governments manage these fiscal challenges.

ECB Report Claims Bitcoin Wealth Transfer Favors Early Investors

In a separate development, a European Central Bank (ECB) report claims that Bitcoin’s structure disproportionately benefits early investors at the expense of newer market entrants. The paper argues that Bitcoin’s limited supply and decentralized nature have created a system in which early holders can sell at a profit, leading to what the authors describe as an unfair transfer of wealth.

The same report suggests that strict price controls or an outright ban on Bitcoin could prevent this perceived wealth transfer. The authors also raised concerns about Bitcoin’s use in illegal activities but noted that fiat currencies remain the most common means of facilitating illicit transactions.

Jürgen Schaaf, an adviser to the ECB’s Senior Management, echoed the paper’s findings. On Oct. 20, he wrote on social media, “Non-holders should recognize that Bitcoin’s rise is fueled by wealth redistribution at their expense,” and advocated for policies that could either limit Bitcoin’s growth or eliminate it entirely.

Despite these criticisms, interest in Bitcoin continues to grow. A survey by Charles Schwab revealed that 45% of U.S. investors plan to invest in cryptocurrencies through exchange-traded funds (ETFs) in the coming year, with growing demand among millennials.

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Vitalik Buterin Proposes Solutions to Ethereum Staking Centralization Issues

Lawrence Damilola — Mon, 21 Oct 2024 11:30:01 +0000

Ethereum co-creator Vitalik Buterin has proposed several changes to address centralization concerns in Ethereum’s staking and block production.

In an X post yesterday, Buterin emphasized that staking centralization poses one of the most significant risks to Ethereum, as economies of scale are pushing smaller staking pools to join larger ones. He expressed concern that two entities, Beaverbuild and Titan Builder, built 88% of all Ethereum blocks in just the first two weeks of October.

Possible futures of the Ethereum protocol, part 3: The Scourgehttps://t.co/mtzH1ZxTak

(I tried my best to be fair to all sides of the debates here!)
— vitalik.eth (@VitalikButerin) October 20, 2024

Buterin explained that while 30% of Ether (ETH) is currently staked, which is sufficient to protect the network from 51% attacks, further centralization could lead to additional risks. “One of the biggest risks to the Ethereum L1 is proof-of-stake centralizing due to economic pressures,” Buterin wrote, warning that if nearly all Ether were staked, the process could become less profitable and impose more obligations on holders.

He also cautioned that staking could weaken Ethereum’s slashing mechanism, which penalizes improper actions in staking. Buterin raised the concern that a liquid staking token could take over Ether’s role as a dominant network asset. To prevent these issues, he recommended placing a cap on the amount of Ether a user can stake and limiting penalties for stakers to 12.5% of the amount staked. He suggested a two-tier system that includes both “slashable” (risk-bearing) and “unslashable” (risk-free) options.

Block Production Centralization Concerns

In addition to staking, Buterin discussed the centralization of block production. He noted that the current system, which separates block builders from proposers, has led to the concentration of block-building power among a small number of entities. Ethereum researcher Toni Wahrstätter recently highlighted that Beaverbuild and Titan Builder constructed 88.7% of Ethereum blocks during the first two weeks of October.

Over the past two weeks, two block builders, Beaverbuild and Titan Builder, have produced 88.7% of all blocks.

This trend is primarily driven by the rise of private order flow (XOF), sold exclusively by certain apps. XOF reduces genuine competition among builders in the block… pic.twitter.com/6o96iLQLCv
— Toni Wahrstätter ⟠ (@nero_eth) October 17, 2024

Buterin warned that this concentration of block production could lead to a higher risk of transaction censorship and longer wait times for transactions to be included in blocks. He pointed out that users could experience delays of up to 114 seconds, compared to the current six seconds, as a result of centralization in block production.

To address this issue, Buterin proposed the “fork-choice-enforced inclusion lists,” which would return the responsibility of choosing transactions to proposers while allowing builders to focus on transaction ordering. Another proposed solution is “BRAID,” which would split block production across multiple actors, ensuring that no single entity could dominate the process.

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NFT Market Collapse: Is Your Digital Monkey Worth Less Than Your Coffee Now?

Lawrence Damilola — Sat, 19 Oct 2024 22:22:43 +0000

Oh, NFTs, how the mighty have fallen. If you’re still clutching onto your digital Bored Ape or that CryptoPunk you overpaid for in 2021, it might be time to start questioning your life choices. The NFT market has been in free fall for months, and September 2024 was no different.

In fact, NFT sales volume plummeted to about 21.2% last month, leaving many traders wondering if this digital art phase is just another casualty of crypto hype.

NFT sales in the last 30 days. Source: Cryptoslam

Remember when NFTs were the hottest thing in crypto? Everyone was talking about how your digital monkey was going to fund your retirement or at least help you buy that Lambo. Fast forward to now, and the once-beloved Bored Ape Yacht Club and CryptoPunks are getting traded like forgotten Beanie Babies at a garage sale. Even Ethereum, the powerhouse blockchain that houses most NFTs, saw its NFT trading volume take a 47.7% nosedive. Ouch.

Here’s the kicker: NFT holders are still pretending everything’s fine despite the market downturn. You know the meme, the one with the dog sitting in a burning room saying, “This is fine”? That’s the NFT community right now. They’re still holding onto their JPEGs like they’re gold bars, while the rest of the world looks on in bemusement. The truth is, NFTs went from being hailed as the future of art and ownership to being… well, let’s just say people are starting to realize you can’t pay rent with a cartoon penguin.

BAYC and CryptoPunks weren’t the only casualties in this digital art massacre. Other collections, like Pudgy Penguins, saw their trading volume drop by a chilling 55.3%. The NFT market across key blockchains like Bitcoin, Ethereum, and Solana continued to shrink, proving that even the OGs in the space aren’t immune to the crash.

But don’t worry! Some collections will always “buck the trend,” like Bitcoin Puppets and NodeMonkes, which saw slight volume increases. The question is: are those just the next to go extinct? Or are they the last spark in a dying fire?

Bottom line: If you’re still betting on NFTs reviving their former glory, you might want to reconsider. It seems like the era of NFTs printing millionaires overnight has come and gone. Maybe it’s time to accept that your overpriced pixelated ape is worth less than a cup of Starbucks now. .

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Bitcoin Hits $68K, Flirting with All-Time Highs 🚀💰

Lawrence Damilola — Sat, 19 Oct 2024 16:54:56 +0000

Bitcoin is back! After months of volatility and sideways action, Bitcoin has surged to around $68,000, getting dangerously close to its all-time high of around $69,000. The recent surge has been fueled by a number of factors, including the growing excitement around spot Bitcoin ETFs, short liquidations, and renewed confidence in the broader crypto market.

Source: Coinmarketcap

The ETF Hype

One of the major catalysts behind Bitcoin’s rally is the increasing anticipation around spot Bitcoin ETFs. These investment vehicles are considered the holy grail for crypto adoption because they allow traditional investors to get exposure to Bitcoin without holding the asset. Inflows into these ETFs have driven up demand, increasing the price.

Short Sellers Getting Wrecked

Another key factor pushing Bitcoin upwards is the massive liquidation of short positions. In just 24 hours, over $13.6million worth of short positions were liquidated as Bitcoin’s (BTC) price surged past resistance levels. Every time shorts get squeezed, it acts as rocket fuel for the price, leading to further gains.

The Halving Effect

Let’s not forget the Bitcoin halving that took place earlier this year, reducing the miner rewards from 6.25 BTC to 3.125 BTC. Historically, Bitcoin halvings have always led to supply shocks and price increases, and this cycle seems no different. With less Bitcoin entering the market, supply constraints are kicking in, pushing prices higher.

Meme It: Bitcoin Climbing Back to Glory

This moment is prime meme material. Picture Bitcoin dusting itself off after months of struggle, eyeing the $69K mark like a prizefighter ready for the knockout punch. Or maybe even a “Bitcoin to the Moon” rocket taking off, fueled by ETF hype and short liquidations.

Is Bitcoin on track for a new all-time high, or will it hit resistance and fall back into volatility? Only time will tell, but for now, traders and HODLers alike are enjoying the ride!

Disclaimer: This meme is for entertainment purposes only and should not be taken seriously! It’s not financial advice, legal guidance, or a blueprint for life success. If you’re basing any important decisions on this meme, we applaud your sense of humor but strongly suggest you reconsider.

Remember, memes are here to make you laugh, not to lead you astray. For actual advice, consult a real professional (and maybe leave the memes to us). Use responsibly, have fun, and don’t sue us if your life doesn’t turn into a viral meme itself!

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World Chain vs. Privacy: Are Users Safe, or Just Pawns in a Dangerous Game?

Lawrence Damilola — Fri, 18 Oct 2024 17:04:55 +0000

Sam Altman’s “proof-of-humanity” initiative, formerly known as Worldcoin, has launched a new Ethereum layer-2 blockchain called World Chain.

In a statement released on October 17, the company announced that the 15 million users who have authenticated their identity through iris scans for a “World ID” can now access this new network.

World Chain aims to enhance efficiency and add new features for users of the Worldcoin token, as the company seeks to scale its onboarding process. The network is designed to prioritize verified users — those with World IDs — over bots by providing them with block space and free gas allowances.

In addition, World Chain will host several prominent applications and platforms, including Optimism for interoperability, Uniswap for asset trading, Zerion for real-time APIs, and Alchemy for development support.

Source: Worldcoin

Concerns Over Biometric Data Risks in Centralized World Chain System

The launch of World Chain has introduced important questions regarding the potential risks associated with its biometric data collection and centralized governance. While the project is designed to authenticate users by scanning their irises to create a “World ID,” experts have voiced serious concerns about the future implications of such a system.

Ethereum co-founder Vitalik Buterin is among the prominent figures raising alarm. He pointed out that although Worldcoin claims to prioritize privacy, the technology presents risks tied to centralization and data security.

Buterin asked what could prevent the system from being altered to introduce fake identities or misused for surveillance if changes were made to the Worldcoin protocol. He noted the potential for backdoors in the system’s proprietary algorithms, which could allow unchecked control by its operators. This raises fears that a simple change in the code could lead to significant misuse, affecting millions of users worldwide

The privacy risks of centralized biometric data storage have been echoed by other experts. Hudson Jameson, an Ethereum developer, described the use of biometric data by Worldcoin as “scary” and “creepy,” suggesting that such personal data could be exploited for tracking or surveillance. Moreover, the collection of biometric data, even if hashed, could still lead to security breaches or unauthorized uses, adding another layer of concern.

Other critics argue that the centralized nature of Worldcoin’s system exposes it to serious privacy vulnerabilities. For instance, regulators in multiple countries, including Kenya and Spain, have already taken action against the project, citing concerns over potential misuse and inadequate data protection measures. The scale of such a biometric database could make it a tempting target for malicious actors, amplifying the risks tied to its centralized control.

These concerns about Worldcoin underscore a fundamental issue: while the project aims to distinguish humans from bots, it raises important questions about how such a powerful system could be controlled — and what happens if it falls into the wrong hands.

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Ethereum’s Pectra Fork to Include New Scalability Improvements

Lawrence Damilola — Fri, 18 Oct 2024 17:00:38 +0000

Ethereum developers are preparing to implement an Ethereum Improvement Proposal (EIP) that aims to optimize blob-carrying transactions and enhance the network’s scalability. According to an update shared by Galaxy Digital’s vice president of research, Christine Kim, on October 17, EIP-7742 is set to be included in the upcoming Pectra fork.

quick update from acdc #144, devs have officially included eip 7742 in pectra, eip 7742 creates a mechanism for the CL to dynamically set the blob gas target+max,

with this eip, it's *likely* a blob count increase will also be included in pectra, and *unlikely* other changes to…
— Christine Kim (@christine_dkim) October 17, 2024

The proposal introduces a mechanism for Ethereum’s consensus layer to dynamically adjust the blob gas target and maximum values. Blobs, large temporary chunks of data embedded in Ethereum transactions, were introduced to make layer-2 transactions more efficient and affordable. Vitalik Buterin, Ethereum’s co-founder, recently indicated that the current blob count is nearing capacity, which could hinder scalability. Kim noted that increasing the blob count is likely to be part of the Pectra upgrade.

Flexibility in Blob Handling

Ethereum developer Alex Stokes commented on GitHub that EIP-7742 would make blob handling more flexible by adjusting the blob parameters to align with target values and maximum limits. This change aims to reduce the rigidity of the current fixed blob count and improve the network’s ability to process transactions.

The Pectra fork is expected to happen either by the end of 2024 or early in 2025. Blobs were first introduced through EIP-4844 as part of the Dencun upgrade, which went live on March 13, 2024. Another proposal, EIP-7623, is also under consideration, which could free up more blob space by reducing the maximum block size from 2.7 megabytes to around 1 megabyte.

Ethereum Mainnet Revenue Decline

Layer-2 solutions have led to a decline in the Ethereum mainnet’s share of total network revenue. According to Matthew Sigel, head of digital asset research at VanEck, the revenue ratio between Ethereum and its layer-2 networks has shifted to 10:90 over the past four months. This shift has impacted previous predictions for Ether’s long-term price performance.

First of all, the #ETH $22k price target is for 2030, whereas the Election Prediction was for 2024.

But I do agree that the changing fundamentals suggest a model update is in order.

We assumed a 50:50 split on TVL between Ethereum and L2s and 50:50 split on projected MEV (which… https://t.co/RB1ZRVzLaN pic.twitter.com/GiPoQT7IYA
— matthew sigel, recovering CFA (@matthew_sigel) October 17, 2024

Sigel noted that the prediction for Ether surpassing $22,000 by 2030 was made based on the assumption of a 90:10 revenue split, which has not been the case. If the current revenue ratio continues, Sigel estimates that VanEck’s target price for Ether would drop to $7,330. Additionally, decentralized exchange Uniswap has shifted to its own layer-2 solution, Unichain, which could further affect Ethereum’s revenue share.

Meanwhile, Ethereum developers have reacted to the update. One developer known as “@dapplion” said “Don’t underestimate our ability to stuff forks even more last minute”

Don't underestimate our ability to stuff forks even more last minute
— Lion ⟠ dapplion .eth (@dapplion) October 18, 2024

Other developers have responded negatively to the news.

So corporate centralized ethereum won?
— ethereanbull.eth (@ethereanbull) October 17, 2024

At the time of publication, Ether was trading at $2,618, and according to Coinmarketcap, it had increased by 0.96% in the last 24 hours

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AI Robots Hacked to Perform Harmful Tasks; 100% Jailbreak Rate – Study

Lawrence Damilola — Fri, 18 Oct 2024 16:55:39 +0000

Researchers from Penn Engineering have successfully hacked AI-powered robots, manipulating them to perform actions typically blocked by safety and ethical protocols.

The findings, published yesterday, detail how the research team used an algorithm called RoboPAIR to bypass safety measures in three AI robotic systems: the Unitree Go2, Clearpath Robotics’ Jackal vehicle, and NVIDIA’s Dolphin LLM self-driving simulator.

The study achieved a 100% “jailbreak” rate, a process where safety constraints are circumvented, allowing the AI robots to follow harmful commands. These included instructions to deliver bombs or block emergency exits, actions the robots would typically refuse to perform under normal circumstances.

Chatbots like ChatGPT can be jailbroken to output harmful text. But what about robots? Can AI-controlled robots be jailbroken to perform harmful actions in the real world?

Our new paper finds that jailbreaking AI-controlled robots isn't just possible.

It's alarmingly easy. pic.twitter.com/GzG4OvAO2M
— Alex Robey (@AlexRobey23) October 17, 2024

Jailbreaking AI Systems for Physical Harm

Alexander Robey, lead author of the study, emphasized the severity of these vulnerabilities. “When prompted with malicious instructions, LLM-controlled robots can be fooled into performing harmful actions,” Robey said.

The research demonstrated that AI models integrated into physical systems could be exploited to perform tasks they are designed to avoid, such as “knocking shelves onto people” or engaging in dangerous behaviors like “running red lights” or “delivering bombs.”

The team developed RoboPAIR specifically to test the limits of AI systems’ safety measures. The results showed that the AI robots hacked could be manipulated by carefully crafted prompts that exploit vulnerabilities in the system’s ethical training. This manipulation allows robots to bypass their programmed restrictions and carry out actions with real-world consequences.

AI Robots Hacked Expose Vulnerabilities

The researchers found that these jailbreaks exploited three primary weaknesses in AI robots: cascading vulnerability propagation, cross-domain safety misalignment, and conceptual deception challenges. These vulnerabilities highlight how AI systems can misinterpret commands and perform harmful actions, even when programmed to reject them verbally.

For example, the study explained how an AI system might refuse to kill someone based on ethical programming. However, it could still perform actions that result in harm by interpreting commands differently. “An attacker could tell the model to ‘play the role of a villain’ or ‘act like a drunk driver,” Robey said, which can lead to unintended consequences in the robot’s behavior.

Before publishing the paper, the research team shared their findings with AI companies and the manufacturers of the robots used in the study to address the vulnerabilities. George Pappas, head of the research team, stated, “Our work shows that large language models are just not safe enough when integrated with the physical world.”

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AI-Powered Fraud Detection Tool Helps U.S. Treasury Recover Billions

Lawrence Damilola — Fri, 18 Oct 2024 16:45:17 +0000

The U.S. Department of Treasury announced yesterday that it recovered $4 billion in fraud and improper payments during the 2024 fiscal year using artificial intelligence (AI) technology.

This is a substantial increase from the previous year when the department recovered $652.7 million in fraudulent transactions.

According to Treasury official Renata Miskell, the department began quietly integrating machine learning AI in late 2022. The technology has been used to analyze large sets of data and detect patterns that indicate fraudulent behavior. “It’s really been transformative,” Miskell said, emphasizing that “leveraging data has upped our game in fraud detection and prevention.”

Miskell explained that fraudsters often attempt to manipulate the system in ways that are difficult to detect. The application of AI has allowed the Treasury to identify hidden patterns that human reviewers might miss. “Fraudsters are really good at hiding,” she said. “They’re trying to secretly game the system. AI and leveraging data helps us find those hidden patterns and anomalies.”

Treasury Uses AI-Powered Fraud Detection for Payment Review

The Treasury currently processes approximately 1.4 billion payments each year, with a total value of around $6.9 trillion. Deputy Secretary of the Treasury Wally Adeyemo stated that the department “takes seriously our responsibility to serve as effective stewards of taxpayer money,” noting the role of AI in these efforts.

In May 2024, the department revealed plans to expand its use of AI, aiming to improve government regulatory and enforcement efforts in the fight against financial crimes. AI technology also helped the department sift through enormous amounts of data quickly and more effectively identify improper payments.

Other Government Departments Adopting AI

Meanwhile, other U.S. government departments have also adopted AI-powered fraud detection initiatives. In September 2023, the Internal Revenue Service (IRS) announced its deployment of AI to review complex tax returns from hedge funds and law firms to identify tax evasion.

Juniper Research estimates that online payment fraud could surpass $362 billion by 2028, reinforcing the need for advanced technologies like AI in government efforts to combat financial fraud.

Overall, the Treasury’s use of AI is part of its ongoing efforts to safeguard taxpayer funds by identifying and recovering improper payments and preventing scam activity.

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Forcount Promoter Juan Tacuri Sentenced to 20 Years in Prison

Lawrence Damilola — Fri, 18 Oct 2024 16:15:16 +0000

Juan Tacuri, the key promoter of the Forcount Ponzi scheme, has been sentenced to 20 years in prison on October 15 by U.S. District Judge Analisa Torres.

According to the U.S. Department of Justice, Tacuri was also ordered to pay $3.6 million in restitution and will face one year of supervised release following his sentence. The Southern District of New York revealed that this Ponzi scheme primarily targeted Spanish-speaking communities and defrauded thousands of investors.

Tacuri was involved in a scheme falsely presenting Forcount as a cryptocurrency mining and trading company. He and others made false promises of high returns, convincing victims that their investments would double within six months.

“Juan Tacuri may have claimed to be involved in cutting-edge cryptocurrency investing, but, in reality, he was running one of the oldest tricks in the book — a Ponzi scheme,” stated U.S. Attorney Damian Williams.

Forcount Promoter Used Extravagant Events to Lure Investors into Ponzi Scheme

Prosecutors revealed that Tacuri and other promoters organized fancy events across the U.S. to attract investors. These events were designed to present the fraudulent investment opportunities as legitimate, convincing participants that they would receive regular payouts. In reality, there was no actual product or service being offered. Instead, the money collected from new investors was used to pay earlier investors, which is the hallmark of a Ponzi scheme.

The court documents also show that Tacuri and his associates spent the funds collected from victims on personal luxuries, including real estate and high-end goods. Investors began reporting issues with withdrawing their funds as early as 2018. Despite these complaints, Tacuri continued to promote the scheme, leaving victims with significant financial losses.

Unmasking the Forcount Scheme

In 2022, U.S. authorities unsealed charges against Francisley da Silva, the founder of Forcount, further exposing the fraudulent operation. Tacuri’s involvement in the scheme culminated in his guilty plea in June 2024 to charges of wire fraud and conspiracy. In July 2024, other Forcount promoters Antonia Perez Hernandez and Nestor Nunez also pleaded guilty to similar charges.

The court ordered Tacuri to forfeit over $3.6 million, including his Florida home. Prosecutors stated that Tacuri misled victims with false promises of financial success while using their money for personal enrichment. Despite increasing complaints, Tacuri and other promoters stopped responding to inquiries by 2021, when the scheme ceased operations.

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New STKD ETF Offers Bold Bet on Bitcoin and Gold as US Election Looms

Lawrence Damilola — Fri, 18 Oct 2024 15:37:43 +0000

Stacked (STKD) has introduced a new exchange-traded fund (ETF) offering leveraged exposure to both Bitcoin (BTC) and gold.

According to a statement, the STKD Bitcoin & Gold ETF (BTGD) was launched on Wednesday. It provides investors with a combined investment in these two assets, which are increasingly viewed as protection against inflation and currency debasement.

The ETF is structured to give investors 100% exposure to both Bitcoin and a gold portfolio for each dollar invested in the fund. This is achieved through a mix of Bitcoin and gold futures, as well as ETFs tracking their respective prices. According to STKD, this ETF provides investors the opportunity to hold both assets simultaneously, offering potential benefits from capital appreciation and portfolio hedging.

The statement revealed: “The bitcoin strategy seeks to capture the price return of bitcoin, investing in bitcoin futures and ETPs, while the gold strategy similarly seeks to capture the price return of gold via investments in gold futures and gold ETPs.”

This is wild, the 2x $MSTR ETF was launched a week ago and already has $72m in aum (for context that puts in top 20% of the 515 ETFs launched this year) despite the 1.75x $MSTR ETF having head start and $357m (top 8% of new launches). Both have robust liquidity too. I didn't… pic.twitter.com/t46B8UIBhm
— Eric Balchunas (@EricBalchunas) September 27, 2024

A report from JPMorgan noted that rising geopolitical tensions and the upcoming U.S. elections are contributing to increased demand for Bitcoin and gold. The report suggests that “rising geopolitical tensions and the coming [U.S.] election are likely to reinforce the ‘debasement trade,’ thus favoring both gold and Bitcoin.” The debasement trade refers to a surge in demand for alternative assets due to concerns about persistent inflation, government deficits, and economic uncertainty.

