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Cryptocurrency analytics firm Chainalysis said on Thursday that it helped the US government seize $30 million worth of digital coins that North Korean-backed hackers stole earlier this year from the developer of the non-fungible token-based game Axie Infinite.

The seizures "demonstrate that it is becoming more difficult for bad actors to successfully cash out their ill-gotten crypto gains, Erin Plante, senior director of investigations atChainalysis, wrote. We have proven that with the right blockchain analysis tools, world-class investigators and compliance professionals can collaborate to stop even the most sophisticated hackers and launderers.

The FBI attributed the theft to Lazarus, the name used to track a hacking group backed by and working on behalf of the North Korean government. According to Axie Infinity developer Sky Mavis, the hackers pulled off the transfers after gaining access to five of nine private keys held by transaction validators for the Ronin Networks cross-bridge, a dedicated blockchain for the game.

The hackers then initiated an elaborate laundering process that involved transferring funds to more than 12,000 different currency addresses in an attempt to obfuscate the stolen coins' movement.

In Thursdays post, Plante wrote:

North Koreas typical DeFi laundering technique has roughly five stages:

Chainalysis

Plante continued:

Since then, Lazarus Group has moved away from the popular Ethereum mixer, instead leveraging DeFi services to chain hop, or switch between several different kinds of cryptocurrencies in a single transaction. Bridges serve an important function to move digital assets between chains and most usage of these platforms is completely legitimate. Lazarus appears to be using bridges in an attempt to obscure source of funds. With Chainalysis tools these cross chain funds movements are easily traced.

We can use Chainalysis Storyline to see an example of how Lazarus Group utilized chain-hopping to launder some of the funds stolen from Axie Infinity:

Chainalysis

Above, we see that the hacker bridged ETH from the Ethereum blockchain to the BNB chain and then swapped that ETH for USDD, which was then bridged to the BitTorrent chain. Lazarus Group carried out hundreds of similar transactions across several blockchains to launder the funds they stole from Axie Infinity, in addition to the more conventional Tornado Cash-based laundering we covered above.

On Twitter, Ronin Networks said, It will take some time for these funds to be returned to the Treasury. Plante said that much of the stolen funds remains in wallets under the hackers control. We look forward to continuing to work with the cryptocurrency ecosystem to prevent them and other illicit actors from cashing out their funds.

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Feds claw back $30 million of cryptocurrency stolen by North Korean ...

Hackers have stolen more than $3 billion in cryptocurrency so far this year, shattering the previous record of $2.1 billion set in 2021, according to blockchain analytics firm Chainalysis.

A big chunk of that $3 billion, around $718 million, was taken this month in 11 different hacks, Chainalysis said in a series of tweets posted Wednesday.

"October is now the biggest month in the biggest year ever for hacking activity, with more than half the month still to go," the company tweeted.

In past years, hackers focused their efforts on attacking crypto exchanges, but those companies have since strengthened their security, Chainalysis said. These days, cybercriminals are targeting "cross-chain bridges," which allow investors to transfer digital assets and data among different blockchains.

The bridges hold a lot of cryptocurrencies, providing a larger and more complex arena for hackers to infiltrate, according to cybersecurity experts.

"Cross-chain bridges remain a major target for hackers, with three bridges breached this month and nearly $600 million stolen, accounting for 82% of losses this month and 64% of losses all year," Chainalysis said.

Hackers initially made of with$570 million in cryptocurrency from Binance, but company officials have minimized the losses to under $100 million, its CEO said last week. Hackers also struck Nomad in August, reportedly taking nearly $200 million. Both the Binance and Nomad attackswere instances of hackers exploiting security flaws within the cross-chain bridge transaction protocols.

Crypto.com, known for its recent $700 million deal torename the former Staples Centerin Los Angeles, said in January that hackers managed to bypass its two-factor authentication system and withdraw funds from 483 customer accounts. Harmony lost about $100 million in ahack in June.Crypto platforms WormholeandRoninNetwork were also targets of hackers this year.

All told, Chainalysis said there have been 125 hacks so far this year.

Binance CEO Changpeng Zhaosaidin an interview with CNBC last week that the crypto industry is vulnerable to hackers whenever customers move assets from one blockchain to another, but the goal is to learn from what caused the hack and develop extra safeguards in the future.

Cryptocurrency is not federally regulated or FDIC insured like a bank account, which means if an account gets hacked, the government will not work to restore a customer's funds.

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Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.

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Hackers have stolen record $3 billion in cryptocurrency this year - CBS News

Bitcoin, launched in 2009, is generally considered the first cryptocurrency. The whitepaper by its creator/s Satoshi Nakamoto focuses largely on Bitcoins use as electronic cash, with no interference from intermediaries like banks. Later entrants, including Ether and Tether, are also classified as cryptocurrencies. However, these can be very different from Bitcoin with respect to the release of new tokens and the intended utility.

Ether or ETH is about the payment of the gas fee within Ethereums ecosystem, which allows developers to create new decentralised and distributed ledger-based applications. Tether, on the other hand, is not a typical cryptocurrency, but it is a stablecoin. This makes it different with respect to the launch of new Tether tokens. On Bitcoin and Ethereums blockchains, new BTC and ETH tokens, are mined. Mining is a specialised process that involves hashing through the use of sophisticated computing. Today, let us explore the subject of the release of new Tether tokens and if mining has any role to play in it.

Tether, as mentioned earlier, is a stablecoin, which by definition, means a coin with a stable value at all times. Tether is pegged to the most dominant fiat currency in the world -- the US dollar. One Tether token, often called USDT, must always be valued at US$1, otherwise, the entire scheme of things would not make any sense. Typical cryptocurrency tokens like BTC (Bitcoin), however, are exposed to value appreciation or depreciation, largely depending on demand and supply forces. For Tether to maintain stability in its per token price, mining is out of the picture.

