HTX resumes Bitcoin and Ether services post $30 million hack

Wallets belonging to the defunct Japanese Bitcoin exchange Mt. Gox have transferred over 140,000 Bitcoin (BTC), valued at approximately $9 billion, to an unknown address.  Sell-off fearsThis significant movement began in the early hours of Tuesday morning in Asia, marking the first such transfer from Mt. Gox’s cold wallets in over five years. Julio Moreno, head of research at CryptoQuant, initially confirmed that 12,239 Bitcoin had been transferred from Mt. Gox over the course of an hour. A short time later, he provided an update on X, stating:"All coins have been transferred to a new address." Despite market disquiet, the prevailing view which subsequently emerged is that the transfer is believed to be part of a plan to distribute assets back to creditors before the October 31, 2024 deadline. Alex Thorn, head of research at Galaxy Digital, shared his perspective on X, suggesting that most of the transferred Bitcoin would likely be held by creditors rather than being sold on the open market. Despite these reassurances, the market reacted negatively for a time. Bitcoin's price dropped by 1.4% since the start of Asian trading hours, falling to a low of $67,680 from a Monday high of over $70,000.Photo by Kanchanara on UnsplashNo Bitcoin FiresaleTo quell fears of a massive Bitcoin sell-off, Mark Karpeles, the former CEO of Mt. Gox, addressed the situation on X. He stated: “As far as I know, everything is fine with MtGox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening." Rehabilitation trustee Nobuaki Kobayashi also issued a press release, clarifying that no sale of Bitcoin or Bitcoin Cash (BCH) had taken place. He assured that the group was "managing bitcoin and bitcoin cash in a secure manner." Wallet activity reveals that these movements were executed through thirteen transactions. A test transaction worth $3 was made on May 20, followed by another smaller transaction of $160 early Tuesday. The remaining transactions varied from $1.2 million to $2.2 billion worth of Bitcoin. Bitinfocharts data shows that all of Mt. Gox's Bitcoin has now been consolidated into a single wallet. A long road to repaymentIn September 2023, Mt. Gox’s trustee announced that the repayment deadline had been extended by 12 months to October 31, 2024. It looked like repayments were imminent in November. However, those communications referenced cash repayments rather than the distribution of Bitcoin and Bitcoin Cash. Some cash repayments had started in December 2023. Speculation in January that the bankruptcy estate would begin the distribution of Bitcoin led to market fears of the impact that would have on the Bitcoin unit price. The extension provided a longer timeframe for preparing the distribution of assets to creditors. Mt. Gox, launched in 2010, quickly rose to prominence, becoming the largest Bitcoin exchange by 2013, handling 70% of all Bitcoin trades worldwide. However, the exchange faced a dramatic downfall in early 2014.  It suspended trading and stopped all withdrawals after losing hundreds of thousands of Bitcoin in a hack. Subsequently, the site went offline, and the company filed for bankruptcy protection after losing over 800,000 Bitcoins. Creditors have been waiting for repayment ever since.

