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Twitters hack and why Decentralization is important

Twitter accounts of leading businesses and high-profile individuals were compromised this week. In one of the most complex breaches on the platform, there are opinions pointing out to the vulnerability of the system to let this mishap happen. The scam has already swindled about $120,000 which could have been far worse given the scale of the scam.

Twitter, in a statement, said that the attack took place because an unknown person either tricked or forced an employee to provide access to Internal Twitter admin tools. The first notable signs of unauthorized intrusion came around 3 PM EST when Binance tweeted a message about its partnership with “CryptoForHealth” with a link asking people to give back 5000 bitcoin to the community. A few minutes after that tweets on the same line were fired from Joe Biden, Amazon CEO Jeff Bezos, President Barack Obama, Tesla CEO Elon Musk, former New York Mayor Michael Bloomberg and investment mogul Warren Buffet

Twitter detected a coordinated social engineering attack by people who first targeted Twitter employees and accessed internal systems. They captured the access to take control of prolific accounts and tweeted on their behalf. Twitter is further investigating any other malicious activity or information the hackers might have got their hands on. Mid-level employees having access to site-wide admin tools increases the possibility of tools falling in the wrong hands indicating vulnerability in Twitter’s systems.

This has exposed some serious concern about Twitter’s centralized system unifying users under a platform that is not transparent. The scam in itself was common but the fact that hackers were able to use important official accounts is a bit bizarre and has made gullible people more likely to fall victim. Bitcoin is not to be really blamed for the attack but the few people against Bitcoin have already started to blame the Cryptocurrency. Mainstream media have expressed their concern about Bitcoin and its history of exposure to fraudsters. The Crypto industry has asked one simple question – Why ask for Bitcoin? 

Bitcoin has once again proved to be the currency of value and cannot be blamed in the hack.

One part of Bitcoin worth lauding is that it is not controlled by any central authority. Users do not have to trust any single organization to protect their money. Along with this the stolen funds are not being retraced back, something which could not have been done through physical cash.

Do note when exchanges like Coinbase and Gemini were hacked, its decentralized exchange system triggered them to put the hacker’s digital wallet addresses on a blocklist when they became aware of the scam. Industry players point out a fundamental issue with Twitter and other such centralized systems. This makes an argument for decentralized systems like Bitcoin because blockchain systems are intrinsically secure. Its decentralized nature as well as the cryptographic algorithm makes it immune to attack.

How this happened is unknown but with a centralized system with a point of contact exists, hackers can easily access the contact and try to penetrate into the system which is why Twitter appears so easily breakable.

There are a few notable decentralized social media platforms, however nothing comes close to competing with the likes of Twitter.

Lets hope Twitter takes into consideration a more decentralized approach in the next upgrade. Over to you Jack and team!

Image Source – KAP Digital

Three Bulgarians arrested over crypto theft worth $ 5 Million

Gendarmerie forces, a policing wing of the Bulgarian judiciary, have arrested three suspects alleged to have been involved in stealing $5 million in cryptocurrency. The 3 were arrested on Monday, November 26 with the help of Bulgarian specialized prosecutors. They are alleged to have hacked into digital coin wallets through ‘sim swapping.’
The police were able to confiscate and seize cryptocurrency worth close to $3 Million. They also recovered equipment used during the hacking including computers, flash drives and a hardware portfolio for storage of crypto data. Authorities also recovered notes onto which the details outlining different crypto accounts had been written. They also found notebooks listing accounts of people, real and fictitious, used in the scam.

Advanced computer hacks

Apart from the notebooks, the prosecutors also confiscated a car that was allegedly purchased with stolen funds and worth about 60,000 in Bulgarian Lev (BGN) which translates to around $35,000. According to the prosecutors, the suspects implemented new hacking methods and performed advanced computer skills in the scam. The criminals also used specialized software for the hacking scheme.
Previously, California-based law enforcement group REACT Task Force reported that “SIM swapping” has become one of its “highest priorities” in a bid to fight cryptocurrency fraud. The prosecutors reportedly launched the investigation five months ago, shortly after being informed about the first case of the alleged scam. The suspects are currently imprisoned by order of a local specialized court.
Three Bulgarians were arrested and charged over the theft of cryptocurrencies worth about $5 million, the interior ministry and prosecutors’ office and said on Monday. According to the prosecutors, the suspects were well versed in cryptocurrency trading. Their methods were said to have been innovative, going ahead to use specialized software in the theft.

