George Summers

Crypto Investigator Warns of Hijacked Compound Finance Website and Phishing Threat

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Crypto investigator ZachXBT has alerted users to avoid the Compound Finance website due to a suspected hijacking.

On July 11, ZachXBT shared on Telegram that the website is redirecting to a newly registered phishing site, presenting a significant security risk.

A member of the Compound Finance team confirmed the breach, advising users to steer clear of the site to prevent potential losses of personal data and funds.

Michael Lewellen, security adviser at the Compound Finance DAO, confirmed that the URL has been compromised and is now hosting a phishing site.

He cautioned users against interacting with the site but assured that the protocol itself and the smart contract funds are secure.

Cointelegraph reached out to the Compound Labs team for comments but has not yet received a response.

This is not the first security incident for Compound Finance. In 2023, the decentralized finance (DeFi) protocol’s official X account was hacked.

READ MORE: European Central Bank Explores Blockchain for Digital Currency with Successful Liquidity Matching Experiment

Similar to the recent incident, hackers used the company’s social media to promote a phishing site.

At the time, the account advertised free crypto tokens, urging users to click a link mimicking the protocol’s official site. The scam was quickly identified and flagged.

Cybersecurity blogger Officer’s Notes and blockchain security platform Scam Sniffer confirmed that the account had posted phishing links.

On December 30, 2023, the Compound Labs team reported that their account had been compromised for four hours before they managed to recover it and remove the spam messages.

On April 4, CertiK CEO co-founder Ronghui Gu urged the community to prepare proactively for attacks as the market grows.

The company observed that phishing attacks in the crypto space had reached alarming levels.

On July 3, CertiK reported that losses in crypto security incidents totaled $1.19 billion in the first half of 2024, with nearly $498 million attributed to phishing attacks.

Gu emphasized the need for multifactor authentication and improved security practices in response to these escalating threats.


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MicroStrategy Announces 10-for-1 Stock Split Amidst Major Bitcoin Acquisition Plans

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MicroStrategy, a Nasdaq-listed business intelligence firm, has announced a 10-for-1 stock split of its Class A and B common stock.

This decision, revealed on July 11, aims to increase stock accessibility for both investors and employees.

The split will be executed as a stock dividend, providing stockholders with nine additional shares for each share they currently own.

The distribution of these additional shares is scheduled for after trading closes on August 7, 2024. Trading on the split-adjusted stock will begin on August 8, 2024. Despite this change, the voting rights of stockholders will remain unchanged.

MicroStrategy also emphasized its identity as a Bitcoin development company.

The firm is committed to enhancing the Bitcoin network through its financial market activities.

It has made Bitcoin its primary treasury reserve asset, underscoring its strategic focus on integrating Bitcoin into its operations. The company stated:

“As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.”

READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility

In addition to its Bitcoin initiatives, MicroStrategy is also involved in developing artificial intelligence software analytics solutions.

This announcement follows the company’s plan to purchase more Bitcoin.

On June 13, MicroStrategy disclosed its intention to conduct a $500 million stock sale to fund additional Bitcoin purchases.

Subsequently, the company announced a plan to offer convertible senior notes due in 2032.

Following these announcements, on June 14, MicroStrategy increased the stock sale volume to $700 million and confirmed that the notes would be sold to qualified investors.

Nearly $800 million was eventually raised, with $786 million allocated to purchase 11,931 BTC.

With this acquisition, MicroStrategy’s Bitcoin holdings total 226,331 BTC, valued at approximately $13.2 billion.


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Simple DVT Module Powered Validators Go Live

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The SSV-powered distributed validators (DVs) have been launched as part of the new Simple DVT Software Module, which is ready to accept deposits. This technology is a key part of Lido’s strategy, a liquid staking solution for Ethereum, to diversify its node operators and enhance the protocol’s resilience, distribution, and security.

The Simple DVT module is specifically designed to foster a more scalable and permissionless ecosystem for future DVT-based applications. Eridian, the Simple DVT administrator at SSV Network DAO, emphasized the significance of this development, stating, “The Lido middleware utilizing DVT protocols including SSV is an important step towards vastly increasing the number of node operators and enabling solo home stakers to participate as node operators. SSV is optimized to serve as a low/no coordination DVT solution and will facilitate the development of trustless modules in the future.”

