ReportWire

Tag: crypto scam

  • Crypto user loses $69.3m to address poisoning scammer 

    Crypto user loses $69.3m to address poisoning scammer 

    [ad_1]

    Crypto scammers successfully stole a whopping 1,155 wrapped Bitcoin using a technique that tricks users into malicious transactions. 

    According to blockchain security provider CertiK, a crypto user lost over $69.3 million in wrapped Bitcoin (WBTC) to an address-poisoning attack on May 3. At first, the attacker mirrored a 0.05 Ethereum (ETH) transfer before stealing the WBTC in the next transaction.

    On-chain investigator ZachXBT and crypto security provider Cyvers corroborated the news. Cyvers CTO Meir Dolev said the case was “probably the highest value lost due to an address poisoning scam” to date. 

    In an address poisoning scam, victims are presented with a similar wallet address and deceived into transferring assets to an exploiter. The malicious address usually imitates the four to six characters at the beginning and end of an address. 

    Users fall prey to this method as the differences are sometimes hard to spot, especially since wallet addresses may exceed 40 alpha-numeric characters in some cases. 

    The incident has already eclipsed the proceeds from exploits and scams throughout the last month, which amounted to about $25.7 million in digital assets. CertiK also noted that April saw the lowest defi scam levels seen since 2021. 

    [ad_2]

    Naga Avan-Nomayo

    Source link

  • Scammers pilfered $55m from 40k victims in January alone, data shows

    Scammers pilfered $55m from 40k victims in January alone, data shows

    [ad_1]

    Analysts at Scam Sniffer say bad actors stole $55 million worth of crypto and created over 11,000 phishing websites in January alone.

    In an X thread on Feb. 9, Scam Sniffer revealed a trend observed in January, noting a rise in phishing attacks coinciding with heightened activity within crypto communities following a series of airdrops in the previous month.

    According to the data, scammers created over 11,400 phishing websites in January, impersonating Manta Network, Frame, SatoshiVM, AltLayer, Dymension, zkSync, Pyth, OpenSea, Optimism, Blast, and others. Apparently, their efforts paid off as cybercriminals pilfered nearly $55 million worth of crypto across Ethereum Virtual Machine-based networks, with the top seven victims losing $17 million.

    “The majority of the thefts occurred on the Ethereum mainnet, followed by Arbitrum, BNB, Optimism, and Polygon.”

    Scam Sniffer

    As per Scam Sniffer, a common method employed by hackers involved exploiting the ERC-20 Permit function, deceiving users into unwittingly transferring funds from their non-custodial wallets under the guise of legitimate operations.

    Total crypto victims in January 2024 | Source: Dune

    Additionally, perpetrators increasingly leveraged the increaseAllowance function, enabling them to manipulate token allowances granted to malicious smart contracts. Many people fell for scams because cybercriminals were actively posting fake comments on X pretending to be real projects like Optimism and zKSync, underscoring the persistent threat posed by fraudulent online presences.

    As crypto.news previously reported, illicit crypto addresses received over $24 billion worth of crypto in 2023, down from an estimated $39.6 billion in 2022. According to Chainalysis data, there has been a transition in the types of assets involved in crypto crime, with stablecoins now constituting the majority of illicit transaction volume.


    Follow Us on Google News



    [ad_2]

    Denis Omelchenko

    Source link

  • Crypto selling scam sees pastor collect $1.3m from investors

    Crypto selling scam sees pastor collect $1.3m from investors

    [ad_1]

    The Denver-based pastor, who runs an online-only church called Victorious Grace Church, allegedly sold worthless INDXcoin crypto, and made away with a huge chunk of the proceeds.

    According to The Denver Post, citing a recently filed lawsuit, Eli Regalado — the creator and founder of INDXcoin and the Kingdom Wealth Exchange — is facing securities fraud charges.

    The pastor allegedly defrauded online investors by promising that purchasing a coin would grant them “a miracle in very short order.”

    “Just take that word as gospel truth and execute on that word, and do not worry about how the money’s going to happen. I really believe you’re going to see a miracle in very short order.”

    Denver pastor Eli Regalado

    Using sermons and enticing statements, Regalado told his online listeners that buying INDXcoin served as part of the preparations for entering “the kingdom,” where he promised that by diving into the crypto project, they would “have more money” than ever.

    The exchange and crypto project were shut down in November 2023, with investors wondering what had transpired.

    In the Denver District Court case filing, Tung Chan, the state’s securities commissioner, claimed that the Regalados had sold $3.4 million worth of “valueless” INDXcoins in 2022 and the first half of 2023.

    At least $1.3 million of that, according to Chan, whose office subpoenaed the couple’s bank records, went directly to the Regalados. 