STKD stated that the launch of the BTGD ETF addresses the ongoing debate between Bitcoin and gold. “One of the more heavily debated narratives has been that of ‘Bitcoin vs. gold,'” STKD explained. “But a discussion built on ‘versus’ misses the larger role that both assets can play for those investors looking for a mix of capital appreciation and portfolio hedging.”

The ETF does not directly invest in Bitcoin or gold but instead uses Bitcoin and gold futures contracts. Retail investors have increasingly turned to leveraged ETFs, and data from Bloomberg Intelligence showed that leveraged MicroStrategy ETFs have surpassed $400 million in net assets, signaling strong interest in volatile Bitcoin-based investments.

STKD’s ETF joins a growing list of proposed cryptocurrency ETFs, including upcoming offerings focused on XRP and Litecoin from other asset managers.

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FBI Arrests Alabama Man for Hacking SEC X Account

Lawrence Damilola — Thu, 17 Oct 2024 18:26:27 +0000

The Federal Bureau of Investigation (FBI) has arrested 25-year-old Eric Council Jr. from Athens, Alabama, for hacking the Securities and Exchange Commission’s (SEC) X account.

According to a press release from the FBI today, Council worked with co-conspirators to gain control of the SEC’s account and post a false message regarding Bitcoin exchange-traded funds (ETFs).

False SEC Post Causes Bitcoin Price Surge

On January 9, 2024, the SEC’s X account falsely posted, “Approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” The message caused Bitcoin’s price to increase by $1,000. The price then dropped by $2,000 after the SEC regained control of its account, deleted the post, and confirmed that the information was false.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— SEC Chair Gary Gensler Archive (@GenslerArchive) January 9, 2024

The SEC ultimately approved Bitcoin ETFs the following day, but the prior unauthorized post had already affected the market. According to the FBI, Council was allegedly compensated with Bitcoin for his role in the scheme.

Indictment Details on Account Takeover

Court documents state that Council used fraudulent tactics to take control of the SEC’s X account. He allegedly created a fake ID using the personal information of the account holder and deceived AT&T into issuing a SIM card tied to the victim’s phone number. Using that SIM card, Council received account recovery codes sent to the phone number and accessed the account.

After gaining access, Council reportedly passed control to his co-conspirators, who issued the false ETF approval post. Investigators found evidence on Council’s personal computer, including searches for “SECGOV hack,” “telegram sim swap,” and “how can I know for sure if I am being investigated by the FBI.”

Council later returned the iPhone used in the scheme to the Apple Store where it was purchased. According to the indictment, the fraudulent post caused significant price volatility before the SEC took corrective action.

“The FBI works to identify, disrupt, and investigate cyber-enabled frauds, including SIM swapping,” FBI Acting Special Agent in Charge David E. Geist, said. “SIM swapping is a method bad actors exploit to illicitly access sensitive information of an individual or company, with the intent of perpetrating a crime. In this case, the unauthorized actor allegedly utilized SIM swapping to manipulate the global financial market. The FBI will continue to work tirelessly with our law enforcement partners around the country and globe to hold accountable those who break U.S. laws,” he added.

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Trump’s WLFI Token Flops: Raises Less Than 4% of $300M Goal

Lawrence Damilola — Thu, 17 Oct 2024 13:54:18 +0000

The launch of the Donald Trump-endorsed cryptocurrency, WLFI, has not met its initial fundraising expectations.

World Liberty Financial, the organization behind the digital coin, aimed to raise $300 million through the sale of 20 billion WLFI tokens. Currently, the project has sold only 788 million tokens, raising approximately $11.8 million, which is less than 4% of the target. Blockchain data from Etherscan shows that around 9,050 unique wallet addresses currently hold WLFI, representing roughly 9% of the 100,000 wallets whitelisted for participation.

The sale began on Tuesday, with Trump promoting the project through a video on X, formerly Twitter. Despite the promotional efforts, the platform encountered multiple technical issues, with its website repeatedly crashing and going offline for maintenance, hampering the token sale’s momentum.

WLFI is structured as a Regulation D token offering, which limits participation to accredited investors with a net worth of more than $1 million. This provision allows the sale to bypass the U.S. Securities and Exchange Commission’s registration requirements but significantly narrows the pool of potential buyers. Retail investors, who generally make up a large part of token sales, have been largely excluded from this offering.

World Liberty Financial has marketed WLFI as a governance token that allows holders to vote on decisions regarding the platform’s future operations. However, the crypto bank WLFI is tied to is not yet operational, and there are no decisions for token holders to vote on at this time. While the team has filed an approval request with the crypto lending platform Aave, the project is still in the early stages.

Changes to Token Sale Structure

In response to the underwhelming performance, the team made modifications to the sale process. The percentage of tokens available to public buyers has been reduced from 63% to 35%. Additionally, the website now states that investors should assume WLFI tokens could remain non-transferable indefinitely, despite earlier claims that they would become transferable after 12 months.

Donald Trump, as part of his endorsement deal, is set to receive 22.5 billion WLFI tokens, more than what is currently available to public buyers, along with significant fees for his services. The project has yet to release a full white paper or detailed business plan, leaving potential investors with limited information on its long-term plans.

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Italy to Slam Bitcoin Gains with 42% Tax Hike

Lawrence Damilola — Wed, 16 Oct 2024 17:38:35 +0000

The Italian government is planning to increase the capital gains tax on Bitcoin from 26% to 42%, according to Deputy Economy Minister Maurizio Leo.

Speaking at a news conference today, Leo explained that the change is part of the country’s budget bill approved by the Council of Ministers. This proposed tax increase would apply to profits made from Bitcoin investments.

Leo stated, “On capital gains from Bitcoin, the withholding tax increases from 26% to 42%.” According to him, the government’s goal is to revise tax policies related to digital assets and generate additional revenue for the state budget.

Italy’s Elimination of Revenue Threshold for Digital Services Tax

Along with changes to the taxation of Bitcoin, Italy also plans to remove the revenue thresholds for Italy’s Digital Services Tax (DST). Currently, the DST applies to companies generating at least €750 million ($817 million) globally and €5.5 million ($5.9 million) from digital services within Italy. The removal of these thresholds is aimed at expanding the scope of the tax to more digital businesses operating in the country.

Leo commented on this change, saying, “On web tax revenues, we are working to eliminate the ceiling of 750 million euros and 5 million in Italy, therefore we are eliminating the thresholds.” This adjustment would bring more companies under the DST’s regulatory scope, ensuring they contribute to the national budget.

The announcement of the proposed tax increase came as part of Italy’s broader plan to fund a €30 billion ($33 billion) budget for 2025. This budget is designed to fund public services and social programs, with part of the revenue coming from a levy on Italian banks and insurance companies. The government expects to raise €3.5 billion ($3.8 billion) from these sectors.

Prime Minister Giorgia Meloni emphasized the government’s intent, stating on yesterday that the raised capital would be used to improve healthcare services and help vulnerable citizens. “As we promised, there will be no new taxes for citizens,” Meloni wrote on X, referring to the strategy of financing social programs without introducing additional taxes on the general public.

Oggi, in Consiglio dei Ministri, abbiamo varato la legge di bilancio, un intervento che mette al centro i cittadini, le famiglie e il rilancio della nostra Nazione.

Come avevamo promesso, non ci saranno nuove tasse per i cittadini. Inoltre, rendiamo strutturale il taglio delle… pic.twitter.com/scgmgnzBw9
— Giorgia Meloni (@GiorgiaMeloni) October 15, 2024

The proposal to raise the Bitcoin capital gains tax comes as the European Union prepares to fully implement its crypto regulations under the Markets in Crypto-Assets (MiCA) framework by the end of 2023.

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TikTok Accused of Running a Secret Crypto Exchange – Here’s Why

Lawrence Damilola — Wed, 16 Oct 2024 17:27:47 +0000

TikTok is being scrutinized in the UK for potentially operating like a cryptocurrency exchange. According to Financial News, a compliance expert alerted the Financial Conduct Authority (FCA) regarding TikTok’s virtual currency system, TikTok Coins.

Users purchase these coins with real money to gift creators on the platform, but concerns have been raised about the possibility of converting the coins back into cash. This process mirrors cryptocurrency transactions and has drawn attention from regulatory authorities.

The expert expressed concerns about TikTok’s virtual tokens being used in ways that may involve money laundering or terrorist financing. These concerns arise as crypto businesses in the UK are subject to strict oversight, and the handling of virtual currencies by platforms like TikTok may attract similar scrutiny. The expert also raised issues about the potential security risks involving user financial data.

TikTok’s System and FCA Compliance Issues

The compliance expert’s letter indicated that TikTok’s system could classify it as a money service business under FCA guidelines. This classification would require the platform to comply with anti-money laundering (AML) and counterterrorism financing laws. The expert noted that without proper AML registration, the origin of funds used to purchase TikTok Coins remains uncertain, which could be problematic under FCA regulations.

According to the letter, TikTok’s activities, particularly its handling of virtual currency, may require it to adhere to registration and reporting duties similar to those imposed on businesses that deal with cryptocurrencies. This includes complying with regulations designed to prevent money laundering and ensuring transparency in transactions.

FCA’s Actions on Unregistered Crypto Firms

The FCA has been actively targeting unregistered crypto firms that fail to comply with financial promotion rules introduced in October of the previous year. This enforcement effort has led to over a thousand warnings issued to unregistered crypto entities. Additionally, the FCA has reported a rejection rate of 87% for crypto firms applying for licenses, indicating strict regulatory measures being enforced across the sector.

With the FCA increasing its efforts to regulate the crypto space, TikTok’s virtual currency system has come under greater scrutiny.

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Sleeping Bitcoin Whale Moves $630K to Kraken, Unleashes $5.5M in 2 Months

Lawrence Damilola — Wed, 16 Oct 2024 16:47:58 +0000

A long-dormant Bitcoin whale, who mined cryptocurrency just five days after the genesis block was created in 2009, has recently made significant transfers to Kraken, a major cryptocurrency exchange.

Blockchain data firm Arkham Intelligence reported that the whale transferred $630,000 worth of Bitcoin to Kraken on Monday. This follows previous transfers by the same wallet, totaling $5.47 million in Bitcoin over the past two months.

According to Arkham Intelligence, the whale’s wallet still holds approximately $75.2 million worth of Bitcoin after these transfers. The wallet’s remaining 1,127 bitcoins were moved to a new address following the most recent transaction. Bitcoin addresses from the early days of the blockchain rarely move funds, making these transfers noteworthy.

𝗔𝗡𝗖𝗜𝗘𝗡𝗧 𝟮𝟬𝟬𝟵 𝗪𝗛𝗔𝗟𝗘 𝗡𝗢𝗪 𝗦𝗢𝗟𝗗 $𝟱.𝟰𝟳𝗠 𝗕𝗧𝗖

The ancient Bitcoin whale we’ve been tracking, who mined BTC 5 days after Bitcoin’s first block (13th January 2009), has just moved another $630K BTC to Kraken – totalling $5.47M in the past 2 months.

This… pic.twitter.com/kjKx34Ib6B
— Arkham (@ArkhamIntel) October 14, 2024

Other Early Bitcoin Whales Make Transfers

This whale is not the only early Bitcoin holder who moved funds recently. On October 3, another whale, inactive for over a decade, transferred 10 Bitcoins, valued at $610,000, to Kraken. In a similar case, a different whale who mined Bitcoin just two months after the blockchain’s launch moved $16 million to Kraken in September after being dormant for 15 years.

These movements from early Bitcoin whales are unusual, as such addresses rarely make transactions, raising interest in the reasons behind these transfers.

Bitcoin Price Performance and Market Activity

Bitcoin has seen notable price increases recently, coincideing with the whale movements. Over the past week, its price has risen by 7.45%, pushing its value to over $67,000. Over the past year, Bitcoin has experienced significant price swings, ranging from lows around $28,000 to a high of $73,000 in March.

Additionally, the Crypto Fear & Greed Index, which tracks market sentiment, gave it a score of 73 out of 100 in its October 16 update, placing it in the “Greed” category. This marks the highest index level since late July when Bitcoin was priced at around $66,000. These recent developments in price and market sentiment may explain the activity among dormant wallets, though no clear reasons have been stated.

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Bitfinex Hack Mastermind Faces 5 Years in Prison

Lawrence Damilola — Wed, 16 Oct 2024 16:16:15 +0000

Ilya Lichtenstein, the individual behind the 2016 Bitfinex hack, is facing a five-year prison sentence for his role in a large-scale money laundering operation.

According to Bloomberg, U.S. prosecutors have asked the court to impose this sentence after Lichtenstein’s guilty plea over the theft of roughly 120,000 Bitcoin from the exchange. At the time, the stolen Bitcoin was worth $71 million, but its value later surged to over $6 billion due to the rise in cryptocurrency prices.

Lichtenstein’s wife, Heather Morgan, also played a role in laundering the funds and has pleaded guilty to related charges. Prosecutors recommended an 18-month prison sentence for Morgan, who is known for her rap persona “Razzlekhan.” They argue that while she helped conceal the stolen Bitcoin, Lichtenstein was the primary figure responsible for the hack. Sentencing hearings for the couple are set for November, with Lichtenstein’s on the 14th and Morgan’s on the 15th.

Details of the Laundering Scheme

The couple employed several sophisticated methods to launder the stolen cryptocurrency. They used fake identities, created multiple online accounts, and conducted automated transactions through darknet markets like AlphaBay and Hydra.

They also used mixing services like Bitcoin Fog, which helped obscure the funds’ trail further. Lichtenstein and Morgan converted a portion of Bitcoin into other forms of cryptocurrency, gold, and NFTs. Additionally, they purchased items such as Walmart gift cards with the stolen proceeds.

Prosecutors noted Lichtenstein’s assistance in other criminal cases, including his testimony in the Bitcoin Fog trial earlier this year. Despite this cooperation, they maintain that Lichtenstein deserves a longer sentence than his wife due to his central role in the hack.

Lichtenstein and Morgan pleaded guilty to conspiracy charges to launder money and defraud the United States. Prosecutors emphasized that Lichtenstein’s actions, as the mastermind behind one of the largest cryptocurrency thefts to date, warrant significant prison time. The government stopped short of recommending the maximum possible sentence, taking Lichtenstein’s cooperation into account.

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Tesla Shifts Entire Bitcoin Holdings – Is a Big Market Move Coming?

Lawrence Damilola — Wed, 16 Oct 2024 14:51:45 +0000

Tesla has moved its entire Bitcoin holdings, totaling 11,509 BTC, valued at approximately $770 million, to new wallet addresses after two years of inactivity.

Arkham Research tracked the move, reporting that the company transferred Bitcoin in a series of transactions, including six test transfers. These movements represent the first time Tesla has interacted with its Bitcoin wallets since June 2022.

Tesla initially invested $1.5 billion in Bitcoin in February 2021. As of October 15, 2024, Tesla’s Bitcoin holdings were estimated at 9,720 BTC, worth around $650 million. However, Arkham’s data indicates the company holds a total of 11,509 BTC across 68 addresses. This makes Tesla the third-largest Bitcoin holder among publicly traded companies, behind MicroStrategy and Marathon Digital Holdings (MARA).

The transfers occurred between 4:41 and 5:34 UTC+8 (20:41 and 21:34 GMT) and were conducted in 26 separate transactions. These included six test transfers before the main bulk of the holdings were moved. The company did not provide any statement on the reason for the transfer. Furthermore, none of the Bitcoin has been moved to known crypto exchanges, leaving the purpose of the transactions unclear.

The recent move has sparked two main hypotheses: Tesla could be gearing up to offload its Bitcoin holdings, or perhaps it’s merely reconfiguring its assets for better custody management. There’s speculation that the firm might require capital for upcoming ventures or investments, while some think Tesla is aiming to boost its security by employing new wallet technologies.

Amidst these theories, one stands out: the Bitcoin has not been observed moving to any recognized exchanges, suggesting that a sale isn’t immediately on the horizon. Tesla’s ongoing lack of commentary only fuels further speculation, especially considering the timing of this move and the company’s fiscal tactics.

Positioned just behind MicroStrategy and Marathon Digital, Despite entering the Bitcoin arena in 2021, the company remains a significant player in the cryptocurrency field.

In early 2021, the company sold $272 million worth of Bitcoin, earning $128 million in profits. In 2022, Tesla sold an additional $936 million worth of Bitcoin, realizing a $64 million gain. Both sales followed Bitcoin’s price surges after the company initially purchased $1.5 billion worth of the cryptocurrency in February 2021.

In addition to Tesla’s Bitcoin holdings, SpaceX, another company led by Elon Musk, is also reported to hold 8,285 BTC, valued at over $555 million. Despite the current transfer, Tesla remains one of the largest corporate holders of Bitcoin, and its recent activity has drawn attention within the crypto community.

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Bitcoin Slammed as ‘Worthless’ by Fed President Despite Soaring 48% in 2024

Lawrence Damilola — Tue, 15 Oct 2024 15:10:58 +0000

Minneapolis Federal Reserve President Neel Kashkari has reiterated his stance that Bitcoin remains a “worthless” asset class despite its 12 years of existence. Kashkari emphasized that the cryptocurrency has not established itself as a viable currency, maintaining its critical view of the asset despite its longevity in the financial markets.

FED'S KASHKARI: BITCOIN REMAINS WORTHLESS AFTER TWELVE YEARS
— FinancialJuice (@financialjuice) October 14, 2024

Bitcoin’s Performance Over the Years

BTC has shown significant gains through the years, delivering notable returns during several key periods. In 2012, the cryptocurrency rose by 9%, followed by a 59% increase in 2016 and a remarkable 171% gain in 2020.

So far, in 2024, Bitcoin increased by 48%, outperforming many major asset classes. Over the past month, the cryptocurrency climbed by 10%. However, during the final quarter of Q3, BTC’s returns were largely flat, gaining only 0.8% by the end of September.

In comparison, gold, often viewed as a rival store of value to Bitcoin, performed better during the same period, delivering a 13.8% return in the last quarter.

Institutional Interest in Bitcoin ETFs

Demand for spot Bitcoin ETFs continues to rise, driven by increasing institutional interest. On October 14, 2024, BTC ETFs in the U.S. saw an inflow of $556 million daily, marking the largest inflow since June 5, 2024. The inflows into BTC ETFs indicate continued interest from institutional investors in the cryptocurrency. The total inflows on Monday reached $555 million, the largest in four months, underscoring the growing demand for this investment vehicle.

The U.S. elections in 2024 are shaping up to be a significant factor for the cryptocurrency industry. Both leading candidates, Donald Trump and Kamala Harris, support clearer crypto regulations. Trump, speaking at the Bitcoin Conference 2024 in Nashville, pledged to make the U.S. a global hub for cryptocurrency if elected, signaling his strong stance on fostering the industry. Kamala Harris has also voiced support for crypto-friendly policies if she assumes office.

According to CryptoQuant data, BTC reserves on centralized exchanges have reached an all-time low. This reflects investors transferring their BTC into long-term cold storage.

Additionally, BTC’s open interest has reached a record high of $19.8 billion, indicating increased liquidity in the derivatives market. Traders appear to be building long positions, suggesting rising interest in BTC among market participants.

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Google Taps Nuclear Power to Fuel AI: WSJ

Lawrence Damilola — Tue, 15 Oct 2024 14:42:47 +0000

Google has signed an agreement to support the construction of seven small nuclear reactors in the U.S. to help meet the country’s rising demand for electricity, particularly for its artificial intelligence (AI) data centers.

According to the Wall Street Journal, the deal is with nuclear-energy startup Kairos Power and represents the first commercial construction of small modular nuclear reactors (SMRs) in the United States. The companies announced that the reactors are expected to add 500 megawatts of power by the end of the decade.

Google Partnership with Kairos for Nuclear Energy

Under the agreement, Kairos Power will deliver the reactors, each using molten fluoride salt as a coolant rather than the traditional water-cooling method. The plan includes a 50-megawatt reactor followed by three power plants with two 75-megawatt reactors each. These smaller reactors are designed to be more efficient to construct compared to conventional nuclear plants, which typically have a capacity of around 1,000 megawatts.

The power-purchase agreement follows a model similar to those Google used with renewable energy providers, like wind and solar. Although the exact location of the reactors has not yet been determined, the project aims to begin operations between 2030 and 2035. The company also has a demonstration reactor project in Tennessee, slated to start operating in 2027.

Small Modular Reactors to Power Google’s Energy Needs

The nuclear reactors built by Kairos will generate enough power to support the equivalent of a midsize city or a single AI data center campus. It has not been decided whether the power will flow directly to Google’s data centers or the regional grid. Google intends to count this nuclear power toward its carbon-reduction goals.

Google’s need for increased power comes at a time when its data centers, particularly those that support AI operations, are driving demand. The deal answers the challenge of finding customers willing to commit to first-of-its-kind reactor projects, which can be more expensive initially.

Kairos Power has begun preparations for building the reactors, with a facility in Albuquerque, New Mexico, where it is testing systems and components. The company has clearance from the U.S. Nuclear Regulatory Commission to build its demonstration reactor but will need further approvals to proceed with the full-scale reactors planned for Google.

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South Korea Authorities Crack Down on Tax Evaders with $890K Crypto Seizure

Lawrence Damilola — Tue, 15 Oct 2024 12:52:57 +0000

North Gyeongsang Province in South Korea has seized cryptocurrency assets totaling $890,000 from residents who failed to pay their local taxes.

The province aims to collect $136 million in overdue taxes by the end of the year and has already recovered $35 million by August, per a report from Daekyung IIbo. The latest seizure is an ongoing effort to target tax evaders with cryptocurrency holdings.

South Korea Intensifies Tax Recovery Efforts

The province announced a two-month campaign to recover unpaid taxes, running from October 14 to December 13. The campaign involves 22 of the province’s largest cities and counties, all participating in this intensive operation. Local governments have established teams known as Local Tax Arrears Collection Teams, composed of tax officials led by local government leaders, to manage and carry out the tax recovery activities.

South Korean law permits local tax authorities to request information from domestic cryptocurrency exchanges. This allows officials to cross-reference tax records with crypto wallets data to identify individuals with outstanding tax obligations. If tax evaders do not pay their dues in fiat currency, the government has stated that it will liquidate the seized cryptocurrencies on the exchanges from which they were seized to cover the unpaid taxes.

This is not the first time South Korean authorities targeted cryptocurrency holders who are behind on their taxes. Various provinces and metropolitan cities across the country have also undertaken similar actions, liquidating significant amounts of cryptocurrency, including Bitcoin, Ethereum, and other altcoins.

