Blockchain analysis firm Chainalysis is unveiling the 2023 Global Crypto Adoption Index in a new report. According to Chainlysis, the United States ranks fourth globally with regard to crypto adoption, behind India, Nigeria and Vietnam. The United States and Canada are the only countries from North America in the top 20. Canada is ranked 19th […]
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Police body cam footage shows the Silk Road hacker opening up a laptop with thousands of Bitcoin (BTC) on it in front of federal investigators, not realizing he was incriminating himself. James Zhong was charged by the US government last year for stealing more than 50,000 BTC from the illicit online marketplace Silk Road in […]
The post Silk Road Hacker Accidentally Showed Feds $70,000,000 Worth of Bitcoin on His Laptop Before Being Arrested: Report appeared first on The Daily Hodl.
According to Chainalysis, Latin American crypto users show a significant preference for centralized exchanges, in contrast to the worldwide pattern.
According to a recent report from blockchain analytics firm Chainalysis, Latin America has a distinct inclination toward centralized exchanges when compared to the rest of the world, as opposed to decentralized exchanges.
Published on October 11, Chainalysis stated that Latin America has the seventh-largest crypto economy in the world, trailing closely behind the Middle East and North America (MENA), Eastern Asia, and Eastern Europe.
However, it notes that crypto users in Latin America strongly favor using centralized exchanges:
Latin America shows the highest preference for centralized exchanges of any region we study, and tilts slightly away from institutional activity compared to other regions.
Furthermore, in some countries within the region, crypto activity by platform type significantly exceeds the global average.
The worldwide average for preferences regarding crypto platforms stands at 48.1% for centralized exchanges, 44% for decentralized exchanges, and 5.9% for other decentralized finance (DeFi) activities.
However, in Venezuela, the preference for centralized exchanges is significantly high at 92.5%, while decentralized exchanges have a much lower 5.6% preference.
Furthermore, it pointed out that Venezuela has a unique reason for its surging adoption, primarily attributed to a "complex humanitarian emergency."
The report explains that amid the COVID-19 pandemic in 2020, crypto played a pivotal role in directly assisting healthcare professionals in the country.
Related: Crypto adoption is booming, but not in the US or Europe — Bitcoin Builders 2023
Therefore, crypto became a necessary form of value as traditional payments were difficult, given the government's refusal to accept international aid, influenced by political reasons.
On the other hand, Colombia shows a 74% preference for centralized exchanges, while decentralized exchanges account for just 21.1% of their preferences.
However, Argentina leads in terms of the sheer volume of cryptocurrency transactions in Latin America, having received an estimated $85.4 billion during the 12-month period ending on July 1.
On May 5, Cointelegraph reported that Argentina's central bank banned payment providers from offering crypto transactions, to reduce the country's payment-system exposure to digital assets.
The monetary authority stated that the purpose of this was to subject fintech companies to the same regulations as conventional financial institutions in Argentina.
Meanwhile, three Latin American countries secured positions in the top 20 ranks on Chainalysis' Global Crypto Adoption Index. Brazil stands at the 9th position, with Argentina following at 15th, and Mexico at 16th.
Yet, India took the top position, with Nigeria and Vietnam following in second and third place, respectively.
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Crypto activity in East Asia fell from its perch after China began its crusade against crypto in 2019. Recent moves by Hong Kong could help reverse that trend, said the blockchain analytics firm.
Recent crypto advancements in Hong Kong could provide a “potential tailwind” to lift crypto activity in the East Asian region, which has mainly suffered from a China-wide ban on trading activities since 2019.
Cryptocurrency value received in East Asia amounted to just 8.8% of the world between July 2022 and June 2023, according to an Oct. 2 report from Chainalysis, making it the fifth most active crypto market. However, Chainalysis said Hong Kong’s recent moves could help increase this number.
“A potential tailwind for East Asia comes from Hong Kong, where several crypto initiatives and industry-friendly regulations launched over the past year have fostered bubbling optimism."
