James Howells to Sue Local Council for Refusing to Dig for Lost 8,000 BTC

Leonardo Perez
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James Howells to Sue Local Council for Refusing to Dig for Lost 8,000 BTC

James Howells, a 38-year-old man from Newport City, is threatening to sue City Hall in his thirsty effort to recover the 8,000 BTC he lost 10 years ago. In an open letter sent to the city council on September 4, James Howells requests permission to begin excavation by September 18. Local authorities believe that excavating the landfill would be harmful to the environment.

James Howells, who lost 8,000 Bitcoin in a landfill, intends to sue the city for not allowing him to excavate the site in search of his lost fortune. After a decade of trying to get permission to recover his lost Bitcoin from Newport City Council, James Howells has reached the authority’s breaking point for his wealth.

Crypto Frustration at Its Finest

James Howells has spent a decade trying to mine his Bitcoin, but local authorities believe this would be harmful to the environment. The 38-year-old former IT professional has been at odds with Newport City Council for a decade, mobilizing a team of 16 to help recover the $194 million hard drive.

James Howells was frustrated by what he perceived as the council’s reluctance to engage in dialogue and said the local authority did not seem interested in resolving the matter without resorting to legal action. In an open letter sent to the city council on September 4, James Howells requests permission to begin excavation by September 18.

In January 2021, he presented them with a trac offer: 25% of the value of the BTC if they allowed him to dig to find the hard drive. That idea, however, fell on deaf ears.

Will Robot Dogs and AI Do the Job?

In 2022, James Howells proposed to local authorities an $11 million search that would take three years to complete. The budget was intended to cover artificial intelligence (AI) equipment, robot dogs and human labor.

The Bitcoin owner also pledged to give 60% of the recovered BTC to those who helped him in his excavation effort and to distribute $60 in Bitcoin to every dent in Newport, while keeping 30% for himself.

Howells is threatening to bankrupt the council with legal action, seeking compensation of $557m (£446m), which corresponds to the value of the lost Bitcoin at its peak price. Additionally, James Howells is calling for a review of the council’s decision to deny him access to the landfill over the last decade.

What Are the Odds for This Effort to Succeed?

The best case scenario for a hard drive to sit in a landfill for ten years is a series of fortunate circumstances. First, whether the hard drive was enclosed in a protective cover or sealed container when it was discarded, reducing its exposure to the corrosive elements of the landfill.

Even if the hard drive was recovered in reasonable physical condition, data tracing is still difficult. However, as a result of technological advancements since 2013, modern data recovery laboratories are equipped with sophisticated techniques and tools.

If hardware components show signs of deterioration, specialists may still be able to replace or repair them, thus increasing the likelihood of effectively recovering stored data. The odds are enormous, but with the right combination of conditions and knowledge, it is not completely impossible.

By Leonardo Pérez

Ethereum (ETH) Twitter Hack: Vitalik Buterin’s X Account Loses $700,000 in Phishing Scam

Leonardo Perez
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Ethereum (ETH) Twitter Hack: Vitalik Buterin’s X Account Loses $700,000 in Phishing Scam

Ethereum creator Vitalik Buterin was attacked by an X hacker who stole $691,000 from users via a corrupted link in his tweet promoting NFTs. Buterin has remained silent about the hack, and concerns have been raised for his safety, as the hacker even transferred a stolen NFT to him.

Ethereum creator Vitalik Buterin appears to have been targeted by an X hacker, resulting in the theft of $691,000 from users who clicked on a corrupt link he shared on his Twitter account.

The breach came to light last Saturday when a post on Buterin’s Twitter account announced the launch of a collection of commemorative non-fungible tokens (NFT) from software provider Consensys. This malicious link, potentially visible to many of its 4.9 million followers, led unsuspecting people to connect their wallets to mint the NFT. However, it only allowed the hacker to siphon off their funds.

Crypto Twitter users quickly raised the alarm about the fraudulent link. However, the initial hint of Buterin’s hacking came from his father, Dmitriy “Dima” Buterin. Although the post has since been deleted, the damage has already been inflicted and several victims have reported losing access to their wallet funds.

On a post on X dated September 9, “Dima” Buterin told users to “Disregard this post, apparently Vitalik has been hacked. He is working on restoring access.”

Within an hour, it appeared that the hacker had absconded with more than $147,000, but this sum quickly increased to $691,000, as revealed by blockchain researcher ZachXBT.

Buterin’s Silence and the Suspicious NFT Transfer

The day after the initial report of the attack, Buterin refrained from making public statements about the incident. His most recent post remains a retweet of a message from September 6. Additionally, ZachXBT noted that the hacker transferred a stolen NFT to Buterin.

