Dozens of citizens were killed in Kenya as a result of riots seeking to protest the possible signing of a bill that would approve tax hikes on daily services and items, such as internet and fuel, in a plan to raise an additional .7 billion in revenue. The protests, led mostly by young Kenyans who […]
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From Rollups to Sidechains, L2 Watch Catalogs Dozens of Bitcoin Layer 2 Solutions
In recent years, attention towards layer two (L2) scaling solutions for Bitcoin has persisted, though bitcoin capacity in the Lightning Network has seen a decline. In recent years, other varieties of L2 solutions have emerged, capturing the attention of the crypto community. On March 19, 2024, the lead developer at Blockchair unveiled L2 Watch, an […]
Bitcoin News
Fireblocks Discloses Bitforge Vulnerabilities Affecting Dozens of Wallet Providers
Fireblocks, a digital assets security company, has disclosed vulnerabilities affecting several cryptocurrency wallets, collectively named “Bitforge.” Through these vulnerabilities, criminals could steal millions in cryptocurrency without having direct contact with the owners of the wallet or its providers. While some providers have already applied patches, others are still vulnerable.
Bitforge Vulnerabilities Disclosed
Fireblocks, a cryptocurrency assets security and consulting company, has publicly disclosed Bitforge is facing a set of wallet vulnerabilities potentially affecting millions of customers. While the Fireblocks team discovered these issues back in May, it just announced their existence in a presentation titled “Small Leaks, Billions Of Dollars: Practical Cryptographic Exploits That Undermine Leading Crypto Wallets” as part of the Blackhat 2023 conference.
These vulnerabilities attack the Multi-Party Computation (MPC) algorithms of several vendors. The first vulnerability is related to GG18 and GG20, two protocols qualified by Fireblocks as “pioneering for the MPC wallet industry” and “widely adopted by companies in the space.”
The exploit allows criminals to exfiltrate the private key and take control of the cryptocurrency in the attacked wallet. Fireblocks also presented a proof-of-concept for this attack.
Similarly, the second vulnerability deals with Lindell17, a signing protocol. Fireblocks states this exploit “originates from Lindell17 implementations deviating from the specification of the academic paper and ignoring or mishandling aborts in case of failed signatures.”
This vulnerability was discovered in the Zengo wallet and later confirmed to work against Coinbase Wallet as a Service (WAAS), as in open-source protocol implementations. Zengo and Coinbase have already patched their wallets to deal with this exploit.
Jeff Lunglhofer, Chief Information Security Officer at Coinbase, thanked Fireblocks for the timely disclosure, telling Bleeping Computer that “while Coinbase customers and funds were never at risk, maintaining a fully trustless cryptographic model is an important aspect of any MPC implementation.”
Vulnerability Checker
Due to the number of wallets potentially affected by this set of vulnerabilities, Fireblocks has built a utility to allow wallet providers and users to check if their wallets can be exploited using these vulnerabilities.
At the time, only Coinbase and Zengo are listed as secure against the Lindell17 exploit. Fireblocks explained that not all wallet providers are shown because “it’s part of the DNA of the industry to work together to be stronger out of the public eye rather than calling companies out publicly and harming their credibility.”
What do you think about the Bitforge set of wallet exploits? Tell us in the comments section below.
Report: Dozens of Chinese Nationals Arrested in Libya for Operating Illegal Crypto Mining Farm
Around 50 Chinese nationals have reportedly been apprehended by Libyan authorities following allegations of running a cryptocurrency mining facility within the city of Zliten, local reports detail. Cryptocurrency mining is strictly prohibited by law in Libya. Libyan law enforcement officials have disclosed that the mining operation, situated in an abandoned iron factory, was effectively dismantled.
Illegal Cryptocurrency Mining Operation Busted in Libya, 50 Chinese Nationals Arrested
The New Arab, on June 23, 2023, published a report revealing the Libyan attorney general’s office’s announcement of the arrest of 50 Chinese nationals involved in crypto mining activities in Zliten. Siddiq Al-Sour, the attorney general (AG), shared visual evidence, including photographs and videos, showcasing the mining campus located in the eastern part of the Tripoli province. Furthermore, preceding the detention of the 50 Chinese individuals, ten individuals associated with the operation had already been arrested two days prior.
As reported by middleeasteye.net, the Libyan attorney general’s office has expressed concern over the operation, stating that it “violates the law” and highlighting the utilization of “high-energy devices [that] harness a large amount of material to mine cryptocurrencies.” Additionally, the report mentions that Libyan officials are actively seeking experts to evaluate the extent of the impact on the “public interest.” While both accounts confirm the arrest of 50 individuals, specific information regarding the number of dismantled machines has not been disclosed.
“The mining systems included a matrix of wires connecting digital conversion systems, data servers, fans, and high-voltage refrigerators,” middleeasteye.net staff writers declared.
Despite the official prohibition of cryptocurrency mining in Libya, the country continues to entice miners due to its highly advantageous energy conditions. With electricity costs as low as .004 per kilowatt hour (kWh), which amounts to less than a U.S. penny, it is still an attractive location for setting up mining operations. Interestingly, in 2021, Libya achieved the highest Bitcoin production rate among all African regions across the continent, despite the ban on the practice. Similarly, China, where crypto mining is also banned, still accounted for 20% of the global hashrate in May 2022.
What are your thoughts on the trend of cryptocurrency mining operations in areas where they are banned? Share your thoughts and opinions about this subject in the comments section below.
