Numerous users of the cryptocurrency analytics platform Nansen have fallen victim to phishing attempts by scammers promoting an enticing yet entirely fictitious opportunity known as the “Nansen Airdrop.”
This malicious campaign came to light on November 23 when vigilant members of the cryptocurrency community on X (formerly Twitter) flagged ongoing phishing activities targeting Nansen’s user base.
In these fraudulent schemes, the scammers masquerade as Nansen and distribute counterfeit invitations to an exclusive airdrop event.
Crypto investigator Officer’s Notes (Officercia) first alerted the community to the ongoing attack, suspecting that the scammers may have obtained user data from a prior third-party database breach and are now exploiting it to target Nansen users.
The breach in question occurred on September 22 when one of Nansen’s third-party vendors suffered a security breach, impacting nearly 7% of the system’s users.
Those affected by the breach had their email addresses exposed, some had password hashes compromised, and a few even had their blockchain addresses compromised.
READ MORE: Cryptocurrency Industry Calls for Greater Self-Regulation Amid Binance Investigation
Nansen had promptly responded by identifying and notifying the affected users, urging them to change their passwords.
Importantly, Nansen reassured users that their wallet funds remained unaffected by the breach.
One screenshot of a phishing email, shared with Cointelegraph, revealed that the sender’s address was “mail@networkforgood.com,” a completely unrelated email domain to the legitimate Nansen platform.
The fraudulent email promised users a guaranteed allocation of fake NANSEN tokens for the next 48 hours, accompanied by a link that potentially directed unsuspecting victims to a rigged website.
Officercia advises individuals to report suspected phishing links to databases such as chainabuse.com, cryptoscamdb.org, and phishtank.org, all of which contribute to the collective effort in reducing the success rates of such cyberattacks.
Despite these alarming developments, Nansen has not yet responded to Cointelegraph’s request for comment on the phishing campaign.
It’s worth noting that an increasing number of cryptocurrency investors are becoming susceptible to phishing attempts, especially in the wake of recent data leaks from platforms like TrueCoin and FTX bankruptcy claims.
However, Friend.tech has denied allegations of a data leak involving its database of over 100,000 users, asserting that the information in question was obtained through scraping its public API and did not result from a security breach.
Australia’s largest cryptocurrency exchanges are gearing up for a major rally, as the number of crypto buyers begins to climb.
According to the heads of these exchanges, this upward trend is expected to gain momentum in early 2024.
Adrian Przelozny, CEO of Independent Reserve, is actively preparing for the anticipated bull market.
He recognizes the need to fortify infrastructure and expand the team in anticipation of rapid growth.
Przelozny emphasizes the importance of being well-prepared to handle the surge in business when the bull market arrives, as it tends to unfold swiftly.
Caroline Bowler, the CEO of BTC Markets, notes that market conditions have become increasingly bullish throughout the year.
She acknowledges that market gains have not followed a linear path but highlights the industry-wide growth in asset prices and technological applications as reasons for confidence.
She also points to the influx of new users, increased trading volumes, and the deployment of “dry powder” as indicators that the market is in the early stages of a bull run.
Tommy Honan, the head of product strategy at Swyftx, reports a rising trend in buying activity on their exchange.
To address recent challenges faced by the Australian crypto scene, Swyftx is swiftly improving direct debit functionality.
READ MORE: U.S. Prosecutors Seek to Prevent Former Binance CEO CZ Zhao’s Departure
Honan attributes the uptick in activity to improved market fundamentals, drawing back investors who had stayed on the sidelines during the bear market.
Jonathon Miller, the managing director of Kraken Australia, exercises caution in determining the market’s phase. He dispels the notion that the crypto market is solely in a bull or bear phase, emphasizing the existence of a gray area in between.
Miller highlights factors like the upcoming Bitcoin halving and Ethereum’s Dencun upgrade as catalysts that are catching the attention of both institutional and retail investors.
Ben Rose, the general manager of Binance Australia, refrains from making a definitive call on the arrival of a bull market.
He observes an increase in new registrations and trading activity on Binance Australia recently.
To prepare users for a potential rally and prevent FOMO buying, Binance Australia is focused on educating its users.
Rose underscores the significance of responsible onboarding and ensuring users understand the long-term benefits of cryptocurrency beyond short-term price gains.
In conclusion, Australia’s cryptocurrency exchanges are bracing themselves for what they anticipate to be a significant market rally in 2024.