The exact number of affected users remains uncertain. Still, this recent development contributes to a growing series of social media attacks that have resulted in substantial amounts of tokens being stolen. With numerous losses accumulating, there has been an ongoing discussion about whether developers should take responsibility for compensating victims for their losses.

Additionally, Binance CEO Chang Peng Zhao criticized the security of the Twitter account, stating that it lacks the strength of traditional financial account security, raising concerns about the overall security of the X platform:

“Vitalik’s Twitter account got hacked. Use common sense when reading content on social media, even from large KOLs. Twitter’s account security is not designed as financial platforms. It needs quite a bit more features: 2FA, login id should be different from handle or email, etc. In the past, I have had my Twitter account locked a few times due to hackers trying to brute-force it (trying different passwords repeatedly). This was before the Elon era,” posted CZ on X on September 10.

Effect of Security Breach on ETH Performance

This security breach might influence the general perception of ETH. According to Santiment data, there has recently been a significant decline in overall sentiment towards ETH.

Furthermore, the price of Ethereum saw a decline. Currently, Ethereum is trading at $1,593, indicating a decline in its value.

Despite this price drop, the count of Ethereum addresses containing non-zero balances continued to rise. According to Glassnode data, the number of addresses with non-zero balances reached an all-time high of 105,721,874.

By Leonardo Pérez

Is the Price of Bitcoin in Danger? BTC Holders Suffer Significant Unrealized Losses

Audy Castañeda
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Is the Price of Bitcoin in Danger? BTC Holders Suffer Significant Unrealized Losses

These were the findings of analytics provider Glassnode in its latest weekly report for 9/11.

Glassnode published its latest weekly report, dated September 11, 2023, where it reports the current situation of BTC. A post on X explains the following:

“Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows. Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant unrealized loss.”

The report further notes that “HODLing certainly remains the primary market dynamic, which both signals a steady conviction amongst existing holders, but highlights that these investors are likely the only ones who remain.”

More Pain for Bitcoin Holders in the Short Term

In what is being called a “liquidity drought,” Glassnode said long-term BTC holders are holding tight to their holdings and “spending very little.”

This makes sense, since long-term investors have been through bull and bear markets before and are unfazed by them. Those who got in during the last bull market could well be underwater now that the asset has retraced 63% from its high.

Glassnode noted that the realized value settled on the chain remains extremely quiet. The market generally locks in minimal gains or losses, meaning that most coins are trading close to their original purchase price.

“Realized Profit and Loss are similarly at levels equivalent to the 2020 market, highlighting what is arguably a complete and total wash-out of the exuberance from the 2021 bull market.”

The supply of long-term holders has reached a new all-time high of 14.74 million BTC. In contrast, the supply of short-term holders, which is more active, has fallen to its lowest level since 2011 at 2.46 million BTC.

Regulatory concerns remain a looming shadow over the crypto industry. Until there is clarity, especially in the United States, big players and institutions can adopt a wait-and-see attitude.

FTX may receive the green light to start selling its cryptocurrency holdings on September 13, and it has plenty. This could put further downward pressure on markets, which are already in retreat this week.

Messari founder Ryan Selkis posted on X the following:

“We’re approaching max pain. Bear markets last longer and go deeper than we want them to. Need a couple of capitulations, then chop, then rebirth. This is near the worst sentiment that I’ve ever seen. Deeper than 2019. Closest feeling was 2015 for me.”

Markets Fall to Six-Month Low

Total capitalization has fallen to its lowest level since mid-March. Markets fell to $1.04 trillion in early trading in Asia on Tuesday. The last time they fell below the psychological level of $1 trillion was on March 11.

A slight recovery in recent hours has taken the total cap to $1.06 trillion, but the bears are watching. BTC and ETH are down 0.6% and 2%, respectively, and altcoins are suffering the most.

Following Glassnode’s latest report, many sellers are likely to arrive in the event of a bullish reversal, especially near the short-term buyers’ equilibrium level around $26,000.

Taken together, the DXY price action and on-chain data suggest that buyers could return sooner than expected, making the current price action a potentially lucrative opportunity to open long Bitcoin positions.

By Audy Castaneda

Spain: 50% of Young Investors Bet on Cryptocurrencies

Audy Castañeda
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Spain: 50% of Young Investors Bet on Cryptocurrencies

Fifty percent of young people in Spain, aged between 20 and 29, are involved in the world of cryptocurrencies. This high degree of participation in cryptocurrencies has also made them the age group most susceptible to deception and loss of value in their investments. One of the key reasons behind this group’s investment mindset could be their growing skepticism toward traditional financial institutions.

Half of young people in Spain between the ages of 20 and 29 are involved in the world of cryptocurrencies.

