Category Archives: Cryptocurrency

The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.

The narrative of those who refuse to imagine a future in which cryptocurrencies will be integral to the financial system now seems forced, self-serving, and even fanatical, Silvina Moschini writes.

Nothing has been more damaging to the adoption of cryptocurrencies than the no-coinersdeniers who refuse to buy into the system and prophesied that the industry is doomed to failure.

Fortunately, these "sceptics" appear to be a dying breed and the doubters are becoming less doubtful.

Two years ago, an article published in Vice magazine outlined how a "no-coiner" was a derogatory term in the crypto world, used todescribe anyone who derides the ecosystem by saying things like: "it's a bubble about to burst," "it's not real money," or is "a wildly anarchic unregulated form of Wild West financial capitalism"something that will fail sooner or later.

While "anticoiners" may have been a more appropriate moniker, what is clear is that despite all of the scepticism, it didnt impact adoption trends.

On the contrary, in 2023, cryptocurrency users grew by 34%, from 432 to 580 million worldwide.

Meanwhile, as more and more governments around the world begin to acknowledge cryptocurrency as "real" money, the pessimistic predictions of no-coiners are looking less and less credible.

Last year alone, more than 40 countries began discussing how to introducelegal frameworks to accommodate digital currencies.

With this in mind, the narrative of those who refuse to imagine a future in which cryptocurrencies will be integral to the financial system now seems forced, self-serving, and even fanatical.

But at any rate, we are only talking about a vocal minority.

Curiously in 2024, the term "no-coiner" no longer seems to be synonymous with rejection but is now associated with potential users.

Rather than distrusting cryptocurrencies outright as a technology, the new non-coiners are people who appear to have not yet found a specific use for digital currencies for their own financial projects.

But that is so too beginning to change.

Morgan Stanley, one of the most important financial consultancies in the world, has predicted that cryptocurrencies will disrupt the global financial system in 2024.

The consultancy pointed out that Bitcoin's market capitalization "...already rivals the GDP of major economies" such as Switzerland and that both stablecoins and the rise of Central Bank Digital Currencies (CBDCs) are completely reshaping global finance.

It envisages a new financial order with digital currencies as part of the mainstream. And many non-coiners are observing this transformation with a mixture of relief and optimism.

The world of crypto is becoming less murky than before and the "Wild West" is gradually being tamed.

I believe that the former non-coiners will actually, ironically, contribute to 2024 being a good year for cryptocurrencies.

The scepticism and wariness they showed towards digital currencies, which hindered their development two years ago, is melting away. Meanwhile, measures such as the approval of Bitcoin ETFs are renewing trust and enthusiasm for the ecosystem.

Looking ahead, the dilemma will no longer be whether to invest in cryptocurrencies or not, but rather which to choose and for what purpose.

I believe that the future of cryptocurrency will be tied to assets-backed, public reporting organizations, that create value and better experiences for their coin-holders.

For "coiners" of all kinds, it is in our hands to create lasting change to democratize wealth creation and succeed in the "Crypto 2.0" economy.

Silvina Moschini is CEO of Unicorns Inc and Founder And Chairwoman Of Unicoin.

At Euronews, we believe all views matter. Contact us at view@euronews.com to send pitches or submissions and be part of the conversation.

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2024 will see the end of the 'no-coiner' crypto sceptics - Euronews

For more than a decade, the pioneers of the cryptocurrency industry envisioned digital coins as an alternate branch of finance, a renegade sector that would operate outside the reach of big banks and government regulators.

But as digital currencies like Bitcoin and Ether became more mainstream, the crypto industry collided with a 1946 Supreme Court decision that created what is known as the Howey Test, a legal analysis that determines when a financial product becomes subject to the same strict rules as stocks and bonds.

In recent years, regulators have seized on that legal precedent to argue that cryptocurrencies are just another security, like shares of Apple or General Motors. The crypto industry has fought back, leaving it in a legal gray zone with an uncertain future in the United States.

Now the long-running dispute is edging closer to a resolution, as federal judges begin weighing in on a series of lawsuits by the nations top securities regulator against some of the largest crypto firms. This month, judges held hearings in two of the most consequential cases, which could dictate whether the multitrillion-dollar crypto industry can continue growing in the United States.

The legal battles are an existential issue for crypto, said Hilary Allen, a professor at American University who specializes in financial regulation.