A Tether token is not the outcome of any computational work on a blockchain but of reserves maintained by those handling the stablecoins operations. For example, for every 10 Tether tokens issued in the market, first there should be US$10 maintained through holdings like currency reserves and corporate bonds. Every single USDT must be backed by reserves, otherwise there is a chance of disruption in USDT-to-fiat-currency conversion. Adequate reserves are at the heart of the release of Tether tokens, unlike in BTCs case where the total supply is capped at 21 million BTC tokens and the value is subject to variations.

Data provided byCoinMarketCap.com

Tether operates on multiple blockchains, including those of Ethereum and Polygon. ETH, which exists only on Ethereum, can be mined by partaking in the transaction validation process. This is not possible in the case of Tethers USDT tokens, simply because Tether has no independent blockchain like Bitcoin and Ethereum, which means there is no place to become a node operator and carry out the sophisticated mining process.

Tether tokens are claimed to be a product of reserves maintained to back them. Does Tether have adequate reserves to back the presently circulating tokens -- over US$68 billion as of writing -- is a separate subject of discussion. Mining is not possible because neither a standalone blockchain exists, nor the intended utility of Tether is the same as that of typical cryptocurrencies like Bitcoin.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.

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Can Tether cryptocurrency be mined? - Kalkine Media

A cryptocurrency firm that employs the former chancellor Philip Hammond as an adviser has withdrawn its application to operate in the UK, after struggling to win approval from the financial regulator.

The Guardian revealed earlier this year that Copper Technologies, in which Hammond holds a 0.5% stake, was considering seeking registration in Switzerland rather than the UK.

The company had been given temporary registration by the Financial Conduct Authority (FCA), pending approval of the controls it had put in place to prevent money laundering and terrorist financing.

Fintech company Revolut, which had also been placed on the FCAs temporary list, was awarded full registration for its UK crypto business last month.

But Copper Technologies has revealed, in accounts filed at Companies House, that it had withdrawn its application and moved UK customers to Switzerland, after winning approval there.

Hammond, who was chancellor between July 2016 and July 2019, has been critical of the UK for failing to set up a comprehensive regulatory framework governing cryptocurrencies.

Earlier this year he said it was frankly quite shocking that Britain was lagging behind other countries.

The FCAs regime for digital assets currently covers money laundering and terrorist financing but not specific aspects of cryptocurrency trading and investing.

Hammond, recruited by Copper Technologies as a senior adviser in 2021, has growth shares that were thought to be worth up to $15m (13m), based on reports by Bloomberg that the company was seeking a valuation of $3bn in a fundraising exercise.

The accounts show that Copper Technologies has raised $196m so far but the ultimate success of the fundraising and thus the valuation could be affected by a broad global sell-off of digital assets over the past year.

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In the meantime, losses at Copper, which provides digital currency infrastructure to other businesses, have increased from 3.6m to 14.3m, accounts show.

A spokesperson for the company said: Copper maintains open and active dialogue with regulators across the jurisdictions where we are operating, including of course with the FCA. Since gaining our membership to [Swiss body] VQF in May, we are pleased to be able to offer clients services from Switzerland.

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Cryptocurrency firm advised by Philip Hammond withdraws UK application - The Guardian

LAS VEGAS--(BUSINESS WIRE)--BitNile Holdings, Inc. (NYSE American: NILE), a diversified holding company (BitNile or the Company), announced today that its subsidiary, BitNile, Inc. (BNI), has begun development of a Bitcoin-based marketplace platform (Marketplace), which expects to leverage blockchain and other emerging technologies. BNI believes that the Marketplace will reduce the complexity of transacting in Bitcoin and result in lower transaction fees than traditional e-commerce. The Marketplace, planned for release in the first half of 2023, will be a multi-vendor e-commerce platform supporting a wide array of business sectors, including retail, real estate, commodities, and other consumer-driven offerings.

With its planned advanced buyer and seller functionality, third-party integrations, and enhanced security through a comprehensive buyer and seller pre-verification program, the Marketplace intends to provide a flexible, functional, and broad e-commerce experience to its users. The Company intends for the Marketplace to be a super-app, widely considered as a mobile or web application that can provide multiple services, including payment and financial transaction processing. The Marketplace will be accessible through all modern web browsers and is expected to include native iOS and Android mobile applications that will be available for download on the Apple and Google Play Stores.

BNI has appointed veteran developer Douglas Gintz as its President and Chief Product Officer to lead the effort. Mr. Gintz is a strategist, programmer, and marketer with broad experience delivering technology and content solutions to a wide audience for over 30 years. Specializing in emerging technologies, Mr. Gintz has developed e-commerce applications, DNA reporting engines, medical billing software, and manufacturing compliance systems for companies ranging from startups to multinational corporations.

Milton Todd Ault, III, the Companys Executive Chairman, stated, Our plan is to build an innovative Bitcoin-focused e-commerce platform that combines our experience in the cryptocurrency sector with our long-term philosophy of investing in disruptive technologies with a global impact. We believe the prospect of powering e-commerce with Bitcoin is a huge opportunity. The global business-to-consumer e-commerce market reached a value of $4.1 trillion in 2021, according to IMARC Group, and Pew Research Center reported that roughly three-in-ten Americans aged 18 to 29 say they have invested in, traded or used a cryptocurrency. Our goal is to deliver an innovative marketplace leveraging blockchain and other innovative technologies. We are pleased to have Douglas on our team to lead this effort.

