Millions in BTC and XMR Disappear in Darknet Exit Scam

Audy Castañeda
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Millions in BTC and XMR Disappear in Darknet Exit Scam

Incognito Market is facing withdrawal issues and accusations of exit scam. Dark Web Detective Confirms Exit Scam Amid Bitcoin Rally.

In the gloomy corners of the dark web, a major marketplace known as Incognito Market has recently come under scrutiny. This platform, predominantly used for narcotics trafficking, has become a focus of controversy due to sudden withdrawal problems reported by its users.

The marketplace is known mainly as a platform to trade narcotics and is valued between $10 million to $30 million, according to cyberthreat intelligence provider Dark Web Informer.

On March 4, 2024, X user @DarkWebInformer posted the following:

“WARNING. Many users on Incognito Market are having BTC and XMR withdrawal issues. I will update this thread if Incognito admins update or receive another update from HugBunter.”

Withdrawal Issues and Accusations

On Tuesday, March 5, the darknet community was shocked by reports of Incognito Market users being unable to withdraw Bitcoin and Monero. These incidents quickly escalated into accusations against the site’s administrators, fueling fears of a possible exit scam. These types of scams, in which site operators suddenly close and abscond with users’ deposited funds, are not unknown in the underground corners of the Internet.

In response to the growing accusations, the Incognito administrator, known by the pseudonym “Pharoah,” turned to the Reddit-like darknet-based platform Dread to calm users’ fears. Pharoah attributed the withdrawal difficulties to a recent review of the site’s withdrawal systems. They cited the “initial stages of this update” as the cause of temporary usability issues due to server multitasking.

“Please note that the initial stages of this upgrade may briefly affect usability in the first few days since the servers are multitasking on both old data synchronization and new requests,” they said.

Confirmation of an Exit Scam

Despite these assurances, the situation deteriorated as withdrawal problems persisted. Concerns were further compounded by a terrifying post by renowned dark web security expert, HugBunter.

Hugbunter revealed a conversation with Pharoah, in which they were allegedly offered a bribe to remove negative posts about Dread’s Incognito Market. This revelation led Hugbunter to unequivocally confirm the allegations of an exit scam.

“My warning here will not make a difference to funds already lost to Incognito, but hopefully, this will be enough now to try and ensure users stay clear and avoid losing more,” added Hugbunter.

Bitcoin Rally Coincidence

Amid this turmoil, the cryptocurrency world witnessed a significant event when Bitcoin surpassed its previous all-time high, setting a new record just above $69,200. This rally added an intriguing backdrop to the drama unfolding around the incognito market, highlighting the volatile intersection of cryptocurrency markets and the darknet.

On the other hand, Ledger has warned XRP holders about growing scam efforts involving fake airdrops, as Crypto News Flash previously reported, adding another layer of caution to the digital currency landscape.

Recently, the price of BTC had fallen. 0.80% in the last 24 hours, it fell to the price of $66,093.56. But this represents an increase of 14.45% over the last 7 days.

Meanwhile, the XMR price has also dropped by 1.22% in the last 24 hours but is still up by 6.37% over the last 7 days, currently sitting at $147.83.

By Audy Castaneda

Tether Offers USDT Recovery Tool in Critical Situations, and Related News

Leonardo Perez
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Tether Offers USDT Recovery Tool in Critical Situations, and Related News

The plan includes an official recovery tool that makes it easy for users to verify ownership of their addresses on an affected Blockchain and transfer their USDT to an address on another supported Blockchain. In other news, Tether has reached a record $100 billion market capitalization.

Tether, the issuer of the world’s largest Stablecoin, USDT, has implemented a recovery plan, which allows USDT to be migrated between Blockchains. All this, in case any Blockchain is interrupted, unreliable or unusable.

The announcement comes as USDT reached a market capitalization of $100 billion. So far this year, it has grown 9%.

