Coinbase users have taken to Twitter to report an increasing number of scams and phishing attacks involving the company’s services and applications.
These reports include claims that scammers are exploiting Coinbase’s domain name.
The most recent incident was disclosed by a Twitter user named Daniel Mason on July 7. Mason received texts and emails from fraudsters who used links under the domain Coinbase.com.
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The scammer contacted Mason using a legitimate phone number and subsequently triggered an email from a Coinbase.com domain.
This was followed by a phishing text message directing Mason to a Coinbase subdomain URL.
The fraudster then proceeded to obtain Mason’s personal information, including his address, social security number, and driver’s license number.
Mason highlighted that the scammer was articulate and spoke English fluently. During a phone conversation, the fraudster informed Mason that he would receive an email from Coinbase regarding a supposed breach of his account.
Almost immediately, an email arrived from help@coinbase.com. Mason questioned whether the scammer had created a case on his behalf or gained access to Coinbase’s mail servers.
Numerous individuals on social media have reported similar security incidents involving Coinbase.
Users have complained about various types of scams, including phishing attempts on Coinbase Wallet and criminals exploiting the company’s web address.
Cointelegraph interviewed an anonymous victim who experienced a similar approach.
This individual called Coinbase’s support line to verify the authenticity of an email claiming their account had been compromised.
A Coinbase employee confirmed the communication was genuine, but it turned out that the email was the work of a hacker.
The victim alleges that the hacker, masquerading as a Coinbase employee, stole their cryptocurrency.
Despite having evidence such as a witness, the date and time of the call, and the name of the employee they spoke to, the victim claims Coinbase took no accountability.
The case is currently in litigation, and the victim estimates a loss of approximately $50,000.
These reports mirror the attack on Twitter user Jacob Canfield. On June 13, Canfield received a text message and phone calls from a scammer who claimed there had been a change in his two-factor authentication.
The fraudster redirected Canfield to the “security” team, attempting to verify his account to avoid a 48-hour suspension.
The scammer possessed Canfield’s name, email, and location, and sent a “verification code” email from help@coinbase.com to his personal email.
The criminal became agitated and hung up when Canfield refused to provide the code.
The email address help@coinbase.com is listed as an official and reliable address on Coinbase’s support page.
The company’s blog emphasizes that its staff will never ask users for passwords or two-step verification codes, nor will they request remote access to devices.
Coinbase stated in a response to Cointelegraph that it has dedicated extensive security resources to educate customers about preventing phishing attacks and scams.
The company collaborates with international law enforcement to ensure that anyone defrauding Coinbase customers faces legal consequences
To enhance security, experts recommend using strong and unique passwords for cryptocurrency accounts and enabling two-factor authentication on applications.
Google Cloud, the $225-billion cloud and data service provider, has recently joined the ranks of companies showing interest in Bitcoin.
In a partnership with Voltage, an infrastructure provider specializing in the Bitcoin Lightning Network, Google Cloud aims to expand its Bitcoin-based services globally while assisting Voltage in expanding its operations.
Through this collaboration, Voltage will leverage Google Cloud to cater to its customers on a global scale.
Graham Krizek, CEO of Voltage, explained that they have larger customers who require nodes deployed in specific geographic regions such as the U.K. or Asia.
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On the other hand, Google can utilize Voltage as an outsourced Bitcoin and Lightning team, supporting companies interested in integrating Bitcoin or Lightning into their services.
The announcement of the partnership has garnered significant attention on social media, highlighting Google’s growing understanding and acceptance of Bitcoin and Lightning.
However, the implications of this collaboration run deeper than mere interest.
Christopher Calicott, managing director of venture capital firm Tramell Venture Partners, revealed that former Googlers had expressed how such unexpected social media engagement captures the attention of Google.
Additionally, Google’s open-minded approach to Lightning sets it apart from its competitor, Apple. Apple recently removed Damus, a Lightning-friendly decentralized social media protocol, from the App Store, indicating its aversion to Lightning.
Calicott suggested that the tech industry may be warming up to Lightning, particularly those involved in payment services.
Operating under the umbrella of Alphabet, Google Cloud benefits from its parent company’s extensive reach. Google Pay, the payment platform, boasts millions of users across more than 15 countries.
