Hacker Extracted at Least $1.7 Million in NFT from DeFiance Capital Founder

Jenson Nunez
-
0
Hacker Extracted at Least $1.7 Million in NFT from DeFiance Capital Founder

In a phishing attack on Tuesday, the venture capitalist and crypto expert lost more than 55 NFTs of famous series. The NFTs got spotted because the victim had left his millionaire collection in a hot wallet.

The founder of Web3-focused venture capital firm DeFiance Capital, Arthur Cheong, lost his non-fungible tokens (NFTs) valued at more than $1 million in a phishing attack that occurred on Tuesday.

As highlighted by The Block, an unknown attacker started the extraction of NFTs from an Ethereum wallet managed by Cheong. The founder went to his Twitter account to reveal the news on the attack, expressing his concern, given his vast expertise in the crypto-space. The expert said the hacker damaged a hot wallet on his mobile device.

Cheong highlighted that the attack possibly occurred via a phishing email from one of DeFiance Capital’s portfolio entities. By opening the file, the attacker would have spread malware on his device that would have granted him total access to the private key of the founder’s digital hot wallet.

The expert also said that the crime was a targeted social engineering attack in a tweet. He received a phishing email that seemed to have got sent with content about the general industry.

A hot wallet always gets a direct connection to the Internet, which makes it vulnerable to this kind of activity. While they are ideal for carrying out transactions with funds and daily crypto trading, they do not care about holding large sums of such currencies. On the other hand, cold wallets and physical devices not linked to the Internet offer more safety regarding the house of digital currencies.

A Considerable Loss of NFT

Blockchain security firm PeckShield also brought a complete report about the incident. A series of investigations highlighted that the hacker managed to extract 59 NFTs from the venture’s wallet. The removed NFTs were five CloneX, 17 Azuki’s, 33 Second Selfs, two Hedgies, and two Tsubasa, all famous NFT collections.

The attacker then sold many stolen items on marketplaces such as OpenSea. According to The Block, the criminal has also migrated other tokens such as Wrapped Ether, Lido DAO token, LooksRare, and DYDX to a wallet under his power.

The total value of the loss got valued at around USD 1.7 million since it is the sum in the perpetrator’s wallet; 585 ETH got valued at that number going back to Cheong’s wallet. However, this sum could increase even more since the hacker appears to continue the migration of funds. Etherscan, a tracking service for the Ethereum blockchain, has already tagged the cryptocurrency address in question as “Arthur0x Wallet Hacker.”

Amid the outstanding popularity of the NFT field, hacking attacks aiming at NFT users have also increased. Cheong is not the first high-profile investor to become a victim of such an attack.

In January, a famous NFT collector revealed that his wallet got attacked, and just over $2 million worth of Bored Apes and Mutant Apes NFTs got extracted to unknown accounts.

By: Jenson Nuñez

The Central Bank of Honduras Does Not Plan to Adopt Bitcoin but Issue a CBDC

Alexander Salazar
-
0
The Central Bank of Honduras Does Not Plan to Adopt Bitcoin but Issue a CBDC

A tweet from Bitcoin evangelist Max Keizer triggered the comments on the alleged adoption of the cryptocurrency in Honduras. President Xiomara Castro reportedly stated that her country would join El Salvador in escaping the US dollar hegemony.

The Central Bank of Honduras (BCH) recently denied the alleged adoption of Bitcoin as legal tender in the Central American country. After a rumor on the social networks became viral, the Honduran issuing entity talked about the matter.

The financial institution highlighted its competencies concerning monetary matters in Honduras and the lack of regulations on cryptocurrencies in that country. The financial institution is the only issuer of Honduran legal tender banknotes and coins.

Many people expected Honduran President Xiomara Castro to declare Bitcoin legal tender. She reportedly stated Honduras has the right to escape the US dollar hegemony and advance towards the First World.

Max Keizer, a renowned Bitcoin communicator and evangelist, recently posted a Honduran flag on Twitter, saying it was already happening. In January, Nayib Bukele had predicted that at least two more countries would adopt Bitcoin as legal tender.