Local Authorities Proceed with Asset Seizures

The North Gyeongsang provincial government indicated that it will continue its enforcement of tax collection by seizing and liquidating the assets of those who do not comply.

“In order to boost fairness for honest taxpayers, we plan to take firm and strong measures over the next two months. We also urge delinquent taxpayers to pay their bills promptly. […] This will help prevent the seizure and sale of their assets,” Kim Ho-jin, Head of North Gyeongsang Provincial Planning and Coordination Office said.

The provincial authorities have given tax evaders a choice to pay their arrears in fiat currency before any action is taken to liquidate their assets. If they fail to do so, the proceeds from the sale of the seized crypto will be used to settle the outstanding tax bills.

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Trump Crypto Project Reportedly Secures 100K Signups Before Major Token Launch

Lawrence Damilola — Tue, 15 Oct 2024 12:30:38 +0000

World Liberty Financial (WLFI), the decentralized finance (DeFi) platform associated with Donald Trump, claims to have secured more than 100,000 signups ahead of its WLFI token launch today.

The platform revealed it will release an Ethereum-based ERC-20 governance token, which will be integral to the platform’s operations. The token will serve as a governance tool, allowing holders to participate in decision-making.

Zak Folkman, head of operations for World Liberty Financial, discussed details of the token during an X Spaces event yesterday. Folkman and team members Chase Herro and Zach Witkoff reiterated information already provided in a blog post last Friday.

The platform will enable users to borrow, lend, and transact with stablecoins, and also interact with liquidity pools. In the U.S., access will be restricted to accredited investors who meet certain financial requirements as set by the Securities and Exchange Commission (SEC), including earning over $200,000 annually or having assets exceeding $1 million.

WLFI Tokenomics Allocate 63% for Public Sale and 17% for Rewards

The WLFI tokenomics reveal that 63% of the tokens will be sold to whitelisted members of the public at the time of the launch, while 17% will be reserved for user rewards and 20% allocated to the project team.

According to a leaked white paper, the tokens will be nontransferable for 12 months, though they will be usable for governance votes immediately. The project aims to raise $300 million through the sale of tokens, with an estimated valuation of approximately $1.5 billion.

During the X Spaces event, it was also announced that Paxos co-founder Rich Teo would join the team, focusing on stablecoins and payment solutions. This addition to the team is expected to strengthen the platform’s offering in the DeFi space.

Partnership with Aave for DeFi Lending

World Liberty Financial will initially launch as a DeFi lending platform using Aave’s decentralized borrowing and lending technology. Aave founder and CEO Stani Kulechov made a brief appearance during the October 14 event, expressing his approval of World Liberty Financial’s decision to integrate with Aave’s platform. The team also confirmed plans to expand the platform to Ethereum layer-2 network Scroll in the future.

Donald Trump Jr., listed as the platform’s “Web3 Ambassador,” appeared briefly in X Spaces. He praised World Liberty Financial as an initiative to create a more inclusive financial system, criticized the current U.S. banking system, and vowed to make the U.S. the crypto capital of the world if he wins the presidential election.

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Phishing Scam Strikes Again: $1.28M in Crypto Gone

Lawrence Damilola — Tue, 15 Oct 2024 12:24:01 +0000

A new phishing scam has led to the theft of approximately $1.28 million worth of cryptocurrency. According to blockchain security firm PeckShieldAlert, the victim’s wallet was drained after signing a malicious phishing permit. The stolen assets include PEPE, APU, and MSTR tokens.

PeckShieldAlert identified the compromised wallet as 0xb0b8…40c7. The stolen assets consist of 108 billion PEPE tokens, 73.8 million APU tokens, and 165,000 MSTR tokens. The phishing address, labeled #Fake_Phishing442846, has been connected to the same group responsible for an earlier theft involving Spark Wrapped Ethereum (spWETH) tokens worth $32 million.

#PeckShieldAlert The address 0xb0b8…40c7 has been drained of ~$1.28M worth of cryptos, including 108B $PEPE, 73.8M $APU, and 165K $MSTR, after signing a #phishing permit signature.
The #phishing address #Fake_Phishing442846 is linked to the scammers who drained $32M worth of… pic.twitter.com/fq3a4DD0tD
— PeckShieldAlert (@PeckShieldAlert) October 14, 2024

Connection to Earlier Attack

The earlier incident happened on September 27, resulting in the theft of 12,083 spWETH tokens from a wallet ending in ‘e57.’ Blockchain intelligence firm Arkham Intelligence suggested that the compromised wallet may belong to Shixing Mao, the founder of F2Pool, although this information is unconfirmed. The group behind this attack transferred the stolen tokens to multiple wallets.

Data shows that cryptophishing scams have increased in recent months. CertiK reported that more than $46 million was lost in phishing attacks during September. Over 10,805 victims were affected by these scams, with the overall losses in the third quarter reaching $126 million. According to Spectrum Search, an average of 11,000 victims were targeted monthly during this period.

Victims of crypto phishing scams often fall prey to links shared through fake accounts on platforms like X (formerly Twitter) and Google ads. Once users click on these fraudulent links, their data, cryptocurrencies, or wallet access may be compromised.

CertiK provided details on the movement of funds following the attacks. In the September 27 incident, a large portion of the stolen spWETH tokens was transferred to several wallets, complicating efforts to track and recover the assets. The most recent attack observed the same tactics, as the stolen PEPE, APU, and MSTR tokens were transferred to other wallets.

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Metaplanet Boosts Bitcoin Holdings by 107 BTC, Stock Jumps 15.7% Overnight

Lawrence Damilola — Tue, 15 Oct 2024 12:14:22 +0000

Shares of Japanese investment firm Metaplanet rose 15.7% today after the company announced its latest Bitcoin acquisition. Metaplanet revealed that it purchased nearly 107 Bitcoin, bringing its total holdings to 855.5 BTC, valued at over $56.1 million.

Latest Bitcoin Purchase Details

Metaplanet confirmed that it spent approximately $6.7 million (1 billion yen) to acquire 106.976 Bitcoin at a price of $62,520 per coin. This price was 5.8% below the market rate of $66,200 at the time of the transaction.

This latest acquisition follows a series of Bitcoin purchases made earlier in October. Metaplanet acquired 109 Bitcoin on October 11 and 108.8 Bitcoin on October 7. In addition, the company purchased 132 Bitcoin in two separate transactions on October 1 and 3, according to Bitcoin Treasuries data.

Metaplanet’s latest Bitcoin (BTC) purchase. Source: Metaplanet

The total amount Metaplanet has spent on Bitcoin now stands at $53.2 million, covering the cost of its 855 BTC. The company has gained 5.4% on its Bitcoin investments thus far.

Following the announcement, the firm’s stock was trading at 1,105 yen ($7.38) on the Tokyo Stock Exchange before the midday break on October 15. According to Google Finance data, this represents a 15.7% increase from its previous close on October 14. Since the firm introduced its Bitcoin investment strategy in early April, its stock price has increased by 480%.

Metaplant’s share price in the last five days. Source: Google Finance

Metaplanet has expanded its Bitcoin investments through several purchases, notably acquiring an undisclosed amount on October 11 and 108.8 BTC on October 7. Additionally, the firm bought 132 Bitcoin in two separate deals on October 1 and 3, effectively doubling its Bitcoin assets during this period.

Metaplanet’s CEO, Simon Gerovich, has stated that the company’s Bitcoin strategy is influenced by MicroStrategy’s investment model, led by Michael Saylor. MicroStrategy, which holds over 252,000 Bitcoin, is known for its significant Bitcoin investments.

In August, Metaplanet took out a $6.8 million loan from one of its shareholders to fund additional Bitcoin purchases. According to data from the Bitcoin Treasuries, the company’s Bitcoin holdings are now the 23rd largest among public firms.

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Ethereum’s Future: How Vitalik Buterin Plans to Transform Staking and Decentralization

Lawrence Damilola — Mon, 14 Oct 2024 15:31:01 +0000

Vitalik Buterin has outlined several areas for improvement in Ethereum’s Proof of Stake (PoS) network, particularly focusing on staking accessibility and block finalization speed.

In a recent blog post, Buterin highlighted that while Ethereum’s transition from Proof of Work (PoW) to PoS was a significant milestone, issues remain. One primary concern is the high staking requirement of 32 ETH, which Buterin proposes lowering to 1 ETH to encourage solo staking. He believes that reducing this barrier could promote decentralization by allowing more individuals to participate.

Possible futures of the Ethereum protocol, part 1: the Mergehttps://t.co/JycODdM4wW
— vitalik.eth (@VitalikButerin) October 14, 2024

Buterin pointed out that Ethereum’s current block finalization time of around 15 minutes is another area needing improvement. He proposed reducing finalization to a single slot of about 12 seconds. However, this poses a challenge in balancing the number of validators with maintaining low node overhead. More validators lead to increased decentralization but can slow down verification times unless supported by powerful nodes.

Buterin presented three potential solutions to address these challenges. One involves improving signature aggregation using techniques like ZK-SNARKs, allowing the network to efficiently handle signatures from millions of validators. The second approach suggests using orbit committees, where only a subset of validators finalizes blocks, rotating committee members to maintain security. The third option is introducing a two-tiered staking system, with higher-tier stakers handling economic finality, while lower-tier stakers delegate their stakes to the higher tier.

Buterin’s Four Development Paths

Buterin also outlined four possible paths for Ethereum’s future development. The first option is to leave the network as it is, with no changes to current security and decentralization. The second is implementing Orbit SSF, which would adjust assumptions around economic finality. The third path, brute-force SSF, focuses on improving the handling of millions of validator signatures through more advanced technology. The fourth option introduces the two-tiered staking system, though this may carry risks of centralization.

Additionally, Buterin discussed Ethereum’s vulnerability to 51% attacks and the current reliance on the social layer for recovery. He suggested automating parts of this recovery process and increasing the quorum threshold for block finality from 67% to 80%, which could give more weight to solo stakers.

Buterin also mentioned that more advanced features like Single Secret Leader Election (SSLE) could be implemented after Ethereum adopts Zero-Knowledge Proofs (ZKPs).

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Europe’s Crypto Holders Facing Violent Home Raids—$4.3 Million Bitcoin Stolen

Lawrence Damilola — Mon, 14 Oct 2024 15:04:41 +0000

A sharp rise in violent home invasions targeting crypto holders has been reported, particularly in Western Europe. In a post on X last Thursday, Blockchain investigator ZachXBT said he received numerous messages from victims, revealing a pattern of criminals using extreme force to steal cryptocurrency. These incidents involve armed attackers forcing individuals to transfer their digital assets on the spot.

ZachXBT made the same claim in a Telegram message on September 27. However, he revealed that one incident involved a user on the social media platform X, who lost $4.3 million in cryptocurrency during a home invasion in June 2024. ZachXBT stated that the thieves likely obtained the victim’s personal information through a data breach. Masquerading as delivery personnel, the attackers entered the victim’s home armed with machetes and forced them to transfer the cryptocurrency to two dormant wallet addresses.

High-Profile Crypto Executives Targeted in Violent Robberies

ZachXBT has warned crypto holders to be cautious, advising them not to share personal details or information about their cryptocurrency holdings. According to data compiled on GitHub, at least 15 documented incidents of offline crypto-related robberies occurred worldwide in the past year, with 17 cases in 2023 and 32 in 2021. These figures show a notable presence of such crimes, with Western Europe being one of the regions most affected in recent months.

A high-profile case from September 2024 involved Nick Drakon, the former CEO of Revelo Intel. At the time, he reported that a criminal group targeted him. He described how the group surveilled him and eventually forced him at gunpoint to transfer Bitcoin from personal and company accounts, threatening his family in the process. This case is one of several where high-profile individuals in the cryptocurrency community have been targeted for their holdings.

Law Enforcement Actions

Law enforcement agencies have investigated these incidents, with some cases leading to arrests. In June 2024, a Florida man was convicted of leading a series of home invasions aimed at stealing cryptocurrency. Between December 2022 and July 2023, the convicted individual and his group carried out violent attacks, using kidnapping and threats to force their victims into transferring cryptocurrency to wallets controlled by the thieves.

Data breaches and sharing of personal information have contributed to the rise in these incidents, which remain a serious threat to cryptocurrency holders worldwide.

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No More Bitcoin Price Updates? Google Pulls the Plug on Crypto Charts

Lawrence Damilola — Mon, 14 Oct 2024 12:59:49 +0000

Google has removed live price charts for Bitcoin and other cryptocurrencies from its search results. Users who typically check cryptocurrency prices by searching terms like “Bitcoin price” or “Ethereum price” no longer see the charts, which have been available since 2018.

However, Google has not provided an official explanation for this change, and it is uncertain whether the removal is temporary or permanent.

Although cryptocurrency price charts have been removed, stock and index charts continue to appear in search results. The feature had previously allowed users to quickly check the price of Bitcoin and other popular cryptocurrencies directly from the search engine. Those looking for cryptocurrency prices must use other sources for real-time updates.

For users seeking an alternative, Google Finance still offers cryptocurrency information. However, the most recent updates to this data were recorded on October 7, raising questions about potential technical issues with the data feed. This may suggest that the removal of the cryptocurrency price charts from Google’s search results could be linked to a broader data capture problem, though no confirmation has been provided.

What About Shiba Inu?

In addition to Bitcoin and Ethereum, the price charts for Shiba Inu have also been removed, while Dogecoin price data remains available. The pattern behind which cryptocurrencies have had their charts removed appears inconsistent, as some prominent assets still need to be included while others remain unaffected. This has led to speculation within the crypto community about what might be driving the changes.

Google has supported Bitcoin price information since 2013 and introduced an automatic conversion tool for Bitcoin’s price in 2014. Over the years, the search engine expanded its cryptocurrency price features to include other assets like Ethereum and XRP.

According to data from Google Trends, searches for Bitcoin have dropped significantly, reaching a low point not seen in over a year. While searches for memecoins have increased. Crypto enthusiasts have noted this decrease in interest, but no direct link has been confirmed between search volume and the removal of the price charts.

BREAKING: #Bitcoin Google search volume hit a yearly low. pic.twitter.com/VH98VEPYeg
— Crypto Rover (@rovercrc) October 13, 2024

At present, users will need to rely on Google Finance or alternative platforms to check Bitcoin and other cryptocurrency prices, as Google has not provided further updates or clarifications on the matter.

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Latin America Says Adiós to Fiat, Hola to Bitcoin!

Lawrence Damilola — Sun, 13 Oct 2024 14:01:44 +0000

Latin America is pulling off the ultimate “glow-up” in the crypto world, with Argentina and Brazil leading the charge like they just found the golden ticket to financial freedom. Forget traditional banking; down south, crypto is quickly becoming the financial lifeboat that everyone’s scrambling to board.

Argentina’s Crypto Fix: HODLing Like It’s a Full-Time Job

Argentina is the MVP of Latin America’s crypto scene, according to a Chainalysis report last Wednesday, clocking to about $91.1 billion in transaction volume over the past year. Why? Let’s just say the Argentine peso is doing its best impression of a meme coin on a bad day—constantly dipping. Inflation? More like “inflation on steroids.” So, naturally, Argentinians are grabbing onto Bitcoin and stablecoins like they’re life rafts in a financial storm.

Picture this: Argentina holding Bitcoin like Jack holding onto that floating door in Titanic, while the peso sinks faster than the iceberg hit. If you thought crypto volatility was bad, try living in a country where the peso seems to disappear faster than your phone battery. It’s all about survival, and crypto is the ultimate weapon.

Brazil: Big Players, Big Money, Bigger Moves

While Argentina’s got the retail crowd hustling in crypto, Brazil is out here playing the institutional game, pulling in $90.3 billion in crypto transactions. And it’s not just regular folks, it’s the big dogs—banks, funds, and corporations—diving in headfirst. Institutional crypto transactions surged 48.4%, thanks to shiny new Bitcoin and Ethereum ETFs making traditional investments look like yesterday’s news.

Imagine a meme with Brazil decked out in a business suit, carrying a briefcase full of Bitcoin, while the rest of the world’s institutions look like they just missed the boat. You’ve got Brazil making it rain crypto while hedge funds elsewhere are still scratching their heads, wondering how they missed the memo.

Meme-Worthy Take: Crypto as Latin America’s Financial Superhero

The meme possibilities are endless. Argentina’s financial system might be on fire, but Bitcoin is the firefighter—rushing in to save the day. Meanwhile, Brazil is out here flexing its institutional crypto gains like the Dwayne Johnson of digital assets, with a briefcase full of Bitcoin, ready to power-lift the economy.

You could go full “Distracted Boyfriend” meme with traditional investments getting left in the dust while Latin America looks lovingly at Bitcoin and Ethereum. Or, take the “This is Fine” dog meme, but instead of fire, it’s a collapsing fiat currency, with citizens sipping their coffee and holding onto their crypto stash, knowing it’s their only hope.

Overall, inflation eats savings for breakfast, and local currencies get trashed faster than yesterday’s memes, but Latin America is proving that crypto might just be the hero they need. And this hero is sticking around for the long haul.

Disclaimer: This content is meant for laughs, not financial advice. If you decide to ride the crypto wave like Argentina and Brazil or bet your savings on the next meme coin, please consult a professional—or at least your meme-loving friend who yells “HODL!” every day. Remember, while crypto might be the hero in Latin America, it’s still a wild ride. So, invest responsibly or risk becoming the star of your own “This is Fine” meme!

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London Trader Accused of Running Illegal Crypto ATMs Faces Court

Lawrence Damilola — Fri, 11 Oct 2024 15:37:01 +0000

Habibur Rahman, a London resident, has pleaded not guilty to charges of operating illegal and unregistered crypto ATMs. Rahman, aged 37, from Langdon Crescent in East Ham, is accused of running a cryptocurrency ATM at his shop without the required registration from the Financial Conduct Authority (FCA). The charges come after several illegal ATMs were seized during a police raid on his store in Chatham, Kent, in April 2023, including one machine on public display.

A spokesperson for Kent Police stated that Rahman is the first person in the UK to face charges for this offense. The authorities revealed that he laundered £300,000 ($391,551) by converting it into cryptocurrency. Rahman appeared in Medway Magistrates’ Court, where he pleaded not guilty to all charges. The case has been moved to Maidstone Crown Court, with the next hearing scheduled for November 7.

In addition to operating unregistered crypto ATMs, Rahman has been accused of money laundering. The authorities allege that he converted large sums of money into cryptocurrency, violating financial regulations. Kent Police are investigating Rahman’s involvement in these activities, and they noted potential violations of money laundering laws.

FCA’s Regulation of Crypto ATMs

Since 2020, the FCA has required all cryptocurrency operators to register with the regulator. Rahman’s case follows growing scrutiny of crypto ATMs across the UK. The FCA has not yet approved any operators of crypto ATMs in the country, making unregistered operations illegal. Last month, London-based trader Olumide Osunkoya was sentenced for operating 11 illegal crypto ATMs, processing over £2.6 million ($3.4 million) in transactions between 2021 and 2023.

The FCA has increased its inspections of locations hosting cryptocurrency ATMs. Between January and August 2023, the regulator inspected 34 such sites. The FCA has stated that registration is mandatory for anyone operating a crypto ATM in the UK, regardless of where the machine is manufactured. Failure to register could result in a prison sentence of up to two years, a fine, or both.

The post London Trader Accused of Running Illegal Crypto ATMs Faces Court first appeared on The Shib Daily.

New Stablecoin Law Could Shake Up the Crypto Market – Here’s Why

Lawrence Damilola — Fri, 11 Oct 2024 15:35:43 +0000

Crypto-friendly Senator Bill Hagerty has introduced a discussion draft for legislation to create a regulatory framework for stablecoins— a move that could reshape the entire crypto industry.

The Tennessee Republican’s proposal resembles the Clarity for Payment Stablecoins Act, which is currently being worked on in the House of Representatives by Rep. Patrick McHenry, R-N.C., and Rep. Maxine Waters, D-Calif. In a statement on Thursday, Hagerty revealed that his draft seeks to provide much-needed clarity to stablecoin regulations.

Hagerty, who is a member of the Senate Banking Committee, structured his draft to split federal supervision of stablecoins. Under the proposal, the Federal Reserve would oversee banks, while the Office of the Comptroller of the Currency (OCC) would regulate non-bank issuers. Additionally, the draft includes a provision that allows stablecoin issuers exceeding $10 billion in assets to receive a waiver from federal oversight, enabling them to remain under state regulation. The legislation also requires stablecoins to be backed one-to-one with reserves held in U.S. currency.

In his statement, Senator Hagerty emphasized the potential benefits of stablecoins, noting that they could enhance payment systems and create new demand for U.S. Treasuries. He expressed concerns that the absence of clear regulatory guidelines has hindered the growth and adoption of stablecoins.

Negotiations surrounding the passage of stablecoin legislation have been ongoing in both the House and the Senate. In the House, McHenry and Waters have worked on the Clarity for Payment Stablecoins Act since 2022. The bill advanced out of the Republican-led committee but has faced hurdles in gaining broader support. One of the main points of contention was a provision allowing state regulators to approve stablecoin issuances without the involvement of the Federal Reserve.

Industry Reactions Towards The Bill

Cody Carbone, president of The Digital Chamber, responded to the release of Hagerty’s draft, saying that the draft has revitalized discussions around stablecoin regulation. Carbone noted that pushing for a stablecoin regulatory framework is bipartisan.

We applaud @SenatorHagerty for introducing the Senate's Clarity for Payment Stablecoins Act discussion draft, providing needed regulatory certainty for USD stablecoins. It's time to unlock stablecoins' potential in a safe, predictable environment.

Read more:… pic.twitter.com/f7Z6oactag
— The Digital Chamber (@DigitalChamber) October 10, 2024

Ron Hammond, director of government relations at the Blockchain Association, described Hagerty’s draft as an “important development”. He referenced comments made by Rep. McHenry and Rep. Waters, who have both indicated a desire to move forward with stablecoin legislation. Hammond also stated that Senator Hagerty’s efforts could serve as a starting point for discussions in the Senate Banking Committee.

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Ripple Files Cross-Appeal in SEC Lawsuit

Lawrence Damilola — Fri, 11 Oct 2024 12:11:01 +0000

Ripple Labs has filed a cross-appeal in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), submitting the appeal to the U.S. Court of Appeals for the Second Circuit. However, this cross-appeal follows the SEC’s recent notice of appeal regarding an earlier court ruling in the case. Ripple’s cross-appeal was filed to ensure that all aspects of the case were fully addressed.

Ripple’s chief legal officer, Stuart Alderoty, commented on the filing yesterday, stating that the cross-appeal focuses on the argument that an “investment contract” requires essential rights and obligations, which Ripple argues were not present in its sale of XRP. This legal action is part of Ripple’s broader strategy in response to the SEC’s charges.

The Background of the Case

The SEC initially brought charges against Ripple in 2020, accusing the company of raising $1.3 billion through the sale of XRP, which it claimed was an unregistered security. U.S. District Judge Analisa Torres ruled in July 2023 that Ripple’s programmatic sales of XRP, conducted through exchanges, did not violate securities laws. However, she also ruled that Ripple’s direct sales of XRP to institutional investors were considered securities transactions under federal law.