Im excited to be leading an experienced team in reinventing what it means to transact in crypto, said Douglas Gintz, President and Chief Product Officer of BNI. Recently, online stores began adding crypto payment solutions to their checkout processes in response to demand, but thats not enough. Building a platform from the ground up allows us to deliver more innovative, secure, and seamless user experiences beyond just payments.

For more information on BitNile and its subsidiaries, BitNile recommends that stockholders, investors, and any other interested parties read BitNiles public filings and press releases available under the Investor Relations section at http://www.BitNile.com or available at http://www.sec.gov.

About BitNile Holdings, Inc.

BitNile Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, BitNile owns and operates a data center at which it mines Bitcoin and provides mission-critical products that support a diverse range of industries, including oil exploration, defense/aerospace, industrial, automotive, medical/biopharma, karaoke audio equipment, hotel operations and textiles. In addition, BitNile extends credit to select entrepreneurial businesses through a licensed lending subsidiary. BitNiles headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; http://www.BitNile.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as believes, plans, anticipates, projects, estimates, expects, intends, strategy, future, opportunity, may, will, should, could, potential, or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Companys business and financial results are included in the Companys filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Companys Forms 10-K, 10-Q and 8-K. All filings are available at http://www.sec.gov and on the Companys website at http://www.BitNile.com.

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BitNile, Inc. to Launch Innovative Bitcoin Marketplace Platform Intended to Reimagine Cryptocurrency Transactions - Business Wire

Partnership Opens up Ability for Businesses to Accept and Get Paid in up to 15 Different Cryptocurrencies

BOSTON, Oct. 13, 2022 /PRNewswire/ -- BlueSnap, a global payment orchestration platform of choice for leading B2B and B2C businesses, today announced a new partnership with BitPay, the world's largest provider of Bitcoin and cryptocurrency payment services. This product partnership will give businesses the ability to accept and get paid out in up to 15 different cryptocurrencies and seven fiat currencies globally, and supports BlueSnap's mission to help businesses across the globe increase their revenue and reduce costs.

"As many as 85 percent of major retailers already accept some form of crypto payment, and even small businesses are picking up on the trend with one-third of SMBs beginning to accept crypto. Together, BitPay and BlueSnap will bring this popular payment method to more businesses and consumers globally," said Merrick Theobald, Vice President of Marketing at BitPay. "We are proud to work with BlueSnap on this partnership, especially as more businesses adopt this growing trend of accepting cryptocurrencies as payment for products and services."

As a result of this partnership, businesses will be able to accept and get paid out in leading cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), ApeCoin (APE), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC), Shiba Inu (SHIB), Wrapped Bitcoin (WBTC), Ripple (XRP), as well as 5 USD-pegged stable coins (BUSD, DAI, GUSD, USDC, and USDP) and 1 EURO-pegged stable coin (EUROC). Because crypto protocols are global by default, the addition of cryptocurrency acceptance and payout will help BlueSnap's customers conduct business with key stakeholders around the world more seamlessly. Businesses who accept crypto payments also benefit from lower processing costs, access to a new customer base and no chargebacks. The partnership will also allow customers to accept crypto and be paid out in fiat currencies including USD, EURO, GBP, PESO, CAD, AUD, NZD.

"We are excited to partner with BitPay, one of the most well-respected crypto companies in the industry," said Ralph Dangelmaier, CEO of BlueSnap. "Our work together further supports BlueSnap's strategic growth, and we are eager to make an impact in this new space. We look forward to driving further payments innovation through growing technologies like blockchain and cryptocurrency."

To learn more about BlueSnap and how to set your business up to accept and get paid out in cryptocurrency, please visit https://bit.ly/3LYpzy9.

About BlueSnap

BlueSnap helps businesses accept global payments a better way. Our Payment Orchestration Platform is designed to increase sales and reduce costs for all businesses accepting payments. BlueSnap supports payments across all geographies through multiple sales channels such as online and mobile sales, marketplaces, subscriptions, invoice payments and manual orders through a virtual terminal. And for businesses looking for embedded payments, we offer white-labeled payments for platforms with automated underwriting and onboarding that support marketplaces and split payments. With one integration and contract, businesses can sell in over 200 regions with access to local card acquiring in 47 countries, 100+ currencies and 100+ global payment types, including popular eWallets, automated accounts receivable, world-class fraud protection and chargeback management, built-in solutions for regulation and tax compliance, and unified global reporting to help businesses grow. BlueSnap is backed by world-class private equity investors, including Great Hill Partners and Parthenon Capital Partners. Learn more at BlueSnap.com.

About BitPay

Founded in 2011, BitPay is one of the oldest cryptocurrency companies. As a pioneer in blockchain payment processing, the company's mission is to transform how businesses and people send, receive, and store money. Its business solutions eliminate fraud chargebacks, reduce the cost of payment processing, and enable borderless payments in cryptocurrency, among other services. BitPay offers consumers a complete digital asset management solution that includes the BitPay Wallet and BitPay Prepaid Card, enabling them to turn digital assets into dollars for spending at tens of thousands of businesses. The company has offices in North America, Europe, and South America and has raised more than $70 million in funding from leading investment firms including Founders Fund, Index Ventures, Virgin Group, and Aquiline Technology Growth. For more information visit bitpay.com.

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BlueSnap Partners with BitPay to Offer Cryptocurrency Acceptance and Payout - PR Newswire

Remember late 2021 when cryptocurrencies were perceived as the future of global transactions. Since that peak a few months ago, cryptocurrency assets have declined a painfully staggering USD 2 trillion. With losses so monumental, a wave of crypto-related disputes in the form of international arbitration are imminent.