The Singapore Police Force (SPF) and the Cyber Security Agency of Singapore (CSA) have jointly issued an advisory to raise awareness about the escalating use of cryptocurrency drainers in cyberattacks. The advisory aims to inform citizens about the threat and provide recommendations to protect against such attacks, with a specific emphasis on utilizing hardware wallets for enhanced security. Cryptocurrency drainers represent a form of malware that specifically targets crypto wallets. These malicious tools are often employed in phishing attacks to illicitly extract funds from users' wallets without proper authorization.Photo by Junrui Wu on UnsplashDrainer-as-a-service threatOf particular concern are commercial crypto draining kits, which empower less experienced cyber-criminals with sophisticated malware at no upfront costs. Operating on a drainer-as-a-service (DaaS) model, attackers share a predetermined percentage of the stolen funds with the service provider. The SPF and CSA underscored that crypto-drainer-related attacks typically originate from phishing campaigns. These campaigns commonly involve infiltrating verified social media accounts or dispatching fraudulent emails to users from compromised databases of major service providers. Unsuspecting victims who click on phishing links are redirected to counterfeit trading websites that prompt them to connect their Web3 wallets. Subsequently, a malicious smart contract is injected into the victim's system, enabling hackers to withdraw funds without additional authorization. MS Drainer and Inferno DrainerWhile no such attacks have been reported in Singapore to date specifically, the advisory acknowledges the rising recognition of this threat among hackers. Notably, an off-the-shelf crypto drainer called MS Drainer contributed to hackers stealing $59 million worth of cryptocurrency in 2023. Last month, Singapore-based cyber security firm Group-IB produced a report concerning the Inferno Drainer operation. According to the company’s research, the malware operation led to the theft of $80 million in digital assets globally, until the developers behind it shut it down last November. In December, the Pink Drainer hacking group notched up another victim, to the tune of $4.4 million in LINK tokens. Last week blockchain security firm Scam Sniffer reported that $10 million in digital assets had been stolen in phishing-related incidents over the course of just five days. Hardware walletsTo counteract these threats, Singapore authorities recommend the use of hardware wallets as a security measure against wallet drainer attacks. Additionally, the advisory instructs crypto investors to conduct thorough research before engaging with cryptocurrency services or platforms. Singaporeans are encouraged to report any suspicious incidents related to crypto drainers or phishing attacks to both relevant authorities and crypto service providers. In the event of a security breach, victims are urged to revoke any suspicious token approvals and promptly transfer their remaining funds to a different, secure wallet address to prevent further losses. This proactive approach aims to empower individuals with the knowledge and tools needed to navigate the risks associated with crypto drainers and foster cybersecurity awareness within the cryptocurrency ecosystem. As the threat landscape evolves relative to digital assets, this advisory serves as a valuable resource to educate citizens about the risks posed by crypto drainers.  

Zodia Markets Achieves Crypto Broker-Dealer Approval in UAEZodia Markets, the London-based digital asset marketplace backed by Standard Chartered Ventures, has achieved the milestone of receiving In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter (OTC) market.Photo by Kamil Rogalinski on UnsplashADGM green lightThat’s according to a press release published by Zawya, a business intelligence media outlet that covers the Middle East and North Africa (MENA) region. The regulatory approval comes from the Abu Dhabi Global Market (ADGM), a renowned financial hub in the United Arab Emirates (UAE).Salem Mohammed Al Darei, CEO of the ADGM Authority, extended his congratulations to Zodia Markets on this achievement and welcomed them into the ADGM ecosystem. The In-Principle Approval marks the third step in a comprehensive five-stage application process outlined by ADGM. The subsequent stages involve securing final approval and undergoing an “operational launch” test to ensure seamless functionality, with a need to follow ADGM’s guidance meticulously.“The harmony of traditional and new-age finance in Abu Dhabi with an international leading digital asset firm such as Zodia Markets that is backed by the well-established Standard Chartered will contribute to further enhancing the attractiveness of ADGM as a preferred destination for global entities,” Al Darei stated.Expanding global footprintZodia Markets’ strategic decision to enter the UAE market aligns with the growing prominence of the UAE in the digital assets industry. This move compliments Zodia Custody’s decision to launch a crypto custodian service in the UAE emirate of Dubai back in May. While both businesses are independent of each other and fully segregated, they share the very same parent company in Standard Chartered.At the time, a memorandum of understanding (MoU) was signed by parent company Standard Chartered alongside the Dubai International Financial Center (DIFC).This latest move bolsters the geographical presence of Zodia Markets but also provides institutional investors in the Middle East and Africa with convenient access to the world of digital assets, thereby strengthening the company’s global footprint in the digital asset space.News of the firm’s intentions to enter the UAE market emerged last November. The company’s thinking at the time was that it could exploit an opportunity to expand in the MENA region due to more progressive regulation while the US and Europe were perceived to be developing at a much slower pace from a regulatory point of view, making them unattractive comparatively.ADGM has been at the forefront of shaping the regulatory landscape for companies involved in virtual assets. In April, it put forward a legal framework for decentralized tech. As part of its commitment to fostering innovation, ADGM recently granted permission for the operation of a virtual asset platform named M2 and issued a license to the cryptocurrency exchange Rain in July.Usman Ahmad, CEO of Zodia Markets, articulated the company’s mission, stating:“Our goal is to provide institutions seamless access to trade digital assets without compromising on the standards and controls that exist in traditional financial markets.”Zodia Markets is a joint venture between Standard Chartered and Hong Kong-based digital assets platform OSL, which also expressed its enthusiasm for the In-Principle Approval.