Ripple’s chief legal officer has countered the U.S. Securities and Exchange Commission (SEC)’s allegations following the crypto firm’s proposal to limit its penalty to no more than million. The legal chief highlighted that the SEC is “raging” and emphasized that, unlike the Terraform Labs case, there are no victims to compensate in Ripple’s case. […]
Bitcoin News
Crypto Exchanges Helping Brazilian Flood Victims
Several cryptocurrency firms are stepping up to support flood victims in Southern Brazil. For example, Okx has partnered with Brazilian cryptocurrency exchange Foxbit to match donations of up to ,000 to the “Ajude o Rio Grande do Sul” emergency campaign, channeling funds to non-governmental organizations (NGOs) in the affected areas. Similarly, Bingx is doubling cryptocurrency […]
Bitcoin News
Change Of Heart: Crypto Scammer Returns $34.7 Million To Victim’s Address
A week ago, a crypto whale fell victim to a scam that resulted in the loss of over million. In the following days, the scammer moved the funds to veil them. But in a shocking turn of events, they returned the funds to the victim.
Address Poisoning Scam Snatches Million
On May 3, whale 0x1E22…8FD5 lost 1,155 Wrapped Bitcoin (WBTC), worth around .31 million, after falling victim to an address poisoning scam. This scam, also known as address spoofing, consists of trying to trick users into sending funds to fraudulent lookalike accounts.
#PeckShieldAlert #Phishing A whale 0x1E22…8FD5 lost ~1,155 $WBTC (worth ~ million) after falling victim to address poisoning.The phisher has swapped the stolen $WBTC for ~23K $ETH & transferred them out pic.twitter.com/dr7eTYQkAX
— PeckShieldAlert (@PeckShieldAlert) May 3, 2024
The “vanity addresses” are custom-made with specific characters that look like the intended recipient’s address. Scammers send transactions of no value, hoping the similarity between the addresses will fool the user under attack.
If successful, victims copy the fraudulent address from the previous transactions and accidentally send their assets to the scammers instead.
PeckShieldAlert reported that the phisher immediately swapped the stolen WBTC for 23,000 Ether (ETH) before transferring them to a different address. Throughout the following days, the scammer laundered the funds. Sending them to ten different addresses before distributing the tokens through over 100 other addresses.
This development painted a looming picture for the crypto whale. At this point, the funds appeared to be unrecoverable. One user called the massive number of transfers a “crypto musical chairs” game.
Others justified the scammer, claiming he had not stolen the funds, as “he just received them.” This stance disregards the transaction’s nature. The transfer occurs under the belief that funds are safely being transferred to the intended account and not a lookalike.
Moreover, the lookalike address is in the victim’s transaction history, clearly intended to deceive the user into receiving funds not meant for them.
Change Of Heart Or Scared Of The Crypto Community?
In a shocking turn of events, the scammer sent 51 ETH, worth around 3,000, back to the victim on Thursday. Alongside the funds, the phisher sent a message asking to contact the whale, seemingly looking to negotiate.
The reasons behind the sudden change of heart remain a mystery to the community. Many are jokingly theorizing why the scammer returned the funds. One X user playfully suggested that the phisher feared being investigated by crypto sleuth ZachXBT.
Others claimed that “even the scammer doesn’t want ETH,” referencing the criticism the second-largest cryptocurrency has faced after its performance during this cycle.
In the early hours of Friday, PeckShieldAlert revealed that 2,683.7 ETH, worth about million, had already been transferred to the whale from nearly 50 different addresses. A couple of hours later, an update showcased that around 50% of the total funds had been returned, accounting for 11,446.87 ETH, or .7 million.
Retrieving all the assets might take time due to the large number of addresses holding the funds. At the time of writing, over million worth of ETH has already been returned, and the transactions continue.
