Wirex Launch, Upbit Hacks, Bitmain Crisis in StealthEX x CryptoDaily Digest

October 13, 2023

Crypto World

Maciej Zerelik

Dive into the crypto sector with StealthEX and CryptoDaily’s weekly digest! We decode the intricate crypto sphere, delivering clear and concise updates on price fluctuations, emerging technologies, regulations, and pivotal collaborations every week. This is your uncomplicated pathway to understanding crypto! Welcome to your amiable weekly crypto news briefing!

Wirex Innovates with W-Pay, a Zero-Knowledge Crypto Debit Card

Wirex, a prominent digital payment service provider, has unveiled W-Pay, a groundbreaking non-custodial crypto debit card service that harnesses zero-knowledge proof (ZK-proof) technology. This decentralized solution, crafted using Polygon’s Chain Development Kit (CDK), promises enhanced scalability and security while ensuring users maintain exclusive control over their funds. 

W-Pay facilitates rapid and secure transactions through ZK technology, offers compatibility with the Ethereum Virtual Machine (EVM), and introduces account abstraction, simplifying transaction processes by mitigating inherent complexities. 

Amidst challenges with its card partner, UAB PayrNet, Wirex continues to embody innovation, seamlessly integrating decentralized applications into established payment and banking infrastructures and ensuring users always retain absolute control over their assets.

Sam Bankman-Fried’s Ambitions and Allegations Unveiled in Court

Sam Bankman-Fried, the former CEO of FTX, harbored ambitions of becoming the President of the United States, as revealed by Caroline Ellison, the former CEO of Alameda Research, during her testimony. 

Ellison, who has pleaded guilty to charges and is cooperating with authorities, unveiled that Bankman-Fried believed he had a 5% chance of becoming the President and aspired to be a significant player in politics and business. 

However, the revelations took a dark turn as Ellison testified against Bankman-Fried, accusing him of directing her to commit fraud, conspiracy to commit fraud, and money laundering, involving stealing from FTX customers and investors. 

Bankman-Fried, facing seven criminal charges, has pleaded not guilty to all. Ellison also disclosed that Bankman-Fried made substantial political donations, believing it bought him influence and recognition, and utilized systems that allowed Alameda Research to withdraw significant sums from FTX accounts.

Crypto Funding Experiences a Dip in Q3, Reveals Messari Report

Messari’s Q3 report has shed light on the current state of crypto funding, revealing a 36% decrease in both funding and deals compared to the previous quarter. The report elucidates that most fundraising has been concentrated on early-stage rounds, such as Pre-Seed, Seed, and Series A, witnessing an 11% increase since Q4 of 2020. 

In contrast, later-stage deals have declined from 8% in Q4 2020 to 1.4% in Q3 2023. Strategic investments have notably surged from a 0.2% share in Q4 of 2020 to 22% in Q3 of 2023 as the bear market has progressed. 

Sectors like DeFi, chain infrastructure, and gaming have attracted the most funding, with chain infrastructure securing the largest share of 18%, while DeFi led in deal numbers at 67. The gaming sector also secured a remarkable $250 million in investments in Q3 of 2023.

Cross-Chain Crime in Crypto Skyrockets to $7 Billion, Elliptic Reports

Blockchain analytics firm Elliptic has unveiled startling data in its report titled “State of Cross-chain Crime,” revealing that illicit crypto, laundered through cross-chain criminal activities, has surged to a staggering $7 billion. 

The report aims to enlighten virtual asset services, law enforcement, and government entities about the rising threat of cross-chain crime in the crypto sphere, providing case studies and insights into the latest typologies of this criminal activity. 

Cross-chain crime, also known as “chain-hopping” or “asset-hopping,” involves transferring cryptocurrency between different tokens or blockchains, often quickly and without a legitimate business purpose, to conceal the illicit origin of the funds. 

Elliptic’s findings indicate that this method is becoming a preferred money laundering technique for various cybercrimes, including scams and crypto thefts, especially as traditional methods face stricter enforcement. 

The report also highlights a substantial increase in cross-chain crime related to crypto thefts, scams, Ponzi schemes, and illicit laundering, with North Korea’s Lazarus Group being a major contributor, having laundered over $900 million through these methods.

Upbit Discloses a Whopping 159,000 Hacking Attempts in H1 2023

South Korea’s major cryptocurrency exchange, Upbit, has recently disclosed experiencing over 159,000 hacking attempts during the first half of 2023, marking a significant 117% increase compared to the same period in 2022. 

The data, provided by Upbit’s parent company, Dunamu, also reveals a staggering 1,800% surge in hacking attempts compared to the first half of 2020. 

Upbit has elevated the proportion of funds held in cold wallets to 70% to bolster its security measures. Cold wallets, which store private keys offline, are deemed more secure than hot wallets, which hold keys online and are more susceptible to hacks. 

Despite suffering a $50 million exploit in 2019, Upbit has successfully thwarted any security breaches since then, as confirmed by a Dunamu spokesperson. 

Paul Tudor Jones Advocates for Bitcoin and Gold Amidst Weakening US Economy

Legendary investor Paul Tudor Jones has expressed his inclination towards Bitcoin and gold as strategic portfolio assets amidst the deteriorating fiscal position of the US. In a recent interview with CNBC Squawk Box, Jones voiced his concerns regarding the US’s challenging geopolitical and economic scenarios, anticipating potential troubles for the stock market and foreseeing a likely recession in the first quarter of 2024. 

The billionaire investor predicts the bond market will compel the Federal Reserve into additional rate hikes, which could be a tipping point for the economy. Amidst this economic turbulence, Jones remains bullish on Bitcoin and gold, asserting that substantial investment will flow into these assets. 

He stated, “There’s probably $40 billion worth of buying that has to come into gold at some point between now and if that recession actually occurs. So, yes, I like Bitcoin and gold right here.”

Bitmain Faces Financial Strain, Halting Employee Salary Payments

Bitmain, a leading Bitcoin ASIC manufacturer, has reportedly suspended salary payments to its employees since September, according to a report from Leiphone, a Chinese technology information service platform. The company, once a dominant player in the global Bitcoin mining ASIC manufacturing sector, has also allegedly ceased all “bonuses and incentives” for its staff, further exacerbating the financial strain experienced by its employees. 

A message allegedly from Bitmain’s management highlighted that the company has yet to achieve a net positive cash flow, particularly in the orders of new ASICs. Consequently, salary disbursements for September have been paused, with a review scheduled post-October 7. 

Bitmain, founded in Beijing in 2013, once held an estimated 70% market share at its peak and has faced various challenges, including a year-long ownership dispute between its co-founders in 2021 and ambitious plans for an IPO, which appear to have been stalled due to the ongoing bearish market conditions.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.