Bitcoin ETFs Face Hacker Threats and Caroline Ellison Seeks No Prison Time
FBI Report: Americans Lost $5.6 Billion to Cryptocurrency Fraud in 2023
The FBI has reported that Americans lost $5.6 billion to cryptocurrency fraud in 2023, a significant increase of 45% from 2022. The FBI’s Internet Crime Complaint Center revealed that crypto-related complaints accounted for 10% of all complaints received but represented almost 50% of the total losses. Of the 69,000 complaints, individuals over 60 were the most frequent victims, with losses nearing $1.6 billion. Investment schemes were the main culprits, comprising about 71% of the fraud, while call center fraud and government impersonation scams made up 10%.
Most of the complaints and losses came from the United States, with many resulting from confidence schemes. The FBI emphasized one key piece of advice to avoid scams: be wary of investment opportunities from people you have never met in person.
Crypto Becomes a Key Issue in US Elections
Cryptocurrencies are expected to play a significant role in the upcoming U.S. presidential election. A report by the crypto exchange Gemini, founded by the Winklevoss twins, indicates that 73% of U.S. crypto owners will consider a candidate’s stance on crypto regulation when voting. The survey, conducted among 6,000 adults from the U.S., U.K., France, Singapore, and Turkey, also found that 37% of respondents said a candidate’s position on crypto would significantly impact their vote.
Caroline Ellison Requests Time Served
Caroline Ellison, former CEO of Alameda Research, has requested a sentence of time served after pleading guilty to seven felony counts related to the collapse of cryptocurrency exchange FTX. Her lawyers argue that her cooperation with the U.S. government, her unblemished record, and numerous testimonials to her honesty and ethical behavior should warrant a lenient sentence. Ellison’s legal team emphasized that she poses no risk of recidivism and presents no threat to public safety. They argued that granting leniency would promote respect for the law and acknowledge her extensive cooperation with authorities.
Vitalik Buterin on Layer-2 Scalability
Ethereum co-founder Vitalik Buterin has reiterated his stance on layer-2 decentralization, stating that he will only acknowledge scaling solutions that meet “stage 1” of his decentralization scale. Buterin plans to publicly mention only those layer-2 networks that are “stage 1+” starting next year. He highlighted that many zero-knowledge rollup teams are on track to meet this standard by the end of the year, signaling the end of the era where rollups are merely glorified multisigs.
Bitcoin ETFs: A New Target for North Korean Hackers
North Korean hackers, including the notorious Lazarus Group, may soon target U.S.-based Bitcoin exchange-traded funds (ETFs). The Lazarus Group has been linked to several high-profile cryptocurrency hacks, including the $625 million Ronin bridge hack. Michael Pearl, vice president of GTM strategy at Cyvers, warned that hackers might focus on Bitcoin ETFs due to the substantial potential payouts. Pearl mentioned that the FBI has already issued warnings about North Korean hackers attempting to infiltrate and steal from ETFs.
Winners and Losers in the Crypto Market
As of the end of the week, Bitcoin (BTC) is priced at $60,436, Ether (ETH) at $2,444, and XRP at $0.57, with the total market cap standing at $2.11 trillion. The top three altcoin gainers of the week are Nervos Network (CKB) at 84.94%, Popcat (SOL) at 50.15%, and Bittensor (TAO) at 37.63%. Meanwhile, the top three altcoin losers are Helium (HNT) at -2.99%, TRON (TRX) at +0.84%, and Unus Sed Leo (LEO) at +1.13%.
Memorable Quotes
- Bill Winters, CEO of Standard Chartered, stated, “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance.”
- Ilias Salvatore, growth lead at Flooz, commented on the current craze for discovering new gems, saying, “Pump.fun and Solana have been the current craze to find new gems, but that’s also catering to a specific type of degen trader, which is entirely
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