Your Tech Story

cryptocurrency

bitcoin

What’s behind bitcoin’s latest surge?

Leave a Comment / Story, Tech Story / By

In the midst of a gloomy winter at the beginning of the year, bitcoin was in bad shape after 2022 marked by falling cryptocurrency prices, company scandals, and bankruptcies.

In fewer than three months, bitcoin has regained its luster. It has outperformed other significant commodities this year with gains of over 70%, and on Wednesday, it was trading close to its highest level in nine months.

Image Source: theprint.in

The first and largest cryptocurrency has been through this before; over its 15-year existence, it has experienced both dizzying price increases and drops. Interest rates are driving the increases.

Also Read: Why Google suspended China’s Pinduoduo app?

According to six investors and analysts from the crypto and conventional finance industries who spoke to Reuters, markets anticipate that central bank increases in the cost of credit are reaching their peak, which is expected to support risky assets like bitcoin.

Other factors are also in play, such as the banking industry’s unrest and persistent but unfulfilled hopes that bitcoin will become a widely accepted method of payment. On Sunday, Bitcoin recorded its greatest week in four years and has since increased by 45% in just 12 days.

Suggestions that bitcoin is an asset resistant to risks in conventional finance have gained momentum as the failure of American firms Silicon Valley Bank and Signature Bank served to prompt the takeover of 167-year-old Credit Suisse by competitor UBS on Sunday.

According to Usman Ahmad, CEO of Zodia Markets, a cryptocurrency exchange run by the venture arm of Standard Chartered and Hong Kong-based BC Technology Group, “It’s rather narrow-minded to say that bitcoin is going to succeed because a bank failed. But confidence is almost a critical factor – confidence in the banking system has been damaged.”

Significant changes in bitcoin’s price in the past have been closely related to changes in global monetary policy. Stay-at-home investors fueled a six-fold gain for bitcoin between September 2020-April 2021 as stimulus measures inundated the worldwide financial system during the COVID-19 pandemic.

These actions, combined with growing interest in cryptocurrencies from bigger investors and businesses, led proponents of the technology to proclaim that there was less chance that it would experience the violent crashes that have historically occurred after bitcoin rallies.

Bitcoin, however, fell by over fifty percent from the all-time high of $69,000 in merely 75 days as rates started to rise as signs of rogue inflation late in 2021 drove central government agencies and banks to curtail stimulus packages.

Also Read: With GPT-4, are we one step closer to losing our jobs?

The decline of a significant crypto token in 2022, brought on by higher interest rates, caused the closure of significant hedge funds and crypto lenders, and a drop in bitcoin of over 65%.

Regulatory issues and the abrupt collapse of the FTX market further battered it. Despite the claims of its supporters that bitcoin is a secure haven asset in periods of economic and political stress, the disastrous year served as another warning of its susceptibility to outside shocks.

Kraken

Crypto exchange Kraken to stop operations in Japan

Leave a Comment / News, Tech News / By

Kraken, a US-based cryptocurrency exchange, announced on Wednesday, December 28 that it would shut down operations in Japan in the upcoming month, citing the country’s current market conditions as well as a flawed crypto market around the globe.

Kraken
Image Source: reuters.com

Kraken will deregister itself from JFSA (the Financial Services Agency) on January 31, at which point clients will be required to retract their fiat and cryptocurrency holdings, in accordance with a statement.

Kraken stated that it is funded entirely to make sure that almost all influenced clients can withdraw their investments as soon as possible.

Kraken announced last month that it is planning to decrease its workforce by 30 percent, or approximately 1,100 employees, due to weak market dynamics.

Bitcoin, the world’s most valuable cryptocurrency, has lost 60 percent of its value this year, while the overall crypto market has shrunk by US$1.4 trillion, crushed by the demise of Sam Bankman-FTX Fried’s aristocracy, Celsius, and alleged “stablecoins” terraUSD and Luna.

Kraken said customers should withdraw their fiat and crypto holdings before that date, with the exchange “fully funded to ensure all affected clients can withdraw their assets in a timely manner”.

“Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time. As a result, Kraken will no longer service clients in Japan through Payward Asia,” Kraken said.

“We value the trust our clients put in us and we will do what we can to minimize the impact of our decision on you. That’s why we are committed to ensuring a seamless transition and we hope the information in this email will help you decide what is the best option for you.”

