Category: Bitcoin

In a significant turn of events, the crypto world is buzzing with breaking news at the end of this weekend. The arrest of Alex Mashinsky, a prominent figure in the industry, makes a vital step toward justice. Concurrently, Ripple, the blockchain payment protocol, has achieved a substantial legal victory. These developments have propelled the crypto world into the spotlight, generating anticipation and excitement among enthusiasts and investors alike. Stay tuned as we delve into the details of this momentous weekend in the Crypto News Buzz. The Curious Case of Alex Mashinsky’s Arrest: Why was Mashinsky Arrested? On Thursday, the first bit of good news started coming through Alex Mashinsky, the founder and Ex-CEO of Celsius, who was finally arrested. Celsius is the leading crypto lending and borrowing platform that went down last year, leaving thousands of customers facing financial ruin. Last year, Celsius filed for bankruptcy as the platform crashed abruptly. Some of the renowned US institutions (SEC, CFTC, Justice Department, and Federal Trade Commission) accused Mashinsky of manipulating the value of the cell token and wire fraud. Mashinsky Got Bail Approval: After a series of court trials, Mashinsky was officially convicted of the crime on a sunny day on Thursday. However, it took little time for Mashinsky to file for bail on a massive 40-million-dollar bond. Ona Wang, the US Magistrate Judge, approved his bail. Impact of Mashinsky’s Arrest: Nevertheless, his arrest represents a vital step toward Justice. At least, this news will offer some comfort to the many people whose lives have been ruined by him and Celsius. But the question arises when those people will get their money back. Let’s wait and watch what steps the US court will take. Ripple’s Two-Year Legal Battle Came to an End: A Milestone Victory of Ripple and the Crypto World: Let’s proceed to the following breaking news that resulted in the crypto world blooming. On July 13th, Judge Analisa Torres officially passed a decision in favor of Ripple by stating, ‘XRP token is not a security.’ The court states, ‘XRP, as a digital token, is not in and of itself “a contract, transaction or scheme.” As soon as the news broke out, the crypt world celebrated loudly. This two- and half-year battle of Ripple vs. SEC came to an end. Back in 2020, SEC filed a lawsuit against Ripple, accusing their XRP tokens of being a security. However, on the morning of July 13th, it becomes clear Ripple is here to stay and slay. Expert Views on Ripple’s Legal Triumph: Here’s what some of the users on Twitter have to say. Max Hudson, a twitter user tweets, “What a historic win for Ripple,” A big day for the crypto world. This also makes clear that SEC will also lose in the Coinbase lawsuit. Well! Wait and watch. Stuart Alderoty, Ripple’s Chief Legal Officer, took to Twitter to state, A massive win today- as a matter of law-XRP is not a security. Also, a matter of law- Sales on the exchange are not securities. Sales by executives are not securities; other XRP distributions- to developers, charities, and employees- are not securities. Adam Cochran put it in a Twitter quote, 4/5 Overall, a huge win. XRP is one of the more centralized foundations with a key figurehead with standard sales via exchanges and formal distribution programs. If those aren’t Securities, nearly nothing sold via exchanges is. The statement which garnered a tremendous amount of attention on Twitter was by Scott Schneider, the official spokesman of SEC. He states, “We are pleased that that court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances.” How is it a Partial Win for SEC? So, by reviewing SEC statements, the court found that Ripple and its executives are accountable for Whopping $728.9 million in XRP sales to so-called sophisticated investors like Hedge Funds and others. Regarding this matter, Judge told Jury to make a decision soon. Therefore, it’s a partial victory for both Ripple and SEC. Impact of Ripple’s Landmark Success: As soon as the news of Ripple’s legal victory spread worldwide, the prices of XRP and other altcoins saw a massive hike. XRP coins made the high jump with over 90% of the hike. Other altcoins also saw double-digit numbers. Bitcoin reached a new height in months, while Ethereum also significantly jumped. Overall, the crypto market was in party mode these past two days. Moreover, Coinbase also congratulates Ripple on Twitter, simultaneously mocking SEC in their tweet. Future of Ripple and XRP Tokens: With the most significant relief for Ripple, the platform’s founders are working on new upgrades, including decentralized escrow. Moreover, they are expanding its partnerships with some of the leading financial institutions, such as Santander and MoneyGram. On the night of decision got public, XRP saw a massive hike, but let’s see how it will sustain the numbers. Wrapping Up: The recent events in the crypto world have caused a stir, with the arrest of Alex Mashinsky and Ripple’s significant legal win dominating the headlines. Mashinsky’s arrest represents a crucial step towards justice for those affected by the collapse of Celsius. At the same time, Ripple’s victory against the SEC provides a significant boost to the cryptocurrency and its community. The repercussions of these developments have been felt across the industry as prices soared and optimism filled the air. However, with this, a series of questions can be made: What impact will Alex Mashinsky’s arrest have on the affected customers of Celsius, and when can they expect restitution? Or With the surge in prices and market optimism, what could be the potential long-term implications for the crypto market? Or Will Ripple’s success against the SEC influence other pending legal battles in the crypto industry? These questions invite further exploration and analysis of the current landscape as the crypto world continues to evolve and capture global attention. Let’s wait and watch; what’s going to happen soon?

