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United States
bankruptcy Crypto Firm digital currency Technology United States

Crypto Firm Terraform Labs Files for Chapter 11 Bankruptcy in US

 

Following the 2022 collapse of its cryptocurrencies, Singapore-based Terraform Labs (TFL), the firm behind digital assets TerraUSD (UST) and Luna, filed for Chapter 11 bankruptcy in Delaware. 

The Chapter 11 bankruptcy protection petition was confirmed by Terraform Labs, which noted it as a strategic move that will allow it to sustain its operations and support litigation ongoing in Singapore and U.S. litigation involving the Securities and Exchange Commission. The group stated it wouldn't need more funding in order to "meet all financial obligations to employees and vendors during the Chapter 11 case.”

In a court filing earlier this week, Terraform Labs' estimated assets and liabilities are between $100 million and $500 million, with between 100 and 199 creditors. 

Terraform Labs stated that it intends to keep growing its web3 business. The startup launched Station v3, a cryptocurrency wallet, earlier this month and just acquired Pulsar Finance, a cross-chain portfolio manager and data vendor. 

“The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working toward our collective goals while resolving the legal challenges that remain outstanding,” stated Chris Amani, CEO of Terraform Labs.

Founded in 2018, Terraform Labs collapsed the cryptocurrency market in May 2022, wiping out at least $40 billion in market value. The announcement of bankruptcy was made four days after the U.S. SEC decided to move the civil trial against Do Kwon, a co-founder of Terraform Labs, and the company for an alleged $40 billion cryptocurrency scam from January 29 to March 25. 

Kwon is being held in detention in Montenegro for leaving the nation in March using forged travel documents. The co-founder of Terraform Labs could be extradited to the United States or South Korea in March following the extradition decision, which is entirely up to the justice minister of Montenegro. 

Last year in February, the U.S. SEC charged Kwon and Terraform Labs with scamming the U.S. investors who purchased the digital assets Terra USD and Luna. As per the court petition, Kwon holds a 92% ownership in Terraform Labs, while Daniel Shin, another co-founder of the company, holds an 8% investment in TFL.
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Tokens
Blockchain Crypto cryptocurrency Decentralized Digital Assets digital currency Fintech NFTs Smart Contracts Technology Tokens

The United States is Monitoring Vulnerabilities in Bitcoin

 

The United States has shown a keen interest in the cybersecurity aspects of Bitcoin, particularly honing in on a vulnerability associated with the Ordinals Protocol in 2022. The National Vulnerability Database (NVD), overseen by the National Institute of Standards and Technology (NIST), a branch of the U.S. Department of Commerce, has brought attention to this issue for public awareness. This underscores the growing focus of government agencies on the security dimensions of cryptocurrencies.

The vulnerability at the core of this development is specific to certain versions of Bitcoin Core and Bitcoin Knots. It enables the bypassing of the datacarrier limit by disguising data as code. In practical terms, this vulnerability could result in the Bitcoin network being inundated with non-transactional data, potentially causing congestion in the blockchain and affecting performance and transaction fees. This concern is not merely theoretical, as evidenced by the exploitation of the Ordinals inscriptions in 2022 and 2023.

The Ordinals gained prominence in late 2022, involving the embedding of additional data onto a satoshi, the smallest Bitcoin unit, similar to the concept of nonfungible tokens (NFTs) on the Ethereum network. However, the increased usage of Ordinals transactions has led to heightened network congestion, resulting in elevated transaction fees and slower processing times. For blockchain enthusiasts, these issues are not just technical glitches but critical challenges that could influence the future trajectory of Bitcoin.

Luke Dashjr, a Bitcoin Core developer, has been outspoken about this vulnerability, likening it to receiving a flood of junk mail that obstructs essential communications. This metaphor aptly encapsulates the essence of the vulnerability, disrupting the otherwise streamlined process of Bitcoin transactions.

In response to these concerns, a patch has been developed in Bitcoin Knots v25.1. However, Dashjr notes that Bitcoin Core remains vulnerable in its upcoming v26 release. He expresses hope that the issue will be addressed in the v27 release next year. The implications of this vulnerability and its subsequent patching are substantial. Rectifying the bug could limit Ordinals inscriptions, although existing inscriptions would persist due to the immutable nature of the network.

This situation underscores a broader theme in the cryptocurrency world: the constant evolution and the need for vigilance in maintaining network security. The involvement of U.S. federal agencies in tracking and cataloging these vulnerabilities may signify a step toward more robust and secure blockchain technologies. While the identification of Bitcoin's vulnerability by the NVD serves as a cautionary tale, it also presents an opportunity for growth and improvement in the cryptocurrency ecosystem.
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Monkey Drainer
Cyber Security Cyber Threats digital currency money extortion Monkey Drainer

Crypto Scammer Monkey Drainer Shuts Down Criminal Operations

Cyber threats are not new in the crypto space. The industry has been witnessing advanced cyber security attacks since its inception and even recorded more during the 2022 crypto winter, especially in the DeFi Sector. 

According to Yahoo Finance, the cryptocurrency sector suffered a massive loss of nearly $50 billion last year due to various hacking incidents. Numerous groups have been involved in these nefarious activities, including the notorious North Korean Lazarus group and the infamous Monkey Drainer.

However, in a recent turn of events, the Monkey Drainer group has announced that they will be retiring from scamming in the cryptocurrency industry and switching their focus to another sector. Additionally, the group said that they will destroy all the devices and files they use to carry out their operations and will not return to the sector. 

In their message, Monkey Drainer advised other cybercriminals not to go after easy money and suggested that if they want to be successful, they should operate in a large group. They also recommended a new competitor called Venom Drainer to young cybercriminals who want to continue in this line of work.  