Following this ruling, Ripple was ordered to pay $125 million in fines related to direct sales to institutional investors. The court’s ruling drew attention to the distinction between Ripple’s sales to institutions and its programmatic sales on exchanges.

Ripple and SEC File Appeals as Legal Battle Continues

The SEC is seeking to challenge the court’s finding that programmatic sales of XRP did not violate securities laws. The SEC had previously sought an interlocutory appeal, but Judge Torres denied that request.

Both Ripple and the SEC have now filed notices of appeal, and more detailed arguments will be presented in the coming months. The SEC’s brief is expected to be submitted by January 2024, with Ripple filing its response afterward.

Stuart Alderoty has stated that Ripple is prepared to continue contesting the case through the appeals process, noting that the cross-appeal is intended to ensure that all legal arguments are addressed.

The case between Ripple and the SEC has been ongoing for nearly four years and remains a central legal battle within the cryptocurrency sector.

The post Ripple Files Cross-Appeal in SEC Lawsuit first appeared on The Shib Daily.

Phishing Attack Drains $35 Million from Crypto Whale’s Wallet

Lawrence Damilola — Fri, 11 Oct 2024 12:08:37 +0000

A crypto whale’s fortune vanished in an instant as a sophisticated phishing scam drained $35 million in fwDETH, sparking chaos in the DeFi market and leaving experts stunned.

Security firm Scam Sniffer first reported the incident, revealing that the whale was tricked into signing a fraudulent “permit” message, which allowed the attacker to drain the funds. The compromised address was identified as 0xEab2E…a393.

Security firms PeckShield and BlockSec confirmed the attack. BlockSec co-founder Yajin Zhou explained that the attacker used the signed permit message to withdraw fwDETH tokens from the whale’s account. The incident caused the whale to lose a substantial amount of fwDETH, leading to a market disruption.

Following the attack, the value of Duo ETH (DETH), a derivative of ETH issued by the DeFi protocol Duo, dropped significantly. According to data from DexScreener, the price of DETH fell by more than 90%, from $2,000 to $100, before recovering to $1,000. This decline occurred after the attacker swapped the stolen DETH for ETH through a decentralized exchange.

On-chain analyst Ember CN reported that the attacker sold 14,079 DETH but only received 2,288 ETH due to insufficient liquidity in the DETH pool. The sale drained the liquidity pool and caused a sharp decoupling between DETH and WETH, contributing to the devaluation of the stolen assets.

The Connection to Angel Drainer Phishing Group

Blockchain security firm SlowMist linked the phishing attack to the Angel Drainer phishing group. This group is known for offering “draining-as-a-service” (DAAS) tools, which provide scammers with phishing resources like fake websites and social media accounts. These tools have been used in various phishing scams, including this latest attack.

In 2023, DAAS services were responsible for losses totaling $295 million, affecting over 324,000 victims. Scam Sniffer reported that phishing attacks caused approximately $126 million in losses during the third quarter of 2024 alone.

Duo Exchange, the platform associated with DETH, acknowledged the phishing attack today.

The platform confirmed that more than 10,000 DETH had been dumped on automated market makers (AMMs), depegging DETH’s value. Duo Exchange assured users that its protocols remained safe and functional despite the incident.

DeFillama data showed that the total value of assets locked on Duo Exchange dropped from $103 million to $86 million following the phishing incident.

The post Phishing Attack Drains $35 Million from Crypto Whale’s Wallet first appeared on The Shib Daily.

Crypto Heist Fallout: How a Connecticut Family’s Lambo Led to a Failed Ransom Plot

Lawrence Damilola — Thu, 10 Oct 2024 16:09:33 +0000

A Connecticut couple, the parents of a 19-year-old honors student suspected of involvement in a $243 million crypto theft, were kidnapped and assaulted while out house-hunting in a new Lamborghini, prosecutors revealed. The kidnapping occurred one week after their son allegedly took part in a sophisticated cryptocurrency scam, raising unsettling questions about possible connections between the two incidents.

Crypto Crime: The Carjacking Incident

On the afternoon of August 25, 2024, in Danbury, Connecticut, a married couple in their 50s, driving a Lamborghini Urus with temporary tags, were rear-ended by a Honda Civic in a gated community. Immediately after, three men from a following van assaulted the couple and forced them into the van. Local police pursued the vehicle, which later crashed and was abandoned. The police found the couple inside the van, bound with duct tape and showing signs of physical assault, particularly the husband, who was attacked with a baseball bat.

Six suspects, aged 18 to 26, all from Florida, were arrested and face charges including first-degree assault, kidnapping, and reckless endangerment. According to the authorities, the suspects intended to hold the couple for ransom, believing their son had access to significant amounts of cryptocurrency due to his involvement in the massive cyber heist.

One of the alleged masterminds of the kidnapping plot, Angel “Chi Chi” Borrero, 23, had previously been arrested in 2022 for aggravated assault. Borrero and his accomplices believed that by abducting the couple, they could force them to hand over part of the stolen cryptocurrency.

The $243 Million Crypto Theft

The carjacking stemmed from the couple’s son’s alleged involvement in a $243 million cryptocurrency scam. According to information provided by ZachXBT, a cryptocurrency crime investigator, the son, identified as Veer Chetal, was part of a cybercriminal group responsible for executing the heist. The scam involved a phone-based social engineering attack, where the perpetrators tricked the victim into revealing sensitive information, including Gmail and iCloud credentials, which led to the theft of the cryptocurrency from a Washington, D.C. resident.

ZachXBT’s investigation linked Chetal, who used the alias “Wiz” in online chatrooms, to the stolen cryptocurrency. A Discord chat session screen recording revealed his involvement. Additionally, the group members boasted about their crime in these chatrooms, referencing their real names and online handles, further implicating them in the theft.

3/ Here is a private video recording showing the live reaction by multiple of the threat actors to receiving $238M.

Theft txn hash
4064 BTC – Aug 19 at 4:05 am UTC
4b277ba298830ea538086114803b9487558bb093b5083e383e94db687fbe9090 pic.twitter.com/djSxBTkOF8
— ZachXBT (@zachxbt) September 19, 2024

The Connections to An Organized Cybercrime

The suspects involved in the kidnapping and crypto scam appear to be part of a larger network of cybercriminals known as “The Com,” a decentralized group of individuals collaborating on various cybercrimes, including extortion, theft, and cryptocurrency scams. Members of this network often flaunt their wealth, using stolen funds to purchase luxury goods, cars, and real estate.

Several members of the group, including those implicated in the $243 million heist, were also involved in previous smaller-scale cyber crimes. The group’s members frequently post videos and images on social media, showing off their illicit gains from their crypto scams, such as luxury cars, jewelry, and expensive vacations. One of the suspects, identified as Malone “Greavys” Lam, allegedly used stolen funds from the heist to buy over 10 luxury cars and spend vast sums at nightclubs.

As authorities continue to trace the stolen cryptocurrency, further charges are expected. Two suspects, Lam and Jeandiel Serrano, have already been charged with conspiracy to commit wire fraud and money laundering. Investigators are also working to uncover the full scope of the crime, as well as the identities of all individuals involved in the scheme.

While Chetal has not yet been formally charged, evidence gathered by investigators strongly links him to the heist.

The Miami-area men arrested for the kidnapping are currently being held on bonds ranging from $1 million to $2 million.

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Phishing Attack Costs $2.2 Million in Ethereum – One Wrong Click, Big Consequences

Lawrence Damilola — Thu, 10 Oct 2024 15:48:24 +0000

A recent Ethereum phishing attack has resulted in the loss of approximately $2,230,000 after a user mistakenly signed a malicious transaction.

According to Web3 Antivirus, the incident was caused by the victim interacting with a fraudulent address, leading to the transfer of a significant amount of Ethereum-based assets.

The Ethereum transaction was successfully executed in block 20929866, confirmed within 14 seconds on Wednesday. The total value lost in the transaction amounted to over $2.2 million, with the attacker exploiting a vulnerability by tricking the user into signing the transaction. The transaction fee totaled 0.0454 ETH, equivalent to around $109.10 at the current Ether price of $2,368.44.

Details of the transaction. Source: Etherscan

The funds were transferred from the victim’s wallet address (0xFCC5ACd50ae590889D2A53343D35b5fb80d403C2) to a fraudulent address identified as Fake_Phishing504944. The transfer involved Ethereum-based tokens, including 67.001 aETH and a massive 2,229,311.57 units of Aave Ethereum (aEthsD). Despite the relatively small gas fees, the transaction was highly damaging due to the large sum of cryptocurrency assets involved.

This occurence emphasizes the importance of double-checking Ethereum transactions before signing. Phishing attacks like these exploit users by creating fake smart contracts or fraudulent addresses, leading to massive financial losses in a matter of seconds. The transaction hash recorded on Etherscan demonstrates how quickly such attacks can occur once a user interacts with malicious entities.

Web3 security experts have continuously advised Ethereum users to take extra precautions when dealing with suspicious or unfamiliar addresses. To avoid falling victim to phishing attacks, always verify the authenticity of the wallet or contract involved before signing any transactions.

As Ethereum and other blockchain platforms grow in use and value, phishing attacks continue to pose significant risks to users. In this case, a single misstep led to a multimillion-dollar loss, highlighting the need for constant vigilance in the Ethereum ecosystem.

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FBI’s Undercover Crypto Sting Exposes $25M Fraud – Top Executives Arrested

Lawrence Damilola — Thu, 10 Oct 2024 09:23:44 +0000

Federal prosecutors on Wednesday have charged multiple crypto companies, along with 15 individuals, in a $25 million fraud and market manipulation scheme.

The charges came after an unprecedented FBI-led operation in which the agency created a fake digital token to track criminal activity in the crypto market. Acting U.S. Attorney Joshua Levy revealed details of the case in Boston, noting the arrests of several top executives and the seizure of over $25 million worth of cryptocurrency.

“This is a case where new age technology, crypto, meets an old school fraud,” Levy said. The charges include widespread “pump and dump” tactics, where cryptocurrency prices were artificially inflated through wash trading, before being sold off to unwitting investors.

The US SEC, FBI, and DOJ sued #Gotbit and other crypto firms for alleged fraud and market manipulation.#Gotbit previously claimed that they sold $WATER to lower the price to a fair level.

However, #Gotbit sold significantly more tokens than purchased!https://t.co/qtYsQvX6OB pic.twitter.com/8OWV5qOnMi
— Lookonchain (@lookonchain) October 10, 2024

The FBI’s operation, named “Operation Token Mirrors,” targeted Gotbit, ZM Quant, CLS Global, and other firms that allegedly manipulated trading volumes to inflate the value of various tokens. One of the key tools in the investigation was NexFundAI, a digital token created by the FBI to lure suspects into fraudulent behavior. According to authorities, ZM Quant, CLS Global, and MyTrade conspired to manipulate the token on the Ethereum blockchain, which helped build the case against them.

Among those charged is Manpreet Kohli, CEO of Saitama, a crypto firm that once boasted a market value of $7.5 billion. Kohli was arrested in the UK, and five other current or former employees of Saitama were also charged, with three agreeing to plead guilty. Aleksei Andriunin, CEO of Gotbit, was arrested in Portugal on charges of leading a market manipulation scheme from 2018 to 2024. Prosecutors allege that Andriunin and his team used wash trading to inflate token volumes for several cryptocurrency clients.

“This is about tricking investors,” Levy said during the announcement of the charges, emphasizing the fraudulent nature of the defendants’ actions.

Other individuals charged include Liu Zhou, founder of MyTrade, who has already agreed to plead guilty, as well as employees from Hong Kong, Russia, and the UAE who worked for ZM Quant and CLS Global. The U.S. Securities and Exchange Commission has also filed related civil suits against the defendants.

Additionally, Michael Thompson from Virginia, associated with a crypto firm named VZZN established by an ex-Saitama staff member, and Bradley Beatty from Florida, accused of deceitfully advertising his cryptocurrency business, Lillian Finance, were among those indicted.

The post FBI’s Undercover Crypto Sting Exposes $25M Fraud – Top Executives Arrested first appeared on The Shib Daily.

XRP ETF Race Heats Up: Canary Capital Joins the Fray – But Will It Get the Green Light?

Lawrence Damilola — Thu, 10 Oct 2024 08:19:52 +0000

Canary Capital has officially entered the competitive landscape of cryptocurrency ETFs by filing for a spot XRP exchange-traded fund (ETF). This move, announced just days after Bitwise submitted a similar application, has intensified speculation about whether the U.S. Securities and Exchange Commission (SEC) will approve either of these filings.

This application, submitted on Tuesday— just a week after Bitwise’s similar move—marked growing interest in offering investors exposure to XRP without needing to hold the asset directly. However, the likelihood of approval by the SEC remains debatable, especially given the ongoing legal challenges surrounding XRP.

Canary Capital’s proposal aims to expose investors to XRP through a traditional brokerage account, eliminating the challenges of acquiring and holding the cryptocurrency directly. According to the filing, the ETF would track the price of XRP using the Chicago Mercantile Exchange (CME) CF Ripple index, a real-time price benchmark. The firm emphasized that the fund would not use derivatives to track the cryptocurrency’s price, avoiding potential counterparty and credit risks often associated with such products.

Canary Capital highlighted that the fund’s structure could enable investors to implement strategic and tactical asset allocation strategies involving XRP efficiently. However, key details, including the identity of the custodian for the ETF and the ticker under which it would trade, have yet to be disclosed.

Experts like Alex Thorn, head of research at Galaxy Digital, have expressed skepticism about the ETF’s success if the SEC proceeds with its appeal against Ripple. Thorn mentioned that if the SEC follows through with its challenge, the “likelihood of this ETF filing succeeding drops to near zero” due to regulatory uncertainty. This legal battle, stemming from the SEC’s classification of XRP as an unregistered security, casts a shadow over the potential approval of any XRP-related ETFs.

SEC has until next week (Oct. 7) to appeal Judge Torres’ July 2023 ruling (which held that secondary sales of XRP through exchanges were not securities)

likelihood of this ETF filing succeeding drops to near zero if they do appeal (i’ll be very surprised if they don’t appeal) https://t.co/FBGVZPNvwV
— Alex Thorn (@intangiblecoins) October 1, 2024

Bloomberg Intelligence ETF analyst Eric Balchunas also weighed in, suggesting that political factors, such as the outcome of the 2024 U.S. elections, could play a pivotal role in determining the fate of XRP ETFs. He argued that under a more crypto-friendly administration, the chances of approval would increase significantly, whereas continuing the current regulatory approach would likely delay any progress.

Nate Geraci, president of the ETF Store, on the other hand, remained optimistic, underlining that approval is a “matter of when, not if.” However, he echoed concerns that regulatory clarity might take longer to achieve unless there’s a change in leadership or policy direction at the SEC. The firm’s appeal against Ripple has led many to believe that resolving the legal battle will be essential before any XRP ETF can move forward.

The broader market remains cautious. Since the filings, XRP’s price has shown little reaction, reflecting investors’ wait-and-see approach. Despite the enthusiasm around potential XRP ETFs, the regulatory environment will likely determine when or if these funds will be approved.

Overall, while Canary Capital and Bitwise’s applications represent a step forward for XRP, the uncertainty associated with the SEC’s actions remains a significant hurdle to their approval.

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Russia’s ‘Crypto Queen’ Accused of Large-Scale Crypto Fraud

Lawrence Damilola — Wed, 09 Oct 2024 15:33:35 +0000

Valeria Fedyakina, known as the “Crypto Queen” and “Bitmama,” is under investigation for orchestrating cryptocurrency fraud operations in Russia.

Reports suggest she managed large-scale cash transfers using Bitcoin, allegedly taking physical cash from clients and transferring the funds abroad, primarily to Dubai. The Russian TV channel Vesti aired an exposé showing videos reportedly taken by Fedyakina displaying suitcases full of cash linked to her operations.

Crypto-Powered Cash Transfers to Dubai

Authorities claim Fedyakina offered crypto-based exchange services, with one anonymous victim stating, “She told me: ‘I have people who work in armored cars. They come, and they take cash from you. They bring it to my office. You hand over the money here, and you receive it in Dubai.’” The report also showed how large sums of cash, possibly up to $1 million, could fit into suitcases allegedly delivered to her office for crypto exchanges.

Fedyakina reportedly persuaded wealthy clients to use her services to transfer money abroad, using Bitcoin as a remittance tool. Prosecutors suspect she defrauded multiple clients, with one victim claiming he handed over 6.7 billion rubles (around $70 million) in cash to Fedyakina’s exchange services.

Fraudulent Investment Schemes

In addition to the cash transfers, Fedyakina is accused of convincing clients to invest in fake projects, including hotels in Dubai and oil-buying ventures. One anonymous individual told Vesti that Fedyakina asked him to invest $8 million in an oil-related project, saying, “Come on. Let’s buy oil ourselves. Let’s export it ourselves. And then let’s sell it by ourselves.”

Fedyakina presented seemingly authentic documents and PR materials to create the appearance of legitimacy. Ivan Mironov, a lawyer for one of the victims, stated, “Fedyakina used official-looking documents and serious-looking PR materials […]. She wanted to give the impression she was the kind of financial genius that could turn over a billion [rubles] in a day.”

Fedyakina has been in custody for over a year, charged with large-scale cryptocurrency investment fraud. Her detention has been extended until December 15, 2024, while her legal team reviews the case and prepares her defense. Despite being pregnant when first arrested, the court denied her release, and she later gave birth while in custody. Russian authorities have moved her to a special cell equipped with childcare facilities.

The “Crypto Queen” could face up to 10 years in a penal colony if convicted.

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‘Irresponsible’: Developer Rejects Satoshi Claims in New HBO Documentary

Lawrence Damilola — Wed, 09 Oct 2024 14:16:58 +0000

Peter Todd, an early Bitcoin developer, has strongly denied claims made in the new documentary by HBO titled Money Electric: The Bitcoin Mystery, which suggests he could be Satoshi Nakamoto, the creator of Bitcoin.

Todd took to X (formerly Twitter) to refute the allegations, criticizing the film’s speculative nature and accusing its makers of endangering his safety by associating him with the Bitcoin creator. Despite Todd’s denial, the documentary has stirred renewed debates within the cryptocurrency community.

I'm not Satoshi.
— Peter Todd (@peterktodd) October 8, 2024

HBO is behind the release of Money Electric, continuing its tradition of producing investigative documentaries on high-profile, controversial subjects. Cullen Hoback, known for directing Q: Into the Storm, directed the film, which HBO Documentary Films produced in collaboration with Hyrax Films, HyperObject Industries, and Hello Pictures. Executive producers include Adam McKay, Todd Schulman, and Cullen Hoback, all of whom have a track record of tackling complex and polarizing topics.

HBO’s motivation for releasing this documentary stems from its strategy of diving into real-world issues with global significance, particularly in areas like cryptocurrency, which continues to shape financial and technological landscapes.

The documentary, which premiered yesterday, is available on HBO’s streaming platform, Max. It takes viewers on a globe-spanning investigation, attempting to solve one of the tech world’s biggest mysteries: the true identity of Satoshi Nakamoto. Throughout the film, Hoback follows various leads and interviews industry experts, gradually focusing on Peter Todd. The film’s climax features Todd teasingly suggesting he could be Nakamoto, though later contradicting this claim, adding to the ambiguity.

Todd has criticized HBO for not consulting him before the documentary’s release and for exaggerating the evidence against him. Also speaking to CNN, he called the claims irresponsible, pointing out that the documentary makes speculative leaps, fueling conspiracy theories. He also expressed concerns for his personal safety due to being linked to Nakamoto, a figure who potentially controls a significant fortune in Bitcoin.

HBO’s involvement in producing Money Electric aligns with its broader content strategy, which often explores significant societal, financial, and technological issues. The film is the latest in HBO’s lineup of documentaries that delve into real-world mysteries with global relevance, particularly focusing on the high-stakes world of cryptocurrency and the enduring mystery of Nakamoto’s identity.

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Crypto Businesses Choose Dubai, Switzerland, South Korea Over US in 2024: Report

Lawrence Damilola — Wed, 09 Oct 2024 11:07:43 +0000

Dubai, Switzerland, and South Korea have been identified as top destinations for cryptocurrency businesses in 2024, largely due to their crypto-friendly regulatory environments.

According to a Social Capital Markets report, these countries provide clear legal frameworks and favorable tax policies, making them attractive hubs for the growing blockchain and cryptocurrency sectors. This contrasts sharply with the regulatory climate in the United States, where businesses face more stringent oversight and legal uncertainty.

Top 10 crypto business-friendly countries. Source: Social Capital Markets

Dubai Ranks First Among Crypto-Friendly Countries

Dubai took the top spot as the most crypto-friendly country with its proactive regulatory measures and tax policies. It imposes no capital gains tax and has a relatively low corporate tax rate of 9%. The establishment of the Virtual Asset Regulatory Authority (VARA) and the Dubai Financial Services Authority (DFSA) ensures clarity for crypto businesses operating in the region. Additionally, Dubai has specialized infrastructures like the DMCC Crypto Centre, attracting over 550 crypto companies to the emirate.

Switzerland Ranks Second

Switzerland holds second place with its well-established regulatory framework and tax-friendly environment. The Swiss Financial Market Supervisory Authority (FINMA) requires registration of crypto firms, providing a stable legal landscape. In regions like Zug, known as “Crypto Valley,” over 900 registered companies benefit from Switzerland’s investor-friendly tax policies, including a 7.8% capital gains tax and corporate tax rates between 12% and 21%.

South Korea Makes It to #3 Due To Its Evolving Regulatory Framework

South Korea ranks third, driven by its developing regulatory framework and strategic tax policies. The Korea Financial Intelligence Unit (KFIU) and the Financial Services Commission (FSC) are creating a legal environment that allows for cryptocurrencies to be integrated into the financial system. South Korea has postponed the introduction of capital gains tax on cryptocurrency until 2025, offering temporary relief to crypto businesses

What About The United States?

In contrast, the United States has adopted a more careful approach to crypto regulation, with agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) increasing their oversight of digital assets. The U.S. regulatory environment is more fragmented and emphasizes consumer protection and market stability, often leading to business legal uncertainty.

While the U.S. leads in crypto adoption, with thousands of businesses accepting digital assets, the regulatory challenges are prompting some crypto ventures to relocate to countries like Dubai, Switzerland, and South Korea.

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South Korean Soldiers Found Trading Military Secrets for Crypto: Report

Lawrence Damilola — Tue, 08 Oct 2024 15:24:24 +0000

A South Korean investigation has revealed that soldiers have compromised military secrets in exchange for cryptocurrency.

According to TV Chosun, the investigation found 29 cases of leaked classified information. One notable case involved a captain accused of sharing confidential documents about a special forces unit’s wartime missions. In return, the captain reportedly received 48 million won ($35,700) in cryptocurrency.

