The recent data breach experienced by Evolve Bank has impacted Bitfinex and other platforms. The crypto-friendly financial institution disclosed a significant security incident involving the theft of 33 terabytes of user data. While customer funds remain secure, sensitive customer information stored in the bank's databases was likely accessed by hackers.

Suspicious Activity

The breach, attributed to the Lockbit ransomware group, apparently compromised personal data of Bitfinex users among others. The stolen data includes personally identifiable information such as names, addresses, social security numbers, tax IDs, dates of birth, account balances, and email addresses, affecting over 155.5k accounts associated with companies like Bitfinex, Nomad, and Copper Banking.

Evolve Bank acknowledged a system malfunction in late May due to unauthorized activity, triggered when an employee unwittingly clicked on a malicious link. The bank claims it contained the attack quickly and observed no further unauthorized activity since May 31st.

Damage Control

Despite encrypting some data within its environment, Evolve managed to mitigate the impact using backups and opted not to pay the ransom demanded by Lockbit. The bank clarified that the ransomware group mistakenly linked the data to the Federal Reserve.

The investigation is ongoing, with early findings indicating potential exposure of names, Social Security numbers, bank account details, and contact information for personal banking customers, as well as employees and Open Banking partners. Concerns have also been raised about Evolve Bank reportedly delaying notifying affected fintech companies and end users about the breach, which only became public knowledge recently.

PostFinance, the Swiss government-owned bank, has broadened its cryptocurrency services by introducing trading and custody options for Ripple (XRP), Solana (SOL), Avalanche (AVAX), Cardano (ADA), and Polkadot (DOT). This development underscores the overall commitment by the bank toward integrating digital assets into its offerings, following an initial collaboration with Sygnum Bank in April 2023.

Meeting Demand

PostFinance clients can now securely purchase, store, and trade major cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC). Fritz Jost, Chief B2B officer for Sygnum, has highlighted the significant role of the partnership in advancing the local digital asset landscape.

Moreover, the recent announcement of trading and custody services for XRP, AVAX, ADA, SOL, and DOT aims to meet the increasing demand among its 2.5 million customers for diverse cryptocurrency investment options. The inclusion of these assets aligns with a global trend favoring blockchain platforms known for active development, such as Cardano, Solana, and Polkadot, which often exceed Ethereum in GitHub submissions, according to Santiment.

A Global Center

Charles Hoskinson, founder of Cardano, praised PostFinance and their established relationship with Ethereum. PostFinance reiterated its commitment to expanding cryptocurrency services within the rapidly evolving regulatory framework of Switzerland.

Switzerland, renowned for its Crypto Valley in Zug, continues to lead in digital asset adoption, fostering blockchain innovation through progressive regulations. The initiatives by PostFinance exemplify the increasing integration of cryptocurrencies into traditional banking, reinforcing the status of the country as a global center for digital assets.

Coinbase will introduce Shiba Inu (SHIB) futures contracts on July 15th, expanding its cryptocurrency derivatives lineup. These contracts, denominated in SHIB tokens priced at $0.00001 each, will be cash-settled and margined.

Each contract will represent 10 million SHIB and will trade under the code SHB. Daily settlements will occur at 3:00 PM CT, with final settlements on the last Friday of each contract month at 4:00 PM London time. This move is anticipated to increase the potential and attractiveness of SHIB in the crypto market, offering traders a new avenue for investment and speculation.

Futures Contracts

In addition to SHIB, Coinbase has applied to the Commodity Futures Trading Commission (CFTC) for futures contracts tied to other popular altcoins such as Polkadot (DOT), Stellar Lumens (XLM), Avalanche (AVAX), and Chainlink (LINK). These altcoin futures are also slated for launch on July 15th, aiming to provide users with enhanced tools for managing risk and speculating on prices.

Coinbase is prepared to manage the inherent volatility of SHIB by implementing robust risk controls, including price limits, margin requirements, and daily price caps. This strategy draws on the experience of the platform in handling volatility with existing products, ensuring a stable trading environment for SHIB futures.