While optimism prevails, caution and preparedness are key themes among these industry leaders as they navigate the unpredictable crypto landscape.
U.S. government prosecutors are taking steps to prevent former Binance CEO Changpeng “CZ” Zhao from leaving the United States, citing concerns about his potential flight risk.
In a filing made on November 22 to a federal court in Seattle, prosecutors requested a review and reversal of a judge’s decision that would have allowed Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bond, provided that he comes back to the U.S. two weeks before his sentencing scheduled for February 2024.
The prosecutors argued in their proposed order that Zhao poses an “unacceptable risk of flight and nonappearance” if allowed to leave the United States before his sentencing. They expressed serious doubts about their ability to ensure his return if he decides not to come back voluntarily.
The government’s case against Zhao is based on his strong ties and privileged status in the UAE, coupled with the absence of an extradition treaty between the UAE and the U.S. Prosecutors pointed out that Zhao has a partner and three young children in the UAE, and once he is in the UAE, he might choose to remain there with his family rather than facing the prospect of up to 18 months in a U.S. prison.
READ MORE: CEO Resignation and Binance-DOJ Settlement Send Shockwaves Through Cryptocurrency Markets
Furthermore, prosecutors argued that the majority of Zhao’s wealth, which was used to secure his $175 million bond, is held outside the United States and beyond the reach of U.S. jurisdiction.
Changpeng Zhao recently admitted to failing to maintain an effective Anti-Money Laundering program at Binance as part of a plea agreement.
This led to his resignation as CEO of the exchange and a $50 million fine.
Despite this legal setback, industry experts and observers view Binance’s settlement with the Justice Department as a positive development for the cryptocurrency industry, as it further legitimizes the industry in the United States.
Crypto markets have already rebounded from the negative news surrounding one of the industry’s most influential players, with the total market capitalization returning to pre-Binance news levels, reaching $1.48 trillion during the Thursday morning Asian trading session.
OpenAI, the developer behind ChatGPT, made headlines recently when it abruptly ousted its CEO, Sam Altman, citing a loss of confidence from the board.
However, this decision took an unexpected turn when Altman returned to the company after an astounding 90% of OpenAI staff threatened to resign.
This episode triggered a flurry of excitement in the tech industry, with companies rushing to match OpenAI’s salaries in an attempt to poach top talent.
The OpenAI debacle underscored the urgent need for regulations in the field of artificial intelligence, especially concerning security and privacy.
Many companies are rapidly expanding their AI divisions, and a reshuffling of talent could propel one ahead of the rest, potentially outpacing existing laws and regulations.
While President Joe Biden has taken some steps in this direction through executive orders, these orders lack the stability and legislative input required for comprehensive and lasting regulations.
Biden’s executive order this year addressed the need for “safe, secure, and trustworthy artificial intelligence” and aimed to protect workers from potential job losses due to AI advancements.
It tasked various government bodies, such as the Office of Management and Budget (OMB), the Equal Employment Opportunity Commission (EEOC), and the Federal Trade Commission (FTC), with establishing governing structures and evaluating their authority in overseeing AI-related issues.
READ MORE: Mt. Gox Creditors Receive Encouraging Email on Repayments
However, relying solely on executive orders has its shortcomings. Such directives lack permanence, can be subject to interpretation by the courts, and may not adequately address the complex ethical implications of widespread AI implementation, such as algorithmic bias, surveillance, and privacy concerns.
These critical issues should be debated and addressed by Congress, where elected officials can represent the interests of the people rather than leaving them to be resolved by appointed agency bureaucrats.
A lack of congressional involvement also hinders the development of laws that provide users of AI with control over their personal data and ensure that companies conduct responsible risk assessments and maintain automated systems safely.
Relying solely on federal agencies to enact regulations can lead to confusion and a lack of trust among consumers, as seen in the cryptocurrency sector when the SEC filed lawsuits against crypto companies.
It is imperative for President Biden to engage with Congress on these AI-related issues rather than relying solely on executive branch actions.
Congress, in turn, must craft legislation that encompasses the concerns and aspirations of diverse stakeholders.
Without collaborative efforts between the executive and legislative branches, the United States risks falling behind in AI innovation and jeopardizing the security and privacy of its citizens and others worldwide.
Kraken co-founder Jesse Powell has publicly expressed his approval of the recent investigation into Binance, a major cryptocurrency exchange, in a post on the X social media platform (formerly known as Twitter).