Tether Introduces USDT Recovery Tool for Emergency Situations

According to the announcement, Tether (USDT) has become the largest Stablecoin in the world. Because it combines utility, security and accessibility. As a result, Tether has developed a robust Blockchain recovery plan. In case any Blockchain where USDT is available is disrupted.

In this regard, the company pointed out that “Tether has developed and will implement its proactive measures to ensure uninterrupted accessibility for our holders and safeguard users’ accessibility to their USDT.”

Specifically, users will be able to verify ownership of their addresses on a non-operational network and a recipient’s address on another supported network, and Tether will transfer USDT between them.

USDT Migration Tool: Accessible and Secure

Affected users have the option to initiate the migration process through an easy-to-use interface, accessible via the Web or through tools that use command lines. The tool, which has not yet been made available to the public, will have support for wallets such as Ledger and Trezor.

This process involves signing a cryptographic migration request to demonstrate ownership of the tokens in question. Additionally, a command line interface allows users to directly enter their private key, allowing them to sign the necessary message using an open source script.

Finally, as the crypto world evolves, Tether is committed to maintaining its leadership in terms of stability, security, ease of use and innovation.

Therefore, Tether expressed that its “commitment to user security requires that it protects user assets in any of the scenarios.”

In other News: Tether’s USDT Reaches $100 Billion Market Cap

USDT momentarily reached the $100 billion milestone on March 4, as the market capitalization fluctuates based on the current price and circulating supply, according to data from CoinGecko.

Its market capitalization is more than $71 billion higher than its closest stablecoin rival, USDC, issued by Circle, which has also seen its market capitalization grow this year.

Tether’s market capitalization puts it on par with British oil and gas titan BP and just above e-commerce giant Shopify.

The company that issues the token – also called Tether – claims that it backs each USDT token 1:1 with its independently audited reserves, made up primarily of United States Treasury Bills (T-Bills), a short-term loan granted to the American government.

In the fourth quarter of 2023, the company posted a record quarterly profit of $2.85 billion, $1 billion of which came from its T-Bills. Its fourth-quarter report revealed T-Bills holdings of more than $80 billion, and in the past it claimed to be one of the world’s largest buyers of U.S. government debt.

More than half of the USDT currently issued is on the Tron blockchain, which according to a January United Nations report “has become the preferred choice” for Southeast Asia-based cyber fraud and money laundering.

Tether has responded to the report by stating that the UN does not mention the company’s collaboration with security forces or the traceability of the token.

By Leonardo Perez

El Salvador Agrees Not to Apply KYC to BTC Transactions Less Than $25,000

Audy Castañeda
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El Salvador Agrees Not to Apply KYC to BTC Transactions Less Than $25,000

The Legislative Assembly of El Salvador will eliminate customer identity verification (KYC) for transactions less than $25,000. The Bitcoin Office of El Salvador confirmed that financial and crypto companies used to resort to KYC with transactions starting at $200. According to the Assembly, the reform will encourage tourism in El Salvador, which would increase the flow of resources.

The Legislative Assembly of El Salvador approved a reform to the Tax Code to request clients’ Unique Identity Document (DUI) for financial transactions, including cryptocurrencies, only for amounts of $25,000 or more. Local crypto companies will not be able to verify their customer’s identity (Know Your Customer) or KYC for smaller amounts.

The Bitcoin Office of El Salvador confirmed that prior to the legislation, financial and crypto companies could confirm the identity of the client with transactions from $200. The reform seeks to encourage Bitcoin adoption and investment in El Salvador.

Media outlet CriptoNoticias took on X to comment such event in the following terms:

““El Salvador continues to leverage its first-mover advantage as a leading destination for new capital markets in Bitcoin.”

These were the words of the National Bitcoin Office (ONBTC) after updating the KYC regulations, which required verifying identity and private data when making transactions with bitcoin equal to or greater than USD 200.

With the law amendment, KYC will only be mandatory for transactions equal to or greater than 25 thousand dollars. (…) According to Stacy Herbert, a member of the ONBTC, the modification of the law will be made in the interest of preserving privacy.”