Capitalizing On Community Engagement

SHIB, launched in August 2020 on the Ethereum blockchain, aims to capitalize on its community-driven origins akin to Dogecoin (DOGE). The upcoming Shibarium Layer 2 solution promises improved scalability and reduced transaction costs, enhancing the utility of SHIB for everyday transactions and decentralized applications.

By diversifying its product offerings, Coinbase seeks to empower traders with strategic opportunities in the cryptocurrency market, requiring lower initial capital investments. This initiative aligns with the broader objective of Coinbase when it comes to enhancing its product range and enriching the overall trading experience. The introduction of these futures contracts is poised to enrich market dynamics and broaden trading options for users.

Digital asset investment products saw their third consecutive week of withdrawals totaling $30 million, with Ethereum (ETH) continuing to experience outflows while there are signs of evolving investor sentiment towards Bitcoin (BTC).

Shifting Market Sentiment

According to the latest Digital Asset Fund Flows Weekly report by CoinShares, most providers reported minor inflows, although Grayscale recorded significant outflows amounting to $153 million. Trading volumes rose by 43% compared to the previous week, reaching $6.2 billion, yet remaining below the annual average of $14.2 billion as highlighted in the report.

During the past week, multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million respectively. Conversely, products designed to short Bitcoin saw outflows of $4.2 million, indicating a potential shift in market sentiment. Several altcoins attracted investor interest, with Solana (SOL) receiving $1.6 million, Litecoin (LTC) $1.4 million, and smaller inflows noted for Chainlink (LINK) and Ripple (XRP) at $0.6 million and $0.3 million respectively.

A Mixed Bag

Investment products tied to Ethereum witnessed the largest outflows since August 2022, totaling $61 million over the week, contributing to a two-week total of $119 million, positioning it as the worst-performing asset in terms of net flows for the entire year. Despite positive sentiment towards cryptocurrencies this year, blockchain equities faced significant outflows of $545 million, representing 19% of assets under management.

In geographical terms, the US led in inflows with $143 million, followed by Brazil with $7.6 million and Australia with $3 million in weekly inflows. Conversely, Germany, Hong Kong, Canada, and Switzerland saw outflows totaling $29 million, $23 million, $14 million, and $13 million respectively during the same period, with Sweden recording outflows of $4.3 million.

Keith Gill, the stock trader famously involved in the 2021 GameStop short-squeeze, is facing allegations of securities fraud in a recent class-action lawsuit. The lawsuit, filed in late June in the Eastern District of New York, accuses Gill of conducting a pump and dump scheme through a series of social media posts starting May 13th.

Lack Of Transparency

According to the complaint, Gill is accused of committing securities fraud by allegedly not properly disclosing his trading activities involving GameStop options calls. This lack of disclosure purportedly misled his followers and resulted in financial losses for some investors, including the plaintiff Martin Radev, who claims to have suffered due to the alleged scheme after purchasing GameStop shares and call options in mid-May.

Despite these claims, a former federal prosecutor, Eric Rosen, believes the lawsuit is likely to fail. Rosen argued in a blog post that the complaint is fundamentally flawed and could easily be dismissed if Gill files a motion to dismiss. He criticized the assertion that Gill should have disclosed his intentions regarding the sale of his options calls in advance, suggesting that such a requirement would be unreasonable and not typical in the securities market.

The Devil Is In The Details

Rosen also pointed out that the case put forth by the plaintiff relies on the assumption that investors should base their decisions solely on social media posts, rather than on verified financial information. He emphasized that proving fraud typically requires demonstrating intentional deception or false statements, which he believes is lacking in this situation.

In summary, while the lawsuit against Keith Gill alleges securities fraud related to his GameStop trading activities and social media posts, legal experts like Eric Rosen suggest that the case faces significant challenges and may not hold up in court.

A recently established coalition of Bitcoin and alternative cryptocurrency miners in Paraguay has voiced serious concerns over recent increases in energy tariffs imposed by the National Electricity Administration.

The coalition, comprising prominent BTC mining firms like Muiden, Antilia Sur, Archer, Richford, and Bitfarms, was formed recently to advocate for regulatory frameworks that support business growth and innovation in the crypto mining sector. They estimate that Bitcoin mining alone contributes approximately $1.5 billion annually to the Paraguayan economy, underscoring the significant economic impact at stake.

