Popular Meme Coin Gets Shrouded In Controversy

Hackers are increasingly targeting cryptocurrencies with more aggressive tactics. Since January, they have stolen over $1.2 billion in crypto, with many incidents linked to the DPRK. On September 3rd, the FBI issued a public service announcement warning the crypto industry about what kinds of malicious software is being used nowadays.

Warning For Android Users

McAfee, a software security firm, has detected an Android malware named SpyAgent. This malware utilizes Optical Character Recognition (OCR) to scan phone storage for images, including screenshots containing private keys. Remember, decentralized wallet providers advise against taking screenshots of your keys, instead, write them down on paper for security.

McAfee Labs notes that this malware is spread through malicious links sent via text messages. These links often lead to fake banking apps that request full access to your phone, including photos and media. If users receive a message claiming their banking app is outdated and prompting them to click a link to update, exercise caution. Clicking the link might open a website resembling an official bank website, but downloading and installing the application could expose your data to hackers.

The FBI has also warned the crypto community about highly specialized social engineering attacks. Such malware can be disguised not only as banking apps but also as government applications or games.

Malware Threats On MacOS

MacOS users might think they are immune to such threats, but that is not the case. In August, a malware called Cthulhu Stealer was discovered targeting MacOS. Like other malware, it masquerades as legitimate software. Once installed, it can steal private information, including all types of passwords and wallet credentials like MetaMask, as well as IP addresses.

In August, North Korean hackers exploited a vulnerability in Google Chrome. They created fake websites that mimicked legitimate crypto trading platforms to trick users into downloading a malicious crypto wallet or trading app.

As hackers become more focused on cryptocurrencies, these malware tactics are escalating. To protect yourself, always download applications directly via their official sources and verify website URLs. Crypto users should also avoid saving seed phrases as images or storing them on digital devices.

Telegram has updated its policy to allow users to report illegal and illicit content in private chats for moderation review, as indicated in a recent update to its frequently asked questions (FAQ) section. Toncoin ($TON) will still act as the native cryptocurrency of the TON blockchain, which was originally developed by Telegram. It is used within the ecosystem for transactions, smart contracts, and various decentralized applications (dApps).

Changing With The Times

The new policy introduces the ability for users to flag content in private chats, a shift compared to the previous stance of not moderating such conversations. This change might impact Telegram and its overall image, which has previously been linked to facilitating illegal activities such as money laundering and illicit crypto-related transactions.

The FAQ previously stated that all Telegram chats and group chats are private between their participants, and that the company does and will not process any requests related to them. The anonymity associated with Telegram made it one of the most popular messaging platforms worldwide.

A Necessary Change

The update followed Pavel Durov being arrested in France in late August. The arrest was part of a larger investigation into the messaging platform, with French authorities alleging that Telegram has been used for illegal activities.

Durov was released after four days in custody. He is under judicial supervision and faces preliminary charges that could have significant legal repercussions if he is convicted. In his first public statement on Thursday, the Telegram CEO acknowledged that the rapid expansion of the platform had made it vulnerable to misuse by criminals. He denied claims that Telegram is an anarchic paradise for illegal activities and emphasized that the platform actively works to remove harmful content.

EigenLayer has announced the second season of its airdrop, distributing 86 million EIGEN tokens to stakers, node operators, ecosystem partners, and community members. This airdrop targets those active between March 15th and August 15th, with distribution set to begin on or before September 17th, 2024.

Token Distribution

The 86 million tokens represent 5% of the total supply of 1.67 billion. Of this, 70 million tokens are allocated to stakers and operators based on their share of staked ETH, while up to 10 million tokens are reserved for AVSs and other contributors. About 6 million tokens will go to community members, who must verify their social identity by September 11th. 2024, to claim their share.

At any rate, this second season stakedrop arrives as EigenLayer has faced net outflows recently, leading to a reduction in its total value locked (TVL). The TVL has dropped to $11.5 billion after reaching an all-time high of $20.1 billion in June.

Competition Heats Up

In contrast, Symbiotic, a competitor that has not yet launched a token, has seen its TVL grow to over $1.5 billion. Additionally, the EigenLayer tokens are not tradable yet but are valued at approximately $2.7 each in pre-markets, suggesting a fully diluted valuation of $4.5 billion.

Similar trends are evident across the liquid restaking sector, with platforms like Renzo, Puffer, Kelp, and Swell also reporting significant TVL declines. This downturn might be attributed to the conclusion of airdrop campaigns related to the launch of major restaking protocol tokens, such as REZ and EIGEN.

Binance CEO Richard Teng is demanding the immediate release of executive Tigran Gambaryan due to inhumane treatment and worsening health in Nigerian detention. Gambaryan, whose condition has deteriorated since contracting malaria in May, is reportedly being denied proper medical care.