Powell emphasized the importance of having long-term-oriented visionaries and shareholders in the crypto industry.
Over the past year, leaders of prominent cryptocurrency exchanges like FTX and Binance have faced scrutiny from U.S. government agencies over allegations that range from misusing investors’ funds to circumventing Anti-Money Laundering (AML) regulations.
Powell believes that these investigations offer crucial answers to questions like “How are they growing so rapidly?” and “How are they avoiding consequences?”
Powell views the legal proceedings against Binance and its former CEO, Changpeng “CZ” Zhao, as a positive development.
He believes that going after the most egregious offenders operating offshore requires significant effort.
He pointed out that U.S.-based crypto businesses like Kraken, Coinbase, and Ripple are more accessible targets for regulatory scrutiny, as they operate within the United States.
READ MORE: FTC Takes Bold Step to Streamline Investigations into AI Misuse
In light of CZ’s recent admission that Binance violated AML requirements, Powell emphasized the need for self-regulation to enhance the crypto industry’s reputation.
He stated that every illicit operation provides governments with an opportunity to cast a negative light on the entire crypto ecosystem.
Powell urged the crypto community to collaborate in restoring the industry’s image by endorsing reliable services that prioritize a long-term approach.
He also expressed support for the Know Your Customer (KYC) requirement, as long as it facilitates the legal onboarding of new users to the crypto space.
Despite Kraken’s commitment to a long-term perspective, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kraken on November 20th.
The SEC alleges that Kraken commingled customer funds and failed to register as a securities exchange, broker, dealer, and clearing agency, arguing that crypto assets fall under U.S. securities law.
A spokesperson for Kraken contested the SEC’s complaint and stated the company’s intention to defend itself in court.
The spokesperson expressed disappointment in the SEC’s approach, characterizing it as “regulation by enforcement,” which they believe harms American consumers, stifles innovation, and damages the global competitiveness of the United States.
Approximately $46 million in various cryptocurrencies have been siphoned from the decentralized KyberSwap exchange in a recent exploit within the decentralized finance (DeFi) space.
On November 23, the Kyber Network team issued a warning to its users through a Twitter post, revealing that KyberSwap Elastic had fallen victim to a security breach.
As a precautionary measure, they urged users to withdraw their funds and assured them that an investigation into the incident was underway.
Blockchain enthusiasts and investigators quickly identified the wallet addresses affected by the attack and those belonging to the exploiter, which were still active at the time of discovery.
According to data from Debank, the exploit resulted in the theft of approximately $46 million, including roughly $20 million in Wrapped Ether (wETH), $7 million in wrapped Lido-staked Ether (wstETH), and $4 million in Arbitrum (ARB).
These stolen funds were spread across multiple blockchain networks, including Arbitrum, Optimism, Ethereum, Polygon, and Base.
READ MORE: Mt. Gox Creditors Receive Encouraging Email on Repayments
In a separate post, blockchain investigator Spreek expressed confidence that the issue was not related to approval permissions but rather connected to the Total Value Locked (TVL) in the Kyber pools themselves.
The attacker left an on-chain message for protocol developers and DAO (Decentralized Autonomous Organization) members, indicating their willingness to engage in negotiations once they were fully rested.
As a result of the hack and user withdrawals, KyberSwap’s Total Value Locked (TVL) plummeted by 68% within a few hours, with nearly $78 million exiting the protocol.
Its current TVL stands at $27 million, a significant drop from its peak of $134 million in 2023.
Following the news of the exploit, the Kyber Network Crystal (KNC) token experienced a brief 7% decline in price but has since recovered to trade at $0.74.
It’s worth noting that the Kyber Network team had identified a vulnerability back in April and had advised users to withdraw their liquidity. Fortunately, no funds were lost in that incident.
Despite recent events that would typically be expected to have a severe negative impact on the cryptocurrency market, Bitcoin (BTC) has managed to maintain its price stability, trading near $37,000 on November 22, which is essentially unchanged from three days earlier.
This surprising performance comes in the wake of Binance’s plea deal with the U.S. government on November 21 for violating money laundering and terror financing laws.
Some speculate that entities may be manipulating Bitcoin’s price to avoid contagion, potentially through the issuance of unbacked stablecoins, especially those connected to exchanges facing regulatory scrutiny.
To gauge investor risk aversion, it’s essential to examine Bitcoin derivatives rather than focusing solely on its current price.