A Significant Threat

According to the Paraguayan Chamber of Digital Asset Mining, these tariff hikes, ranging anywhere between 13% to 16%, pose a significant threat to the sustainability of the mining industry in the country. The chamber emphasized that such increases could potentially lead to the complete disappearance of the sector within Paraguay, citing the profound negative impacts on revenue generation, employment stability, and overall confidence in local economic policies.

Furthermore, members of the mining chamber pointed out disparities in energy pricing, highlighting that crypto miners are being charged notably higher rates compared to other industrial sectors in Paraguay. They argued that these differential tariffs not only disadvantage the mining industry but also undermine the reputation of the country as a stable and favorable destination for investment. This, they asserted, could erode legal certainty and deter both local and foreign investors.

The Importance Of Crypto Mining

Cryptocurrency mining is the process of using powerful computers to solve complex mathematical puzzles that validate and secure transactions on blockchain networks such as Bitcoin. Miners compete to find the correct solution first and are rewarded with newly minted coins and transaction fees. This process plays a crucial role in maintaining the integrity and decentralization of cryptocurrency networks, as transactions are verified without the need for a central authority.

Still, the initial investment in specialized mining hardware can be substantial, potentially limiting participation to those with sufficient financial resources. Lastly, regulatory uncertainty poses a risk to miners, as governments around the world continue to develop and revise policies that may affect the legality and profitability of mining activities.

Astria secured $12.50M in strategic funding via Placeholder Ventures on July 1st, 2024. Astria is building a sequencing layer that can be shared amongst multiple rollups.

Sun Protocol received an undisclosed amount in seed funding by DFG on 30th June, 2024. Sun Protocol brings together the main technological architecture of Web3 and dApps on the same network.

MegaETH raised $20.00M in seed funding with support by Dragonfly Capital on 27th June, 2024. MegaETH is an EVM-compatible blockchain that brings Web2-level real-time performance to the crypto world for the first time.

XProtocol received $800.00K in strategic funding by Cogitent Ventures on 27th June, 2024. XProtocol is an entertainment-focused modular blockchain leveraging OP's Superchain for mass adoption.

Rebar Labs closed a $2.90M seed round with investment by @6th Man Ventures. Rebar Labs empowers Bitcoin's ecosystem to address MEV, ensuring fair and transparent markets for users and miners.

Fenix secured $300.00K in seed funding by Orbs on 27th June, 2024. Fenix is an AMM platform optimizing liquidity pool deployment and trading efficiency.

Bluefin announced an undisclosed M&A transaction with Flow Traders on 27th June, 2024. Bluefin (formerly Firefly) is a decentralized, orderbook-based exchange for financial products.

ORA completed a Series A round with $20.00M led by Polychain Capital 26th June, 2024. ORA is a verifiable oracle protocol that integrates AI and complex computations into blockchain environments. 

The cryptocurrency market is seeing widespread declines with numerous coins showing relatively modest drops. Besides low trading volumes across the board, Bitcoin (BTC) is approaching $60K, while most alternative cryptocurrencies are gradually losing value. The total market capitalization has decreased to $2.37 trillion.

Declining Towards $60K

Bitcoin has fallen by 1.3% in the past 24 hours, contributing to a weekly loss of approximately 6%. As of now, the leading cryptocurrency is edging closer to $60K amidst generally subdued trading volumes. The last 24 hours have witnessed around $100 million in liquidations, with BTC leading with $37M.

Several major altcoins are also recording minor declines. For instance, ETH is down by 1.8%, BNB by 1.6%, SOL by 2.5%, TON by 1.7%, among others. Some altcoins are experiencing more significant losses, such as UNI, which has dropped by 6%. Meme coins, a unique segment in the cryptocurrency space, are similarly down by over 3% in the past day, with DOGE and SHIB declining by 1.3%. PEPE has decreased by 5.2%, while BON is down by 3%.

