OKX, the decentralized exchange (DEX), fell victim to a $2.7 million hack on December 13, when it was discovered that the private key of the proxy admin owner had been compromised.
The incident was first brought to light by SlowMist Zone, a blockchain security firm, in a post on X (formerly Twitter).
According to their report, the issue began on December 12, 2023, around 10:23 pm when the proxy admin owner upgraded the DEX proxy contract to a new implementation contract.
This upgrade triggered a series of events in which a user started stealing tokens from the platform.
Around 11:53 pm, the proxy admin owner made another contract upgrade, but the user continued to exploit tokens.
SlowMist Zone suggested that the attack might be linked to the alleged leakage of the proxy admin owner’s private key. Subsequently, OKX DEX removed the DEX proxy from its trusted list.
Scopescan, an on-chain analysis firm, also reported the attack and mentioned that users had reported the event.
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After contacting OKX DEX, they were informed that an old abandoned contract had been attacked but was subsequently located and stopped.
The DEX assured users that any losses resulting from the hack would be fully covered.
The hack resulted in a total loss of approximately $2.7 million in various cryptocurrencies, according to PeckShield, another blockchain security company.
They advised users to “revoke allowances” if necessary.
In response to the incident, some users highlighted the misconception that decentralized platforms are immune to security breaches.
They emphasized the importance of caution in the decentralized space, as demonstrated by the OKX DEX hack.
The cryptocurrency industry has suffered significant losses throughout the year, with approximately $1.5 billion attributed to hacks, exploits, and scams up until September 2023.
In the fourth quarter, other platforms like Poloniex and the HECO Chain bridge also experienced substantial losses due to exploits and hacks.
Coinelegraph reached out to OKX for further details regarding the exploit, seeking clarification and additional information on the incident.
BlackRock has made a significant alteration to its Bitcoin exchange-traded fund (ETF) application, aiming to facilitate participation by major Wall Street banks.
This change involves the creation of new fund shares using cash, rather than relying solely on cryptocurrency assets.
The innovative “in-kind redemption prepay” model is designed to enable banking giants like JPMorgan and Goldman Sachs to become authorized participants in the fund.
This would allow them to bypass restrictions that currently prohibit them from directly holding Bitcoin or other cryptocurrencies on their balance sheets.
This transformative model was presented jointly by six members of BlackRock and three from Nasdaq during a meeting held on November 28th with the United States Securities and Exchange Commission (SEC).
If granted approval, this development could prove to be a game-changer for Wall Street institutions with trillion-dollar balance sheets, as it opens up a new avenue for their involvement.
Many highly regulated banks are presently barred from directly holding cryptocurrencies.
Under the revised model, authorized participants (APs) would transfer cash to a broker-dealer, which would then convert it into Bitcoin before entrusting it to the ETF’s custody provider, Coinbase Custody in BlackRock’s case.
This arrangement also effectively shifts risk away from APs and places it more in the hands of market makers.
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Furthermore, BlackRock asserts that this new model enhances resistance to market manipulation, which has previously been a key factor in the SEC’s rejection of spot Bitcoin ETF applications.
Additionally, BlackRock contends that the new ETF structure will bolster investor protections, reduce transaction costs, and promote simplicity and consistency within the broader Bitcoin ETF ecosystem.
According to a filing with the SEC, BlackRock had its third meeting with the SEC, led by Gary Gensler, on December 11.
Notably, this meeting on November 28 with the SEC was a follow-up to an initial meeting held on November 20, where BlackRock introduced its original in-kind redemption model.
The SEC is obligated to make a decision on BlackRock’s application by January 15, with the final deadline set for March 15.
In the meantime, ETF analysts anticipate that the SEC will issue decisions on several pending spot Bitcoin ETF applications sometime between January 5 and 10.
Grayscale, Bitwise, VanEck, WisdomTree, Invesco Galaxy, Fidelity, and Hashdex are among the other financial firms eagerly awaiting the SEC’s decisions during this period.
Bitcoin’s price has remained below its 2023 high, indicating that the $44,000 resistance level has proven stronger than initially anticipated by investors.
Despite trading below $42,000, there is still potential for Bitcoin to reach $50,000 and beyond. In fact, signs suggest that this may be more likely than not.
A closer look at Bitcoin derivatives metrics reveals that traders have remained optimistic, even after a 6.9% drop.
However, the question remains: is this optimism justified for further gains?