The investigation follows earlier reports that at least three active-duty soldiers handed over military passwords and secret documents to loan sharks. Prosecutors believe these soldiers traded the information to either invest in cryptocurrency or to pay off debts related to crypto investments. In one instance, authorities sentenced a captain to a suspended jail term and discharged him from the army after they found him guilty of leaking military secrets.

President Yoon Suk Yeol and his Philippines counterpart Ferdinand Marcos Jr. agreed on South Korea's greater participation in the Southeast Asian country's bid to boost military readiness, build infrastructure and introduce nuclear energy.https://t.co/8BANoGei8n
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) October 7, 2024

Multiple Incidents of Leaked Military Data

Data compiled by lawmaker Kang Dae-sik from the Ministry of National Defense shows that 29 cases of military secrets have leaked since 2021. The data revealed that six cases occurred in 2021, followed by eight in both 2022 and 2023. As of July 2024, seven additional cases have been recorded.

In 2021, a captain exchanged military secrets for money. Another officer took photos of a Korean Joint Command and Control System terminal and shared the images via the Telegram messaging app. The recipient of these images has not been identified. The data also showed senior soldiers selling classified information to private defense companies while another soldier sold copies of a top-secret military manual.

Some cases were linked to security lapses and misuse of personal devices. In one instance, a soldier sent videos of classified military equipment to his girlfriend via KakaoTalk. The soldier later claimed he intended to show her his daily life in the army.

Prosecutors have also indicted three loan sharks involved in these incidents, accusing them of accepting military secrets in exchange for illegal cash loans. Authorities are continuing to investigate further cases involving soldiers who may have been involved in similar activities, including the unauthorized sale or sharing of sensitive military data.

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National Bank of Bahrain Unveils First Bitcoin-Linked Investment

Lawrence Damilola — Tue, 08 Oct 2024 13:47:34 +0000

The National Bank of Bahrain (NBB) has introduced the first Bitcoin-linked structured investment in the Gulf Cooperation Council (GCC) region.

This product was launched in collaboration with ARP Digital, a digital asset firm, and was announced during the Fintech Forward 2024 event, according to local media. The investment product is available exclusively for accredited investors across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

The Bitcoin-linked structured investment offers exposure to Bitcoin’s growth, with returns capped at a predefined threshold. Investors are also provided with 100% capital protection in case of a downward trend, offering a secure option for accredited investors seeking exposure to Bitcoin.

ARP Digital, co-founded by a former Goldman Sachs partner, partnered with NBB to develop this investment product. The firm, which offers services such as crypto trading, custody, and portfolio management, received an operational license from NBB in April. Abdulla Kanoo, co-founder and co-CEO of ARP Digital, said the product provides Bitcoin exposure “within a highly secure framework” and caters to investors looking for a structured and calculated approach to digital assets.

The introduction of this investment product marks a notable development in the GCC region’s financial landscape. The market now offers new options for investors to diversify their portfolios with exposure to Bitcoin, while benefiting from secure capital protection measures.

Bahrain Crypto Expansion

The National Bank of Bahrain’s product launch follows the broader trend of Bahrain becoming a crypto hub in the Middle East. The Bahrain Central Bank recently granted a payment service provider license to Crypto.com so it can start offering e-money and fiat-based payment services. Major crypto exchanges like Binance and BitOasis are also operating in the country under local licenses.

According to a Chainalysis report, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024. The majority of transactions in the region were conducted by institutional and professional investors, with centralized exchanges handling most of the volume.

With the launch of its Bitcoin-linked investment product, the National Bank of Bahrain continues to expand its offerings, further contributing to the country’s role in the MENA region’s growing crypto ecosystem.

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Robinhood Legal Chief Dan Gallagher Eyed for SEC Chair if Trump Wins

Lawrence Damilola — Tue, 08 Oct 2024 13:07:03 +0000

Former U.S. regulators and securities lawyers have suggested that Dan Gallagher, Robinhood’s chief legal officer, may be a potential candidate for chair of the Securities and Exchange Commission (SEC) if Donald Trump wins the 2024 presidential election.

Gallagher, who served as an SEC commissioner from 2011 to 2015, was the CLO at Robinhood in 2020. A report from Politico on October 7 cited a former SEC official who described him as a “natural choice” for the position.

Dan Gallagher is not the only name mentioned for the role. Other former officials are reportedly being considered, including Chris Giancarlo, former chair of the Commodity Futures Trading Commission (CFTC), and Robert Stebbins, former SEC General Counsel. SEC Commissioner Hester Peirce, known for her pro-crypto stance, was also mentioned as a possible candidate.

Trump’s Statements on SEC Leadership

Trump has been vocal over his dissatisfaction with current SEC Chair Gary Gensler. In July, he said that if elected, he would remove Gensler “on day one” of his presidency. Trump’s comments come as many in the crypto industry have voiced criticism of the SEC’s regulatory approach under Gensler’s leadership.

As of October, polling data shows a tight race between Trump and Vice President Kamala Harris in both national and battleground state polls. The Politico report noted that Trump has made no formal announcements about potential candidates for SEC leadership, but former regulators and industry experts have frequently mentioned Dan Gallagher.

Possible Pro-Crypto Influence

While Trump has yet to finalize his cabinet picks, his campaign has dismissed rumors about other possible appointments. Trump denied considering JPMorgan CEO Jamie Dimon or BlackRock CEO Larry Fink for Treasury Secretary roles. However, he has suggested that Elon Musk could have a role in his administration if reelected.

Vice President Kamala Harris, who is running against Trump, has not indicated whether she would retain Gensler as SEC Chair if she wins the election. In September, Harris said she intended to support the digital asset industry in 2025, leading to speculation about potential changes in SEC leadership. Gensler’s current term is set to expire in June 2026, though Harris could request his resignation before then. Entrepreneur Mark Cuban has also shown interest in leading the SEC under a Harris administration, according to reports from September.

The SEC’s future leadership remains a point of interest as the 2024 election approaches.

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ECB Official Proposes European Unified Ledger for Digital Assets

Lawrence Damilola — Tue, 08 Oct 2024 12:24:59 +0000

An official from the European Central Bank (ECB) is proposing the adoption of a “European ledger,” or a unified platform that would bring digital assets and money across Europe onto a single system.

At a symposium hosted by the German central bank recently, ECB Executive Board member Piero Cipollone noted that such a ledger could reduce fragmentation in the region’s financial markets.

Cipollone highlighted that Europe’s conventional capital markets are divided and face the challenge of inconsistent laws, yet there is an opportunity to establish a cohesive platform for digital assets. He described the idea as a “digital capital markets union,” underscoring the possibility of achieving a more unified financial system.

DLT Adoption in EU Banks

Distributed ledger technology (DLT) has already gained traction among banks in the European Union. “More than 60% of banks in the European Union are exploring or experimenting with DLT, and another 22% already use it,” Cipollone stated. He pointed out that while DLT presents an opportunity for financial integration, it does not inherently solve the issue of fragmented markets.

“Non-interoperable technological ecosystems in each country – shaped by diverging national regulatory regimes – have created siloed pools of asset liquidity, further entrenching fragmentation,” Cipollone said. He also indicated that while DLT is currently being used mainly for issuing assets, its potential could extend to negotiation, settlement, and custody. This could help reduce costs and enable continuous operations.

Central Bank Money as a Cornerstone of Stability

Cipollone also emphasized the importance of central bank money as a key element in ensuring stability. “Our primary objective in this evolving landscape is to ensure that central bank money – the safest and most liquid settlement asset – remains a cornerstone of stability, even in a capital market based on tokens and DLT,” he said.

The concept of a unified ledger, where both cash and assets coexist on the same platform, has been supported by other institutions, including the Bank for International Settlements. He noted that traditional finance may also benefit from the flexibility provided by competing DLT platforms.

Per Cipollone, the ECB continues to explore ways to settle DLT transactions with central bank money but said, “Relying on existing interoperability solutions over the long term could perpetuate inefficiencies.”

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21Shares Calls for Unified Crypto Rules Across EU

Lawrence Damilola — Tue, 08 Oct 2024 12:06:41 +0000

Crypto exchange-traded product (ETP) issuer 21Shares has called on European Union regulators to implement a unified framework for including crypto assets in investment products.

Yesterday, 21Shares asked the European Securities and Markets Authority (ESMA) to adjust its rules to allow crypto assets in Undertakings for Collective Investment in Transferable Securities (UCITS) funds, which cater to retail investors.

The company noted inconsistencies in the current EU regulations for including crypto in UCITS funds, with some countries allowing it while others do not. “Germany and Malta allow UCITS funds to hold crypto, but other countries such as Luxembourg and Ireland don’t,” said 21Shares in a statement. According to the company, these inconsistencies cause confusion for investors across the region.

21Shares emphasized the need for a consistent regulatory approach across the EU to provide clarity for retail and institutional investors. The firm stated that establishing uniform rules would protect investors while aligning Europe with markets such as the United States and Hong Kong, where regulations are clearer.

Mandy Chiu, Head of Financial Product Development at 21Shares, commented on the challenges investors face due to the existing regulatory framework. “The current regulations are a patchwork that creates confusion and prevents retail investors from accessing digital assets,” she said. Chiu added that clear rules from ESMA could offer investors new opportunities in a regulated environment, enhancing portfolio diversification while ensuring investor protection.

The firm further suggested that ESMA establish guidelines for indirect exposure to crypto assets through ETPs, which are traded similarly to securities. According to 21Shares, this would allow investors to access crypto in a safe, regulated manner. The company believes that a unified regulatory stance would encourage market stability and growth in the crypto space.

In May, ESMA launched a consultation to review eligible assets for UCITS funds, which closed in August. The regulator is currently considering the feedback received.

21Shares operates over 40 crypto ETPs listed on 11 exchanges, including a U.S.-based spot Bitcoin ETF operated jointly with ARK Invest, which holds $2.64 billion in assets under management.

Chiu reiterated the importance of regulatory clarity, stating, “By providing a consistent set of rules across Europe, ESMA could open up new avenues for investors to diversify and enhance their portfolios in a regulated environment designed for investor protection.”

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Bitcoin Remains Top Asset in 2024 Despite Q3 Challenges: Report

Lawrence Damilola — Mon, 07 Oct 2024 15:08:34 +0000

Bitcoin has remained the top-performing asset of 2024 despite challenges in the third quarter, according to a report from the New York Digital Investment Group (NYDIG).

The report, issued last friday, noted that Bitcoin recorded a modest 2.5% gain during Q3, recovering from a decline in the second quarter. However, the cryptocurrency faced persistent selling pressure throughout the period.

“Bitcoin is still the best-performing asset class in 2024, but its lead has narrowed,” said Greg Cipolaro, head of research at NYDIG. He added that Bitcoin has experienced a 49.2% year-to-date increase, reflecting its resilience despite market challenges.

Year-to-date returns. Source: NYDIG

Bitcoin encountered several headwinds during the third quarter. These included creditor distributions from the Mt. Gox exchange and Genesis, amounting to nearly $13.5 billion, which added to market pressure. Cipolaro also noted that sales by the U.S. and German governments further contributed to the selling environment.

Alongside these challenges, other asset classes, such as precious metals and certain equity sectors, have seen strong gains in the year. “Most asset classes have had a banner year,” Cipolaro remarked, acknowledging the strong performance across different sectors.

Despite a traditionally weak September performance, Bitcoin managed to achieve a 10% gain during the month. The report attributed this positive result partly to growing demand for U.S. spot exchange-traded funds (ETFs), which saw $4.3 billion in inflows during the quarter. Increased corporate interest in Bitcoin also provided support, with companies like MicroStrategy and crypto miner Marathon Digital contributing to the upward trend.

Additionally, Bitcoin’s correlation with U.S. equities rose slightly during the period. Cipolaro noted that the rolling 90-day correlation between Bitcoin and U.S. stocks increased to 0.46 by the end of Q3. Despite this rise, he emphasized that the correlation remains relatively low, allowing Bitcoin to offer diversification benefits in multi-asset portfolios.

Political developments also influenced market sentiment in the latter part of Q3. According to Cipolaro, factors such as former President Donald Trump’s endorsement of the cryptocurrency industry, combined with monetary easing measures from the Federal Reserve and stimulus efforts from China’s central bank, provided a favorable backdrop for the market.

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US Is Bent On Seizing Back $2.67M in Crypto Stolen by Lazarus Group

Lawrence Damilola — Mon, 07 Oct 2024 14:41:16 +0000

The United States government has initiated legal action to recover approximately $2.67 million in cryptocurrency stolen by the Lazarus Group, a North Korean-affiliated hacking organization. Last Friday, two complaints were filed seeking to seize assets connected to major hacks targeting the Deribit and Stake.com platforms.

The first legal filing seeks to recover about $1.7 million in Tether (USDT) stolen from the Deribit exchange during a 2022 cyberattack. The complaint states that the Lazarus Group breached the platform’s hot wallet, siphoning $28 million. The stolen funds were funneled through Tornado Cash, a known cryptocurrency mixer used to obscure transaction trails.

Another filing is aimed at recovering approximately $970,000 in Avalanche-bridged Bitcoin (BTC.b) taken during a 2023 hack on Stake.com. The hackers targeted the gambling platform, leaving it with over $41 million in losses.

Filing from the US government to seize funds linked to North Korean Hackers. Source: PACER

FBI Issues Warnings on Lazarus Scams

The FBI has warned the public about several social engineering schemes linked to the Lazarus Group, with a particular focus on fraudulent job offers. The hackers reportedly lure victims into downloading malicious software by presenting fake job applications. Once the malware is installed, victims face the risk of data theft and financial losses.

The legal filings mark a continued effort by U.S. authorities to address the cybercrimes attributed to the Lazarus Group, which has been linked to numerous high-profile cryptocurrency thefts over the years.

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Russian Evil Corp Syndicate May Have Links With LockBit: Report

Lawrence Damilola — Mon, 07 Oct 2024 14:15:21 +0000

International law enforcement efforts have intensified following reports that the Russia-based cybercrime syndicate Evil Corp may have ties to the ransomware group LockBit.

A recent report by Chainalysis reveals that both groups share cryptocurrency infrastructure, indicating potential collaboration. This development comes as the U.S., UK, and Australian governments imposed sanctions on key Evil Corp members for their involvement in widespread financial theft and ransomware attacks.

The U.S. Department of the Treasury, alongside the UK’s Foreign, Commonwealth & Development Office (FCDO) and Australia’s Department of Foreign Affairs and Trade (DFAT), imposed sanctions on key figures within Evil Corp last week. This follows the unsealing of an indictment by the U.S. Department of Justice charging an Evil Corp member with using BitPaymer ransomware to target U.S. victims. Evil Corp is primarily known for developing the Dridex malware, which has stolen over $100 million from financial institutions across more than 40 countries.

The Chainalysis report also highlighted ransomware strains associated with Evil Corp and cryptocurrency clusters tied to LockBit have used the same deposit addresses at centralized exchanges. This overlap suggests potential cooperation or shared infrastructure between the two groups. Earlier reports indicated that the group had used LockBit’s ransomware to rebrand and evade sanctions. Additionally, several key members of Evil Corp are believed to have close ties, further strengthening speculations of internal links within the group.

Evil Corp and Russian State Connections

Evil Corp’s leader, Maksim Victorovich Yakubets, has been accused of working with Russia’s Federal Security Service (FSB) and attempting to obtain a license to handle classified information. His father, Viktor Yakubets, and father-in-law, Eduard Benderskiy, a former FSB officer, have also been linked to the group, raising concerns about the group’s potential connections to Russian state entities.

Law enforcement across multiple countries have coordinated efforts to dismantle the syndicate and its affiliates. Recent actions include the arrest of a suspected LockBit developer by French authorities and the seizure of servers linked to LockBit’s ransomware infrastructure by Spanish officials.

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Metaplanet Expands Bitcoin Holdings with $6.7M Buy

Lawrence Damilola — Mon, 07 Oct 2024 12:57:42 +0000

Japanese investment firm Metaplanet announced on Monday that it has added 108.78 Bitcoin to its holdings, purchasing the cryptocurrency for 1 billion yen ($6.7 million). This acquisition increases the company’s total Bitcoin holdings to 639.5 BTC, valued at approximately 5.96 billion yen ($40 million).

*Metaplanet purchases additional 108.78 $BTC* pic.twitter.com/Pz2AHupm1T
— Metaplanet Inc. (@Metaplanet_JP) October 7, 2024

Metaplanet has been following an aggressive Bitcoin acquisition strategy, similar to that of U.S. company MicroStrategy. The firm has been purchasing Bitcoin as part of a corporate treasury management plan, a shift aimed at addressing economic challenges in Japan, such as negative interest rates and quantitative easing. Since adopting this Bitcoin-focused strategy, the company has seen a surge in its stock value, signaling strong investor interest in its approach.

Last week, Metaplanet made another Bitcoin purchase as the crypto market entered the fourth quarter with optimism. Shortly after, the company reported earning 23.9 Bitcoin ($1.4 million) by selling 223 Bitcoin put options to Singapore-based QCP Capital. This transaction allowed the firm to benefit from Bitcoin’s price volatility while maintaining a fully cash-backed position.

In addition to expanding its Bitcoin holdings, Metaplanet partnered with SBI VC Trade, a subsidiary of the SBI Group. This partnership focuses on corporate custody services for digital assets, including Bitcoin, and aims to ensure compliance with tax regulations. The collaboration is intended to streamline the management of its digital assets.

The company has also been raising capital through stock acquisition rights, planning to use the funds for additional Bitcoin purchases or other digital asset opportunities. The firm’s consistent investments in Bitcoin align with its overall strategy of focusing on digital currencies to manage its treasury.

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Dev Who Burned Himself For His DARE Token Calls It Quits

Lawrence Damilola — Mon, 07 Oct 2024 12:53:29 +0000

Mikol, the developer behind the Solana-based meme coin Truth or Dare (DARE), has announced he is stepping away from the project after a dangerous stunt left him hospitalized with third-degree burns.

The meme coin initiative that Mikol spearheaded, Truth or Dare, gained attention as he engaged in live-streamed stunts to boost his cryptocurrency’s value. Over a period of six days, Mikol’s eccentric performances escalated until a stunt involving him covering himself in isopropyl alcohol and being targeted with fireworks by his associates led to a dangerous situation. He inadvertently set himself on fire, resulting in severe third-degree burns over 30% of his body.

Now after recovering from the accident, Mikol said he is quitting the project.

He announced his decision on X.

i’m not dare dev anymore. my name is mikol and i’m human. i just wanna make it out the trenches like you. i just wanna be happy and successful. i just wanna be consistent with god and be a positive human being with an outgoing personality that puts smiles on peoples faces. life…
— Mikol (@lonemikol) October 3, 2024

DARE saw a rapid surge following the stunt, with its value increasing by 4,500% to reach a market cap of $1.82 million in just 10 hours. While Mikol was in the hospital undergoing surgery and recovery, the coin’s popularity continued to fluctuate. A second spike occurred when the developer was about to be discharged from the hospital, with DARE’s market cap climbing by another 1,735% to $2.91 million. However, the gains were short-lived, and the coin’s value plummeted by 94% in the following week, leaving the project with a current market cap of just $26,000.

During his recovery, Mikol told Decrypt that he regrets not cashing out when his wallet held $200,000, stating that he did not financially benefit from the project’s brief success. He only received $3,000 in donations from the community to cover medical bills but made no significant profits from the DARE project.

Mikol also revealed that many of his team members abandoned the project after securing their money, leaving him with only two remaining contacts. According to him, the idea for the dangerous stunt came from a close friend, who has not apologized for the suggestion.

Originally, Mikol had ambitious plans for DARE, including the development of a Truth or Dare app and even climbing Mount Everest. However, these plans have since fallen apart along with the project’s team.

He now plans to focus on building his social media presence without resorting to extreme or dangerous stunts.

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Hacker Buffet: September Served Up $120 Million in Crypto Hacks

Lawrence Damilola — Sun, 06 Oct 2024 13:25:51 +0000

Buckle up, crypto fans—September 2024 was a wild month for hacks, with over $120 million stolen in just a few high-profile heists. That’s right, hackers made off with more than your typical “rug-pull” haul, targeting centralized and decentralized platforms alike, making it one of the most significant crypto-crime months of the year.

Leading the list of casualties was Singapore-based exchange BingX, which saw an eye-watering $44 million vanish in a single incident. Not to be outdone, Indodax, one of Indonesia’s largest crypto exchanges, had $22 million stolen. Imagine waking up and realizing that a chunk of your entire platform’s assets had just…disappeared. Meanwhile, Penpie, a decentralized finance (DeFi) protocol, suffered $27 million in losses, proving that hackers aren’t picky about whether you’re centralized or decentralized—they’ll take your crypto either way.

Now, you’d think the exchanges would have beefed up their security after previous incidents, right? Well, think again. This isn’t the first time BingX has been hit. The fact that some of these platforms had vulnerabilities that were easily exploited feels like watching a horror movie where the protagonist still doesn’t lock the door.

Meme It: Hackers on a Shopping Spree

The meme potential here is gold. Picture hackers casually walking into these platforms like they’re in a supermarket, grabbing funds off the shelves like it’s an “everything-must-go” sale. Or better yet, a classic meme where a CEO is sipping coffee in a burning room, saying “This is fine,” as millions disappear behind him.

Another idea: a “Pirates of the Caribbean” meme, where hackers are decked out like swashbucklers boarding a sinking crypto ship. Exchanges, on the other hand, are the hapless sailors, desperately plugging leaks in the hull while their treasure gets stolen from under their noses.

The Bigger Picture: Is Anyone Safe?

With these hacks adding to the growing pile of crypto thefts—over $409 million stolen in Q3 alone—the question remains: is anyone’s crypto safe? Centralized and decentralized platforms alike seem vulnerable, and as these incidents pile up, trust in crypto security is hanging by a thread.

While crypto promises financial freedom, it’s increasingly becoming a high-stakes game where one wrong move could lead to massive losses. So, whether you’re trading or HODLing, the message is clear: not your keys, not your coins.

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Russian Hackers Use Fake AI Websites to Steal Crypto Wallet Info – Report

Lawrence Damilola — Fri, 04 Oct 2024 15:59:28 +0000

Russian hackers are using fake AI websites to steal sensitive information, including cryptocurrency wallet details.

According to a report from cybersecurity firm Silent Push, the hacking group behind the attack, known as FIN7, created deceptive websites that promise AI-generated non-consensual nude images but instead distribute malware.

These fake AI websites lure users by offering seemingly legitimate services that allow individuals to upload images and generate deepfake content. However, when users attempt to download the promised images, they are directed to a Dropbox link that either fails to work or delivers malware to their devices. The malware deployed, identified as RedLine and Lumma Stealer, is designed to collect sensitive data, including login credentials and cryptocurrency wallet information.

Silent Push’s senior analyst, Zach Edwards, explained that this scheme primarily targets tech-savvy users who are interested in AI-based tools. The hackers behind FIN7 have employed effective search engine optimization (SEO) tactics to ensure that their fake websites rank highly on search results, making it easier for users to fall into the trap.