The module is integrated into Lido’s latest staking software, with its capacity initially limited to 0.5% of all ETH tokens staked through the middleware, roughly valued at $30.1 billion. This cap was raised to 4% after a Lido DAO vote. The DV clusters initially tested on the Lido testnet are now operational on the mainnet, as confirmed by the LNOSG committee.

The implementation of DVT within Lido’s suite is set to expand the number of node operators significantly, enhance client diversity, improve fault tolerance, and potentially lower bond requirements. Node operators can also look forward to reduced hardware and capital expenses, with options to connect to SSV.Network’s decentralized infrastructure through the upcoming Community Staking Module.

Will Shannon, a contributor to the Lido middleware, highlighted the impact of DVT, saying, “Incorporating DVT is the fastest way to expand the number of node operators using the Lido protocol to run validators. Simple DVT is the first step, with an opportunity to connect over 300 net-new node operators to the middleware in the first six months following the launch of the module. The SSV team has developed a highly performant DVT protocol that over time has the potential to further the decentralization and resilience of node operators across infrastructure, clients, and geographies.”

DVT plays a crucial role in decentralizing ETH staking, reducing network vulnerabilities, and minimizing slashing risks by distributing validator operations among various parties, including professional and at-home node operators. This system counters the centralization risks prevalent in complex systems and is a part of the broader strategy to decentralize the ETH network further. SSV.Network, as an open-source protocol, enables the creation of various DVT-powered applications and has already secured over 1,000,000 ETH with its 700+ node operators.

Bitcoin Poised for 300% Gains by 2026 Despite Current Downturn, Analyst Predicts

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Bitcoin has three months until the bull market resumes, but it could still see 300% gains by 2026, according to a fresh analysis by the pseudonymous engineer Apsk32.

On July 9, Apsk32 posted on X, revisiting his power law metric to project Bitcoin’s future performance. The power law provides a lower BTC price support band that has held since BTC/USD traded at just $1.

Additional bands, or “time contours,” offer further price information, ultimately suggesting a $1 million price target for 2036.

“Time contours tell us how long it will be before the support forces current prices upward.

For 12 years, every bear market has returned to this support line,” a previous X post from June explains.

“The support passes one million dollars in 2036 and bitcoin isn’t stopping there.”

By mapping past price action onto the current four-year cycle, Apsk32’s analysis explains current market behavior, including the ongoing 25% drop from March’s $73,800 all-time highs.

“If bitcoin’s cycle pattern continues, price should remain inside or near this blue cloud,” the latest post summarized.

“The ETFs pushed us out of the cloud and now we’re reverting back.

READ MORE: EOS Network Announces Launch of 250M EOS Staking Rewards Program

“We’re 3+ months away from upwards acceleration and we could see prices go up 4x by the end of 2025.”

An accompanying chart shows the “Power Law Fractal Cloud” — a guideline range for BTC/USD moving forward.

“Does the price have to stay within the cloud? Absolutely not,” Apsk32 acknowledged.

“This time could be different, in fact it already is.”

As Cointelegraph reports, Bitcoin traders are bracing for further BTC price declines amid a climate of fear across the crypto market.

Sub-$50,000 levels have come back into focus, aligning the current drawdown with previous ones.

Optimism, however, is fueled by reduced selling by Bitcoin miners over the past month and a return to net inflows for U.S.-based spot Bitcoin exchange-traded funds (ETFs).

On July 8, ETFs saw inflows of nearly $300 million, marking their best single-day tally in over a month, according to data from sources including UK-based investment firm Farside Investors.

“Looks like the boomers & institutions are buying the dip here, while Germany offloads a bunch of coins,” popular trader Jelle wrote, contrasting ETF buying with BTC sales by the German government.


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German Government Moves $172 Million in Bitcoin to Exchanges and Wallets

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A cryptocurrency wallet associated with the German government transferred over 3,000 Bitcoin, valued at more than $172 million, to various crypto exchanges and a separate wallet.

