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AI and deepfake attacks could affect crypto users

The CertiK expert believes that attacks using AI and deepfakes will go beyond video and audio, affecting crypto users. He noted that such attacks can be aimed at hacking wallets that use facial recognition to access assets.

According to Norton security specialist Luis Corrons, AI attacks on cryptocurrency owners will continue, as they bring significant benefits.

The analyst also pointed to the lack of strict regulation in the crypto industry, which opens up additional opportunities for cybercriminals to attack with less legal risks.

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Pharmaceutical Company Pays $75 Million to Dark Angels Ransomware

Pharmaceutical company Cencora has paid $75 million in bitcoin to the Dark Angels ransomware operators following a cyberattack in February. The payment, which consisted of three payments in March, was the result of negotiations that reduced the initial ransom amount to $150 million.

Cencora declined to comment on this information, noting that the costs of the cyber incident are listed in quarterly reports, where the amounts of $28.5 million and $31.3 million appear. However, the exact purpose of these funds is not specified.

Two months after the breach, the company notified individuals and government agencies about the theft of personal data, including names, addresses, and medical information of patients.

Despite the SEC statement about the minimal impact of the incident on operational activities, the financial impact on the company has yet to be assessed.

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Cryptocurrency exchanger with a turnover of 200 million rubles has been liquidated in Moscow

A group of shadow bankers involved in withdrawing funds abroad through cryptocurrencies has been liquidated in Moscow, said Irina Volk, a representative of the Russian Ministry of Internal Affairs. The criminals disguised themselves as travel agencies, whose offices were located in the business center on Presnenskaya Embankment and other areas of the capital.

The illegal turnover of the cryptocurrency service, as the police found out, exceeded 200 million rubles. One of the detainees admitted that the service was engaged in the exchange of crypto assets for clients.

The defendants in the case have been arrested and will soon be charged under several articles of the Criminal Code of the Russian Federation. The Ministry of Internal Affairs believes that criminal schemes involving the withdrawal of funds in cryptocurrencies are becoming increasingly popular among fraudsters. However, such attempts to evade responsibility will not go unpunished.

The investigation is ongoing, and those arrested face long prison terms.

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User Loses $32.4 Million in spWETH Tokens Due to Phishing Attack

An unknown user lost 12,083 spWETH tokens associated with the Spark DeFi protocol, worth about $32.4 million, by signing a malicious transaction.

Experts reported that the attackers used the Inferno Drainer phishing service for this attack. This tool was previously active, but in November 2023, its creators announced that it was shutting down. However, with the start of the bull market this year, Inferno Drainer began to function again.

The Inferno Drainer service, which is focused on the DeFi segment, charges a fee of 20% of the stolen funds. It is estimated that in 2023, it was used to steal assets worth about $70 million.

According to ScamSniffer, over 203,000 users have suffered from this fraudulent tool since its inception, with the total damage amounting to over $215.6 million.

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Telegram Changes Force Cybercriminals to Look for Safer Messengers

Changes to Telegram’s privacy policy are causing concern among cybercriminals. The messenger’s owners have expressed their willingness to share some of their users’ personal data with law enforcement, which has called into question Telegram’s reputation as a safe platform for anonymous communication.

Some groups have already begun looking for more secure messengers. For example, the Ghosts of Palestine group is planning to leave Telegram in search of an alternative. Others, like RipperSec, have created backup channels on Discord, while the Al Ahad group has moved to Signal. GlorySec is considering switching to services like Facebook and Threads.

However, some cybercriminals are choosing to stay on Telegram and adapt to the new environment. The UserSec group is sharing tips on how to stay anonymous, while members of the BreachForums-affiliated BF Repo V3 Chat are discussing creating their own messenger based on Telegram’s interface to reduce the risk of information leaks.

While alternative platforms like Jabber, Matrix, and Session offer features for private messaging, Telegram remains unique in its ability to create open communities. While we don’t see cybercriminals leaving Telegram en masse, active discussions may herald future changes.

