Jason Lowery, a member of the United States Space Force, has called for a formal investigation into the use of proof-of-work (PoW) networks, such as Bitcoin (BTC), to enhance the country’s cybersecurity defenses.
In a letter addressed to the U.S. Defense Innovation Board on December 2nd, Lowery emphasized that Bitcoin, often perceived as a monetary system, possesses the capability to secure various forms of data and communication, thereby contributing significantly to national security.
The Defense Innovation Board, an independent advisory body, focuses on bringing Silicon Valley’s technological innovations and best practices to the U.S.
Military. Lowery’s letter urges the board to advise the Secretary of Defense to assess the “national strategic importance” of PoW systems like Bitcoin.
Lowery argues that PoW systems, like Bitcoin, can act as a deterrent against cyberattacks due to their resource-intensive nature, imposing steep costs on potential adversaries.
He draws parallels between PoW and physical security strategies employed in land, sea, air, and space domains, emphasizing the digital dimension in which PoW operates.
Highlighting the immense potential of Bitcoin in the realm of cybersecurity, Lowery contends that leveraging this technology is crucial for the United States to maintain its position as a global superpower, particularly in an era marked by digital interconnectedness and security vulnerabilities.
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He suggests that this could mark the beginning of a “cybersecurity revolution,” utilizing the global electric power grid as a “macrochip” to safeguard data and messages traversing the internet.
Lowery concludes by underscoring the alignment of Bitcoin’s cybersecurity applications with a strategic offset, expressing concern that the U.S. Department of Defense may have lost valuable time by not incorporating it into its arsenal.
Additionally, Coinbase CEO Brian Armstrong has weighed in on the role of Bitcoin and cryptocurrencies in preserving the United States’ dominance with the U.S. dollar.
Armstrong suggests that Bitcoin can complement the dollar, serving as a natural check and balance.
He points out that as world leaders grapple with issues like inflation and increased deficit spending, cryptocurrencies could emerge as an alternative currency, particularly if the U.S. dollar were to lose its dominance.
Armstrong believes that cryptocurrencies like Bitcoin offer a viable alternative, and people may shift from fiat currencies to cryptocurrencies as a hedge against inflation.
Furthermore, Armstrong highlights the importance of U.S. dollar-backed stablecoins, such as USD Coin (USDC), and the emergence of flat coins in bridging the gap between traditional finance and the cryptocurrency world, ultimately contributing to a more unified financial landscape.
In the past week, a crypto hacker specializing in “address poisoning attacks” has orchestrated thefts exceeding $2 million from Safe Wallet users alone, bringing the total number of victims to 21.
This alarming revelation was disclosed by the Web3 scam detection platform, Scam Sniffer, on December 3.
Over the course of a week, approximately ten Safe Wallets fell victim to address poisoning attacks, resulting in losses totaling $2.05 million since November 26.
Scam Sniffer has compiled data from Dune Analytics, revealing that this same attacker has pilfered a substantial sum of at least $5 million from approximately 21 victims over the past four months.
Astonishingly, one victim had a whopping $10 million in cryptocurrency stored within a Safe Wallet, though they were “fortunate” to have only lost $400,000 of it.
Address poisoning attacks involve the creation of a deceptively similar-looking address to one where a targeted victim frequently sends funds.
Typically, this involves replicating the initial and concluding characters of the legitimate address.
The hacker then sends a small amount of cryptocurrency from the newly-created wallet to the intended victim to “poison” their transaction history.
Consequently, an unsuspecting victim may inadvertently copy the fraudulent address from their transaction history and transfer funds to the hacker’s wallet instead of the intended destination.
Cointelegraph has reached out to Safe Wallet for comments on this concerning matter.
READ MORE: US District Judge Warns SEC of Sanctions Over Deceptive Claims in DEBT Box Crypto Case
This attacker executed a high-profile address poisoning attack on November 30, resulting in a loss of $1.45 million in USDC for the real-world asset lending protocol, Florence Finance.
It is worth noting that blockchain security firm PeckShield, which reported the incident, demonstrated how the attacker potentially deceived the protocol by having both the poison and genuine addresses commence with “0xB087” and conclude with “5870.”
In November, Scam Sniffer revealed that hackers had been exploiting Ethereum’s ‘Create2’ Solidity function to circumvent wallet security alerts.
This tactic led to Wallet Drainers illegally acquiring around $60 million from nearly 100,000 victims over a six-month period.
Address poisoning emerged as one of the techniques employed by these malicious actors to amass their ill-gotten gains.