    Chan believes the Regalados enticed devout Christians to make investments that would go to a good cause, like helping orphans and widows, but the payments were reverted to the church owners.

    The couple allegedly used the funds to make extravagant purchases such as a Range Rover, jewelry, high-end purses, cosmetic dentistry, boat and snowmobile rentals, and house repairs.

    Additionally, they sent about $290,000 to the church’s account, which has no physical location.

    Before the project shutdown, INDXcoins sold for $1.50 a piece, with payments sent via wire transfer to Grace Led Marketing’s bank account or Eli Regalado’s Venmo account.

    According to the complaint, investors were told that each INDXcoin was worth at least $10 and that 30 million of these currencies were in use, meaning the corporation should have had $300 million to support the coins.

    After conducting investigations, state detectives discovered just $30,000.

    The cryptocurrency was audited by Hacken, a cybersecurity firm, according to the INDXcoin website. The Regalados omitted the fact that Hacken gave the project a “0/10” rating, as revealed by state investigators who have copies of Hacken’s audits.


    Follow Us on Google News

    [ad_2]

    Julius Mutunkei

    Source link

  • Down Big: Crypto Scamming Numbers Reduced In 2023 – Report

    Down Big: Crypto Scamming Numbers Reduced In 2023 – Report

    [ad_1]

    2023 started with a challenging overall landscape for the crypto market that continued throughout the rest of the year. However, the market saw a recovery with a spike in bullish sentiment and ended the year on a positive note.

    Additionally, 2023 saw a decline in crypto scamming and crypto-related illicit activity compared to the previous year, as new data shows.

    Illicit Activity Market Revenue Decline In 2023

    American blockchain analysis firm Chainalysis released its 2024 Crypto Crime Report detailing the trends and figures that crypto-related illicit activities saw in 2023. The firm’s data shows a significant drop in value received in cryptocurrency addresses used for illicit activities, totaling $24.2 billion.

    This is a considerable reduction compared to the 2022 updated estimate of $39.6 billion. In addition, the share of all crypto transaction volume associated with illicit activity reduced from 0.42% in 2022 to 0.34% in 2023.

    According to the report, there seems to be a shift in the type of assets involved in crypto-related crime activities over the last two years, with Bitcoin no longer being the most used asset for most illicit transactions.

    Alternately, stablecoins have become a more popular choice for crypto assets involved in illicit activities, as the report states. This increase could be attributed to the recent general growth of stablecoins’ share of all crypto activity overall.

    The shift to stablecoins is not seen in every related crime, with activities, such as darknet market sales and ransomware extortion, still taking place predominately in Bitcoin.

    Nonetheless, it’s worth noting that their issuers can trace stablecoins, and funds can be frozen when addresses are linked to illicit activities, as Tether did back in 2023.

    Illicit transaction volume by asset type, 2018-2023. Source: Chainalysis

    Trends That Defined Crypto-Related Crime In 2023

    Chainalysis on-chain metrics suggest that scamming revenues have been trending globally since 2021. Although these crimes are still underreported, “overall, scamming is down, given broader market dynamics.”

    Romance scams, such as ‘pig butchering,’ are among the most popular crypto scamming tactics used by scammers and are one of the biggest forms of related crime by transaction volume.

    Regarding crypto hacking, the firm believes that “the decline in stolen funds is driven largely by a sharp dropoff in DeFi hacking,” it could represent “the reversal of a disturbing, long-term trend.” In 2023, crypto scamming and hacking revenue fell significantly, with the total revenue decreasing 29.2% and 54.3%, respectively.

    In contrast to the overall trends, ransomware and darknet markets, two of the most prominent forms of related crime, saw revenues rise in 2023. Similarly, 2023’s growth in darknet market revenue comes after a 2022 decline in revenue.

    The report shows that transactions with sanctioned-related entities and jurisdictions drive most of the illicit activity as entities and jurisdictions move towards using stablecoins and other crypto assets to bypass restrictions.

    They accounted for a combined $14.9 billion transaction volume in 2023, representing 61.5% of all illicit transactions over the year. Chainalysis explains that:

    Most of this total is driven by cryptocurrency services that were sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), or are located in sanctioned jurisdictions, and can continue to operate because they’re in jurisdictions where U.S. sanctions are not enforced.

    Ultimately, the report addresses that not all sanction-related transactions are due to the illicit use of digital assets, as some of that $14.9 billion volume is related to the average users who reside in the sanctioned jurisdictions.

    BTCUSDT, Crypto

    Bitcoin trading at $41,906.6 on the hourly chart. Source BTCUSDT on TradingView.com

    Featured image from Unsplash.com, Chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    [ad_2]

    Rubmar Garcia

    Source link

  • Scam recruiters target blockchain devs on Upwork, steal crypto with npm packages

    Scam recruiters target blockchain devs on Upwork, steal crypto with npm packages

    [ad_1]

    A blockchain developer fell victim to a crypto scam after responding to a seemingly legitimate Upwork job.