Cryptocurrency thefts on the rise

The arrests come in the wake of increased cryptocurrency theft in the country. Just last week, authorities in the state of California arrested a 21-year old man from New York for the alleged theft of $1 million in crypto in a “SIM-swapping” scheme. The hacking method involves the stealing of a cell phone number in order to hijack online financial and social media accounts.
According to a report from U.S.-based cyber security firm Cipher Trace released last month, theft of cryptocurrencies through hacking of exchanges and trading platforms soared to $927 million in the first nine months of the year, up nearly 250 percent from the level seen in 2017.

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Interested in other cool crypto content? Check out Weekly Cryptocurrency markets analysis: November 19 to November 25 and Hardware Wallet Review: Trezor Model T vs Nano Ledger S

The Raven’s Dispatch – July 13, 2018 – $25 million stolen from Decentralized Exchange, Bancor

$25 million stolen from Decentralized Exchange Bancor

Hack Hacking Haxxors

Another day, another hack. It seems like no exchange is safe out there, not even the decentralized type. If you recall DEX Exchanges were supposed to offer greater security due to their decentralized set up. Guess the jury is still out on this one. Whatever your stance so many hackings have taken place it makes you wonder if these exchanges are doing too little to tighten security. Bancor was hacked, again, for $13 million after one of the their upgrade wallets was compromised. The vast majority stolen was Ethereum.

After raising $150 million in their ICO, you would think Bancor would have invested some of that in their security procedures. Read more about it below. Let’s get this dispatch rocking! (I’m trying new lead-ins, ok. Cut me some slack)

The top 5 looks like it’s locked in for the near future. The overall cryptocurrency market dropped week to week from $267bln to $249bln representing a 6% decrease in the past seven days. No drastic moves or bart patters this week even with the Bancor hacking news AND the mining hack. It’s been a rather poor week in the news cycle for our beloved crypto.

Livecoinwatch.com Raven's Dispatch

Bitcoin (BTC): BTC struggled this week and nestled into the $6,200 support, for the time being. 2018 sucks y’all. This represents a drop of 4%, not bad considering the swings many crypto enthusiasts  are accustomed to.

Ethereum (ETH): It’s getting boring watching ETH do what BTC does. Week to week ETH sank 6% $439 as of this post. Ethereum continues to be the poster boy for a gre place to develop DAPPs but other chains and projects are catching up. With Caspers successful release to update Herrumbres economic consensus protocol, things seem pretty hum-drum here.

DASH (DASH): Dashcoin cryptocurrency was created on 18 January 2014 by its developer Evan Duffield and was originally released as XCoin (XCO).  In February of the same year (2014), the name was changed to “Darkcoin.” Moreover, on 25 March 2015, Darkcoin was rebranded as simply “Dash”. Quite the saga, huh?

As it stands, Dash users can now opt for full privacy in their transactions and remain completely anonymous, thanks to Evan Duffield. Dash has three main features: speed of transactions, masternodes and private send. As you can see in 2017 DASH reached all time hish peaking at $1,600 per DASH but like the entire crypto market has retraced to $226 as of this post. Can you imagine how much the Masternode owners must have raked in during that run? Well played to those that got in early and believed in the project.

If you want to know more about DASH check out our guide!

Dashcoin Lifetime

WHAT’S NEW AT CRYPTO IS COMING

Win a FREE copy of ‘An Altcoin Traders Handbook’ – We are giving away 3 copies of Nik’s popular book  ‘An Altcoin Traders Handbook‘. How do you enter to win? Sign up for our newsletter and we will select three winner on Monday, July 16th, 2018. Do it!

Etherpoly.io is launching a new decentralized Ethereum game – Etherpoly.io (OLY) is a new decentralized game in which users can interact by acquiring, improving and trading virtual cities.  It is a new decentralized game in which users can interact by acquiring, improving and trading virtual cities. Read on for more details!

Sleeping Giants of Crypto – While the January crash wiped a huge chunk of market cap off the map with aftershocks rippling through the marketplace ever since, there are a number of projects that have weathered the storm well and continue to show promise for the future. Is your favorite project on the list?

What Are Exchange Tokens? – A recent trend in the crypto space has seen exchanges listing their own custom cryptocurrency tokens, generally offering a trade fee discount when the tokens are used. Binance is often credited with kickstarting the trend into mainstream use with the highly successful BNB token, and other exchanges have followed suit. So how do all these tokens measure up, and what do they do exactly?