Richard was hired by Binance in 2021 to improve its worldwide compliance operations. He was anointed the new CEO after succeeding Changpeng Zhao (CZ).

Hard To Watch

A recent video shows Gambaryan in a weakened state, struggling with crutches and being ignored by guards, which Teng condemned as inhumane. The video reveals Gambaryan being in visible pain and frustration, as he claims he is being denied help despite his serious condition.

The Binance community has rallied in support, condemning the treatment and questioning the motives behind why Gambaryan is being detained, with some suggesting it might be a strategic tactic against Binance.

Bad To Worse

To make matters worse, Gambaryan has seen his health worsen significantly since his collapse in court on May 23rd. Despite a judge ordering for him to be hospitalized, reports indicate he has not received adequate care. US representatives visiting in June found him in critical condition with double pneumonia and significant weight loss, prompting calls for his immediate release.

As the Gambaryan trial resumed on September 2nd, 2024, his legal team requested bail on medical grounds, citing his need for surgery. The EFCC has opposed this request, claiming his condition is manageable. A bail hearing is scheduled for September 4th. His health and treatment remain a major concern for his family, the Binance community, and international advocates.

The fine announced on Wednesday was determined based on various restrictions imposed by Robinhood between 2018 and 2022, during which the platform did not allow users to withdraw their purchased cryptocurrencies. The company is now expected to demonstrate genuine transparency and ensure that customers have control over their cryptocurrencies.

An Ongoing Investigation

The investigation by California regulators classified the traded cryptocurrencies on Robinhood as commodities. It discovered that Robinhood Crypto allowed customers to purchase digital assets but did not provide them with custody, violating state regulations.

Attorney General Rob Bonta stated that the ongoing investigation and resolution with Robinhood should convey a clear message, which is that whether anyone operates a physical store or a cryptocurrency business, compliance with local consumer and investor protection laws is absolutely mandatory.

Revising Crypto Practices

Despite Robinhood Crypto lifting the withdrawal ban last year, the company is now held accountable for past actions. As part of the settlement, Robinhood must ensure that customers can withdraw their cryptocurrencies and update its information regarding asset custody.

Robinhood has also disclosed receiving subpoenas by the California Attorney General related to its business practices, trading operations, and asset custody. The settlement includes an independent review by the SEC to examine possible breaches of federal securities laws, without Robinhood admitting to any wrongdoing.

World Liberty Financial has had connections with the Trump family and has reportedly received their endorsement, although recent developments suggest a shift in this relationship. Recent incidents involved hackers posting blockchain addresses and asserting that the token was part of a crypto project associated with the Trump family.

Hackers Prevail

Specifically, Lara Trump claims her account was compromised after it disseminated a message claiming that the governance token of the project on the Solana blockchain would support their DeFi lending protocol. These posts were later identified as fraudulent and removed.

Eric Trump subsequently confirmed on X that both profiles had been hacked and advised followers to avoid interacting with the scam addresses. In response, World Liberty Financial released a statement urging people to disregard any links or transactions regarding the compromised accounts.

Another Fraud

This episode marks at least the third instance where a cryptocurrency token, seemingly connected to the Trump family and their crypto project, has surfaced. Previous examples include the contentious DJT token and the Restore the Republic token, which experienced a brief surge in value before collapsing.

For several weeks, the Trump family has been promoting World Liberty Financial, with speculation suggesting that the project will be hosted on the Ethereum (ETH) blockchain alongside Aave and their decentralized finance platform. The anticipated Trump family crypto project is expected to feature a credit account system with a token named WLFI.

Pro-crypto attorney John Deaton has clinched the Republican nomination for the United States Senate in Massachusetts, setting up a match against Democratic Senator Elizabeth Warren in November. A former Marine and vocal supporter of Ripple (XRP), Deaton triumphed over two other Republican contenders, industrial engineer Bob Antonellis and Quincy city council president Ian Cain, to secure the nomination.

Challenging Elizabeth Warren

As of a September 4th report by the Associated Press, Deaton has garnered 64% of the vote, with just over 43% of votes counted in Massachusetts. Deaton is poised to challenge Warren in the November election. Warren, who has previously won Senate seats twice, faced strong competition in 2012 but defeated Republican incumbent Scott Brown and earned over 60% of the vote in 2018. Seeking a third term, Warren is running unopposed for the Democratic nomination.

A pro-banking Senator, Warren, who serves on the Senate Banking, Housing, and Urban Affairs Committee, has targeted the crypto industry in recent years, accusing the technology of various issues including terrorism, espionage, malware, and drug trafficking. She has proposed several significant bills aimed at restricting digital asset development in the U.S.

Notable Support

Although Deaton did not specifically address crypto during his victory speech, his campaign received notable support via figures in the crypto sector, such as the Winklevoss twins and Ripple executives. The Commonwealth Unity Fund, a crypto-focused political action committee (PAC), contributed over $1 million in Massachusetts to back Deaton.

