The US Treasury blacklisted a Russian cryptocurrency exchange due to the facilitation of illicit transactions aimed at ransomware hackers

The United States of America government managed a sanction on a cryptocurrency exchange based in Russia. The reason is the link of transactions to ransomware attackers. The move is part of an effort by authorities to combat growing ransomware attacks.

The US Department of the Treasury included Russian cryptocurrency exchange Suex.io to its list of Specially Designated Nationals (SDNs) for allegedly making transactions easier for ransomware attackers. The transactions could surpass $ 160 million.

The designation placed Suex in a category with suspected terrorists and drug traffickers. This sanction means that US citizens and companies can not do business with the said platform.

Otherwise, these American companies or citizens could face a fine or even go to jail. In addition, the move makes Suex the first crypto exchange designated as such by a US federal agency.

Russian Exchange is on the US blacklist

The Treasury Office of Foreign Assets Control (OFAC) alleged in a statement that the exchange helped transact funds that got acquired through illicit means, including transactions linked to about eight ransomware variants.

The analysis from the agency suggests that more than 40% of known transactions had a connection in various ways to such malicious acts.

Undersecretary of the Treasury, Adewale Adeyemo, in a press call quoted by CoinDesk said that exchanges like Suex are critical to attackers’ ability to profit from ransomware attacks. The action against the exchange represents the US authorities’ intentions to disrupt the illicit infrastructure used in said attacks.

The measure comes amid a push by President Joe Biden’s administration to combat ransomware. The efforts follow a series of high-profile attacks on US companies, including interstate gas provider Colonial Pipeline and meat processor JBS.

Ransomware is a malicious software-based attack that obstructs the gateways to data and computer networks until the victim pays a ransom. Hackers often request payments in digital currencies because these can be more difficult to track than other payment methods.

Suex Made Crypto Operations Easy for Hackers

According to Chainalysis, at least $ 13 million in bitcoin transactions sent through Suex got directly linked to ransomware attacks. The scammers sent another $ 24 million in bitcoin, while another $ 20 million remained tied to Hydra and other darknet markets.

Overall, the Russian exchange has acquired more than $ 480 million in cryptocurrency transactions since February 2018, according to Chainalysis. Of that figure, at least $ 160 million goes to illicit activities. These funds are usually in BTC, Ethereum, and Tether, the analytics firm revealed.

According to the investigation, Suex has its legal registration in the Czech Republic. However, it does not count on physical presence there. It operates in Moscow and St. Petersburg; it also works in Russia and the Middle East.

Suex also acquired more than $ 50 million in Bitcoin from addresses hosted by the previous cryptocurrency exchange BTC-e, which US officials closed due to alleged money laundering activity.

By: Jenson Nuñez

Some platforms would allow users to link identities with the Ethereum addresses they use. There are ways to safeguard privacy and security when using DeFi platforms

Decentralized finance platforms, also called DeFi were the main players of the cryptocurrency ecosystem during 2020. Although other trends are attracting attention, DeFi is still active and represents a good option for users.

When it comes to being measured by the money deposited in smart contracts, 2020 could be compared to the nearly $ 100 billion that decentralized finance came to hoard earlier this month; At least Four times more than the previous year’s maximum.

One of the motivations of many DeFi users, which leads them to prefer them over centralized services, is the sense of security and privacy.

On the decentralized exchange Uniswap, it is possible to exchange ERC-20 tokens without giving up custody of funds or providing personal data. These procedures differ from centralized exchanges like Binance or Coinbase.

For those users who want to generate interest with the crypto assets they own, in the field of DeFi there are protocols such as Yearn Finance.

These protocols allow users to acquire a higher profit than those protocols offered by centralized platforms such as Blockfi; all this without the need to complete KYC (Know Your Customer) verifications.

Security and Privacy in DeFi Might not be What Users Think

An investigation sustained by specialists from the Brave Software company, and the Imperial College London educational institution discussed whether DeFi is safe and private. The conclusion is that many of these platforms have features in their code that allow these areas to receive violations and disruptions.

The researchers explained that various decentralized finance platforms implement third-party scripts. These are relatively simple sequences of code written by someone other than the DeFi developers.

The specialists stated that if a DeFi site incorporates scripts, those scripts can interact with the user’s wallet API, so this interaction could phishing attacks easier. They added that 66% of decentralized finance protocols implement at least one script.

A phishing attack intends to trick a person into taking actions that they should not take, such as sending money to an address added by the attacker.

The case of the 1inch decentralized exchange is relevant. This exchange adds a script to facilitate communication between the user and the support staff.

According to the study authors, the service comes from a third party and gets embedded in a position that gives users full control over the 1inch domain.

So if that chat implementation is compromised, it could steal funds from users’ wallets or transact directly from there. The professionals who studied the platforms assured that these transactions should receive approval from users.

On the other hand, regarding the nature of scripts, Brave Software and Imperial College indicated that 56% of the 78 DeFi platforms analyzed incorporate at least one Google script.