The court fights intensified over the last 18 months, as the Securities and Exchange Commission brought enforcement lawsuits claiming that crypto companies were operating as unregulated securities businesses. In response, the industry argued that laws governing Wall Street trading shouldnt apply to digital currencies. Both sides scored early court victories that left the matter unsettled.

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Is Cryptocurrency Like Stocks and Bonds? Courts Move Closer to an Answer. - The New York Times

Behind every web-based application, AI model, and cryptocurrency du jour is a busy data centerand behind each data center is a voracious rate of energy consumption. In a new report, the International Electricity Agency (IEA) writes that these industries rapidly require unprecedented amounts of electricity. Data centers, AI, and cryptocurrency are on track to double their strain on the energy grid by 2026.

The IEA is an independent organization that analyzes global energy consumption and then offers energy policy recommendations based on that analysis. In this weeks Electricity 2024 report, the IEA writes that data centers, AI, and crypto collectively consumed 460 terawatt hours (TWh) of electricity in 2022, comprising nearly 2% of the worlds energy demand. With interest in all three categories increasing yearlyyes, even cryptothe IEA expects demand to climb to 800 TWh annually. Its model leaves some wiggle room, offering 600 TWh per year as a low case and 1,050 TWh per year as a high case, but actual demand will likely fall somewhere in the middle.

To put these numbers into perspective, the IEA says the additional strain on the worlds energy grid would be equivalent to adding at least one Sweden, or at most one Germany.

Data centers are resource-heavy, requiring energy for computing, cooling, and what the IEA calls associated IT equipment. These categories account for roughly 40%, 40%, and 20% of any data centers total electricity usage, respectively. As the world continues to rely on digital data, its only natural that the computers and cooling mechanisms responsible for maintaining that data will eat more electricity and that the worlds 8,000-plus data centers will grow in number.

Not surprisingly, AI is a major factor in technologys increased energy pull. The IEA anticipates that Google alone will experience a tenfold increase in electricity demand as it grows Bard, its large language model and ChatGPT competitor. Chatbots, image generators, and other AI-based tools dont just require a lot of energy to develop, train, and maintainthey also require a shocking amount of electricity to use, with just a few AI images consuming as much electricity as it takes to charge your smartphone.

Cryptocurrency is also expected to require more energy over the next two years despite efforts to achieve the opposite. The IEA confirms that Ethereum, the worlds second-largest cryptocurrency, successfully reduced its electricity consumption by 99% in 2022 by swapping its mining mechanism to the proof-of-stake model. Nonetheless, the organization anticipates that Bitcoin and other cryptocurrencies will require 40% more electricity as increases in other areas offset energy savings.

Figures like this are daunting, and for good reason. From electric vehicles to all the handheld gadgets we rely on throughout the day, the 21st century is rife with added stressors for the global energy grid. The IEA shared last year that the world will need 50 million additional transmission lines before 2040 to meet demand. But if theres any comfort to be gleaned here, its from the fact that renewable energy sources are gradually supporting more of the worlds energy needs and that new ways to extract energy are cropping up every year.

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Data Centers, AI, and Cryptocurrency Will Consume 2x Electricity By 2026 - ExtremeTech

Over the last few years, cryptocurrency hacking has become a pervasive and formidable threat, leading to billions of dollars stolen from crypto platforms and exposing vulnerabilities across the ecosystem. As we revealed in last years Crypto Crime Report, 2022 was the biggest year ever for crypto theft with $3.7 billion stolen. In 2023, however, funds stolen decreased by approximately 54.3% to $1.7 billion, though the number of individual hacking incidents actually grew, from 219 in 2022 to 231 in 2023.

Why the huge drop in stolen funds? Mostly due to a drop in DeFi hacking. Hacks of DeFi protocols largely drove the huge increase in stolen crypto that we saw in 2021 and 2022, with cybercriminals stealing more than $3.1 billion in DeFi hacks in 2022. But in 2023, hackers stole just $1.1 billion from DeFi protocols. This amounts to a 63.7% drop in the total value stolen from DeFi platforms year-over-year. There was also a significant drop in the share of all funds stolen accounted for by DeFi protocol victims in 2023, as we see on the chart below.

Well explore the possible reasons for the drop in DeFi hacking in greater detail later on. Despite that drop, there still were several large hacks of notable DeFi protocols throughout 2023. In March, for instance, Euler Finance, a borrowing and lending protocol on Ethereum, experienced a flash loan attack, leading to roughly $197 million in losses. July 2023 saw 33 hacks the most of any month which included $73.5 million stolen from Curve Finance. We can see the spikes driven by those hacks below.