On December 11, a significant $127 million liquidation of leveraged long Bitcoin futures occurred.
While this may seem substantial, it accounts for less than 1% of the total open interest, which encompasses the value of all outstanding contracts. Nevertheless, this liquidation triggered a 7% correction in less than 20 minutes.
Some argue that derivatives markets played a key role in this negative price movement, but it’s important to note that Bitcoin’s price rebounded by 4.2% in the following six trading hours after hitting a low of $40,200 on December 11.
This suggests that the impact of forceful liquidation orders had dissipated, disproving the idea of a crash solely driven by futures markets.
To assess whether Bitcoin whales and market makers remain bullish, traders can analyze the Bitcoin futures premium, also known as the basis rate.
In stable markets, these contracts typically trade at a premium of 5% to 10% due to their extended settlement period.
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Data shows that despite the 9% intraday price drop on December 11, the BTC futures premium remained above the 10% neutral-to-bullish threshold throughout.
This indicates that there was no significant excess demand for shorts, as the metric did not drop into the neutral 5% to 10% range.
Examining options markets is another way to gauge investor sentiment. The 25% delta skew is a useful indicator that reflects whether arbitrage desks and market makers are charging excessively for upside or downside protection.
The BTC options skew has remained neutral since December 5, signaling balanced costs for both call and put options, showing resilience even after the 6.1% correction since December 10.
Furthermore, data on perpetual contracts, which include an embedded rate recalculated every eight hours, reveals a modest increase in the positive funding rate between December 8 and December 10.
This suggests increased demand for leverage among long positions, but the increase is not significant enough to burden most traders.
Overall, the recent rally to $44,700 and subsequent correction to $41,300 appear to have been primarily driven by the spot market.
This development reduces the likelihood of cascading liquidations due to excessive optimism related to the expectation of a spot exchange-traded fund (ETF) approval.
In summary, Bitcoin bulls can take comfort in the fact that derivatives metrics indicate that positive momentum has not waned despite the price correction.
Bitcoin speculators rushed to sell their holdings as the BTC price experienced a correction towards the $40,000 mark, according to the latest on-chain data.
On December 12th, figures from on-chain analytics firm Glassnode revealed that short-term holders (STHs), defined as entities holding BTC for 155 days or less, collectively offloaded over $2 billion worth of BTC.
This came as Bitcoin witnessed its most significant single-day drop of 2023, reaching a peak decline of 8.1%. The data was confirmed by Cointelegraph Markets Pro and TradingView.
Responding to the price drop, the more speculative segment of Bitcoin investors began reducing their exposure to the market, displaying signs of uncertainty about its future.
Glassnode’s data disclosed that on December 11th, STHs sent $1.93 billion worth of Bitcoin to exchanges, followed by another $2.08 billion on the subsequent day.
Both of these days marked record highs in terms of selling pressure from STHs, with entities in both profit and loss positions contributing to the trend.
The last time single-day selling exceeded the $2 billion threshold was in June 2022, triggered by concerns over the impending collapse of blockchain firm Celsius.
James Van Straten, a research and data analyst at crypto insights firm CryptoSlate, highlighted the significance of the week’s STH movements, noting that $2 billion was sold in total, with $1.1 billion resulting in losses.
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This mainly impacted retail investors who had bought Bitcoin between December 6th and December 13th, likely due to the allure of Bitcoin’s 150% year-to-date gain.
While the trading volumes in BTC terms were less substantial, the December 12th figures marked the largest since the beginning of July when BTC/USD had just rebounded above the $30,000 level after dipping to $25,000.
Glassnode also pointed to various on-chain indicators suggesting that STHs might be growing wary of the bullish trend.
Profit-taking was noted around the month’s 19-month high near $45,000, and the researchers suggested that there might be a potential saturation of demand or exhaustion in play.
One of the key indicators highlighted was the Mayer Multiple, which gauges the relationship between the current spot price and the 200-week moving average.
The Mayer Multiple was approaching 1.5, a level that has historically acted as resistance during Bitcoin’s bull markets.
Glassnode stated that the current Mayer Multiple of 1.47 is close to the ~1.5 level, which has historically acted as resistance in previous cycles, including the November 2021 all-time high.
This level has not been breached for 33.5 months, the longest period since the 2013-2016 bear market.
Dominic Williams, the founder and chief scientist at Dfinity, has emphasized the unique potential of blockchain technology in combating climate change due to its decentralized and trustless nature.