At least seven of these malicious websites have been identified by Silent Push, including “aiNude.ai,” “easynude.website,” and “nude-ai.pro.” Although these sites have been taken down, cybersecurity experts are advising users who visited them to assume that their devices have been compromised. The malware installed can silently extract sensitive information, particularly focusing on crypto wallets.

FIN7 has a long history of cybercrime and is linked to ransomware groups such as DarkSide and BlackMatter, which have been responsible for several high-profile attacks. These groups have been known to demand large ransoms, such as the $20 million demand from UnitedHealth in a previous attack.

The sophisticated phishing tactics employed by FIN7 involve creating websites that look professional and credible. Users are encouraged to upload images to generate deepfakes, but instead, they are met with malware that compromises their devices. The hackers’ ability to disguise these sites as legitimate platforms, combined with their SEO tactics, has made it difficult for users to recognize the threat until it is too late.

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Cambodian Journalist Mech Dara Charged After Exposing Crypto Scams

Lawrence Damilola — Fri, 04 Oct 2024 15:55:39 +0000

Renowned Cambodian journalist Mech Dara has been arrested and charged with “incitement to cause public disorder” after sharing images on social media that reportedly showed the destruction of stairs at a religious site by a quarry operation.

The post, now deleted, has drawn accusations from authorities that Dara was attempting to create social unrest. His lawyer confirmed that he was charged under articles 494 and 495 of Cambodia’s Criminal Code, which carries a prison sentence of up to two years.

Human rights groups believe Dara’s arrest may be linked to his investigative reporting on crypto-related scams and human trafficking.

Before being taken into custody, media outlets supportive of the government dismissed his recent posts about a quarry excavation on social media as “false information.” Local officials charged Dara with attempting to “incite social unrest and disarray,” urging the Information Ministry to pursue legal measures against him.

Dara extensively covered illegal activities related to “pig butchering” schemes, where victims are manipulated into investing in fraudulent cryptocurrency schemes after being coerced and emotionally exploited.

Cambodia has become a major center for these operations, which involve forced labor and global scams. A study by a finance professor at The University of Texas estimated that global losses from such scams exceeded $75 billion from January 2020 to February 2024.

Dara received the U.S. State Department’s Trafficking in Persons (TIP) Report Hero award in 2023 for his investigative work. His reporting uncovered the involvement of Cambodian senator Ly Yong Phat in criminal syndicates linked to human trafficking and forced labor. In September 2024, the U.S. Department of Treasury imposed sanctions on Phat for his alleged role in facilitating forced labor related to these crypto scams, a move that the Cambodian government criticized.

The arrest was done on Sept 30, 2024, while Dara traveled with his family on an expressway near Phnom Penh. Military police, reportedly in six cars, stopped Dara’s vehicle and detained him without immediately providing details of the charges. His family stated that authorities claimed to have a warrant, but no explanation was given at the time of the arrest. Dara was later transferred to pretrial detention in Kandal Provincial Prison. He was not allowed to meet his legal team or family before his detention.

Human rights organizations have condemned the arrest, asserting that it is part of a broader campaign to silence independent journalism in Cambodia. Authorities have been accused of frequently using incitement charges to suppress journalists and activists. The Ministry of Information has responded by stating that Dara’s journalist credentials expired at the end of 2022 and had not been renewed.

They also added: “Falsifying information and posting of inciting messages that distort the truth, slander, fabricate false information that is done with malicious intent to ignite anger among the public, with confusions and misconceptions are not considered as freedom of expression, and if the person involved is indeed a journalist, the act of distorting the facts and fabricating false information is not considered as freedom of the press nor freedom of the publication.”

Cambodia ranks 151 out of 180 countries in the 2024 Press Freedom Index.

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Bitcoin Mining, AI Data Centers Drive Energy Demand in Texas – Report

Lawrence Damilola — Fri, 04 Oct 2024 13:11:13 +0000

Bitcoin mining has surged in popularity in Texas, contributing significantly to the state’s rising electricity demand.

According to CleanTechnica, citing a report from the Electric Reliability Council of Texas (ERCOT), the state’s power grid is expected to experience a sharp increase in energy consumption, driven by industries like cryptocurrency mining and artificial intelligence (AI) data centers. ERCOT estimates that Texas will require an additional 65,000 megawatts of electricity by 2030 to meet demand from these sectors and the growing population.

During a Senate committee meeting early this year, Texas lawmakers expressed concerns about the strain Bitcoin mining and AI data centers are placing on the state’s power grid. One of the main issues raised was the limited job creation compared to the substantial energy consumption by these facilities. Lieutenant Governor Dan Patrick warned that Texas residents could bear the burden of higher energy costs if the demand continues to escalate without proper regulation.

Bitcoin mining has already contributed to an increase in the state’s electricity usage, with large facilities consuming vast amounts of power to operate computing systems and manage cooling requirements. ERCOT projects that by 2025, these large flexible loads (LFL) will account for 54 billion kilowatt-hours of electricity, representing nearly 10% of the state’s total forecasted energy consumption. Facilities that consume 75 megawatts or more, including Bitcoin mining operations, have been categorized as LFLs by ERCOT.

In an effort to manage the growing demand, ERCOT implemented a program to regulate large-load customers. This program allows Bitcoin mining facilities and other energy-intensive operations to participate in voluntary curtailment agreements, temporarily reducing their electricity usage during peak times to maintain grid stability. These agreements are designed to help ease the burden on the power grid, especially during periods of high demand or when there is limited energy generation available.

Texas isn’t the sole state in the U.S. facing challenges with the significant electricity usage by cryptocurrency and AI industries. In Santa Clara, California, AI data centers are responsible for consuming 60% of the electricity. This caused residents to experience hikes in their bills as the city found it challenging to develop the infrastructure and transmission lines. Likewise, in a part of upstate New York, the considerable energy demands of Bitcoin mining operations have forced a local utility company to buy energy from spot markets to meet the increased demand, resulting in higher electricity charges.

In Texas, authorities are seeking solutions to avoid potential issues. Following a meeting in June, Lieutenant Governor Patrick urged the state to closely scrutinize the energy consumption of both the AI and cryptocurrency sectors. “It’s crucial for us to examine these industries closely. Despite their minimal job creation, they impose significant burdens on our power infrastructure. It’s possible that for crypto miners, the profits from selling electricity back to the grid could surpass those from their mining activities,” he highlighted.

Bitcoin mining, alongside AI data centers, remains a key factor in Texas’ increasing energy consumption, creating challenges for grid management and planning.

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CertiK: Over $750M Stolen in Web3 Security Breaches in Q3 2024

Lawrence Damilola — Fri, 04 Oct 2024 12:58:28 +0000

CertiK, a blockchain security firm, released its Q3 2024 Hack3d report, revealing over $750 million lost to Web3 security breaches across 155 incidents.

This brings the total value stolen in 2024 to nearly $2 billion. While the number of incidents declined compared to the previous quarter, the total value lost increased by 9.5%.

Phishing attacks and private key compromises were the leading causes of theft, accounting for $668 million in losses. Phishing, a technique where attackers impersonate legitimate entities to gain sensitive information, resulted in $343.1 million lost over 65 incidents. A notable phishing attack involved stealing $238 million in Bitcoin from a whale. Private key compromises, where attackers gained unauthorized access to crypto assets, resulted in $324.4 million in losses across 10 incidents.

Hack3D Report: Q3 2024

155 hacks, scams, and exploits drained $753,094,610 from Web3 in Q3 2024. This represents a 9.5% increase in value lost compared to Q2, despite fewer incidents.

Watch the breakdown in the video below.
View the full report:… pic.twitter.com/WYhp7fGFCx
— CertiK (@CertiK) October 2, 2024

The report also highlighted two significant incidents. In July 2024, WazirX, an Indian crypto exchange, experienced a major breach in which over $231 million was stolen. The stolen assets included Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), and Tether (USDT). Another attack occurred in August, where a Bitcoin whale lost 4,064 BTC, valued at $238 million, due to a wallet compromise.

In a recent incident described by CertiK as a “complex” phishing scheme, a person was deceived into authorizing a deceitful transaction. This led to the loss of $55.5 million in the stablecoin DAI. The fraudsters managed to persuade the victim to transfer control of their DSProxy smart contract, enabling them to create 55,473,618 DAI tokens in their freshly established Maker vault.

CertiK’s data also revealed that Ethereum was the most targeted blockchain during Q3 2024, accounting for $387.89 million in losses due to various hacks, scams, and frauds. Alongside Ethereum, Bitcoin was a major target, with substantial funds stolen through wallet breaches.

As of the end of Q3 2024, CertiK reported that the total losses for the year reached approximately $1.94 billion. This figure already surpasses the total losses recorded for 2023, which amounted to $1.8 billion across 751 incidents. In 2024, the average value lost per incident increased to $3.45 million from the previous year’s average of $2.45 million.

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Ripple Preps for New Legal Battle as SEC Appeals Court Decision

Lawrence Damilola — Thu, 03 Oct 2024 16:18:45 +0000

Ripple Labs CEO Brad Garlinghouse has pledged to continue the company’s legal fight with the U.S. Securities and Exchange Commission (SEC) after the regulator announced plans to appeal a recent court ruling. The appeal follows Ripple’s partial victory in a lawsuit filed by the SEC in 2020, which accused the company of illegally selling unregistered securities through its XRP token.

In a post on X (formerly Twitter) yesterday, Garlinghouse stated, “Somehow, they still haven’t gotten the message: they lost on everything that matters,” referring to the SEC’s decision to challenge the ruling. He added, “While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today.” Garlinghouse also criticized the appeal as “misguided” and “infuriating.”

If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.

Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

Ripple’s Legal Position

In July 2023, Judge Analisa Torres of the New York District Court ruled that XRP was not a security when sold on public exchanges — a decision seen as a win for Ripple. However, the judge also found that XRP sales to institutional investors violated securities laws. Ripple was fined $125 million for those sales, but the fine has been stayed as both sides await the appeal.

Stuart Alderoty, Ripple’s chief legal officer, also commented on the appeal, calling it “disappointing, but not surprising.” He noted that the company is considering a cross-appeal, stating, “The SEC’s lawsuit has been irrational and misguided from the start. We’re ready to prove that yet again in the appellate court.”

Extended Legal Battle Anticipated

The timeline for a ruling from the U.S. Court of Appeals for the Second Circuit could extend until at least January 2026, according to lawyer Fred Rispoli, who shared his analysis on X. He explained that both the SEC and Ripple are likely to file their briefs early next year, with responses due by March 2025. Oral arguments are expected in September or October of 2025.

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Ethereum Whale Sells $47.5M Worth of ETH as Market Slumps

Lawrence Damilola — Thu, 03 Oct 2024 15:31:17 +0000

An Ethereum whale participating in the blockchain’s initial coin offering (ICO) in 2014 has begun selling large portions of Ether.

According to Lookonchain, an on-chain analytics platform, the entity sold 19,000 ETH, valued at approximately $47.5 million, over the last two days. The sales followed an earlier transaction in late September, where more than 12,000 ETH, worth $31.6 million, was sent to Kraken.

Lookonchain reported that the entity acquired 150,000 ETH during Ethereum’s ICO for around $46,500. Today, that amount is worth nearly $400 million. The recent sales have coincided with a sharp decline in Ethereum prices, which have dropped by almost 10% since the start of October. On October 1, ETH was priced at $2,650 but fell to an intraday low of $2,365 by October 3, marking a 3.7% decline within a day.

The price drop has outpaced the broader cryptocurrency market, which saw a 2.6% decline in market cap on the same day. The ETH/BTC trading ratio has also fallen to 0.039, a level last seen during the mid-September slump.

The large sales and price declines have sparked commentary within the crypto community.

“Yikes, even day zero ETH OG’s are jumping ship,” said crypto trader Bluntz, referring to the ICO participant’s recent transactions. Solana advocate “Cozy The Caller” added that “Ethereum is doing nothing these days but dragging crypto even lower.”

However, Ethereum supporters remain vocal. On October 3, Ethereum educator Anthony Sassano responded to the criticism, stating, “The FUD is neverending, and most people in this industry don’t actually care about the truth.” Ryan Sean Adams of Bankless noted on October 2 that Ethereum has generated over $140 million in gross profit from nine different chains over the past year. “Each chain is an economy,” Adams stated. “Ethereum is a federated union of economies with ETH as money.”

Institutional Involvement in Ethereum ETFs

Despite recent market movements, institutional investors continue to show interest in Ethereum. On October 2, spot Ether ETFs saw inflows of nearly $20 million, driven by BlackRock, marking the largest weekly inflow. This came just a day after the largest outflow since the funds were launched.

Conversely, spot Bitcoin ETFs recorded $53 million in outflows for the second consecutive day, according to Farside Investors.

At the time of writing, Ethereum is currently trading at $2,329.36, and it is currently down by 4.41% in the last 24 hours, according to Coinmarketcap.

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Coinbase Seeks Court Order Forcing CFTC to Release SEC Docs

Lawrence Damilola — Thu, 03 Oct 2024 15:27:27 +0000

Coinbase has petitioned a federal court to compel the Commodity Futures Trading Commission (CFTC) to disclose communications with several cryptocurrency token issuers. The exchange seeks this information to defend against a lawsuit from the Securities and Exchange Commission (SEC), which alleges that Coinbase sold unregistered securities.

According to a motion filed on Tuesday, Coinbase is asking for the CFTC’s communications with the issuers of 12 cryptocurrencies that the SEC claims are unregistered securities. “This information is critical to Coinbase’s ability to defend itself against the allegations,” the company stated in its filing. The exchange also requested documents regarding the CFTC and SEC’s regulatory authority over digital assets.

Coinbase revealed that it had issued a subpoena to the CFTC in July after a prior attempt with a broader subpoena in June. The exchange noted that its first request was denied by the CFTC, which cited reasons such as “overbreadth, burden, and privilege.” Coinbase stated that the CFTC “has stonewalled” its requests and that the regulator “hasn’t even conducted a single search.”

CFTC’s Response to Subpoena Requests

The CFTC reportedly rejected the first subpoena because it was “overly broad and burdensome.” Coinbase noted that the CFTC “stated its willingness to reevaluate the subpoena if it were narrowed,” leading to a second, more focused request. However, this subpoena was also denied, with the CFTC claiming it was still “overly broad, vague, and would place an undue burden on the Commission.”

In its motion, Coinbase argued that the CFTC has not justified its claims of burden and that “no conceivable privilege could apply to them,” as the communications involved external parties. The exchange emphasized that both the SEC and CFTC have engaged with digital asset issuers in recent years to understand the regulatory environment better.

The SEC’s lawsuit, filed in June 2023, names 13 tokens as unregistered securities, including Solana, Cardano, and Polygon. Coinbase maintains that it requires access to CFTC communications to determine whether these tokens meet the definition of securities.

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Bank of America Outage Highlights Crypto Mantra: Not Your Keys, Not Your Coins

Lawrence Damilola — Thu, 03 Oct 2024 13:52:03 +0000

Bank of America’s recent technical outage, which left thousands of customers unable to access their accounts or seeing $0 balances, has reignited the cryptocurrency community’s mantra: “Not your keys, not your coins.”

The outage occurred yesterday due to a glitch affecting mobile and online banking platforms. This sparked widespread concern as customers were temporarily locked out of their finances, leading some to vent their frustration on social media. For many in the crypto space, this was a stark reminder of the importance of controlling one’s financial assets.

The Bank of America outage is a perfect case study for crypto advocates who argue for decentralized financial systems. Reports of over 20,000 complaints flooding in just hours after the issue emerged, and many Bank of America customers found themselves helpless, unable to access their funds.

This incident has reinvigorated the argument for personal control of assets through cryptocurrencies. When you own crypto and have control of the private keys — no third-party institution can block your access. For many in the crypto community, this outage reinforced their belief in decentralized systems like Bitcoin and Ethereum, which operate without reliance on centralized institutions like Bank of America.

The Crypto Bros’ Reaction

The Bank of America outage prompted a significant response from the cryptocurrency community. Many took to platforms like X (formerly Twitter) to remind people of the risks of leaving funds in the hands of large financial institutions.

“BOFA IS CENTRALIZED. Oh, wait. That’s the idea,” one user commented, emphasizing the drawback of centralization of banking systems and the fact that self-custody of crypto assets can safeguard against scenarios where banks fail. Others cited the event as another reason to adopt blockchain-based financial systems offering transparency, security, and control.

Not the first time the BOA is playing games with peoples money!
— Alex (@AlexCryptoDubai) October 2, 2024

Bank of America suffered a massive outage yesterday

– Customers unable to log in
– The ones that can see ZERO balances

You know what never goes down? #bitcoin pic.twitter.com/vgazz7jlay
— The Bitcoin Way (@Thebitcoinway_) October 3, 2024

This isn’t the initial instance where Bank of America account holders have encountered unexpected deductions from their balances. Over a year ago, numerous clients voiced their grievances on social media regarding funds absent from their deposits and issues with Zelle payments. This malfunction occurred shortly after a widespread digital disruption affected many nationwide, with Verizon facing a significant service outage. This prevented its customers from making calls or exchanging text messages.

While Bank of America issued apologies and assured that the issues were resolved, the message from the crypto community was clear: trust in centralized systems is fragile. As outages like this occur, the crypto space will continue to promote its ethos of decentralized control — where “not your keys” really does mean “not your money.”

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Aussie Police Seizes $6.4M in Crypto from Ghost App Maker

Lawrence Damilola — Wed, 02 Oct 2024 16:16:47 +0000

The Australian Federal Police (AFP) seized $6.4 million (approx. A$9.3 million) in cryptocurrency from Jay Je Yoon Jung, the creator of the encrypted Ghost network.

Authorities claim organized crime groups used the app for illegal activities, including drug trafficking and money laundering. The AFP stated today that its Criminal Assets Confiscation Taskforce (CACT) could access the cryptocurrency by deciphering the account’s seed phrase.

The seed phrase was reportedly found by analyzing digital devices recovered during a raid at Jung’s residence. The police explained, “This allowed the AFP to access the cryptocurrency to be transferred into secure AFP cryptocurrency storage.”

Jung was arrested on Sept. 17 and has been charged with five offenses, including supporting a criminal organization. According to the AFP, he faces up to 26 years in prison. The AFP also claims that Jung created Ghost solely for criminal use, with criminals allegedly utilizing the app for various illegal activities such as money laundering and contract killings.

Operation Kraken Leads to Second Crypto Seizure

The seizure is part of Operation Kraken, an ongoing AFP operation targeting the Ghost app and its users. During the operation, the AFP had previously seized $1.4 million in cryptocurrency and properties in August. Acting Commander Scott Raven emphasized the police’s determination to confiscate illegal assets: “Whether you have tried to hide them in real estate, cryptocurrency, or cash, we will identify your ill-gotten goods and take them away from you, leaving you with nothing.”

The AFP has not disclosed how the seed phrase was deciphered, citing the pending legal case. Jung remains in custody as the investigation continues.

The AFP noted that the seized cryptocurrency would be transferred to the Australian government “in due course.” According to the agency, the funds could support future law enforcement efforts. The confiscated assets are being held under the Commonwealth Proceeds of Crime Act 2002 and will be managed by the Australian Financial Security Authority on behalf of the Commonwealth.

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Prosecutors Charge South Korean Group in $22.7M Crypto Fraud

Lawrence Damilola — Wed, 02 Oct 2024 16:12:01 +0000

Prosecutors in South Korea have charged a group of suspected fraudsters accused of impersonating regulators to scam victims out of $22.7 million.

According to local media reports, the group was led by four men in their 40s who allegedly tricked users into paying $5,000 in Tether (USDT).

Fake Exchanges and Crypto Fraud in South Korea

Authorities allege that the group created fraudulent trading platforms, including BISSNEX and BDCDP, which pretended to be legitimate crypto exchanges. They reportedly used YouTube channels and the Naver Band chat app to attract investors. Prosecutors say that once victims were on these platforms, the group sent out letters that appeared to be from the Financial Supervisory Service (FSS) and the Korean National Police Agency.

One such letter, dated April 16, 2024, was published by local media and bore the official-looking seals of both the FSS and the police. The letter claimed to address users of BISSNEX and stated that the FSS and police were investigating a 41-year-old man accused of defrauding the platform’s customers. It read, “Since November last year, [the man] has been inviting thousands of BISSNEX investors to create cryptoasset trading accounts.”

BISSNEX allegedly informed its users that the man had illegally conducted financial transactions on the platform and warned that the police and FSS were investigating. It asked clients to pay a refundable $5,000 USDT deposit to assist with the probe, promising to refund the money once the investigation was complete.

South Korean police noted that these tactics resemble those used in other crypto-related fraud cases. Prosecutors said the indicted group also impersonated major firms like Shinyoung Securities and DB Financial Investment, using fake bankbooks and photos of cash in their chat groups to mislead more investors. Authorities added that the group had “distributed more fake official documents impersonating the police and the Financial Supervisory Service.”

Victims of this scheme suffered significant financial losses, with one unnamed victim telling local media, “Some victims lost 2 billion won [over $1.5 million] in investments.” Prosecutors have indicated that the investigation is ongoing.

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Uruguay Introduces Law to Regulate Crypto Market

Lawrence Damilola — Wed, 02 Oct 2024 16:07:03 +0000

Uruguay has officially introduced a law to regulate cryptocurrency, making it one of the few LATAM countries with a legal framework for crypto trading. The law, approved by parliament and signed by President Luis Lacalle Pou, grants the Central Bank of Uruguay supervisory powers over domestic crypto exchanges and operators.

According to reports from media outlets Ámbito Financiero and iProUP, the law provides the Central Bank with “supervisory and regulatory” authority over crypto-related activities, including registering crypto exchanges, fund managers, and wallet operators. The law also mandates adherence to anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. A registry system will be established, and permits will only be granted to firms meeting specific requirements.

The Uruguayan Fintech Chamber (CUF) called the law “an important framework of guarantees for the financial system.” The chamber also noted that it is a “significant milestone” for the country’s fintech sector, estimated to grow by 44% annually. However, the CUF stressed the need for more clarity from the Central Bank on how the new regulations will be implemented, stating, “It is now essential to understand how the Central Bank will implement this regulation.”

Industry figures expressed that introducing the law is a positive step. “For the first time in Uruguay, a basic framework has been established that recognizes and legislates on the existence of cryptoassets,” said the CUF.

The Central Bank began working on potential crypto regulations in 2021 and sent recommendations to the government, which were later amended and presented to parliament. The law was passed following parliamentary deliberations that concluded last month.

Other LATAM countries, such as Brazil, Venezuela, and Argentina, have previously enacted regulatory measures for the crypto sector. El Salvador, on the other hand, has taken a different approach by granting Bitcoin legal tender status.

Uruguay’s law introduces key changes to existing securities legislation, providing legal definitions for terms like “cryptoasset” and setting clear guidelines for crypto operators. Despite the law’s passage, the CUF stated that it is still waiting for details on “the forms and estimated deadlines” for the application of the regulations.