Data from Chainalysis reveals that East Asia’s share of crypto transaction value went from around 30% in 2019 to less than 10% by the second quarter of 2022, after a number of crypto-related bans in China.
However, Chainalysis said there is “bubbling optimism” in Hong Kong, noting that despite its much smaller population, Hong Kong is already an “extremely active crypto market” by raw transaction volume.
Between July 2022 and June 2023, the market received an estimated $64 billion in crypto, compared to $86.4 billion in China, despite having a population of just 0.5% the size of the mainland.
In comments to Chainalysis, Merton Lam of CryptoHK, an over-the-counter digital asset trading center in Hong Kong, said that cryptocurrencies are becoming a staple in the investment portfolios of many banks, private equity firms and high-net-worth individuals that they work with within the region.
In addition, Chinese state-owned businesses have also launched cryptocurrency-focused investment funds of late.
That being said, Dave Chapman of digital asset platform OSL Digital Securities told Chainalysis that while digital assets “are not going away” in East Asia — it’s still too early to say whether Hong Kong’s crypto ambitions mean China has fully embraced the cryptocurrency space.
“The promotion of Hong Kong as a potential crypto hub is not necessarily indicative of the Chinese government’s stance on crypto [...] This could be viewed as an exploratory approach to understanding digital assets without loosening mainland policies.”
Related: Hong Kong retains top crypto-ready position for two consecutive years
Speaking to Cointelegraph, Matrixport’s Head of Research and Strategy Markus Thielen said Hong Kong will serve as a “testing ground” for broader cryptocurrency adoption in China.
However, Hong Kong is making a big play in one particular area which other states haven’t managed to capitalize on, says Thielen:
“Crucially, there is a genuine interest to attract the crypto asset management industry which has so far been a missing piece of the puzzle as most crypto firms tend to be labeled as service providers, instead of being the end-user of crypto.”
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The Chainalysis workforce will be reduced by around 150 as the bear market bites deeper.
Blockchain analytics firm Chainalysis has reduced its headcount by another 15% this week, citing the need to reduce expenses due to continued bear market blues.
On Oct. 3, Chainalysis confirmed to Cointelegraph that it had made the difficult decision to part ways with 15% of its employees, amounting to approximately 135 staff.
"While Chainalysis continues to be well positioned for long-term success as a consistently top-performing software company, we are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time,” said Chainalysis Vice President of Communications, Madeleine Kennedy.
We remain committed to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” she added.
A spokesperson for Chainalysis confirmed the firm had around 900 employees before the most recent cuts.
It’s the second round of cuts for the company this year, as the ongoing crypto bear market has reduced the demand for commercial products. In February, Chainalysis cut around 40-50 jobs as part of a reorganization in light of worsening market conditions.
Digital asset market capitalization has fallen by 64% from its peak level almost two years ago. This year, markets have remained mostly flat with volatility, liquidity, and trading volumes dwindling. Moreover, Bitcoin has failed to break resistance above $30,000 several times and has remained range-bound for the past six months.
A Forbes report citing an email from CEO Michael Gronager to staff suggests the cuts will come mainly from marketing and business development teams focused on the private sector.
The Chainalysis spokesperson has confirmed the information in the report as accurate.
Related: Petition hopes to stop US government agencies from using Chainalysis’ forensics
Very few leading crypto and blockchain companies have escaped from having to axe staff this year.
In September, Binance.US let a third of its staff go as regulatory pressure intensified. Last month also saw venture-backed blockchain firm R3 axe a fifth of its workforce.
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A market intelligence firm says that hackers from North Korea are using Russian crypto exchanges known to launder money to move stolen digital assets. In a new blog post, crypto analytics platform Chainalysis says on-chain data reveals that hacking groups linked with North Korea are using Russian crypto exchanges to launder funds stolen from the […]
The post North Korean Hackers Tapping Russian Crypto Exchanges To Funnel Illicit Digital Assets, According to Chainalysis appeared first on The Daily Hodl.