The Central Bank of Honduras recalled it did not supervise or guarantee transactions in cryptocurrencies as payment means in the country. They pointed out that those operations are under the responsibility and risk of those who conduct them.

Honduras Is on the Path of Creating a Central bank Digital Currency

In 2021, the Honduran diaspora contributed 20% of the gross domestic product of the Central American country.

Local media reported that remittances to Honduras reached USD 7.37 billion last year and registered a year-on-year increase of 23% in January 2022. The adoption of Bitcoin by the government could reduce the cost of money transfers from abroad and incorporate new state financing models.

Unlike El Salvador, the first country to adopt Bitcoin as legal tender, Honduras has the lempira (HNL) as its national fiat currency. At the time of writing this article, it is equivalent to USD 0.041. The BCH also reported that the economy achieved a year-on-year recovery of 8.2% after the COVID-19 pandemic.

Concerning the adoption of BTC and other cryptocurrencies, peer-to-peer trading is possible in Honduras through several exchanges. Likewise, the government installed the second Bitcoin ATM in Tegucigalpa, the capital of the Central American country. While that device allows selling Bitcoin, the previous one only allowed buying.

In September 2021, the president of the Central Bank of Honduras, Wilfredo Cerrato, issued an announcement. The official stated his country had begun feasibility studies to launch a pilot test of its CBDC.

He also considered that the Central American Monetary Council should address CBDCs in its policies, just as individual countries do. The BCH referred to the lack of regulation for cryptocurrencies, which is why it seeks to create a centralized digital currency.

Meanwhile, Bitcoin is trading at around USD 42,000 and has accumulated a 14% gain in the last week. Its daily trading volume is above USD 89,58 billion, and its market capitalization is about USD 860,75 billion, according to CoinGecko.

By Alexander Salazar

The Remittances in Bitcoin Sent to El Salvador Reach their Lowest Level in Five Months

Alexander Salazar
-
0
The Remittances in Bitcoin Sent to El Salvador Reach their Lowest Level in Five Months

Between January and February, El Salvador only received 1.7% of remittances in Bitcoin through digital wallets. The former president of the Central Reserve Bank commented that Salvadorans abroad still prefer traditional financial institutions.

The family remittances in Bitcoin (BTC) sent to El Salvador reached their lowest level in February. That happened after the rise in October, one month after the law turning the cryptocurrency into legal tender came into force.

In February, the Central American country received USD 572 million in family remittances, of which USD 9.4 million was in Bitcoin (around 220 BTC). That contrasts with the amount sent in January, when El Salvador received USD 10 million in Bitcoin, according to the Central Reserve Bank (BCR).

Between the first two months of 2022, USD 19.4 million in cryptocurrencies went to El Salvador. That is equivalent to 1.7% of the total that Salvadorans received through digital wallets like Chivo Wallet, developed by the government.

However, the drop in remittances also extends to December (USD 12 million) and November (USD 12 million). That contrasts with the USD 29.7 million that Salvadorans abroad sent to their families in October.

Shortly after the Bitcoin Law entered into force in El Salvador in September 2021, El Salvador received USD 2.6 million in BTC.

That is the only data on the remittances in Bitcoin sent to El Salvador to which there is access. The EFE agency reported that the BCR has kept the information on the BTC transferred through the government wallet.

It is relevant to know that most family remittances sent to El Salvador come from the United States. Only in January, 93.8% of the transfers left that North American country, preceding Canada, Spain, Italy, and the United Kingdom.

The Distrust in the Chivo Wallet May have Caused Remittances to Drop

Luis Membreño, former president of the BCR, considers that the drop in the remittances in cryptocurrencies is due to a lack of trust. He commented that Salvadorans abroad continue to prefer traditional financial institutions over cryptocurrency exchanges or wallets.

The Chivo Wallet has failed, some transactions have not appeared, and there have been losses of funds. The former official said that those factors add to the fluctuation of Bitcoin to generate distrust among users.

