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💻 Digital Assets Worth Billions Still Secure Despite Rise in Cyber Attacks — Former Microsoft Security Lead

✅ A former Microsoft Security Lead has insisted that a great proportion of digital assets worth billions of dollars are secure and are being “safely managed by hundreds of protocols.” The security expert suggested that protocols also need to have a platform that allows users to rate or assess the robustness of security systems.

➡️ While decentralized finance and Web3 platforms have seen a steady rise in hacks and phishing attack incidents, according to Christian Seifert, a former Microsoft Security Lead, there are still “billions of dollars worth of digital assets that are safely managed by hundreds of protocols.” So while cybercriminals may have siphoned digital assets worth millions of dollars, the value of stolen assets remains just a fraction of secured assets, the security expert added.

⚡️ Seifert, who is also the Researcher in Residence at Forta Network, nevertheless suggested that protocols managing users’ assets need to have what he called a “comprehensive security strategy.”

🗣 “And what needs to happen is to make it easier for users to assess whether protocols are responsibly securing users’ funds and investing in security. I applaud projects like DeFi Safety that perform this service for the industry. Their information must be accessible to users easily, so they can understand security risks and make their decisions on whether it is acceptable,” Seifert suggested.

❌ Acording to Seifert, these incidents alone should not turn away users. He insisted that there is a “plethora” of products and services that help users secure their assets and avoid becoming victims like Buterin and Cuban. Still, he conceded that it would require some education for users to become better at protecting their assets.
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💻 Decentralized Exchange Mixin Kernel Confirms Hack on Its Platform Involving Approximately $200M

✅ Mixin Kernel confirmed on Sept. 25 that it was the victim of a hacking attack which had resulted in the loss of assets on the mainnet. The decentralized exchange said it has since suspended deposit and withdrawal services and only expects to restore normal services once a probe into the incident is completed.

📣 Mixin Kernel said it has not only suspended deposit and withdrawal services on the Mixin network but sought assistance from Google and the blockchain security firm Slowmist.

⏳ The decentralized exchange’s confirmation of the hack came just minutes after the Slowmist team issued a security alert about the attack.

➡️ Meanwhile, the Mixin Kernel team said its founder Feng Xiaodong would provide an update on Sept. 25 about steps being taken to recover the lost funds via a livestream. The

❕ On social media, some users have questioned why platforms claiming to be decentralized are using services provided by centralized cloud service providers. However, one user characterized the hacking attack as a rug-pull incident initiated by CEO Cedric Fung.
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⚠️ Do Kwon’s Defense Declares SEC’s Deposition Request ‘Impossible’ Amid Ongoing Detention Saga

👉 The legal team defending Do Kwon, the co-founder and former CEO of Terraform Labs, argues that the U.S. Securities and Exchange Commission (SEC) lacks the capacity to depose Kwon, deeming it an “impossible” feat. Kwon’s legal counsel additionally maintains that the SEC’s bid for a preclusion order is premature, given that no summary judgment motion has been tendered by either side, and the cutoff for such motions remains a month away.

In a document tendered to the court on September 22, 2023, it’s unveiled that the SEC is seeking authorization to interrogate the former CEO of Terraform Labs, Do Kwon. “With less than a month left in discovery, however, the SEC has not yet been afforded a critical discovery tool used in nearly every civil case—the deposition of the defendant,” the court document highlighted.

⚫️ Yet, another court submission by Kwon’s legal counsel on September 27, underscores their stance that such a request is “impossible,” urging for the SEC’s petition to be rejected.

💬 “The SEC’s motion seeks leave to take the deposition of Defendant Do Kwon in the United States before October 13, 2023, even though the SEC knows that Mr. Kwon is detained in Montenegro with no scheduled release or extradition date,” Kwon’s attorneys wrote. The former Terraform Labs CEO’s legal team added:

➡️ The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition.