Source: aljazeera.com

In 2022, cryptocurrency prices have dropped sharply, with the flagship resource Bitcoin having lost approximately two-thirds of its worth ever since the beginning of the year.

Kraken, itself through the branch Payward Asia, heretofore went out of business in Japan in the year 2018, citing rising business costs, before actually relaunching with a Tokyo workplace after two years.

microsoft

Microsoft bans cryptocurrency mining on cloud services

Leave a Comment / News, Tech News / By

According to media sources, Microsoft has prohibited cryptocurrency mining from using its internet services in order to protect all of its cloud users.

Microsoft has amended the Universal License Terms for Online Services, which went into effect on December 1. Microsoft has restricted the use of online services for crypto-mining. It is implemented to safeguard its consumers and cloud services. The IT behemoth announced the latest changes earlier this month.

MIcrosoft
Image Source: economictimes.indiatimes.com

The update stated, “Neither Customer nor those that access an Online Service through Customer, may use an Online Service … to mine cryptocurrency without Microsoft’s prior written approval.”

Microsoft’s Summary of Changes to the license mentioned, “Updated Acceptable Use Policy to clarify that mining cryptocurrency is prohibited without prior Microsoft approval.”

Read More: Microsoft to Offer Call of Duty on Nintendo Devices if Activision Deal Closes

Microsoft suggested requesting pre-approval authorization to use any of its online services for cryptocurrency mining in the ‘Acceptable Use Policy’ section of its website, which comes amid rising worries about cyberfraud and threats.

The company noted, “Cryptocurrency mining can disrupt or even impair Online Services and its users, and is often associated with unauthorized access to and use of customer accounts.

We made this change to further protect our customers and mitigate the risk of disrupting or impairing services in the Microsoft Cloud. Permission to mine crypto may be considered for Testing and Research for security detections.”

Cryptocurrency cloud mining enables users to mine without the need for additional hardware or equipment. According to statistics from the blockchain research firm, Blockchain Council, this aspect of no cost associated has piqued clients’ interest in cloud mining. Microsoft Online Services, a part of the company’s SaaS strategy, is its hosted software product.

One of these services is the Microsoft Azure cloud computing network, which offers cryptocurrency mining for several subscription kinds. As was reported earlier, Microsoft also tested out blockchain services on Azure, but in September of last year, the project abruptly ended.

According to sources, Microsoft cloud computing systems have experienced storage issues in recent years as a result of constraints in the ongoing supply chain. Microsoft issued a warning to users about a new cryptocurrency mining malware last year that has the ability to steal credentials, disable security measures, proliferate via emails, and eventually drop additional tools for human-operated operations.

The cryptocurrency mining malware known as “LemonDuck” is propagated by phishing emails, vulnerabilities, USB devices, and brute force assaults in a number of nations, including India. It targeted Linux and Windows systems. This is not the first time that a major IT company has prohibited cryptocurrency mining on its website.

Similar rules apply at Google, which forbids mining without explicit written consent from the company. A mining malware threat detection solution for hacked accounts in Google’s cloud service was added earlier in 2022. Google stated last year that the majority of “malicious actors” had utilized compromised cloud accounts to mine cryptocurrency.

Crypto mining is likewise not permitted during the 12-month free trial of Amazon’s AWS. If users decide to mine on AWS, they can be charged a fee and risk having their accounts suspended.

Binance

Binance withdrawals hit $1.9 billion in 24 hours

Leave a Comment / News, Tech News / By

Binance, the biggest cryptocurrency exchange in the world saw $1.9 billion worth of withdrawals in only one day. Regulators are closely monitoring how cryptocurrency exchanges like Binance and the now-bankrupt erstwhile rival FTX handle customer deposits.

Binance
Image Source: taiwannews.com.tw

The U.S. Securities and Exchange Commission charged FTX founder Sam Bankman-Fried on Tuesday with defrauding investors. According to Nansen data, the $1.9 billion in withdrawals of Ethereum-based tokens represents the highest 24-hour outflow of assets since June 13 and is responsible for most of the money taken out during the previous seven days.

According to Binance CEO Changpeng Zhao, the exchange has once witnessed “some withdrawals” totaling over $1.1 billion. He then stated that the business had experienced worse days before. He tweeted, “We’re seeing the money flowing back already. We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits.”