The main problems with the Chivo Wallet include difficulties in interacting with other cryptocurrency wallets. When conducting a transaction, there is a delay in appearing in the app or even does not happen. There are also failures in the remittances in cryptocurrencies when operating with bank accounts.

The Salvadoran government wants to solve the problems with the Chivo Wallet. However, they said that an American company would provide them with technological support to overcome the flaws with the state Bitcoin wallet.

Regardless of that, the cryptocurrency industry continues growing in El the Central American nation. At least 45 Bitcoin service providers like exchanges, digital wallets, payment processors and Bitcoin custodians have registered in El Salvador.

By Alexander Salazar

US Company Employs Waste from Burning Coal to Conduct Crypto-mining Activities and While Keeping its Environment Cleaner

Jenson Nunez
-
0
US Company Employs Waste from Burning Coal to Conduct Crypto-mining Activities and While Keeping its Environment Cleaner

A Pennsylvania entity named Stronghold Digital Mining generates power to mine Bitcoin with waste from burning coal.

One of the judgments aimed at Bitcoin is that the currency is not friendly with the earth, given the vast amount of energy needed for carrying out mining activities. Elon Musk warned the world about this issue last year when he said that Tesla would no longer accept digital currency as long as mining does not comply with greener solutions.

According to Reuters, an entity located in western Pennsylvania revealed the implementation of a new way to put crypto mining to work while also cleaning its pollution area.

Using waste from decades-old coal-fired power plants, Nasdaq-listed Stronghold Digital Mining generates power that powers hundreds of supercomputers dedicated to Bitcoin mining.

Stronghold CEO Greg Beard highlighted that the Bitcoin mining network is the most prominent decentralized computing platform worldwide. This network devours tremendous energy, so a plan for co-locating Bitcoin mining and a power plant is a coherent plan.

Coal Waste is a Valuable Source to Conduct Mining Activities

A product that comes from burning coal is coal ash, and it helps generate mining power. This waste can filtrate into groundwater and harm streams, including heavy metals that could be carcinogenic and toxic for human consumption.

This project collects coal ash from a neighboring mine and processes it at a coal tailings processing plant. The coal ash gets separated from the waste and crushed before going to a boiler building, where it gets burned to generate power that helps boost the company’s Bitcoin mining activity.

Many people are currently mining BTC using unorthodox ways to improve their activities. A cryptocurrency user created a 6kW solar-powered Bitcoin mining rig, which reviews a Coinshares study revealed on January 25, 2022, claiming that BTC represented only 0,08% of global carbon dioxide (CO2) emissions; so the environmental damage would not represent such a threat.

However, there is still a lot of attention over the problem. Last year a New York State legislation brought a package of prohibitions for mining activities until its environmental damage gets evaluated.

New York Alerted About the Risks of Crypto Mining Last Year

The New York Department of Financial Services (NYDFS) sent a letter last year to various financial institutions in the United States of America talking about Bitcoin mining and climate change’s risks for the world. This information got revealed by the media BeInCrypto and U.Today.

Signed by Superintendent Linda Lacewell and addressed to the representatives responsible in charge of these entities, the letter specifically pointed at cryptocurrency mining as one of the risks. The report also mentions that the power used to keep up with the Bitcoin network goes in parallel with the total electricity consumption of Venezuela.

By. Jenson Nuñez

The UK Released a New Red Alert to at least 50 Entities Listing Crypto

Jenson Nunez
-
0
The UK Released a New Red Alert to at least 50 Entities Listing Crypto

The UK Advertising Standards Authority considered that 50 crypto entities should review if they breach advertising policies.

The UK Advertising Standards Authority (ASA) revealed a new enforcement notice to more than 50 entities that currently have advertised digital currency services, suggesting they should review their advertisements to ensure they comply with the new Guidance.

The country highlighted in January this year that it would reinforce procedures on crypto-related advertisements. Earlier, in December 2021, seven crypto listings from popular entities, including exchanges, got prohibited. Recently, the ASA strictly prohibited advertisements for Floki Inu, calling them irresponsible.