Since 2020, Google Ventures (GV), the investment arm of Google, has exhibited a strong interest in blockchain, Web3 companies, and Bitcoin.
GV participated in a $6-million seed round for Voltage in 2021, indicating the growing momentum in the crypto space.
Despite Apple’s actions, Lightning continues to gain traction among billion-dollar businesses worldwide.
One of Mexico’s largest companies has started experimenting with Lightning, and major crypto exchanges like Binance and Coinbase have promised Lightning integrations.
While it is still early in the adoption process, industry observers like Calicott emphasize the need to monitor its growth. Krizek, with his experience in the Bitcoin space since 2012, stressed the significance of the partnership.
As organizations are exposed to Bitcoin and its possibilities through Lightning, the increasing interest and demand have already captured their attention.
Krizek expects more services to be rolled out soon, accompanied by efforts in Bitcoin education.
Meta has issued a response to Elon Musk’s lawsuit threat against their new platform Threads, stating that none of the app’s staff members have any former affiliation with Twitter.
After Meta’s text-based platform, Threads, was launched in collaboration with Instagram, it quickly gained massive popularity with tens of millions of signups, making it the fastest downloaded app ever and the most popular alternative to Twitter.
However, just hours after its release, Twitter’s attorney, Alex Spiro, sent a letter to Meta CEO Mark Zuckerberg, alleging that the company had unlawfully copied Twitter’s platform by hiring former Twitter employees.
The letter, as reported by Semafor, claimed that Meta engaged in the “systematic, willful, and unlawful misappropriation of Twitter’s trade secrets and other intellectual property.”
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Spiro’s letter demanded that Meta immediately cease using any of Twitter’s trade secrets or confidential information and warned of potential legal action.
He emphasized Twitter’s intention to protect its intellectual property rights and mentioned the possibility of seeking civil remedies and injunctive relief.
According to Spiro, Meta hired multiple former Twitter employees who allegedly had access to Twitter’s trade secrets and confidential information.
He argued that Meta’s Threads app was developed with the explicit intention of utilizing Twitter’s intellectual property to expedite the development of Meta’s competing platform.
Spiro claimed that this action violated both state and federal laws, as well as the ongoing obligations of the employees to Twitter.
In response to these allegations, Meta’s communications director, Andy Stone, addressed the claims by stating that the Threads engineering team does not include any former Twitter employees.
He explicitly clarified on the Threads platform, “To be clear: No one on the Threads engineering team is a former Twitter employee – that’s just not a thing.”
Elon Musk, upon hearing about Twitter’s threat of legal action against Meta, responded by stating, “Competition is fine, cheating is not.”
As the situation unfolds, it remains to be seen how Meta and Twitter will resolve this dispute. Both companies are prominent players in the social media landscape, and the outcome of this conflict could have significant implications for the industry.
The reported sponsorship deal between FTX, a now-defunct cryptocurrency exchange, and Taylor Swift has taken a new turn as recent information suggests that it was former CEO Sam Bankman-Fried (SBF) who requested the deal to be called off, and not the popular singer-songwriter, as previously believed.
According to an article published by The New York Times on July 6, three individuals familiar with the sponsorship deal revealed that Bankman-Fried was the one responsible for ending the agreement worth approximately $100 million with Swift before FTX filed for bankruptcy.
Swift’s team had reportedly agreed to the deal after more than six months of negotiations, only to be left frustrated and disappointed when SBF abruptly canceled it.
This revelation contradicts the narrative presented by various media outlets, which had previously suggested that Swift’s team had diligently assessed the FTX deal before withdrawing.
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Notably, several celebrities such as Tom Brady and Stephen Curry, along with other prominent figures, have faced legal scrutiny following the collapse of the exchange.
Some of them have been named in class-action lawsuits filed by disgruntled FTX investors.
Before the news of the potential FTX deal emerged, Taylor Swift had remained relatively detached from the cryptocurrency space.
However, she is no stranger to the concept of owning one’s own data, as evidenced by her famous decision to re-record and re-release many of her albums in 2021 following a dispute with one of her previous labels.
This showcases her awareness of the power of retaining control over her music and intellectual property.
Sam Bankman-Fried’s upcoming criminal trial, pertaining to his alleged involvement in fraud at FTX, is scheduled to commence in October.