The U.S. government had filed indictments against Binance and its co-founder, Changpeng “CZ” Zhao, on November 14, but these documents were unsealed a week later.
CZ admitted to the offenses and stepped away from Binance management as part of the deal. The penalties, including fines imposed on CZ personally, totaled over $4 billion.
Surprisingly, this news only led to a modest $50 million decline in BTC leveraged long futures contracts, with Bitcoin briefly trading down to $35,600.
On November 20, the United States Securities and Exchange Commission (SEC) sued crypto exchange Kraken, alleging the commingling of customer funds and failure to register as a securities broker, dealer, and clearing agency.
Kraken defended itself, claiming that the SEC’s commingling accusations pertained to previously earned fees, not customer assets.
READ MORE: FTC Takes Bold Step to Streamline Investigations into AI Misuse
Another potentially impactful development was the announcement by the Mt. Gox trustee, Nobuaki Kobayashi, on November 21 regarding the redemption of $47 million in trust assets and plans to initiate cash repayments to creditors in 2023.
Although no information about the sale of Bitcoin assets was provided, investors speculated that this milestone was drawing closer.
Many experienced traders and analysts had predicted a crypto market crash if Binance were indicted by the Department of Justice (DOJ).
However, the opposite seemed to be happening. Binance’s move towards compliance could increase the chances of a spot ETF approval, as it weakens the SEC’s argument about excessive market share on unregulated exchanges.
Bitcoin’s resilience in the face of these regulatory actions is reflected in Bitcoin derivatives markets.
Monthly futures contracts for Bitcoin are currently holding an 8% premium, indicating demand for leverage long positions, though it’s lower than the 11.5% seen in mid-November.
The options 25% delta skew, which measures arbitrage and market makers’ pricing for upside or downside protection, has remained optimistic.
In summary, despite regulatory actions and potential sell pressure from Mt. Gox, the cryptocurrency market has remained buoyant, as evidenced by derivative indicators.
The liquidation of $70 million leveraged BTC longs has further reduced the pressure from negative price fluctuations, suggesting that the path to $40,000 for Bitcoin is becoming more certain, especially with upcoming ETF decisions in January and February.
Crypto lender Genesis Global Capital has taken legal action against cryptocurrency exchange Gemini, aiming to recover $689 million in preferential transfers.
The lawsuit, filed on November 21, alleges that within the 90-day period before Genesis declared bankruptcy in January, Gemini withdrew approximately $689,302,000, prioritizing its own interests over other creditors.
Genesis’s legal team has urged the court to employ remedies outlined in the United States Bankruptcy Code to rectify this perceived unfairness and ensure that Gemini is treated on par with other creditors in a similar position.
The ongoing dispute between these crypto industry heavyweights began after the collapse of the crypto exchange FTX in November 2022.
It escalated into a public feud, with both CEOs accusing each other of noncooperation and issuing threats of legal action.
In a countermove, Gemini filed an adversary proceeding against Genesis on October 27. This proceeding sought to use 62,086,586 shares of the Grayscale Bitcoin Trust as collateral.
READ MORE: Bitcoin Overtakes Ethereum in Daily Transaction Fees Amidst Ordinals Frenzy
These shares had been pledged by 232,000 Gemini users to secure loans provided by Genesis through the Gemini Earn program.
As of now, the collateral is valued at approximately $1.6 billion.
Genesis had initially filed for bankruptcy in January following the suspension of withdrawals in November 2022.
The fallout from Genesis’s bankruptcy had a detrimental impact on the Gemini Earn program, prompting the crypto exchange to initiate legal action against Genesis’s parent company, Digital Currency Group (DCG), and its CEO, Barry Silbert, for alleged fraud in July.
In another legal move, Genesis itself filed a lawsuit against DCG in September, seeking repayment of multiple loans totaling over $600 million.
This legal battle between Genesis, Gemini, and DCG underscores the complexities and disputes that can arise in the crypto industry, particularly in the realm of lending and asset collateralization.
The outcome of these lawsuits will likely have significant implications for the involved parties and the broader crypto sector as a whole.
In the past 24 hours, the cryptocurrency world has been thrust into a tumultuous whirlwind of events, primarily revolving around the renowned crypto exchange, Binance, and its CEO, Changpeng “CZ” Zhao.
These developments have sent shockwaves through the digital asset space, resulting in a rollercoaster ride that witnessed a staggering $175 million in liquidations for traders who had taken long positions.