💎 The Terra blockchain ecosystem helmed by Kwon crumbled in May 2022, leading to his arrest in Montenegro in March 2023 over the use of falsified passports. This particular misstep landed Kwon a four-month tenure in the Montenegro prison system.
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✅ Blockfi Bankruptcy Plan Confirmed, Paving Way for Client Distributions

➡️ Cryptoledger Blockfi is moving closer to returning funds to clients after a bankruptcy judge confirmed its Chapter 11 plan on Tuesday. The plan outlines a process for the company to distribute the remaining assets to clients and attempt to recover additional funds.

⚡️ With over 90% of voting creditors approving the plan, Blockfi expressed optimism about providing client recoveries relatively quickly compared to similar crypto bankruptcies.

💸 Under the approved plan, Blockfi will first distribute the remaining digital assets back to clients with funds in Blockfi Wallet accounts.

🟢 Additional distributions to clients will depend on Blockfi’s success in recovering funds from the FTX bankruptcy case. Blockfi claims FTX owes it money and intends to pursue litigation to obtain those assets.
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🤬 Bankman-Fried's Legal Team Cries Foul Over Ukrainian Customer Testimony

➡️ On Oct. 2, 2023, the law firm Cohen & Gresser submitted a letter to the judge presiding over the criminal case against the former FTX boss Sam Bankman-Fried. The government wants to allow a customer witness from Ukraine to testify remotely and detail how he “lost a substantial portion” of his life savings due to FTX’s demise. The lawyers insist allowing the Ukrainian witness to testify remotely would violate Bankman-Fried’s Sixth Amendment right to confront witnesses against him.

The lawyers further added that a customer from a country under a foreign invasion should be excluded.

❕ In another letter, Cohen argues against customer witnesses and investor testimony. The lawyer calls the request premature because the court should not rule on the admissibility of testimony in the abstract without knowing the specific statements at issue. The letter further notes that customer testimony about their subjective understanding of FTX’s custody of assets is irrelevant and investor testimony about materiality is improper.

👉 “The government seemingly wants evidence regarding how customers (and other putative victims) understood the relationship they chose to enter with FTX to be admissible only if offered by the government but excluded if offered by the defense,” Cohen contends.

⏺ The letter urges the denial of the government’s motion as premature and unfounded. It argues the defense should be permitted to cross-examine any witnesses allowed to give these categories of testimony.
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📣 Biggest Movers: BCH, TRX Snap Losing Streak to Start the Weekend

⚡️ Bitcoin cash was one of the big gainers to start the weekend, as the cryptocurrency ended a two-day losing streak. Overall, the momentum in the market was marginally higher, as traders continued to consume the latest U.S. nonfarm payrolls report. TRON also returned to the green on Saturday.

🕯 Bitcoin cash (BCH) was a notable mover on Saturday, as the cryptocurrency returned to the green after a recent losing streak. After falling to a low of $227.13 on Friday, BCH/USD rose by as much as 2%, hitting a high of $234.82 to start the weekend.

🌟 The rise in price comes as bulls continued to push the token away from a recent support point, which was at the $225.00 mark. From the chart, it appears that bulls opted to buy the recent dip, after the relative strength index (RSI) collided with a support point at 56.00

➡️ At the time of writing, price strength now resides at 58.60, with a ceiling at 60.00 the next point of resistance. Bulls will need to surpass this point in order to push bitcoin cash over the $240.00 level, which appears to be the next target for traders.

✅ Tron (TRX) ended a three-day winless run to start the weekend, moving away from a one-week low in the process. TRX/USD jumped to a peak of $0.08818 earlier in the day, which comes less than 24 hours after trading at a low of $0.08558.

🔼 Similar to BCH, today’s rally came after a brief breakout of a key support level, in this instance at $0.08550. Price strength also edged higher on Saturday, climbing back above a floor at the 58.00 zone, and is now tracking at 58.45.

➡️ The next visible area of resistance now looks to be at 61.00, with a more long-term target of 68.00 also in sight.Should these points be captured in the upcoming days, TRON could be trading above $0.09000.
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🇨🇦 Bank of Canada Study: CBDC Can Help Overcome Inclusion Issues

⚡️A recent study published by the Bank of Canada, examined the challenges a central bank digital currency (CBDC) would tackle in Canada. The study remarks that while financial inclusion is high in Canada, with 98% of adult Canadians having access to a bank account and debit cards, underbanked Canadians can still face barriers and challenges, having to resort to alternate providers that charge higher fees for their services, including payday lenders and cheque cashers.