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Tether Develops New Solution to Comply with MiCA in Europe

Tether is set to introduce a new technology solution for the European market that takes into account the provisions of the new Markets in Cryptoassets Act (MiCA). Part of the document has already entered into force, which has led to a ban on stablecoins whose issuers are not registered in at least one EU country.

In April, Tether CEO Paolo Ardoino expressed criticism of MiCA, especially regarding the requirement to store stablecoin reserves in uninsured cash deposits that can disappear in the event of a bank failure. He believes that issuers should be able to store 100% of their reserves in treasury bills.

Ardoino also said that Tether is actively participating in consultations on MiCA standards, but is still concerned about some of the requirements that could make it difficult for stablecoin issuers to operate. The company emphasizes that the use of stablecoins in Europe differs significantly from their use in emerging markets, where USDT is widely used as a safe haven asset in conditions of high inflation and an alternative banking system.

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Former California Lawyer Fined $14 Million for Running Crypto Scheme

A federal judge in Las Vegas has sentenced 86-year-old former California lawyer David Kagel to five years of probation and ordered him to pay $14 million for his role in a cryptocurrency fraud scheme. The judge ordered Kagel to serve his sentence in a hospice for the elderly in Las Vegas due to his medical condition and to wear a monitoring device.

Kagel and his alleged accomplices, David Saffron and Vincent Mazzotta, offered investors high returns of 20% to 100% within 30 days with no risk. The former lawyer used official company letterhead to instill trust and attract $15 million into the crypto fraud scheme.

Additionally, in January 2018, Kagel claimed to have 1,000 BTC in an escrow account to secure investments and that he had extensive experience in cryptocurrency investments. These claims were false and intended to lure more victims into his scam. His law license was previously suspended twice - in 1997 and 2012, and in 2023 it was completely revoked by the California Supreme Court for failure to pay disciplinary fines and misappropriation of client funds in the amount of $ 25,000.

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Chinese Scientists Break Encryption Algorithms Using Quantum Computer

Chinese scientists have carried out the “world’s first effective attack” on a widely used encryption algorithm using a quantum computer. The researchers claim that the breakthrough poses a “real and significant threat” to password protection methods in key sectors such as banking and the military.

A team led by Wang Chao of Shanghai University used a quantum computer from D-Wave Systems. They were able to break the Present, Gift-64, and Rectangle algorithms, which are based on the SPN structure that underlies the AES encryption standard used in military, financial, and cryptocurrency wallets. The paper discusses the use of quantum annealing as an AI algorithm analog for global optimization of problems.

However, the scientists note that factors such as the environment, hardware limitations, and the difficulty of developing a universal attack algorithm hinder full-fledged quantum hacking. In the experiment, they were unable to obtain specific passwords, but “achieved greater success than before.”

The researchers emphasized that further work could lead to more effective quantum attacks and the identification of new vulnerabilities in existing cryptographic systems.

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US Justice Department Seeks 5 Years in Prison for Ilya Lichtenstein for Bitfinex Hack and Bitcoin Theft

The US Justice Department is seeking a five-year prison sentence for Ilya Lichtenstein, who is accused of hacking the Bitfinex crypto exchange in 2016 and stealing 120,000 bitcoins. The department said it reduced the sentence because Lichtenstein actively cooperated with the investigation and testified in other investigations, including one against the operator of cryptocurrency mixer Bitcoin Fog earlier this year.

His wife and accomplice, Heather Morgan, will receive a shorter sentence because Lichtenstein was found to be primarily responsible for the Bitfinex hack. According to the case materials, he agreed to compensate for the damage by transferring crypto assets worth more than $6 billion to the Bitfinex crypto exchange.

Liechtenstein was arrested in February 2022 and pleaded guilty to conspiring to illegally obtain funds from Bitfinex in August 2023.