    Bad actors have turned to Upwork in an effort to lure blockchain developers into downloading malicious software, enabling them to drain cryptocurrencies from non-custodial wallets. As per a BleepingComputer report, scam recruiters are instructing victims via LinkedIn to download and debug code from two malicious npm packages, hosted on a GitHub repository.

    One of the malicious npm packages on GitHub | Source: BleepingComputer

    Once developers execute the packages, a malicious script gains access to their devices. In an interview with BleepingComputer, Antalya-based blockchain developer Murat Çeliktepe revealed losing over $500 from his MetaMask wallet in crypto after opening the npm packages, providing scammers with remote access to his device.

    The incident extends beyond Çeliktepe, as the report notes other developers reporting similar encounters with the same recruiters on LinkedIn, highlighting the prevalence of scams targeting blockchain developers.

    Scammers seem to continue targeting blockchain developers through job platforms like LinkedIn and Upwork, showcasing a persistent strategy. In an incident in 2022, North Korea-affiliated hackers managed to pilfer $600 million from the Axie Infinity blockchain game by sending a fake job offer in a malicious PDF file via LinkedIn to an engineer from Sky Mavis, a company behind the web3 game.


    Follow Us on Google News

    [ad_2]

    Denis Omelchenko

    Source link

  • Fake Rabby Wallet sneaks into Apple's App Store

    Fake Rabby Wallet sneaks into Apple's App Store

    [ad_1]

    Apple has listed a fraudulent version of Rabby Wallet, a product that is only available on desktop devices.

    A malicious clone of cryptocurrency wallet Rabby Wallet has been spotted on Apple‘s App Store as scammers are desperately trying to lure victims by posing as providers of legitimate products.

    According to an X post from the Rabby Wallet account, the fake mobile application “has surfaced again,” and the team has emphasized that there’s no official mobile app “at the moment.” As of press time, Rabby Wallet is only available as an extension for Google Chrome and a standalone application for desktop devices, according to the project’s website.

    The description of the counterfeit application attributes its development to “Dinh Thi Phuonh Dung,” an entity with no prior applications published on the App Store. Adding to the suspicion, the developer’s privacy policy directs users to “freeprivacypolicy[dot]com,” raising questions about how the application managed to circumvent Apple’s moderation. At the time of writing, a search for “Rabby Wallet” places the fake application in the top slot, heightening concerns regarding the efficacy of Apple’s vetting process.

    Developed by DeBank, Rabby Wallet is a multi-chain wallet with support for over 120 chains, including Arbitrum, Base and others.

    In early 2023, crypto.news reported that operators of high-yielding investment schemes known as “pig butchering” discovered a way to evade security measures in Google Play and Apple’s App Store.

    According to cybersecurity firm Sophos, the scammers have shifted their deceptive tactics from previous strategies involving malicious ads, social engineering, and counterfeit websites. Instead, they are now exploiting the trust associated with platforms like Google Play and the Apple App Store, making it easier for victims to fall prey to their scams.

    For instance, the scammers are extending their reach to the victim’s social media accounts, particularly focusing on platforms like Facebook and Tinder, where they attempt to persuade individuals to download fraudulent applications promising high returns.


    Follow Us on Google News

    [ad_2]

    Denis Omelchenko

    Source link

  • Key security mistakes that may lead a defi project to foul play | Opinion

    Key security mistakes that may lead a defi project to foul play | Opinion

    [ad_1]

    Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

    The defi space has been relatively tranquil in recent times. At the beginning of 2023, the stablecoin trading project Platypus encountered a flash loan attack on AAVE, resulting in a loss of $9 million worth of assets. Since then, things have seemed to calm down in the defi space.

    Unfortunately, the lack of any earthshaking security breaches in the past few months should not be misinterpreted as a sign of great improvement in terms of safety. I think the defi space remains highly vulnerable to critical security lapses that could spell disaster for protocols.

    It is essential to be aware of these overlooked but significant risk factors that can cause major pitfalls in the protocol if not appropriately addressed. Let’s examine some of the main underlying causes of potential security breaches.

    Key mistakes in attitude that protocols should watch out for 

    Security breaches are still very common in defi protocols, even if they don’t always make the headlines. A lot of the time, these breaches are a result of common mistakes made by the concerned people unknowingly. There are two major examples of such mistakes that can lead to security vulnerabilities.

    The first is not monitoring the reports about potential exploits or vulnerabilities in forked defi protocols, which can have severe consequences for the project and its users. Suppose the issues within a newly made fork are not identified and addressed. In that case, malicious actors may take advantage of it to compromise the protocol’s security, leading to financial losses and high-level system manipulation.