This figure is raising concern in some commentators due to the associated risk, in stark contrast to the 17% of millennials and the modest 6% of those over 40 who venture into this field. Cryptocurrencies have captured the hearts of the younger generation and become their preferred investment asset.

Young People Take the Lead in Cryptocurrency Investments

According to the collaborative report between the IE Foundation and the Mutual Lawyers Foundation, whose title is The finances of Spanish digital natives and millennials, half of people aged 20 to 29 already have cryptocurrencies in their investment portfolios. This is a significant difference compared to millennials, who only allocate 17% of their investments to cryptocurrencies, and people over 40 years of age, with 6%.

Specifically, those Spaniards in their twenties invest practically three times as much in cryptocurrencies as their counterparts aged 30-39.

Young People Have Greater Investment in Cryptocurrencies, but Also More Risks of Scams

This high degree of participation in cryptocurrencies has also made them the age group most susceptible to deception and loss of value in their investments. Experts emphasize that, due to their high volatility and the proliferation of frauds, cryptocurrencies are not always suitable as assets to store household savings.

“It is essential to remember that the crypto universe goes beyond Bitcoin and Ethereum, with more than 20,000 different cryptocurrencies, compared to the 180 legal tender currencies such as the euro or the dollar,” notes IE.

The report also highlights concerns around how financial institutions and banks have simplified access to cryptocurrencies through products such as cryptocurrency ETFs, with a short-term vision aimed at attracting young people as future customers.

Young people naturally take greater risks in their investments, especially in stocks, where 36% have investments, and in bonds, with a respectable 14% participation, which is the highest percentage in fixed income compared to other age groups.

In contrast, young people show less participation in conservative or retirement investment products. Only 32% of twenty-somethings have investment funds in their portfolio, while millennials and people over 40 tend to focus more on pension funds and savings and life insurance.

Spain is classified by the World Economic Forum as one of the European Union countries with the lowest levels of crypto investment, with cryptocurrencies being “unpopular” within its borders. Indeed, national investment in traditional assets is more than triple that of investment in cryptocurrencies.

Youth and Cryptocurrencies, a Complicated Relationship

Young people face a pension system that appears increasingly challenging and less reliable. This has led many millennials to question the effectiveness of traditional investment strategies and look for alternatives, such as private pension funds and savings and life insurance, as a way to secure their financial future.

The trend is neither new nor unique in Spain; a BBC Business Daily study revealed that in the UK many of the investors under 35 years of age tend to seek high-risk assets.

By Audy Castaneda

US Senator Says Bitcoin Mining Could Increase Energy Grid Resilience

Leonardo Perez
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US Senator Says Bitcoin Mining Could Increase Energy Grid Resilience

US Senator Cruz highlighted the role of Bitcoin mining in improving the resilience of the energy grid, especially during periods of extreme weather. He explained that Bitcoin mining machines can be easily and quickly shut down during crises, effectively becoming “emergency power reserves.”

Texas Senator Ted Cruz expressed his support for Bitcoin (BTC) mining operations in the US, emphasizing its potential to improve the resilience of energy networks in times of crisis.

Cruz, a Republican, expressed his optimistic stance on Fox News Radio, according to a post on X (formerly Twitter), dated September 7:

“Texas is a hub for jobs, innovation, and freedom—making it the natural oasis for Bitcoin mining. These operations can improve our grid resiliency since they can shut off during inclement weather and free up electricity to heat or cool homes.”

Bitcoin Mining’s Positive Influence on The Energy Industry

Cruz praised the beneficial influence of Bitcoin mining on the energy industry, specifically focusing on its positive impact on the Lone Star State. But the former Republican presidential candidate’s endorsement comes at a critical time for Texas, which recently experienced its second-hottest summer on record.

Texas subsequently suffered an energy crisis, exacerbated by the sector’s high electricity consumption. Riot Platforms and other large-scale miners like Marathon Digital Holdings have been forced to halt operations during past emergencies, impacting their profitability and sparking debates about their role in the state’s energy landscape.

The state’s power grid operator awarded Riot $31.7 million in energy credits to incentivize the Bitcoin miner to scale back its operations.

Cruz, however, maintains that Bitcoin can play a critical role in conserving energy resources. He noted that Bitcoin mining machines can be quickly shut down in the event of a crisis, effectively becoming emergency power reserves.

He explained that the ability of Bitcoin miners to divert energy resources towards essential needs, such as hospitals and homes, makes them necessary.

Bitcoin Proponents’ Positive Reactions

Dennis Porter, executive director of the Satoshi Act Fund, a nonprofit that advocates for favorable policies for Bitcoin mining, praised Cruz’s stance on Bitcoin.