Interestingly, Venom Drainer emerged just a day before Monkey Drainer's announcement, indicating that they plan to replace them with a newer group. 

PeckShieldAlert, a company that monitors security incidents on blockchain networks, reported on Twitter that the scammers tried to hide their money by putting 200 ETH, worth $330,000, into Tornado Cash. 

However, Monkey Drainer still had 840 ETH coins worth $1.4 million left in their main wallet after the deposit. 

DeFi, short for Decentralized Finance, is a type of financial system that is built using a new technology called blockchain. This system does not rely on banks or other traditional financial institutions to work. Instead, it's decentralized and allows people to access financial services like lending, borrowing, trading, and investing without needing a middleman.  

This sector has become popular in recent years and has attracted billions of dollars in investment. It also offers people new opportunities to access financial services in a more transparent and decentralized way.  

Here are some things to be careful about when investing in cryptocurrency: 

1. Watch out for phishing attacks, where hackers pretend to be a trustworthy crypto company to trick you into giving them access to your digital assets. 

2. Be cautious of new and untested trading platforms, as some of them may be fraudulent. 

3. Be careful when using third-party software to manage your digital assets, as they can expose you to additional cybersecurity risks. 

4. Look out for crypto-malware, a type of malicious software that allows hackers to access your computer and mine cryptocurrencies without your knowledge. 

5. Keep your private key safe, as this is what you use to access your digital assets. If hackers get access to your private key, they can take your cryptocurrency without your permission. 

6. Cryptocurrencies are not regulated, which means that there is no agency in charge of their production or management. Be wary of unregulated exchanges, as they may attract hackers and scammers. 

Cryptocurrency is still a new concept, and it can be confusing even for experienced investors. Keep in mind that cryptocurrency is not as safe as traditional assets, and it comes with additional risks.  
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Technology
cryptocurrency data security digital currency Fraud Scams Technology

Report: Crypto Crime Hits Record $20 Billion in 2022

 

The unlawful use of cryptocurrencies reached a new high of $20.1 billion last year, as transactions involving companies sanctioned by the United States skyrocketed, as per data from blockchain analytics firm Chainalysis released on Thursday.

In 2022, the cryptocurrency market lost momentum as risk appetite started to wane and various crypto firms went bankrupt. Investors suffered significant losses, and regulators increased calls for greater consumer protection. 

Despite a drop in overall crypto transaction volumes, the value of unlawful crypto transactions increased for the second year in a row, according to Chainalysis. As per Chainalysis, transactions linked with sanctioned entities increased more than 100,000-fold in 2022 and accounted for 44% of illicit activity last year. 

Funds received by Garantex, a Russian exchange sanctioned by the US Treasury Department in April, accounted for "much of 2022's illicit volume," according to Chainalysis, adding that the majority of that activity is "likely Russian users using a Russian exchange." 

According to a Chainalysis spokesperson, wallets are labelled as "illicit" if they are not part of a sanctioned entity.

Garantex did not respond immediately to an emailed request for comment.

Last year, the US also sanctioned cryptocurrency mixing services Blender and Tornado Cash, alleging that they were being used by hackers, including those from North Korea, to launder billions of dollars in cybercrime proceeds.
 
The volume of stolen crypto funds increased by 7% last year, but volumes of other illicit crypto transactions, such as those related to scams, ransomware, terrorism financing, and human trafficking, decreased.

"The market downturn may be one reason for this. We've found in the past that crypto scams, for instance, take in less revenue during bear markets," Chainalysis said.

Chainalysis stated that its $20.1 billion estimate only encompasses blockchain activity and excludes "off-chain" crime such as fraudulent accounting by crypto firms.

According to Chainalysis, the figure also excludes instances where cryptocurrencies are the proceeds of non-crypto-related crimes, such as when cryptocurrency is used as a means of payment in drug trafficking.

"We have to stress that this is a lower bound estimate - our measure of illicit transaction volume is sure to grow over time," the report said, noting that the figure for 2021 was revised to $18 billion from $14 billion as more scams were discovered.





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Technology
Crypto cryptocurrency digital currency FTX Technology

What does Downfall of FTX Uncovers about Crypto Media

 

What happens when a crypto mogul holds the crypto equivalent of a press conference and is confronted with his role in a crypto media scandal? 

Sam Bankman-Fried was grilled this morning about Friday's revelation of his secret payments to the Block, a cryptocurrency publication founded in 2018. The question came at the end of a Twitter Spaces hosted by Unusual Whales, a pseudonymous Twitter account that gained a following by tweeting about congressional stock trades during the pandemic and now offers a financial information service with a heavy emphasis on crypto data. For the record, it resembled many old-fashioned press conferences, albeit in a new setting: Bankman-Fried dodged the question and exited the conversation.

But the moment emphasizes how much crypto-native media exists and how quickly it has developed its own online information realm that is largely distinct from the mainstream media. Crypto media, on the other hand, is a full-fledged entity in its own right. Much of it appears to be traditional outlets with newsrooms, articles, and podcasts that happen to cover a niche topic.

However, it is also inextricably linked to Twitter, the chat platform Discord, the encrypted messaging app Telegram, and tools for direct analysis of blockchain data. And it has a lot of overlap with the rest of the anti-establishment digital media sphere, as the FTX collapse demonstrates better than anything else.

Indeed, as part of the mogul’s ongoing apology tour, crypto entrepreneur Mario Nawfal, who hosted Musk for a Twitter Spaces to discuss the "Twitter Files," also hosted a Spaces with Bankman-Fried. To truly understand the crypto media sphere, go back to the early stages of the FTX collapse — one of the biggest stories in the world right now — and examine how much of it occurred in this largely self-contained ecosystem.

