Connect with us

Blockchain

Tether Froze $300K of Stablecoin Hacked After Victims Left Wallet Keys in Evernote

Republished by Plato

Published

on

The U.S. government is pursuing a civil forfeiture claim on more than 300,000 units of the tether (USDT) cryptocurrency after they were reported stolen in a hack earlier this year.

The funds, co-owned by Shixuan Cai and business partner Lin Jian Chen, were later frozen by operator Tether Ltd. after Cai reported the theft to the Los Angeles Police Department (LAPD) in April, court documents filed on Thursday show.

Now the U.S. government wants to finalize the legal seizure of those assets, saying they are in violation of section 1030 of the Civil Forfeiture code, for “fraud and related activity in connection with computers.”

Back in February, Cai purchased 300,900 USDT – a stablecoin linked to the price of the U.S. dollar – through the cryptocurrency exchange Binance. Cai then transferred those funds to a personal wallet co-owned and managed with Chen.

Just four minutes after Cai had transferred the tether from Binance to the personal wallet, the funds were transferred again, but without the business pair’s permission, to a wallet address ending in 8869.

Hours later the funds were split with two thirds (200,600 USDT) of the funds going to yet another wallet address ending in 44c2, while 100,301 USDT remained in the 8869 wallet.

Cai contacted Chen the following day attempting to uncover how the funds had been moved, learning Chen had recorded their private key, used for authorizing transfers from their wallet, in an Evernote account.

Evernote is a note taking and task management application that stores information on the cloud and is accessible across multiple devices owned by an individual, or individuals if shared.

Hackers masking their IP address through a virtual private network (VPN) found the wallet key in Evernote and conducted multiple intrusions between Jan. 26 and Feb. 5, Chen later learned.

The key was used to authorize the transaction from their personal wallet to the destination wallet ending in 8869. Cai reported the theft two months later on April 9 to both Tether Ltd. and the LAPD where the funds were temporarily frozen by Tether pending an investigation.

A week later, Special Agent Patrick Leighton of the U.S Secret Service (USSS) was contacted by a Tether representative who said an unidentified individual was requesting a lifting of the freeze on the USDT so that they could transfer the USDT to another cryptocurrency.

Leighton asked Tether to provide the unidentified individual’s contact details and request the individual to get in touch with the agent. Shortly after Leighton was contacted by an individual who identified himself only as “Kamil,” using the email address “qlYyq2t5iKIbBfxu@protonmail.ch.”

Kamil told Leighton the funds originally belonging to Cai and Chen were transferred to him by an unidentified business partner who in turn had received the funds from an undisclosed person in China.

The China-based individual was said to have asked Kamil to handle the transfer of Cai and Chen’s funds to purchase ether on the Kyber network because they were “not familiar with cryptocurrency.”

Kamil claimed he wanted to split Cai and Chen’s funds into equal amounts over three wallets and that he would receive 15% of the total funds for conducting the intended transactions on behalf of his partner.

No further details were provided to Leighton regarding the alleged partner, with Kamil claiming he had already destroyed evidence of his partner’s information.

By May, Judge Pedro Castillo of the U.S Central District Court of California issued a seizure warrant for the roughly 300,000 USDT and in June issued an order extending the time for the USSS to execute the warrant.

At that time, Tether Ltd. unfroze the stablecoin funds at the behest of the USSS before the warrant was executed and the funds transferred to a wallet controlled by the U.S. government.

The USDT shall remain in the government’s possession subject to the Court’s jurisdiction pending the U.S. government’s claim of fraud, court documents show.

The case is a reminder never to leave any wallet keys or recovery phrases stored online where they may be accessed by bad actors.

See also: Chinese Authorities Crack Down on Gambling Sites Using Tether Stablecoin

See court document in full below:

Disclosure

Source: https://www.coindesk.com/tether-froze-300k-of-stablecoin-hacked-after-victims-left-wallet-keys-in-evernote

Blockchain

YFI’s Andre Cronje Unveils Multi-Purpose DeFi Protocol Deriswap

Republished by Plato

Published

on

Andre Cronje, the brain behind the popular DeFi protocol Yearn Finance and the most expensive cryptocurrency YFI, has unveiled yet another DeFi protocol called Deriswap.

Obsessed With Capital Efficiency

The project focuses on capital efficiency, an aspect of DeFi that Cronje said he is obsessed with. The YFI creator is set to change the current segmented liquidity, which only allows users to choose one of Swaps (Uniswap, Sushiswap, Bancor, etc.), Options (Deribit, Hegic, Opyn, etc.), and Loans (Aave, Compound, DyDx, etc.). 

