Vanity Address Exploit Causes $1M Loss

Vanity Address Exploit Causes $1M Loss

The DeFi industry is still being haunted by hacks and vulnerabilities, as seen by the addition of a new vanity address exploit to the list of DeFi victims, who, as a group, have altogether lost more than $1.6 billion in the 2022 alone.

After Vanity address exploit, an alert was publicly released by a company that specializes in blockchain security called PeckShield. In the alert, it stated that a hacker was discovered after stealing 732 ether (ETH), which is equivalent to approximately $950,000, from an address that was generated a generator for Ethereum vanity wallet addresses called Profanity. After emptying the wallet, the hackers moved the cryptocurrency to a cryptocurrency mixer called Tornado Cash, which had only just been authorized.

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Vanity addresses are a kind of personalized cryptocurrency wallet address that is produced to contain words or certain characters specified by the holder of the wallet. Vanity addresses are also known as private keys. Recent breaches, on the other hand, have shown that the security of vanity email addresses is still in issue.

The decentralized exchange (DEX) aggregator 1inch Network issued a warning to crypto holders earlier in the month of September that their addresses were not secure if they were produced using vulgarity. The DEX made it clear to cryptocurrency holders who used vanity addresses that they needed to move their holdings as soon as possible. 1inch claims that the vanity address generator lacks safety since it uses a random 32-bit vector to seed 256-bit private keys. This indicates that the generator should not be utilized.

Also Read: Jesse Powell Resigns As CEO Of Kraken

ZachXBT, a blockchain investigator, has revealed that an exploitation of the vulnerability in Vulgarity has already let some hackers to get away with stealing digital assets worth $3.3 million. This announcement comes in response to the warnings issued by the DEX aggregator.

On September 20, a crypto market maker situated in the United Kingdom was the victim of an attack that resulted in losses of 160 million dollars. According to the findings of researcher Ajay Dhingra, the attack may have been carried out as a result of unauthorized access to the company’s hot wallet and subsequent manipulation of a flaw in the smart contract. The founder of the company and current Chief Executive Officer, Evgeny Gaevoy, issued a call to the attackers, stating that the company is willing to consider the vulnerability to be a “white hat hack.”

FTX Exchange Eyes For $1B Funding

FTX Exchange Eyes For $1B Funding

FTX Exchange, which is headquartered in Bahamas and is the biggest cryptocurrency trading platform in the world, has plans to raise one billion dollars in capital. It plans to accomplish this goal with the participation of private equity investors, in addition to hedge funds and institutional investors.

If FTX Exchange is successful in raising another billion in capital, its whole worth will rise to $32 billion. According to a number of recent news publications, Sam Bankman’s firm Fried’s is holding talks with a number of possible investors regarding the prospect of obtaining one billion dollars in a venture round.

There has not been an agreement reached about the fund just yet, and discussions over the fund are still under progress. Since the start of the crypto winter in May, FTX exchange has taken on the role of market consolidator, offering aid to a significant number of enterprises who are having trouble making ends meet.

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A deal was struck between FTX and BlockFi, a lending firm that was having financial difficulties, a few of months ago. In addition to that, they made a rescue proposal for Voyager Digital and Bithumb. In order to carry out its other business objectives, FTX plans to use the $1 billion in cash on hand, in addition to the $400 million that was raised earlier this year.

The cryptocurrency exchange was initially a clone of Coinbase; however, it subsequently found different means of compensating traders, which contributed to the development in popularity of the exchange.

Also Read: Ethereum Network Plans To Reduce Carbon Emission By Up To 99%

Jesse Powell Resigns As CEO Of Kraken

Jesse Powell Resigns As CEO Of Kraken

Jesse Powell, the outrageous crypto advocate, revealed that he is giving up his CEO position of Kraken.  Powell established Kraken in 2011 and was an early supporter of bitcoin (BTC). 