Chinese Fraud Victims Seek Government Aid in Recovering 61,000 BTC Seized by UK Law Enforcement
A group of Chinese victims of a billion fraud scheme have requested assistance from their country’s foreign ministry in recovering 61,000 bitcoins, seized from a fraudster and her associate. The fraud victims have strongly opposed attempts to transfer the ownership of these bitcoins to the U.K. government. Petition Garners More Than 2,500 Signatures A […]
Bitcoin News
Phishing Scammers Stole $47 Million From 57,000 Victims in February Alone — Report
Nearly million was stolen from approximately 57,000 crypto users by criminals who use phishing scams to lure victims. The Scam Sniffer data highlights that most of the thefts occurred on the Ethereum chain, with ERC-20 tokens being the most targeted. Unlike in January, the number of victims who lost digital funds exceeding million […]
Bitcoin News
Ledger Commits To Full Restitution For Victims Of $600,000 ConnectKit Attack
Hardware wallet manufacturer Ledger has responded to a recent security breach resulting in the theft of 0,000 worth of user assets.
The company has pledged to enhance its security protocols by eliminating Blind Signing, a process where transactions are displayed in code rather than plain language, by June 2024.
Ledger Takes Responsibility For ConnectKit Attack
In a statement, Ledger emphasized its focus on addressing the recent security incident and preventing similar occurrences in the future.
The company acknowledged the approximately 0,000 in assets that were impacted by the ConnectKit attack, particularly affecting users blind signing on Ethereum Virtual Machine (EVM) decentralized applications (dApps).
Furthermore, Ledger pledged to make sure affected victims are fully compensated, including non-Ledger customers, with CEO & Chairman Pascal Gauthier personally overseeing the restitution process.
According to the statement, Ledger has already initiated contact with affected users and is actively working with them to resolve their specific cases.
In addition, by June 2024, blind signing will no longer be supported on Ledger devices, contributing to a “new standard of user protection” and advocating for “Clear Signing,” which refers to a process that allows users to verify transactions on their Ledger devices before signing them across dApps.
On this matter, Ledger’s CEO Pascal Gauthier stated:
My personal commitment: Ledger will dedicate as much internal and external resources as possible to help the affected individuals recover their assets.
Heightened dApp Security Measures
According to an incident report released by the hardware wallet manufacturer, the attack exploited the Ledger Connect Kit, injecting malicious code into dApps utilizing the kit.
This malicious code redirected assets to the attacker’s wallets, tricking EVM dApp users into “unknowingly signing transactions” that drained their wallets.
Ledger addressed the attack by deploying a genuine fix for the Connect Kit within 40 minutes of detection. The compromised code remained accessible for a limited time due to the nature of content delivery networks (CDNs) and caching mechanisms.
Ledger acknowledged the risks faced by the entire industry in safeguarding users and emphasized the need to continually raise the bar for security in dApps.
The company plans to strengthen its access controls, conduct audits of internal and external tools, reinforce code signing, and improve infrastructure monitoring and alerting systems.
Additionally, Ledger will educate users on the importance of Clear Signing and the potential risks associated with blind signing transactions without a secure display.
Notably, with Clear Signing, users are presented with a clear and readable representation of the transaction details, enabling them to review and validate the transaction before providing their signature.
This added layer of transparency and verification helps users mitigate the risks associated with front-end attacks or malicious code injected into decentralized applications
Featured image from Shutterstock, chart from TradingView.com
Israeli Crypto-Based Aid Organization Says Nearly $200,000 Raised for October 7 Terror Victims
Nearly 0,000 has been raised by a non-profit organization launched by members of Israel’s Web3 community. More than 30 Web3 companies have since joined the campaign while the accounting firm KPMG is said to be assisting with fundraising and distribution.
Web3 Companies Join Campaign
Crypto Aid Israel, a non-profit organization launched by influential leaders within the Israeli Web3 community, said nearly 0,000 has been raised as part of the Emergency Relief Initiative. Some of the funds raised have been distributed to organizations leading relief efforts for victims of the Oct. 7 attacks by Hamas.
.@CryptoAidIsrael with almost 0K in Donations as 30+ Global Web3 Companies Join The Initiative
Am Israel Chai
#StandWithIsrael pic.twitter.com/WAU5FpTj5N
— CryptoAidIsrael (@CryptoAidIsrael) October 24, 2023
According to a statement issued by the aid organization, more than 30 Web3 companies have joined the campaign. The accounting firm KMPG is said to be assisting with fundraising and distribution of the funds. The other companies contributing to the campaign include crypto wallet provider Zengo, Fuse, Wonderland and Psagot Equity.