Zhao, also known as “CZ,” claimed that after FTX’s demise in November, people had lost faith in the cryptocurrency industry. Sam Bankman-Fried, the founder of Binance’s former rival, was arrested this week in the Bahamas after being charged with a crime in the US. Early in November, FTX collapsed, sparking a surge of public calls for more regulations of the cryptocurrency sector.

Sam Bankman-Fried, the exchange’s founder, had bragged that it was the “most regulated,” yet he had established it in the Bahamas, where regulation was lax and had covertly exploited customer deposits. Attorneys for FTX said during a bankruptcy hearing that Bankman-Fried operated the exchange as a “personal fiefdom.” According to Bankman-Fried, he didn’t intentionally do anything improper.

The cost of digital coins has been falling due to worries about the industry’s state. With a year-to-date loss of more than 60%, the price of bitcoin was last going below $18,000.

However, following FTX’s stunning collapse, Binance’s company is also being scrutinized. According to unnamed sources cited by Reuters on Monday, US authorities were considering concluding its probe into Binance’s money laundering by “filing criminal charges against specific officials, including founder Changpeng Zhao.”

Bankman-Fried was charged with eight crimes, including conspiracy and wire fraud, on Tuesday in the US. US markets watchdogs have also accused Bankman-Fried of scamming investors and clients separately.

Bankman-Fried, often known as “SBF,” is a well-known figure in the cryptocurrency world who was instantly shunned after his business experienced a liquidity difficulty and declared bankruptcy last month, preventing at least one million depositors from having access to their money.

Splits among US Department of Justice officials are delaying the resolution of a protracted criminal investigation into Binance, the largest cryptocurrency exchange in the world, as per Reuters. The inquiry was launched in 2018 and is concentrated on Binance’s compliance with American anti-money laundering rules and sanctions.

As per Reuters several of the at least six federal prosecutors working the case feel that the information previously acquired supports taking serious action against the crypto exchange and charging certain officials, including the founder Changpeng Zhao, with crimes. The sources claimed that others have urged for taking the time to consider further evidence.

Sam Bankman-Fried

Former FTX CEO Sam Bankman-Fried arrested in the Bahamas

Leave a Comment / News, Tech News / By

Sam Bankman-Fried, an American entrepreneur, businessman, and former billionaire, was detained in the Bahamas after US prosecutors filed criminal charges against him.

Sam Bankman-Fried, the former CEO of FTX, was detained on Monday in the Bahamas based on allegations brought in the United States. Several charges of wire fraud and conspiracy in relation to the failure of his crypto exchange are among the federal accusations that were revealed on Tuesday morning.

Sam Bankman-Fried
Image Source: businesstoday.in

The Office of the Attorney General of the Bahamas stated in a statement issued on Monday that Fried’s arrest is following the receipt of formal information from the USA that it has brought criminal charges against Fried and is likely to request his extradition.

Fried was taken into custody, according to the U.S. Attorney’s Office for the Southern District of New York, which also noted that the arrest was undertaken in accordance with a sealed indictment.

Seven charges, including wire fraud and conspiracy to commit wire fraud against lenders and customers, securities fraud, conspiracy to commit money laundering, and infringements of campaign finance laws, were included in the grand jury’s indictment against Fried.

The Justice Department and federal regulators were looking into whether FTX utilized client cash to support risky wagers at Fried’s hedge company, Alameda Research.

The Department of Justice is exploring charges against Binance, the top exchange in the cryptocurrency market, at the same time as US officials have indicted Bankman-Fried. According to Reuters, some Justice Department officials think they have enough evidence in their extensive investigation of Binance to bring charges against the firm and some of its top executives.

According to Reuters, Binance is being looked at for potential money laundering and sanctions violations. Four people with knowledge of the situation told Reuters that other department members have argued in favor of devoting time to reviewing further evidence.

Additionally, the arrest occurred a day before Fried was supposed to testify before American lawmakers on Tuesday and provide testimony via video link.

According to Reuters, Bankman-Fried surreptitiously transferred $10 billion in FTX customer money to his private trading company, Alameda Research, which led to FTX’s liquidity crisis.

Sam Bankman-Fried attempted to separate himself from allegations of fraud in a series of statements and media interviews acknowledging risk management problems but claiming he never purposefully mixed customer assets on FTX with assets at Alameda.