Bankman Fried's problems began with a Nov. 2 report by CoinDesk, a decade-old crypto news service owned by Digital Currency Group, a crypto-focused venture capital firm. According to financial records obtained by CoinDesk, FTX was more financially intertwined with its sister firm, the hedge fund Alameda Research, than previously known.

The report sparked online speculation that Bankman Fried's empire was not financially sound and that the price of FTX's native token, FTT, had been inflated. Changpeng Zhao, the CEO of rival exchange Binance, announced on Twitter four days later that his company was selling its FTT holdings.

Bankman-Fried and Alamada's CEO, Caroline Ellison, fought back on Twitter, assuring the cryptocurrency community that their finances were solid. On-chain analysis — the interpretation of publicly available blockchain data — suggested that the two were not as confident in FTX's financial position as they showed up. According to The Data Nerd, a pseudonymous Twitter account dedicated to on-chain analysis, Alameda sent more than $250 million in stablecoins to FTX in a single day.

As the collapse began, much of the most foresighted real-time analysis of FTX's precarious financial position came in Tweet threads and Twitter Spaces from Dylan LeClair, a contributor to Bitcoin Magazine.

As the fallout from the collapse unfolds, Autism Capital — a Twitter account created in 2020 and linked to a Discord chat — is one source of extensive leads and tips about it. It sometimes reports details of the fallout before mainstream media outlets. The account tweeted on December 4 that Ellison was represented by the law firm WilmerHale. Bloomberg has since confirmed this.

Of course, mainstream media outlets have covered the FTX story as well. POLITICO has covered the intricacies of Washington's response; the FT and Wall Street Journal have scooped stories about internal corruption; a Vox reporter published a damning interview with Bankman-Fried; and the New York Times landed a much-watched live interview with Bankman-Fried.

The tone of coverage, on the other hand, frequently varies. The FTX story is mostly about the dangers of cryptocurrency, with its lack of regulation and ever-present scams, in mainstream media. More emphasis is being placed in the crypto media world on the extent to which Bankman-Fried funded establishment media outlets and politicians while becoming the crypto mogul most embraced by those establishments. 

What's the big picture here?

Media ecosystems tend to form around important human interaction sites, such as governments and markets.

Governments' core activities generate fundamental units of information (e.g. bills and executive orders). Markets are the same way (prices and trading volumes). More elaborate media ecosystems can sprout up around these core pieces of information to cover everything else that's going on.
 
These digital networks also generate basic information, such as social media posts. Furthermore, blockchain networks — a new subset of digital networks — are abandoning on-chain data.

Could they one day support similarly robust media ecosystems?

It is astounding how large and developed the crypto media ecosystem has become. However, it is possible that it is too large.

After all, as Byron Guilliam, senior markets strategist at Blockworks, a crypto media firm aimed at financial institutions, told DFD, "the entire crypto market cap is smaller than Apple, and Apple does not have 15 media outlets covering it."

The demise of the FTX could point to the future of digital information. Or, as the crypto markets remain stagnant and the Block is now rocked by scandal, it could be the last gasp of a crypto media bubble about to burst.
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Security
Crypto Crypto Mining Data digital currency Google Translate malware Research Security

That 'Clean' Google Translate App is Actually Windows Crypto-mining Malware

 

 
The Turkish-speaking group responsible for Nitrokod, which has been active since 2019 is said to have infected thousands of systems in 11 countries. Nitrokod, a crypto mining Trojan, is usually disguised as a clean Windows app and functions normally for days or weeks before its hidden Monero-crafting code is executed. What's interesting is that the apps offer a desktop version of services that are normally only available online.

"The malware is dropped from applications that are popular, but don't have an actual desktop version, such as Google Translate, keeping the malware versions in demand and exclusive," Check Point malware analyst Moshe Marelus wrote in a report Monday.

"The malware drops almost a month after the infection, and following other stages to drop files, making it very hard to analyze back to the initial stage."

Nitrokod also uses other translation applications, such as Microsoft Translator Desktop, and MP3 downloader programmes in addition to Google Translate. On some websites, malicious applications will highlight about being "100% clean," despite the fact that they are infected with mining malware. Nitrokod has been productive in spreading its malicious code through download sites such as Softpedia. Since December 2019, the Nitrokod Google Translator app has been downloaded over 112,000 times, according to Softpedia.

Nitrokod programmers, according to Check Point, are patient, taking a long time and multiple steps to conceal the malware's presence inside an infected PC before installing aggressive crypto mining code. Due to the lengthy, multi-stage infection efforts, the campaign went unnoticed for years before being discovered by cybersecurity experts.

"Most of their developed programs are easily built from the official web pages using a Chromium-based framework. For example, the Google translate desktop application is converted from the Google Translate web page using the CEF [Chromium Embedded Framework] project. This gives the attackers the ability to spread functional programs without having to develop them."

After the program is downloaded and the user launches the software, an actual Google Translate app, built using Chromium as described above, is installed and runs normally. Simultaneously, the software quietly fetches and saves a series of executables, eventually scheduling one specific.exe to run every day once unpacked. This extracts another executable that connects to a remote command-and-control server, retrieves Monero miner code configuration settings, and begins the mining process, with generated coins sent to the miscreants' wallets. To conceal its tracks, some of the early-stage code will self-destruct.

One stage also looks for known virtual-machine processes and security products, which may indicate that the software is being researched. If one is discovered, the programme will terminate. If the programme is allowed to run, it will create a firewall rule that will allow incoming network connections.