Commenting on his organization’s achievement, Tim Freed, a senior leader within Crypto Aid Israel, said:
We are deeply humbled by the outpouring of support from the global crypto community. Together, we have made significant strides in our mission to assist those affected by the recent wave of Hamas terrorism. The completion of two rounds of aid distribution shows how crypto can be used as a force of good in the world.
Freed added that Crypto Aid Israel remains committed to transparency and is still determined to continue with its objective of assisting those directly affected by the Hamas attacks. Some of the non-government organizations that have already funding from Crypto Aid Israel include the Foundation for Advancing Citizens of Eshkol Regional Council, Zaka, Lev Echad by Or Hanegev veHagalil and Latet.
Although Crypto Aid Israel has committed itself to helping victims of the terror attacks, the organization’s platform has suffered serious phishing attacks. However, according to the statement, after the attackers briefly took the aid organization’s website this interruption was promptly addressed by Crypto Aid Israel’s hosting provider.
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Crypto Aid Israel Fundraiser to Help Victims of Hamas Assault
Members of Israel’s Web3 community have launched Crypto Aid Israel, a fundraiser in support of those affected by the conflict with Hamas. The goal is to attract cryptocurrency donations to relieve the humanitarian situation of thousands of Israelis displaced by the surprise attack of Palestinian militants from Gaza.
Web3 Firms Unite in Crypto Aid Israel Initiative Amid War With Hamas
A group of companies from the Web3 space, including the Israeli Blockchain Association, announced they have come together to launch Crypto Aid Israel. The fund will raise donations in digital assets for Israeli citizens suffering from what their government calls a war with Hamas.
On Oct. 7, the militant Palestinian movement, designated as a terrorist organization by a number of nations, launched a large-scale invasion by land, air and sea of Israeli territories in the south from the Gaza Strip which it controls. On Tuesday, the death toll in Israel reached 900, with hundreds of thousands of people forced to leave their homes on both sides.
Crypto Aid Israel, which was launched on Monday, just two days after the start of the unexpected Hamas offensive, seeks to channel crypto funds to Israelis who need humanitarian assistance. It’s backed by platforms like Cryptojungle, Collider Ventures, 42studio, and Marketacross among others. The team explained:
Due to the ongoing war in Israel, a collective of local leaders in the crypto space have joined together to establish Crypto Aid Israel. Our goal is to raise desperately needed funds for displaced citizens whose unbearable situation demands humanitarian aid.
Donations are accepted in over a dozen cryptocurrencies and stablecoins, including bitcoin (BTC), ethereum (ETH), tether (USDT), and USD Coin (USDC). A multi-signature wallet will be used for the coins and they will be stored and managed by crypto custody firm Fireblocks, reportedly with the help of Israeli banks. More than ,000 has been collected already:
Appreciate everyone who has supported 🙏 K and growing 🚀#CryptoAidIsrael https://t.co/9nCJCpLUoN
— GuyNFT (@GuyImprov) October 10, 2023
Meanwhile, the local press reported that Israeli law enforcement has been working with the Defense Ministry and intelligence agencies to freeze cryptocurrency accounts of Hamas. The effort is led by the cyber branch of the Israel Police’s Lahav 433 unit, also known as the “Israeli FBI.”
According to the Times of Israel online newspaper, crypto exchange is cooperating with Israel to identify and shut down the accounts used by the Palestinian group to raise funds. Lahav 433 was also working with the U.K. police to freeze a bank account at Barclays.
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Report: Victims of South African BTC Scam Set to Receive Portion of Invested Funds
Some investors who invested in the South African bitcoin pyramid scheme MTI are set to receive part of their money back once a court rules on how liquidators are supposed to handle claims. Liquidators expect to make more than one payout to affected investors while the process itself is expected to last between two and three years.