👉 The study, which examined different kinds of inclusion, found that many of the challenges that impact the accessibility to payment methods were not “normally considered within the purview of central bankers” and require public investment on a series of policy initiatives.

⏺ The study compared today’s digital payment ecosystem with the old one, where banknotes were sufficient to achieve this accessibility. The study detailed:

🗣 Although bank notes may have been effective at addressing barriers in the past, to be universally accessible, a CBDC must address the barriers inherent in today’s—and tomorrow’s—evolving technical landscape.

👍 While the study found that the number of individuals who face challenges that could exclude them from the traditional financial system is larger than previously assumed, it explains that these findings “serve to inform the design of future digital payment products and services and CBDCs.”
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👑JPMorgan's Tokenized Collateral Network Facilitates Blackrock-Barclays Trade

⏺ JPMorgan Chase has introduced a blockchain-based collateral settlement system.
⏺ Blackrock became the first client to use JPMorgan's tokenized collateral Network (TCN).
⏺ Blackrock has converted money market fund shares into digital tokens to provide derivatives with Barclays Plc.
⏺ TCN is an application on the Onyx digital asset platform used to move tokenized assets. JPMorgan plans to use TCN for a wider range of assets as collateral.
⏺Tokenization of money market fund shares can reduce operational friction when meeting margin requirements.
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💰 Ferrari Will Accept Cryptocurrency As Payment For Its Cars In The US

🆕 Reuters reports Ferrari’s marketing and commercial chief, Enrico Galliera, told the news publication the luxury sports car maker now accepts payment in crypto for cars sold in the US.

🇺🇸 According to Reuters, the payment scheme is currently only available to customers in the United States, but the option will soon be available to Europe after receiving requests from its wealthy clients.

➡️ Galliera explained cryptocurrencies have made efforts to reduce their high carbon footprint by introducing innovative software and implementing renewable energy sources. Many large companies avoid crypto, citing environmental concerns such as Tesla. The electric carmaker began accepting payment in Bitcoin, but the initiative was halted by its CEO, Elon Musk, due to environmental concerns.

⚫️ Commenting on Ferrari’s environmental goals, Galliera said in an interview:

❕“Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed.”

⚫️ Further adding that the company received overwhelming requests from customers to explore the option of crypto payments:

❕“Some are young investors who have built their fortunes around cryptocurrencies. Some others are more traditional investors, who want to diversify their portfolios.”

📣 Galliera said the company was still unsure of how many cars the company will sell through crypto but said Ferrari’s order portfolio was fully booked well into 2025. He added the company chose to take this step to tap into a market it previously had not had access to.

❕“This will help us connect to people who are not necessarily our clients but might afford a Ferrari.”
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👀Fed Governor Questions Need for US Central Bank Digital Currency

🗣 In a discourse at Harvard Law School, Fed Governor Michelle Bowman articulated that the case for a U.S. central bank digital currency, or CBDC, remains unconvincing, failing to distinctly showcase how it could address the identified issues more adeptly or efficiently than existing alternatives.

👍 Proponents argue that CBDCs could address frictions in the payment system, promote financial inclusion, and provide the public with access to central bank money quickly.

🆘 She cited the Fednow instant payment system as an example of existing infrastructure improvements. Bowman also warned that CBDCs pose “significant risks and tradeoffs” like disrupting the traditional banking system.

📈 The Fed governor called for more research on CBDCs and said the central bank should continue monitoring international developments. But she reiterated the high bar for adopting a digital currency in the U.S. given the risks.
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⛔️ Blockchain Publishing Company LBRY Announces Shutdown Following Court Judgment and Debt

❕ The latest blog post paints a somber picture of LBRY Inc.’s current situation. Burdened with debts to the SEC, their legal team, and a private debtor, the company has found itself in an untenable position. Their assets, including their flagship platform Odysee, are now set to enter receivership. As a final stroke, all executives, employees, and board members have tendered their resignations.