    Moreover, forked defi protocols are often interconnected with other projects in the ecosystem, which increases the significance of the potential issues to a greater extent. Forking is encouraged, but it can turn out to be a massive problem if the developers do not integrate security updates properly.

    The second big mistake stems from the fact that defi projects are often under immense pressure to be launched quickly in the market. In the spirit of this field’s frenetic pace, developers often tend to compromise on planning quality and extensive security tests. As a result, the protocols developed are susceptible to a wide range of security threats, such as zero-day vulnerabilities.

    A zero-day vulnerability can occur when the underlying software has a flaw that has not yet been discovered by the vendor. In such a case, an attacker can easily manipulate the system and take full advantage of the vulnerabilities present in it even before any defense mechanisms can be implemented.

    The missing link: Specialized expertise in defi development

    Despite the various concerns the TradFi sector faces, it does enjoy one pivotal advantage, specifically, the presence of a large pool of experienced and skilled professionals who are well-versed in this industry’s nuances. By comparison, the absence of such specialized expertise in defi is one of the most significant issues that exacerbate the security concerns for this space.

    I’ve observed on multiple occasions that defi protocols tend to lack the guidance of product owners who are well-versed in both the intricacies of the crypto market and the nuances of finance and economics.

    Most project teams tend to fall into one of two camps. The first comprises people who came from the TradFi scene and are struggling to adjust to the pace of the defi market and apply it to their development practices. This can, at times, result in one of two undesirable outcomes. Either the development is rushed, and the end product gets released half-baked and full of potential vulnerabilities, or it takes too long, and the product misses the opportunity to claim its portion of the market.

    Conversely, we have people who have only ever operated exclusively in the crypto market. Because of this, they fail to understand the importance of various elements that could be covered with TradFi’s background and knowledge base. This often leads to inadequate security practices when it comes to things other than smart contract audits and code quality. Vulnerabilities that have to do with market and economic risks are left unaccounted for.

    The defi space depends on a well-structured tokenomics model; to create that, the developers would need a thorough understanding of economics. Inexperienced developers may create ineffective token systems, leading to issues such as inflation, deflation, or an imbalance in user economic incentives.

    In light of this, the defi sector requires a balanced group of specialists who need to know how to select reliable oracles, understand the liquidity management challenges, deal with interoperability with other blockchain platforms, and be cognizant of building intuitive and user-friendly interfaces to attract and retain users.

    Preparing for the future: Security amidst centralization concerns

    It is an undeniable fact that the defi landscape has been evolving rapidly, and there are considerable prospects for the entire ecosystem. However, the pressing security concerns cannot be ignored, especially when there are many instances of large-scale financial losses.

    Ever since the inception of defi, there have been concerns about the whole ecosystem becoming an indirect counterpart to TradFi. Even though decentralization is an attractive concept, achieving it has had its own share of challenges. To avoid falling down the same security pitfalls defi protocols have recently begun introducing various caps and limits on certain activities that users can perform.

    It might be seen as restrictive and an act of strengthening centralized control, but these measures make quite a bit of sense when there are grave security concerns to deal with. As the industry matures, these measures become essential to instill confidence among the newcomers to this sector, who often include conservative investors and traders from the TradFi scene.

    In my opinion, having robust security practices sets the foundation for a well-structured defi ecosystem that can enjoy the trust of its users. Frequent protocol launches and increasing market concentration would not be effective unless the security aspects are taken care of. The industry needs to concentrate on building a reliable system and concentrate on the various security threats that have been wreaking havoc in the development of this space.

    Kate Kurbanova

    Kate Kurbanova is a co-founder of Apostro, a risk management firm focused on economic attacks. She is a professional who leverages established traditional financial practices to enhance defi risk management. Kate’s expertise extends to data analysis, evaluating risk management strategies, and analyzing economic vulnerabilities in web3.


    Follow Us on Google News

    [ad_2]

    Guest Post

    Source link

  • Electric Capital co-founder warns scammers impersonate VC firms, ask money before investing

    Electric Capital co-founder warns scammers impersonate VC firms, ask money before investing

    [ad_1]

    Electric Capital Co-Founder Avichal Garg warned the crypto community about a new method fraudsters are using to steal money from investors.

    Scammers have started pretending to be venture capital firms in a bid to lure crypto startups to believe they’re talking to legit investors.

    In an X post on Nov. 28, 2023 Electric Capital Co-Founder Avichal Garg said fraudsters are now setting up meetings, and “asking people to send them money before investing.” The Electric Capital head emphasized that the Palo Alto-headquartered firm “will never ask you to send money before receiving an investment.”

    “We will never reach out cold via Telegram. We almost always go through a mutual friend if we need to reach you.”