Cryptocurrency businesses have been known to include arbitration agreements in their contracts, which is unsurprising considering the harmonious nature of both cryptocurrency and international arbitration. As cryptocurrency identifies itself as a decentralized character, arbitration similarly enjoys the freedom of party autonomy that cannot be found before national courts.

This article seeks to provide a guide to the challenges and remedies that are bound to arise in cryptocurrency arbitrations as well as a look at the current Binance case.

VARIOUS FORMS OF CRYPTOCURRENCY DISPUTES

As with any subject matter, cryptocurrency disputes come in various forms, but as crypto is a novel sector, some disputes may raise novel legal issues. For instance, in the absence of a governing law clause, issues may arise as to what law governs the blockchain transactions. Expect to see some of the following forms of disputes:

The substantive underlying issues may be familiar to some, but the disputed factual issues may be outside of a partys scope. This is where industry experts come in handy. For instance, counsel may be unaware of how a decentralized finance platforms fake product identification system works. Engaging an industry expert to provide technical analysis of the disputed factual issues may go a long way in complimenting the legal reasoning.

THE BINANCE CASE

Binance is one of the leading crypto trading platforms with offices in France, Spain, Italy, and the UAE. On May 19, 2021, a power outage caused the platform to fail. This failure left users unable to exit their positions all whilst crypto prices were dipping in real-time. Hundreds of users/investors commenced arbitration against Binance, seeking relief for the millions they had lost as a direct result of the outage.

Whilst the dispute is being headed by White & Case, with a USD 5 million minimum in funding from Swiss private equity firm Liti Capital, the dispute is the first of its kind, but certainly not the last.

One of the main challenges currently arising from this dispute is the fact that Binance states they have no official headquarters and as such, it has been incredibly difficult for investors to figure out how, and where, to take the company to court.

Another challenge was identifying the correct counterparties. The Binance terms of use refer only to Binance Operators as being the parties that run Binance, without naming any incorporated legal persons, and conversely, including language to the effect that the identities of these operators are subject to change. This open-ended definition includes but is not limited to legal persons (including Binance UAB), unincorporated organizations and teams that provide Binance Services and are responsible for such services. When a dispute arises, it is the task of the claimant to identify the counterparties to the dispute depending on the specific services [Claimant] uses and the particular actions that affect rights or interests. This caused immense issues as arbitrating against the wrong party could result in the tribunal rejecting a claim, despite the validity of the claim.

CHALLENGE I: NATURE OF THE JURISDICTION

Several jurisdictions across the globe have taken steps to regulate cryptocurrency assets or even just outright ban them. In Qatar, a circular warned all banks operating in Qatar against trading in bitcoin. India and Russia are among the nations where bitcoin trading has been outright outlawed. Courts have been found to follow suit. In 2020, a court in Mainland China set aside an award regarding cryptocurrency on the grounds that it violated public policy.

All this being said, the seat of arbitration is a significant factor in cryptocurrency disputes. However, risks can be mitigated. For instance, based on the jurisdiction, parties may opt to request an award in damages quantified in a currency of equivalent value to the cryptocurrency in dispute. This may reduce the likelihood of the enforcement being denied.

CHALLENGE II: IDENTIFYING THE CORRECT PARTIES

As we saw in the Binance case, cryptocurrency businesses are sometimes organized in opaque ways which may it difficult to identify the correct counterparties to the arbitration agreement.

However, once the correct party(ies) have been identified an examination of their ability to satisfy the requirements of the award should be done. Several cryptocurrency businesses do not have the financial means to satisfy an award, due to the staggering decline of the market and arbitrating against a party on the brink of financial collapse may not be beneficial.

CHALLENGE III: VALUATIONS

Valuating cryptocurrency businesses may be a challenge due to the lack of comparable publicly listed companies with sufficient financial information to conduct a market-based valuation. Similarly, valuating the cryptocurrencies themselves may be straightforward but where the currency is illiquid, difficulties may arise.

Another issue with valuations is assessing the future prospects of crypto businesses, at their valuation date and identifying key driving factors. Again, this may seem straightforward, but problems are prosed when the valuation date falls within a period of significant market volatility, such as that seen during the winter of 2021.

As such, identifying the valuation data has a significant impact on the quantification of damages.

CHALLENGE IV: ARBITRAL AWARDS AND RELIEF

If an arbitral award is rendered in a partys favor, they still face the challenge of receiving their money. First, crypto assets and transactions take place on blockchain which makes it difficult to track down and even locate the amounts. Second, as previously discussed, some jurisdictions may reject enforcement of cryptocurrency-related disputes on the grounds of public policy or some other issue relating to the assets.

In addressing these challenges, parties and their counsel may utilize some of the following:

Mareva Injunction

A worldwide freezing order and asset disclosure order. It extends to all a defendants assets worldwide, limiting the defendant from utilizing those assets except for regulatory purposes (i.e., paying employment salaries) unless consent is granted by the plaintiff. It also requires the defendant to disclose its worldwide assets over a certain threshold value (i.e., over USD 10,000 or USD 50,000).

The Hong Kong High Court recently granted a Mareva injunction over bitcoins that had been fraudulently misappropriated freezing up to USD 2.6 million of the defendants assets (including any digital assets).

Norwich Orders

Injunctive orders obtained against an innocent third party in order to identify a wrongdoer or details related to a potential wrongdoer. This can be used to compel an innocent third party (such as a cryptocurrency exchange) to disclose relevant information to a plaintiff/applicant.