Furthermore, major donors to his campaign include Ripple executives Chris Larsen and Brad Garlinghouse, Gemini founders Cameron and Tyler Winklevoss, SkyBridge Capital founder Anthony Scaramucci, Cardano co-founder Charles Hoskinson, and Kraken co-founder Jesse Powell.

As of July 31st, Federal Election Commission records show that Deaton had raised approximately $1.7 million for his Senate campaign. In April, Deaton submitted an amicus brief supporting 4,701 Coinbase customers in their legal battle with the United States Securities and Exchange Commission.

WazirX, one of the most popular crypto exchanges worldwide, was hacked earlier this year. According to PeckShield, a renowned security firm, the perpetrators of this major hack have reportedly moved a staggering 2,600 ETH, worth approximately $6.5 million, to Tornado Cash, a cryptocurrency mixer that is currently sanctioned by the United States. This move aims to obscure the trail of stolen funds, making it significantly harder for law enforcement to trace and recover the assets.

A Complicated Process

Mixers like Tornado Cash are frequently utilized by cybercriminals as a method to complicate the process of tracking stolen cryptocurrency. By obscuring the origins and destinations of the funds, these mixers effectively muddy the waters, presenting additional challenges for those trying to reclaim the stolen assets.

The attack on WazirX, which was originally confirmed on July 18th, 2024, targeted the multi-signature wallet of the exchange, resulting in a staggering financial loss exceeding $230 million. The breach has had severe repercussions for the platform, disrupting its ability to maintain balanced collateral against its assets. As a result, withdrawals have been frozen, and trading has been suspended since July 21st while the WazirX team focuses on recovery efforts.

Bad To Worse

Unfortunately, this situation means that users may face substantial losses. The ongoing restructuring process could lead to users not receiving the full value of their cryptocurrency held on the platform at the time of the attack. The extent of these losses is still unfolding, as the exchange works to stabilize its operations and manage the fallout due to this significant breach.

Compounding the gravity of this incident is the suspicion that it may have been orchestrated by the Lazarus Group, a notorious hacking organization linked to North Korea. Known for its high-profile and devastating cyber exploits, including a $600 million theft via the Ronin sidechain in 2022, the Lazarus Group being involved would signal a new level of sophistication and menace in the world of cybercrime.

September could very well be pivotal for the cryptocurrency market with significant events like presidential debates and Federal Reserve decisions scheduled. Historically, September has been challenging for cryptocurrencies. In September 2023, Bitcoin (BTC) dropped to between $26,000 and $27,000. The same trend occurred in 2022, when the flagship crypto fell to $18,000 and fluctuated around $22,000 during a market decline.

Upcoming Key Events

Notably, after reaching its peak in 2021, Bitcoin also decreased to a range of $41,000 to $48,000 in September. This year, several forthcoming events could influence the broader crypto market. The Bureau of Labor Statistics is set to release a jobs report on September 6th, which could impact the crypto market. Previous reports have shown the potential to move crypto prices, as evidenced by the decline in Bitcoin and Ethereum (ETH) following the August report.

Additionally, a presidential debate between Vice President Kamala Harris and former President Donald Trump is scheduled for September 10th. This event might influence the crypto industry given the differing cryptocurrency policies of the candidates, with Trump advocating heavily for Bitcoin and claiming he will fire Gary Gensler if re-elected.

Interest Rate Decision Looms

Another significant development is the Federal Reserve finally making a decision about the interest rates, which is expected on September 18th. The market anticipates a rate cut of 25 to 50 basis points. Brian Dixon, CEO of OTC Capital, noted that while 67.5% of market participants foresee a 25 basis point cut, a larger reduction could have a negative impact on the market.

Furthermore, the introduction of euro-backed stablecoins, such as EURI and EURC, is on the horizon in Europe. Considering past volatility, September could prove to be a crucial month for the cryptocurrency sector, though the exact market response will become clear only after evaluating the outcomes of these significant events.

Cardano (ADA) has recently implemented the Chang hard fork update, marking a significant advancement in its governance structure. This upgrade signifies a major shift towards decentralized decision-making, allowing ADA token holders to actively participate in voting on proposals and selecting governance representatives.

The update comes shortly after Cardano founder Charles Hoskinson discussed several major updates during Rare Evo 2024, where he talked about focusing on advancements in technology, governance, and global outreach.

Enter Voltaire

The development heralds the beginning of the Voltaire era, a new phase aimed at enhancing governance for Cardano. The upgrade also introduces CIP-1694, a key improvement that transfers governance control and gives it to community-led organizations.