Crypto bad actors from the DPRK have stolen $340.4 million in 2023, down from $1.7 billion from the prior year, but that's no reason to feel at ease.
Cryptocurrency stolen by North Korea-linked hackers is down a whopping 80% from 2022 — but a blockchain forensics firm says it isn’t necessarily a sign of progress.
As of Sept. 14, 2023, North Korea-linked hackers have stolen a total of $340.4 million worth of cryptocurrency, down from a record $1.65 billion reported funds stolen in 2022.
“The fact that this year’s numbers are down is not necessarily an indicator of improved security or reduced criminal activity,” Chainalysis said in a Sept. 14 report. “We must remember that 2022 set a dismally high benchmark.”
“In reality, we are only one large hack away from crossing the billion-dollar threshold of stolen funds for 2023.”
Over the past 10 days, North Korea’s Lazarus Group has been linked to two separate hacks — Stake ($40 million) on Sept. 4 and CoinEx ($55 million) on Sept. 12, combining for a loss of over $95 million.
With the latest two hacks, North Korea-linked attacks have made up for about 30% of all crypto funds stolen in hacks this year, noted Chainalysis.
Meanwhile, Chainalysis has found that North Korean hackers have become increasingly reliant on certain Russian-based exchanges to launder illicit funds over the last few years.
The firm said North Korea has been using various Russian-based exchanges since 2021. One of the largest laundering events involved $21.9 million in funds transferred from Harmony’s $100 million bridge hack on June 24, 2022.
United States-sanctioned cryptocurrency mixers Tornado Cash and Blender have also been used by Lazarus Group in the Harmony Bridge hack and other high-profile hacks committed by the group.
We've observed instances of DPRK-linked hackers sending funds to Russian services since 2021. But this year's transfer of $21.9M stolen from Harmony to a high-risk Russian exchange is an escalation of that activity. You can see examples of some of those transactions below. pic.twitter.com/S9cDxlk9Hu
— Chainalysis (@chainalysis) September 14, 2023
Related: FBI flags 6 Bitcoin wallets linked to North Korea, urges vigilance in crypto firms
The United Nations is making an effort to curtail North Korea’s cybercrime tactics at the international level — as it is understood North Korea is using the stolen funds to support its nuclear missile program.
Meanwhile, the firm hopes increased smart contract audits will make life tougher for these hackers.
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Chainalysis’ upcoming Global Crypto Adoption Index indicates that the wider Asia region is driving grassroots adoption of cryptocurrencies.
India, Nigeria and Thailand are ranked as the three top countries in Chainalysis’ 2023 Global Crypto Adoption Index, with lower middle income nations leading the way in grassroots adoption of cryptocurrencies.
The blockchain analytics firm released an excerpt to its annual Index report which shows that central and south Asia and the wider Oceania regions dominate the top of its index, with six of the top ten countries located in this area of the world.
The index highlights that worldwide grassroots cryptocurrency is down as a whole in the wake of the FTX implosion of 2022. However, lower middle income countries identified under the World Bank’s classification of nations by wealth have shown the strongest recovery in grassroots crypto adoption over the past 12 months.
“In fact, LMI is the only category of countries whose total grassroots adoption remains above where it was in Q3 2020, just prior to the most recent bull market.”
Chainalysis goes on to highlight a number of promising aspects that could be derived from this data, highlighting that nations in the the LMI category typically have growing industries and populations and account for more than 40% of the world’s population.
“If LMI countries are the future, then the data indicates that crypto is going to be a big part of that future.”
The excerpt also suggests that institutional adoption driven by organizations in high-income countries is gaining pace despite a prolonged bear market. The report also predicts a potential “bottom up and top down” adoption of cryptocurrencies where these assets serve the needs of users from both high wealth and developing nations.
India remains the largest cryptocurrency market of the region and leads grassroots adoption according to Chainalysis’ index. It has also become the second-largest crypto market by raw estimated transaction volume globally ahead of other major economies.