Notably, LDO is the worst performer, plummeting by 15%. ENA follows with a 9.2% decline, and STRK is down by 6.4%. Conversely, QNT token is the top performer, surging by 10% in the day. AR comes in second with a 4% increase.

Overall trading volumes have dipped to around $67 billion over the past day, a typical occurrence during weekends. The focus now turns to whether bullish sentiment will strengthen or if further corrections lie ahead.

Other Markets

Asia is cracking down hard on high-speed traders and short sellers, while collateralized loan obligations (CLOs) find themselves awash with cash but struggling to find worthwhile investments. Analysts are turning to a handful of charts to divine the future of the stock market after a rollercoaster first half of the year. Over in the US, job growth is expected to taper off along with wage increases.

Meanwhile, China is sending warning signals with yet another contraction, underscoring broader economic anxieties. Singapore bids farewell to its last public golf course, making way for urban redevelopment, a poignant symbol of change. In Japan, the roaring stock market rally of early 2024 is predicted to lose steam in the coming months. Lastly, Tanzania steps up to aid drought-stricken Zambia by selling a substantial amount of corn.

Global investment firm 21Shares announced its participation in the race to launch a Solana exchange-traded fund (ETF) last Friday by filing a registration with the U.S. Securities and Exchange Commission (SEC), the primary regulator overseeing crypto ETFs. This move followed closely after VanEck filed for a Solana ETF, which immediately boosted the market price for SOL.

Huge Potential

If approved by the SEC, the first Solana ETFs in the U.S. would provide mainstream investors with exposure to the fifth most-traded cryptocurrency in the world, which currently holds a market cap exceeding $65 billion, according to CoinGecko. This potential launch builds on the success of bitcoin ETFs, which began trading in January and have already attracted $14.45 billion in investments.

The registration by 21Shares follows the successful introduction of a Solana exchange-traded product in Europe, which remains the largest product offering for the firm. Both 21Shares and competitor VanEck submitted S-1 forms this week, a prerequisite for ETFs to publicly trade in the U.S., signaling heightened institutional interest in funds based on Solana.

The Importance Of ETFs

Andrew Jacobson, VP and Head of Legal at 21Shares, said that the company is enthusiastic about the prospect of a U.S.-based ETF that provides exposure to the Solana ecosystem, before adding that this is a pivotal development for the crypto industry.

Jacobson is not wrong, as ETF approval has vastly benefited the crypto sector in the past and will most likely do it again. The Solana ETF potentially being approved also aligns with the overall goal of 21Shares which is to focus on introducing accessible financial products focused on crypto assets to the market.

President Joe Biden and former President Donald Trump shared the stage in Atlanta for a heated debate that also touched on crypto politics in the United States. At the outset, Biden greeted Trump before diving into a critique of the conservative leader when questioned about inflation.

On the topic of climate change, Biden criticized Trump for environmental ignorance and criticized his decision to withdraw from the Paris Climate Accord. Trump defended his stance, arguing it saved the US trillions of dollars.

Back And Forth

Biden argued that Trump encountered significant flaws during his tenure, including problematic relations with Putin and efforts to tackle prescription drug costs and insulin affordability. Trump defended his economic policies, particularly highlighting tax cuts that he claimed spurred economic growth.

Biden directly questioned what the economic legacy for Trump is, stating that he left the Biden administration grappling with an economy in decline. He trivialized the pandemic, suggesting injecting bleach. Responding to what Trump said about Ukraine and Gaza, Biden dismissed his statements as ill-informed, especially concerning NATO. Trump countered by bringing up legal issues involving Hunter Biden, alleging criminal activity.

Ethics And Finance

During the debate, Trump spoke for 23 minutes and 6 seconds, while Biden spoke for approximately 18 minutes and 26 seconds, according to CNN. In a contentious exchange, Biden reminded Trump of ongoing legal issues and financial penalties, questioning his ethical conduct. Trump pledged to secure the release of journalist Evan Gershkovich, currently on trial for espionage in Russia, if elected.

During their debate, Donald Trump emphasized his support for fostering innovation in cryptocurrency and blockchain technology, advocating for minimal regulation to promote growth and economic opportunity.