He has been at the heart of various disputes that are linked to the firm. Powell’s comments in June, in which he slammed a group of “woke activists” working for the firm and advised disgruntled workers to leave, sparked a social and political controversy that destabilized the cryptocurrency sector.

In the month of July, the reports revealed that the United States Treasury Department was conducting an investigation into the cryptocurrency exchange Kraken for allegedly violating international sanctions on the Iranian government by enabling Iranian users to utilize the site.

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In the month of July, the reports revealed that the United States Treasury Department was conducting an investigation into the cryptocurrency exchange Kraken for allegedly violating international sanctions on the Iranian government by enabling Iranian users to utilize the site.

Jesse Powell has disputed that these scandals were a driving force behind his move to give up as CEO of Kraken, saying Bloomberg that he told the board of Kraken’s over a year ago of his intention to leave the company.

According to what Powell said in an interview the day before, he does not believe himself “to be an exceptional manager.” His position will be taken up by COO David Ripley.

Also Read: Ethereum Network Plans To Reduce Carbon Emission By Up To 99%

Jesse Powell said that “I actually more so appreciate the job as an individual contributor,” which roughly translates to “getting into the weeds on the product things.”

Powell said he’s not able to monitor certain activities as CEO, including pushing Kraken toward an Initial Public Offering. He explained himself by saying, “I’m much more like a zero-to-one sort of man.”

In the beginning of this year, Powel was subjected to criticism for alleged offensive remarks; in response, he lashed out at employees by announcing in a tweet, “Back to dictatorship,” and by inviting employees who were unhappy with the culture of the company to “jet ski” into their future with a promise of four months’ pay. Powel received some negative attention for these actions. However, he said that he had no intention of “jet skiing” himself. He will continue to serve on Kraken’s board.

Powell has said that he wants to put more of his energy into advocacy efforts, noting that there are many “poor plans” coming from Government.

Also Read: Ethereum Coin Price Could Plunge After The Merge

“There’s some terminology and some law that’s come out that’s kind of indirect assaults against crypto,” he added. “There’s also some legislation that’s come up.” “I don’t know whether it’s done purposely, or if the architects of the law simply genuinely don’t comprehend what the consequences are of the phrasing,” said the reporter.

Powell admitted that cryptocurrencies are a problem for both the national economy and the national security, but he said that “it would be a tragedy if we implemented some rules that simply effectively pushed all the bitcoin firms to move abroad.”

Hyperlane, A Crypto Startup, Gets Boost Funding Of $18.5M

Hyperlane, A Crypto Startup, Gets Boost Funding Of $18.5M

Venture capital investment firm Variant has announced a new seed round of investment for Hyperlane, a platform that assists developers in connecting apps across multiple blockchains.

Variant, a cryptocurrency investment company, led this investment round. CoinFund, Galaxy Digital, Circle, Figment, Blockdaemon, Kraken Ventures, and NFX are among of the other companies that participated in this round of funding.

Their investment will be used toward recruiting more employees and increasing security measures such as bug bounties and further audits.

Also Read: Ethereum Network Plans To Reduce Carbon Emission By Up To 99%

Jon Kol, co-founder at Hyperlane, confirmed how the company will utilize the funds they newly acquired. He said the investment will be used toward recruiting more employees, the development of new product features, and increased security measures like bug bounties and further audits.

‘The present situation of cryptocurrency is fragmented, since there has been a proliferation of blockchains and apps. However, users on one blockchain are unable to access applications on another blockchain. It’s perplexing and complex, and as a consequence, it results in a user experience that many people find burdensome and disorderly,’ he continued. “It’s the outcome of a design that is inefficient and illogical.”

According to a research published by Chainalysis one month ago, security flaws in cross-chain bridges were to blame for the estimated $2 billion in bitcoin losses that occurred this year.

Also Read: Ethereum Coin Price Could Plunge

Kol said that additional security measures would be a primary use of the newly acquired funds, and that Hyperlane has already successfully passed a number of security assessments.

Hyperlane gives developers access to a messaging application programming interface (API) as well as a software development kit (SDK), allowing them to easily build applications that can be retrieved from any blockchain.