The ASA revealed valuable information regarding the situation. It said that they led a Compliance Notice to more than 50 entities that advertise digital assets, directing them to review their ads and ensure they comply with the policies so that customers don’t feel uncomfortable.

The guide says that the Compliance Notice brings Guidance to the crypto industry on complying with the policies and warns that there would be a vigilance over compliance and sanctions if there is zero evolution on the subject.

The Guide Requires Advertisers

The Guidance must show that digital assets don’t face regulations in the UK and that the value of investments fluctuates and may decline from time to time.

The Guidance must not imply that investment decisions are not necessary, simple, easy, or appropriate for anyone. They should not mean a sense of urgency to purchase or create fear of losing or that the investments represent a low risk.

The ASA expressed that most users do not understand how digital assets operate, how volatile they can be, or how far from regulations they are; there is an actual risk of people losing money.

The notice applies to advertisements for digital currencies, crypto exchanges, and promotions that might include transferring or supplying digital assets directed at UK customers.

The ASA Compliance team highlighted that it would lead to follow-up vigilance. If troublesome ads keep appearing after May 2, they will apply particular enforcement action to ensure a level of compliance. This action will include non-compliant advertisers reporting to the FCA, who have contributed to distributing the Compliance Notice.

Crypto increased its popularity in recent years. General concerns are pointing out that ads lure people into spending funds they can’t afford to lose without knowing the risks these investments usually imply.

Sarah Pritchard Also Spoke Regarding the Situation

Sarah explained that she would continue to contribute with the ASA to cover the unclear crypto advertising. Users must know about any promotion that promises high investment returns and do more research before daring to invest, including through the FCA’s InvestSmart website.

By: Jenson Nuñez

In Venezuela, the Minimum Wage of Bs.130 Takes Effect, and the Petro Does not Appear in the Official Gazette

Jenson Nunez
-
0
In Venezuela, the Minimum Wage of Bs.130 Takes Effect, and the Petro Does not Appear in the Official Gazette

Although President Nicolás Maduro highlighted that the minimum wage would get connected to the value of the petro (it would run in parallel with half a petro), the Venezuelan National Gazette does not mention de digital asset.

This week, Decree No. 4,653 was published in Venezuela’s Official Gazette 6,691, dated March 15, 2021, which sets up the salary increase, which is set at 130 bolivars, equivalent to this date just over 28 dollars monthly. Not only did the mandatory monthly minimum wage experiences a boost, the amount of Retirement and Pensions also did face a change.

The curious thing about the case is that, even though the national president, Nicolás Maduro, had explicitly said that the minimum wage would get linked to the digital government currency, the petro, the coin does not have an establishment in the Official Gazette.

The Petro was the unit of account for calculating this minimum wage. Still, since its position in the Official Gazette is unclear, the compensation would not experience any increase if the value of the petro grows.

This publication, then, would not echo the statements made by Nicolás Maduro, who highlighted that the minimum wage would experience an increase in parallel to half a petro, linking the value of this monthly minimum wage to the value of the digital currency.

The Petro Suddenly Disappeared

Of course, the decree caused a wave of criticism from the Venezuelan citizens since the amount is much less than the basic basket’s current value, which got estimated at 353 dollars for February of this year, according to the Venezuelan Finance Observatory (OVF).

This decree and the lack of parity between this monthly minimum wage caused workers a whole wave of reactions. One of these negative reactions came from Pedro Eusse, the current General Coordinator of the National Front for the Working Class Struggle; he openly expressed that this increase became an unprecedented disappointment when discovering that there is no such anchorage to the petro because it doesn’t appear in the Official Gazette.

Eusse further stated that The government previously promised that they would anchor the salary at half a petro, which is a digital currency that experiences increases along with the price of oil.

For his part, Franklin Rondón, current deputy to the National Assembly, the country’s legislative entity, said about this case, that petro only served as a unit to lead a measure, and that this does not mean that the minimum wage increases every time this digital currency increases in value.

By: Jenson Nuñez

1...855856857...1,654Page 856 of 1,654