El Salvador Seeks to Encourage Investment and Tourism with the Elimination of KYC

The new adjustments will be applicable anywhere where Bitcoin transactions are carried out, such as Bitcoin Beach, as well as companies that operate in El Salvador such as: Strike, Bitfinex, FOLD, Blink BTC, BitoBanx, K1 Technology or Tiankii, according to The Bitcoin Office.

Representative Dania González maintained that the initiative will eliminate the requirements of the Ministry of Finance to request DUI. The deputy and president of the Financial Commission, Dania González, elaborated as follows:

“With this reform, investors will also benefit from faster processes. This is important because growth in the technology industry is expected in our country, which is why we need to establish regulations that encourage this sector. “Our country is growing in tourism thanks to the security measures that we have supported, this means direct contributions to the economy.”

Prior to the reform of the Tax Code, for each transaction for $200 or more, operators had to establish on the invoice the names, signatures and DUI number of the person who delivered and the person who received the document. Now, the same bureaucratic process is carried out only for amounts greater than $25,000.

El Salvador Encourages the Use of Cryptocurrencies Prior to the Bitcoin Halving

According to the Assembly, “The amendments contemplate modifications to article 114 which indicates that, when the value of “If the operation exceeded or was equal to 200 dollars, the names, signatures and Unique Identity Document (DUI) number of the person who delivered and received the document must be established on the original invoice.”

El Salvador’s total profits thanks to Bitcoin have exceeded $60 million. The above, in the midst of the cryptocurrency price rally. With 2,848 BTC in its possession, the country has taken advantage of the recent rise in Bitcoin price. Bitcoin has surpassed the $67,000 mark.

By Audy Castaneda

Binance CEO Receives Ultimatum from Nigeria

Leonardo Perez
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Binance CEO Receives Ultimatum from Nigeria

Committee Chairman Ginger Onwusibe warned that if Binance ignores the subpoena, the committee will exercise its constitutional authority to take necessary action.

This Monday, March 4, Binance CEO Richard Teng must appear before the Nigerian authorities to offer statements. The Financial Crimes Committee of the Nigerian House of Representatives is investigating the cryptocurrency exchange for violation of several laws.

According to a local news outlet, The Punch, the Chairman of the Committee, Ginger Onwusibe, on Friday, March 1, in a panel, issued a seven-day ultimatum to the management of Binance Holdings LTD. to appear before the committee by March 4, 2024.

The governor of the Central Bank of Nigeria (CBN) expressed concerns on February 27 about Binance, an online cryptocurrency exchange, alleging “suspicious flows” of funds through the exchange in 2023.

The conflict between the Nigerien authorities and the exchange is becoming an issue of important magnitude. Recently, government spokespersons of that nation denied an alleged fine that they had applied against the firm. Some news portals reported that the crypto trading company had been penalized by $10 billion.

In any case, if Teng does not appear at this new appointment, the Nigerian authorities warn that they will take new measures. In this regard, the chairman of the aforementioned committee, Ginger Onwusibe, stated that they could invoke their constitutional powers to take appropriate measures.

Onwusibe’s Warmings and Concerns

Onwusibe reportedly warned that if Binance Holdings ignores the call, the committee will be forced to use its constitutional authority to implement necessary actions. According to The Punch, the committee, through a letter dated December 12, 2023 and signed by its president, Onwusibe, called for a hearing with the Managing Director of Binance, scheduled for December 18, 2023.

He expressed his disappointment with Binance Holding Limited CEO Teng for not attending despite multiple invitations. Onwusibe emphasized that this relates to the complete disregard of existing laws regulating commercial and financial operations in the country.

Onwusibe reiterated the committee’s commitment to combating financial crimes, stressing that the constitution empowers them to protect Nigerians from financial crimes, especially those involving foreign companies.

What Happens if Binance CEO Ignores the Subpoena Again?