Net Losers to Get Between 50% and 60% of Their Money Back
The liquidators of Mirror Trading International (MTI), an online bitcoin investment scam, are planning to start refunding victims once a court advises them on how to handle the claims, a report has said. According to Herman Bester, a co-director at Tygerberg Trustees, liquidators also want the court to clarify how deposits received from investors in the form of BTC are to be treated.
However, according to a report in Mybroadband, Bester and his colleagues stopped short of confirming a plan that will see the so-called net losers only getting between 50% and 60% for every dollar they invested. The funds for the reimbursement scheme would be obtained from the sale of approximately 7,000 BTC. These are the coins remaining from the more than 39,000 BTC that liquidators say were initially deposited into the scheme.
Concerning the number of users that are set to benefit from this scheme, Bester reportedly said liquidators were already in the process of identifying and distinguishing individual investors from the rest of the victims. He added:
“Our forensic experts, after a meticulous process of clustering, calculated now the expected number of potential claims.”
Meanwhile, the liquidators said they do not expect all victims, especially those suspected of using crypto to launder money or for other “dubious purposes,” to submit claims.
With respect to the timeframe for reimbursing victims, the liquidators reportedly said they hope to make more than one payment since they expect “to continue with collections from winners who must repay their winnings.” Bester said liquidators expect this to “continue for at least another 2–3 years.”
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Report: Binance’s Decision to Airdrop $3 Million to Morocco Earthquake Victims via BNB Token Criticized
Cryptocurrency exchange Binance has been criticized for pledging to help victims of Morocco’s devastating earthquake by airdropping its native crypto token. According to Action on Armed Violence’s Iain Overton, people affected by the earthquake are only interested in getting immediate assistance and not crypto.
Binance Accused of Using Devastation to Prop Up Its Image
, one of the top cryptocurrency exchanges globally, has been criticized over its decision to donate its crypto token known as BNB to Moroccans in places most affected by the recent earthquake. Some critics accuse Binance of using the devastation caused by the earthquake to boost its image.
According to the Red Cross, Morocco’s 6.8 magnitude earthquake has killed more than 2,800 people and affected more than 300,000. In some places, like the isolated Atlas Mountains, entire villages were left almost completely destroyed. In response, well-wishers including Binance have pledged financial assistance.
In a statement, Binance, which claims to have over 70,000 users in Morocco, said it would airdrop BNB tokens worth 0 to users in the Marrakesh-Safi Province area who completed the so-called proof of address (POA) before Sept. 9.
For users yet to complete the POA, Binance has promised to airdrop BNB worth , while active users in less affected areas are expected to get worth of BNB. The crypto exchange said this process will see BNB worth nearly million being transferred to the accounts of Binance users in Morocco.
Earthquake Victims Not Interested in Crypto
However, in his reaction to Binance’s proposal, Iain Overton, the executive director of Action on Armed Violence, chastised the crypto exchange for seemingly choosing to prioritize its commercial interests.
“Those affected by the catastrophe will never hear of it, and those unaffected by the catastrophe may come away with a positive notion of [Binance’s] brand. It’s cynical at best,” Overton reportedly said.
The executive director added that the affected people are only interested in getting immediate assistance and not crypto. Similar sentiments were echoed by the International Federation of Red Cross and Red Crescent Societies.
However, despite Overton and others’ criticism of crypto donations in general, such donations have been credited with helping Ukraine when Russia invaded the country in February 2022. As the Ukraine conflict has shown, Binance is not the first crypto or blockchain platform to use the plight of affected people for marketing purposes.
When the Ukrainian government accepted Gavin Wood’s challenge to produce an address for DOT — the native token of Polkadot — the latter responded by donating digital tokens worth over million. At around the same time, Justin Sun, the founder of Tron, pledged to donate million if the Ukrainian government posted a TRX address. Soon afterwards, the Ukrainian government announced that it was accepting donations in the form of 70 different digital assets.
Meanwhile, in addition to the BNB airdrop, Binance revealed in its Sept. 11 statement that it had launched a public donation address for anyone to contribute. In addition to BNB, well-wishers can also donate via BTC, ETH, USDC, USDT, or BUSD.
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