In digital asset disputes, these orders have been used to compel exchanges to disclose details related to crypto wallets and digital assets. The English High Court recently issued a Norwich order against two cryptocurrency exchanges outside of England compelling them to assist in identifying what had happened to the cryptocurrency in question.

Anton Piller Orders

A common law remedy which compels a defendant to permit a plaintiff to enter its property to search for and seize evidence and records (including electronic data and equipment). An Anton Piller order in a cryptocurrency dispute was recently issued by the Ontario Superior Court of Justice in relation to an alleged theft of CAD 15 million in digital assets from the plaintiffs crypto wallet.

CONCLUSION

Cryptocurrency and its arbitration are developing over time and it will be interesting to see the other challenges which will emerge over the coming months as tribunals around the world deal with cryptocurrency-related disputes.

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The Cryptocurrency Arbitration Handbook - Lexology

Cryptocurrency mixers, a software that provides anonymity in crypto transactions, are at the forefront of the latest clash between regulators and the emerging world of digital assets, with legal actions, arrests, counter lawsuits, and North Korean hackers all part of the picture.

The U.S. Treasurys Office of Foreign Assets Control (OFAC) slapped sanctions on the Tornado Cash cryptomixer in August. This is based on allegations that since its creation in 2019 the mixer has handled more than $7 billion of cryptocurrency, including from criminal organizations like the North Korean state-backed Lazarus Group.

Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks, said Treasury Under Secretary Brian E. Nelson in announcing the sanctions. Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them.

Sheila Warren, chief executive officer of the Crypto Council for Innovation, said the sanctions effectively a ban on U.S. citizens and businesses using the service set a precarious precedent and would have potentially very far-reaching implications.

This is a departure from the principle that code or technology itself has a fundamental neutrality that is benign, and it is what you do with it that is what turns it into something that can be malicious, she said at the Forkast live-streamed event, Crypto Rising: The Role of Law: An International Debate post Tornado Cash on October 5.

In addition to sanctioning specific wallets, all assets held in Tornado Cash were frozen, triggering a backlash from many in the crypto community and a lawsuit against the Treasury. The case filed by six Tornado Cash users and backed by cryptocurrency exchange firm Coinbase Global, Inc may set important precedents for U.S. regulators.

Privacy vs. Security

Advocates of crypto mixers argue they are key to privacy on the blockchain because they obscure the history and origin of digital assets. When the mixer receives cryptocurrency, it pools it together with assets from other users, mixes them together, and returns the same amount of funds, less a fee, into a new wallet that the user can access with a special digital key though the details of how Tornado Cash works differ slightly.

The ability to move cryptocurrency into a wallet that has never been used or associated with the user ensures more privacy. Though cryptocurrency is often considered anonymous, it is pseudonymous, with every transaction traceable to a public cryptocurrency wallet address.

A wallet can become associated with the users actual identity the more it is used in transactions with traditional finance. For example, once a wallet is added to a third-party exchange, the users wallet and bank account can be linked.

While the absence of crypto mixers would have a negligible effect on legal cryptocurrency activity, they present a dilemma to regulators and members of the cryptocurrency community, according to legal and blockchain experts.

Virtually everyone would acknowledge that privacy is valuable, and that in a vacuum, theres no reason services like mixers shouldnt be able to provide it, however, this needs to be balanced with the fact that 25% of mixed funds come from illicit addresses, Andrew Fierman, head of Sanctions Strategy at U.S. blockchain analysis firm Chainalysis, told Forkast in an email.

A sizable amount of the more than $7.6 billion worth of Ether crypto that Tornado Cash has received since starting up in August 2019 has come from illicit or high-risk sources, including $455 million from hacks by the Lazarus Group, according to Chainalysis data.

In the first half of 2022, crypto addresses tied to illicit activity transferred nearly 10% of their funds to cryptocurrency mixers like Tornado Cash, Chainalysis data shows, which didnt provide a dollar figure.

Given the data, Fierman said, we may see this trend continue and for OFAC to designate other mixing services used by cybercriminal groups.

However, on the privacy and safety side of the argument, Ethereum cofounder Vitalik Buterin has said he used Tornado Cash to donate to Ukraine following the invasion by Russia, stating the service allowed him to do so without disclosing the identities of recipients.

Sanctioning code?

Christopher Goes, the cofounder of Anoma, a privacy-centric blockchain protocol, told Forkast via email that hes skeptical of how effective sanctioning Tornado Cash would be, as it is not targeted or specific enough to shut down particular parties.

He argues it is easy to copy and rename protocols, diluting efforts to crack down on money laundering, while freezing the assets of individuals for using a service that was legal when they first engaged with it.

While I can see how this goal makes sense within a certain U.S. foreign policy rationale, I am not sure that sanctioning Tornado Cash will actually accomplish it, or help, he said, adding that he does not believe Tornado Cash is technically a crypto mixer.

This is an unfortunate misconception, he said, when users use Tornado Cash, their funds are kept separate, not mixed with one another. There are some custodial Bitcoin mixers, which do mix funds but which do not provide privacy, and those are probably regulated under money transmitter laws.

At its core, Tornado Cash is just code running on various open public blockchains like Ethereum, making it a complex entity to regulate. The code was publicly available for anyone to use on the open-source software hosting service GitHub.

The code was then removed from GitHub on concern that even hosting the software was in breach of the Treasury sanctions.

Tornado Cash advocates pushed back, arguing the OFAC did not have the Congressional authority to sanction code, which they argued is an expression of freedom of speech, as established in 1996 in the Bernstein v. U.S. Dept of State case.

Digital Rights advocacy group the Electronic Frontier Foundation said in a blog post: the disappearance of this source code from GitHub after the government action raised the specter of government action chilling the publication of this code.