Most likely, the CEO of Binance will not appear at the new meeting of the Nigerian authorities, which would be a negative scenario for the firm. The exchange pleaded guilty to these same crimes in the US at the end of 2023.

After the guilty plea was known, a request for appearance was sent to the executive from Nigeria. It requested a hearing to declare the ways in which the exchange violated the laws of the African country. However, as already stated, Teng ignored the request for presentation.

Onwusibe expressed the following in this regard:

“The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially committed by foreign companies. The accusations of terrorist financing, money laundering, and tax evasion, among others, leveled against Binance are quite damning.”

The reaction of the Binance CEO to this new problem that is already widely covered in the media and that could play against the credibility of the firm is pending.

Last week, the country’s telecommunications regulator ordered companies in the sector to block digital currency exchanges. As a result, platforms such as Binance, Kraken and Coinbase were legally banned. Similarly, last week, the country’s security services detained two Binance executives. This would have been part of the investigations in this case, DLNews reported.

By Leonardo Perez

Bitcoin Price Approaches All-Time High: Five Key Factors Behind the Surge

Audy Castañeda
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Bitcoin Price Approaches All-Time High: Five Key Factors Behind the Surge

Below are the five key reasons behind Bitcoin’s recent price movements.

In a notable display of bullish momentum, the price of Bitcoin (BTC) has soared, almost touching its all-time high of $69,044 set in November 2021. The cryptocurrency’s value rose to an impressive $68,848 before facing a 5% correction, subsequently falling to $64,200.

However, the market quickly recovered, with BTC trading above $67,000 once again. This increase can be attributed to a combination of factors driving the upward trajectory, which are explained below.

Supply Shock Due to Demand for Bitcoin ETFs

The Bitcoin ETF spot market has witnessed another day of significant inflows, with a particular highlight being Fidelity and BlackRock, which funneled over $400 million each into BTC. Fidelity posted a record inflow of $404.6 million, while BlackRock followed closely with $420 million.

Eric Balchunas commented on the phenomenon in the following terms:

“All ten Bitcoin ETFs are virtually locked in to record their second-highest volume day today. So it seems like last week’s big spike in business activity was more of a new normal than an anomaly. Today was the second highest volume day for the Ten, with around $5.5 billion. IBIT alone generated $2.4 billion and has exceeded $11 billion in total.”

This influx is indicative of a supply shock, as demand for the ETFs absorbs a substantial portion of the available Bitcoin, reducing supply and therefore driving prices up.

Coinbase Premium Signals Institutional Buying

The rise in BTC price is also reflected in the significant increase in Coinbase premium, a clear indicator of institutional interest. Furkan Yildirim, a prominent crypto analyst, stated that “Coinbase Premium is in full swing, indicating a possible all-time high for Bitcoin.”

This sentiment was shared by @tedtalksmacro, who noted that “Huge BTC spot premium on Coinbase. The big guys are buying. […] For context, this is the largest premium seen in this bullish leg. institutional FOMO.”

Coinbase Premium, a metric that indicates the price difference between Coinbase’s BTC price and other exchanges, serves as a bullish signal, highlighting aggressive buying by institutions and high-net-worth individuals, especially during regular trading hours.

BlackRock’s Strategic Move Towards Bitcoin

BlackRock’s recent filing to integrate BTC exposure into its Strategic Income Opportunities Fund (BSIIX) is another watershed moment. With the fund’s significant assets of $36.5 billion under management, this inclusion marks an important nod to the growing acceptance of Bitcoin among traditional investment vehicles.

While BSIIX is not the largest fund, it could be the starting signal for Bitcoin ETFs to be included in larger and, above all, larger investment funds from BlackRock and others. This would be extremely bullish.

Continued Bitcoin Accumulation by MicroStrategy

MicroStrategy announced a new issuance of $600 million in convertible senior notes, intended for BTC purchases and general corporate purposes. This move signifies not only an investment strategy but a deep belief in Bitcoin’s value proposition. This strategy not only underlines Saylor’s bullish outlook on BTC but also introduces significant buying pressure into the market.

