Crypto News Headlines (20-Sep-2022)

A name on the Interpol’s wanted list and a Korean police alert for Terra co-founder Do Kwon’s whereabouts are unlikely to cause havoc to the broader crypto markets, two markets observers told CoinDesk on Tuesday.

Kwon’s arrest warrant puts pressure on an already intensive regulatory debate about market conduct, consumer protection, and financial stability risks associated with crypto markets. Kwon’s current location is unknown and the Singapore Police Force confirmed to the press that Kwon was no longer in the city-state, where he resided until at least May.

In the weeks following Terra’s implosion in May, prices of its LUNA and UST tokens dropped over 99.7%. At the same time, decentralized finance applications built on the network lost some $28 billion in market value – making the entire ordeal one of the single-largest capital destructive event in the history of cryptocurrencies.

The U.S. Securities and Exchange Commission (SEC) announced Monday that it has issued a cease-and-desist order against Sparkster Ltd. and its CEO, Sajjad Daya, “for the unregistered offer and sale of crypto asset securities from April 2018 through July 2018.”

The SEC explained that “by offering and selling crypto asset securities called SPRK tokens” to raise money to develop Sparkster’s software platform:

Sparkster and Daya raised $30 million from 4,000 investors in the United States and abroad.

They told investors that SPRK tokens would increase in value, promising to make the tokens available on a crypto trading platform.

In a settlement with the SEC, Sparkster agreed to destroy its remaining crypto tokens, request the removal of its tokens from trading platforms, and publish the SEC’s order on its website and social media channels. Daya agreed to refrain from participating in crypto asset securities offerings for five years.

Algorithmic market maker service Wintermute suffered a security breach on Tuesday, with hackers making off with around $160 million across 90 assets within the platform’s portfolio.

In a brief statement published on Twitter, Wintermute founder and CEO Evgeny Gaevoy stated that “we’ve been hacked for about $160M in our defi operations. Cefi and OTC operations are not affected.”

While around $160 million has been appropriated by the hacker, Gaevoy noted that “out of 90 assets that has been hacked only two have been for notional over $1 million (and none more than $2.5M),” and that as a result there shouldn’t be a “major selloff” of assets.

Gaevoy assured users, lenders and partners of the platform that they are “solvent with twice over that amount in equity left”, so all associated entities should expect a full restoration of operations within the coming days.

Research firm Blockdata has put out its analysis regarding the investments in blockchain and crypto startups by top corporations between September 2021 and mid-June 2022.

The South Korean electronics giant Samsung was the most active as it invested in 13 companies. The individual share invested by each corporation couldn’t be defined. Overall, 40 companies invested approximately $6 billion into blockchain startups during this tenure.

Blockdata determined that 19 of the companies were receiving funding in some form of non-fungible token (NFT) solutions and services. Further, the funding gathered was from twelve marketplaces, and eleven gaming service providers.

The post Samsung Invests In 13 Blockchain And Crypto Startups From 2021-22 appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

A new bill demanding a congressional notification prior to payments of the United States Department of State (DOS) rewards using cryptocurrencies surfaced as the U.S. Congress raised concerns about the evasion of sanctions.

The Rewards for Justice Program, a counterterrorism rewards program run by the Secretary of State, offers rewards for information that prevents international terrorism. Citing examples of Russia and Belarus as previously sanctioned regimes that have used cryptocurrencies to circumvent sanctions, the bill H. R. 7338 demands that:

“The Secretary of State shall notify the appropriate congressional committees not later than 15 days before paying out a reward in cryptocurrency.”.

Amid all the hype surrounding last week’s major Ethereum overhaul known as the Merge, investors remained cautious on the blockchain’s native token ETH – and their caution was vindicated as the cryptocurrency tumbled following the event.

Investment products tied to ETH saw a fourth straight week of outflows in the period ended Sept. 16, with the amount removed exceeding new money added by $15.4 million, according to CoinShares. This was not an across-the-board trend in crypto. Funds that invest in ETH’s bigger rival, bitcoin (BTC), broke a five-week streak of outflows as investors added a net $17.4 million.

ETH’s price has fallen significantly since the Merge – which has been heralded as an event that could lure more large investors to the ecosystem – even though the perilous upgrade went smoothly. About five days before the transition took place on Sept. 15, ETH approached $1,800. It sank below $1,300 today.

The Better Business Bureau (BBB) warned of cryptocurrency scams on the popular video-hosting platform Tiktok Friday. Founded in 1912, the BBB is a private, nonprofit organization that empowered people to find businesses, brands, and charities they can trust for over 110 years.

The BBB explained that “as Tiktok’s popularity grows, so do the con artists.” Noting that it is seeing many new reports from its “Scam Tracker related to this money-flipping scam,” the BBB described:

You are scrolling through Tiktok when you come across a video showing a pile of cash. The creator says they earned the stack of money in just a few days by investing in cryptocurrency.

Scammers on Tiktok may promise “to turn a few hundred dollars’ worth of cryptocurrency into thousands in no time at all,” the BBB detailed, adding that they may even “have a 100% guarantee that they can triple your money in less than a week.”

El Salvador’s bitcoin-embracing leader, President Nayib Bukele, recently revealed that he plans to serve another five-year term even though the country’s constitution bars presidents from serving consecutive terms. The announcement by Bukele, who reportedly enjoys high approval ratings, has been slammed by opponents and critics who accuse him of undermining the country’s democratic institutions.

According to an Al Jazeera report, the 41-year-old leader made the announcement while delivering a speech about El Salvador’s independence. In the speech, Bukele said his plan to serve consecutive terms was justified because this practice is also common in developed countries.

“I’m announcing to the Salvadoran people that I’ve decided to run as a candidate for president of the republic. Developed countries have re-election. And thanks to the new configuration of the democratic institution of our country, now El Salvador will too,” Bukele reportedly said.

Binance, the world’s largest blockchain ecosystem, announced over the weekend that it has partnered with the Philippine-based Cybercrime Investigation and Coordination Center (CICC) under the Department of Information and Communications Technology (DICT).

The partnership will see Binance share its insights and experiences in preventing cybercrime using blockchain forensics with the various law enforcement agencies.

In a seminar designed by Binance and headed by the exchange’s Asia Pacific Head of Intelligence and Investigations, Jarek Jacubcek, Binance highlighted the numerous ways it would help authorities in cybercrime prosecution and blockchain forensics.

Jacubcek covered the technical aspects of interactions with and between exchanges, cryptocurrency tracing, common cybercrime activities, investigative techniques, prosecution of financial crimes, and forensics report development using open-source intelligence tools.

The official Twitter account of India-based crypto exchange CoinDCX has been hacked and used by the exploiters to post fake Ripple (XRP) promos partnered with phishing links in an attempt to scam the exchange’s followers.

Responding to the attack, the official customer support handle of CoinDCX flagged the exploit and warned its users not to click any links or messages coming from the compromised account. According to the exchange, they are working to recover the account and will be sharing updates with their followers very soon.

At the time of writing, the hackers have been retweeting the official posts of Ripple Labs CEO Brad Garlinghouse to make their scam look legitimate. While doing that, the scammers reply to crypto tweets with scam links.