The ‘Create2’ function pre-calculates contract addresses, allowing malevolent actors to generate new, indistinguishable wallet addresses.
These addresses are subsequently deployed after the victim approves a fraudulent signature or transfer request.
SlowMist’s security team has reported that a group has been using ‘Create2’ since August to systematically siphon nearly $3 million in assets from 11 victims, with one unfortunate victim losing as much as $1.6 million.
The crypto community remains on high alert as these address poisoning attacks continue to pose a significant threat.
Gold and Bitcoin have both hit remarkable milestones, making headlines in the financial world. Gold soared to an unprecedented all-time high of $2,100 during the Asian trading session on December 4th.
Simultaneously, Bitcoin experienced a remarkable surge, surpassing $41,000 for the first time in 19 months.
Bitcoin’s resurgence above the $40,000 mark, a level last seen in April 2022, was accompanied by a rapid 2% increase over a 24-hour period.
This surge marked a 19-month high for the cryptocurrency, bringing its year-to-date gains to an astonishing 140%.
Markus Thielen, the head of research at Matrixport, has provided optimistic insights into Bitcoin’s future.
Drawing on historical trends, Thielen predicts that Bitcoin could surpass $60,000 by April of the following year and potentially reach as high as $125,000 by the end of 2024.
These projections are anchored in the recurring pattern of price surges leading up to Bitcoin halving events, with an anticipated surge of over 200%.
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Adding to the excitement, there is growing anticipation surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
With 13 bidders vying for approval, including industry giants like BlackRock and Grayscale, all eyes are on the Securities and Exchange Commission (SEC) for a decision.
Bloomberg’s ETF analysts believe that there is a high likelihood of simultaneous approvals for all pending bids by January 10th.
Such approvals would mark a new era of institutional involvement in Bitcoin and potentially provide a significant boost to its price.
Bitcoin analyst Willy Woo expressed his optimism by comparing the situation to the launch of the first commodity ETF, SPDR Gold Trust, which led to an eight-year rally in gold prices from 2005 to 2012.
This historical precedent suggests that Bitcoin’s recent climb above $40,000 reflects a bullish sentiment driven by the imminent approval of a spot Bitcoin ETF in January and the potential for broader regulatory advancements.
Additionally, Bitcoin’s upcoming halving event is expected to provide further upward momentum for its price over the next five months.
Overall, both gold and Bitcoin are riding high, with investors closely watching their upward trajectories.
Binance CEO Richard Teng has emphasized that the cryptocurrency exchange has moved past its historical compliance issues and is now a “totally different” entity.
Teng, who assumed the CEO role on November 21 after Changpeng ‘CZ’ Zhao resigned due to charges brought by the U.S. Department of Justice, explained that as part of the settlement, CZ cannot be involved in the day-to-day operations of the company.
In an interview with Cointelegraph, Teng expressed his enthusiasm for leading the world’s largest cryptocurrency exchange and stated his commitment to working closely with global regulators to advance Binance’s growth agenda.
He believes that the regulatory concerns that have plagued Binance in recent months are starting to dissipate after the exchange agreed to a $4.3 billion settlement with U.S. authorities for various violations of U.S. regulations and sanctions programs.
Teng acknowledged that Binance’s early compliance practices had shortcomings, leading to the significant settlement.
However, he stressed that the security and safety of user funds have always been a top priority, and no allegations of misappropriation of user funds were made by U.S. authorities during their scrutiny.
The settlement requires Binance to undertake ongoing compliance efforts, including a five-year monitorship and steps to ensure the company’s complete withdrawal from the United States.
While Teng did not delve into details about Binance.US’s legal battle with the U.S. Securities and Exchange Commission (SEC), he asserted that the company had accounted for the costs associated with meeting settlement requirements and addressing the SEC case.
READ MORE: Bitcoin ETFs Set to Revolutionize Crypto Market Entry and Propel Prices in 2024
Teng could not comment on the specific payment method for the $4.3 billion penalty due to non-disclosure agreements.
He clarified that the movement of $3.9 billion worth of USDT tokens reported on November 21 was unrelated to the settlement with the U.S. Justice Department.
Regarding comparisons between Binance’s treatment and that of mainstream financial firms, Teng noted that financial sector fines are not uncommon and emphasized Binance’s commitment to being one of the most regulated exchanges globally, operating in 18 jurisdictions.
Binance is actively investing in compliance and has recruited talent with regulatory and financial institution backgrounds to navigate regulatory requirements.