Hyperlane is continuously updating the platform with new features, such as the recently released Interchain Accounts feature and the forthcoming Sovereign Consensus feature, both of which broaden the ways in which developers can configure the cross-chain communication.

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Asa Oines and Nam Chu Hoai, who were among the first developers at decentralized financial platform Celo, and Kol, who had formerly co-led Galaxy’s venture investment division, are the co-founders of Hyperlane. The company’s headquarters are located in Greenwich, Connecticut.

Among the company’s advisors are NFX partner Morgan Beller, the co-creator of Facebook’s failed effort at a stablecoin called Diem, and Zaki Manian, the co-creator of the Cosmos blockchain.

Ethereum Network Plans To Reduce Carbon Emission By Up To 99%

The organisation that manages the Ethereum network has announced that the system will finish implementing a strategy within the upcoming month that would reduce its carbon emissions by over than 99%. Ethereum is the second biggest cryptocurrency.

Because of this initiative, which is known as “the merge,” Ethereum will be able to transition the underlying technology that it employs for authenticating cryptographic currency transactions to a new method that takes far less energy to administer.

The “miners” position in the ecosystem of Ethereum will be eliminated once the merging is finished, which will contribute to a significant decrease in the amount of power used. These users make use of enormous amounts of very effective, purpose-built equipment 24 hours a day, seven days a week in order to produce randomly, which in turn compromises the network’s overall security.

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As per Alex de Vries, an economist from the Netherlands who owns the crypto website Digiconomist, the amount of energy that is used by ethereum mining is now estimated to be close to 72 terawatt-hours on an annual basis. That is on par with the electricity usage of Colombia and has the same impact on the environment as Switzerland.

The transition will result in the platform shifting away from a process known as “proof of work,” which necessitates crypto miners to generate random numbers in order to validate records stored on the blockchain. Blockchain is the technology that supports digital currencies such as ethereum and the more well-known bitcoin.

In its place, Ethereum will use a method known as “proof of stake,” in which users will “stake” amounts of bitcoin, therefore committing themselves to behaving truthfully at the risk of losing the cryptocurrency. This will ensure that the network is safe.

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According to De Vries, the transition would result in a significant reduction in the use of power. They have the ability to reduce their power consumption by a significant amount. I will be working on developing a more precise method for calculating it, but a decrease of at least 99% (and possibly even 99.9%) should be possible. This corresponds to something similar to the power usage of a nation like Portugal disappearing overnight.

The proof-of-stake framework is presently being used on an experimental blockchain called “beacon,” where it has been tested to verify that the theoretical security it offers is satisfactory for the multibillion-dollar economic system that sits on top of the Ethereum network. In other words, the proof-of-stake model is currently being used to verify that the theoretical security it provides is sufficient for the economy that sits on top of the Ethereum network. Now the job that was being done by the main network will be taken over by the experimental blockchain.

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When asked to explain the integration, the Ethereum Foundation used the following analogy: “Imagine Ethereum is a starship that isn’t yet ready for an interplanetary mission.” “By using the beacon chain, the community was able to construct a new engine as well as a refortified hull. After a considerable amount of testing, it will soon be ready to do a hot swap in the middle of the flight, switching from the old engine to the new one. This will result in the new, more effective engine being integrated into the current ship, which will then be ready to log some serious lightyears and take on the cosmos.

There is still the possibility of difficulties in the future. The foundation warned users to be on the lookout for a rise in the number of fraudulent activities, as hackers may attempt to take advantage of the uncertainty around the transition in order to deceive users into handing over their passwords, their money, or both. The organisation warned users to “be on high alert for scammers aiming to take advantage of consumers during this changeover,” saying that they should “be on high alert for potential scams.” “If you want to ‘upgrade to ETH2,’ do not transmit any of your ETH to any other addresses. There is no such thing as an ETH2 token, and there is nothing further that has to be done in order to keep your cash secure.