He outlined three key ways in which blockchain can contribute to addressing climate challenges, including incentivizing climate action, improving efficiency, and providing an eco-friendly alternative to traditional information technology.
Blockchain networks have the capacity to establish trustless infrastructure that offers incentives for climate-related initiatives.
Additionally, they enhance efficiency while reducing the carbon footprint associated with conventional information technology systems.
One notable example illustrating the positive impact of blockchain on the environment is the Voluntary Recycling Credits (VRC) initiative.
The VRC initiative, designed to counteract the solid waste footprint, was recently introduced at the COP28 summit and operates on the Internet Computer (ICP) network.
Williams emphasized that the VRC is entirely on-chain, devoid of traditional tech dependencies like cloud services, which ensures transparency and eliminates potential gatekeepers.
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International participants involved in minting and purchasing recycling credits can trust the accuracy and integrity of the system.
Williams further elaborated on how blockchain networks like ICP provide trustless infrastructure, eliminating the need for third-party intermediaries and enabling secure and transparent data verification.
This capability is instrumental in monitoring the proper recycling and management of waste materials, effectively tracing them from their origin to their final destination.
The Voluntary Recycling Credits exchange, facilitated by the ICP, enables auditable and secure transactions between waste offsetters and recycling companies.
This functionality empowers waste producers and recyclers to have complete confidence in the authenticity of the credits they purchase, sell, or trade.
Williams stressed that the ICP ensures the VRC operates transparently and in a tamper-proof manner, solidifying the trustworthiness of minted and sold recycling credits and transactions.
In summary, Dominic Williams advocates for the pivotal role of blockchain technology in the fight against climate change.
Blockchain networks, such as the Internet Computer, provide trustless infrastructure, enhance transparency, and promote secure and eco-friendly solutions like the Voluntary Recycling Credits initiative.
These innovations hold great promise in incentivizing climate action and reducing the environmental impact of information technology systems.
Bitcoin’s price experienced a 5% dip within the last 24 hours, settling at $41,645 on December 11.
However, despite this sudden correction, technical indicators and on-chain data suggest that Bitcoin remains robust, as bulls actively work to push the price back above the $44,000 mark.
On-chain data indicates that Bitcoin’s price had become “over-extended.” It plummeted by as much as 7.2%, reaching $40,300 on Coinbase, which led to discussions among analysts.
Julio Moreno, head of research at CryptoQuant, an on-chain analytics firm, pointed out that Bitcoin’s price had become “overheated” following its recent surge above the psychologically significant $40,000 level.
Further data from the on-chain data analysis firm Lookintobitcoin revealed signs of exhaustion among bullish investors.
According to their December 2023 report, Bitcoin’s price had reached its near-term target as per the golden ratio multiplier, a metric based on the Crosby Ratio.
This highlighted that Bitcoin’s near-term price had become “over-extended,” necessitating a correction or at least a slowdown.
In essence, Bitcoin had entered overbought conditions above $40,000, with its relative strength index (RSI) indicating overbought status since December 5.
This early warning signaled a potential reduction in buying pressure as traders began to perceive the rally’s loss of momentum and took profits.
The primary challenge for Bitcoin’s price remains the formidable resistance at the $44,000 supply zone.
The Lookintobitcoin golden ratio multiplier indicator indicated that the 1.6 multiplier target had been reached around this area. Bitcoin has struggled to convincingly breach this level over the past week, facing significant rejection.
The intensity of the resistance at $44,000 is underscored by on-chain data from IntoTheBlock’s “in/out of the money around price” (IOMAP) model.
This data indicates that the $43,346–$44,627 price range is where approximately 585.77 BTC was previously acquired by approximately 1.43 million addresses.
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Any attempts to surpass this level would likely encounter aggressive selling from this group of sellers.
Nonetheless, this ongoing correction may be viewed as a bear trap within an overall bullish trend that has developed over recent months.
Data from crypto market intelligence firm Santiment indicates that Bitcoin’s exchange outflows are on the rise, with the BTC exchange flow balance now at -347.
This negative reading implies that outflows are surpassing inflows, a sign that investors are more inclined to hold than sell, which is generally considered bullish.
From a technical perspective, Bitcoin has remained above all major moving averages, and these indicators have continued their upward trajectories, providing strong support levels.
The moving average convergence divergence (MACD) indicator also remains in positive territory, with the MACD line positioned above the signal line, favoring further upward movement in Bitcoin’s price.