Peter Van Valkenburgh the research director at Coin Center, a non-profit on public policy and cryptocurrencies weighed in, saying the Tornado Cash ban is unconstitutional.

OFAC has since walked back slightly, saying that U.S. persons would not be prohibited by U.S. sanctions regulations from copying the open-source code and making it available online for others to view. The code is now back on GitHub, though in a read-only form.

Ethereum Core developer Preston Vanloon, tweeted about the reversal, saying, that is progress from an outright ban. I still encourage GitHub to reverse all actions and return the repositories to their former status.

Arrested

Another casualty is 29-year-old developer Alexey Pertsev who was arrested in Amsterdam on August 10 by the Netherlands Fiscal Information and Investigation Service (FIOD) for his alleged involvement in the Tornado Cash protocol.

Accused of facilitating money laundering through the mixer, Pertsev was ordered to be held an 90 days in prison on August 25, though he has not been charged with any crime.

Six individuals who said they have funds trapped in Tornado Cash filed a lawsuit on Aug. 8 against the OFAC and the Treasury Department, alleging the sanctions exceeded the agencys authority, infringed on users constitutional rights, and threatened the ability of law-abiding Americans to engage freely and privately in financial transactions.

Coinbase Global Inc., the biggest U.S. cryptocurrency exchange, has helped organize and bankroll the lawsuit.

The Treasury Department on 13 September announced a way for Tornado Cash users to recover their funds by applying for an OFAC license to withdraw funds legally.

More than US$1.6 million is frozen in Tornado Cash accounts, according to data from DeFiLlama, and much of it may well be illicit, but as with Buterins Ukraine donation there are legitimate reasons users may want layers of privacy when making a transaction.

In another lawsuit filed against the U.S. Treasury in September, the plaintiff Tyler Almeida said he used the mixer to privately donate 0.5 ETH to the Ukrainian governments public crypto wallet address. Almeida said this was to avoid public crypto wallets that donated to Ukraines public addresses being targeted by Russian state-sponsored hackers, according to the complaint.

Implications

Despite the Treasurys actions, cryptocurrency mixers are not illegal. Other services, such as UniJoin and ChipMixer, are still up and running. However, the risk of sanctions loom, according to Leonie Tear, counsel at King & Wood Mallesons and certified global sanctions specialist with the Association of Certified Anti-Money Laundering Specialists.

I think its a warning shot to the whole industry in terms of the need to get compliance programs in place, said Tear.

While the decentralized nature of Tornado Cash makes it difficult to identify individual bad actors, targeting the most high profile tumblers can dissuade users and incentivize new industry standards, Tear added.

Its all pushing the industry to really put in place proper controls and stop virtual assets being used for crime, she said. The aim I dont think is just to stifle innovation or to stop cryptocurrency being used, its just to try and rein in the more wild side.

Some crypto companies have distanced themselves from Tornado Cash. Circle, issuer of the popular dollar-pegged USDC stablecoin, froze 75,000 USDC held by users with ties to Tornado Cash.

Conversely, Tether Holdings Ltd., the issuer of the worlds largest stablecoin by market capitalization, USDT, decided not to freeze any assets linked to Tornado Cash unless instructed specifically to do so by law enforcement.

Christopher Goes at Anoma said that either way, this story is far from over.

I see a lot of productive engagement, and I expect that to continue, he said, the technology and regulations are both complex, and I hope that all involved parties can exercise patience and assume good intent by default.

(Updates in third section to add that Goes does not regard Tornado Cash as a crypto mixer.)

Original post:
What is the future for cryptocurrency mixers after U.S. sanctions on Tornado Cash? - Forkast News

Many investors, especially those looking for profitable short-term opportunities, are turning to cryptocurrencies and forgood reason. Potential profits from this market far exceed what you can achieve in stocks and even forex trading. That's because, unlike stocks and forex, cryptocurrencies are highly volatile, creating many long and short opportunities at any given moment.

That said, not all cryptocurrencies are equal, and some present better day trading opportunities than others. For this reason, we have compiled a list of the top cryptocurrencies to trade in 2023.

Each of these coins has shown high volatility over time, and they are available on most top cryptocurrency exchanges. In this guide, you will also learn about how to get started in your day-trading journey.

The top 10 best cryptocurrencies to trade today

Given the high volatility of the cryptocurrency trading market, many investors are turning to short-term trading. If you like the idea of short-term trading, below are the top 10 cryptocurrencies to day trade today.

Binance coin (bnb)

Ethereum (eth)

Terra classic (lunc)

Bitcoin (btc)

Cardano (ada)

Ripple (xrp)

Chainlink (link)

Dogecoin (doge)

Shiba inu (shib)

Cosmos (atom)

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Virtual currencies are highly volatile. Your capital is at risk.

A closer look at the top cryptocurrencies for day trading

One thing that stands out among the top cryptocurrencies to trade today is that they are all liquid and volatile. This makes them perfect for anyone looking for cryptocurrency day trading opportunities.

Now that you know all 10are perfect for cryptocurrency trading, let's look at each of them in depth. The best part is that they are also among the best cryptocurrencies to trade and hold long-term.

Binance coin (bnb)

The binance coin is the cryptocurrency that powers the binance exchange the largest cryptocurrency exchange by trading volumes. This means that the long-term growth of binance coin is closely tied to the growth of the binance cryptocurrency exchange.

Bnb offers various uses for its holders, from discounts on trading fees and access to upcoming token sales through binance's launch pad program. In addition, it can be used within the company's smart chain (bsc), which creates nfts and allows users to participate in building dapps.