Similarly, several large exploits occurred in September and November 2023 on both DeFi and CeFi platforms: Mixin Network ($200 million), CoinEx ($43 million), Poloniex Exchange ($130 million), HTX ($113.3 million), and Kyber Network ($54.7 million).

Keep reading to learn more about crypto hacking trends in 2023, including how North Korea-affiliated cyber criminals had one of their most active years, executing more individual crypto hacks than ever before.

DeFi hacking exploded in 2021 and 2022, with attackers stealing approximately $2.5 billion and $3.1 billion, respectively, from protocols. Mar Gimenez-Aguilar, Lead Security Architect and Researcher at our partner Halborn, a security company specializing in web3 and blockchain solutions, told us more about the rise in DeFi hacking during those years. Theres been a worrying trend in the escalation of both the frequency and severity of attacks within the DeFi ecosystem, she explained. In our comprehensive analysis of the top 50 DeFi hacks, we observed that EVM-based chains and Solana are among the most targeted chains, largely due to their popularity and capability to execute smart contracts. When examining this trend last year, security experts told us that they believe many DeFi vulnerabilities stemmed from protocol operators focusing primarily on growth, and not enough on implementing and maintaining robust security systems.

However, for the first time since DeFis emergence as a key sector of the crypto economy, the yearly total stolen from DeFi protocols fell and fell significantly.

The value lost in DeFi hacks declined by 63.7% year-over-year in 2023, and median loss per DeFi hack dropped by 7.4%. And, while the number of individual crypto hacks rose in 2023, the number of DeFi hacks specifically declined by 17.2%.

In order to understand this trend better, we worked with Halborn to analyze 2023 DeFi hacking activity through the lens of the specific attack vectors hackers utilized.

Attack vectors affecting DeFi are diverse and constantly evolving; it is therefore important to classify them to understand how hacks occur and how protocols might be able to reduce their likelihood in the future. According to Halborn, DeFi attack vectors can be placed into one of two categories: vectors originating on-chain and vectors originating off-chain.

On-chain attack vectors stem not from vulnerabilities inherent to blockchains themselves, but rather from vulnerabilities in the on-chain components of a DeFi protocol, such as their smart contracts. These arent a point of concern for centralized services, as centralized services dont function as decentralized apps with publicly visible code the way DeFi protocols do. Off-chain attack vectors stem from vulnerabilities outside of the blockchain one example could be the off-chain storage of private keys in, say, a faulty cloud storage solution and therefore apply to both DeFi protocols and centralized services.

Source: Halborn

According to Gimenez-Aguilar, both on-chain and off-chain vulnerabilities present serious concerns. Historically, the majority of DeFi hacks have stemmed from vulnerabilities in smart contract design and implementation a large proportion of the affected contracts we examined had either not undergone any audit or had been audited inadequately, she said, explaining on-chain vulnerabilities. Another notable trend is the increase in attacks as a result of compromised private keys, which underscores the importance of improvements in security practices outside of a given blockchain.

Indeed, the data shows that both the on-chain and off-chain vulnerabilities Gimenez-Aguilar describes in particular the compromise of private keys, price manipulation hacks, and smart contract exploitation drove hacking losses in 2023.

Source: Halborn

Overall, on-chain vulnerabilities drove the majority of DeFi hacking activity in 2023, but as we see on the chart below, that changed over the course of the year, with compromised private keys driving a larger share of hacks in the third and fourth quarters.

Source: Halborn

On a hack-by-hack basis, hacks stemming from contagion (on-chain) were the most destructive, with a median loss of $1.4 million. Governance attacks (on-chain), insider attacks (off-chain), and compromised private keys (off-chain) follow, with all three accounting for a median hack value of roughly $1 million.