Ethereum Coin Price Could Plunge After The Merge

The merger of Ethereum is one of the most important developments to occur in the blockchain technology since its inception. Proof-of-work (POW) will be replaced by proof-of-stake once this event takes place on the blockchain (POS). while everyone is now hoping for the wonderful effects that Merge will have, some crypto experts believe Ethereum coin price could fall down as a side-effect of the merge.

The influence of the change is already making its presence felt in the cryptocurrency market. In the last two days, there has been a significant drop in the price of Ethereum throughout the market. In addition, some who analyse the cryptocurrency market believe that following the merge there is a possibility of a further decline in the price of Ethereum.

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Even while everyone anticipates positive outcomes, there is still a chance that a difficult situation could take place. If anything like this occurs, it will have a detrimental impact on the price of cryptocurrencies.

As a result of the buzz around the merge, Ethereum coin price has already shown stronger performance than Bitcoin in recent weeks. On the other hand, there are specialists of crypto industry who are concerned that the excitement around the merger may result in contrast effects on the ethereum. In this situation, a strong anticipation of future events or economic reports drive a rise in the values of assets. After the event is over, the prices that were raised go back down.

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Lark Davis, a well-known crypto investor and influential figure, recently shared his opinion on the recent buzz. He said that the merger is an essentially positive event in a tweet that he published. Davis provided an overview of the capabilities that are anticipated to be included in the next Ethereum POS. On the other hand, he said that they would not have a substantial effect right away as they were implemented.

According to the findings of Davis’ research, a gain in energy conservation, emission levels, and all of the characteristics will not exhibit their effects for a significant amount of time. As a result, he believes that the Ethereum integration exhibits characteristics of the “sell the news effect.”

Quinten Francios, one more crypto investor, predicts that price of Ethereum would fall after the merger in contrast to the price of bitcoin. As a result, this indicates that the price of Bitcoin will increase after the merger, whilst the price of Ethereum would decrease. He went on to say that the price of Ethereum will rebound significantly once some time had passed.

Also Read: Know The Ethereum Merge Better Before It Takes Place

Ethereum merge won’t solve other fundamental problems. The reason the outcomes of the Ethereum merging would not take effect immediately has been outlined by specialists. The move will convert the consensus process of the blockchain to POS; nevertheless, it will not fix some of the other basic concerns. It won’t, for instance, do anything about the problem of low gas prices or increase the the network’s capacity.

There won’t be any increase in the rate of transactions as a result. Even if the update is carried out flawlessly, it won’t solve the issue of excessive transaction costs.

Coinbase Global Inc Ex-Employee’s Brother Pleads Guilty In An Insider Trading Scam

Coinbase Global Inc Ex-Employee's Brother Pleads Guilty In An Insider Trading Scam

In what is being termed the first insider trading case involving cryptocurrencies, the brother of an ex-Coinbase Global Inc product manager pled guilty on Monday to a charge of conspiracy to commit wire fraud. Coinbase Global Inc. brought this case into light.

Nikhil Wahi, 26, confessed during an online court trial in front of the United States He told District Judge Loretta Preska in Manhattan that he had performed transactions based on sensitive information from Coinbase Global Inc.

Ishan Wahi, an ex-product manager at Coinbase Global Inc, is accused by the prosecutors of disclosing proprietary information to his brother and their mutual acquaintance Sameer Ramani on new digital assets that Coinbase intended to make available for customers to trade.

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After then, it is believed that Nikhil Wahi and Ramani utilised Ethereum blockchain wallets to buy the assets, and they engaged in at least 14 separate trades prior to the disclosures made by Coinbase in June 2021 and April 2022.

According to the prosecutors, these disclosures almost always produced an increase in the value of the assets and resulted in profits totaling at least $1.5 million.

Nikhil Wahi said before the court that he was aware that it was unethical to get private information from Coinbase and then execute transactions based on that secret information.

He acknowledged that he was aware that entering a guilty plea would result in his being expelled from the United States and “losing all that I have fought for.”

