| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | Hacked at his own party? Mask Network founder loses $4M | | Key points: | Mask Network founder Suji Yan's account was hacked, leading to a $4 million crypto theft, with stolen funds quickly converted to ETH and distributed across multiple wallets. Yan suspects the attack may have occurred at his birthday party, raising concerns about potential offline breaches and security vulnerabilities in the Web3 space.
| News - The crypto community was rocked by yet another high-profile hack as Mask Network founder Suji Yan fell victim to a security breach, resulting in a $4 million loss in digital assets. The hack was initially flagged by Web3 security firm Cyvers Alerts, which detected suspicious outflows from an address linked to Yan. | According to reports, the compromised wallet saw 113 ETH, 923 WETH, 301 ezETH, 156 weETH, 90 pufET, 48,400 MASK, 50,000 USDT, and 15 swETH transferred to a suspicious address. The stolen funds were immediately swapped into Ethereum before being distributed across six separate wallets, a maneuver likely aimed at laundering the assets and complicating tracking efforts. | Meir Dolev, co-founder and CTO at Cyvers, highlighted the sophistication of the attack, emphasizing the growing need for real-time transaction monitoring and proactive security measures within the Web3 space. | Was it an offline attack? - Yan personally confirmed the hack on social media, revealing that the breach likely took place during his birthday party. He raised concerns that his private keys may have been compromised while his phone was briefly unattended, stating: | "6 hours ago, I turned 29. About 3 hours ago, $4 million was stolen from one of my public wallets. All of the stolen transactions appear to have been manually transferred and lasted for more than 11 minutes. So, either my private keys were compromised on my birthday and the hacker manually moved the funds, or this could have been an offline attack. I was at a private party with a dozen friends and my phone was away from me for a few minutes, like when I went to the bathroom. I trusted my friends, but this situation is a nightmare for anyone. I have contacted @SlowMist_Team and @zachxbt to assist with their investigation, and am working with the appropriate agencies and law enforcement. I will not comment further until these experts have reached their conclusions. If this is really an offline attack - I hope you can face me. The crypto world should not become a dark forest, and I will not let it become that." | Yan expressed disbelief, adding that he trusted the close group of individuals present at his gathering. However, the nature of the attack raises questions about emerging threats beyond traditional phishing scams and malware-based exploits. | Crypto hacks on the rise - This latest breach adds to a worrying trend of high-profile crypto thefts in early 2025. Just last week, the notorious Lazarus Group orchestrated the largest crypto hack in history, targeting Bybit in a $1.4 billion exploit. Similarly, Pump.fun's social media hack on February 26 further illustrated how attackers are evolving their techniques to exploit Web3 platforms. | The growing sophistication of these attacks underscores a pressing need for advanced security solutions, including multi-signature authentication and hardware wallet best practices. As investigations into the Mask Network breach continue, the incident serves as a stark reminder that even industry leaders are not immune to targeted cyber threats. | Pump.fun hack sparks security concerns amid memecoin scrutiny | | Key points: | Pump.fun's X account was hacked, with attackers promoting a fake governance token, raising security concerns in the memecoin sector. Regulatory pressure mounts on memecoins, with lawmakers proposing new legislation to prevent political figures from profiting from digital assets.
| News - Hackers infiltrated the X (formerly Twitter) account of memecoin launchpad Pump.fun on February 26, using it to promote a fraudulent governance token. While the platform has since regained control, the incident has intensified concerns about security vulnerabilities in the rapidly evolving memecoin sector. Blockchain investigator ZachXBT traced the hackers to past incidents involving Jupiter DAO and DogWifCoin, highlighting an alarming pattern of targeted social media exploits. | Memecoins in the crosshairs of cybercriminals - Pump.fun's security breach underscores the rising frequency of phishing and social engineering attacks in crypto. The hackers attempted to lure users with a fake token announcement, claiming, "Democracy has never been this degen." ZachXBT quickly flagged the post, warning followers to avoid interacting with any links. | Pump.fun issued a statement confirming that no internal staff errors led to the compromise, citing adherence to industry security best practices, including physical 2FA backups and complex password protocols. However, no notifications regarding changes to authentication settings were received before the breach, raising concerns about potential exploits in X's account security measures. | Regulatory clampdown on memecoins gains momentum - The hack arrives amid mounting scrutiny on memecoins from regulators and lawmakers. On February 20, the U.S. Securities and Exchange Commission (SEC) announced a new cyber fraud task force, aiming to tackle illicit activities in digital assets. Meanwhile, California Representative Sam Liccardo is preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act, which would ban public officials from endorsing or profiting from memecoins. | Liccardo stated that public office should not be used for personal financial gain , directly referencing Donald Trump's TRUMP token and Melania Trump's memecoin, which have suffered massive price crashes since launch. | What's next? - Memecoins remain highly speculative assets, attracting both opportunistic traders and regulatory scrutiny. Despite recent losses, the market still boasts a $64.2 billion valuation, with seven of the top ten memecoins posting gains in the past 24 hours. | However, the Pump.fun hack, combined with growing concerns over insider trading and political endorsements, may drive stricter oversight in the coming months. Whether this will protect investors or stifle innovation in the memecoin space remains to be seen. | Bybit's UAE approval overshadowed by $1.4B crypto heist | | Key points: | Bybit received in-principle approval from the UAE's Securities and Commodities Authority just days before a $1.4 billion hack hit the exchange. The FBI has confirmed that North Korea's Lazarus Group was behind the attack, making it one of the largest crypto heists in history.