Meanwhile, the crypto exchange’s bankruptcy case continues to unfold in the United States District Court for the District of Delaware.
The development surrounding the sponsorship deal between FTX and Taylor Swift shines a light on the complexities and controversies surrounding both the crypto industry and celebrity endorsements.
As the legal proceedings progress, further details may emerge, providing a clearer understanding of the events that transpired and the implications for all parties involved.
The Bitcoin Legal Defense Fund (BLDF) argues that a recent report released by the United Kingdom’s Law Commission could undermine a crucial argument made by Craig Wright in his controversial lawsuit against 12 Bitcoin core developers.
The 300-page report, which focuses on digital assets, was published in late June by the Law Commission, an independent organization responsible for reviewing and recommending reforms to UK and Welsh laws.
It includes a classification of fiduciary duty that supports the developers’ defense, asserting that they are not directly responsible for the loss of 111,000 Bitcoin (BTC) valued at approximately $30,170, due to hacking.
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In his lawsuit filed in 2021, Craig Wright, the owner of Tulip Trading, claimed that the developers involved in the open-source development of Bitcoin Core owed him a fiduciary duty regarding his financial loss.
Wright is seeking access to the Bitcoin Core blockchain as a means to recover the allegedly stolen funds. He is also known for asserting that he is the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
The UK report delves into the definition of fiduciary duty, identifying recognized categories such as “agents, trustees, partners, company directors, and solicitors.”
The report emphasizes that fiduciary duty rarely exists outside of these established categories. The BLDF, acting as the developers’ legal representative, argues that the defendants do not fall into any of the criteria outlined by the Law Commission.
In a recent blog post, the BLDF stated, “They are not agents, trustees, partners, company directors, or solicitors, and they never undertook or were entrusted with authority to manage the property or make discretionary decisions on behalf of another person.”
Furthermore, the BLDF emphasized that Bitcoin was designed to facilitate transactions between individuals without the need for third-party authority.
The outcome of the Tulip Trading lawsuit could establish a legal precedent for the liability of open-source developers concerning assets.
The trial is expected to take place in 2024 and could have far-reaching implications for the community of open-source developers, as 97% of the world’s software programs are open-sourced, as noted by Jessica Jonas, Chief Legal Officer of the BLDF, during the Bitcoin 2023 conference in May.
The UK Law Commission report also advocates for the creation of a new and distinct category of personal property to accommodate the unique characteristics of digital assets.
Bitcoin Lightning Network development firm, Lightning Labs, has introduced a new toolkit designed to facilitate artificial intelligence (AI) interactions with the Bitcoin network.
The toolkit enables AI applications like OpenAI’s ChatGPT to send, receive, and hold Bitcoin on the network’s layer-2 solution.
By leveraging Lightning, AI developers can enjoy faster, cheaper, and more convenient payment options, while also enabling pay-per-use AI models.
Lightning Labs announced the release of the toolkit on July 6, highlighting the potential for innovation in the field of large language models (LLMs) that can generate human-like responses and perform various tasks.
The tools are built on the “L402 protocol,” which serves as a lightning native authentication mechanism, and employ “Langchain,” a library that simplifies operations involving AI applications.
READ MORE: Coinbase, Binance and Gemini have least happy employees
By providing these tools, Lightning Labs aims to foster the development of more accessible AI infrastructure for both humans and AI agents.
The company also acknowledges the challenge faced by AI developers who lack native web-based payment mechanisms.
Currently, these developers must rely on outdated payment methods like credit cards, resulting in additional costs for users.
Lightning Labs’ solution seeks to address this issue and eliminate the need for traditional payment rails.
Kody Low, a developer at the community payments platform Fedi, highlighted the interoperability between AI and Bitcoin for payments during an interview on the Stack Sats podcast.
He emphasized that Bitcoin offers unparalleled solutions for AI monetization and that AI companies have yet to solve their financial challenges.
Despite the promise of the Lightning Network, data from Lightning Network analytics platform 1ML shows that its current capacity stands at 5,432 BTC (approximately $163.5 million).
Additionally, Bitcoin Visuals reports a decline in the number of lightning channels over the past year, dropping from around 80,000 in July 2022 to approximately 70,000 at present.
Lightning Labs’ introduction of these new tools for AI-Bitcoin interactions marks a significant step towards expanding the capabilities and accessibility of AI applications on the Lightning Network.