It is no surprise that bnb has become one of the most popular cryptocurrencies for day trading in recent times. The token's stability and low volatility make it appealing for crypto traders looking to day trade or scalp some gains on their investments, as opposed to other currencies, which might be more volatile depending upon market sentiment.

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Virtual currencies are highly volatile. Your capital is at risk.

Ethereum (eth)

Ethereum is one of the best altcoins on this list, and it's not hard to see why. The blockchain was built with smart contracts in mind - which allow for code that runs without any interference from third parties. But even more than its functionality as an app store powering these kinds of applications, ethereum also has appeal to short-term traders and long-term cryptocurrency investors.

The demand for either tokens for paying gas fees has made it one of the most sought-after cryptocurrencies on exchanges. Not only does this token provide access to smart contracts, but also as an investment that is continually drawing in retail and institutional investors for day trading and long-term investment.

The appeal of ethereum for cryptocurrency day trading is clear when you look at its price action. There are strong supports and resistances that offer predictable market entries and exit points. This makes ethereum very popular among those who want to day trade cryptocurrencies but need some predictability on price movements.

The best part about ethereum trading is that eth is one of the most liquid cryptocurrencies in the market today. Ethereum is only second to bitcoin in trading volumes, and when you couple this with its price predictability, it is easy to see why it is one of the best cryptocurrencies to day trade today.

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Virtual currencies are highly volatile. Your capital is at risk.

Terra classic (lunc)

Terra classic has one of the most resilient communities in the cryptocurrency market. Since the collapse of the terra luna ecosystem earlier in 2022, lunc has become a speculators paradise, and volumes are high all the time, especially when there is token burn news. This liquidity, coupled with its high volatility, makes it a top cryptocurrency to day trade.

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Virtual currencies are highly volatile. Your capital is at risk.

Bitcoin (btc)

Bitcoin, the world's most popular cryptocurrency with a market capitalization of over $437 billion, according to coinmarketcap, is still worth considering for day traders. Bitcoins first-mover status has allowed it to gain traction in such an otherwise flooded industry that continues evolving daily. While there have been some challenges along the way, including price fluctuations and regulations, bitcoin remains a top cryptocurrency for day traders looking to capitalize on market volatility.

Anyone who has ever tried day trading knows that volumes matter. The higher the volumes that a trading asset has, the better its odds of success. On this front, bitcoin is miles ahead of the competition. With more than $20 billion in daily trading volume, bitcoin is the most liquid cryptocurrency ever. Most top cryptocurrency exchanges can give investors tight spreads on btc thanks to the huge trading volumes. This makes day trading strategies like scalping possible with btc.

Besides the volatility characteristic of all cryptocurrencies, bitcoin stands out as a top cryptocurrency to trade for its current adoption levels and growth potential.

None of the other cryptocurrencies match bitcoin in terms of merchant adoption. At the same time, institutional investors are increasingly seeking exposure to bitcoin. This gives bitcoin good short-term potential and makes it one of the best cryptocurrencies to buy and hold for years.

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Virtual currencies are highly volatile. Your capital is at risk.

Cardano (ada)

What if you could harness the power of blockchain without bleeding your bank account dry? Cardano is a cryptocurrency that aims to compete with ethereum in terms of features, but at below $1 per token, is affordable for most investors. Charles hoskinson, who was part of the original ethereum team, developed cardano. Hoskinson and the rest of the cardano team hope this new network will provide even more value than his previous work while remaining accessible to many, primarily through its low barrier to entry staking.

With its 'proof-of stake' mechanism, cardano only uses a fraction of the energy requirements of bitcoin. This gives it a high adoption potential while creating a source of passive income for those that stake ada tokens.

For day traders, there is a lot to love about cardano. Ada is one of the most traded cryptocurrencies today. Like other top 10 cryptocurrencies, ada has high trading volumes at any given time. This means cardano spreads are low on all top cryptocurrency exchanges. It also means that cardano is a perfect cryptocurrency for scalpers and traders employing different day trading strategies.

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Virtual currencies are highly volatile. Your capital is at risk.

Ripple (xrp)

There's a lot of buzz about xrp, but is it worth your time? The answer depends on if you have short-term or long-term investments in mind. If you are a long-term investor, you need to consider xrp's core fundamentals and the risks involved.

However, for traders with narrower spans between trades (i.e., those looking only at what lies ahead today), ripple (xrp) offers some attractive trading opportunities. That's because it has one of the largest communities in crypto, and xrp volumes are usually high on most cryptocurrency exchanges.

Ripple is also highly volatile, and its volatility will likely increase in the coming days and months. That's because there is a lot of speculation that the ongoing court case between ripple and the sec could be close to its end. It's been a tough few years for ripple. The uncertainty of the sec case has caused major fluctuations in recent months and could provide some exciting opportunities for those looking to day trade xrp in 2023 and longer.

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Virtual currencies are highly volatile. Your capital is at risk.

Chainlink (link)

Chainlink (link) is an obvious inclusion in the list of top cryptocurrencies for successful day trading in 2023.

Chainlink is a network of oracles that provide data to decentralized applications. These networks are not centralized, so they allow the dapps access to real-world insights without being vertically integrated with one source for all information.

The data oracles on the chainlink network are an essential part of keeping dapps running smoothly. By aggregating information from various sources, this service ensures that every piece sent through its system gets accurate feedback. To guarantee the accuracy, the network rewards data providers with link tokens if they deliver facts as requested by a smart contract.

Over the years, link has become one of the most popular cryptocurrencies for day trading. That's because link is listed on almost all the best cryptocurrency exchanges in the market, which makes it highly liquid. Besides, due to its high utility, and currently depressed prices, link continues to attract many traders, which keeps volumes high at all times. The result is that link is practical even for scalping day trading strategies.