Crypto News: Regulators have taken significant steps to regulate crypto assets in the world of cryptocurrency. The International Organisation of Securities Commissions (IOSCO) has launched a broad framework, while Coinbase, the biggest US-based cryptocurrency market, has announced the launch of an international/global derivatives exchange. However, not all the news is good, as the crypto marketplace- Huobi is facing regulatory action in Malaysia. Here’s a closer look at the latest developments shaping the cryptocurrency scene. Comprehensive crypto asset regulation framework from IOSCO The International Organisation of Securities Commissions (IOSCO) unveil the world’s first comprehensive framework for regulating crypto assets and digital markets. This groundbreaking initiative responds to lessons learned from the collapse of the FTX exchange, which raised significant concerns about protecting consumers in the crypto industry. With different rules and regulations in place in different jurisdictions, the industry has been in favour of a uniform global approach in order to have consistent standards for investor protection and market integrity. These include conflicts of interest, market manipulation, cross-border regulatory collaboration, crypto-asset safekeeping, operational risk and retail client treatment. IOSCO initiative driven by lessons from FTX collapse IOSCO has recognised the urgent need for comprehensive regulation of crypto assets and digital markets, driven by the lessons learned from the collapse of the FTX exchange. The collapse demonstrated the vulnerabilities and risks that exist in the crypto industry. This highlighted the significance of strong investor protection regimes. To address these immediate risks and create a safer environment for market participants, IOSCO has proposed a framework. IOSCO aims to build greater trust and confidence in the rapidly evolving world of cryptocurrencies by addressing issues such as market manipulation and conflicts of interest. Coinbase expands with international derivatives exchange launch Coinbase announce the launch of an international derivatives exchange, which is the largest cryptocurrency exchange in the United States. Furthermore, this strategic move is a part of Coinbase’s ongoing diversification of its business and expansion of its reach beyond the borders of the United States. The Coinbase International Exchange will offer perpetual futures contracts on bitcoin and ethereum. This will be aimed specifically at institutional crypto traders outside the United States. However, before the platform can become operational, it will need regulatory approval from the Bermuda Monetary Authority (BMA). The exchange will initially serve institutional customers outside the United States. it is an important step in the global expansion plans announced by Coinbase in May 2022. Global scaling plans and regulatory challenges for Coinbase In line with its broader global scaling plans, Coinbase is expanding with the launch of an international derivatives exchange. On the regulatory front, however, the exchange is facing challenges. Adding to the legal uncertainties it currently faces, Coinbase recently received a notice from the US Securities and Exchange Commission (SEC) regarding potential lawsuits in several areas of its business. The move highlights the growing scrutiny and regulatory complexity facing cryptocurrency exchanges in the US. Despite these challenges, Coinbase continues its expansion efforts. It is committed to navigating the shifting regulatory landscape to continue offering innovative crypto services globally. Huobi’s regulatory action in Malaysia: Securities Commission orders closure The Securities Commission (SC) of Malaysia took the Regulatory action against Seychelles-based crypto exchange Huobi . The SC has ordered the immediate closure of Huobi’s digital asset exchange in Malaysia for operating without being properly registered. Moreover, it contravenes the Capital Markets and Services Act 2007. The commission publicly reprimanded the exchange and its founder, Leon Li, had ordered to oversee the winding down of local operations. Huobi got orders to cease all communication with Malaysian investors. This was to disable its website and to withdraw its app from the app stores. Concerns about the platform’s compliance with local regulations and the protection of investors’ interests prompted the regulatory action.