On July 4, blockchain investigator PeckShieldAlert reported a substantial outbound transfer of 1,300 Bitcoin from a wallet labeled as belonging to the “German Government (BKA).”

These Bitcoin, worth $75 million, were distributed among three major crypto exchanges: Coinbase, Kraken, and Bitstamp.

Further investigation by Cointelegraph revealed that the German government wallet also transferred an additional 1,700 BTC to a different wallet address simultaneously.

The PeckShield team later confirmed this to Cointelegraph, stating:

“Total 3K out (from German gov’t labeled wallet), including 1.3K -> CEXs and 1.7K -> (to a wallet address) 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu.”

According to data from onchain analytics platform Arkham Intelligence, while the initial 1,300 BTC were sent to centralized exchanges, the remaining 1,700 BTC were moved to a separate cryptocurrency wallet.

Over the last two weeks, the German government has transferred more than 3,000 BTC to various exchanges.

These significant transfers, alongside ongoing movements from the United States government and the approaching Mt. Gox repayments, pose a potential increase in selling pressure on Bitcoin.

Since February 2024, the wallet labeled as the German government’s has held 50,000 BTC, gradually transferring a significant portion of its holdings over the past few months.

READ MORE; RedStone Oracles Secures $15 Million in Series A Funding to Expand Gas-Optimized Blockchain Oracle Solutions

Governments, including Germany, have confiscated Bitcoin and other digital assets linked to criminal activities and periodically auction off these seized assets.

In a notable precedent, the United States government has sold a large portion of Bitcoin seized from the notorious dark web marketplace Silk Road.

In 2014, Tim Draper, an American entrepreneur and Bitcoin advocate, purchased 29,656 BTC from the Silk Road seizure in an auction conducted by U.S. marshals.

These ongoing transactions highlight the continued involvement of government entities in the cryptocurrency market and their efforts to manage and liquidate seized digital assets.


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Bitget Seeks Regulatory Approval in India to Enhance Compliance and Market Operations

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Bitget, a major cryptocurrency exchange, is working with Indian regulators to secure the necessary licensing to operate in compliance with local laws.

The company announced on July 3 that it has been in active discussions with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.

Simran Alphonso, Bitget’s head of global communications, emphasized the importance of this registration for tax compliance and operational transparency.

“It also provides a safe ground to host meetups, interact with the community and run educational drives. It makes a crypto exchange more reliable and credible,” Alphonso noted.

Alphonso further explained that FIU registration would enhance consumer protection by aiding in dispute resolution, fraud compensation, and support from civil forces in tracking down scammers.

Bitget currently operates in India but faces challenges due to the lack of VASP registration.

Alphonso stated, “There’s difficulty for new users to access Bitget apps on Google Play store and App store while existing users can use the app with all its available features.”

She did not specify the exact services Bitget offers its current users in India.

Despite these challenges, Alphonso expressed Bitget’s commitment to the Indian market, describing it as a “high-priority market” for the company.

READ MORE: Polkadot Treasury Reassures Community Amid Concerns Over 2-Year Budget Runway

Bitget’s move towards compliance follows recent approvals by India’s FIU for VASP applications from other major exchanges like Binance and KuCoin in May 2024.

These approvals reinstated their legal status in India after the FIU had issued noncompliance notices to nine crypto exchanges, including Binance and KuCoin, in late 2023.

Due to these compliance issues, apps from Binance, KuCoin, Bitget, Huobi, OKX, Gate.io, and MEXC were blocked on Apple’s App Store in India in December last year.

KuCoin reportedly paid a penalty of $41,000 and resumed operations in May 2024. The FIU also fined Binance $2.25 million for servicing Indian clients without adhering to local Anti-Money Laundering rules.

“Currently other global exchanges — like KuCoin and Binance — have paid penalties and are now completing the registration to restore full services.

“This is now the same case with Bitget — it’s applied for registration and is currently in talks with the regulators,” Alphonso stated.


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Top US Hedge Funds Embrace Bitcoin ETFs as BTC Outperforms Major Stocks and Indexes in 2024

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Over half of the top American hedge funds have disclosed exposure to newly launched spot Bitcoin exchange-traded funds (ETFs) in a year, as BTC/USD has significantly outperformed major stocks and indexes.