On the other hand, Joe Biden expressed concerns about the risks associated with cryptocurrency, highlighting the need for regulatory measures to protect consumers and ensure financial stability. He suggested exploring ways to harness blockchain technology while addressing its potential pitfalls.

Kadokawa Corporation, the parent company of Elden Ring publisher FromSoftware, recently disclosed a ransomware attack it suffered earlier this month. Ransomware attacks typically involve demands for cryptocurrencies such as Bitcoin, Ethereum, or others in exchange for decrypting files or not publishing sensitive information online.

According to a Kadokawa press release reported by IGN, the attack occurred on June 8th and targeted various servers in Japan, specifically focusing on services associated with Niconico, a video-sharing application owned by Kadokawa. The hack occurred just as FromSoftware released their latest DLC for Elden Ring, titled Shadow Of The Erdtree.

Damage Control

The company is currently working on implementing solutions and workarounds across its operations to restore normalcy to its systems and business activities. Kadokawa noted that all NicoNico family services remain suspended, preventing users when it comes to accessing external services using their NicoNico accounts. Services will gradually resume as they become available.

Founded as Kadokawa Shoten in April 1945, Kadokawa established FromSoftware in Tokyo, Japan, in 1986. Besides Elden Ring, which won GOTY (Game Of The Year) in 2022, FromSoftware is renowned for titles such as Bloodborne, Sekiro, and Dark Souls. Presently, it remains uncertain whether FromSoftware was affected by the incident or whether the hackers are associated with crypto.

Black Suit Claim Responsibility

While the report did not identify the attackers responsible for the breach, a group known as Black Suit has reportedly claimed credit as part of their hacktivism efforts. According to a 2023 Techcrunch report, Black Suit, previously known as Royal, had amassed over $275 million in ransom payments by that time.

According to a statement posted on the open-source ransomware tracking website RansomLook, Black Suit allegedly detailed the information it had obtained, including employee data, contracts, and project code.

The attackers described their infiltration of the Kadokawa network about a month before the ransomware was deployed, navigating complexities within multiple interconnected IT networks. Once inside the control center, they purportedly encrypted the entire network, including systems belonging to Dwango, NicoNico, Kadokawa, and other subsidiaries, while exfiltrating approximately 1.5 terabytes of data.

A crypto wallet under US government control recently transferred approximately 3,940 Bitcoin (BTC), valued at $241 million, to Coinbase, as reported by Arkham Intelligence. The wallet currently holds about $13.3 billion worth of Bitcoin. The Bitcoin in this wallet originates via the seizure of assets related to the Silk Road, an infamous dark web marketplace shut down in 2013 for trading illegal drugs, weapons, and other illicit items.

Large-Scale Transfers

Earlier this April, the government reportedly moved 30,175 BTC, roughly worth $2 billion at the time, via the same wallet to Coinbase. The transaction involved a series of transfers, starting with a small test transfer of 0.001 BTC ($65) to a Coinbase Prime deposit address. The main transfer consisted of 1,999 BTC (around $130 million), while the remaining 28,176 BTC was transferred to another government-controlled wallet, likely for planned sale.

These large-scale transactions could potentially impact Bitcoin and its current bearish trend, which has been developing over the past week. Additionally, the trustee of Mt. Gox, the now-defunct exchange, announced plans to commence a $9 billion repayment next month, with victims receiving payouts in Bitcoin and Bitcoin Cash. This could add selling pressure to the market.

Making Moves

Recently, the German government made some key decisions involving Bitcoin, transferring 400 BTC to Coinbase and Kraken, as well as another 500 BTC to an untagged address. These actions have sparked speculation within the crypto community about the management and sale strategies of the government pertaining to its Bitcoin holdings.

Following the latest transfer, Bitcoin saw a minor decline, dropping to $60,800 before rebounding to around $61,000 according to CoinGecko data. The price of Bitcoin holds significant importance for the broader crypto market as it acts as a benchmark and sentiment gauge. Being the largest and most recognized cryptocurrency, fluctuations in its price often sway investor sentiment and trading decisions across the entire crypto sphere.