Source: Halborn

Overall though, the data provides reasons for optimism. Both the drop in raw value stolen from DeFi, and the relative decline in on-chain vulnerability-driven hacking over the course of 2023 suggests that DeFi operators may be getting better at smart contract security. I do think that the increase of security measures in DeFi protocols is a key factor in the reduction in the quantity of hacks related to smart contracts vulnerabilities. If we compare the top 50 hacks by value lost from this year with those from previous ones (studied in Halborns Top 50 hacks report), there is a reduction in percentage of losses from 47.0% of the total to 18.2%. Price manipulation attacks, nevertheless, remain almost constant with around 20.0% of the total value lost. This is an indication that, when performing an audit, protocols should also take into account how they interact with the whole DeFi ecosystem, said Gimenez-Aguilar. However, she also stressed that the growth in hacks driven by attack vectors such as compromised private keys indicates that DeFi operators must move beyond smart contract security and address off-chain vulnerabilities as well: Doing the same comparison as before, losses related to compromised private keys increased from 22.0% to 47.8%. As we see above, both on-chain and off-chain vulnerabilities can be highly destructive.

However, Gimenez-Aguilar also acknowledged that the drop in DeFi hacking losses may be driven in part by the overall drop in DeFi activity in 2023, which may have simply decreased the number of DeFi protocols that made ripe targets for hackers. Total value locked (TVL), which measures the total value held or staked in DeFi protocols, was down for all of 2023, following a sharp decrease in the middle of 2022.

Source: DeFiLlama

We cant say for sure whether the drop in DeFi hacking was driven primarily by better security practices or the drop in DeFi activity overall most likely, it was a mix of the two. But, if the decrease in hacking was primarily driven by the drop in overall activity, then it would be important to watch whether DeFi hacking rises again in tandem with another DeFi bull market, as this would lead to higher TVL and therefore a larger pool of DeFi funds for hackers to target.

Regardless, there are steps DeFi operators should take to improve security. DeFi protocols vulnerable to on-chain failures can develop systems that monitor on-chain activity related to economic risks and prior platform losses. Companies such as Hypernative and Hexagate, for example, produce customized alerts to prevent and react to cyber attacks, which can help platforms better secure integrations with third parties such as bridges, and communicate with customers who might be at risk. Platforms vulnerable to off-chain failures may aim to reduce reliance on centralized products and services.

North Korea-linked hacks have been on the rise over the past few years, with cyber-espionage groups such as Kimsuky and Lazarus Group utilizing various malicious tactics to acquire large amounts of crypto assets. In 2022, cryptocurrency stolen by hackers associated with North Korea reached its highest level of approximately $1.7 billion. In 2023, we estimate that the total amount stolen is slightly over $1.0 billion, but as we see below, the number of hacks rose to 20 the highest number on record.

We estimate that North Korea-linked hackers stole approximately $428.8 million from DeFi platforms in 2023, and also targeted centralized services ($150.0 million stolen), exchanges ($330.9 million), and wallet providers ($127.0 million).

2023 saw a notable decrease in North Korean targeting of DeFi protocols, mirroring the overall drop in DeFi hacking that we discussed above.

In June 2023, thousands of users of Atomic Wallet, a non-custodial cryptocurrency wallet service, were targeted by a hacker, leading to estimated losses of $129 million. The FBI later attributed this attack to North Korea-affiliated hacking group TraderTraitor and stated that the Atomic Wallet exploit was the first in a series of similar attacks, including the Alphapo and Coinspaid exploits later in the month. Although the specifics of how the attack occurred remain unclear, we used on-chain analysis to look at what happened to the funds after the initial attack, which weve broken down into four phases.

In the first phase, the attacker chain hopped moving assets from one blockchain to another, typically to obfuscate the flow of ill-gotten funds to the Bitcoin blockchain via the following three methods:

The Chainalysis Reactor graph below illustrates the third method whereby the stolen funds (in Ether at the time) moved through several intermediary addresses before reaching the Avalanche Bridge and converting to Bitcoin.

In the second phase, the attacker sent the stolen funds to the OFAC-sanctioned Sinbad, a mixing service that obscures on-chain transaction details and has been previously used by North Korean money launderers. Then, the attacker withdrew the funds from Sinbad and moved them to consolidation addresses on Bitcoin.

In the third phase, the attackers money laundering strategy shifted to focusing almost exclusively on the Tron blockchain rather than the Bitcoin blockchain. The attacker chain hopped to the Tron blockchain via one of the following methods:

In the fourth and final phase, the attacker deposited the funds at various services on the Tron blockchain. Some of these funds were mixed via Trons JustWrapper Shielded Pool, whereas others were ultimately sent to high-activity Tron addresses suspected of belonging to over-the-counter traders.

Additional on-chain activity revealed that funds stolen from Atomic were consolidated with assets from other sources before moving elsewhere, which is likely related to the subsequent Alphapo and Coinspaid exploits.