He described Deriswap as a protocol that combines multiple DeFi services, including Swaps, Options, and Loans, into a capital-efficient single contract. According to the developer, this allows the interaction between two assets that make up the pair. 

For Swaps, Cronje explained that the contract on Deriswap utilizes the standard Uniswap x * y = k. For example, suppose Liquidity Providers (LPs) provide ETH-BTC as liquidity. In that case, the protocol will allow traders to swap BTC and ETH while using the oracle’s time as the weighted average price (TWAP). 

No Deriswap Token Yet

He notes that Deriswap uses the Black Scholes option pricing model to quote options. While Futures are an extension and simplification of Options, Loans are an extension and simplification of Futures. To get a loan, the user will pay a premium and collateral to access the borrowed assets. 

Lastly, the markets (loan, futures, and options) can be tokenized via Non-Fungible Tokens (NFT) to create secondary markets. 

As with many DeFi protocols, it is expected that Deriswap will have a token, and maybe with a limited supply. As a result, DeFi degens are hoping to dive in early. However, the protocol is currently under audit; hence, there’s no official Deriswap token yet. 

Cronje Continues To Explore DeFi

Since YFI’s success, Andre Cronje has become a prominent player in the DeFi ecosystem. The developer is always exploring and “experimenting” with DeFi products, even though some cost investors money due to exploits

Despite the recording failure with Eminence protocol, Cronje’s last project Keep3r Network was quite different as Keep3r’s KP3R token rallied more than 2000%, with the price moving from $10 to over $200 within a few days.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/yfis-andre-cronje-unveils-multi-purpose-defi-protocol-deriswap/

Continue Reading

Blockchain

Inevitable: Ethereum Classic’s Latest Hard Fork Called Thanos Scheduled for November 29th

Republished by Plato

Published

on

Less than two months after its latest network upgrade, Ethereum Classic plans to undergo another one on November 29th. Dubbed Thanos, the new hard fork will enhance security while maintaining its compatibility with Ethereum.

Thanos Is An Inevitable ETC Network Upgrade

The Ethereum Classic team would like to quickly forget the summer of 2020. In the span of one month, the network was subject to three separate 51% attacks.

The Ethereum Classic Core developer team and Ethereum Classic Labs decided to counteract the growing securities issues by implementing the Modified Exponential Subjective Scoring (MESS) solution on October 2nd.

MESS went live on the Mordor Testnet after passing “rigorous stress tests and simulated attacks.” It aimed to prevent attacks by making large block reorganizations up to “31x more expensive, removing any profit motive.”

However, the ETC Cooperative and Cardano developer IOHK published a report disputing the claim that the MESS update will provide “robust security.” Moreover, it argued that there’s “no guarantee that further attacks will not succeed.”

The latest response from the ETC developer team and ETC Labs has tapped the Marvel Universe for its name – Thanos.

The statement described the upgrade as an “important milestone for ETC as the network continues to drive innovations that will support existing miners and attract new ones while continuing to maintain compatibility with Ethereum.”

The Next Logical Step

According to the announcement, the Mordor Testnet activation occurred on block 2,520,000 – on October 18th, 2020. The ETC Mainnet activation is expected to take place at block 11,700,000 – around November 29th, 2020.

Consumers need to upgrade their node software to a fork compatible version to Core-geth v1.11.16 or later to ensure the success of the hard fork.

Founder and Chairman of Ethereum Classic Labs, James Wo, believes that the Thanos network upgrade will enhance the security while helping ETC to “distinguish itself and increase functionality for its users.”

“The Thanos hard fork is the natural next step for the network, reducing the DAG size to help cultivate a more distributed and healthy mining ecosystem, increasing hash rate, and allowing miners to continue mining ETC and for new miners to join the ecosystem.” – Wo added.

Featured Image Courtesy of SideShow

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/inevitable-ethereum-classics-latest-hard-fork-called-thanos-scheduled-for-november-29th/

Continue Reading

Blockchain

PayPal CEO: 28 Million Merchants Will be Able to Use Cryptocurrency for Transactions in 2021

Republished by Plato

Published

on

It is now a well-known fact that payments giant PayPal is knee-deep in the Bitcoin market. In today’s interview with CNBC, CEO Dan Schulman explained his rationale behind the world’s top cryptocurrency value. He also elucidated on why his company is placing giant buying bets on BTC.

The Utility Surrounding Bitcoin And Cryptocurrencies Is What Imparts Them Value

Upon being asked to explain the inherent value of bitcoin, PayPal CEO Dan Schulman immediately said that BTC and the aggregated class of crypto assets derive value from their utilities.