This analysis has a vital impact on privacy, as these analysts explain, to the point that it would be possible for Google to link Ethereum addresses with specific identities.

By: Jenson Nuñez

The decree got signed by the Executive Power on Friday, September 17. Economists are afraid of the inflationary consequences that would come with the measure.

A decree signed by the president of Argentina, Alberto Fernández, on the night of Friday, September 17, authorized the issuance of 422 billion pesos (ARS), which is equivalent to USD 2.28 billion at market price.

The Government desires to implement a monetary issue to finance the fiscal deficit. This new issue would affect the remainder of 2021 or the upcoming year.

The measure got signed surprisingly while the new cabinet of ministers received its announcement, a fact that caught the attention of the press. This happened after the massive resignations of officials, and the defeat of the ruling party in the primary legislative elections on Sunday, September 12.

The economist Matías Surt, from the consulting firm Invecq, speculates that they will manage billions of pesos, and try to purchase the November vote. According to him, to achieve this goal, the current administration does not mind keeping the fueling of inflation.

The professional also explained that the Treasury could sell special drawing rights (SDR) from the IMF to the Central Bank (BCRA) due to the presidential decree.

When the time comes to pay the debt to the IMF, the Treasury will take the SDR from the BCRA and bring it a non-transferable bill that, according to Surt, would be a simple piece of paper.

An interesting Increase in the minimum wage, bonds, and credits subsidized by the actual government

This week, the national administration seems to have started its plan to give away money and put it inside people’s pockets, with little more than a month left before the legislative elections on November 14.

According to local press reports, a package of economic measures announced in the coming days would include a high peak in the minimum wage.

The measure also adds bonuses for retirees and pensioners and 12-month interest-free loans subsidized by the administration.

In this predictably inflationary environment for Argentina, the citizens who have savings capacity in that South American nation intend to protect their assets in stronger currencies, with the dollar being the most used alternative.

The restrictions to access the US currency (no more than USD 200 per month can get legally acquired) had made many citizens describe bitcoin (BTC) as a primordial tool to protect their assets.

This protection intends to save citizens’ finances from the constant devaluation that the national currency has been experiencing in the late years.

Unlike what happens with fiat money, which can get issued inorganically by national governments, BTC has a predefined issuance rate, and its currency would never surpass 21 million units.

In the medium and long term, and beyond the high volatility in shorter periods, the price of BTC increases; this increase happens due to the high peak in demand and its subsequent supply.

By: Jenson Nuñez

An important factor that led to the adoption can be the $ 30 bonus for those citizens who install the app. In El Salvador, there were criticisms of the Chivo purse at first, but the authorities affirm that it already works well.

The president of El Salvador, Nayib Bukele, revealed through his Twitter account that the Chivo wallet already has 1.6 million users and predicted that this number might keep increasing.

Chivo wallet is the application with which the citizens can access bitcoin (BTC) as legal currency. On Monday, September 20, on the social network, Bukele wrote that 1.6 million Salvadorans already use @chivowallet. In addition, he added an emoji to express his joy at the news.

The population of El Salvador was 6,453,553 in 2019. According to World Bank data, the 1.6 million people who have already downloaded the wallet are equivalent to 24.79% of the total population.

In other words, 1 in 4 inhabitants of the Central American nation now uses bitcoin or, at least, has done so when receiving the initial balance provided by the app.

The Chivo wallet received a promotion from the Government of El Salvador to achieve the Bitcoin Law, which entered into force in the country on September 7.

Although there are polls that indicate that more than half of the population would be against the use of cryptocurrency, something that could explain the popularity of Chivo is the USD 30 bonus in bitcoin that each user receives when downloading it.

The challenge will surely be to retain those citizens who install the application motivated by this “gift.”

How Chivo Displays its Functionalities

The first functionalities of the Chivo wallet are to send and receive bitcoin to transform this cryptocurrency into dollars instantly. Thus, the application allows users to pay in stores or make transactions between people through the Lightning Network.

In its first hours after its release, the application experienced technical problems that, according to Bukele himself and the application’s developers, got solved over time. The president recently pointed out that Chivo is “working 100%.”

The Google application store details that Chivo has more than 100,000 downloads. Regarding its rating, the 4,427 people who rated it averaged a score of 3.6 out of 5. Many users give it the highest grade, but a significant percentage has given it only one star.

The application is now available in the Apple app store for download. According to data from the store’s official site, the application has a rating of 4.2 stars (5 is the maximum) thanks to the 1,700 people who gave their opinions about it.

The number of downloads is unclear because it does not appear in a report. The app is ranked 35th among the most popular in the Finance category.

Other options to download the Chivo wallet are the application website and other stores, such as Huawei. The app accumulates the most downloads, although its score is the lowest: 3.5 out of a maximum of five.

By: Jenson Nuñez

The Fraction Company will allow Thai investors to acquire fractions of high-end real estate projects starting from a minimum investment of USD 150.