While Binance remains a global operation, it has established regional headquarters in the United Arab Emirates (UAE) and France to bolster its presence in the MENA and European regions, respectively.
Teng highlighted the importance of regulatory clarity and institutional adoption in fostering the cryptocurrency ecosystem’s growth.
In conclusion, Teng acknowledged the challenges of succeeding CZ as CEO but stressed that Binance had evolved significantly over the years.
He plans to bring his own values and expertise to the company, which will now report to a board of directors as the governing authority.
In his personal life, Teng enjoys staying active through exercise and is an avid reader, with Elon Musk’s biography being his recent choice.
The price of Bitcoin (BTC) is poised for a potential correction following the approval of spot Bitcoin exchange-traded funds (ETFs), according to experts.
Bitcoin has witnessed significant gains over the past 11 months, driven by various factors such as banking uncertainty, the filing of a spot Bitcoin ETF by BlackRock, and optimism surrounding ETF approvals.
On December 3rd, Bitcoin reached a 19-month high by surpassing the $40,000 mark.
James Edwards, a cryptocurrency analyst at Finder, suggests that the approval of a spot Bitcoin ETF could trigger a “sell-the-news” event, which is a situation where an asset rises in anticipation of positive news but declines once the news is confirmed.
Edwards believes that widespread institutional buying may not happen immediately upon ETF approval and could take months or even years to materialize.
However, not everyone is convinced that a significant correction is imminent.
Ryan McMillin, the chief investment officer at Merkle Tree, acknowledges that Bitcoin has gone without a correction for over 100 days, indicating an increased risk of correction.
Still, he believes that the high anticipation surrounding spot Bitcoin ETFs will likely lead to a quick recovery in the event of a sell-off.
CK Zheng, co-founder of ZX Squared Capital, predicts that any price pullback in Bitcoin will be shallow due to strong fundamentals.
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Factors such as the upcoming Bitcoin halving, extensive money printing by global central banks, and ongoing geopolitical uncertainty contribute to the cryptocurrency’s resilience.
Despite the logical expectations of a correction, cryptocurrency remains a “wild card” in the financial markets. It often defies conventional wisdom, and market movements may not align with logical predictions.
Looking ahead to December, analysts do not anticipate a loss of momentum for Bitcoin. Institutional investors have reportedly been speculating on ETF approval, with increased inflows into existing Bitcoin futures ETFs in recent days.
This suggests that prices may remain relatively stable as investors await confirmation, either from technical charts or an official ETF approval.
Crypto lawyer Joe Carlasare sees “little chance” of a significant Bitcoin correction before ETF approval, as the market is only weeks away from the likely approval date.
Henrik Anderrson, Chief Investment Officer at Apollo Capital, believes that the approval of multiple spot Bitcoin ETFs could redirect mainstream attention towards the cryptocurrency market.
The industry is eagerly awaiting a potential approval window between January 5th and 10th, 2024, which could have a substantial impact on Bitcoin’s future performance.
After Binance, a prominent cryptocurrency exchange, reached a substantial settlement of $4.3 billion with United States regulators last week, the cryptocurrency landscape has experienced notable shifts.
A recent report from on-chain data analytics firm Kaiko Research highlights these changes.
The settlement between Binance and the United States Department of Justice (DoJ) came as a resolution to allegations related to anti-money laundering practices.
In the wake of this legal development, various crypto exchanges have witnessed alterations in their market share dynamics.
One of the key findings in Kaiko Research’s report is the surge in Coinbase’s market share.
The report indicates that Coinbase experienced an increase in its trading volume, particularly during the European trading day and outside the regular U.S. trading hours. This suggests that Coinbase’s market share grew significantly during these times.
Bybit, another cryptocurrency exchange, emerged as a standout winner in the report, showing substantial market share gains throughout the entire day.
Bybit’s market share increased by more than 20% in 16 out of 24 hours, highlighting its resilience and competitiveness in the cryptocurrency market.
Despite the changes in market share dynamics, Binance has managed to maintain its liquidity across various cryptocurrencies, including Bitcoin (BTC) and altcoins.
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This means that Binance remains a leader in terms of providing ample trading liquidity despite the legal challenges it has faced.
Interestingly, some industry leaders view Binance’s settlement with the DoJ as a positive development for the broader crypto community.
Galaxy Digital’s Mike Novogratz expressed optimism, stating that the legal resolution has reduced concerns associated with dealing with Binance, thereby reducing risk within the crypto industry.
In more recent news, Coinbase’s shares reached an 18-month high following Binance’s legal troubles.