Throughout the various stages, the attackers deliver the next stage using password-protected RAR-encrypted files to make them more difficult to detect. According to Marelus, Check Point researchers were able to investigate the crypto mining campaign using the vendor's Infinity extended detection and response (XDR) platform.
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Technology
Crypto cryptocurrency Digital Assets digital currency Digital Money NFTs Technology

Hackers Steal NFTs Worth $3M in Bored Ape Yacht Club Heist

 

Hackers stole non-fungible tokens (NFTs) estimated to be worth $3 million after getting into the Bored Ape Yacht Club's Instagram account and uploading a link to a replica website that tried to capture marks' assets.

The fake post offered a free airdrop – essentially a promotional token giveaway, to customers who clicked the link and connected their MetaMask crypto-asset wallets to the scammer's wallet. Rather than receiving free items, victims had their digital wallets drained. 

Bored Ape Yacht Club tweeted Monday morning in a warning that came too late for some of its members, "It looks like BAYC Instagram was hacked. Do not mint anything, click links, or link your wallet to anything,"  

The Bored Ape Yacht Club, or BAYC, is a collection of photographs depicting bored primates in various attitudes and costumes, which can be used as internet profile avatars and sell for hundreds of dollars in crypto coins. 

Miscreants stole four Bored Apes, six Mutant Apes, and three Bored Ape Kennel Club NFTs, as well as "assorted additional NFTs estimated at a total value of $3 million," according to Yuga Labs, the company that launched Bored Ape Yacht Club. 

"We are actively working to establish contact with affected users," a Yuga Labs spokesperson said, adding that its hijacked Instagram account did have two-factor authentication enabled, "and the security practices surrounding the IG account were tight." 

"Yuga Labs and Instagram are currently investigating how the hacker was able to gain access to the account," the spokesperson stated. 

This is the second time in less than a month that the NFT collection has been hacked. Bored Ape Yacht Club said on March 31 that their Discord server had been compromised. According to security firm PeckShield, a cybercriminal stole one NFT: Mutant Ape Yacht Club #8662 in a previous incident. 

In March, following the launch of the ApeCoin cryptocurrency by the Bored Ape Yacht Club, fraudsters stole around $1.5 million by claiming a huge amount of tokens using NFTs they did not own and obtaining bogus flash loans. Flash loans are given and repaid in a single blockchain transaction, which might take as little as seconds to get and return the funds. These and other recent hacks have raised security concerns about NFT and cryptocurrency technologies.
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US
Bitcoins Crytocurrency Digital Asset digital currency Technology US

US Attributes North Korean Lazarus Hackers to Axie Infinity Crypto Theft

 

The US Treasury Department announced on Thursday that it had linked North Korean hackers to the heist of hundreds of millions of dollars in cryptocurrencies linked to the popular online game Axie Infinity. 

On March 23, digital cash worth about $615 million was stolen, according to Ronin, a blockchain network that enables users to transfer crypto in and out of the game. No one has claimed responsibility for the hack, but the US Treasury announced on Thursday that a digital currency address used by the hackers was under the control of a North Korean hacking group known as "Lazarus." 

The Treasury Department spokesperson stated, using the initials of North Korea’s official name, “The United States is aware that the DPRK has increasingly relied on illicit activities — including cybercrime — to generate revenue for its weapons of mass destruction and ballistic missile programs as it tries to evade robust U.S. and U.N. sanctions.” 

The wallet's users risk being sanctioned by the US, according to the representative. Chainalysis and Elliptic, two blockchain analytics companies, said the designation validated North Korea was behind the break-in. Sky Mavis co-founder Aleksander Larsen, who develops Axie Infinity, declined to comment. Sky Mavis engaged CrowdStrike to investigate the incident, but the firm declined to comment. 

The FBI has ascribed the attack to the Lazarus Group, according to a post on the official Ronin blog, and the US Treasury Department has sanctioned the address that received the stolen money. The Reconnaissance General Bureau, North Korea's primary intelligence bureau, is said to be in charge of the Lazarus hacking squad, according to the US. It has been accused of being involved in the "WannaCry" ransomware attacks, as well as hacking multinational banks and customer accounts and the Sony Pictures Entertainment hacks in 2014. 

Cryptocurrency systems have long been afflicted by hacks. The Ronin hack was one of the most massive cryptocurrency thefts ever. Sky Mavis stated it will refund the money lost using a combination of its own balance sheet capital and $150 million raised from investors including Binance. 

The Ronin blog stated, “We are still in the process of adding additional security measures before redeploying the Ronin Bridge to mitigate future risk. Expect the bridge to be deployed by end of month.” 

According to a Treasury spokesperson, the US will consider publishing crypto cybersecurity guidelines to help in the fight against the stolen virtual currency.
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Technology
Bitcoin cryptocurrency Digital Asset digital currency FBI North Korean Hackers Technology

FBI: North Korean Hackers Stole $600M+ Worth Cryptocurrency

 

The FBI accused North Korean government associated hackers of stealing more than $600 million in bitcoin from a video game company last month, the latest in a sequence of sophisticated cyber thefts linked to Pyongyang. 

The FBI said in a statement, "Through our investigation we were able to confirm Lazarus Group and APT38, cyber actors associated with the DPRK, are responsible for the theft of $620 million in Ethereum reported on March 29th." "DPRK" is an abbreviation for North Korea's official name, the Democratic People's Republic of Korea, and Ethereum is a technology platform linked with a type of cryptocurrency. 

The FBI was referring to the recent hack of Axie Infinity's computer network, which allows gamers to win cryptocurrency. Undiscovered hackers stole the equivalent of about $600 million — estimated at the time of the hack's detection — on March 23 from a "bridge," or network that allows users to transmit cryptocurrency from one blockchain to another, according to Sky Mavis, the business that developed Axie Infinity. 