These include the Constitutional Committee, Delegate Representatives, and Stake Pool Operators, which are all designed to ensure a more democratic and decentralized approach. By doing so, Cardano aligns itself more closely with the broader decentralized ethos of the blockchain industry and increases the utility of the ADA token.

Governance Overhaul

Cardano, launched in 2017 by Input Output Hong Kong (IOHK), is known for its research-driven approach and commitment to security and scalability. Its ADA token, named after Ada Lovelace, the 19th-century mathematician, serves as the native cryptocurrency for the platform and is used for transactions, staking, and governance.

The Chang hard fork is the initial phase of this governance overhaul, with the full implementation of governance powers expected within the next 90 days. This positions Cardano as a leader in on-chain governance, setting a new standard for blockchain networks in terms of community involvement and decentralized control.

Bitcoin (BTC) miners experienced their lowest revenue month since September 2023 in August, due to a decrease in the number of coins mined. Last month, their revenue reached $827.56 million, a decline of over 10.5% compared to$927.35 million in July, but an increase of 5% relative to August 2023, according to Bitbo data.

Meanwhile, concerns are rising within the crypto community about the increasing centralization of Bitcoin, which some fear could undermine the fundamental principles of the flagship cryptocurrency. Recent data by BTC.com shows that two mining pools, Foundry USA and AntPool, now control about 57% of the total Bitcoin Network hashrate.

A Substantial Drop

The August figures represent a 57% drop compared to the peak experienced this past March where they were just under $1.93 billion, coinciding with Bitcoin experiencing an all-time high of over $73,500 on March 13th. This is the lowest revenue month for Bitcoin miners since September 2023 when they earned $727.79 million while Bitcoin was priced around $25,000.

Monthly revenues for Bitcoin miners have been on the decline throughout 2024 after reaching a peak in March. The number of BTC mined also saw a slight decrease, falling to 13,843 BTC last month compared to 14,725 BTC in July.

The Main Reason

The decline in revenue is attributed to decreased transaction volumes and increased mining difficulty, which was exacerbated by the Bitcoin halving in April that reduced rewards by 50% to 3.125 BTC. In August, median fees accounted for 2% of a block reward, and the 30-day average of daily confirmed transactions reached a year-to-date high of nearly 631,648 on July 31st before falling to 594,871 by August 31st.

According to Bitbo and Blockchain.com data, mining difficulty also continued to rise, reaching an all-time high of 89.47 trillion in August compared to 86.87 trillion in July. As a result of increased difficulty and lower profitability, some miners have shifted their computing power to artificial intelligence (AI) projects, with some agreements generating billions of dollars.

IDA raised $6M in Seed funding with assistance by Hashed Fund. IDA is a digital asset technology company to spearhead the widespread adoption of blockchain finance and empower businesses to integrate between Web2 and Web3.

Kredete secured $2.25M in Seed funding with support by Blockchain Founders Fund. Kredete is a financial platform focused on empowering African immigrants by enabling them to build credit and send money home with low fees.

Adot raised an undisclosed amount in Strategic funding with help by Aptos Foundation. Adot is a decentralized search network for the AI Internet, enhancing Web3 content search and empowering developers to create personalized search features. Its goal is to surpass traditional search engines, making high-quality data openly accessible.

Odos secured an undisclosed amount in Series A funding with support by PAKA. Odos is a cutting-edge platform that caters to both institutional and retail traders, empowering them with a competitive edge in swaps. 

Verofax secured $3M in undisclosed funding with support by Plug and Play Tech Center. Verofax leverages advanced Web3 technologies, such as AR, AI, and blockchain to enhance marketing experiences for tourists, shoppers, and brands.

Bridge raised a whopping $58M in undisclosed funding with assistance by Sequoia Capital. Bridge is building a stablecoin-powered money movement platform, offering services such as payouts, cross-border payments and exchanging foreign currencies.

Mereo. secured an undisclosed amount in Strategic funding with support by Aptos Foundation. Mereo is a platform designed to enhance fan engagement by rewarding fans for their interactions and reputation. It allows users to create dynamic tickets that evolve based on fan actions, facilitating event creation, ticket sales, and attendee management.

Edge Matrix Chain (EMC) raised $20M in undisclosed funding with help by P2 Ventures. EMC is a blockchain and P2P (Peer-to-Peer) network-based edge computing protocol that encompasses features such as smart contracts.

Quai Network obtained $5M in Strategic funding with assitance by MH Ventures. Quai Network is designed to create radically more efficient blockchains. Since Quai Network is modular, it can scale horizontally to accommodate more users as the network grows.

Bware Labs raised an undisclosed amount with support by Alchemy. Bware Labs aims to tackle Web3 challenges and boost global adoption by offering high performance and reliable infrastructure services and development tools. The ultimate goal is to create a development and infrastructure ecosystem that can support builders throughout their entire Web3 journey.