On November 27th, Coinbase’s closing price reached $119.77, the highest level since May 2022 when it closed at $114.25, as reported by TradingView data.
This surge in Coinbase’s stock price suggests increased investor confidence in the exchange and its position in the cryptocurrency market.
In conclusion, Binance’s settlement with U.S. regulators has triggered changes in the cryptocurrency market’s landscape, with Coinbase and Bybit notably gaining market share.
Despite the legal challenges, Binance continues to maintain its liquidity leadership, and industry experts see the resolution as a positive step for the crypto community.
Additionally, Coinbase’s stock price reaching an 18-month high underscores growing investor interest in the exchange.
British lawmakers are urging a cautious approach when it comes to implementing a retail digital pound, emphasizing the importance of finding a balance between technological progress and potential drawbacks.
Members of the Treasury Select Committee have raised concerns about the possible launch of a retail digital pound, emphasizing the need for careful consideration before taking any steps.
While acknowledging the potential benefits in terms of innovation, the committee has called on the Bank of England (BoE) and Treasury to conduct a thorough assessment of the necessity of such a move, taking into account both costs and risks.
In the interim, the committee’s report suggests imposing lower initial limits on the value of retail digital pounds to mitigate the risk of potential bank runs during periods of market instability.
This precautionary measure aims to discourage large transfers of deposits into digital wallets, which could increase the risk of bank failures and raise borrowing costs.
The report also addresses privacy concerns, recommending that any legislation introducing a digital pound should strictly restrict the government or the BoE from using data excessively.
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The committee emphasizes the importance of protecting user privacy and ensuring that the digitization of currency does not lead to unwarranted surveillance.
In the event of legislation for the introduction of a digital pound, the report proposes explicit limitations on the government and the Bank of England in utilizing data obtained through the digital pound for purposes beyond those already authorized for law enforcement.
Committee chair Harriett Baldwin stressed the need for compelling evidence before considering the introduction of a retail digital pound.
She emphasized the requirement for clear proof that its implementation would benefit the UK economy without increasing risks or incurring unmanageable costs.
Baldwin asserted that the decision to integrate it into the financial system should be based on a comprehensive evaluation of these factors.
While endorsing the Bank of England’s ongoing design efforts, UK lawmakers have called for transparency regarding project costs.
Baldwin highlighted the importance of a concise cost-benefit analysis to ensure that introducing a retail digital pound aligns with broader goals of economic stability and financial inclusion.
Meanwhile, in a separate development, investment managers in the United Kingdom are receiving regulatory support to embrace blockchain technology for tokenizing funds, moving away from traditional record-keeping systems, thus embracing innovation in the financial sector.
United States District Judge Robert Shelby has issued a stern warning to lawyers from the Securities and Exchange Commission (SEC), hinting at potential sanctions in response to alleged deceptive statements made in a legal action against Digital Licensing Inc., also known as DEBT Box, a prominent cryptocurrency company.
The SEC had filed a lawsuit against DEBT Box in the federal court of Utah, alleging that the company had deceived investors by approximately $50 million through the sale of unregistered securities known as “node licenses.”
However, Judge Shelby’s ruling revealed significant inconsistencies in the SEC’s case.
Initially, the SEC, led by attorney Michael Welsh, had successfully convinced the court to freeze DEBT Box’s assets, claiming that the company was relocating to Dubai to evade U.S. regulatory oversight.
Subsequently, it was discovered that these assertions were inaccurate, as there were no bank account closures, and an alleged overseas transfer of $720,000 turned out to be domestic.
Judge Shelby expressed concerns about the conduct of the SEC lawyers, suggesting that misrepresenting facts and the failure of other team members to rectify these inaccuracies may have violated federal court Rule 11(b), which mandates evidence-backed factual claims.
In response, Shelby issued a “show cause order,” requiring the SEC to provide reasons why they should not face penalties for their actions.
The complexity of the case is emphasized by a TRM Labs report that supported the SEC’s primary claim that DEBT Box had deceived investors regarding mining tokens.
However, the defense counsel has yet to provide a statement on the issue, and the SEC has acknowledged the order, with plans to respond within the specified two-week timeframe set by Judge Shelby.
This development marks a crucial moment in the legal process, shedding light on the intricacies of cryptocurrency regulation and emphasizing the importance of legal accountability in high-stakes financial litigation.
Ripple lawyer John E. Deaton expressed little surprise at the SEC’s alleged dishonesty, suggesting that the agency’s lawyers may have personal biases in crypto cases.
Deaton called for a subpoena against the financial regulator.