On November 21, CZ made a startling announcement amidst his ongoing legal battle with the U.S. Department of Justice (DOJ).
He revealed his intention to plead guilty to charges related to violating Anti-Money Laundering laws and subsequently announced his resignation as the CEO of Binance.
In a parallel move, the DOJ disclosed a monumental $4.3 billion settlement with Binance, marking a significant chapter in the exchange’s history.
As part of its restructuring, Binance swiftly appointed a new CEO.
The repercussions of these events were felt far and wide across the cryptocurrency markets.
According to data from CoinGlass, a crypto derivatives platform, a staggering $175 million worth of long positions were liquidated within the span of 24 hours.
Conversely, short positions worth $51 million faced a similar fate.
The overall market experienced tumultuous movements, with over $226 million in crypto assets being liquidated during this period, affecting 92,742 traders.
READ MORE: Blockchain Association Stands Firm in Support of Tornado Cash Users in Legal Battle
Notably, the largest liquidation occurred on the BTC/USD pair of crypto exchange Bybit, where approximately $2.35 million was liquidated.
Aside from the extensive liquidations, there were significant shifts in the flow of crypto assets within the Binance exchange itself.
Data from DefiLlama, a data aggregator, indicated that Binance’s asset inflows plummeted by over $1 billion in the last 24 hours.
This suggests that some traders have temporarily halted their deposits into the exchange, possibly due to uncertainties arising from the recent developments.
Interestingly, on November 21, Binance’s native token, BNB, embarked on a bullish rally, defying the prevailing market sentiment for the day.
However, this rally was short-lived, as news of the DOJ settlement emerged. BNB reached an impressive five-month high of $271.9 before retracing to $237 at the time of writing.
In conclusion, the last 24 hours have been marked by a whirlwind of developments in the cryptocurrency space, with Binance and CZ at the center of attention.
The impact has been profound, with significant liquidations, market fluctuations, and a notable shift in asset flows within the Binance exchange itself.
The cryptocurrency market remains as dynamic and unpredictable as ever, responding swiftly to unfolding events.
The United States Federal Trade Commission (FTC) has taken a significant step to address the growing concerns surrounding the unlawful use of artificial intelligence (AI).
In a unanimous decision, the FTC approved a streamlined process for investigating cases related to AI, signaling a heightened focus on potential legal violations within the realm of AI applications.
The approved measure empowers the FTC staff to issue civil investigative demands (CIDs), a legal instrument akin to a subpoena, in AI-related investigations.
This streamlining aims to expedite the acquisition of crucial documents, information, and testimonies necessary for consumer protection and competition investigations.
It’s worth noting that the FTC retains its authority to judiciously decide when to issue CIDs.
This omnibus resolution will remain effective for the next ten years, reinforcing the agency’s commitment to scrutinizing AI-related cases.
This move by the FTC, in conjunction with other initiatives, underscores its dedication to addressing the challenges posed by AI technology.
Critics of AI have voiced concerns about its potential to facilitate fraudulent activities, particularly in areas like phishing emails and robocalls.
During a Senate confirmation hearing in September, FTC Commissioner Rebecca Slaughter, who was being considered for re-nomination, echoed the sentiment that the focus should be on tackling issues like the use of AI to enhance the persuasiveness of phishing emails and robocalls.
READ MORE: Bitcoin Overtakes Ethereum in Daily Transaction Fees Amidst Ordinals Frenzy
While AI has unlocked new avenues for human expression and creativity, it has also introduced novel challenges.
Notably, the emergence of deep fakes, digitally generated AI identities used for fraudulent purposes, has been on the rise.
According to Sumsub data, the proportion of fraud attributed to deep fakes more than doubled between 2022 and the first quarter of 2023, with a significant increase in the United States, from 0.2% to 2.6%.
Recognizing the potential risks associated with voice cloning technology, the FTC unveiled a competition on November 16 to identify the most effective methods for safeguarding consumers from fraud and other risks linked to voice cloning.
As text-to-speech AI technology has advanced, voice cloning has become increasingly sophisticated.
While it holds promise for beneficial applications like providing medical assistance to individuals who have lost their voices due to accidents or illnesses, it also poses security concerns that the FTC is determined to address.
In summary, the FTC’s approval of a streamlined process for investigating AI-related cases reflects its commitment to addressing the challenges and risks associated with the expanding use of artificial intelligence in various domains, while also emphasizing the importance of protecting consumers from potential harm.