    Avichal Garg

    According to Garg, scammers are offering crypto entrepreneurs to become a liquidity provider into an “Electric” fund and ask money to be eligible to become a member of the fund.

    He added the firm only makes contacts with emails from its official website and is currently working with Google to get verified email domain. According to the Electric Capital Co-Founder, the latest scheme is a social engineering attack, so there will “always be an angle the scammers will try to take.”

    Garg’s warning comes shortly after scammers managed to get control over an X account for Code4arena. In an effort to defraud users, scammers have published a post announcing an airdrop of ARENA tokens endorsed by Paradigm, a San Francisco-based crypto venture capital investment firm.


    Follow Us on Google News

    [ad_2]

    Denis Omelchenko

    Source link

  • Sen. Elizabeth Warren highlights risks of crypto scams targeting senior investors

    Sen. Elizabeth Warren highlights risks of crypto scams targeting senior investors

    [ad_1]

    Senator Elizabeth Warren’s proposed Digital Asset Anti-Money Laundering Act, aimed at combating crypto-related scams, ignites a complex debate over the balance between regulation and innovation in the digital finance arena.

    In a Nov. 16 hearing, Senator Elizabeth Warren (D-Mass) voiced concerns about cryptocurrency’s role in financial scams, particularly those targeting older investors. Warren’s criticisms align with the introduction of her Digital Asset Anti-Money Laundering Act bill, aimed at curbing such fraudulent activities.

    During the hearing, Steve Weisman, a senior lecturer at Bentley University, highlighted the anonymity afforded by cryptocurrencies as a significant factor in their use for illicit activities. He noted that while crypto mixers, which obscure the source of funds, can serve legitimate privacy needs, they predominantly facilitate criminal endeavors.

    This complexity was evident in the ransomware attack against Colonial Pipeline, where despite initial success in tracing the accounts, the involvement of mixers hindered further tracking.

    Warren’s legislation proposes to enhance the ability of regulators to monitor suspicious crypto-related activities and take decisive action against scammers. The senator emphasized the urgency of implementing regulations to combat the proliferation of crypto crimes.

    However, the bill and its motivations have faced criticism, particularly following a Wall Street Journal report on Hamas’s alleged use of cryptocurrency for financing operations in Israel.

    The report, partially refuted and corrected for overstatements, has been cited by the crypto industry as an example of misrepresenting the role of digital currencies in illicit finance. Industry leaders argue that the inherent traceability of cryptocurrencies actually deters their use by criminals.

    Yaya Fanusie, from the Crypto Council for Innovation, criticized the bill for applying traditional financial regulations to the defi sector, which he considers inappropriate and overly broad. Additionally, a group of digital asset industry professionals with national security backgrounds expressed concerns that the legislation, fueled by exaggerated reports, might adversely affect U.S. national security interests.


    Follow Us on Google News

    [ad_2]

    Bralon Hill

    Source link

  • Hacker exploits defi protocol TheStandard.io for $264k

    Hacker exploits defi protocol TheStandard.io for $264k

    [ad_1]

    TheStandard.io suffers a $264,000 theft via a PAXG liquidity pool exploit on Arbitrum.

    Defi stablecoin protocol TheStandard.io has been hacked for $264,000, according to reports from blockchain security analysts CertiK. The hacker allegedly conducted a low liquidity exploit of PAXG on Arbitrum. 

    A low liquidity exploit is a type of attack where a threat actor takes advantage of pools with low liquidity to manipulate asset prices for financial gain. In this case, the hacker exploited the PAXG liquidity pools to steal 8,500 USDC and 280,000 Euro. Following the attack, nearly €223,000 was used by the hacker to mint an Algebra position NFT. 

    TheStandard.io released a statement affirming to customers that all collateral in the smart vaults was safe. The platform also paused all new EUROs minting until the exploit is patched. The platform has also requested the attacker to come forward as a white hat and negotiate a deal. 

    Recently, cybercriminals have been increasingly targeting small defi and crypto projects for quick gains. In October alone, crypto scams and hacks have cost users over $32 million. TheStandard.io is actively investigating today’s exploit and also suspended the creation of any new vaults on the platform. 


    Follow Us on Google News

    [ad_2]

    Mohammad Shahidullah

    Source link

  • Ledger Wallet Users Lose Nearly $800,000 To Fake App On Microsoft’s App Store | Bitcoinist.com

    Ledger Wallet Users Lose Nearly $800,000 To Fake App On Microsoft’s App Store | Bitcoinist.com

    [ad_1]

    According to on-chain sleuth ZachXBT, around $800,000 in crypto assets has been carted away from users who installed a fake Ledger Live application on Microsoft’s app store.