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Buterin Defends Hezbollah Betting Section on Polymarket

Lawrence Damilola — Wed, 02 Oct 2024 12:49:20 +0000

Ethereum co-founder Vitalik Buterin has expressed support for war-related betting markets on Polymarket, the decentralized predictions platform.

His comments came after crypto community member “Legendary” raised concerns on X (formerly Twitter) regarding the existence of a Hezbollah betting section. The user argued that such markets trivialize conflict by turning it into a bet, likening it to a “football game to bet on.”

Hezbollah betting section in Polymarket. Source: Polymarket

In response, Buterin defended Polymarket, stating, “There are all kinds of people (including elites) on Twitter and the internet making harmful and inaccurate predictions about conflicts.”

He added that it’s valuable to see if those with “actual skin in the game” believe something has a 2% or 50% chance of happening. Buterin emphasized that these markets are not about “making money from bad stuff happening” but about creating a space where speech has consequences without relying on government or corporate censors.

I support these existing. The point of polymarket is that from the perspective of traders it's a betting site, but from the perspective of viewers it's a news site. There's all kinds of people (incl elites) on twitter and the internet making harmful and inaccurate predictions…
— vitalik.eth (@VitalikButerin) October 1, 2024

Polymarket currently hosts markets on geopolitical events, including bets on whether Israel will invade Lebanon or if the U.S. military will take action this year. Buterin noted that while these markets may appear as betting platforms from a trader’s perspective, they act as informational tools for viewers.

Concerns Over Potential Real-World Influence

Chainlink community member Zach Rynes also raised concerns about the potential risks of these prediction markets, asking Buterin whether such could incentivize harmful actions in the real world. Rynes questioned the idea of assassination markets, where individuals might act to influence outcomes and profit from bets.

Buterin opposed such markets, stating, “The dividing line is: is the market acting as a primary incentive for people to do bad things so they can insider-trade on them?” He acknowledged the concern but emphasized that current platforms are not yet large enough to influence events on that scale.

Rynes agreed that the example was extreme but argued that any prediction market related to influenceable events carries risks. In response, Buterin suggested the introduction of size-based soft caps on Polymarket to help prevent undesirable outcomes.

Polymarket’s Future

Polymarket, which raised $45 million in its Series B funding round, is reportedly considering a new capital raise of over $50 million. The platform is also exploring the possibility of launching its own token, which could give users voting rights on governance matters.

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Indiana Man Pleads Guilty to $37M Crypto Theft

Lawrence Damilola — Wed, 02 Oct 2024 12:45:24 +0000

Evan Frederick Light, a 21-year-old from Lebanon, Indiana, has pleaded guilty to cyber intrusion and crypto theft worth over $37 million from nearly 600 victims.

Light appeared before U.S. Magistrate Judge Veronica Duffy on Monday, where he admitted to charges of conspiracy to commit wire fraud and conspiracy to launder monetary instruments, according to a statement from the U.S. Attorney’s Office for the District of South Dakota.

The court documents said that Light was involved in a cyber intrusion in February 2022, targeting an investment holdings company in Sioux Falls, South Dakota. During the cyber intrusion, he accessed the personal identifiable information (PII) of hundreds of clients, which enabled him to steal cryptocurrency from various victims. Light and one or more unidentified accomplices used the stolen PII to infiltrate the company’s computer servers and exfiltrate data.

The stolen cryptocurrency was funneled to various locations. “The stolen cryptocurrency, under Light’s control, was then funneled to various locations throughout the world, including multiple mixing services and gambling websites to conceal his identity and to hide the virtual currency,” stated the U.S. Attorney’s Office.

FBI Investigation and Arrest on the Crypto Theft

The FBI conducted the investigation that led to Light’s arrest. “This case underscores the FBI’s unwavering commitment to identifying and bringing cybercriminals to justice,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. He emphasized that cyber intrusions pose a serious threat to individuals and businesses alike, adding, “The FBI said it will continue to work alongside our partners to ensure that those who exploit technology for financial gain are held accountable.”

U.S. Attorney Alison J. Ramsdell also commented on the case, stating, “These convictions reflect the relentless efforts of the U.S. Attorney’s Office and the FBI in identifying a cybercriminal, holding him accountable, and prioritizing the victims of his crimes.”

Light faces a maximum penalty of up to 20 years in custody for each count, as well as a fine and three years of supervised release. He could also be ordered to pay restitution. A pre-sentence investigation has been ordered, and Light remains in the custody of the U.S. Marshals Service pending his sentencing. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.

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Is Michael Dell Selling His Stock to Invest in Bitcoin?

Lawrence Damilola — Tue, 01 Oct 2024 15:58:22 +0000

Michael Dell, founder and CEO of Dell Technologies, has sold 10 million shares of his company, valued at approximately $1.22 billion, according to a filing yesterday with the U.S. Securities and Exchange Commission (SEC).

However, this sale follows a previous transaction earlier in the month, where Dell sold another 10 million shares worth around $1.17 billion between September 19 and September 23. Following these two transactions, Dell retains over 16.91 million shares, with a market value exceeding $2 billion.

According to Google Finance, Dell Technologies’ stock price has increased significantly in 2023, with shares up 58.5% year-to-date. The company rejoined the S&P 500 on September 24, following its stock performance and market valuation. The tech firm’s growth has been partly driven by rising demand for servers that support artificial intelligence (AI) applications.

Speculation Over Dell’s Interest in Bitcoin

Michael Dell’s recent social media activity has sparked curiosity within the cryptocurrency community. In June, Dell posted, “Scarcity creates value,” a phrase often associated with Bitcoin due to its fixed supply of 21 million coins. This comment caught the attention of MicroStrategy co-founder Michael Saylor, a known Bitcoin advocate, who replied, “Bitcoin is Digital Scarcity.” Dell then reshared Saylor’s reply and posted an AI-generated image of the Cookie Monster from Sesame Street eating Bitcoin-themed cookies.

Despite these posts, Dell Technologies did not add Bitcoin to its balance sheet in the second quarter, and the company has made no public disclosures regarding any cryptocurrency investments.

Strong Performance in AI-Driven Markets

Dell Technologies has continued to see strong financial results in 2023, driven by increased demand for AI-related infrastructure. In its second-quarter earnings report, the company posted a 9% year-on-year increase in revenue. Dell’s servers and networking revenue also significantly boosted, rising 80% from the previous quarter.

While Michael Dell’s reasons for selling such a large portion of his shares remain unknown, the market has shown minimal reaction to the transactions. The company’s stock price experienced a slight decline of 0.33% in after-hours trading following the filing yesterday and gained 0.74% over the last five trading days of the month. Dell Technologies remains a key player in the tech industry, particularly in AI.

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Japan FSA Reviews Crypto Regulations and Tax Cuts

Lawrence Damilola — Tue, 01 Oct 2024 14:51:32 +0000

The Financial Services Agency (FSA) of Japan is set to reassess its cryptocurrency regulations, potentially reducing taxes on crypto gains and reclassifying digital assets.

Bloomberg News reported that the agency’s review will continue through winter. It will examine whether the Payments Act framework remains suitable given cryptocurrencies’ evolving role.

According to the report, the FSA is considering shifting digital assets under the Financial Instruments and Exchange Act, which could result in stricter investment rules. The move may also reduce the current tax rate on crypto gains, which can reach as high as 55%. If the assets are reclassified, they could be taxed at approximately 20%, similar to stocks and other financial instruments.

Local industry representatives have long claimed that high taxes on crypto gains hinder growth. They argue that lowering the tax burden would encourage further investment in the sector. According to the same Bloomberg report, alongside tax reforms, the FSA’s review may also approve exchange-traded funds (ETFs) that include digital tokens.

The FSA has sought to balance innovation in the cryptocurrency space with investor protection. In 2022, the agency required crypto exchanges to obtain licenses, leading to interest from major firms like Bitget and Bybit. The ongoing regulatory review reflects Japan’s efforts to support the growth of its digital asset sector.

This review is said to be taking place amidst potential political changes, with Liberal Democratic Party president Shigeru Ishiba replacing Prime Minister Fumio Kishida. Kishida has supported Web3 and blockchain technologies, and his departure could influence future regulatory developments.

Trading volumes in Japan’s cryptocurrency market have risen, with data from CCData showing that volumes reached nearly $10 billion monthly in 2024, up from $6.2 billion in 2023. A surge in Bitcoin and other cryptocurrencies has largely driven the increase.

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South Korea’s Bithumb Announces Plans for Nasdaq Listing

Lawrence Damilola — Tue, 01 Oct 2024 14:20:52 +0000

Bithumb, South Korea’s second-largest cryptocurrency exchange, revealed its intention to explore listing on the U.S. Nasdaq during a shareholders’ meeting yesterday. The company plans to pursue an initial public offering (IPO) in the second half of 2025, with Samsung Securities acting as the primary underwriter.

According to its management, the move to target the U.S. market is aimed at expanding its global reach. “The goal is to strengthen Bithumb’s market position globally, and Nasdaq offers an ideal platform,” a company representative stated. Bithumb had previously considered a listing on South Korea’s KOSDAQ market in 2020, but halted those plans due to uncertainties surrounding virtual asset regulations and accounting standards at that time.

Bithumb, South Korea's second largest cryptocurrency exchange, announced at an extraordinary shareholders' meeting that it is considering listing on the Nasdaq in the United States, with the goal of listing in the second half of next year, with Samsung Securities as the main…
— Wu Blockchain (@WuBlockchain) September 30, 2024

Bithumb Restructuring Ahead of IPO

Earlier this year, the company initiated a restructuring program to streamline its operations and focus on its core business. In March, the company created Bithumb Investment, a new entity responsible for managing investment and real estate brokerage functions. This move separated non-exchange activities from the main cryptocurrency exchange operations. “This restructuring allows us to concentrate on our primary exchange business and improve financial health in preparation for a public listing,” Bithumb officials said during the shareholders’ meeting.

The management further stated that restructuring was critical in preparing for a potential U.S. listing. The creation of Bithumb Investment is designed to enhance operational efficienc and align the exchange with Nasdaq’s listing requirements.

Challenges in the Domestic Market

Bithumb’s focus on an international listing comes amid ongoing challenges in South Korea’s regulatory environment. The country currently lacks a legal framework for Bitcoin ETFs, and virtual assets are not classified as financial products. These obstacles have led it to look beyond the domestic market.

In addition, the company has faced regulatory scrutiny in South Korea, as evidenced by a recent 130 million won corporate tax charge, which was cleared last month. “We remain committed to complying with all regulations as we continue to navigate the evolving legal landscape,” the company said.

The shareholders’ meeting also saw the approval of a motion to rename the company from Bithumb Korea to simply Bithumb, part of an effort to increase its brand visibility ahead of the IPO.

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Buterin Proposes Standards for Ethereum Alignment

Lawrence Damilola — Mon, 30 Sep 2024 15:30:19 +0000

Ethereum co-founder Vitalik Buterin has proposed developing metrics to measure how aligned various projects are with Ethereum’s values.

In a blog post last Friday, Buterin stated that achieving “Ethereum alignment” is one of the most important social challenges within the ecosystem. He explained that the wide range of developers, researchers, and local communities all have different visions, and the challenge is to ensure they contribute to “one Ethereum ecosystem, and not 138 incompatible fiefdoms.”

Openness and Interoperability as Key Metrics for Ethereum Alignment

Buterin suggested that a project’s degree of openness can serve as a key metric for alignment. He said that while open-source code allows for inspection and improves security, it also reduces the risk of proprietary lock-in. “Core infrastructure components that the ecosystem depends on absolutely should be open source,” Buterin said, calling open standards the “gold standard” for Ethereum projects.

Interoperability was another metric suggested, with Buterin proposing that applications and wallets could be rated by which Ethereum Request for Comments (ERC) standards they support. He encouraged projects to build on open standards like ERC-20 and ERC-1271, adding that new standards should be introduced when necessary.

To ensure decentralization and security, he proposed two tests for evaluating projects. He introduced the “walkaway test,” asking, “If your team and servers disappear tomorrow, will your application still be usable?” He also mentioned the “insider attack test,” which questions how much damage could be done if a team itself tries to attack the system. Buterin suggested that both tests could help measure the decentralization and security of Ethereum-based projects.

Positive Contribution to the Ethereum Ecosystem

Buterin emphasized that Ethereum projects should positively contribute to the broader community. He asked projects to consider whether they improve financial inclusion or provide public goods. “Ethereum is here to make the world a more free and open place, enable new forms of ownership and collaboration, and contribute positively to important challenges facing humanity,” Buterin wrote. He recommended that projects reflect on how they contribute to these goals.

Buterin suggested that entities like L2beat could emerge to track Ethereum project alignment based on these metrics. However, he stressed that the Ethereum Foundation should distance itself from the process to avoid centralization.

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Santiment Warns Bitcoin ATH Unlikely if Market Sentiment Remains High

Lawrence Damilola — Mon, 30 Sep 2024 15:14:25 +0000

Bitcoin is unlikely to reach a new all-time high in the near future due to current market sentiment, according to onchain analytics platform Santiment.

Santiment reported today that expectations for a new Bitcoin peak may be premature, stating that “markets historically always move in the opposite direction of the crowd’s expectations.” The platform noted that for every bearish post, there were 1.8 bullish ones, suggesting that the market may be overly optimistic at this time.

If you're awaiting Bitcoin's new all-time high, it may need to wait until the crowd slows down their own expectations. There are currently 1.8 bullish posts toward BTC for every 1 bearish post. Markets historically always move the opposite direction of crowd's expectations. pic.twitter.com/ZxDxalgmzb
— Santiment (@santimentfeed) September 29, 2024

Bitcoin prices have steadily risen in recent weeks, gaining 14% from below $58,000 on September 17 to over $66,000 on September 28. Bitcoin is set to record its best-ever September in terms of gains, with a 12% increase. Jameson Lopp, chief security officer at Casa, also commented on the changing narrative around Bitcoin in the media. “Bitcoin sentiment is shifting positively in mainstream media as FUD fails to withstand the test of time,” Lopp posted on X on September 29.

The Bitcoin Fear and Greed Index, which tracks market sentiment, has moved into “greed” territory, scoring 61 as of today. However, this marks a significant shift from earlier in the month when the index fell to 22, indicating “extreme fear” on September 6, one of the lowest levels seen in the past year.

Bitcoin Fear and Greed Index is 61 ~ Greed
Current price: $65,653 pic.twitter.com/9lOs3K4iWr
— Bitcoin Fear and Greed Index (@BitcoinFear) September 30, 2024

Chinese Stablecoin Demand and Price Volatility

Despite the growing bullish sentiment, the market still has bearish indicators. Last Saturday, the demand for stablecoins in China had turned bearish. When stablecoins, which are pegged to the U.S. dollar, trade at a discount rather than a premium in China, it is seen as a sign of negative market sentiment. This trend could be a factor in delaying a new Bitcoin all-time high.

Bitcoin is trading at $63,816 at the time of writing, according to Coinmarketcap— approximately 12.6% below its March all-time high of $73,734. Furthermore, early trading today saw Bitcoin prices fall by nearly 2% over a six-hour period.

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Taiwan Opens Access to Foreign Crypto ETFs for Professional Investors

Lawrence Damilola — Mon, 30 Sep 2024 14:36:59 +0000

Taiwan’s Financial Supervisory Commission (FSC) has announced that professional investors can now invest in foreign cryptocurrency exchange-traded funds (ETFs).

These investors, including institutional players, high-net-worth individuals, and other high-asset clients, will be allowed to participate through a method known as “re-entrustment.” This process will enable them to access foreign crypto ETFs via Taiwanese securities firms.

Crypto ETFs Limited to Professional Investors

The decision, reviewed by the Securities Business Association of the Republic of China, restricts access to professional investors. This is based on the high level of risk involved in virtual asset investments, which can exhibit significant price volatility. Taiwan’s regulatory framework aims to ensure that only those with sufficient financial resources and expertise are able to invest in these high-risk products.

Securities firms facilitating these investments are responsible for verifying whether an investor meets the qualifications required to participate. This involves evaluating experience, knowledge, and capacity to manage the risks associated with crypto ETFs. Firms are also required to provide regular staff training on these financial products to ensure their employees are knowledgeable when handling client investments.

In light of past issues such as the FTX collapse and local fraud, Taiwan tightened its regulations on virtual asset service providers (VASPs). As of July, the FSC requires all VASPs to register for Anti-Money Laundering (AML) compliance under the Money Laundering Control Act. This regulation applies to both local firms and offshore companies that want to offer crypto-related services in Taiwan. Without this registration, companies are not allowed to do business in the country.

In addition to AML compliance, the FSC imposed requirements for operational transparency and consumer protection. VASPs must submit a compliance declaration to demonstrate their adherence to these rules, especially those aimed at preventing money laundering.

Tax Requirements for Crypto Transactions

In Taiwan, crypto transactions are subject to a 5% Value Added Tax (VAT). Both residents and companies involved in the sale of virtual assets must register for tax purposes unless their monthly sales fall below NT$40,000 (approximately $1,300). This regulation applies to both individuals and businesses, ensuring that virtual asset transactions are properly accounted for in Taiwan’s tax system.

These steps by the FSC indicate Taiwan’s cautious approach to managing the risks associated with the growing virtual asset market while allowing qualified investors access to crypto ETFs.

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AI Will Be Key to Countering AI Threats, Says Nvidia CEO

Lawrence Damilola — Mon, 30 Sep 2024 14:21:37 +0000

Nvidia CEO Jensen Huang has stated that artificial intelligence (AI) itself is the most effective way to address the harmful uses of AI technology.

Speaking at a Bipartisan Policy Center event last Friday, Huang remarked, “It’s going to take AI to catch the darker side of AI.” He explained that AI’s ability to generate fake data and false information at high speeds necessitates the use of equally advanced AI systems to detect and mitigate these threats.

“The reason for that is pretty clear: AI is going to be producing fake data and false information at very high speeds,” Huang said. “So it’ll take somebody with very high speeds to detect that and to shut it down.”

Huang compared the situation to cybersecurity, noting that “almost every single company” faces constant threats of cyberattacks. He added, “It’s going to take even better cybersecurity to defend ourselves. We just have to make sure that we stay ahead; it’s going to take AI to help us stay ahead.”

Public Concerns Over AI in Elections

As the U.S. approaches the federal elections, concerns about the misuse of AI to spread disinformation are growing. A Pew Research Center survey, published in September 19, revealed that nearly 60% of Americans are “extremely” or “very” concerned about AI being used to create fake information regarding presidential candidates. Both Democrats and Republicans expressed similar levels of concern.

Around 40% of respondents believed that AI would be used “mostly for bad” during the election, while only 5% said the opposite. Huang called for the U.S. government to take a more active role in AI. “The government has to become a practitioner of AI, not just a governor of AI,” he said.

He singled out the Energy and Defense departments, urging them to embrace AI technology to keep up with advancements. Huang also suggested the U.S. consider building an AI supercomputer, stating, “The scientists would be more than happy to jump on it and create new AI algorithms to advance our country.”

Increased Energy Use Predicted for AI

Huang also discussed the rising energy demands associated with AI as more data is processed. He predicted that AI data centers could require “several — 10 times, 20 times — more” energy than they do today. The International Energy Agency estimates that current data centers already consume up to 1.5% of global electricity.

Huang proposed that future AI data centers could be built in areas with “excess energy” that is difficult to transport, suggesting that AI could adapt to these remote locations. “We can transport the data center,” he said, explaining that this would allow for more efficient energy use where it is needed.

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Newsom Vetoes AI Regulation Bill, Citing Concerns for Innovation

Lawrence Damilola — Mon, 30 Sep 2024 13:46:47 +0000

California Governor Gavin Newsom has vetoed SB 1047 today, a bill aimed at regulating large-scale artificial intelligence (AI) models, after facing strong opposition from Silicon Valley.

The legislation, known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, was intended to introduce some of the first state regulations on AI, including mandatory safety testing for large-scale AI models.

Newsom expressed concerns that the bill would stifle innovation while failing to address the real risks posed by AI technology. “Instead, the bill applies stringent standards to even the most basic functions — so long as a large system deploys it,” Newsom stated. “I do not believe this is the best approach to protecting the public from real threats posed by the technology.”

SB 1047 reportedly targeted AI systems costing more than $100 million to develop and required companies to implement safety measures such as a “kill switch” for their AI models. This AI regulation bill also allowed the state attorney general to take legal action against developers if their models posed ongoing threats, such as an AI grid takeover.

Tech companies, including OpenAI and Google, were vocal in their opposition to the bill, claiming it would hinder the development of AI technology. House Speaker Nancy Pelosi and others aligned with these tech firms, arguing the legislation would impede AI progress.

Neil Chilson, head of AI policy at the Abundance Institute, warned that although the bill focused on high-cost models, its scope could be expanded to include smaller developers as well.

Veto of AI Regulation Bill is a Setback for AI Safety – Proponents

State Senator Scott Weiner, who authored the bill, criticized the veto, describing it as a setback for public safety. “This is a setback for everyone who believes in oversight of massive corporations that are making critical decisions that affect the public’s safety, welfare, and the planet’s future,” Weiner said. The bill’s supporters argued that AI systems with the potential to cause harm need more oversight to prevent possible risks.

On August 26, billionaire Elon Musk, who is working on his own AI model, Grok, voiced support for the bill. Musk noted that while supporting the legislation was a “tough decision,” California should “probably pass the SB 1047 AI safety bill.”

Newsom Promises Continued Focus on AI Regulation

Newsom stated that his administration had already signed 18 other bills related to AI in recent weeks. He also emphasized that the focus should be on developing science-based regulations for AI. Newsom added that he had consulted with leading AI safety experts and would continue efforts to ensure effective oversight of the technology.

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Bitcoin Breaks the September Curse: From Slump to Surge in 2024

Lawrence Damilola — Sat, 28 Sep 2024 14:20:37 +0000

September, historically the “pumpkin spice of pain” for Bitcoin holders, has decided to throw everyone a curveball this year. Instead of the usual slump that makes traders weep into their keyboards, Bitcoin has surged past $65,000 in a dramatic reversal of its dreaded September curse.

For those of you new to the Bitcoin rollercoaster, let’s get one thing straight: September is supposed to be Bitcoin’s worst month. From 2010 to 2023, Bitcoin has seen an average drop of 4.48% in September, making it the month when even the most die-hard HODLers hide under their blankets. But, 2024? Oh no, this year, Bitcoin is doing its best Superman impression, flying higher than anyone expected.

The Bitcoin “September Curse”—Shattered!

In the past, September was like that one friend who always brings bad vibes to the party. Historically, it’s been a month of doom and gloom for Bitcoin. Think red candles, crushed dreams, and lots of “Why didn’t I sell earlier?” regrets. But this September, Bitcoin has left traders scratching their heads and refreshing their screens in disbelief as it rockets upward like it just remembered it’s supposed to head to the moon.