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Former owner of WEX crypto exchange detained in Warsaw on US warrant

Former owner of WEX crypto exchange Dmitry Vasiliev was detained in Warsaw. This was reported by Exved CEO Sergey Mendeleev in his Telegram channel.

"Dima was arrested by Interpol in Warsaw on a US warrant in connection with charges of assisting in evading anti-Russian sanctions. The extradition process has been launched," he wrote. According to Mendeleev, local lawyers are working with Vasiliev, and his projects are "in the safe hands of his closest partners."

In July 2018, WEX stopped withdrawing funds due to "technical work." In August of the same year, it became known that the exchange had gone bankrupt and that its work had been suspended. An initiative group of exchange clients calculated that the damage exceeded $400 million, of which Vasiliev is credited with withdrawing $200 million. In the spring of 2019, Kazakhstan law enforcement officers recognized Vasiliev in absentia as a suspect in fraud and put him on the interstate wanted list.

In July 2019, Vasiliev was arrested in Italy, where he spent several weeks in prison. In September 2021, he was detained again and arrested in Warsaw. However, in December of the same year, he was released, after which he returned to Russia. At that time, the lawyer said that the court had not yet made a final decision on the issue of Vasiliev's extradition to Kazakhstan.

Later, an unknown person withdrew 100 ETH from one of the WEX wallets, which were then transferred to the Binance exchange.

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Crypto companies' losses from hacks in October fell by 56% — Immunefi report

According to a report from Immunefi, crypto companies suffered losses from hacks in the amount of $55.1 million in October, which is 56.6% less than in September ($126.9 million).

There were seven incidents during the month. Most of the losses were associated with two projects: the hack of the Radiant Capital DeFi protocol for $50 million and the Tapioca DAO exploit for $4.4 million.

P719, Morpho Labs, Ramses Exchange, HYDT and Fire were also affected. Analysts noted that there were no cybercrimes recorded in the CeFi segment in October.

Hackers most often attacked the BNB Chain network, which accounted for 50% of all attacks last month. The remaining exploits occurred in the Ethereum and Arbitrum networks (25% each).

According to analysts, since the beginning of the year, the total market losses have exceeded $1.4 billion as a result of 179 incidents.

In a commentary for The Block, Immunefi representatives explained the decrease in monthly losses of crypto companies by improving internal security measures, including audits, smart contract improvements, bounty programs, and hiring experienced specialists.

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FakeCall Trojan Learns to Intercept Bank Calls

Researchers from Zimperium have discovered an improved version of the FakeCall Android Trojan, which can now intercept user calls to the bank and redirect them to the attackers' numbers. The main goal of such an attack is to steal confidential information and money from the victims' accounts.

FakeCall was first reported in April 2022. During 2023, the Trojan learned to disguise itself as more than 20 different financial institutions and use third-party applications to make calls, which complicates its detection.

The new version of FakeCall is capable of becoming the main call handler on an infected device, which allows it to intercept both audio and video streams. The Trojan has also acquired additional mechanisms to protect against detection.

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Is TON available? What is the minimum exchange amount?

Hello. Please read our terms and conditions.

Our commission:
From $1500 - 4% + exchange commissions
Up to $1500 - $60 + exchange commissions

Exchange commission: BTC - 60$ ERC20 - 60$ TRC - 2$ The rest 5$
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Crypto tagged 50%~ Stolen/Scam/Sanctions/Mixer/Dark market/High Risk Exchange, etc. is high risk, so 10% commission + exchange commission

Ton, we also accept.

 

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Telekom MMS and Bankhaus Metzler Launch Green Bitcoin Mining Project

Deutsche Telekom subsidiary Telekom MMS has launched a project with Bankhaus Metzler to mine Bitcoin using excess and renewable energy. Deutsche Telekom noted that increasing renewable generation requires stabilizing the power grid, as output is dependent on weather conditions and creates irregular peaks. Telekom MMS plans to test the mining infrastructure using electricity that is not used due to storage limitations in the grid.