His colleague, Ripple chief technology officer Stuart Alderoty, has also outlined troubling patterns observed in the SEC’s actions, further raising questions about the agency’s conduct in cryptocurrency-related matters.
Swan Bitcoin’s CEO, Cory Klippsten, has proposed that spot Bitcoin exchange-traded funds (ETFs) could significantly alter the landscape of cryptocurrency marketing.
In a recent interview with Bloomberg on December 1, Klippsten emphasized that Bitcoin ETFs provide an alternative means of entering the crypto market, one that can bypass the noisy and often manipulative marketing tactics that have dominated the space since 2017.
Klippsten noted that over the past six years, the crypto industry has been inundated with aggressive marketing schemes fueled by substantial venture capital investments, which aimed to promote and sell various crypto tokens.
These strategies often lured newcomers into the space with flashy promises and high-risk propositions.
In contrast, Klippsten explained that Bitcoin ETFs function as a form of IOU for Bitcoin itself, differing from futures-based alternatives.
They represent a paper version of the cryptocurrency, but the issuing firm is required to secure the investments by purchasing actual Bitcoin.
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This, he believes, makes ETFs a more secure and reliable entry point for newcomers looking to invest in Bitcoin.
Furthermore, Klippsten shares the optimism of many crypto analysts who anticipate a “clear runway” for Bitcoin ETF approval in January.
He highlighted a potential approval window around January 8th, 9th, or 10th, based on signals from the SEC and industry insiders.
Interestingly, this perspective coincides with a recent announcement by Standard Chartered, a major banking institution, which predicted that Bitcoin ETFs could drive the price of Bitcoin up by a remarkable 165% by the end of 2024.
Standard Chartered’s Geoff Kenrick, Head of EM FX Research, West, and Crypto Research, pointed out that the shift in forecasts suggests the possibility of significant price increases before April 2024, primarily due to the anticipated introduction of US spot ETFs ahead of schedule.
In summary, Cory Klippsten’s insights suggest that Bitcoin ETFs may bring a more stable and transparent investment avenue for individuals seeking exposure to the crypto market while avoiding the noisy marketing tactics that have dominated the industry for years.
The convergence of such views, along with the anticipation of ETF approval and the positive price outlook, indicates an evolving and maturing cryptocurrency landscape.
On December 1st, Paolo Ardoino assumed the role of CEO at Tether, transitioning from his previous position as Chief Technology Officer, a role he had held since 2017.
This leadership change had been meticulously planned and aligns with the company’s strategic focus on diversification and expansion.
Tether, a prominent player in the cryptocurrency space, is currently experiencing a prosperous period. Ardoino disclosed that the company is poised to generate profits of approximately $4.5 billion from its core business this year.
In an interview with Cointelegraph, Ardoino shed light on the upcoming transformations within Tether’s product portfolio and its overarching strategy.
Ardoino emphasized that Tether’s scope extends far beyond its flagship product, USDT. The company is set to evolve into an infrastructure provider in the crypto ecosystem.
While Ardoino expressed enthusiasm for the concept of Web3, he was critical of its current implementation, referring to it as a “bubble.”
He stressed the importance of establishing a real-world ecosystem rather than merely discussing real-world assets.
A notable development in Tether’s portfolio is its involvement with the communications app Keet, where Ardoino serves as Chief Strategy Officer.
Keet, while decentralized, differs from traditional blockchains and draws inspiration from BitTorrent.
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It facilitates real-time communications by enabling users to connect via their IP addresses, offering a cost-free service.
Although Keet generates no immediate revenue, Ardoino anticipates that it will play a significant role in driving adoption of Bitcoin and USDT worldwide.
Keet’s value proposition is rooted in both technology and philosophy, as it reduces the need for data centers, hardware, cables, and energy globally.
Moreover, it is impervious to censorship, unlike centralized alternatives like WhatsApp or Skype.
Ardoino emphasized Tether’s commitment to Bitcoin, emphasizing its resilience against inflation and political turmoil.
Tether is also delving into Bitcoin mining, aligning its principles with its business activities.
Ardoino argued that investing in renewable energy for mining is logical, as fossil fuel-based electricity generation infrastructure is both expensive and unpredictable in terms of costs.
Tether’s expansion plans in the renewable energy sector include constructing hydropower facilities in Uruguay and geothermal facilities in El Salvador.
While geothermal projects have a longer construction timeline, they offer a service life exceeding half a century, twice that of wind and solar generators.
These endeavors reflect Tether’s commitment to sustainability and its dedication to the crypto industry’s continued growth.