Before it shut down last month, FTX was among the biggest crypto exchanges in the world. In a single day, users withdrew around $5 billion worth of cryptocurrency as worries about the exchange’s viability grew. On November 11, Bankman-Fried submitted his resignation, and FTX declared Chapter 11 bankruptcy.

Additionally, Bankman-Fried was sued by American cryptocurrency investors who claimed that he and numerous celebrities who advocated FTX used misleading tactics, causing the investors to lose $11 billion in losses.

The collapse of FTX was the latest upheaval for the cryptocurrency market this year. A string of meltdowns that have brought down other significant players like Voyager Digital and Celsius Network has caused the total cryptocurrency market to decline.

stolen bitcoin

US seizes over 50K Bitcoin worth $3.3 bn stored in a popcorn tin

Leave a Comment / News, Tech News / By

The US Justice Department revealed Monday that it seized approximately 3.36 billion USD in stolen Bitcoin throughout an impromptu 2021 raid on James Zhong’s residence.

stolen bitcoin
Image Source: kalingatv.com

Zhong pled guilty to one count of wire fraud on Friday and it carries a maximum prison sentence of 20 years.

According to the DOJ, on Nov. 9, 2021, US authorities seized approximately 50,676 Bitcoin, which was then valued at more than 3.36 billion USD, from Zhong throughout a search of his residence in Gainesville, Georgia. 

It is the DOJ’s second-largest financial seizure to date, following its February unveiling of 3.6 billion USD in illegally obtained cryptocurrency connected to the 2016 hack of the crypto exchange Bitfinex.

Authorities claim Zhong robbed Bitcoin out of the illegal Silk Road marketplace, a dark web forum where drugs and other illegal goods were bought and sold with cryptocurrency. Silk Road was established in 2011, but it was shut down by the FBI (the Federal Bureau of Investigation) in 2013. Ross William Ulbricht, its founder, is currently serving his life sentence in a jail cell.

“For almost ten years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over $3.3 billion mystery,” U.S. Attorney Damian Williams stated a press release.

Source: cnbc.com

As reported by the Southern District, New York, Zhong used vulnerabilities in the marketplace to carry out the hack.

Internal Revenue Service Criminal Investigation Special Agent in charge, Tyler Hatcher stated that Zhong used a sophisticated scheme to seize the stolen Bitcoin from Silk Road. Following the press release, Zhong generated nine fraudulent Silk Road accounts in September 2012, financing each with between 200 Bitcoin and 2,000 Bitcoin.

He then executed over 140 transactions in quick succession, fooling the marketplace’s withdrawal-processing system into releasing roughly 50,000 Bitcoin into his accounts. Zhong then deposited the Bitcoin to several wallet addresses that he controlled.

Law enforcement and blockchain analytic experts were able to recover more than 50,000 stolen Bitcoin from Zhong through blockchain assessment and good old-fashioned police work. Based on the press release, they even discovered crypto stored on a computer buried beneath blankets found in a popcorn tin placed in a bathroom closet.

According to public records, Zhong was the CEO and president of a self-made firm, JZ Capital LLC, which he enrolled in Georgia in 2014. As per his LinkedIn profile, his job there was focused on investments and venture capital.

His profile also states that he was a large early Bitcoin investor with deep experience and knowledge of its inner workings and also, that he had experience in software development in various coding languages.

Pictures of Zhong on yachts, in front of aircraft, and at high-profile football matches can be found on his social media profiles.

However, such types of cheats did not stop with the demise of the Silk Road. Criminals continue to target cryptocurrency platforms.

Binance, the nation’s biggest crypto exchange calculated by trading volume, was hacked for $570 million in October 2022. According to the company, hackers were able to exploit a cross-chain bridge, BSC Token Hub, due to a bug in a smart contract. As a result, the cybercriminals withdrew BNB tokens, the platform’s native cryptocurrency.

A different hacker discovered vulnerabilities in the decentralised finance platform Ronin Network in March 2022 and stole more than 600 million USD and became the largest hack to date. Private keys were compromised which act as passwords to secure cryptocurrency funds in wallets.

According to a Chainalysis report, through July 2022, $1.9 billion in cryptocurrency had been stolen in service hacks, compared to just below 1.2 billion USD at the same point in 2021.