Porter further highlighted the growing acceptance of Bitcoin among politicians, describing it as a winning issue. He noted that politicians recognize the potential of aligning with Bitcoin to attract new voters and donors while positioning the United States as a leader in innovative technologies. He also noted that despite not always agreeing with Cruz, many Bitcoin advocates appreciate his support of the cryptocurrency industry.

Bitcoin Mining Stocks Rise

Bitcoin mining stocks outperformed cryptocurrencies in the first half of 2023. Data reveals that the top nine publicly traded BTC mining companies have seen their share prices rise by more than 250% during this period, surpassing the Bitcoin performance by more than three times.

It is no surprise that institutional investors, including Vanguard Group, with more than $7.2 trillion in assets under management, have increased their exposure to stocks of top Bitcoin mining companies. Such move suggests growing institutional interest in Bitcoin despite increasing regulatory scrutiny over cryptocurrencies.

Cruz’s support for Bitcoin mining to bolster the resilience of the energy grid in Texas also reflects growing recognition among politicians of the cryptocurrency’s potential benefits.

While both proponents and critics are found in the political arena, the cryptocurrency industry continues to evolve and gain acceptance, attracting interest from institutional and retail investors.

By Leonardo Pérez

Cryptocurrency Traders Bet $600 Million on Ethereum (ETH) Price Rally Despite FUD

Leonardo Perez
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Cryptocurrency Traders Bet $600 Million on Ethereum (ETH) Price Rally Despite FUD

Since Ethereum’s Shapella upgrade in April 2023, the price of ETH has not fallen below $1,600. Hoping for a positive momentum shift, bullish traders have placed active orders to purchase 643,000 ETH. Investor comments on social media are approaching extreme FUD levels based on historical data.

The recent price action has raised fears that Ethereum (ETH) price could lose the $1,600 support for the first time in six months. On-chain analysis examines vital data trends that suggest bullish traders could capitalize on the market’s rising FUD.

After surpassing the $2,000 mark in mid-July, the price of Ethereum (ETH) has entered its second consecutive month of decline. Despite the recent Grayscale spot ETF appeal win, the prevailing sentiment in the cryptocurrency markets has been predominantly bearish.

On-chain analysis examines how strategic cryptocurrency traders could flip the script by capitalizing on the market’s extreme fear, uncertainty, and doubt (FUD).

Cryptocurrency Investor Sentiment Nears Extreme FUD Levels

After almost two months of decline, the majority of cryptocurrency investors are now expressing bearish sentiment. According to Santiment, a crypto data analysis company, bearish stances dominated market discourse throughout September.

Interestingly, historical trends suggest this is a telltale sign that the market is approaching an inflection point.

Social volume measures the number of times a crypto topic is mentioned on relevant social media channels. In this context, mentions that a “bear market” will dominate social media commentary for an extended period indicate that investors are dysphoric. Typically, as market sentiment approaches extreme fear, strategic investors often interpret this as the perfect time to buy the dip, inadvertently triggering a price rally.

Historical trends show that this phenomenon occurred around March 8, when the USDC decoupling and Silicon Valley Bank bankruptcy triggered extreme FUD in the market. In response, the price of Ethereum skyrocketed 48% from $1,430 to $2,120 between March 11 and April 17. The recent extreme level of negative opinions is a vital indicator that this phenomenon could reappear in the coming days.

Strategic Traders Place Purchase Orders for $584 Million

Aggregate order books from 21 cryptocurrency exchanges currently show that bullish traders have placed active orders to buy 643,000 ETH for around $584 million. This is almost 50% higher than the existing sell orders of 431,000 ETH.

Within the current market dynamics, Ethereum has formidable support in the territory between $1,500 and $1,600. It is also a vital sign that strategic traders are taking action to capitalize on the prevailing bearish sentiment.

ETH Price Prediction: Consolidation Around $1,600 Before Breakout

From an on-chain perspective, current spot market demand levels mean that Ethereum price will likely make significant gains if momentum turns bullish. However, the bulls will face significant difficulties in reclaiming the $1,800 territory.

The In/Out of Money Around Price data highlights that 3 million investors had purchased 5.04 million ETH at the maximum price of $1,805. Without a significant change in market sentiment, they could sell off early and cause another Ethereum price drop.

However, if the bulls can overcome that resistance level, Ethereum price could avoid making another attempt at the $2,000 range.

In the unlikely event that the market FUD intensifies, the bears could force a major decline towards $1,400. However, 2.69 million addresses had purchased 4.1 million ETH at the floor price of $1,585. If they go for HODL, Ethereum price could rebound again. If that support level gives way, ETH price could begin to approach $1,400.

By Leonardo Pérez

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