The US Treasury Department sanctioned Lazarus Group, a large group of hackers suspected of working for the North Korean government, on Thursday. The precise "wallet," or bitcoin address, that was utilised to cash out on the Axie Infinity hack was sanctioned by the Treasury Department.

According to a United Nations panel and outside cybersecurity experts, cyberattacks have been a major source of revenue for the North Korean state for years as its leader, Kim Jong Un, pursued nuclear weapons. North Korea is reported to have fired its first intercontinental ballistic missile in more than four years last month. According to Chainalysis, a company that records digital currency transactions, the Lazarus Group has stolen an estimated $1.75 billion in cryptocurrencies in recent years. 

Ari Redbord, head of legal affairs at TRM Labs, a firm that investigates financial crime said,"A hack of a cryptocurrency business, unlike a retailer, for example, is essentially bank robbery at the speed of the internet and funds North Korea's destabilizing activity and weapons proliferation. As long as they are successful and profitable, they will not stop." 

While much of the focus of cybersecurity analysts has been on Russian hacking in the wake of the Ukraine conflict, suspected North Korean hackers have been far from silent. Last month, Google researchers revealed two separate suspected North Korean cyber attempts aimed at US media and IT businesses, as well as the bitcoin and financial technology industries. Users who are targeted by state-sponsored hackers are notified by Google. 

If a Google user has "any link to being active in Bitcoin or cryptocurrencies" and receives a warning from Google about state-backed hacking, it nearly invariably turns out to be North Korean activity, according to Shane Huntley, who leads Google's Threat Analysis Group.

Further, Huntley told CNN, "It seems to be an ongoing strategy for them to supplement and make money through this activity." 
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Russia
bloomberg Central Bank of Russia Crypto Currency Crypto Currency law crypto legalisation Cyber Security Digital Asset digital currency Russia

The Moscow Kremlin and the Russian Government Have Estimated the Russian Cryptocurrency Market at $214 Billion

 

Bloomberg claims, citing its own sources that the Kremlin and the Russian government have estimated the Russian cryptocurrency market at $214 billion. This assessment is used during the development of a plan to regulate the industry. 

The volume of cryptocurrency held by Russians was calculated in January 2022 by analyzing the IP addresses of major cryptocurrency exchange users and other information. The agency writes that the estimate may be an underestimate because many traders hide their activities. 

In November 2021, the Central Bank of Russia estimated the annual volume of transactions of Russians with digital assets at $5 billion. The data were obtained based on the results of a survey of large banking organizations in July 2021. The Central Bank also noted that Russian users are among the most active participants in the digital currency market. Russia is among the leaders in the number of visits to digital currency exchanges. 

Later, during the parliamentary hearings, Anatoly Aksakov, head of the State Duma Committee on Financial Market, estimated investments of Russian residents in cryptocurrencies at $194 million. Aksakov stressed that unqualified investors are also interested in digital assets, so the authorities need to determine the position on digital assets and legislate it. 

It is interesting to note that on January 20, the Central Bank published a report for public discussion, in which it proposed to ban the issuance, circulation, and exchange of cryptocurrencies in Russia, as well as the organization of these operations. The regulator also considers it necessary to ban the mining of digital assets and start monitoring the investments of Russians in cryptocurrency on foreign trading platforms. 

However, after the Central Bank report, Deputy Prime Minister Dmitry Chernyshenko approved a roadmap on cryptocurrencies, which proposes the regulation of cryptocurrencies, rather than their prohibition, identification of customers, responsibility for illegal trafficking of digital assets, as well as the development of a methodology for assessing the value of cryptocurrencies. 

Representatives of the Ministry of Finance, the Ministry of Economic Development, the Prosecutor General's Office, Rosfinmonitoring, the FSB, the Ministry of Internal Affairs, the Federal Tax Service, the Ministry of Finance, and the Bank of Russia participated in the development of the roadmap. 

On January 26, Russian President Vladimir Putin called on the government and the Central Bank to come to a consensus on the regulation of digital assets. The Head of state said that he was familiar with the discussion concerning the regulation of cryptocurrencies. 

Earlier, CySecurity News reported that the Russian billionaire Oleg Deripaska criticized the Central Bank for allegedly “infantilely closing his eyes to the growing cryptocurrency market.” As an argument, the billionaire cited the actions of the US Treasury, which, according to him, invests in the crypto industry.
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Security
Bitcoins cryptocurrency digital currency malware Ransomware ransomware attacks Security

Cheap Malware Behind Surge in Attacks on Cryptocurrency Wallets

 

Due to the surge in low-cost, easy-to-use malware, cyber thieves may now steal cryptocurrency more easily than before. 

Whether stealing it be straight from cryptocurrency exchanges or demanding it as an extortion payment in ransomware attacks, Bitcoin has consistently been a favoured target for sophisticated cybercriminals. 

However, because of its rising value, cryptocurrency has swiftly become a target for cyber thieves, who are increasingly undertaking attacks aimed at stealing cryptocurrency from individual users' wallets. According to Chainalysis, cryptocurrency users are more vulnerable to malware such as information stealers, clippers (which allow attackers to alter text copied by the user, routing cryptocurrency to their own wallets), and trojans, all of which can be purchased for "quite cheap." 

On Russian cybercrime forums, for example, a type of info-stealer virus known as Redline is marketed for $150 for a month's subscription or $800 for a 'lifetime' membership. Unfortunately, for a cybercriminal aiming to steal cryptocurrencies, it's quite likely that they'll recoup their investment in software within a few attacks. 

The illegal service also gives users access to a tool that enables attackers to encrypt malware, making it harder for anti-virus software to identify it, boosting the chances of attacks successfully taking cryptocurrency from victims. 

"The proliferation of cheap access to malware families like Redline means that even relatively low-skilled cybercriminals can use them to steal cryptocurrency," warned the report. 