| News - Troubled crypto exchange Bybit has received in-principle approval from the United Arab Emirates (UAE) Securities and Commodities Authority (SCA) to operate as a virtual asset platform operator. This milestone marks a key step toward securing a full operational license, which would allow Bybit to offer a broad range of crypto services to both retail and institutional investors in the UAE. | The approval, granted on February 18, came just days before Bybit suffered a staggering $1.4 billion hack, making it one of the largest publicly disclosed crypto heists in history. The breach occurred on February 21 during a routine transfer between Bybit's cold and hot wallets, with hackers managing to exploit security weaknesses to gain access to the exchange's Ethereum holdings. | Bybit's co-founder and CEO, Ben Zhou, remains optimistic about the firm's UAE expansion. "This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions," Zhou stated. However, the massive security breach has cast doubt on Bybit's ability to safeguard user funds, potentially complicating its regulatory progress. | Bybit's global expansion amid security woes - Bybit's regulatory efforts are not limited to the UAE. The exchange recently re-entered India after securing registration with the Financial Intelligence Unit (FIU) and paying a $1.06 million penalty. Additionally, Bybit has made strides in markets like Georgia, Kazakhstan, and Turkey while facing regulatory challenges in Japan and Malaysia. | In the European Economic Area (EEA), Bybit temporarily adjusted its operations in late 2024 to comply with the Markets in Crypto-Assets (MiCA) regulations. Despite initial setbacks, the exchange has been working toward obtaining a MiCA license in Austria. Meanwhile, France's financial regulator recently removed Bybit from its noncompliance list, signaling potential regulatory acceptance in the region. | FBI confirms North Korea's role in Bybit hack - The FBI has officially linked the Bybit hack to North Korea's Lazarus Group, reinforcing concerns over state-sponsored cybercrime in the crypto industry. According to U.S. authorities, the stolen funds have already been converted into Bitcoin and are being laundered through thousands of blockchain addresses. | Blockchain analytics firms, including SlowMist and Elliptic, have corroborated these findings, stating that the attack was executed through a compromised machine of a Safe{Wallet} developer. Security experts have so far managed to recover approximately $43 million, with an additional $243,000 seized from associated accounts. Bybit has since offered a 10% bounty for any further recovery efforts. | Despite the ongoing investigations and recovery attempts, Bybit's future remains uncertain. While the exchange assures users that all funds remain secure and fully backed, the massive scale of the breach raises serious concerns about its security protocols as it seeks regulatory approval in multiple jurisdictions. | What's next? - As Bybit pushes forward with its global expansion, the exchange faces mounting pressure to rebuild trust and implement stronger security measures. With the UAE's in-principle approval in hand, its ability to secure a full operational license may hinge on its response to the recent hack. Meanwhile, regulatory bodies worldwide are keeping a close watch as investigations into North Korea's involvement continue. | Will Bybit successfully navigate this crisis, or will its security failures overshadow its global ambitions? The coming months will determine the exchange's fate in the increasingly regulated crypto landscape. | Bitwise's Aptos ETF filing triggers 12% APT rally |  | e |
| Key points: | Bitwise has taken the first step toward an Aptos ETF by registering a trust in Delaware, signaling potential institutional interest in the altcoin. APT saw a 12.4% price surge following the news, reflecting increased investor optimism about the prospects of altcoin-focused ETFs.