Although the total amount stolen from crypto platforms in 2023 was down significantly from prior years, it is clear that attackers are becoming increasingly sophisticated and diverse in their exploits. The good news is, crypto platforms are becoming more sophisticated in their security and responses to attacks, too.

When crypto platforms act promptly after exploits, law enforcement agencies will be better equipped to contact exchanges where frozen funds are located to initiate seizure and contact services through which the funds flowed to gather relevant information about accounts and users. Over time, as these processes improve, it is likely that funds stolen from crypto hacks will continue to decline.

This material is for informational purposes only, and is not intended to provide legal, tax, financial, investment, regulatory or other professional advice, nor is it to be relied upon as a professional opinion. Recipients should consult their own advisors before making these types of decisions. Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information herein. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with Recipients use of this material.

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Stolen Crypto Falls in 2023, but Hacking Remains a Threat - Chainalysis Blog

What is a hedge fund?

Hedge funds, named for their original purpose of hedging against market risks, gather funds from various investors to diversify across assets, aiming to mitigate market risks.

A hedge fund is an investment fund where capital from various institutional and individual investors is combined and put toward a range of assets, including derivatives, stocks, bonds, commodities and foreign currencies, with the aim of optimizing returns.

As implied by the name, hedge funds were initially focused on managing investments to safeguard their assets against market risks. Risk-averse investors have traditionally favored hedge funds, putting their trust in the funds visionary fund managers with the optimal allocation of various assets in their portfolio.

Crypto hedge funds, created to navigate the complexities of cryptocurrency investments, pool funds from various investors to strategically trade digital assets, aiming to yield positive returns.

Unlike their traditional counterparts, cryptocurrency hedge funds specialize in crypto fund management, investing in cryptocurrencies and employing various strategies to generate favorable returns for their investors. This includes buying and selling cryptocurrencies, as well as engaging in crypto derivatives and futures trading. Particularly, a crypto hedge fund operates as an intermediary between contributing investors and initiating traders for investors looking to get exposure to digital assets.

A crypto hedge fund may focus solely on crypto assets or incorporate cryptocurrencies into its investment strategy alongside traditional instruments like stocks and bonds. Additionally, such funds may invest in venture capital and private equity for blockchain startups, providing a diversified pool of assets and enhancing their digital asset management.

When it comes to regulations, crypto hedge funds may face comparatively less oversight than traditional hedge funds, and the extent of this regulation depends on the specific mix of investments in the overall portfolio.

Crypto hedge funds aggregate money from investors, charging various fees and generating profits by professionally trading and managing diversified crypto portfolios for optimal returns.

Hedge funds, in general, operate as limited partnerships, professionally managed by fund managers who pool money from investors. However, participation in hedge funds, including those dealing with cryptocurrencies, is typically limited to high-net-worth individuals who can bear higher management fees and associated risks.

To access crypto hedge funds, individuals typically need to meet specific investment requirements, such as a minimum investment amount. Access might also be subject to accreditation, ensuring investors meet certain financial criteria or have a particular level of experience.

Once qualified, investors can benefit from the expertise of fund managers who make decisions on buying, selling and managing a diversified portfolio of cryptocurrencies, aiming for optimal returns in this dynamic digital landscape.

Crypto hedge funds generate revenue through an annual management fee, typically ranging from 1% to 4% of the invested amount. In addition, investors may also be obligated to pay a percentage of earned profits as performance fees to the managing team.

In crypto hedge funds, strategic asset allocation optimizes returns and manages risks by blending systematic algorithms and discretionary decision-making to navigate the dynamic landscape of institutionalized cryptocurrency markets.

Crypto hedge funds navigate the dynamic crypto market through thorough crypto market analysis, where each asset is strategically chosen to maximize returns and manage risks effectively. This involves the strategic allocation of funds across diverse crypto assets and investment approaches, showcasing comprehensive and strategic crypto fund management of digital assets within the crypto hedge funds portfolio.

Institutional crypto investing is steering the evolution of cryptocurrency markets, notably impacting trends and liquidity and reshaping the landscape for crypto hedge funds.

Prominent financial players adopting digital assets induce significant shifts in market dynamics. This influx not only boosts crypto market trends but also improves liquidity, opening new avenues for hedge fund strategies in the increasingly institutionalized crypto space.