Overall, the malware families in the research got 5,974 transfers from victims in 2021, up from 5,449 in 2020 – but still far less than the 7,000 transfers seen in 2019. However, Redline is only one kind of malware designed to steal cryptocurrency, and the market for this type of malware is rising. Crypobot, an infostealer, was the most common theft of cryptocurrency wallets and account credentials among the occurrences tracked, acquiring about half a million dollars in bitcoin in 2021. 

Furthermore, progress in stealing cryptocurrency from consumers may encourage more ambitious cyber criminals to attack organisations and even cryptocurrency exchanges, implying that the possibility of cybercriminals attacking crypto wallets and credentials is something that businesses should be aware of. 

The blog post stated, "The cybersecurity industry has been dealing with malware for years, but the usage of these malicious programs to steal cryptocurrency means cybersecurity teams need new tools in their toolbox." 

"Likewise, cryptocurrency compliance teams already well-versed in blockchain analysis must educate themselves on malware in order to ensure these threat actors aren't taking advantage of their platforms to launder stolen cryptocurrency."
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Ethereum
Bitcoin BitMart Crypto Wallets Crypto-wallet Cryptocurrencies Data Breach digital currency Ethereum

BitMart Will Compensate Victims of $196 Million Hack

 

The global Cryptocurrency trading platform BitMart has recently witnessed a security breach in the wake of which the company has released a statement and confirmed that the hackers have managed to steal $150 million in various cryptocurrencies. Sheldon Xia, BitMart’s CEO, and founder confirmed the breach on Twitter. 

The company confirmed in the statement that although all wallets, except ETH and BSC, are “secure and unharmed,” Bitmart has temporarily paused all withdrawals until further notice. 

“The affected ETH hot wallet and BSC hot wallet carry a small percentage of assets on BitMart and all of our other wallets are secure and unharmed. We are now conducting a thorough security review and we will post updates as we progress,” the company said in a statement. 

Additionally, Sheldon Xia said that during the investigation they discovered that the cryptocurrencies were drained by using a stolen private key which usually enables a user to access their cryptocurrency.

Furthermore, the company’s intelligence confirmed that it will compensate victims, it will use its own assets to recompense victims of this large-scale security breach. As per the sources, hackers withdrew $150 million in assets. However, blockchain security and data analytics firm Peckshield, which first confirmed the attack, claims that the loss is closer to $200 million. 

Owing to the cyberattack, the trade volume of the company has gone down, CoinGecko CEO Bobby reported. “Crypto exchange hacks are fairly common. Exchanges are a honeypot for hackers because of the high potential payoff for any successful exploit,” he said.

Bitmart was created by cryptocurrency enthusiasts, the roadmap began in November 2017. It has worldwide offices, with the company being registered in the Cayman Islands. The platform offers a mix of spot trading, OTC trading, leveraged futures trading as well as lending and staking services, and other services for digital assets. Also, in April, Bitmart registered with US regulators and was named MSB. 


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MyKings
Bitcoin Address Bitcoins Botnet Cryptocurrencies digital currency malware MyKings

This Malware Botnet Gang has Made Millions With a Surprisingly Simple Trick

 

MyKings, a long-running botnet, is still active and has generated at least $24.7 million by using its network of compromised computers to mine for cryptocurrencies. 

It is also known as Smominru and Hexen and is the world's largest botnet focused on mining cryptocurrencies by exploiting the CPUs of its victims' desktop and server computers. It's a profitable business that grabbed notoriety in 2017 after infecting more than half a million Windows machines to mine $2.3 million of Monero in a month. 

A security firm, Avast has now verified that its operators have received at least $24.7 million in cryptocurrencies, which have been transferred to Bitcoin, Ethereum, and Dogecoin accounts. It states, however, that the majority of this was accomplished by the group's 'clipboard stealer module.' When it detects that a cryptocurrency wallet address has been duplicated (for example, to make a payment), this module replaces it with a new cryptocurrency address authorized by the group. 

Since the beginning of 2020, Avast claims to have blocked the MyKings clipboard stealer from 144,000 computers: the clipboard stealer module has emerged in 2018. 

According to the study of the security firm Sophos, the clipboard stealer, a trojan, monitors PCs for the usage of various currency wallet formats. It operates because users frequently utilise the copy/paste option to enter rather lengthy wallet IDs when logging into an account. 

Sophos noted in a report, "This method relies on the practice that most (if not all) people don't type in the long wallet IDs rather store it somewhere and use the clipboard to copy it when they need it. Thus, when they would initiate a payment to a wallet, and copy the address to the clipboard, the Trojan quickly replaces it with the criminals' own wallet, and the payment is diverted to their account." 

Sophos did mention, however, that the coin addresses it discovered "hadn't received more than a few dollars," implying that coin theft was a tiny component of the MyKings operation. Sophos estimates that the crypto-mining part of the company generated around $10,000 per month in October 2019. 

Avast now claims that MyKings is generating significantly more money from the clipboard trojan after extending the 49 coin addresses uncovered in Sophos' investigation to over 1,300 coin addresses. 

According to Avast, the clipboard stealer's involvement may be far greater than Sophos uncovered. Avast researchers explain in a report, "This malware count on the fact that users do not expect to paste values different from the one that they copied. It is easy to notice when someone forgets to copy and paste something completely different (e.g. a text instead of an account number), but it takes special attention to notice the change of a long string of random numbers and letters to a very similar looking string, such as crypto wallet addresses.” 

"This process of swapping is done using functions OpenClipboard, EmptyClipboard, SetClipboardData and CloseClipboard. Even though this functionality is quite simple, it is concerning that attackers could have gained over $24,700,000 using such a simple method." 