Mr. Schulman pointed out a scenario where dependability on cash has dropped 40 – 70 percent due to the ongoing coronavirus pandemic. Central banks, he said, will eventually go digital, converting paper fiat into their electronic counterparts.

The above will, in turn, bolster the utility aspect of cryptocurrencies in a significant way, in the words of the PayPal boss. Also, the company will allow the usage of crypto as a funding source for 28 million merchants on its platform.

“Early next year we’re going to allow cryptocurrencies to be a Funding Source for any transaction happening on all 28 million of our merchants and that will significantly bolster the utility of cryptocurrencies”

Lastly, Schulman pointed out the recipe for the success of cryptocurrencies. He said that the key is in working as a team with regulators.

Square, PayPal, Grayscale Rapidly Lapping Up All Available BTC

As reported by CryptoPotato, Pantera Capital attributed the latest face-melting bitcoin rally to PayPal and Square’s aggressive buying spree.

When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.

Such is the buying pressure from these financial services heavyweights that it’s causing an acute BTC shortage in the market. Due to the pre-programmed supply mathematics. Which in turn is pushing bitcoin (BTC) prices up.

As per Pantera Capital in a previous report,  the firm estimated that Cash App was picking up 40 percent of all the newly produced bitcoins that miners. Add to this the additional 70 percent BTC supply that PayPal is buying. This results in a 110 percent shopping activity. This, in turn, is creating a net 10 percent shortage.

Also, top institutional investment focused bitcoin and crypto investment fund Grayscale recently logged its best quarter with its stash size growing to 500,000 BTC. This accumulated buying activity explains why prices of the flagship cryptocurrency found their north star and are on their way to reclaiming the previous all-time highs.

Featured image courtesy of LAPM Journal

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/paypal-ceo-28-million-merchants-will-be-able-to-use-cryptocurrency-for-transactions-in-2021/

Continue Reading
Blockchain3 days ago

MUFG Plans to Launch Blockchain Payment Network in 2021

Blockchain3 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Blockchain3 days ago

SushiSwap’s SUSHI Continues Ascent, Rallies 10% on $1B in Deposits

Blockchain4 days ago

What Do We Say to People Telling us Not to Buy Bitcoin? Not Today: Arya Stark Actress on Board

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Blockchain3 days ago

Blockchain3 days ago

Bitcoin’s Network Activity Reaches an All-Time High as Price Rockets Higher

Blockchain5 days ago

Binance cries defamation, takes Forbes to Court over article

Blockchain3 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain3 days ago

Law Decoded: Green lights of the SEC, black flags of Binance, Nov. 13–20

Blockchain3 days ago

Search Engine Marketing Data Reveals Highest Retail Interest In Bitcoin Ever

Blockchain3 days ago

Companies Like PayPal Adopting Crypto, Great News For Cryptocurrency IRA Investors

Blockchain3 days ago

Bitcoin shortage is real, and PayPal is the cause, Pantera Capital claims

Blockchain3 days ago

Poloniex exchange goes down on the brink of new Bitcoin all-time high

Blockchain3 days ago

4 reasons why Bitcoin price is on the verge of a new all-time high

Blockchain3 days ago

Bitcoin Miner Riot Blockchain Ends Week Up 50% After Tapping 2-Year Highs

Blockchain3 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Blockchain2 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain5 days ago

Bitcoin, Blockchain Entrepreneur Malcolm CasSelle Dies At 50

Blockchain5 days ago

After Buying Bitcoin at $800 in 2016, Mexico’s Second-Richest Man Doubles Down

Blockchain3 days ago

US regulator wants to stop banks from blacklisting legal businesses, crypto included

Blockchain3 days ago

Billionaire Masayoshi Son Talks Bitcoin in Interview With New York Times

Blockchain3 days ago

US-Based Firm Launches Company-Sponsored Bitcoin Retirement Plans

Blockchain2 days ago

XRP Sees Parabolic Explosion Overnight as Analysts Eye Further Upside

Blockchain5 days ago

Ethereum Price Analysis: ETH Hits 4-Month Lows Against BTC But Where’s The Bottom?

Blockchain5 days ago

TomoChain Partners With Vietnam’s Ministry of Education and Training

Blockchain5 days ago

Market Watch: Bitcoin Records Highest Ever Market Cap, ATH Price Next?

Blockchain5 days ago

Ethereum Price Analysis: ETH Hits 4-Month Lows Against BTC But Where’s The Bottom?

Trending