We have seen a notable change in the way crypto-hackers behave, with the number of attacks decreasing and the number of stolen funds being returned. In the first quarter of the year 2023, crypto attacks fell by a staggering 70% compared to the same period of the last year, according to a recent report from blockchain intelligence firm – TRM Labs. Besides, victims are recovering almost half of the stolen funds, as hackers are increasingly settling for ‘white hat’ rewards from misused projects. This shift in Crypto hacking patterns indicates an increasing emphasis on ethical practices and highlights the influence of increased regulatory attention and high-profile enforcement cases in the cryptocurrency sector. Cryptocurrency landscape and Crypto hacking risks Cryptocurrency is a digital or virtual currency which uses cryptography to protect financial transactions. It control the creation of new units and verify the transfer of assets. In recent years, both investors and hackers have become increasingly interested in these decentralised digital assets. Hackers have targeted various platforms and projects to exploit vulnerabilities and steal funds. Cryptocurrency hacks have been a persistent concern within the industry. But a recent report from blockchain intelligence company TRM Labs reveals a notable shift in cryptohacking activity. Fall in cryptohacking and return of funds by hackers A significant decrease in crypto hacks and an encouraging trend of hackers returning stolen funds was seen in the first quarter of 2023. According to TRM Labs, a blockchain intelligence firm, hackers have stolen approximately $400 million from crypto projects in the first three months of 2023, across 40 attacks. That’s down 70% from the same period in 2022, though. Decrease in crypto hacking and average hack size in Q1 2023 The decline in usual hack size along with the decline in the number of crypto hacks is a positive aspect. According to TRM Labs, the average hack size in the first quarter of the year 2023 was $10.5 million, compared to $30 million in the year 2022. This reduction is an indication of a positive trend towards smaller-scale attacks. Growing trend of hackers returning stolen funds for white hat rewards An interesting development is the increasing trend of hackers returning stolen funds in exchange for white hat rewards from the exploited projects. Hackers voluntarily returned some of the stolen funds in exchange for a white hat reward in several cases during Q1 2023. For instance, a hacker exploiting TenderFi returned half of $1.6 million stolen and was rewarded with $850,000. Likewise, the attacker behind the Euler Lending Protocol exploit agreed to return all the $200 million in crypto stolen. These returns demonstrate a shift towards more ethical hacking methods. Factors affecting the return of stolen funds The increase in the return of stolen funds by hackers is due to a number of factors. One key factor is the growing regulatory focus on crypto hacks and scams. Exchanges have tightened their KYC and AML policies to prevent hackers from cashing in stolen coins undetected. In addition, the avenues for cashing out stolen cryptocurrencies have been limited by US sanctions on Tornado Cash and ETH-mixing protocols. This have led to the blacklisting of associated funds on regulated exchanges. In addition, it has become more difficult for hackers to unload their ill-gotten gains due to high-profile enforcement cases and public tracking of stolen funds. Mango Market Protocol and the Avraham Eisenberg case The arrest of Avraham Eisenberg in December is a notable enforcement case. Eisenberg was the first known person arrested for a decentralised finance exploit. He publicly admitted to exploiting the Mango Markets protocol that revealed a vulnerability and prompted action. Cases like this act as warning signs for potential hackers. This can contribute to an increase in the return of stolen funds. Hackers returning stolen funds Q1 2023 There have been notable cases of hackers returning stolen funds in Q1 2023. The intruder that unlocked the Safemoon protocol gave back $7.1million of the stolen crypto and kept the rest of the $9million haul. These cases of returning stolen funds show a growing willingness among hackers to behave ethically and cooperate with victimised projects. Historical examples of the return of stolen funds by DeFi hackers There is nothing entirely new about this trend of hackers returning stolen funds. In previous cases, DeFi hackers have also chosen to return stolen funds. For example, the Defrost Finance and Nomad Bridge hackers in 2022, the Poly Network hackers in 2021 and the dForce hackers in 2020. These cases highlight the evolving landscape of ethical hacking practices in cryptocurrency. March 2023 Estimated Toll of Hacks and Fraud As reported by Crystal Blockchain, the estimated toll of hacks and scams of crypto market in March 2023 was $119 million. This downward trend in both the number and average size of hacks is proves that the cryptoscape is becoming safer.