Crypto hedge funds employ a combination of systematic and discretionary investment strategies to effectively navigate the crypto landscape. The systematic approach relies on computer transaction processing models, offering a structured framework, reducing emotional influences and providing consistency. However, the risk lies in the potential vulnerability of these algorithms to unforeseen market conditions.

The discretionary approach involves active decision-making and relies on the managers expertise in analyzing market trends and potential opportunities. This approach, rooted in human intuition and adaptability, allows for real-time adjustments based on emerging trends and current events. In the volatile crypto market, this adaptability can be a strength, but it comes with the inherent risk of emotional biases and human errors that may lead to suboptimal decisions.

Crypto hedge funds offer diversification and liquidity in a dynamic market but come with challenges of volatility, regulation, operational risks, high fees and limited accessibility, demanding a balance between profit and risk.

Crypto hedge funds present several advantages for investors. Firstly, they offer diversification by providing exposure to a diversified portfolio of digital assets, mitigating the risks associated with individual cryptocurrencies.

Additionally, for investors facing regulatory barriers or constraints, cryptocurrency hedge funds offer exposure to the dynamic market. The expertise of experienced fund managers becomes crucial in navigating the volatile crypto landscape, enabling informed and strategic investment decisions.

Furthermore, some crypto hedge funds enhance liquidity, facilitating more accessible buying or selling of positions compared to traditional markets. Lastly, the volatility of cryptocurrencies creates the potential for significant returns, making well-managed hedge funds an attractive option for those seeking substantial investment gains.

Investing in crypto hedge funds also presents challenges, including the markets notorious volatility, which exposes investors to heightened risk. The cryptocurrency spaces lack of regulation compared to traditional markets raises concerns about fraud and malpractice. Operational risks, such as hacking and security breaches, further complicate management.

High fees, both for management and performance, can significantly impact overall returns. The markets susceptibility to rapid and unpredictable changes based on sentiment adds another layer of uncertainty. Additionally, access to crypto hedge funds is limited by high entry barriers, excluding a broader investor demographic.

Moreover, the controversial investment strategy employed by these funds involves a balance between income maximization for profit and risk management. The funds return is closely tied to its yield, prompting a conservative approach to client investments due to the inherent trade-off between expected returns and associated risks.

Robust risk management and cybersecurity measures are essential for crypto hedge funds to mitigate market risks and safeguard against threats like hacking and fraud.

Investing in crypto hedge funds involves inherent risks for investors, ranging from market volatility to regulatory uncertainties. To shield investors from potential losses, effective risk management strategies in crypto hedge funds are paramount. This involves thorough analysis, diversification and strategic asset allocation to mitigate market fluctuations.

Additionally, a fund needs robust cybersecurity measures to safeguard investors assets from potential threats such as hacking, fraud and unauthorized access. Implementing secure storage solutions and encryption protocols and adopting best practices in key management are crucial steps to fortify the funds security posture.

Beyond fund-level risk management, individual investors can enhance their security by adopting prudent practices. Implementing strong password protection, enabling two-factor authentication and regularly updating software are essential steps.

Furthermore, employing reputable wallets and exchanges, conducting due diligence on investment platforms, staying informed about emerging threats and being compliant with regulations are integral components of a comprehensive security approach.

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What are cryptocurrency hedge funds, and how do they work? - Cointelegraph

U.Today - , the largest cryptocurrency by market capitalization, has slowed its decline since U.S. exchange-traded funds for the largest digital asset began trading on Jan. 11 and now faces a critical test if a bottoming signal on its charts is confirmed.

Bitcoin climbed over 4% on Wednesday, reaching a high of $40,527 before trimming its gains to trade at $40,091 at press time.

Given Bitcoin's recent bounce from lows of $38,501 on Jan. 23, Glassnode cofounder "Negentropic" on X wonders if it just bottomed in a "descending wedge with a classical throw-over."

Adding to that, if this is the case, Bitcoin may rally to $42,000 before retesting $40,500, after which it should skyrocket. The Glassnode cofounder added reassuringly that the "bigger picture still remains very bullish" for the Bitcoin price.

The digital asset markets observed an upswing in speculation leading up to the Bitcoin ETF approvals, with a general sell-the-news event playing out over the following days.

Bitcoin has fallen over 20% from an intraday high of $49,021 when the ETFs went live, as excitement over the products gave way to anxiety about the eventual extent of demand for them.

The latest sell-off marks the fourth time in the last year or so that Bitcoin has lost approximately 20%.