| News - Bitwise Asset Management has officially registered a trust for an Aptos (APT) exchange-traded fund (ETF) in Delaware, setting the groundwork for a potential U.S.-based ETF dedicated to the altcoin. The filing, submitted to Delaware's Division of Corporations on February 25, is an early step and does not guarantee immediate approval. | To move forward, Bitwise must submit a formal application to the U.S. Securities and Exchange Commission (SEC), outlining details on the ETF's structure, investment strategy, and how it plans to track APT's value. The SEC will then review the proposal, with possible outcomes including approval, rejection, or requests for modifications. | If approved, the Aptos ETF would provide both institutional and retail investors with regulated exposure to APT without requiring direct token ownership. This marks a continuation of Bitwise's strategy to expand beyond Bitcoin (BTC) and Ethereum (ETH) ETFs, following similar filings for Solana (SOL), Dogecoin (DOGE), and XRP (XRP). | Market reaction and institutional interest - The news of Bitwise's ETF registration sent APT soaring by 12.4%, pushing its price to $6.31 with a 14.15% increase in trading volume to $336.42 million. The jump signals growing investor confidence in the token's potential, particularly as institutional interest in altcoin ETFs rises. | Aptos, a Layer 1 blockchain developed by former Meta engineers, is known for its high scalability and security, using the Move programming language originally created for Facebook's Diem project. The blockchain has already seen European exchange-traded products (ETPs) such as the Bitwise Aptos Staking ETP and the 21Shares Aptos Staking ETP, further boosting its global presence. | What's next? - The SEC's review process will determine whether an Aptos ETF can move forward, but regulatory uncertainty remains a hurdle. The agency has yet to approve any U.S.-based altcoin ETFs beyond BTC and ETH, with ongoing deliberations over XRP and Solana ETFs. | Nonetheless, Bitwise's push into altcoin ETFs reflects a shifting landscape in institutional crypto investments, potentially paving the way for broader ETF offerings in the near future. | | More stories from the crypto ecosystem | | Interesting facts | In 2023, platforms like Fountain began rewarding users with Bitcoin for listening to podcasts, integrating cryptocurrency earnings with content consumption. This development highlights the innovative fusion of digital content engagement and cryptocurrency incentives. In January 2024, "Crypto: The Game" debuted as an interactive crypto-based reality competition. Co-founded by Dylan Abruscato, Tyler Cagle, and Bryan Lee, the game gained significant traction for its immersive and strategic nature, drawing comparisons to shows like "Survivor" and "Squid Game." In June 2024, Uniswap Labs acquired the game, aiming to expand interactive gaming and social engagement within the crypto ecosystem. Throughout 2024, global cryptocurrency adoption grew by 13%, with the number of crypto owners rising from 583 million in January to 659 million by December. This surge was driven by increased accessibility, regulatory developments, and growing interest from both retail and institutional investors.
| | Top 3 coins of the day | Aptos (APT) | | Key points: | At press time, APT was trading at $6.24, reflecting a 5.58% increase over the last 24 hours. The price struggled below key moving averages, with resistance near $7.17 (50-day SMA) and $9.40 (100-day SMA), while the RSI hovered below 50, indicating weak momentum.
| What you should know: | APT experienced a modest recovery, climbing by over 5% as trading volume remained steady. The MA Ribbon indicators reflected a prolonged bearish phase, with the price consistently staying below the 50-day, 100-day, and 200-day SMAs. This indicated that bullish strength was not yet sufficient to reverse the broader downtrend. Meanwhile, the RSI (14) improved to 48.60 but stayed below the neutral 50 mark, suggesting that buying pressure was increasing but not strong enough to confirm a bullish trend shift. The price attempted to reclaim higher levels but faced key resistance around the 50-day SMA at $7.17 and a more significant barrier at the 100-day SMA at $9.40. A breakout above $7.17 could open doors for a stronger recovery, while failure to hold above $6 might lead to another dip toward support near $5.50. Traders should monitor RSI movements and volume trends for signs of strengthening momentum. | Litecoin (LTC) | | Key points: | At press time, LTC was trading at $131.06, marking a 3.87% increase in the last 24 hours. The price moved toward the upper Bollinger Band, while the MACD signaled strengthening bullish momentum.
| What you should know: | Litecoin's price saw an upward push, climbing by 3.87% to reach $131.06. The Bollinger Bands showed an expansion, with the price nearing the upper band, suggesting rising volatility and a potential continuation of the bullish trend. Additionally, the MACD histogram displayed increasing positive bars, indicating growing upward momentum. A rise in trading volume further reinforced buying interest. If this momentum persists, LTC could attempt to break through the resistance level at $135.00. However, in case of a pullback, the closest support lies around $125.00. Traders should keep an eye on Bollinger Band positioning and MACD movements to gauge further price action. | Quant (QNT) | | Key points: | At press time, QNT was trading at $101.1, reflecting a slight decline of 0.39% over the last 24 hours. The Parabolic SAR indicated a recent shift in momentum, while the DMI suggested weakening bullish strength.
| What you should know: | QNT exhibited a period of consolidation after experiencing a steep decline from its December highs. The price traded near the $101 level, showing low volatility in recent sessions. The Parabolic SAR dots remained below the price candles earlier, suggesting an attempt at an uptrend. However, a recent shift placed them above the price, indicating possible bearish pressure. The Directional Movement Index (DMI) showed the +DI (green) and -DI (red) lines moving closer, signaling reduced trend strength, with the ADX staying around the 20 level, implying a lack of strong directional movement. Meanwhile, trading volume remained relatively low, aligning with the sideways movement. If QNT maintains support around $100, bulls may attempt a recovery, with resistance at $110 being a key level to monitor. Conversely, a break below $98 could extend the recent correction. The market sentiment remains neutral for now, with traders looking for stronger signals before the next decisive move. | How was today's newsletter? | |
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