Remarks from users on Etherscan who claimed to have mistakenly sent amounts to accounts covered in Avast's study provide circumstantial evidence to support the idea that the clipboard stealer is certainly effective.

Avast recommended that people should always double-check transaction details before sending money.
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UAE
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DubaiCoin: Dubai's First Cryptocurrency Rose Over 100% Since its Debut

 

Dubai appears to have developed its own cryptocurrency, known as the DubaiCoin (DBIX). It is established on a public blockchain, which means that anyone can mine DBIX to generate their own.  

On May 27, around 4 p.m. IST, it was trading at roughly $1.13, up from the original price of $0.17. According to Crypto.com, the price of the cryptocurrency has increased by over 1000 percent in the last 24 hours.

The city of Dubai, on the other hand, issued a statement late last night denying this According to the official Dubai Media Office, “Dubai Coin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors.”

Arabianchain Technology, based in the United Arab Emirates (UAE), claimed to be the first public blockchain in the Arabic world when it introduced cryptocurrency. In a press release, the company stated, “DubaiCoin will soon be able to be used to pay for a range of goods and services both in-store and online, with the clear intention for the coin to be used in place of traditional bank-backed currencies. Circulation of the new digital currency will be controlled by both the city itself and authorized brokers.” 

The United Arab Emirates is regarded as being a safe place for cryptocurrency investors but the Dubaicoin, on the other hand, would be distinct from other cryptocurrencies. While mining should make it fairly volatile, and as it is built on a public blockchain, it's unclear what Arabchain means when it says the city of Dubai is regulating its pricing. If the coin replaces (or operates interchangeably with) the Dirham inside the UAE, it may qualify as a central bank digital currency (CBDC). 

Being located in Dubai should provide the coin some stability since Dirham is always stable versus the dollar because of specific international treaties between the two countries. 

Although the Dubaicoin is not exactly CBDC, it is the closest thing to China's official digital Yuan, which is now being tested in the country. Countries such as the United States, India, the United Kingdom, and the European Union are considering digital versions of fiat currencies.
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Technology
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Sberbank predicts an outflow of up to ₽4 trillion from banks to the digital ruble

Sberbank predicted an outflow of two to four trillion rubles (around $5,5 billion), which are currently stored in banks, to the digital ruble. According to the credit institution, this can happen within three years.

Deputy Chairman of the Board of Sberbank Anatoly Popov said that now the market does not have a large liquidity surplus. "These funds (2-4 trillion rubles) will no longer be available for lending, which will eventually lead to a shortage of liquidity and, as a result, to an increase in rates," predicted Mr. Popov.

According to Popov, the flow of about 10 percent of non-cash funds into the digital ruble will lead to an increase in credit rates by half a percentage point.

Earlier, in October 2020, the Central Bank of Russia presented the concept of the digital ruble. It was supposed to take the form of a unique digital code stored in a special electronic wallet. The transfer of the digital ruble from user to user will take place in the form of moving a digital code from one electronic wallet to another.

It is expected that the digital ruble will become a full-fledged means of payment, just like the regular ruble, and will be able to be used by the population, business, and the state, ensuring simplicity of payments, their high speed, high reliability, and low costs.

The largest market participants supported the concept of the Central Bank, but Sberbank proposed to expand the properties of the digital currency to all non-cash money. According to the state bank, the payment system will benefit more from the evolution of the non-cash ruble than from the creation of an additional digital currency.

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Technology
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Expert opinion: how the digital currency of the Bank of Russia will change the future of the country

Announcing the possible appearance of the digital ruble, the Russian Central Bank joined dozens of world Central banks that have begun research and experiments in the field of creating national digital currencies.

Yevgeny Marchenko, Director of E. M. FINANCE, was one of the first to share his opinion on the issue. The expert is sure that the introduction of the digital ruble is necessary to increase the convenience of payments for citizens.

Also, among other advantages for citizens and banks, the introduction of the electronic ruble will allow the Bank of Russia to better regulate the country's economy.

The official representative of the Garantex cryptocurrency exchange, Tatyana Maksimenko, noted that it will be increasingly difficult to conduct gray and black schemes since cash flows will be under control — both foreign and domestic.

According to independent expert Leonid Khazanov, the digital ruble is primarily beneficial to the Bank of Russia and the Federal Tax Service. According to him, it will be possible to more effectively control the movement of cash flows in the country and it will be easy to identify any user who has an electronic wallet, which means complete transparency of all transactions. And no one can create several accounts or disguise themselves in any way, each legal entity and individual can only have one e-wallet.

Experiments by Central banks in a number of countries with the national digital currency reveal unsolved problems: for example, the inability to control cross-border movements or the potential use of anonymizers that make it difficult to track payments. The fate of digital currencies, including the ruble, depends on whether regulators will be able to close these gaps.

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Technology
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Bitcoin Prices Are Off The Charts!


Bitcoin, our favorite digital currency has experienced a certain kind of unbelievable hike, all of a sudden. It has profited across several markets with a spike of 12% in its price solely in the last week, mention sources.

Word has it that the Bitcoin price has risen around 6% in the last 24-hour trading duration, overtaking next to all main indices, even the stocks throughout Asia and Europe.

Bitcoin and other forms of digital currency including cryptocurrency have escalated around the globe owing it to the Coronavirus lockdowns.

Per sources, The Bitcoin price has outgrown the $7,000/Bitcoin level and is ascending to “$7,170 on the Luxembourg-based Bitstamp exchange”.

As if they knew things were going to go south, the Bitcoin investors were up and about right from the start of this year. In fact, surveys indicate that the Bitcoin price has a high probability of rocketing up to $20,000/Bitcoin in 2020.