The cryptocurrency mining equipment is located in Backnang, Germany, on the premises of Riva GmbH Engineering, a metalworking company. A team of Telekom MMS engineers is responsible for maintenance. In Germany, as in other countries such as the United States and Finland, mining is seen as an effective way to manage excess capacity, and the Telekom MMS project is intended to prove this approach.

Bankhaus Metzler sees the project as an opportunity to expand its services related to cryptocurrency and blockchain.

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FTX Files $1.8 Billion Lawsuit Against Binance and Founder Changpeng Zhao

Managers of bankrupt exchange FTX have filed a $1.8 billion lawsuit against Binance and its founder Changpeng Zhao, Bloomberg reports. The lawsuit states that in July 2021, Zhao and other Binance executives received funds from FTX as part of a share buyback deal with exchange co-founder Sam Bankman-Fried. As part of the deal, Binance sold 20% of its shares in FTX's international division and 18.4% in its U.S. branch. Bankman-Fried paid for the buyback with FTX token (FTT) and Binance coins (BNB and BUSD), which were then valued at $1.76 billion.

FTX's lawsuit alleges that the exchange and its fund Alameda Research were already insolvent in early 2021 and that the buyback deal was fraudulent. FTX also accused Zhao of posting misleading tweets before the exchange collapsed in order to harm a competing platform.

Despite bankruptcy proceedings that began in late 2022, the FTX token continues to trade on exchanges, including Binance. In August, Delaware District Bankruptcy Judge John Dorsey approved a plan to distribute payments to FTX's creditors.In August, Delaware District Bankruptcy Judge John Dorsey approved a plan to distribute payments to creditors of bankrupt cryptocurrency exchange FTX.

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User Loses Access to $25.8 Million After Sending Error

A user using the pseudonym qklpjeth reported that he lost access to 7,912 ezETH tokens (worth about $25.8 million at the time of writing) after sending them to the wrong address. According to qklpjeth, on June 19, he accidentally copied the wrong data and transferred the tokens to a smart contract that does not allow withdrawals.

The victim tried to solve the problem with the help of the Renzo platform developers, who could update the code and unlock the funds, but, as qklpjeth reported, the team refused to help due to “regulatory restrictions”. After this, on November 10, the user reached out to the community for support, promising 10% of the amount (~$2.5 million) as a reward to anyone who helps return the funds.

The situation has sparked discussion in the crypto community. One commenter noted that qklpjeth's problems are related to shortcomings of the ERC-20 standard that have existed since 2017. He explained that a similar transaction with ETH would have resulted in an error, but this mechanism does not work in the case of tokens. SPACE ID Platform Development Director Harrison Seletsky called the incident a "wake-up call", emphasizing the need to improve the user experience in the industry.

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Investors Drop Appeal in Musk’s Dogecoin Manipulation Case

Investors have formally dropped their appeal in the case in which Elon Musk was accused of manipulating the price of Dogecoin. The move marks the formal end of a long-running legal battle that has been closely watched by legal experts and the crypto community alike. The lawsuit centered on allegations that Musk’s public statements and actions, including his social media activity, artificially inflated the price of Dogecoin.

The withdrawal of the appeal marks the final point in a contentious legal battle that has long been debated internationally. The original lawsuit alleged that Musk’s tweets and public statements about Dogecoin were part of a deliberate strategy to manipulate the market for personal gain. However, with the withdrawal of the appeal, the case has concluded without further escalation or continuation.

The conclusion of the case is significant in the context of debates about the influence of public figures on the value of cryptocurrencies. Elon Musk, known for his active presence on social media, has been criticized for causing wild price swings in digital assets, including Bitcoin and Dogecoin. The final resolution of this dispute could set an important precedent for future cases, especially given the ongoing influence of social media on financial markets.

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