    Ledger Live Users Lose $600,000 In Bitcoin: Report

    In a November 5 post on the X (formerly Twitter) platform, ZachXBT raised an alarm on the suspicious application, “Ledger Live Web3”, which is conning users into thinking they are installing the original “Ledger Live” app. The original Ledger Live is a user interface app that allows hardware wallet users to store their crypto assets offline.

    According to on-chain data, roughly 16,800 BTC (worth approximately $588,000) has been received by the exploiter across 38 different transactions using the wallet address “bc1q…y64q”. The first set of funds (an estimated total of $87,600) were transferred to the scammer’s address on October 24, 2023.

    As of this writing, only about $115,760 – across two transactions – has been moved out of the scammer’s wallet address. Meanwhile, the current balance of the address still stands at more than 13.5 BTC (worth roughly $476,012).

    In a follow-up post on X, ZachXBT revealed that the scammer also used an ETH/BSC address to receive funds from the fake Ledger app. Based on the update, the exploiter has collected approximately $180,000 using this address, bringing their total loot to $768,000.

    The on-chain investigator also noted that Microsoft may have finally removed the fake Ledger Live app from their app store. Meanwhile, the fake app’s dedicated page on Microsoft’s official website is no longer accessible.

    It is worth noting that this is not the first time that a fake Ledger Live app has made its way into Microsoft’s app store. Ledger’s support account on X has had to warn its users about a fake app on two separate occasions in the space of a year.

    October Saw A Notable Decline In Crypto Scams

    In the month of October, the crypto space experienced a significant downturn in terms of theft, hitting its lowest point of 2023. According to CertiK’s findings, a total of 38 incidents, including from hacks, exploits, and scams, contributed to losses amounting to $32.2 million.

    When considering the 10-month total of $1.4 billion, the losses incurred in October appear notably smaller, accounting for approximately a quarter of the running monthly average. While this decline in security incidents is a positive development, users are still cautioned about the existence of security threats even in the most unexpected places, as shown in this Ledger case.

    As digital assets continue to flourish, this harsh reality serves as a stark reminder of the need for vigilant cybersecurity measures to safeguard the investments of crypto enthusiasts worldwide.

    Bitcoin price breaks above $35,000 again on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, chart from TradingView

    [ad_2]

    Opeyemi Sule

    Source link

  • Crypto Halloween Nightmare: MEME, MEMEPAD, And TITANX Tokens Collapse, Traders Lose 100%

    Crypto Halloween Nightmare: MEME, MEMEPAD, And TITANX Tokens Collapse, Traders Lose 100%

    [ad_1]

    In a chilling development on Halloween Day, the crypto community was hit with disturbing news as PeckShield, a renowned blockchain security company, revealed a series of rug pulls over the past few hours.

    Rug pulls, a form of cryptocurrency scam, involve sudden and deliberate value drops in specific tokens, accompanied by the perpetrators swapping the native tokens for Ethereum (ETH). The meme coins affected by the rug pulls were identified as MEME, MEMEPAD, and TITANX.

    Multiple Rug Pulls Shake Crypto Market On Halloween

    According to PeckShield’s X (formerly Twitter) post, the MEME token on the Ethereum blockchain experienced a jaw-dropping 100% drop in value. The address 0xBd72…5871 was responsible for swapping a staggering 4,854,740,126,240,000 MEME tokens for approximately 43.68 ETH. 

    It is important to note that the rug pull token shared the same name as the legitimate MEME token, adding to the confusion.

    Similarly, the MEMEPAD token on Ethereum suffered an identical 100% value drop. The address 0xBd72…5871 conducted a swap of 4,854,740,126,240,000 MEMEPAD tokens for around 44.84 ETH. 

    MEMEPAD’s rug pull. Source: MEMEPAD on TradingView.com

    Once again, the fraudulent crypto rug pull shared the same name as the genuine MEMEPAD token, compounding the deceitful nature of the scam.

    Additionally, the TITANX token launched two days ago, October 28, on Ethereum experienced a staggering 100% value decline. 

    The address 0xBd72…5871 executed a swap of 4,854,740,126,240,000 TITANX tokens for approximately 46 ETH. Mirroring the previous instances, the rug pull token masqueraded under the same name as the legitimate TITANX crypto token.

    Fantom Foundation Funds Vanish

    In alarming events, the Fantom (FTM) Foundation finds itself entangled in a harrowing tale of fund drains and swift token swaps. PeckShield has reported two significant incidents involving the Fantom Foundation’s finances, leaving the organization with substantial losses.

    The first incident occurred on October 17, 2023, when wallets associated with the Fantom Foundation were drained of approximately $7 million worth of cryptocurrencies, equivalent to around 4,500 ETH.