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Nikhil Wahi had entered a guilty plea one month ago, but as part of a deal with the prosecution, he was able to withdraw his guilty plea. The date of his sentence has been set for December.

Ishan Wahi has plead not guilty, and his next court appearance is slated to take place on March 22. Ramani, who was also charged, has evaded capture up to this point.

Coinbase Global Inc, which has said that it has shared the results of an internal investigation into the trade with the appropriate authorities, is one of the major cryptocurrency exchanges in the world.

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ED Unfreezes WazirX’s Bank Account

ED Unfreezes WazirX's Bank Account

WazirX, a cryptocurrency exchange based in India, said on Monday that the country’s Enforcement Directorate (ED) had “unfrozen” the operation of the WazirX’s Bank Account, more than a month after the account was frozen by the agency.

WazirX’s bank account was frozen by the ED a month ago in connection with a probe into possible fraudulent activity on quick lending apps, which are applications that provide short-term loans. The inquiry is still continuing.

According to a blog post published by the firm on Monday, four of the sixteen fintech businesses now under investigation had utilised the WazirX platform. The exchange continued by saying that “WazirX has been collaborating with the investigators by giving them with all of the relevant facts, information, and papers of the suspected accused firms that utilised the WazirX platform.”

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On September 8, the Indian government’s Finance Minister Nirmala Sitharaman presided over a meeting on “illegal loan apps,” which was also attended by the Deputy Governor of India’s central bank. The meeting was about the apps, and it was brought to the attention of the whole country.

On August 5, the ED conducted search warrants at the homes of WazirX director Sameer Mhatre for the purpose of investigating allegations that he actively assisted “around sixteen suspect organisations in laundering the proceeds of crime using the crypto route.” The agency also froze $8.1 million in funds that were held by the exchange.

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A Twitter argument between WazirX’s co-founder Nischal Shetty and Binance’s CEO Changpeng Zhao regarding who really controls WazirX erupted as a result of the series of events that unfolded.

After carrying out an internal investigation in 2020-2021, the firm declared that it had previously discovered and banned the majority of the suspicious individuals. Additionally, the company stated that it had no affiliation with any of the purported companies that were being implicated.

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Know The Ethereum Merge Better Before It Takes Place

Know The Ethereum Merge Better Before It Takes Place

According to its creators, the new “proof-of-stake” mechanism will reduce the energy consumption of the Ethereum blockchain by 99.9%. Most blockchains, including the one used by bitcoin, consume enormous amounts of electricity, which has come under criticism from some investors and environmentalists.

The Ethereum Structure, a well-known non-profit company, says it promotes Ethereum, and the upgrade will open the door for other blockchain upgrades that will aid with less expensive transactions.

Two of the most common issues people now have with the Ethereum network are high costs and lengthy transaction delays.

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When Will The Ethereum Merge Take Place?

Soon. The Ethereum Merge is predicted to be completed between September 10 and September 20, while the exact date is uncertain. September 15 is the most likely date, according to the experts.

Meaningful cryptocurrency exchanges have said they would temporarily halt ether deposits and withdrawals during the merger, including Coinbase Global and Binance. They assert that users won’t need to do anything with their money or electronic wallets as part of the update.

The Merge has already been postponed. Most recently, on April 11, ether fell by almost 8% after an Ethereum lead developer announced that plans for an event originally scheduled for June had been postponed while tests on the software were ongoing.

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What Makes The Ethereum Merge Significant?

Supporters of Ethereum claim that the $1 trillion crypto industry would benefit significantly from the Ethereum Merge.

According to supporters, the Merge will make Ethereum more advantageous than its bitter competitor Bitcoin, the most popular cryptocurrency in the world, in several key areas.

As a result, Ethereum apps may be used more frequently. Financial experts predict that the price of ether, which has increased by more than 50% since June, will shift significantly, contrasted with bitcoin’s slight decline.