As the Lightning Network continues to evolve, it has the potential to revolutionize the way AI developers integrate payment systems and monetize their models, ultimately driving further innovation in the field.
Twitter Payments LLC, a subsidiary of Elon Musk’s Twitter social network, has made progress in its venture as it has received money transmitter licenses from Michigan, New Hampshire, and Missouri.
These licenses enable the company to offer transfer services and payment instruments, emphasizing consumer protection in money transmission rather than just the purchase of goods and services.
Although the exact nature of Twitter Payments’ offerings remains uncertain, the company has applied for licenses in all 50 U.S. states.
However, there is no clear timeline for the approval process, and both Musk and CEO Linda Yaccarino have yet to provide substantial details regarding their plans.
According to insiders familiar with the company, Twitter Payments will initially focus on providing fiat currency transaction services, potentially resembling the services offered by Stripe, Venmo, and PayPal.
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In the future, Twitter Payments reportedly aims to expand its platform to include cryptocurrency services.
Speculations have also surfaced about the company’s intention to introduce its own token through a project known as “Twitter Coin” and the development of its own digital wallet.
Elon Musk’s commitment to making daring decisions is evident in his statement that Twitter would “do lots of dumb things,” aligning with the mantra of the modern tech industry to “move fast and break stuff.”
While these changes have sparked mixed reactions, some changes implemented by Twitter have raised eyebrows.
For instance, the platform limited non-paying users to accessing only 500 posts within a specific timeframe through the rate limiter feature.
Furthermore, the recent restriction that required users to be logged into their Twitter accounts to view posts was quietly rescinded on July 5, according to reports from TechCrunch and Engadget.
As Twitter Payments progresses with its licensing and development, users and industry observers eagerly await further announcements from Elon Musk and Linda Yaccarino, hoping for more clarity on the company’s future plans and potential impact on the financial and cryptocurrency sectors.
On-chain derivatives are predicted to experience significant growth in the decentralized finance (DeFi) sector, according to Henrik Andersson, the Chief Investment Officer of Australian crypto investment firm Apollo Crypto.
In an interview with Cointelegraph, Andersson highlighted the increasing popularity of decentralized spot trading as a catalyst for the growing demand for decentralized derivatives.
Andersson emphasized that while decentralized spot exchanges have been gaining market share from centralized exchanges for the past six years, decentralized perpetuals and futures trading are relatively new, presenting a high-growth opportunity for on-chain derivatives.
This trend has been further accentuated by the surge in daily trading volume on decentralized exchanges (DEXs) during the memecoin frenzy in May, which briefly surpassed that of established centralized crypto exchanges like Coinbase.
Additionally, the trading volumes on DEXs spiked by over 400% following regulatory actions against Binance and Coinbase in June.
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Andersson revealed that Uniswap, a leading DEX, has been trading more daily volume than Coinbase over the past year, and DEXs have been steadily gaining ground in terms of overall market share.
He pointed out that monthly spot trading volumes on DEXs have exceeded $50 billion.
Furthermore, Andersson anticipated that the trend of futures-heavy trading seen in centralized exchanges would also be replicated in DeFi, making on-chain derivatives the best product-market fit for the DeFi space in years.
He noted that futures trading accounted for nearly 80% of the entire crypto market’s trading volume on centralized exchanges in June.
In addition to on-chain derivatives, Andersson mentioned two emerging market sectors that have caught his attention.
The first is NFTFi, which combines non-fungible tokens (NFTs) and DeFi, enabling investors to rent, borrow, fractionalize, create derivatives, and establish prediction markets based on NFTs.
Andersson believed that NFTs would be utilized for a wider range of functions within the DeFi space due to their strong investment narrative.
The second emerging theme mentioned by Andersson is LSDFi, which leverages liquid staking derivative (LSD) tokens, such as Lido Staked ETH (stETH) and Rocket Pool ETH (rETH), allowing investors to borrow, speculate, and hedge against their LSD tokens.
The popularity of LSDs has grown rapidly, with LSD protocols surpassing DEXs in terms of total value locked (TVL) after Ethereum’s Shapella upgrade.
Andersson acknowledged the need to address the issue of centralization among certain staking providers in the LSD space and called for a more balanced array of protocols to ensure a diversified environment.