    Additionally, on October 26, the Fantom Foundation faced another devastating event. An unidentified entity, the “Fantom Foundation Drainer,” executed a bold move by swapping a staggering 8,087,377.97 DAI for 4,560.52 ETH. 

    The gravity of the situation intensified when the Fantom Foundation Drainer swiftly executed another swap on October 30, converting the 4,560.52 ETH back into approximately 8.3 million DAI within a mere 30 minutes. 

    The Fantom Foundation is now faced with the daunting task of investigating the breaches, identifying the culprits, and fortifying its security infrastructure to prevent future incidents. 

    Crypto
    FTM’s token uptrend over the past 30 days on the daily chart. Source: FTMUSDT on TradingView.com

    Despite recent developments, the native token of the Fantom protocol, FTM, is trading at $0.2388, reflecting a 1% increase in the past 24 hours. 

    Notably, the token has experienced a substantial surge across various time frames. Presently, it has maintained an upward trend, with gains of over 6% and 30% in the seven-day and fourteen-day periods, respectively. 

    Over the year-to-date period, the token has recorded a 5% increase. These figures indicate the token’s positive performance and growth trajectory.

    Featured image from Shutterstock, chart from TradingView.com 

    [ad_2]

    Ronaldo Marquez

    Source link

  • Nigerian Crypto Twitter Up In Arms As Prominent Influencer Rug Pulls STIMMY Coin | Bitcoinist.com

    Nigerian Crypto Twitter Up In Arms As Prominent Influencer Rug Pulls STIMMY Coin | Bitcoinist.com

    [ad_1]

    Unfortunately, rug pulls have become synonymous with the crypto market as scammers see it as an opportunity to make quick cash. One such rug pulls has hit the Nigerian crypto X (formerly Twitter) community, where what is assumed to be one of the most trusted influencers rug-pulled a project that raised $300,000 in its presale.

    The Genesis Of Stimmy Coin (STIMMY)

    Surfing through the X (formerly Twitter) posts related to the Stimmy Coin, it looks to be that the coin was created as a parody of the stimulus checks received by United States residents during the COVID-19 lockdowns.

    The coin seemed to gain popularity quickly due to the founder being widely known in the Nigerian crypto community. The founder Feyi, whose X (formerly Twitter) account @feyi_x has over 84,000 followers, was able to get widespread popularity for the STIMMY project by organizing social media contests, and the likes.

    Interestingly, browsing posts of the founder revealed that he had always been a vocal critic of founders who rug-pulled or scammed investors, which is how he garnered such a loyal following. This following grew as he readied to launch his project.

    On the day of the presale, Feyi would go the unconventional route of asking investors to send ETH to a personal wallet address instead of using an established presale platform like Pinksale. From this point onward, the project seems to be doomed.

    After raising $300,000 in the presale, tokens were distributed to participants and STIMMY coin was listed on decentralized exchanges, which is where the cracks began to show. At first, there was less than half of the presale funds added to the liquidity pool, which meant participants were in losses right out the gate. Nevertheless, many kept the faith as they believed in Feyi.

    The next crack to show was that marketing for the STIMMY coin seemed to be nonexistent despite the founder holding around $150,000 in his personal wallet. The funds were never deployed for marketing and presalers were never once in profit. Not long after, Feyi disappeared from social media and began moving the spoils of his scam to Binance. However, this was not the end.

    Feyi And Developer Pull Liquidity Pool For STIMMY Crypto

    The STIMMY liquidity pool was initially locked for four months and even this gave investors a pause as it showed the founder of the cryptocurrency may be up to no good. Investors will eventually be proven right in their assumptions when the liquidity was unlocked on Friday, October 27.

    As soon as the unlock happened, the $85,000 in ETH left in the liquidity pool was promptly moved out and bounced through multiple wallets in what looks to be a strategy to conceal the funds, and apparently ended up on the KuCoin exchange.

    In true X fashion, users began their own investigations and figured out the developer behind the project who reportedly goes by the X handle @DevPanther999. The developer’s LinkedIn page has since been doxxed and is being circulated on social media already. The founder, Feyi, has also been doxxed with his images being circulated on social media by victims of the rug.

    By pulling the liquidity, the founder and team behind the STIMMY project have done a complete rug pull, leaving investors who were already sitting in losses holding completely worthless coins that they can no longer sell.

    The project comes as a warning of the dangers of investing in untested and unproven crypto founders. Additionally, it is also a big blow to a country (Nigeria) that has struggled to have projects from the region taken seriously on the global stage, further damaging an already fragile reputation.