The basic foundational facets for a better Bitcoin system exist today owing to various developmental projects in the crypto industry. An in case of such massively unprecedented crisis investors would want to fall back upon digital currency

Asian and European markets furthered their reserves by 3% and 2-4%. Researchers mention that Bitcoin purchases could have a positive effect on the stock markets.

History has it that the Bitcoin price has seen a major upswing before from a low $1,000 to a high $20,000 in a matter of a year.

Investors are in genuine awe with this ascent in the prices of Bitcoin and see this as a new opportunity for cryptocurrency in general because of the fresh interest the market has shown for it.

Per analysts, this year investors may need to rethink their current cryptocurrency store and even pile up more of it in case of increased demand because of risk assets.

Everyone understands that if the things were to stay the way they are there is a strong chance for a longer period of intense recession.

This has given birth to questions regarding the effect of COVID-19 on the economy and the part Bitcoin could play in it.



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Technology
Bitcoin cryptocurrency digital currency Finance Technology

Bitcoin No More the World's Most Used Cryptocurrency, as Tether Takes Over

If someone were to ask you "what's the world's most used cryptocurrency?” you'd probably say "Bitcoin," which accounts for 70% of the world's market value digital assets. But in reality its Tether, which is now the world's most used cryptocurrency.

Although precise numbers on trading measures are arduous to get in this misty business environment, statistics from CoinMarketCap.com point that the Tether is the highest daily and monthly valued cryptocurrency, even though its market capitalization is 30% less.



In April, Tether's profit outdid Bitcoin for the first time, and since early August, it has steadily exceeded it at the rate of $21 billion per day, says CoinMarketCap.com. With its steadily trading volume nearly 18% greater than Bitcoin, Tether has no doubt become one of the most significant coins in the crypto sector.

It's also the leading cause why governors view cryptocurrencies with skepticism and have set a halt on crypto exchange-traded supplies among distress of business administration.

"Without Tether, we would have suffered a heavy cost of the regular amount -- about $1 billion or higher depending on the information reference, ” says Lex Sokolin, co-head, global financial technology at ConsenSys, which extends blockchain technology services.

"Few concerning possible tappings of dealing in the business may begin to drop off,” says Lex.

The reason being is Tether is the most accepted steady coin around the globe, as it avoids price fluctuations through stocks. Tether is also a road to the crypto market for most of the world's existing businesspeople. 'For instance, in China, a trading giant where cryptocurrency is outlawed, people can comfortably spend for cash with tethers on the tables without any uncertainty or mistrusts,' says Lex 'and furthermore they can swap it for bitcoins and distinct cryptocurrencies.'

Is it safe? 

 However, many people don't truly rely on Tether, says Thaddeus Dryja, a research scientist at the Massachusetts Institute of Technology. People think of Tether as some money in their account, without actually realizing that they are using it, he says.

'Some trades unspecified their folios, to send the idea that customers are holding money rather than Tethers,' said Thaddeus.
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Facebook to launch a new digital cryptocurrency





Social media giant Facebook is set to roll out a new digital cryptocurrency, Libra, next year, which would let users’ buy things as well as send money to people without any process fees. 

People would be able to make payments with the currency via    third-party wallet apps or Facebook’s own Calibra wallet that will be built into WhatsApp, Messenger and its own app. 

It is said that firms such as Uber and Visa will accept it in future.

From next year, Facebook users’ will be able to buy Libra from its platforms and then it will be stored in a digital wallet called Calibra.

The user can make payments and send money to other  users, and this whole process would instant and as easy as texting. 

"In time, we hope to offer additional services for people and businesses, such as paying bills with the push of a button, buying a cup of coffee with the scan of a code, or riding your local public transit without needing to carry cash or a metro pass,” it said. 

However, there is a big concern over how users’ money and data will be protected. 

The firm stressed that Libra would not be managed solely by the Facebook, but it would be independent, and run by a group of companies and charities- called the Libra Association.

Group of companies that are likely to accept Libra, includes
  • Payments firms such as Mastercard and PayPal
  • Digital businesses including eBay, Spotify and Uber
  • Telecoms firms such as Vodafone
  • And charities such as the microfinance group Women's World Banking.


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Virtual Currency
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Marshall Islands to launch digital currency this year

The Marshall Islands' is gearing to release a digital currency this year, although officials acknowledged Friday there is much work still to be done to alleviate concerns of United States financial regulators as well as solve technological and logistical issues. However, the launch date of the currency, known as the "SOV", has yet to be decided.

“We plan to launch SOV this year,” said Barak Ben Ezer, chief executive officer of Neema, the Israel-based company that is partnering with the Marshall Islands government to develop the digital currency.

A primary issue for the launch is that following the boom in 2017 and early 2018, the crypto-currency market value has plummeted.

"We are working days and nights to prepare the foundations of the SOV initial coin offering, with the goal of being ready to launch once positive momentum is back to the markets," Ezer said.

"It will be done once all stakeholders are convinced that SOV is ready, risks have been mitigated, and momentum is building." Neema and the Marshall Islands are working through a multitude of US regulatory concerns as well as the technological and logistical side of issuing the SOV using blockchain technology.

The Marshall Islands, a tiny Pacific atoll nation with a population of just 55,000, passed legislation a year ago to develop digital currency as legal tender.

The plan has since been criticized by the International Monetary Fund, the US Treasury Department and bank officials in the Marshall Islands.

They argue it has the potential for a negative impact on existing banks and for money-laundering, but Ezer believed that once fully developed, the SOV will be one the safest monetary systems in the world.

The US Treasury has concerns about "anonymous digital currencies, such as Bitcoin, (which) are often used for illicit purposes by people who want to conceal their identity," Ezer said.
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