In conclusion, Andersson’s insights highlight the potential of on-chain derivatives as a significant growth sector within DeFi.
He also recognized the emerging sectors of NFTFi and LSDFi as areas of interest, indicating their potential impact on the DeFi landscape.
In a remarkable turn of events on July 5, a fortunate cryptocurrency investor unexpectedly found themselves $322,000 richer.
Conor Grogan, the head of product at Coinbase, took to Twitter to share the story of how he stumbled upon dormant crypto assets and successfully contacted the unknowing owner.
Grogan explained that when the Ethereum blockchain underwent a fork in 2016, creating Ethereum Classic (ETC), anyone holding the standard Ether (ETH) on-chain was airdropped an equal amount of ETC.
However, many investors never touched these newly acquired funds.
Grogan remarked that it is common for individuals to forget about funds on-chain or fail to keep track of airdrops.
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He revealed that he had previously recovered six-figure sums for investors in similar situations, such as notifying a Twitter user of 23 ETH that had remained untouched.
Tracking down these wallets proved to be a challenging task. Grogan began by meticulously searching the “ETC rich list” for accounts that had never accessed their ETC.
After identifying around 20 addresses holding over $250,000 worth of ETC, he painstakingly examined each one to find a means of communication.
Grogan faced multiple dead ends in most cases until he stumbled upon an address with the prefix “0x475.”
Curiously, this wallet contained a cryptocurrency called eosDAC (EOSDAC), which had been airdropped to Ethereum holders in 2018.
Armed with this newfound information, Grogan used the airdrop amount and snapshot date to connect with the owner’s EOS wallet.
As Grogan delved deeper, he discovered that the 0x475 ETH address had an intriguing history, which eventually enabled him to uncover the legal name associated with it by scrutinizing legal documents.
In an uplifting conclusion, Grogan successfully reached out to the owner and informed them about their long-forgotten wealth.
Reflecting on the experience, Grogan expressed his hope that he had brightened the owner’s day by reconnecting them with their lost funds.
This tale serves as a reminder of how easy it can be to overlook or lose track of valuable assets in the fast-paced world of cryptocurrencies.
Bitcoin miners experienced a significant boost in earnings during the second quarter of 2023, as transaction fees reached a staggering $184 million.
This figure surpasses the total transaction fee earnings for the entire year of 2022, showcasing the remarkable growth in profitability.
The latest data from cryptocurrency analytics platform Coin Metrics reveals that this represents a remarkable increase of over 270% from the first quarter of 2023.
Moreover, it marks the first time since the second quarter of 2021 that quarterly transaction fees have exceeded $100 million.
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This surge in fees can be attributed to two key factors. Firstly, Bitcoin’s price surge played a crucial role in bolstering top-line revenues.
Additionally, the introduction of BRC-20, a new token standard on the Bitcoin network, has expanded the possibilities for various use cases and accelerated the scalability of the network through the Lightning Network.
It is important to note that transaction fees accounted for only 7.7% of the total $2.4 billion earned by miners throughout the quarter.
The majority of their earnings still came from Bitcoin block rewards, which currently stand at 6.25 BTC per solved block.
However, this reward is set to decrease to 3.125 BTC following the network’s anticipated halving in May 2024.
Beyond their substantial earnings, Bitcoin miners had additional reasons to celebrate in Q2.
The blocking of the proposed Digital Asset Mining Energy tax by the Biden administration was a notable win for the mining industry.
Additionally, U.S.-based miners benefited from favorable macroeconomic conditions, leading to lower electricity prices due to receding inflation pressures.
Despite these positive developments, the mining fee market has become increasingly competitive as Bitcoin’s hash rate continues to reach new all-time highs.
Coin Metrics reports that the network’s efficiency has improved with the adoption of advanced ASICs like the S19 XP.
The fierce competition underscores the evolving landscape of Bitcoin mining and highlights the need for miners to stay ahead in this rapidly changing environment.
In conclusion, Bitcoin miners enjoyed a highly profitable second quarter of 2023, with transaction fees soaring to $184 million.
This milestone reflects the substantial growth in Bitcoin’s value and the emergence of new token standards.
However, miners must remain vigilant as competition intensifies, and they face the challenges of future halvings and a dynamic mining industry.