    Total market cap at $1.23 trillion | Source: Crypto Total Market Cap on Tradingview.com

    Featured image from Cryptoknowmics, chart from Tradingview.com

    [ad_2]

    Scott Matherson

    Source link

  • The crypto dream is not dead. We hope the delusions are

    The crypto dream is not dead. We hope the delusions are

    [ad_1]

    Six months into the crypto meltdown that’s wiped $2 trillion off the market, people are still talking about the chances of a rebound–a “crypto spring” after yet another “winter.” What’s surprising is that the correction hasn’t been enough to inject more realism into the discussion. What the carnage actually reveals is that most blockchain-enabled crypto businesses need to be rethought and rebuilt from top to bottom.

    Hopefully, our world of speculators will one day be replaced by pragmatists, who can see the blockchain for what it is: a powerful new technology, but not the new internet.

    The blockchain has the potential to help shape the future and power progress and growth–just not in the way it’s typically deployed today. What we’ve witnessed is an industry that often talks of “freedom” and “autonomy”, but just as often tries to use that language to mislead the public. We’ve come across many founders looking to make a quick buck, instead of those willing to commit to the long, multi-year effort to build real value. We’ve seen people wielding a technology that’s casting around for applications, rather than those trying to solve a real and pressing problem.

    When the industry rebuilds, we will hopefully see more genuinely mission-driven blockchain entrepreneurs. In the meantime, it’s important to sift the dreams from the delusions.

    The trouble began when people started to talk up the potential of crypto to replace the world’s sovereign currencies, destroy the banks, and totally remove the need for corporate governance via distributed autonomous organizations. The industry was soon flush with money reliant on the success of cryptocurrencies–with many players creating conflicts of interest and artificially increasing the value of the businesses by buying up tokens.

    “Community” became one of the most used terms in crypto, but too often it’s a byword for pushing bad investments. We love real communities–but a pyramid scheme is not the same as a network effect. Too many crypto entrepreneurs have been incentivized to talk up, overinflate, and generally “pump and dump” various currencies. Rampant speculation became the biggest affliction.

    The current environment is based on token issuers getting rich on day one–equivalent to a startup founder selling a chunk of their company and pocketing it before anything has been built. If you move in crypto circles, you might well have encountered those who’ve cashed out and now loiter in self-satisfied cliques at conferences.

    To make it worse, regulators have been slow to act, which is in part why crypto has been so attractive. The sad result is that many people have been ruined by the crypto crash, and no one’s been there to protect them.

    The good news is that regulation is coming. Companies using blockchain technology need to focus on creating long-term value with the assumption that the normal laws and rules of finance will apply–from “Know Your Customer” to “Anti-Money-Laundering.” Anything that smells off probably is.

    Similarly, crypto businesses can’t sidestep the consequences for the climate of how their tokens are maintained with vast amounts of computing power. Any company that relies on some kind of blockchain can’t avoid talking about its environmental impact and building a responsible business model that takes it into account.

    The Ethereum blockchain’s recent switch from a “proof-of-work” process to validate transactions to a “proof-of-stake” one–which reduces its energy consumption by 99.9%–is a step in the right direction, and shows how crypto businesses are capable of reform.

    The blockchain can still have a bright future. Lots of us at Index were–and continue to be–intrigued by the technology. We see its possibilities as a medium of exchange (being able to transfer ownership between two people without a trusted third party) and a store of value. There is potential in things like open identity verified by cryptography, the secure transfer of digital assets, the possibility of a verified and transparent record of transactions, and institutional-grade solutions.

    In that spirit, we have and will continue to make investments in blockchain businesses–staying away from startups that make all of their money through short-term trading, gambling, or taking advantage of investors’ credulity. Instead, we’ll back companies that are building the rails for crypto, as well as those leveraging the technology to create better products and services.

    It may take a while before more businesses emerge in these areas, but they’re likely to share a few common characteristics. They will offer products and services to a broad set of businesses and consumers, not just crypto natives; they will provide a clear benefit to users, and solve a real pain point; and they will apply blockchain across every sector, rather than creating a sector of their own.

    Fundamentally, we’re agnostic about the choice of technology that sits behind a business. What we care about is what someone is doing with that infrastructure. Once some of crypto’s most intriguing use cases become established, nobody will worry whether they’re blockchain-powered or not. In our view, cryptography is simply an interesting type of technology that can do certain things better–not something that’s going to fundamentally alter the mechanics of our economy and society.

    Let’s hope that the present crypto crunch will have a salutary effect in clearing out the many businesses that lack the necessary vision and conviction. There is no doubt that hugely important and influential companies will be built on the back of the blockchain. They just won’t look like most of the businesses kicking around today.

    In the meantime, we’ll be cheering on those truly revolutionary founders who want to grab this technology and build something amazing with it.

    Danny Rimer is a partner at Index Ventures, a venture capital firm with offices and investments in the U.S., Europe, and Israel.

    The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

    More must-read commentary published by Fortune:

    Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

    [ad_2]

    Danny Rimer

    Source link