New Github Repository Catalogs Physical Bitcoin Attacks – Cryptocurrency hacks have always been a thorn in the side of crypto enthusiasts. It seems like we can’t go a few months without a major theft taking place.  Jameson Lopp, created an open source repository to catalog and list all known physical bitcoin attacks/thefts. Check it out, it’s fascinating stuff. And a lesson. Because if anything we here at Crypto is Coming want to share teachable mome….lol I can’t finish that.

Vitalik Buterin Says Centralized Exchanges Can Burn In Hell – Sassy. We love it. Outspoken Ethereum co-founder, Vitalik Buterin, has hit out at centralized exchanges, saying that he hopes they “burn in hell as much as possible” while speaking to John Evans of TechCrunch. He has mirrored the opinions of divisive self-proclaimed voice of cryptocurrency, John McAfee.

Check our Crypto Swag store on Teespring – We’ve got new designs, Go, consume, support Crypto is Coming. Kisses

Visualizing the ICO Explosion – The ICO market exploded in 2017. We saw Billions of dollars pour into crypto through this new crowdsourcing vehicle. Take a look at the infographics below from the crew at howmuch.net.

Litecoin Foundation and TokenPay buy stake in WEG Bank AG – Litecoin founder, Charlie Lee, announced via twitter this morning that the Litecoin Foundation and Token Pay have entered into a partnership to buy a stake in German bank, WEG Bank AG. IN acquiring this stake, they hope to work on consumer driven cryptocurrency solutions for Litecoin and other cryptos.

Opera Launching A Browser With Built-In Crypto Wallet Functionality – Opera has announced that it is launching a new Android based browser that will incorporate a cryptocurrency wallet directly in the software. The browser will support the Ethereum Web3 API, and this function means that users will no longer have to open a separate browser to send and receive payments or check their crypto balance.

What Happens When The Bitcoin Reaches 21 Million And Mining Reward Runs Out? – Bitcoin transactions can only be verified by mining, a process in which powerful computers solve complex algorithms in order to add new blocks of verified transactions to the blockchain. What happens when there is no more reward? Check out our latest piece from Conor.

From Nick Szabo to Naval: The best crypto twitter threads of the week – We all know Cryptocurrencies are at the forefront of innovation in finance and tech. But the people involved in crypto are also leading the way, fighting in the intellectual battle ground that is crypto twitter to see which ideas gain strength and which die off.

CRYPTOCURRENCY NEWS FROM AROUND THE INTERNET

Another hack rocks cryptocurrency trading: Bancor loses $13.5 million – The alleged hack has raised questions over the validity of the start-up’s “decentralized” system. This week, the start-up said that a wallet being used to “upgrade” smart contracts was compromised. This wallet was then used to withdraw $12.5 million in Ethereum (ETH), alongside $1 million in Pundi X (NPXS) and $10 million in Bancor Network Tokens (BNT).

Binance to Record $1 Billion Profit in 2018, Surpassing Major Banks – The cryptocurrency market has dropped by over 70% since the start of the year, but the world’s largest crypto exchange is still expected to rake in a hefty profit.

Ledger launches Ledger Live, the all-in-one companion app to your Ledger device – Ledger Live is a new all-in-one companion application for your Ledger device that runs on Windows, Mac and Linux. We’ve built Ledger Live from the ground-up to deliver a feature-packed, yet user-friendly experience for both power users and newbies.

Bank of Korea Says Cryptocurrency Poses Little Risk to Domestic Market – The Bank of Korea (BOK) recently announced that cryptocurrencies pose little risk to South Korea’s domestic market, Cointelegraph reported. The analysis comes in the wake of the institution’s publication of a report covering the influence of virtual currencies in the country’s financial industry.

Malta is Creating a Decentralized Bank with the Help of Binance – Binance is seeking to use Malta as the base for a new bank that will be owned entirely by cryptocurrency investors–the world’s “first decentralized, completely community-owned bank,” according to a Bloomberg report.

Robinhood Adds Bitcoin Cash & Litecoin Trading, Will Support Crypto Transfers – All aboard! Rapidly-expanding fintech unicorn Robinhood has added bitcoin cash and litecoin to the growing stable of cryptocurrencies that users can trade on the popular stock trading app.

100 Merchants Invited to Risk-Free Trial of Lightning Network – Did we ever mention we love of chain solutions? A few lucky merchants now have one less obstacle to accepting bitcoin payments via the Lightning Network.

Crypto is not a Bubble, Says Bernstein Analyst – Bitcoin is not a classic bubble, but still be ‘suspicious,’ says investing expert William Bernstein. Thanks the for advice, Will.

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