Therefore, it is likely that Bitcoin’s price will continue to rise from its current levels, with buyers targeting a breakout above $44,000.
A successful break beyond this level could propel Bitcoin toward the psychological milestone of $50,000, either in early 2024 when the United States Securities and Exchange Commission is expected to decide on spot Bitcoin exchange-traded fund applications or during the next Bitcoin halving event.
Your cryptocurrency wallet is your fortress, but it needs protection, too. This article discusses AML checks for cryptocurrency wallets, explaining how they safeguard your digital assets from potential threats.
In the rapidly evolving world of cryptocurrencies, safeguarding digital assets is paramount. Cryptocurrency wallets are the gateway to your holdings, making them a prime target for malicious actors. To fortify your digital fortress, AML wallet check have become crucial to wallet security and compliance.
The Need for AML Wallet Checks
Cryptocurrencies offer unparalleled freedom and privacy, but these advantages attract nefarious activities such as money laundering, fraud, and illicit transactions. AML compliance in crypto wallets ensures that individuals and businesses adhere to regulatory guidelines and prevent these illicit activities from occurring within the blockchain ecosystem.
Addressing Wallet Security Measures
Wallet AML checks encompass a range of security measures to protect your digital assets. These measures include identity verification, transaction monitoring, and risk assessment. By implementing AML solutions, wallet providers can ensure that users’ funds are safe and comply with regulations.
Secure Digital Asset Storage
One of the primary objectives of AML wallet solutions is to safeguard your digital assets from theft and unauthorized access. These solutions employ encryption and multifactor authentication to fortify the security of your wallet. This ensures that your assets remain out of reach even if your wallet falls into the wrong hands.
Wallet Compliance and Monitoring Services
Wallet providers are increasingly investing in AML compliance and wallet monitoring services. These services regularly assess wallet activities, flagging suspicious or potentially illicit transactions for further investigation. By doing so, they protect their users and contribute to the overall integrity of the cryptocurrency ecosystem.
Cryptocurrency Wallet Protection
AML wallet solutions also play a crucial role in preventing the use of wallets for illegal activities. They maintain watch lists of known fraudulent addresses, blocking transactions to and from them. This proactive approach helps to curb the potential for money laundering and other illicit financial activities within the cryptocurrency space.
Safeguarding Digital Assets
In the age of digital assets, safeguarding your cryptocurrency holdings is of utmost importance. AML for crypto wallets checks provides a shield against the rising tide of crypto-related crimes. By adopting wallet solutions that prioritize AML compliance and security, you can enjoy the benefits of digital assets while minimizing the associated risks.
Conclusion
In conclusion, AML checks have become essential to the cryptocurrency landscape. They are a robust defense mechanism against the growing threats of money laundering, fraud, and illicit transactions. Cryptocurrency users can prioritize digital wallet security, compliance, and monitoring services to protect their digital assets in an increasingly interconnected and digital world.
Giddy, a self-custody smart wallet, is revolutionizing the way crypto enthusiasts interact with DeFi by incorporating Stripe, a leading payment provider, into its mobile app. This integration marks a significant advancement in making cryptocurrency purchases more user-friendly and accessible.
By collaborating with Stripe, Giddy is expanding the options for converting fiat currency to crypto. This partnership allows users to conveniently fund their self-custody wallets through various payment methods supported by Stripe, such as bank transfers, credit cards, and Apple Pay®. This initiative reflects Giddy’s commitment to simplifying the crypto acquisition process, catering to both new and seasoned crypto users.
Eric Parker, Giddy’s CEO, emphasized the challenges of buying self-custody crypto and expressed enthusiasm for the Stripe integration. He highlighted Stripe’s efficiency and ease of use, making it an ideal platform for rapid crypto transactions.
In a groundbreaking move, Giddy is also introducing native Bitcoin network support. This feature extends the capabilities of Giddy’s innovative multi-factor private key solution, which was previously limited to Ethereum, Arbitrum, and Polygon networks. Giddy’s wallet is distinguished by its unique security approach, wherein a user’s private key is divided into several encrypted parts, enhancing safety and recovery options.
The Giddy app is designed to be user-friendly, integrating various functionalities like purchasing, sending, trading, earning, and shopping with cryptocurrencies. Available on both the App Store and Google Play, the app aims to simplify the crypto experience for everyday users.