Data from investment firm River reveals that 13 out of the top 25 United States hedge funds owned Bitcoin ETFs by the end of Q1 2024.

Notably, Millennium Management held 27,263 BTC worth $1.69 billion, making up about 2.5% of its total assets under management worth $67.7 billion.

Other significant players include Schonfeld Strategic Advisors with 6,734 BTC and Point72 Asset Management with 1,089 BTC.

In contrast, some top hedge funds, such as Bridgewater Associates, AQR Capital Management, and Balyasny Asset Management, have yet to invest in Bitcoin ETFs.

Interestingly, Bitcoin’s growing acceptance coincides with a rise in cash reserves across U.S. companies.

According to an analysis by treasury advisory firm Carfang Group, the cash or cash equivalents held by corporations reached a record high of $4.11 trillion in Q1 2024.

Some companies, namely Reddit, Semler Scientific, JPMorgan, and Wells Fargo, have allocated a small portion of their cash reserves to Bitcoin or Bitcoin ETFs.

This trend indicates that U.S. firms, including hedge funds and corporations, have become more confident in treating Bitcoin as a viable asset for diversification and hedging against traditional market risks.

Bitcoin outperforming Apple, Tesla stocks in 2024

Wall Street’s interest in Bitcoin grows as the cryptocurrency fares better than top stocks and stock indexes.

READ MORE: Vitalik Buterin Advocates Clearer Crypto Regulations Amid Regulatory Frustration in the US

BTC’s returns in the first half of 2024 were about 94%. In comparison, the U.S. benchmark S&P 500 index rose 23%, while the Dow Jones Industrial Average grew 14% in the same period.

Even Apple and Tesla stocks underperformed Bitcoin, returning 10% and -29%, respectively, year-to-date.

However, Nvidia, which recently became the world’s most valuable publicly traded company, outperformed Bitcoin, rising by over 150% in the first six months of 2024 due to an ongoing artificial intelligence boom.

Veteran trader Peter Brandt anticipates Bitcoin’s relevance growing as a hedging asset, particularly against traditional safe havens like gold.

He noted that BTC’s market capitalization could rise 230% against gold after 2025.

Earlier this year, ARK Invest’s annual research report concluded that institutional portfolios aiming for maximized risk-adjusted returns should have allocated 19.4% to Bitcoin in 2023.


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Cryptocurrency ATM Installations Surge Globally, Approaching Record Highs in 2024

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The global presence of cryptocurrency ATMs has surged by 17.8% over the past year, reaching 38,279 units, approaching the previous peak of 39,541 set in December 2022.

According to Coin ATM Radar’s latest data for 2024, there have been 2,564 new installations, marking a notable turnaround from the net loss of 2,861 machines in 2023.

From July 2023 to May 2024, installations consistently rose, with June alone seeing a rebound of 377 machines after a slight dip of 115 in May.

Bitcoin Depot leads the market with 7,543 ATMs, followed by Coinflip with 5,057, and Athena Bitcoin with 2,756 units.

Bitcoin remains the dominant cryptocurrency transacted, alongside Bitcoin Cash, Ether, and Litecoin.

The United States hosts over 82% of all cryptocurrency ATMs globally, with Canada following at 7.7%.

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Australia has shown remarkable growth, expanding nearly 17-fold to 1,107 machines over the past two years, positioning itself to potentially surpass Europe’s 1,584 ATMs.

Other significant countries in the cryptocurrency ATM market include Spain (313), Poland (279), El Salvador (215), Germany (177), and Hong Kong (169), with Romania, Georgia, Switzerland, Austria, and New Zealand each hosting over 100 ATMs.

Despite a decline in installations from December 2022 to July 2023, hitting a low of 32,764, the trend has reversed since then.

BitAccess, a prominent ATM manufacturer, saw its installations drop initially but has since rebounded with a net increase of 1,208 machines.

Overall, 72 countries among the 193 United Nations-recognized nations now feature cryptocurrency ATMs, underscoring the growing global adoption of digital currencies in everyday transactions.