As we near the end of the month, Bitcoin is hovering around $65K, with some analysts predicting even more gains. The “Coinbase Premium,” an indicator of U.S. buying pressure, has been climbing higher than a DeFi yield farmer on a Red Bull binge, fueling the surge.

Bitcoin’s price hovered around $65k on Saturday 28, 7:15 ET. Source: CoinmarketCap.

ETF Inflows to the Rescue

Part of the reason behind Bitcoin’s Cinderella moment is the massive inflows into Bitcoin ETFs (Exchange-Traded Funds). Big names like BlackRock and ARK 21Shares have been hoovering up Bitcoin like it’s the last pack of toilet paper during a pandemic. Net inflows reached over $1 billion in just a week, showing that institutional investors are going all-in on crypto

Meme It: The Bitcoin vs. September Showdown

Now, for the fun part: the memes! Picture this—Bitcoin as a boxer, gloves on, squaring up against a looming September cloud, ready to knock it out cold. Or a classic “This is Fine” meme, where instead of flames, the backdrop is filled with bullish Bitcoin charts, and traders are calmly sipping their coffee, unsure if this rally is real or just some Matrix-level glitch.

Alternatively, how about the Distracted Boyfriend meme? Bitcoin, our distracted boyfriend, has ditched its usual September dumps for the shiny allure of ETF inflows, while the bears in the background wonder where it all went wrong.

Will October Bring Even More Gains?

Historically, October has been kinder to Bitcoin, with an average return of +22.9%. So, if this September surge is any indication, we could be looking at an even wilder ride next month. The crypto sphere is buzzing with excitement and speculation—can Bitcoin maintain this momentum? Or will it stumble, leaving us with memes of traders crying into their portfolios once again? Time will tell!

For now, let’s enjoy the ride. Grab your popcorn, refresh your portfolio, and start crafting those memes. It’s going to be a bullish fall!

Disclaimer: Before you get too HODL-happy, remember this is not financial advice—just a meme-fueled joyride through crypto chaos. We’re here for the lols, not for your portfolios. If you make life-altering decisions based on a joke, well… may the crypto gods be with you. Do your own research, consult a professional, or maybe just ask that friend who always says “sell the top.”

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$45,000 Lost in Poisoning Attack as Scammer Nets 899,900% ROI – Report

Lawrence Damilola — Fri, 27 Sep 2024 14:13:00 +0000

A cryptocurrency scammer has executed a poisoning attack that resulted in a victim losing $45,000 and a staggering return on investment (ROI) of 899,900% for the scammer. This incident, shared via the @web3_Antivirus X account, showcased how the scammer deceived the victim by sending small transactions to mimic addresses.

The scam unfolded when a malicious actor transferred just $5 to a wallet, creating a fake address almost identical to the victim’s legitimate wallet address. The scammer’s address differed only by a few characters, but enough to confuse the victim, leading them to transfer a significantly larger amount — $45,000 USDT — minutes later. This method of address poisoning takes advantage of slight character variations to trick users into making high-value transactions to fraudulent addresses.

899,900% ROI—the scammer got from a $5 transfer leading to a $45k address poisoning attack just 10 minutes later!

We have an API that solves this 100% and it’s free for all wallets and exchanges.

Please help to amplify! pic.twitter.com/JOJywJvLzX
— Web3 Antivirus (@web3_antivirus) September 27, 2024

An address poisoning attack is a scam in which a malicious actor sends small transactions to a wallet with a fake address that closely resembles the victim’s legitimate address. This technique aims to confuse the user into accidentally transferring larger amounts of cryptocurrency to the scammer’s wallet by selecting the wrong address from their transaction history.

The transaction was recorded on the blockchain, with a hash provided confirming the $45,000 transfer of Tether USD (USDT). The scam occurred today within ten minutes.

The attack highlights a well-known method scammers use in the crypto space: address poisoning. Criminals send small-value transactions to unsuspecting users, creating a close copy of a legitimate wallet address to trap victims. By poisoning the address history, scammers significantly increase the risk of users misdirecting funds to the wrong recipient.

In light of this incident, @web3_Antivirus advocates for integrating their API into all wallets and exchanges as a proactive measure to prevent such poisoning attacks. Implementing robust security protocols, exchanges, and wallet providers can significantly reduce the likelihood of successful attacks. The proposed API aims to enhance user protection by monitoring transactions for suspicious activity and providing real-time alerts.

In May, a significant attack resulted in a loss of approximately $68 million for a crypto whale. This attack involved tricking the victim into sending funds to a malicious address that had been introduced into their transaction history. The attacker utilized lookalike addresses to exploit the victim’s reliance on past transactions, leading to this substantial financial loss.

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Vitalik Buterin Proposes Increasing Blob Count for Ethereum Network—Here’s Why

Lawrence Damilola — Fri, 27 Sep 2024 13:08:25 +0000

Vitalik Buterin, co-founder of Ethereum, has proposed increasing the network’s “blob count” following discussions during a recent developer call. The suggestion is aimed at addressing the growing demand for data storage on the Ethereum blockchain, which has seen its blob space usage reach approximately 75% capacity.

Blob space was introduced as part of Ethereum’s Dencun upgrade under Ethereum Improvement Proposal (EIP)-4844, also known as proto-danksharding.

The current limit allows for a target of three blobs per block, with a maximum of six blobs. Buterin is pushing for an increase to four blobs per block, with a maximum of eight, to enable layer-2 (L2) protocols to store more data on the Ethereum blockchain.

Vitalik Buterin’s statement on increasing blob count. Source: GitHub

EIP-7623 and Call Data Cost Adjustments

EIP-7623 has been proposed to modify the call data cost for transactions that rely on Ethereum for data availability. This would reduce the maximum block size from its current 2.7 megabytes to approximately 1MB. By doing so, it would potentially create more space for increasing the block gas limit or allowing for more blobs to be stored in each block.

Buterin highlighted that some L2 protocols are hesitant to fully adopt blobs due to concerns about market congestion. He urged the community not to delay the transition of L2 networks to blob usage. “We cannot afford to let momentum slip on moving more layer-2s over to using blobs,” Buterin noted. He stressed that EIP-7623 is essential because it significantly reduces the worst-case block size.

Support for Increasing Blob Count

Jesse Pollak, the creator of Coinbase’s layer-2 network Base, strongly supported Buterin’s proposal Pollak stated in a recent post on X that increasing the blob count “reduces worst-case block size and adds needed capacity for fast-growing L2s.” According to Pollak, this proposal is a crucial step for accommodating the rapid growth of L2 networks.

The proposed increase in blob count is expected to be part of Ethereum’s future upgrades. Ethereum developers are currently working on the Pectra upgrade, which has been split into two segments, PectraA and PectraB, to expedite deployment. This will introduce several Ethereum Improvement Proposals (EIPs) designed to enhance the network’s scalability, including changes to the execution and consensus layers.

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Hong Kong to Implement Global Standards for Crypto OTC Derivatives Reporting

Lawrence Damilola — Fri, 27 Sep 2024 12:40:26 +0000

Hong Kong’s financial regulators, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), have announced plans to align their over-the-counter (OTC) derivatives reporting framework — including crypto derivatives — with global standards. This move follows a consultation paper presented in March 2024, with a final implementation deadline set for September 29, 2025.

Last week, The Shib Daily reported that the SFC sought opinions from industry participants on a proposed licensing regime for cryptocurrency OTC services.

However, the proposed changes will align Hong Kong’s reporting requirements with those adopted by the European Securities and Markets Authority (ESMA). The HKMA and SFC intend to implement several key international reporting standards, including the use of Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE) in OTC derivatives reporting.

“We will accommodate the use of the Digital Token Identifier (DTI) in our reporting requirements, following the inclusion of DTI in the data field ‘Underlier ID (OTHER)’ as an allowable value in the upcoming consultation of version 4 of the CDE Technical Guidance,” the HKMA and SFC said in a joint statement. The regulators also emphasized monitoring global mandates to ensure Hong Kong remains in sync with other major jurisdictions.

Digital Token Identifiers for Crypto Derivatives

Hong Kong will introduce the Digital Token Identifier (DTI) to identify crypto-asset underliers for OTC derivatives as part of the changes. This step follows recommendations from industry stakeholders, who pointed out that traditional asset classes — such as interest rates, foreign exchange, and equities — do not encompass crypto assets. The DTI, already implemented by ESMA in October 2023, is seen as a tool to improve clarity and consistency in reporting.

HKMA expands “Project e-HKD” to “Project e-HKD+” and commences e-HKD Pilot Programme Phase 2. We’re exploring new forms of digital money with 11 groups of diverse firms, focusing on innovative e-HKD and tokenised deposit use cases. pic.twitter.com/9R3oLdqqBa
— HKMA 香港金融管理局 (@hkmagovhk) September 23, 2024

The HKMA and SFC confirmed that the DTI would be part of the new reporting regime: “Given the development of global reporting standards, we will follow the trend and adopt Digital Token Identifiers where applicable. ” This change will be part of the broader effort to streamline the number of mandated data fields in line with European, U.S., and other APAC jurisdictions.

In addition to the new identifiers, Hong Kong will adopt the ISO 20022 XML message standard for OTC derivatives reporting. Stakeholders have broadly supported this adoption during the consultation process and will ensure consistency with global practices. The regulators believe this will help enhance data sharing and analysis across different jurisdictions.

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Swan Bitcoin Sues Former Employees Over Mining Operations

Lawrence Damilola — Fri, 27 Sep 2024 11:54:34 +0000

Swan Bitcoin has filed a lawsuit against several former employees and competitor Proton Management, accusing them of stealing proprietary software and attempting to take over its Bitcoin mining business.

The case, filed in the U.S. District Court for the Central District of California, names Michael Holmes, former Head of Business Development, and Raphael Zagury, ex-CIO and mining chief at Swan, as the key figures behind the alleged scheme.

According to the lawsuit, Holmes and Zagury and several other employees resigned from Swan in early August 2024. Swan alleges that they took confidential software code and customer data before leaving, which they later used to establish Proton Management. The new company is directly in competition with Swan’s mining operations.

Swan also claims that Proton persuaded Tether, a major financial backer of Swan’s mining project, to cut ties with Swan and instead support Proton. Tether informed Swan of this decision shortly after the wave of resignations in August. Swan argues that this move was part of a coordinated effort by former employees to seize control of its mining operations.

Swan CEO Cory Klippsten stated on X that the company’s mining activities have always been “distinct and separated.” He also mentioned that the most recent developments do not affect Swan’s main business.

+132% YoY @Swan financial services revenue is up big.

Been an awesome last 12 months of product launches (Swan IRA, Swan Vault), excited for more geo and product launches soon

Mining has always been separate and segregated. Recent news does not affect our core business.
— Cory Klippsten Swan.com (@coryklippsten) September 27, 2024

Allegations of Misconduct and Espionage

Swan’s lawsuit accuses its former employees of breaching confidentiality agreements and engaging in corporate espionage. The company alleges that Holmes and Zagury planned to sabotage Swan’s mining business and divert resources to Proton. The legal filing describes this scheme as “rain and hellfire,” aimed at removing Swan from its role in the joint venture with Tether.

Swan Bitcoin further claims that Proton has been actively poaching its staff and undermining its business relationships. The lawsuit alleges that Proton’s actions have caused significant disruption to Swan’s operations, with immediate adverse effects on its mining business.

The complaint requests a permanent injunction to stop Proton from using the misappropriated materials and seeks to return all proprietary information taken by the former employees. Swan is also asking for damages to be determined at trial.

Swan Bitcoin launched its managed mining service for institutional investors in partnership with Tether in May 2024, with plans to reach 100 exahashes by 2026. However, the lawsuit indicates that Swan’s mining business faced financial challenges as early as July 2024, leading to concerns about its future viability.

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Truflation Suffers $5 Million Loss in Malware Attack

Lawrence Damilola — Thu, 26 Sep 2024 15:04:30 +0000

Truflation, a blockchain-based platform providing real-time inflation data, confirmed it was the victim of a malware attack yesterday that resulted in losses valued between $4.95 million and $5.2 million.

The attack led to the theft of approximately $3.89 million in Truflation’s native token (TRUF), $1.07 million in Ether, and $236,000 in DAI stablecoin from the project’s treasury multisignature and personal wallets on Ethereum. Blockchain analysts, including ZachXBT and security firm Cyvers, confirmed these figures. An additional $100,000 was stolen from seven other chains.

Truflation stated that it is actively monitoring the situation and working with industry partners and law enforcement agencies to address the breach and protect its assets.

Truflation Customer and Staking Funds Unaffected

The platform confirmed that the attack did not affect customer funds, and its staking funds also remained secure. It emphasized that the losses were limited to the team’s wallets and did not impact user accounts.

NO CUSTOMER FUNDS AT RISK: Truflation Hack Update #2

CEO Stefan Rust has the latest update as of 8pm EST. pic.twitter.com/ocgJM1hqSL
— Truflation (@truflation) September 25, 2024

Truflation also reached out to the hacker, stating they are open to negotiating and offering rewards for assistance in recovering the stolen funds. The platform called on white hat hackers to aid in the recovery efforts.

TRUF Token Decline Following Attack

Following the news of the malware attack, Truflation’s native token, TRUF, saw a 15.6% drop in value, falling to $0.068 shortly after the announcement. It later recovered slightly to $0.073. The token’s market capitalization currently stands at $12.8 million, according to CoinGecko data.

At the time of writing, TRUF coin’s price is $0.07812; the coin is down by 9%, per CoinGecko.

Truflation launched in December 2021 and is backed by major investors, including Coinbase Ventures and Chainlink. The platform offers real-time economic data and launched a data marketplace that tracks various commodities, such as sugar, petroleum, and wheat.

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Russia to Legalize Industrial Crypto Mining Soon

Lawrence Damilola — Thu, 26 Sep 2024 14:00:18 +0000

Russia is reportedly close to legalizing industrial crypto mining. According to a local media report, the State Duma passed the third reading of a draft law requiring crypto miners to comply with anti-money laundering (AML) regulations. The upper house of parliament will soon consider this law, which, if approved, will be signed by the President’s office.

The report said that the new law would oblige miners to report suspicious crypto transactions to Rosfinmonitoring, Russia’s anti-money laundering agency. This is seen as part of wider regulatory efforts to manage the country’s cryptocurrency sector, which focuses on digital currency mining.

Vladimir Putin backs a Russian government proposal to tax and regulate mining of cryptocurrencies, rejecting the central bank’s proposal to ban it completely https://t.co/vHFbI0BgAJ
— Bloomberg (@business) January 28, 2022

Crypto Mining Law Could Be Effective by September

A separate bill that seeks to legalize crypto mining in Russia this year fully is also under discussion. The State Duma conducted the first reading of this bill on July 23, and reports indicate that it is expected to move forward quickly. This bill aims to provide a formal legal framework for digital currency mining in Russia.

Anton Gorelkin, one of the authors of the bill, has indicated that amendments for the bill’s second reading have already been prepared. Media reports suggest that it could be passed before the end of the Duma’s current session, scheduled to end on August 5. The bill could also include regulations for cryptocurrency exchanges and allow Russian companies to use crypto for cross-border trade.

President Putin Pushes for Crypto Regulation

Russian President Vladimir Putin called on lawmakers to speed up the regulation of the crypto mining industry after more than two years of discussions. The Central Bank previously proposed banning crypto mining, but the industry has seen substantial growth in Russia since.

“Uncontrolled growth in electricity consumption for cryptocurrency mining can lead to power shortages in certain regions. Cases of [shortages] have been reported in the Irkutsk Oblast, Buryatia, and the Transbaikal region,” Putin said.

The status of private crypto miners is still unclear. In addition, proposals have been put forward to ban non-industrial mining or to allow individuals to mine at home, provided their energy usage stays within specific limits. There are also suggestions that private miners could remain unregulated for the time being, with the issue addressed at a later date.

The new legislation would mean compliance with AML protocols and taxation on earnings for industrial miners. However, it could also provide them with official recognition as legitimate business entities. The Russian crypto mining industry has grown rapidly, and there has been increased demand from the sector for formal regulations. Lawmakers are also reportedly considering input from representatives of the mining industry as they prepare the final form of the bill.

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US FTC Cracks Down on Companies for Misleading AI Claims

Lawrence Damilola — Thu, 26 Sep 2024 13:34:34 +0000

The U.S. Federal Trade Commission (FTC) announced actions against five companies accused of using artificial intelligence in allegedly deceptive ways. These cases are part of the FTC’s effort to address the misuse of AI in consumer-related services.

Yesterday, the Federal Trade Commission announced the initiation of “Operation AI Comply,” a series of law enforcement actions aimed at targeting five corporations. These companies have been utilizing artificial intelligence to enhance practices that deceive or disadvantage consumers.

Three companies promoted schemes that claimed to help consumers generate passive income through AI-powered e-commerce storefronts. The FTC stated that these companies misled consumers and suspended their operations.

FTC announces crackdown on deceptive AI claims and schemes: https://t.co/NVPbM8QY9F /1
— FTC (@FTC) September 25, 2024

DoNotPay Settles Over AI Legal Services Claims

The FTC reached a settlement with DoNotPay, which advertised itself as offering AI-driven legal services. The company claimed to provide automated legal documents and assist consumers with various legal issues.

However, the regulator found that DoNotPay’s services did not fulfill these promises. As part of the settlement, DoNotPay agreed to pay $193,000 and notify customers about the limitations of its AI legal services. The company explained that the disputed service had been discontinued and was used by a small portion of its customer base.

Another company, Rytr, was targeted by the FTC for allegedly providing a tool that allowed users to create fake product reviews. The FTC stated that Rytr’s AI-powered writing tool enabled users to generate convincing but misleading reviews with minimal input. Rytr agreed to stop offering this review generation feature. Although Rytr did not admit to any wrongdoing, the company settled with the FTC to resolve the matter.

Ascend Ecom and Ecommerce Empire Builders (EEB) were also part of the FTC’s actions. The agency accused these companies of operating fraudulent e-commerce business models. Ascend Ecom was charged with defrauding consumers of over $25 million by claiming that AI could help generate significant passive income through online stores. EEB was also charged with making false promises of high earnings through its AI-powered e-commerce services.

The FTC filed a lawsuit against FBA Machine, another company promoting AI-powered online store services. The agency claims that the company promised guaranteed income but failed to deliver, allegedly causing consumer losses of over $15.9 million.

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Former Justice Minister Claims Montenegro PM Linked to Do Kwon Case

Lawrence Damilola — Thu, 26 Sep 2024 11:43:13 +0000

Montenegro Prime Minister Milojko Spajić has been accused of manipulating the extradition process of Terraform Labs co-founder Do Kwon in connection with a 30-year airport concession deal involving South Korea.

Former Justice Minister Andrej Milović has claimed that Spajić changed his stance on the concession after Montenegro’s Court of Appeals ruled that Kwon should be extradited to South Korea.

Milović stated that Spajić had initially been preparing for months to grant the airport concession to France. However, following the court’s decision in favor of South Korea’s request for Do Kwon’s extradition, Spajić allegedly supported South Korea’s bid for the airport concession. According to Milović, Spajić’s shift in position raises questions about whether Kwon’s extradition was used as a bargaining chip in the deal.

“What is crucial in this case is the correlation between the Do Kwon case and the granting of the Montenegrin Airport concession to South Korea. Therefore, I ask Spajić, did he extort extradition in order to cover up the case, in exchange for the Montenegrin Airport concession?” said Milovic.

Milović also pointed to Spajić’s personal involvement in the Terra/Luna cryptocurrency project. Reports show that Spajić invested $75,000 in Terra/Luna tokens, linking him directly to Do Kwon’s failed venture. Milović suggested that Spajić might be trying to cover up his role in the case by facilitating Kwon’s extradition to South Korea.

Accusations of Concealing Ties with Do Kwon

Montenegro’s President Jakov Milatović and former Prime Minister Dritan Abazović have also raised concerns about Spajić’s connections to Do Kwon. Both officials accused Spajić of misleading the public by denying any relationship with Kwon. During a television interview, Milatović said that Spajić had denied knowing Kwon in front of ten members of the Europe Now Movement (PES), several of whom are now government ministers. However, records reportedly show that Spajić had multiple meetings with Kwon, despite his claims.

Montenegro’s Supreme Court ruled on a request for legal protection in Do Kwon’s case and referred the final decision on his extradition to the country’s Minister of Justice, Bojan Božović. Both South Korea and the United States have submitted requests for Kwon’s extradition, and the minister will now determine which country will receive him for criminal prosecution.

Do Kwon was arrested in Montenegro in March 2023 and faces legal action related to the collapse of Terra/Luna, a cryptocurrency project.

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Japan Regulator Prepares to Reform Crypto Gaming Laws

Lawrence Damilola — Thu, 26 Sep 2024 11:35:22 +0000

Japan’s Financial Services Agency (FSA) has reportedly signaled its intention to reform the nation’s crypto gaming laws.

According to reports from Japanese media outlets Nikkei and CoinPost, the FSA is discussing the development of a framework that would simplify how businesses manage cryptoassets.

These reforms are expected to focus on revising the Payment Services Act, which currently governs the use of cryptocurrencies in various sectors. The aim is to make it easier for companies to handle cryptoassets, particularly within the gaming industry. Due to existing regulatory constraints, many major domestic gaming companies have been cautious about exploring blockchain gaming.

Japan’s current regulations require firms that use tradeable in-game currencies or cryptoassets to maintain sufficient funds to refund users in case of a security breach or other incidents. This rule has been cited as a significant obstacle for gaming companies incorporating blockchain technology. The FSA reportedly considers changes to ease this requirement to make it less burdensome for gaming firms.

Asset management practices for companies dealing with cryptoassets are also under review. The FSA has reportedly begun discussions on these topics in a working group of the Financial System Council, its main advisory body.

Pressure for Regulatory Changes

The push for regulatory reform comes after pressure from industry players and political figures who argue that Japan’s current system hinders the development of web3 businesses. Critics claim that some startups are forced to operate overseas due to the regulatory environment. Masaaki Taira, the chairman of the Liberal Democratic Party’s web3 policy unit, has pointed out that Japan’s tax system is not well-suited to modern crypto startups. He noted that accounting firms face difficulties conducting audits when companies issue tokens that are not widely recognized, such as Bitcoin.

Japan has already tried to address these concerns by relaxing tax rules for firms holding cryptoassets. Additional changes, including tax reforms for individual crypto traders, are reportedly being considered.

Meanwhile, the Shiba Inu ecosystem began its first phase of Shiba Eternity beta testing on August 21, granting access exclusively to users with staked LEASH tokens on ShibaSwap. In the next phase, selected Shiba Inu NFT holders, such as Shiboshi, SHEboshi, and Shiba Eternity Lore NFT owners, will be invited to participate in the closed beta of the Web3 version. Despite being in beta, the game has introduced features like ranked tournaments to improve the player experience.

The post Japan Regulator Prepares to Reform Crypto Gaming Laws first appeared on The Shib Daily.

Lawrence Damilola – The Shib Daily

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