⚫️ Though LBRY Inc. faces its sunset, the LBRY network stands on a different footing. Being decentralized and powered by open-source code, its fate is largely in the hands of its users.

The blog post adds:

💬 The truth is that even writing this post fills us with anxiety. Everything we say is being scrutinized by people with immense resources that aren’t big fans of us, free speech, or any technology that enables dissent. And if we violate another one of the United States’ incredibly clear and easy-to-follow laws, we might end up in jail.

⚡️ Despite the challenges, LBRY stated that Odysee continues to thrive, serving over 6 million users monthly. As LBRY’s most valuable asset, its future ownership remains uncertain.
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🇳🇬 Nigerian Bank Reportedly Freezes Accounts Belonging to 500 USDT Traders

❌ The bank asserts that the affected traders’ accounts had received part of the funds which were stolen by hackers. As one social media user on X (formerly Twitter) explained, Access Bank is thought to have lost over $10.4 million or 8 billion naira between May and June this year. The user also suggested that the hackers had used part of the funds to buy tether from Binance USDT traders.

📣 Commenting on the reported freezing of accounts, Rume Ophi, the executive secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), described the alleged freezing of crypto traders’ bank accounts as “a disgrace tohttps://static.news.bitcoin.com/wp-content/uploads/2023/10/shutterstock_1879491793-768x432.jpg Nigeria’s banking infrastructure.” Ophi, who is also known as the Cryptopreacher, insisted that the move by Access Bank and others is intended to further undermine the Nigerian crypto industry.

⏳ In August 2021, the Central Bank of Nigeria (CBN) has in the past forced banks to block accounts of individuals accused of using the banking system to facilitate crypto-related transactions.

👉 Yet, despite the crackdown that saw several accounts belonging to crypto entities being closed in 2021, many digital asset traders seemingly continue to rely on the traditional banking system. This, in turn, has raised questions about banks’ role in enforcing the CBN’s February 2021 directive.
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🇬🇧 New Law Expands Police Powers to Seize Crypto in UK

⚡️ The Economic Crime and Corporate Transparency Act introduces powers that will allow British authorities to “proactively target organized criminals and others seeking to abuse the U.K.’s open economy”.

🗣️ “The National Crime Agency (NCA) will additionally gain greater powers which compel businesses to hand over information which is suspected to be used for money laundering or terrorist financing. Unnecessary reporting by businesses will also be reduced, enabling the private sector and law enforcement to focus their existing resources on tackling high value and priority activity.”

➡️ Graeme Biggar, Director General of the National Crime Agency, commented: “This act is long-awaited and welcome. For too long criminals and corrupt elites have abused U.K.”

📣 The NCA’s National Assessment Centre estimates that over £1 billion of illicit cash was transferred overseas using cryptoassets in 2021. The act has introduced provisions for police and the NCA to seize cryptoassets more easily and convert them into money before a forfeiture hearing has taken place. In exceptional circumstances, there will also be a power to destroy seized cryptocurrency.
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🔥 Bitcoin Difficulty Soars to Record 62.46 Trillion, Miners Unfazed Amidst Tight Competition Between Foundry and Antpool

📈 After a 6.47% increase on October 16, Bitcoin’s difficulty has risen again. On October 29, 2023, at block height 814,464, the network saw a 2.35% boost in difficulty, moving from 61.03 trillion to a new high of 62.46 trillion.

👉 This development has made mining bitcoin block rewards more challenging than at any previous point in history. Despite this increased complexity, bitcoin miners remain unfazed, sustaining a total hashrate of just above 450 exahash per second (EH/s).

⏳ Currently, block times remain below the ten-minute average, with data indicating speeds ranging from nine minutes and 17 seconds to slightly above the nine-minute mark per block. A total of 42 mining pools are contributing a minimum of 3 gigahash per second (GH/s) to the Bitcoin blockchain.

❕Furthermore, nearly 17 pools boast upwards of 1 EH/s of hashpower dedicated to mining bitcoin. On October 30, 2023, around 26 mining pools are operating with approximately 1 petahash per second (PH/s) of hashpower.
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