The ‘Kimchi Premium’ Phenomenon

The ‘Kimchi Premium’ (the price difference between South Korean and foreign exchanges) has re-emerged as a notable factor. On Upbit, South Korea’s largest exchange, BTC and ETH were trading at premiums of approximately 6% and 7%, respectively.

This shows that it is not just the US market that is driving the price of BTC. The premium for kimchi is a testament to the high demand and speculative interest within the South Korean market. At the time of publication, BTC was trading at $67,008.

By Audy Castaneda

United Kingdom Prepares to Freeze Cryptocurrencies Linked to Illegal Activities, and other News

Leonardo Perez
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0
United Kingdom Prepares to Freeze Cryptocurrencies Linked to Illegal Activities, and other News

In an effort to effectively fight cryptocurrency-related crimes, the UK government has announced drastic measures that will come into effect from April 26.

According to recent legal documents, the country’s authorities will be able to freeze and, where necessary, destroy crypto assets linked to illicit activities without requiring a prior conviction.

Amendments to the Economic Crime and Corporate Transparency Act 2023 give the National Crime Agency expanded power to directly confiscate crypto assets from both exchanges and custodial wallet providers.

This new legal framework seeks to address various forms of crimes. Including cybercrime, scams and drug trafficking, offering authorities the ability to act more agilely and efficiently.

Although the specific method of destroying cryptoassets has not been detailed, it is suggested that the most common option could be burning, thus transferring the tokens to a designated wallet address and removing them from circulation.

Indonesia Reconsiders Cryptocurrency Taxes

A local report revealed that the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has requested the country’s Ministry of Finance for a review of the government’s stance on cryptocurrency taxation.

According to the report, Bappebti executives have urged a re-evaluation of existing taxes. Including the 0.11% value added tax (VAT) imposed by the government on every cryptocurrency transaction in Indonesia, as well as the 0.1% income tax applied to cryptocurrency profits.

Tirta Karma Senjaya, head of the Development and Market Development Office at Bappebti, explained the reason behind this request, indicating that cryptocurrencies are projected to become an essential part of the Indonesian economy in the near future.

SEC Commissioner ‘Crypto Mom’ Advocates for Clear Rules and Criticizes Retroactivity in Sector Supervision

Hester Peirce, known as “Crypto Mom” for her progressive stance towards cryptocurrencies, launched blunt criticism of the Securities and Exchange Commission (SEC), calling parts of its regulatory approach “unproductive” and “useless.”

The Republican SEC commissioner expressed her views while speaking at the ETHDenver event on Thursday afternoon, thus questioning the effectiveness of the agency in supervising the cryptocurrency industry.

Peirce noted that the SEC’s enforcement team has been active, bringing significant cases against prominent players in the crypto space, such as Coinbase, Kraken, and NFT creator Stoner Cats, for failing to register with the regulator. However, she highlighted the lack of clarity in the rules, and expressed dissatisfaction with the retrospective prosecution of cases involving registration violations.

Although Peirce did not downplay the importance of registration obligations, she stressed that the lack of clear definitions of what constitutes a security makes retrospective pursuit unproductive.

Crypto Miners Celebrate Withdrawal of Court Request Against US Department of Energy

The government survey on electricity use by cryptocurrency mining companies, which had generated controversy and a lawsuit, comes to an end after an agreement between the parties involved.

The Energy Information Administration (EIA), a statistical and analytical agency within the United States Department of Energy, had announced in February the beginning of the survey, provoking the reaction of the Texas Blockchain Council and the bitcoin mining company Riot Platforms, which sued the Department of Energy, alleging a “sloppy government process.”

Last Friday, a court notice revealed that the parties reached a settlement, demanding that the EIA “destroy any information” obtained and withdraw the survey. Additionally, the EIA plans to publish a new announcement about the survey that will allow public comment.

By Leonardo Perez

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