The Securities and Exchange Commission (SEC) of Thailand, the first financial regulator in that Asian country, gave a license to a real estate tokenization project based on the Ethereum network.

Fraction, a subsidiary of Hong Kong-based fintech company Fraction Group, received a license from Thai regulators to work on a fractional share token offering feature. The company revealed the news through its website.

The CEO highlighted the pride of its entity during the announcement of the first SEC-regulated unified platform that leverages the blockchain to digitize, list, and exchange tangible assets.

Tokenization is a New Reality  in Thailand

According to the information, the new license brings Fraction permission to build asset digitization and fractioning service, known as an initial fraction offering (IFO).

The firm intends to gather up the first IFOs for subscriptions in the first quarter of 2022, focusing on tokens for properties in collaboration with various local real estate firms. According to the announcement, Fraction would be exploring an IFO with an additional value that could surpass USD 460 million.

According to the company, this project would intend to democratize investment and acquisition of real estate by reducing the entry barrier for investors.

The CEO of Fraction explained that the minimum amount to participate in the IFO would be circling 5,000 Thai baht, which is about USD 150.

The general director of the partner company Magnolia Quality Development Corporation, Visit Malaisirirat, highlighted that, for the first time in the world, investors could purchase and sell real estate through digital tokens on a unified platform that encircles all steps. The CEO also reassured that this model could skyrocket the real estate sector and many other industries shortly.

A Potential, and Very Succesful Industry

Fraction is not the only company worldwide that is currently dabbling in property tokenization. In the United States of America, the New York-based company Fluidity has been working hard to tokenize and trade real estate through the Ethereum blockchain.

In 2018, a report mentioned that this company, in association with the firm Propellr, carried out a real estate tokenization project in a residential complex in Manhattan that went valued at USD 30 million.

More recently, Fluidity has also dabbled in offering Blockchain-backed mortgage plans. Despite these developments, the tokenized property industry has remained relatively closed due to the growing state of technology and regulatory uncertainty about offerings of this type.

According to the situation in Thailand, this actual movement could become quite a lucrative sector in the future.

On the other hand, and according to a set of evaluations from the British accounting network Moore Global, the tokenized property market could reach USD 1.4 trillion in the next five years if only 0.5% of the global property market gets tokenized.

By: Jenson Nuñez

The attackers took advantage of a defect in the protocol’s codebase to extract 277 pBTC tokens from wrapped Bitcoin. The platform has already corrected the error.

An unidentified hacker or group of hackers took advantage of a flaw in the decentralized finance (DeFi) platform, pNetwork, to extract nearly $ 12 million worth of wrapped Bitcoin.

The team at pNetwork, a DeFi protocol that activates interoperability between blockchains, highlighted the attack on Sunday via their Twitter account. The project reportedly lost a total of 277 wrapped bitcoins ($ 12 million at press time) after an attacker found a bug in its code.

The hacker aimed at the pBTC token, a version of Bitcoin wrapped in the pNetwork ecosystem; the token focuses on the Binance Smart Chain (BSC) network. The platform revealed this information in a tweet thread.

Wrapped Bitcoin is a token on a smart contract blockchain that receives support from an equivalent amount to Bitcoin so  Bitcoin can work in DeFi protocols. The pBTC exists on various blockchains, including Ethereum and BSC, to improve its performance.

Protocol Offers Hacker Reward

pNetwork did not give further details on how the attack happened but stated that the hacker took advantage of a bug in its codebase to extract the funds.

They also added that the other bridges did not receive harm. In the same thread of tweets, they assured that the rest of the funds deposited on the platform are under protection.

According to the pNetwork website, there is over $ 190 million in cryptocurrencies currently locked in the protocol’s cross-chain bridges.

Shortly after the attack report arrived at the media, pNetwork developers stated they had identified the bug and had a proposal to meet a solution.

The protocol team updated the information on Monday to highlight that the error in the code has already been fixed and that they are conducting a comprehensive review of the other bridges to correct similar vulnerabilities.

Via Twitter, pNetwork also indicated that it would offer a bug bounty of $ 1.5 million to the attacker if he returns the stolen funds. Whether the attacker responded to this offer or not, remains unclear to the date.

Another Attack for DeFi

The attack on the platform affected the price of pNetwork’s PNT governance token, which runs on the Binance Smart Chain.

According to data from Coinmarketcap, PNT has fallen more than 22% in the last 24 hours. It is vital to consider that the token’s crash coincides with a generalized downward trend for the crypto market of almost 11% in the last hours.

The developer assured users that they are currently working on a solution for users who received damage during the attack.

pNetwork is one of the latest victims of hacking attacks within the DeFi ecosystem. This year decentralized finance platforms have been the target of hacks and theft, although, in some instances, protocols have been lucky, and the hackers have returned the funds.

On the other hand, an exploit to Zabu Finance, the first attack on an Avalanche-based DeFi. According to CipherTrace, DeFi-related attacks have reached 270% this year, generating losses of around $ 474 million to users.

By: Jenson Nuñez