As the latest cryptocurrency news showed last week, the Bitfinex hack has been one of the most prominent crypto cyber crimes in recent years. It took a dramatic turn on June 23, when two Israeli brothers were jailed in connection with the 2016 Bitfinex hack as well as other phishing attacks.
To remind you again, there were around 120,000 Bitcoin (BTC) stolen in the attack back in 2016 – an amount that is initially worth $72 million. However, after Bitcoin’s meteoric rise in the summer of 2019, the value of the stolen funds now amounts to around $1.4 billion.
An Israeli spokesperson recently spoke to Finance Magnates and said that Eli and Assaf Gigi managed to steal tens of millions of dollars from their activities. There was a police raid along with the Bitfinex hack and the arrests also located a crypto wallet containing a much smaller sum than the Israeli brothers allegedly stole.
The spokesperson was also featured in the altcoin news for stating that the duo lured in their victims by creating clone versions of major online crypto exchanges and wallet providers. They also shared links to them through both Telegram groups and other crypto-related communities. The Israeli brothers now stand accused because of the Bitfinex hack, which also involved identity theft and compromising of several users’ accounts.
This is the second time the Bitfinex hack is in the headlines of many best cryptocurrency news sites. On June 7, we reported that $1.5 million of the funds stolen in the hack were moved from the hackers’ personal wallets to an unknown address. The Whale Alert Twitter profile also confirmed this.
One of the most shocking things regarding the arrest was the announcement that one of the brother (the older one) had received specialist training from an elite technological unit of the Israel Defense Forces (IDF). Cybersecurity experts believe that the Bitfinex hack was carried out with a more rudimentary level of education and some self-taught skills.
“You don’t need ‘military training’ to conduct cybercrime on today’s centralized exchanges. Most recently we have seen hackers gain access to databases holding users’ access tokens and steal their funds. Even as AT&T is being sued for $240 million dollars by Michael Terpin, we continue to see a very large number of sim jackings via social engineering methods. From sim-swapping, phishing, key-logger attacks, crypto jacking, there’s an array of low hanging fruit for hackers currently to go after,” the co-founder of a cybersecurity agency said.
Another researcher and cybersecurity expert named Igor Kotsiuba also shared his views on the Bitfinex hack and said:
“The most prevalent attacks in the crypto world today are DDoS and phishing. Capabilities for man-in-the-middle or DDoS can be obtained in school, after classes with friends, so elite military school is more than enough for that.”
As the coming altcoin news show, hacks are common in the crypto world, but their activities are definitely something difficult to deal with.
Bitcoin Reaches The Second Inning As Bakkt Launch Nears
“Bakkt’s launch is expected late in the current quarter.” “Bakkt could be a huge catalyst for institutional participation in the crypto market.”Bakkt hosted a summit this week at the NYSE and the company behind it-ICE stated that the things are looking quite bullish for the bitcoin cryptocurrency in the latter part of the year. According to the Fundstrat note, there is a robust turnout at the conference of more than 100 investors. The Commodity Futures Trading Commission which is the most important agency in the launch of Bakkt’s bitcoin futures contracts also had representation. Fundstrat’s reports show that the CFTC is seeing massive growth in demand and interest for Bitcoin futures from the Public. The bitcoin futures contracts by the CME and CBOE are still considered as the mark of the beginning of the crypto bull market. This is why bitcoin reaches the second inning since soon it will be clear whether the history will repeat itself again. As the latest cryptocurrency news report, Ari Paul, the CIO of BlockTowerCapital participates in the Bakkt event and he is helping with the new addition of users into space. The report also shows that Paul believes that retail adoption will be massive once the app and UI make crypto on-ramps safe and easy to use as PayPal.
Australian Couple Loses $900,000 In A Crypto Scam
“That was the whole of our superannuation – that’s now gone.”They didn’t explain how the scheme actually worked but Taylor commented that it was during a crypto trading scam website that promised high returns. He added that they decided to invest because the site ‘’looked legitimate.’’ The couple decided during a trip around the country to invest in the scam. They stated that the money basically disappeared and left the couple and many other Australians in the bankruptcy. Taylor told 7News that he had to go back to work and sell his old 1965 Pontiac in order to make the ends meet. This is not an isolated case according to the reports. On the contrary to what people think, crypto scams have increased massively since 2017 according to the reports issued by the Australian Competition and Consumer Commission since 2018 that the losses generated by the crypto scams reached about $6.11 million which shows a massive 190 percent increase over 2017. With the new addition of the $990,000 already gone, 2019 sets a new trend for crypto scams and the Australian Securities and Investments Commission is aware of this happening. There is a 32 percent increase in fraud since 2018 with more than 2,400 reported cases. The Australian watchdog announced the new corporate action plan for 2018 that the crypto sectors and ICOs are the number one priority. If the new policies become a success the country will be able to reduce the crypto scam phenomenon. One strategy that showed to be successful among the scammers is to usurp the identity of celebrities to deceive users. The most popular case was the one of High Jackman which guaranteed returns of more than 10,000 percent. The cryptocurrencies have characteristics that could complicate the protection of users in times of fraud mainly because the transactions are irreversible which makes it impossible for any entity to return funds to a scam victim. Also, the network is decentralized and removes the control from the bank but also there is a high level of anonymity which makes it difficult to know who owns a particular wallet as noted in the altcoin news reports.
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