Elliott's wave theory claims that markets are prone to repeating wave patterns. Applying the approach to Bitcoin implies that the largest cryptocurrency will find a base between $36,000 and $38,000 before a fifth wave reignites last year's ascent.

According to cryptocurrency analyst Ali, historical patterns demonstrate that in bull markets, BTC price declines are consistently followed by further upside increases. This implies that declines could provide smart buying opportunities for investors eager to capitalize on Bitcoin's potential rise.

This article was originally published on U.Today

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Bitcoin Might Rally to $42,000 If This Rare Bottoming Pattern Validates By U.Today - Investing.com

Hackers siphoned $1.7 billion from cryptocurrency platforms in 2023 down by about $2 billion from a record high set the previous year, according to data collected by blockchain research firm Chainalysis.

Despite the drop in total money lost, the number of individual incidents targeting these platforms grew from 219 in 2022 to 231 in 2023 due in no small part to the collapse of several popular exchanges and the overall precipitous decline in value of cryptocurrencies.

Chainalysis experts also attributed the drop to a decrease in the number of cyber thefts targeting decentralized finance (DeFi) platforms which allow customers to borrow funds, speculate on prices and trade coins.

Hacks of DeFi protocols largely drove the huge increase in stolen crypto that we saw in 2021 and 2022, with cybercriminals stealing more than $3.1 billion in DeFi hacks in 2022. But in 2023, hackers stole just $1.1 billion from DeFi protocols, the researchers said.

This amounts to a 63.7% drop in the total value stolen from DeFi platforms year-over-year. There was also a significant drop in the share of all funds stolen accounted for by DeFi protocol victims in 2023.

In spite of the drop, several incidents drew headlines throughout 2023, including:

July 2023 alone saw 33 different hacks, the most of any month, the researchers explained.

Cybersecurity experts who spoke to Chainalysis said many of the hacks occurred because platforms are poorly built, prioritizing growth over robust security systems.

Historically, the majority of DeFi hacks have stemmed from vulnerabilities in smart contract design and implementation a large proportion of the affected contracts we examined had either not undergone any audit or had been audited inadequately, said Mar Gimenez-Aguilar, lead security architect and researcher at blockchain cybersecurity firm Halborn.

But Gimenez-Aguilar noted that things are improving, with many DeFi protocols increasing security measures.

Chainalysis said it is likely a mix of lower overall DeFi activity and better security practices that contributed to the decline in losses last year.

Although the total amount stolen from crypto platforms in 2023 was down significantly from prior years, it is clear that attackers are becoming increasingly sophisticated and diverse in their exploits, Chainalysis said.

Over time, as these processes improve, it is likely that funds stolen from crypto hacks will continue to decline.

Image: Chainalysis

One important part of the crypto hacking ecosystem is the activity of threat actors from North Korea, which have pilfered billions from crypto platforms to help fund their government and its nuclear weapons program.

In 2022, North Korean cyber espionage groups like Kimsuky and Lazarus Group stole about $1.7 billion worth of cryptocurrency. That figure fell to $1 billion in 2023 but the number of incidents attributed to the nation grew to 20, the highest ever recorded.

About $428 million was stolen from DeFi platforms while exchanges, wallet providers and centralized services also saw hundreds of millions worth of losses.

Attacks on Atomic Wallet, Alphapo and Coinspaid were all attributed to North Korean hackers, according to U.S. law enforcement agencies.

Chainalysis said the hackers behind the attacks took great effort to obfuscate the funds, sending them to centralized exchanges and then to other platforms where they could be mixed with other funds and converted into other cryptocurrency.

The hackers used the now-sanctioned mixing service Sinbad to obscure the on-chain transactions. Several other platforms and services, like the Tron blockchain and Avalanche bridge, were used to further launder the money.

The United Nations Security Council recently asked researchers at cybersecurity firm Phylum to provide them with information on North Koreas efforts to use cryptocurrency thefts as a way to circumvent sanctions.

Louis Lang, co-founder of Phylum, told Recorded Future News that the UN was particularly interested in Lazarus Groups attacks and noted that they have seen multiple campaigns from the group.

DPRK cyberattacks account for nearly 45% of their military budget. If memory serves, $3.7 billion in cryptocurrency was stolen in 2023, nearly half of that was the result of DPRK cyberattacks, Lang said.