Also Read: Ethereum’s Merge Pushes ETH Price To New Height Against Bitcoin

PROOF-OF-STAKE In Short

There are many ways to confirm transactions on the blockchain, the program that powers the majority of cryptocurrencies. Ethereum uses a “proof-of-work” mechanism where cryptocurrency miners verify new transactions.

Utilizing powerful computers, miners upgrade the blockchain and solve challenging mathematical puzzles to produce new cryptocurrency tokens. This secures blockchain records but consumes a lot of energy.

In the “proof-of-stake” method, ether owners protect specific amounts of their currencies from verifying new transactions on the blockchain, creating new coins on top of their “bet” cryptocurrency.

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Maybe. While Ethereum developers assert that the “proof-of-stake” architecture offers defenses against cybercriminals, some worry that offenders may attack the blockchain under the new system.

A single party might alter the blockchain and seize tokens if they amassed most of the ether bet used to validate new transactions. Additionally, according to experts in the field of cryptocurrencies, there is a chance that technical issues would derail the Merge, which fraudsters may use to steal tokens.

Additionally, making it more straightforward for programmers to build programs on the Ethereum network may increase adoption.

Crypto And Fintech Open New Career Options For Youngsters

Crypto And Fintech Open New Career Options For Youngsters

It is possible that studying economics or even just banking and finance will not be beneficial if you are interested in working in the financial industry at this time. A new kind of qualifications is coming into existence in order to provide qualified individuals to the newest generation of crypto and fintech companies.

For instance, the Bachelor of Science in Finance degree offered by the University of Southampton in the United Kingdom has been renamed the Bachelor of Science in Finance and Financial Technology degree. This new degree covers crowdsourcing, peer-to-peer lending, crypto and fintech.

According to Larisa Yarovaya, who is in charge of the new program at Southampton, it has been in the works for a number of years and might have been completed much sooner if COVID had not been involved. “The course is crafted to offer students with more basic knowledge about challenges like blockchain and the synergies between finance and technology,” says Yarovaya. 

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“In this day and age, if our kids are just taught conventional finance, it may restrict their job opportunities. We wanted to create a curriculum that was as forward-thinking as it could be, so we included some cutting-edge technology.”

Despite the fact that cryptocurrency has been through another winter, supporters of the asset are as as enthusiastic as ever, and the blockchain technology that underpins crypto and fintech still being hailed as the next big thing in terms of payment systems. 

Following the conclusion of its most recent fintech conference, Deutsche Bank stated that despite the possibility of a recession, payments systems are still anticipated to deliver “solid growth” in comparison to other technology sectors. The bank also stated that the current conversation centers on topics such as real-time payments, payment velocity, software and embedded payments, and the electronic monetization of distributed ledger (blockchain) technology.

Also Read: Ethereum’s Merge Pushes ETH Price To New Height Against Bitcoin

There are other universities besides Southampton that have begun offering specialized degrees in financial technology. The New Jersey Institute of Technology in the United States has introduced a new bachelor’s degree program in financial technology. 

The New Jersey Institute of Technology in the United States has introduced a new bachelor’s degree program in financial technology.  The University of Sussex in the United Kingdom will begin offering a new degree in finance and technology beginning in the year 2020, while the University of Reading’s ICMA center will begin offering a new Bachelor of Science in Finance degree with an emphasis on fintech beginning in 2021.

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It’s still very early in the process. At Southampton, Yarovaya would not specify the number of persons who have registered for the course this year; nevertheless, he believes that the number will eventually reach “several dozens” in the near future. Students who acquire knowledge in the field of financial technology will have a greater chance of finding job, according to her: “They will have the possibility to work in any industry or to build their own firm.”

Students won’t learn how to code in Southampton’s new class since it doesn’t cover that material. Although students will be exposed to the fundamentals of computer programming in addition to MatLab and AI, according to Yarovaya, coding will not be the primary emphasis of the course, at least not for the time being. She explains that in order to choose whether or not to include programming modules, “we want to see how sophisticated we can make the course.”