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SEC Files Lawsuit Against Consensys Over Unregistered Brokerage and Crypto Securities Sales

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The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, the parent company of MetaMask, alleging violations related to unregistered brokerage and the sale of securities.

According to the complaint filed on June 28, Consensys has been operating as an unregistered broker and conducting unregistered securities offerings through its MetaMask Swaps service since 2020.

The SEC claims that Consensys has earned more than $250 million in fees from crypto asset transactions and staking services without complying with federal securities laws, thereby leaving investors without necessary protections.

The SEC seeks permanent injunctions, civil penalties, and other equitable relief against Consensys for these alleged violations.

In response to the lawsuit, Consensys has been vocal about its position, stating, “Since January 2023, Consensys has engaged in the unregistered offer and sale of securities in the form of crypto asset staking programs, and acted as an unregistered broker, through its MetaMask Staking service.

“By its conduct as an unregistered broker, Consensys has collected over $250 million in fees.”

The SEC further alleges that Consensys acted as an intermediary in unregistered transactions by facilitating investments in staking programs offered by Lido and Rocket Pool.

The complaint reads, “Consensys has offered and sold tens of thousands of securities for two issuers: Lido and Rocket Pool.

By this conduct, Consensys acts as an underwriter of those securities and participates in the key points of their distribution.”

Consensys had preemptively sued the SEC in April following a Wells notice, challenging the classification of Ether and related staking services as securities.

READ MORE: Cardano Developers Thwart DDoS Attack, Plan Node Upgrade to Enhance Security

The company criticized the SEC’s approach, accusing it of regulatory overreach and attempting to expand its jurisdiction through litigation.

The SEC’s complaint specifically targets staking programs offered by Lido and Rocket Pool, arguing that these programs constitute investment contracts and thus qualify as securities.

The SEC asserts that investors participating in these staking programs expect profits from the managerial efforts of Lido and Rocket Pool, despite neither entity filing a registration statement with the SEC.

Staking, a process where cryptocurrencies are locked to support blockchain networks, involves validators confirming transactions and earning rewards, akin to passive income.

The SEC’s scrutiny extends beyond Consensys; previously, Kraken settled with the SEC for $30 million over similar allegations, prompting the cessation of its staking services for U.S. clients.

Coinbase, another prominent entity, is also contesting the SEC’s stance on staking in ongoing legal proceedings.

In essence, the SEC’s actions underscore its regulatory stance on cryptocurrency-related activities, particularly staking services, emphasizing compliance with securities laws to protect investors’ interests.


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VanEck Files for First Solana ETF in the U.S., Aiming to Leverage SOL’s Utility and Decentralization

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VanEck, one of the initial issuers of spot Bitcoin exchange-traded funds (ETFs) in the United States, has filed for a new Solana ETF.

Matthew Sigel, VanEck’s head of digital assets research, announced on X on June 27 that the firm has submitted an application for a Solana ETF with the U.S. Securities and Exchange Commission (SEC).

The new fund, named the VanEck Solana Trust, is designed to leverage Solana’s decentralized characteristics, high utility, and economic feasibility, according to Sigel.

He noted that this is the first filing for a Solana ETF in the United States.

In his post, Sigel explained why the company views SOL as a commodity, writing: “We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and Ether.

“It is utilized to pay for transaction fees and computational services on the blockchain.

“Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.”

READ MORE: DFX Labs Nears Full Operational License in Hong Kong Amid Regulatory Push for Global Crypto Startups

VanEck’s SEC filing indicates that the VanEck Solana Trust is expected to be listed on the Cboe BZX Exchange, pending SEC approval.

The investment goal of the VanEck Solana Trust is to mirror the performance of Solana’s cryptocurrency price, excluding the trust’s operational expenses.

The filing specifies that the trust will use the MarketVector Solana Benchmark Rate index for daily share valuation.

This index is based on prices from the top five SOL trading platforms, as identified by the CCData Centralized Exchange Benchmark review report.

VanEck’s Solana ETF filing follows the U.S. SEC’s approval of spot Ether ETFs on May 23, 2024.

This approval resolved longstanding debates about the classification of ETH, affirming it as a commodity rather than a security.

Subsequently, the SEC reportedly halted an investigation into whether Ether is a security on June 19.


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