Founded in 2021 by Eric and Ethan Parker, Giddy is on a mission to democratize decentralized finance. The platform’s unique feature is its self-custody yet recoverable smart wallet, which ensures users maintain full control over their funds. Giddy’s integration with Stripe is a significant step towards making crypto transactions more seamless and accessible to a broader audience.
Wylie Aronow, the NFT entrepreneur known as Gordon Goner, has reaffirmed his decision to stay away from Yuga Labs, the NFT company he co-founded, despite making progress with his health.
Addressing rumors of his potential return, Aronow stated on December 11 that he is not prepared to resume even part-time work, emphasizing the importance of ensuring his long-term well-being for those who depend on him.
He explained that his health journey is still marked by unpredictable fluctuations, making it a marathon-like endeavor.
Some days, Aronow feels ready to fully immerse himself in work, while on other days, he finds himself in need of emergency medical attention.
Aronow took a leave of absence in late January due to a congestive heart failure diagnosis. At the time, he also dismissed allegations of Yuga Labs using neo-Nazi and racist imagery as “lies” and pledged to continue serving as a board member and strategic advisor to the company.
Despite stepping back from day-to-day operations, Aronow has remained involved in overseeing Yuga Labs, which is responsible for NFT projects like Bored Ape Yacht Club (BAYC) and CryptoPunks.
He has identified key issues hindering the company’s progress and recently addressed them during a board meeting.
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While Aronow has confidence in the current leadership of Yuga Labs, he acknowledges the pressure the company faces in 2024 and believes they will rise to the occasion.
He expressed his support for the team, signaling his commitment to their success.
Reflecting on his past approach to work, Aronow admitted that he had pushed himself beyond his limits, working long hours nearly every day. He regrets not seeking a better work-life balance earlier, heeding the advice of those around him.
Yuga Labs underwent leadership changes during Aronow’s absence, appointing Daniel Alegre, former president and chief operating officer of Activision Blizzard, as CEO.
Aronow, along with Greg Solano, Zeshan Ali, and Kerem Atalay, co-founded Yuga Labs in February 2021.
The company is renowned for its NFT creations, including CryptoPunks, Bored Ape Yacht Club (BAYC), MeeBits, and Othersidemeta. As they head into 2024, Yuga Labs is gearing up for a critical year with a renewed focus on innovation and progress.
Avalanche (AVAX) has defied the recent downtrend in the cryptocurrency market, standing out with an impressive 79% weekly gain while other digital assets have struggled.
Analysts attribute this resilience to various factors, including notable partnership announcements, increased trading volumes, and a shift in how altcoins are perceived.
On December 11, while Bitcoin and Ethereum experienced a 6% decline, AVAX recorded a remarkable 13.6% gain within a 24-hour period, according to CoinGecko data.
One contributing factor to the excitement surrounding AVAX is its recent partnerships with financial giants JPMorgan and Citigroup through collaborations with the Avalanche Foundation.
These partnerships focus on real-world asset tokenization initiatives, sparking interest among investors.
Ryan Mcmillin, the Chief Investment Officer at Merkle Tree Capital, highlighted the surge in daily transactions for AVAX, which has grown from around $200,000 to $4.5 million in just a few days.
Additionally, daily active addresses have been on an upward trajectory, further bolstering AVAX’s appeal.
The Avalanche network’s Total Value Locked (TVL) has experienced an impressive 82% growth, soaring from $490 million to $894 million over the past three months since September 12.
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Simultaneously, AVAX token trading volume has skyrocketed by an astonishing 2,436% during the same period, as indicated by DefiLlama data.
Henrik Andersson, Chief Investment Officer at Apollo Crypto, pointed out that AVAX had been undervalued by broader market standards until recently.
He highlighted AVAX’s TVL surpassing that of Solana, despite having only a quarter of Solana’s market capitalization.
However, while TVL remains higher, AVAX’s market capitalization is now only half that of Solana.
Andersson believes that in 2024, some altcoins may outperform Bitcoin, mentioning Immutable (IMX) and Synthetix as tokens that have already demonstrated such potential since 2022.
In a December 11 crypto fund flows report, CoinShares’ Head of Research, James Butterfill, noted that despite significant price declines in Bitcoin and Ethereum, Solana and Avalanche attracted substantial inflows of $3 million and $2 million, respectively.
This observation reaffirmed their status as “firm favorites” within the altcoin sector.