DeFi Boom: Compound, THORChain, Kava & More Gains Dozens of Percent
Multiple decentralized finance (DeFi) focused cryptocurrencies have seen parabolic performances in the past few days. This comes in spite of the fact that Bitcoin finally broke out on Monday morning, surging from the ,700 it was holding at to ,100 in a rapid rally.
Analysts expect this interest in coins like Band Protocol (BAND), Balancer (BAL), Compound (COMP), Kava (KAVA) and THORChain (RUNE) to eventually materialize in Ethereum. Ethereum, after all, is easily the flagship blockchain of the DeFi ecosystem.
Related Reading: “Rich Dad Poor Dad” Author: Bitcoin Could Soon Become the “Fastest Horse”
DeFi Tokens Explode Higher as Bitcoin Moves
Over the past few days, DeFi-centric tokens have literally gone parabolic. Below is a screenshot from Coin Market Cap of the top-performing cryptocurrencies in the past 24 hours (top-100 digital assets).
A key theme running through the crypto assets listed is that a majority of them are tokens for DeFi protocols.
- BAND, a cryptocurrency for the Band Protocol, is up 50% in the past 24 hours. The asset is now up by approximately 200% in the past week alone. Band is an oracle project, meaning it provides financial data and other data for on-chain applicaitons.
- Ampleforth (AMPL), an unbacked stablecoin “experiment” (as some have dubbed it) is up 26.5% in the past 24 hours.
- Ren Network’s REN token is up 24% in the past 24 hours. Ren Network is a project focused on “providing access to inter-blockchain liquidity for all decentralized applications.”
- And much more.
Screenshot from Coin Market Cap of the top-performing cryptocurrencies in the top 100 over the past 24 hours. Current as of Monday morning, the morning of Aug. 9.
Related Reading: Crypto Tidbits: Bitcoin Explodes Past k, Ethereum 2.0 Nears, Cardano’s Shelley Launches
Ethereum Could Rally Next
ETH has not been rallying as fast and as far as DeFi-based altcoins based on Ethereum blockchain. But, a fund manager in the space says that the interest in DeFi could soon materialize in ETH.
Spencer Noon, the head of DTC Capital, recently said on the matter:
“My read on #DeFi after speaking with instl investors, fund mgrs, OTC desks, and FOs over the last few wks: The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”
This has been echoed by Qiao Wang, a former head of product at Messari. The cryptocurrency trader/entrepreneur made the following comment on the matter:
“After a pretty ridiculous breakout in the DeFi sector and making it to mainstream media, get ready for the next leg up in the majors. The retail and dumb institutional psychology is that the majors are decent proxies for the individual sectors. An ‘index play’.”
Don't see a huge amount of risk until the election TBH. So maybe get a bit more conservative in September/October.
— Qiao Wang (@QWQiao) August 8, 2020
Wang added that investors are likely to be risk-focused until September/October, when the market begins to start betting on the outcome of the 2020 Presidential Election for the U.S.
Related Reading: How U.S. Restrictions on Wechat & Other Chinese Brands Could Boost Crypto
Featured Image from Shutterstock Price tags: Charts from TradingView.com
DeFi Boom: Compound, THORChain, Kava & More Gains Dozens of Percent
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Dozens of Decentralized Exchanges Making Their Mark on Cryptocurrency Industry
The world of cryptocurrency exchanges will undergo some big changes. Centralized services remain popular, but decentralized solutions are gaining more traction. inDEX is an interesting list of various decentralized exchanges (DEX) on the market today. As such, a few key statistics are worth looking into.
A Booming Business for DEX
The decentralized exchange ecosystem is still in the early stages of development. While a few products and solutions exist already, there is still plenty of work to be done. Having more competition in the DEX industry is never a bad thing. Over half of the platforms tracked by inDEX are still waiting to go live at this stage.
Among those projects, we mainly see new protocols which can make a positive impact moving forward. Unlike centralized trading platforms like Coinbase and Bitstamp, these new protocols are very different. In most cases, there will be no need to register for an account, nor will users perform a KYC procedure. Additionally, there is no limit as to which trading pairs can be created across the various decentralized exchanges.
One thing to keep in mind is how most platforms focus on ERC20 tokens in the first stage. That is not entirely surprising, as these tokens are in high demand at all times. Moreover, they allow for some very intriguing trading pairs which wouldn’t be possible across other platforms. Given how most centralized exchanges hold off on adding these tokens, a DEX can make a big impact.
Expanding the Decentralized Exchanges
It is expected some of these decentralized exchanges will focus on other currencies and tokens as well. Bitcoin, NEO assets, and other currencies will all be supported eventually. Very few protocols are looking to take the plunge in this regard, though. A very interesting situation well worth keeping an eye on as more time progresses. Some are already operating with well known tokens such as Stellar Lumens (XLM), OmiseGO (OMG), Bitshares (BTS), Komodo (KMD), Decred (DCR), Waves, Kyber Network (KNC), NTX and 0x.
The big question is whether or not decentralized exchanges can rival traditional solutions. Consumers demand convenience first and foremost. Additionally, a DEX may not necessarily support fiat currency transactions either. As such, there is still a lot of work to be done before DEXes will make their mark. They offer advantages, but also some drawbacks.
Integrating all of these protocols will also be somewhat challenging. Not every blockchain may accommodate decentralized exchanges or their protocols as of right now. Collaboration will remain key in the world of cryptocurrency at all times. If these projects can focus on other currencies and even fiat currency support, an interesting future lies ahead. These are still the early stages of decentralized exchanges, after all.
Image from Shutterstock
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US, Canadian Regulators Launch Dozens of Crypto Scam Probes
An “international crackdown” on cryptocurrency scams was launched Monday by a group of securities regulators.
CoinDesk