In the campaigns weve been monitoring, [Lazarus Group] is just different because the motivations are different. The group wants to obtain cryptocurrency, so they target financial and cryptocurrency institutions directly. Theyve been very successful in this case.

Recorded Future

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Jonathan Greig

Jonathan Greig is a Breaking News Reporter at Recorded Future News. Jonathan has worked across the globe as a journalist since 2014. Before moving back to New York City, he worked for news outlets in South Africa, Jordan and Cambodia. He previously covered cybersecurity at ZDNet and TechRepublic.

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Cybercriminals stole $1.7 billion from crypto funds in 2023 as attacks proliferated - The Record from Recorded Future News

About Emily Jarvie

Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The Canberra Times, and... Read more

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A pastor inColoradowho's accused of stealing $1.3 million through acryptocurrencyfraud scheme claimed that God told him to do it.

The Colorado Division of Securitiesreleased a statement last weeksaying Eli Regalado and his wife promoted their cryptocurrency company, INDXcoin, to Christian groups in Denver while telling them the Lord told him his followers would become rich if they invested in his scheme.

The Securities Division stated that Regalado and his wife raised nearly $3.2 million through INDXcoin, and at least $1.3M went to the couple or was "used for their own personal benefit," according to a complaint filed Tuesday in Denver County District Court.

The two were charged with violating anti-fraud provisions under the Colorado Securities Act and are scheduled to appear in Denver District Court next week. In a video statement released to his congregation last week, Regalado said the allegations levied against them that they stole $1.3 million "are true."

"Out of the $1.3 [million], half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do," Regalado said in the video.

The couple allegedly spent the money on a Range Rover, luxury bags, jewelry, trips and so much more.

Colorado Securities Commissioner Tung Chan said she filed the civil fraud charges after those who invested and lost money through INDXcoinspoke to her about what was going on.

"We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies," Chan said in a statement.

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Pastor Accused of Stealing $1.3 Million in Cryptocurrency Scheme Says God Gave Him the Co-Sign - Complex

A Colorado pastor and his wife admitted online they scammed Christians out of $3.2 million worth of cryptocurrency, spending over a million on themselves.

Eligio Eli Regalado and his wife Kaitlyn releaseda YouTube video, in which they confessed to selling worthless cryptocurrency to 300 Christians recruited to invest in INDXcoin through an offering they called Kingdom of Wealth.

So the charges are that Kaitlyn and I pocketed $1.3 million. . . I just want to come out and say that those charges are true, says Regalado in the video, whichhas now been made private.

Last Tuesday, Colorado Securities and Exchange Commissioner Tung Chanfiled civil fraud charges against the Regalados in a Denverdistrict court. The complaint accuses the couple of raising nearly $3.2 million from investors by claiming that God would make them rich. Yet, the cryptocurrency the couple sold was illiquid, the complaint claims.

Regalado spent the money he got in the scheme on aRange Rover, jewelry, luxury handbags, cosmetic dentistry, boat rentals, snowmobile adventures, home renovations and an au pair, according to Commissioner Chan.

Give a gift of $30 or more to The Roys Report this month, and you will receive a copy of The Great Dechurching: Whos Leaving, Why Are They Going, and What Will It Take to Bring Them Back? by Jim Davis and Michael Graham. To donate, click here.

Theres been $1.3 million thats been taken out of, I think it was, a total of $3.4 million, says Regalado in the video.But out of that $1.3, half a million dollars went to the IRS, and a few hundred thousand went to a home remodel that the Lord told us to do.

Regalado preaches at Victorious Grace Church in Denver.According to Chan, Regalado exploited his position to prey on a vulnerable congregation.

We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies, said Chan. New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical.

Yet, inhis video, Regalado implied that officials dont understand the way God works.

Money would come in. Wed tithe. Wed sow, Regalado said. . . . We were just always under the impression that God was going to provide, that the source was never-ending, that God was doing a new thing and that we had nothing to worry about.We sold a cryptocurrency with no clear exit. We did.

We took God at His word . . .And so the prosecutors have to take that and say, These people willingly sold a cryptocurrency with no clear exit. What were praying for, and what were believing for still, is that God is going to do a miracle.

Julie Roys contributed to this report, a version of which originally appeared at CHVN Radio.

Sylvia St. Cyr is an on-air radio host at CHVN, a Christian outlet in Winnipeg, Manitoba, Canada.

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Pastor Couple Charged with Fraud After Selling Millions in Cryptocurrency - The Roys Report