>>>trade cryptos now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Dogecoin (doge)

If you follow the crypto markets, it's no secret that dogecoin was one of the 2020s most popular coins. It survived may 2021 without majorly falling apart and remains one of the most popular meme coins to trade today.

While dogecoin has lost a significant portion of its value for the better part of the year, it remains one of the most popular meme coins for day traders and long-term investors. With the right factors at play, doge has shown higher return potential than most cryptocurrencies.

Doge is an amazing cryptocurrency for short-term traders because its price can rise quickly and fall quickly. This makes it perfect for taking advantage of any trading opportunities, regardless of the prevailing market conditions. While this volatility may not be ideal for the risk-averse, those who can shoulder it have multiple profit opportunities from dogecoin at any given time.

Most importantly, day traders love dogecoin for its high trading volumes. Dogecoin's high trading volumes come from its large and passionate community, numbering over 4 million on social media platforms. This coupled with the fact that doge is available on most top cryptocurrency exchanges, makes it one of the best for day trading.

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Virtual currencies are highly volatile. Your capital is at risk.

Shiba inu (shib)

Shiba inu is one of the most famous meme coins in the market today. Since its 48,000,000% rally in 2021, the shib community has grown exponentially.

Shiba inu has been listed on almost all the top-rated cryptocurrency exchanges. The has seen its liquidity shoot up over time, making it one of the cryptocurrencies of choice for day traders.

Cosmos (atom)

Cosmos is gaining traction as one of the blockchains that could open the way for blockchain mass adoption. It is scalable and also allows for the creation of an interconnected network of blockchains.

This has seen cosmos adoption grow over time, making it one of the most valuable cryptocurrencies by market capitalization. This has made cosmos a highly liquid cryptocurrency, perfect for day traders.

>>>trade cryptos now<<<

Virtual currencies are highly volatile. Your capital is at risk.

A simplified guide to cryptocurrency trading

Cryptocurrency trading is just like any other financial asset trading. It entails the short-term buying and selling of a cryptocurrency over a short period. For instance, if a cryptocurrency trader expects the price of ethereum to go up within the day, they can buy it in the morning, let its price rise, then sell once their price target is hit.

When you invest in crypto, it's crucial to consider your investment's time frame. However, because cryptocurrency price movements happen so quickly, especially compared against more traditional markets such as stocks or bonds, short-term cryptocurrency trading approaches tend to focus on much smaller time frames.

Crypto trading has always been considered one of the most profitable strategies for traders who want to make big bucks in a short time. One common tactic is buying crypto's that are about to go up before they peak, then selling them immediately. It's called scalping, and cryptocurrencies with high trading volumes, have better outcomes than when trading conventional assets with lower volatility.

That said, even as you analyze our list of best cryptocurrencies to day trade, it is important to remember that this strategy is inherently risky. That's because in a volatile market like cryptocurrency, it can be hard to predict how prices will go within hours. As such, if you are to succeed when day trading cryptocurrencies, you need to develop a high-risk tolerance.

How does cryptocurrency trading differ from investing?

The difference between crypto trading and investing is often misunderstood, but it's an important distinction to make if you want your money working for you.

Crypto trading is a high-risk but potentially lucrative venture that allows traders to take advantage of short-term price movements. When day trading cryptocurrencies, buy or sell orders must be closed within the day. It's a high-risk strategy, but if done right, it can lead to significant returns on investment.

On the other hand, cryptocurrency investing is about buying and holding cryptocurrency for years. When investing in cryptocurrencies, you have an advantage in handling volatile markets. Unlike traders, who often time the market and try buying low or selling high, crypto holders need not concern themselves with what seems like a perfect opportunity at any given moment. That's because emotion doesn't play nearly as big a role with these investments over extended periods.

For instance, while bitcoin is usually highly volatile short term, with up to 70% declines in price, the overall trajectory has been up over the last decade. Bitcoin started trading in 2009 at under $1, and at its current price of $20,000, is still one of the most profitable investments ever. That's despite a drop in the price from highs of $69k in 2021.

There's another major benefit, too: unlike people trading stocks (or other traditional assets), those investing in cryptocurrencies don't need to worry about waiting too long. With cryptocurrencies, anything between 5 to 10 years is enough to give you multiple times what you can get from the s&p 500, for instance.

With this in mind, it is only natural to wonder, is cryptocurrency trading better than long-term investing? Whether you want to become a cryptocurrency day trader or a long-term hodler is a function of your risk tolerance. If you are into high-risk, high-return investments, then cryptocurrency trading is a worthy consideration. On the other hand, if you are uncomfortable with volatility, then long-term cryptocurrency investing could be ideal.

>>>trade cryptos now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Understanding cryptocurrency day trading

The idea behind crypto day trading is that you want to take advantage of quick fluctuations in the market. You open and close your position within a single business day, meaning if prices move up or down quickly throughout that period, then it's possible to make a profit.

To help you better understand how to day trade cryptocurrencies, here is an example of how it's done.

A cryptocurrency speculator expects the price of ethereum to go up during the day. From a hypothetical price point of $1300, the trader expects ethereum to hit $1350.

Buying volumes surge, and during the day, ethereum ends up hitting a high of $1500.

The trader decides to close the trade, giving them a profit of 15.3%.

On the flip side, a trader can decide that the price of bitcoin will go down after starting the day at $19,800.

The trader then opens a short position, with a target of $19,200.

Read more here:
Best cryptocurrency to trade in 2023 | HeraldScotland - HeraldScotland