Chainalysis also notes India’s unique tax deducted at source (TDS) scheme applied to cryptocurrency transactions that requires a 1% tax to be levied for all transactions that must be deducted from the user’s balance at the time of the trade in order for the trade to be completed.
Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in
A total of $4.8 million in funds have now been moved by the hacker to Bitcoin and now Avalanche.
The hackers behind cryptocurrency casino Stake’s $41 million hack have shifted another $328,000 million worth of Polygon (MATIC) and Binance Coin (BNB) tokens — its latest moves following the Sept. 4 exploit, according to blockchain security firm CertiK.
The most recent transfer involved 300 BNB tokens worth about $61,500 to an externally owned address “0x695…” which were then bridged to the Avalanche blockchain on Sept. 11 at 4:09 pm UTC.
Another 520,000 MATIC tokens worth over $266,000 were also moved to Avalanche seven hours earlier at 7:18 am UTC.
#CertiKSkynetAlert
— CertiK Alert (@CertiKAlert) September 11, 2023
We are seeing a further movement of funds from the Stake exploiter.
520k MATIC was swapped and bridged to Avalanche before being bridged to BTC as per other fund movements from the exploiter.
See more on Skynet https://t.co/Sdsfh29AoF
The 520,000 MATIC and 300 BNB — totaling $328,000 — add to the $4.5 million in stolen funds that were bridged to the Bitcoin blockchain (in the form of BTC) on Sept. 7, according to blockchain security firm Arkham.
The total $4.8 million transferred however only represents 1.2% of the total $41 million stolen from the hackers.
Over the past 24 hours, the Hacker has been gradually bridging funds to the BTC Blockchain using a series of new wallets on Polygon and Avalanche.
— Arkham (@ArkhamIntel) September 7, 2023
They have so far bridged $4.5M to BTC addresses, with the remaining $36M still held on ETH/BNB/Polygon. pic.twitter.com/fiMy62ABwL
It is understood the hacker gained access to the private key of Stake’s Binance Smart Chain and Ethereum hot wallets to perpetrate the hack on Sept. 4.
The United States Federal Bureau of Investigation believes North Korea’s Lazarus Group was behind the exploit.
With $41 million stripped from Stake, the industry’s malicious actors have now taken the cryptocurrency hacks and scams toll to well over $1 billion in 2023.
CertiK previously reported the figure to be $997 million at the end of August, though several attacks in the last two weeks will push the figure over the $1 billion mark.
Related: CertiK drops findings on alleged scammer who stole $1M in crypto
In September, a cryptocurrency whale lost $24 million in staked Ether (ETH) in a phishing attack on Sept. 6, and Vitalik Buterin’s X (formerly Twitter) account was then compromised on Sept. 9, where the hacker then lured several victims into a nonfungible token scam which totaled $691,000.
The three incidents would take CertiK’s August figure to at least $1.04 billion.
Crypto Hacks And Scams Reach Nearly a Billion Dollars In 2023!
— Interlock (@interlockweb3) September 11, 2023
⚔️ThreatSlayer is your security sidekick that keeps you safe! pic.twitter.com/pZmPCdZzP2
Other recent incidents include Pepe (PEPE) coin’s withdrawal incident which set back investors $13.2 million, Exactly Protocol’s $7.3 million exploit and an exposed security vulnerability on Balancer which did $2.1 million in damage.
Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story
Blockchain data platform Chainalysis and accounting giant Deloitte are announcing a new partnership to help governments with blockchain surveillance. The partnership, announced during the Chainalysis Trace DC event, targets government agencies facing hurdles in fighting crypto-related crimes. “Chainalysis will work with Deloitte’s blockchain and digital assets practice across cryptocurrency and digital asset risk, analytics, investigation, […]
The post Chainalysis Teams Up With Deloitte To Surveil the Blockchain and Help Governments Fight Crime appeared first on The Daily Hodl.
