$65 Million Lost in High-Profile Crypto Thefts
The Lazarus Group, affiliated with North Korea, stole $41 million from crypto sports betting platform Stake.com. This is part of the group’s total thefts of over $200 million this year. Concerns over such attacks have led to legislation like the Crypto-Asset National Security Enhancement and Enforcement Act. In a separate incident, an Ethereum user lost $24 million in a phishing attack, making it one of the most significant individual crypto phishing events.
Former FTX Executive Pleads Guilty
Ryan Salame, a former FTX executive, pleaded guilty to charges of conspiracy related to unlawful political contributions and operating an unlicensed money transmitting business. Salame admitted to making $10 million in political contributions under the guise of loans and agreed to surrender $1.6 billion in assets.
Mashinsky’s Assets Frozen
Alex Mashinsky, former CEO of Celsius, had his assets and property frozen following allegations of defrauding customers and misrepresenting the profitability of Celsius. Various regulators, including the SEC, have accused Celsius and Mashinsky of fraudulent fundraising and misleading investors. Despite the charges, Mashinsky maintains his innocence.
Paying Mining Companies Not to Mine
Bitcoin mining companies Riot Platforms and Iris Energy received energy credits from Texas for reducing power consumption during peak demand periods. Riot Platforms was compensated with $31.7 million, while Iris Energy received $2.3 million in credits. Both companies saw substantial revenues in August.
Tornado Cash Founder Pleads Not Guilty
Tornado Cash co-founder Roman Storm pleaded not guilty to charges of conspiracy to commit money laundering. Crypto enthusiasts criticized the US Treasury’s decision to sanction Tornado Cash. Ethereum co-founder Vitalik Buterin and others introduced a privacy protocol named Privacy Pools as an alternative to Tornado Cash, aiming to balance privacy and regulatory compliance.
Hot Take
The crypto industry continues to face security challenges, with high-profile thefts and phishing attacks resulting in significant losses. Regulatory efforts, such as the Crypto-Asset National Security Enhancement and Enforcement Act, aim to combat these crimes. Additionally, the case involving former FTX executives highlights the importance of proper oversight and compliance in the industry. The Texas program incentivizing Bitcoin miners to reduce energy consumption during peak demand demonstrates an increasing focus on sustainability. The introduction of Privacy Pools as a potential alternative to Tornado Cash shows ongoing efforts to address privacy concerns while meeting regulatory requirements.
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